Godrej Consumer Products Ltd (GCPL) has acquired the remainder stake of 40 per cent in Chilean hair colour and cosmetic company Cosmetica Nacional for an undisclosed amount. The FMCG company had picked up a 60 per cent stake in Cosmetica Nacional in January 2012, gaining entry into new categories like colour cosmetics and hair removal cream.
Speaking to BusinessLine , Godrej Consumer Products Managing Director Vivek Gambhir said: “Buying out the balance stake is in line with our strategy to enter new geographies, first with a JV and then take full control of the asset after we have learnt about that market. This particular acquisition is less than what we paid for some of the bigger assets that we have acquired, like Africa’s Darling Group or Indonesia’s Megasari Group.”
Founded in 1979, Cosmetica Nacional has brands like Ellicit (hair colour) and Pamela Grant (colour cosmetics). “Since we are not present in colour cosmetics and hair removing creams, we are looking at the possibility of extending these products to other markets including India,” Gambhir added.
Among some of its big-ticket acquisitions, GCPL paid ₹1,200 crore to buy out the Indonesian household product major Megasari in 2010. “There has also been 100 per cent acquisitions in the past but when JVs are forged, it is after three years we give the partners an option to exit and buy out their stake,” he said.
The FMCG company has been steadily increasing its stake in African hair care company Darling Group Holdings to 90 per cent. Other African acquisitions include South Africa’s Kinky Group in 2008 and hair colour brand Rapidol in 2006.
Early this year, GCPL had announced that it entered into an agreement with Frika Hair (Pty) Ltd for the acquisition of 100 per cent equity stake in its hair extensions business in South Africa for an undisclosed amount.