Godrej Consumer Products complete acquisition of 100 per cent stake in Cosmetica

Godrej Consumers Products (GCPL) completed its acquisition of the balance 40 per cent stake in Cosmetica Nacional. Earlier the company acquired 60 per cent stake in Cosmetica Nacional in January, 2012 as a part of a string of acquisitions in emerging markets. This deal will provide an opportunity for the company to grow the hair colour business into other markets as well.

Cosmetica Nacional is a market leading Hair Colorant and Cosmetics Company in Chile. The company deals 60 per cent into hair colouring category, 25 per cent into colour cosmetics and rest in hair removing category.

Earlier this year, GCPL agreed to acquire hair extension business from the South Africa based Frika Hair, a market leader in the organised retail with a strong presence in the Western Cape, Eastern Cape and Gauteng regions of South Africa. The company signed an agreement with the African hair care company Darling Group Holdings to hike its stake in its two entities in South Africa and Mozambique to 90 per cent. Last fiscal year in March, GCPL had acquired 4.63 per cent each in the South Africa and Mozambique entities. The company is going through an intensive inorganic growth strategy towards its expansion plans.

On the financial front, GCPL has about Rs 650 crore cosmetics business in Latin America. Meanwhile, its Africa business has annualised a total revenue of about USD 200 million. The share price of GCPL on BSE increased by 3.29 per cent in earlier trades and is trading at Rs 1236 on intraday basis.

Cosmetica Nacional owns several brands including make-up line Pamela Grant, hair colorants Pamela Grant ultra repair and Ilicit, hair color, care and styling brand U2, depilatory range Millefiori and men’s hair care range Dermo Capil. The company’s products are sold throughout South America via a network of distributors.

GPCL is engaged in the manufacture of household and personal care products. The Company's geographic segments include Within India and Outside India. Its range of personal care products comprises hand washes, a hand sanitizer and a personal mosquito repellent spray. GPCL also manufactures hair color, household insecticides, liquid detergents and soaps. The Company's brands include Good knight, Cinthol, Godrej Expert, Godrej No. 1, HIT, mitu, aer, Ezee, INECTO, STELLA, ROBY, Villeneuve and TURA.