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Godrej Consumer Products on Tuesday said it had entered into an agreement with South Africa-based Frika Hair to acquire 100 per cent of its hair-extension business. It did not disclose the value of the deal.
According to the company’s stock exchange filing, Frika Hair has a strong presence in the Western Cape, Eastern Cape and Gauteng regions of South Africa and is the market leader in key accounts in organised retail.
In 2014, Frika’s net sales stood at about ZAR 73 million (about Rs 39.5 crore). Its offerings include products like braids, synthetic weaves, human hair weaves, wigs and hair pieces. The acquisition will help Godrej Consumer consolidate its presence in South Africa’s hair-extension market.
“With its quality premium hair extensions, the Frika range provides a strong complementary addition to our Darling portfolio. This acquisition reflects our continued commitment to scaling up our presence in Africa and providing African consumers with a wide range of superior-quality products at affordable prices,” said Godrej Consumer Managing Director Vivek Gambhir.
The Africa business has an annualised revenue of $200 million, Godrej Consumer said in its filing with BSE.
At present, Godrej Consumer has manufacturing facilities in four African countries — South Africa, Mozambique, Kenya and Nigeria.
In 2011, it had acquired a 51 per cent stake in African hair care company, Darling Group Holdings. It also bought South Africa’s Kinky Group in 2008, and hair colour brand Rapidol in September 2006. The company had acquired Nigeria’s personal care brand Tura from the Tura Group in 2010. Of the four acquisitions, three were in the hair care segment.
