Mumbai-based FMCG firm Godrej Consumer Products Ltd (GCPL) is acquiring hair extension business from the South Africa-based Frika Hair (Pty) Ltd, as per a stock market disclosure. Financial terms of the transaction were not disclosed.
Frika Hair is the market leader in the organised retail with a strong presence in the Western Cape, Eastern Cape and Gauteng regions of South Africa. Its offerings include braids, synthetic weaves, human hair weaves, wigs and hair-pieces.
In 2014, net sales of the company were approximately South African ZAR 73 million (approximately Rs 39.5 crore).
“This acquisition reflects our continued commitment to scaling up our presence in Africa and providing African consumers with a wide range of superior quality products at affordable prices,” said Vivek Gambhir, managing director, GCPL.
“With its quality range of premium hair extensions, Frika provides a strong complementary addition to our Darling masstige portfolio.
GCPL has been consistently acquiring firms in the hair care business, a segment where it has products spread across the hair colour, hair dye, mehendi and hair oil.
Majority of its acquisitions in the business have been overseas, including a bunch of them located in Africa and a few in Latin America.
GCPL's Africa business has annualised revenue of $200 million.
In October, GCPL entered into an agreement with African hair care company Darling Group Holdings to acquire its entire stake in hair extension business in Ghana, West Africa.
GCPL had struck an agreement to buy 51 per cent stake in Darling Group Holdings, which operates in 14 countries across sub-Saharan Africa. This was to be completed in three stages geographically with the first phase executed by September 2011.
The Indian firm held the right to acquire 100 per cent in the operations across countries by 2016.
In February this year, GCPL had completed the acquisition of Darling Group's hair extension business in Nigeria by acquiring the balance 49 per cent.
In March it also entered into an agreement to hike its stake in Darling Group Holdings' entities in South Africa and Mozambique by 4.63 per cent to 55.6 per cent each.
In October it acquired the remaining stake in hair extension business in Ghana, West Africa.
Darling Group sells hair extension products under the brands Darling and Amigos.
Besides hair care products, GCPL is into household and other personal care products. Its brands include Good Knight, Cinthol, Godrej No. 1, Hit, Fairglow, Ezee and Protekt.
In January 2012, Singapore’s state investment firm Temasek had invested Rs 685 crore ($135 million) to buy 4.9 per cent stake in GCPL through a preferential allotment.
(Edited by Joby Puthuparampil Johnson)