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Godrej Consumer gains after acquisition

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Capital Market Mumbai

The announcement was made after market hours on Monday, 31 December 2012.

Meanwhile, the BSE Sensex was up 144.08 points, or 0.74%, to 19,570.79.

On BSE, 1,621 shares were traded in the counter as against an average daily volume of 27,782 shares in the past one quarter.

The stock hit a high of Rs 734.75 and a low of Rs 725 so far during the day. The stock had hit a 52-week high of Rs 767.80 on 24 December 2012. The stock had hit a 52-week low of Rs 370 on 3 January 2012.

The stock had underperformed the market over the past one month till 31 December 2012, falling 1.84% compared with the Sensex's 0.45% rise. The scrip had, however, outperformed the market in past one quarter, rising 8.11% as against Sensex's 3.54% rise.

 

The large-cap company has an equity capital of Rs 34.03 crore. Face value per share is Re 1.

While the total consideration of the acquisition was not disclosed, Godrej Consumer Products (GCPL) said invoiced sales for the brand in calendar year 2011 were 21 million pounds.

Soft & Gentle is the UK's 4th largest female deodorant brand (by market share) and retains strong brand equity with retailers and consumers in the UK. "The acquisition of Soft & Gentle by Keyline Brands will add profitable scale to our UK business,'' said Adi Godrej, chairman, GCPL.

The acquisition is being funded by low cost debt and the impact on GCPL's consolidated Debt/Equity ratio is 0.03.

Godrej Consumer Products' consolidated net profit rose 25% to Rs 159 crore on 35% growth in net sales to Rs 1595 crore in Q2 September 2012 over Q2 September 2011.

Godrej Consumer Products is a major player in the Indian FMCG market, with leading household and personal care products. It is one of the largest marketers of toilet soaps in the country and are also leaders in hair colours and household insecticides. The firm has a strong emerging presence in markets outside India.

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First Published: Jan 01 2013 | 11:32 PM IST

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