Godrej Consumer Products (GCPL),-GCPL acquires Darling Group`s hair extensions biz

Godrej Consumer Products (GCPL), one of the leading FMCG players, announced Tuesday it has entered into an agreement for exclusive rights to include the hair extensions business in Kenya and exports to other East Africa geographies in its partnership with the Darling Group.

September 23, 2012:

Indian fast-moving consumer goods companies are having a whale of a time, with consumers turning relatively impervious to price hikes in products.

Godrej Consumer Products is not only wooing the Indian consumer, but has also set its sights on consumers in other developing economies.

Global businesses accounted for 38 per cent of Godrej’s total revenues in 2011-12, up from the 32 per cent the year before.

In terms of net profits, overseas businesses account for about 20 per cent.

The company’s annual report details the multiple benefits of its latest — and largest — African acquisition, its expanding presence in the Latin American market and what its global business brings to the table.

Marking global presence

GCPL already operates in Indonesia, Argentina, Africa and Europe through acquisitions of leading companies in those regions.

It sharpened its focus on the global market in 2011-12 and consolidated its global presence.

First, it acquired a majority stake in the Darling group, a market leader in hair extension products.

Then it ventured into Chilean territory through stake acquisitions in Cosmetica Nacional, a hair colour and cosmetics company.

GCPL has stuck to its strategy of acquiring companies in verticals where it already operates in the domestic market — hair-care, household care and personal care.

Integrating acquisitions

Darling’s production facilities blend well with GCPL’s earlier acquisition of Kinky, another hair-care group based in South Africa.

GCPL will integrate the two production facilities to bring down costs for Kinky.

Meanwhile, Darling’s hair extension products will use Kinky’s customer and outlet base to grow sales.

Similarly, the Cosmetica Nacional acquisition exports to seven countries in Latin America, besides having a presence in Panama and Costa Rica.

This adds to GCPL’s market in other southern regions such as Argentina, Uruguay, Bolivia, and so on.

GCPL has also introduced the domestic Renew range of hair colours in the African market, helping it widen its presence in ethnic hair colour markets.

In its annual report, GCPL also highlighted some of the more original innovations it has initiated in overseas markets.

In Indonesia, for example, the company introduced a paper format mosquito repellent besides a dual-fragrance air freshener.

Keywords: Cosmetica Nacional acquisition, majority stake in the Darling group, Darling’s hair extension products, Kinky, dual-fragrance air freshener from Godrej, mosquito repellent, Godrej revenues