Godrej Consumer acquires FMCG company in UK

Our Corporate Bureau
02 November 2005

Mumbai: Godrej Consumer Products Ltd (GCPL) has announced the acquisition of 100 per cent ownership interest in Keyline Brands Ltd, UK.

GCPL (sales turnover Rs562 crore, as on March 31, 2005) is a leading personal and hygiene care company, and is a part of the Rs55-billion Godrej Group It was demerged as a separate entity from the 77-year old Godrej Soaps in 2001

Keyline ranks among one of UK''s most admired FMCG companies engaged in the manufacture, marketing, sales and distribution of cosmetics and toiletries with a strong portfolio of brands, including the P20 brand of sun tan protection lotion, and a well developed customer base in numerous supermarket chains and discount stores. Its turnover in 2004 was £16.7 million (around Rs132 crore) and a profit before tax of £2.2 million (around Rs16 crore).

The acquisition gives GCPL ownership of several international brands and trademarks including ''Cuticura'', ''Erasmic'' and ''Nulon'' in many countries and a strong customer base that includes Boots, Sainsbury and Tesco, amongst others. Moreover, GCPL will be able to expand its geographical presence and access trade channels in developed markets like Europe, Jordan, Australia and Canada

Commenting on the acquisition, Adi Godrej, chairman and managing director, GCPL, said, "This acquisition represents the commencement of our building a global presence in the international FMCG market. Keyline Brands is a consistent profit making company with a portfolio of many great brands that have tremendous potential to grow in Europe, West Asia and the Asian region."

Godrej added that the acquisition would add substantially to GCPL''s consolidated topline as well as bottomline. It will enable GCPL to enhance its various skills in marketing and management of modern trade channels that will be extremely relevant in a rapidly changing Indian retail environment.