Godrej Consumer To Acquire Raymond’s Consumer Business For ₹2,825 Cr

Raymond shares have jumped 9% before the announcement of merger with Godrej Consumer. Godrej Consumer may acquire it for $345 million.

Godrej Consumer Products Ltd, an Indian consumer goods company, has announced its acquisition of Raymond Consumer Care Ltd consumer goods business for $345 million. 

As part of the deal, Raymond will sell its popular brands, such as Park Avenue deodorant and Kamasutra condoms, to Godrej, which will help it become debt-free and reduce its number of business lines. 

However, Raymond will retain its condom factory to do contract manufacturing for domestic and international markets. 

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The deal is expected to turn Raymond Lifestyle into a listed company within the next 12-14 months.

The acquisition comes amid increasing competition in India’s nearly $900 billion retail market, where Godrej competes with industry giants such as Reliance Industries, Unilever, and Procter & Gamble. 

Godrej’s existing portfolio includes popular brands such as Cinthol soaps and Good Knight mosquito repellent.

Godrej’s managing director and CEO, Sudhir Sitapati, stated that the acquisition would complement the company’s business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth. 

The move will strengthen Godrej’s presence in the Indian retail market, which has been rapidly growing in recent years, with an increasing number of players entering the market.

Raymond’s core business will now focus on real estate, along with its investments in engineering and denim. 

Gautam Singhania, Raymond’s chairman, stated that the demerger of its business was a response to investor demands, and the company is now net-debt free.

Shares of Godrej Consumer closed 2.3% lower ahead of the announcement, while Raymond rose 6.4%. 

The acquisition is expected to help Godrej expand its brand portfolio and market share in India, further strengthening its position in the country’s fast-growing retail market.

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