Godrej Consumer to Buy US Hair Care Products Co SON
Move part of co’s strategy to scale up presence in Asia, Africa & LatAm
Mumbai: Godrej Consumer Products (GCPL) has entered into an agreement to acquire Strength of Nature (SON), a hair care products firm, as part of its wider strategy to boost its international business. SON, a US-based company 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. With an annual revenues of $95 million, the company has hair care products such as relaxers, maintenance, styling and shampoos in its portfolio.
“Over the past few years, we have been scaling up our international presence with acquisitions that fit well in our 3-by-3 strategy — a presence in emerging markets in Asia, Africa and Latin America through three core categories — hair care, home care and personal care,” said Adi Godrej, chairman, Godrej Group. “These strategic acquisitions have strongly aided our growth story. Through them, we have both extended our core busines- ses and implicitly broadened our presence to a wider canvas.” Last month, ET had reported that Godrej Group, India’s oldest conglomerate, has created a war chest of .₹ 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 to double their business in Africa in the next four years.
“This catapults us to become one of the largest players globally, serving the hair care needs of women of African descent. It will, over time, also provide a platform for us to further build and drive global leadership,” said Vivek Gambhir, managing director at GCPL. The maker of GoodKnight mosquito repellent and Cinthol soap gets nearly half its sales from international business, mainly from Indonesia and Africa. In fact, in the the past decade, GCPL had acquired nearly half a dozen companies and brands in Africa including hair colour brand — Rapidol (2006) and hair extensions brand — Kinky (2008) in South Africa. In 2010 the consumer firm purchased personal care Nigerian product called Tura and another hair extension brand Darling in 2011.