CORPORATE

Godrej to buy Raymond Consumer’s FMCG business for Rs 2,825 crore

Godrej Consumer Products on Thursday said that it had signed an agreement to acquire the FMCG business of Raymond Consumer Care for Rs 2,825 crore. 

Raymond Consumer Care primarily operates in deodorant and sexual wellness categories with two key brands – Park Avenue and Kamasutra. 

Raymond is selling its FMCG business to Godrej Consumer along with trademarks of Park Avenue (for the FMCG category), KS, KamaSutra and Premium through a slump sale, according to Godrej’s exchange filing. 

“This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth,” Godrej Consumer’s Managing Director and CEO Sudhir Sitapati said. 

Per capita consumption (in US dollars) of deodorants in India was 0.4 times that in Indonesia, 0.05 times that in Brazil and 0.04 times that in the USA, he said. 

“Having brought these brands at the forefront of consumer recall, we believe that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands,” Raymond Group’s Vice-Chairman Atul Singh said. 

Raymond Chairman Gautam Singhania said that the sale would turn it debt-free and reduce the number of business lines. 

Raymond Consumer reported sales of Rs 622 crore in the financial year ended March 31, 2023, compared to Rs 522 crore in FY22. 

Godrej Consumer has brands such as Cinthol, Protekt, Hit, Ezee and GoodKnight.

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