With a view to boost international business, Godrej Consumer Products Limited (GCPL) as part of its wider strategy has signed an agreement to acquire Strength of Nature LLC (SON), a hair care products firm.
US-based SON has significant presence in Africa and the Caribbean, and is one of the fastest growing companies in the hair care category for women of African descent.
Having annual revenue of $95 million, the company has hair care products such as relaxers, maintenance, styling and shampoos in its portfolio.
Adi Godrej, Chairman, Godrej Group said that over the past few years, the company has been scaling up their international presence with acquisitions that fit well in their 3 by 3 strategy - a presence in emerging markets in Asia, Africa and Latin America through 3 core categories - hair care, home care and personal care.
He further added that such strategic acquisitions have strongly aided company’s growth. Through these acquisitions, the company has extended its core businesses and implicitly broadened presence to a wider canvas.
According to a known media house, Godrej Group, India's oldest conglomerate, has created a war chest of Rs 3,000 crore to buy home and personal care companies in Africa, Indonesia and the home turf.
Africa has more than half of the world's fastest growing economies, a fast growing middle class population and increasing urbanisation. Just Africa accounts for 35% of Godrej Consumer's international revenues and it now aims to double their business in Africa in the next four years.