Godrej Consumer Products Ltd (GCPL), a leading player in FMCG space in India, is acquiring an African beauty company called Tura for an undisclosed sum. Tura offers personal care products and claims a market and distribution reach of around 70% in the region, according to a Godrej statement.
GCPL, which has earlier acquired two other brands, Rapidol and Kinky, in South Africa, plans to form a cross functional team with members from Rapidol, Kinky, Tura and its Indian management to bring synergy in the business, the statement added.
Tura is owned by the UK-based Lornamead Group, which last year sold personal care brand Yardley for $45.5 million to the soap-to-software conglomerate Wipro. Earlier reports also stated that Wipro was one of the contendors to buy Tura.
A Business Standard report said that Godrej could be paying between Rs 400-500 crore for Tura which generates revenues of $50 million. The share price of GCPL jumped by more than 4% to Rs 282.4 in days trade after closing at Rs 274, up by 1.14%.
Tura offers products such as soaps, moisturizing lotions and skin toning creams. GCPL says the acquisition gives it a strong foothold across Nigeria and other west African countries. The company plans to leverage on Tura’s marketing reach to expand its own personal and home care products in the region.
Adi Godrej, chairman, GCPL said, in the statement, “Tura helps us leapfrog in our endeavour to build a pan-African presence for our personal care products. We expect the transaction to provide a tremendous platform for value creation in west Africa.”
Godrej has been actively looking at acquisitions and joint ventures in domestic as well as overseas territories. It has recently received board approval for acquiring the remaining 51% stake in Godrej Sara Lee, a joint venture between the Godrej Group and the US-based Sara Lee Corporation.