Godrej Consumer Products to acquire Raymond's FMCG business for Rs 2,825 crore

Godrej Consumer Products (GCPL) is going to acquire the FMCG business from the diversified group Raymond - which includes Park Avenue and KamaSutra brands.

In a stock exchange filing, GCPL said the cost of the acquisition is Rs 2,825 crore and is expected to be completed by May 10, 2023.

The deal will strengthen the portfolio of the Godrej Group FMCG arm GCPL and mark its foray into sexual wellness categories.

Both the brands -- Park Avenue and KamaSutra -- are under Raymond Consumer Care, a Singhania family-owned Raymond unit.

Coincidentally, this comes over a year later after Sunil Kataria, the former chief executive officer of GCPL’s India and SAARC business, left the company in February 2022 and joined Raymond as the CEO of its lifestyle business a month later

Sudhir Sitapati, Managing Director and CEO, GCPL, said, “We are excited to welcome the Raymond Consumer Care team and brands to Godrej Consumer Products. This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories offering a long growth runway. Raymond is a leading player in the deodorants and sexual wellness categories with brands like Park Avenue and KamaSutra. These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets. Per-capita consumption (USD) of deodorants in India is 0.4x that in Indonesia, 0.05x that in Brazil and 0.04x that in the USA. We look forward to building on this potential by unlocking the significant integration synergies with our business.” 

Atul Singh, Group Vice Chairman, Raymond Group, added, “We have divested our FMCG business with trademarks of Park Avenue, Kamasutra for FMCG categories to Godrej Consumer Products. We take pride in building strong homegrown brands that are amongst the leaders in their categories. Having brought these brands at the forefront of consumer recall, we believe that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands.”

According to the news agency report, Raymond was trying to sell this consumer care business for some years.

Earlier, it was in discussions with Good Glamm Group, a D2C beauty and personal care brand. However, it had not materialised, the industry sources told PTI.

Raymond has two fundamental businesses -- lifestyle and real estate. Its revenue from FY22 was Rs 4,260.66 crore.

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