Godrej Consumer Products Ltd (GCPL), a major player in the deodorants and sexual wellness categories in India, announced that it had reached an agreement to purchase the FMCG division of Raymond Consumer Care Limited (RCCL). Through a slump sale, the RCCL FMCG business as well as the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra, and Premium are being sold to GCPL. GCPL stated in a stock exchange filing that the acquisition will cost Rs 2,825 crore and be finished by May 10, 2023.
Sudhir Sitapati, Managing Director and CEO of GCPL, commented on the news in the following way: “We are excited to welcome the Raymond Consumer Care team and brands to Godrej Consumer Products. With this acquisition, we are able to add underserved markets with a long growth potential runway to our business portfolio and growth strategy. Park Avenue and KamaSutra are just a couple of the deodorant and sexual wellness brands owned by Raymond.Given India’s low per capita consumption compared to other emerging markets, these categories could experience double-digit multi-decade growth. We are eager to realise this potential by utilising the significant synergies of integration with our company.
Atul Singh, group vice chairman of the Raymond Group, continued, “We have sold our FMCG business to Godrej Consumer Products with the trademarks Park Avenue and Kamasutra for FMCG categories. We take pride in creating powerful, in-house brands that rank among the top in their respective categories. We think that Godrej Consumer Products will give these brands the necessary impetus to further drive their growth after putting them at the forefront of consumer recall.