Mumbai2 days ago
FMCG major Godrej Consumer Products Limited (GCPL) has acquired Raymond Consumer Care Limited (RCCL), the FMCG arm of Raymond. GCPL has acquired RCCL for Rs 2,825 crore. The information about this deal has been given by GCPL’s Managing Director and CEO Sudhir Sitapati on Thursday (April 27).
GCPL has told in the stock exchange filing that by May 10, 2023, the amount of the deal will be given to Raymond Consumer Care Limited. Raymond Consumer Care – operates in categories such as personal care, sexual wellness and home care with brands such as Park Avenue, Kamasutra and KS Spark. Whereas GCPL is currently present in Hair Care, Home Care and Personal Care categories.
Raymond shares rose over 6% on deal news
Raymond shares closed at Rs 1,711 on Thursday, up 6.15%, or Rs 99.15, after the news of the deal broke. At the same time, the share of GCPL closed at Rs 954.80, down 2.19% i.e. Rs 21.35.
Raymonds holds 47.66% stake in consumer care business in FY22
Raymonds has a 47.66% stake in the consumer care business by FY2022. However, since a few years, Raymond has been looking to sell its FMCG arm. Prior to Godrej, Raymonds was in talks with Good Glam for a deal of around Rs 2,500 crore in 2022, but the two companies did not materialize due to valuation issues.
GCPL enters the fragrance and sexual wellness category after the deal
With the deal with Raymonds, GCPL has entered the fragrance and sexual wellness category. In addition, GCPL’s personal care sector will also get a boost as Raymonds dominates the men’s grooming space.
The consumer care business had a sale of Rs 522 crore in FY22.
Raymond’s consumer care business had a sale of Rs 522 crore in the financial year 2022. Apart from this, the company has a strong market position in the men’s deodorant category with brands like Park Avenue and KS Spark.
According to Raymond’s Annual Report, KS Spark Deo Fragrance has been the leading variant in Urban India in FY2022. Whereas Kamasutra is the third largest player in branded condoms in India. Which has a manufacturing capacity of 400 million units every year. Its plant is in Aurangabad.
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