Godrej Consumer Products Ltd has increased its stake in DGH Phase Two Mauritius, which owns Kenya’s Style Industries Ltd, to 90 per cent from 51 per cent for an undisclosed amount in cash.
DGH, an investment holding company, was set up in 2012 and recorded net sales of $2.7 million (Rs 18 crore) in 2014-15, Godrej Consumer said in a stock-exchange filing. It didn’t give any other details.
Nairobi-based Style Industries sells hair accessories and cosmetics under the brand Darling. It also exports braids, weaves, extensions and wigs to 21 countries in Africa.
The development comes a month after Godrej acquired a 75 per cent stake in Kenyan home- and personal-care products maker Canon Chemicals Ltd for an undisclosed amount.
Vivek Gambhir, managing director at Godrej Consumer, had earlier told VCCircle that the company was looking at large-sized transactions in Africa, where it has annualised revenue of about $200 million.
The Mumbai-based company has previously made several other acquisitions overseas. Last year, it bought the 40 per cent stake it didn’t already own in Chilean hair colour cosmetics company Cosmetica Nacional for an undisclosed amount.
It also agreed to acquire the hair extension business of the South Africa-based Frika Hair (Pty) Ltd for an undisclosed amount last year. In February last year, it signed a pact with the African hair care company Darling Group Holdings to hike its stake in its two units in South Africa and Mozambique to 90 per cent.
Besides hair-care products, Godrej Consumer makes household and other personal-care products under brands such as Good Knight, Cinthol, Godrej No. 1, Hit, Fairglow, Ezee and Protekt.
One of Godrej Consumer’s investors is Temasek. In 2012, the Singapore government’s investment unit had invested Rs 685 crore ($135 million then) to buy a 4.9 per cent stake in the Indian company in what was the single-largest alternative investment deal in the local consumer goods industry. Temasek sold part of its stake in the firm last quarter.