Godrej Consumer Products to acquire South Africa's Rapidol

Mumbai: Godrej Consumer Products Ltd has signed an agreement to acquire the South African hair color business of Rapidol, UK, as well as its subsidiary Rapidol International. The two posted a combined turnover of 52 million South African rand (approximately Rs 33 crore) in 2005.

The acquisition, proposed through a 100 per cent cash deal, is subject to regulatory approvals.

The acquisition will open a large ethnic hair color market to the company via a profit making company, Godrej Consumer Products said. This will add to the company's top line and bottom line, which in turn will enhance stakeholder value, it added.

Rapidol South Africa owns Inecto, an internationally known brand, which enjoys a reputation of being a safe and affordable hair colourant with consumers across South Africa and the African continent. With the acquisition of the Inecto and Sofelene trademarks, Godrej Consumer Products would also gain larger territorial rights over the brand equities. It will also provide a launch pad for the Godrej products in African countries.

Inecto is sold across Angola, Zambia, Mozambique, Tanzania, the Democratic Republic of Congo, Swaziland, Ghana, Gabon, Botswana, Namibia, Lesotho, Zimbabwe, Mauritius, Seychelles and Madagascar mainly through the cash and carry route.

Additionally Godrej Consumer proposes to introduce some of its own products like FairGlow and Evita hair colourants in the African market.