The African buy is expected to be in the hair care segment, while in India, it will be a household products maker.
Thirteen months after he completed his fourth acquisition in the African market, Adi Godrej, Chairman of the diversified Godrej group, is again on a shopping spree.
This time, however, he is scouting for opportunities both in the African and Indian markets.
While the African buy is expected to be in the hair-care segment, in India, it would be a household products maker. “We have begun our third and final phase of expansion in Africa, covering most key markets in the continent, where we are investing heavily,” Adi Godrej said.
The company has acquired four companies in the African market so far. In September last, the company bought hair-extension maker Darling Group Holdings.
The earlier buyouts were brands such as Tura, Rapidol and Kinky, that operate in the hair-care businesses of colours, extensions, attachments and relaxers.
The market for these products is pegged at $1 billion.
African hair is unique in texture with a tendency to break before reaching any considerable length, a problem exacerbated by frequent chemical treatment. It is among the highest non-food discretionary spending categories for African woman.
“We are growing at 25-30 per cent in the African market and it contributes about five per cent to our overall turnover at Rs 25,000 crore. The third phase will add around $70 million to the current revenues,” Godrej said.
‘Three by three’ strategy
Godrej said the group will continue to grow on back of its ‘three by three’ strategy, which means the focus would be on the three geographies of Asia, Africa and Latin America, in three categories — household products, insecticides, and the hair-care business.
Godrej, who is also President of the Confederation of Indian Industry (CII), was in Africa last month with an 11-member delegation to understand the Ugandan and South African markets.