Continuing its overseas acquisition spree, FMCG firm Godrej Consumer Products Ltd (GCPL) has acquired an Indonesian firm called PT Megasari Makmur Group for an undisclosed sum.
Megasari is an active player in household insecticides and aircare business in Asia with a strong market share in India, Sri Lanka, Nepal, Bangladesh and Indonesia, said a GCPL statement. Indonesia is regarded as the third largest consumer market in Asia, after China and India. HSBC has acted as the advisor to Godrej in this transaction.
The development came within 20 days after the Godrej acquired an African beauty firm called Tura in Nigeria. Godrej believes Indonesia is going to be an attractive market for the company with 240 million population and an expected GDP growth of over 5.5% in 2010. The company plans to leverage on Megasari’s market presence to push further their own brands in the market and establish a strong foothold in home care and personal care products category in Indonesia.
“The acquisition will provide significant synergies and create value for shareholders. As an emerging market multinational, this acquisition is an important step in our global 3 by 3 strategy presence in 3 continents such as Asia, Africa and Latin America through 3 core categories - home care, personal wash and hair care,” Adi Godrej, chairman, GCPL, said, in the statement.
Megasari claims a market capture of $345 million, and as the fourth largest player in household insecticides business in the emerging markets, after China, India and Brazil.
Godrej has been actively looking at acquisitions in overseas territories for quite sometime now. Earlier, it had acquired two other brands called Rapidol and Kinky in South Africa, apart from recent Tura buy.