Go­drej Con­sumer to Buy US Hair Care Prod­ucts Co SON

Move part of co’s strat­egy to scale up pres­ence in Asia, Africa & LatAm

The Economic Times - - Companies - Our Bureau

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.

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