Godrej arm buys South African Frika's hair extension business
07 January 2015
Godrej Consumer Products (GCPL) has announced the acquisition of the hair extensions business of Frika Hair in South Africa for an undisclosed amount.
Frika Hair enjoys a premium position in the South African market, and is particularly strong in the Western Cape, Eastern Cape and Gauteng, and is the market leader in key accounts in organised retail, GCPL said in a statement.
In 2014, net sales of the company were approximately South African Rand or ZAR 73 million (approximately Rs40 crore). The acquisition assists GCPL in consolidating its presence in the hair extensions market in South Africa.
With a product range that includes braids, synthetic weaves, human hair weaves and wigs and hair-pieces, Frika Hair is said to have built up a significant market presence and wholesale distribution capability in South Africa. The product range will complement GCPL's masstige portfolio under the Darling brand.
Vivek Gambhir, managing director of GCPL, said the acquisition is EPS (earnings per share) accretive from year one. This means the acquisition will increase the company's EPS from the first year itself.
"This acquisition reflects our continued commitment to scaling up our presence in Africa and providing African consumers with a wide range of superior quality products at affordable prices. We remain very excited by the tremendous potential of the African market and look forward to further building our business," said Gambhir.
The acquisition is in line with GCPL's global `3x3' strategy, targeting strong regional assets in the emerging world. GCPL's Africa business currently has annualised revenues of $200 million.