Godrej Consumer To Acquire Consumer Care Business Of Raymond For Rs 2,825 Crore

Raymond is a leading player in the deodorants and sexual wellness categories with brands such as Park Avenue and KamaSutra

The FMCG business is being sold to Godrej Consumer along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra, and Premium, through a slump sale.  ( Image Source :Raymond Consumer Care )

Godrej Consumer Products Limited on Thursday announced it will acquire Raymond's consumer care business in an all-cash deal for Rs 2,825 crore. The company in an exchange filing said that Raymond Consumer Care Limited (RCCL) is a leading player in the deodorants and sexual wellness categories in India. The FMCG business is being sold to Godrej Consumer along with the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra, and Premium, through a slump sale. 

The announcement comes after multiple media reports had earlier come out expecting the deal. The stock exchange had sought clarification from Godrej Consumer Products Ltd on April 27, 2023, with reference to such a report. 

Commenting on the announcement, Sudhir Sitapati, Managing Director and CEO of 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 that offer a long runway of growth."

"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,” he added. 

Atul Singh, Group Vice Chairman, Raymond Group, said, “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.” 

Raymond Consumer Care, an affiliate of Raymond Ltd, a renowned textile and real estate enterprise, which has more than 47 per cent stake in the consumer care industry that encompasses Park Avenue and KamaSutra brands, reported MoneyControl. As per the FY22 annual report, the company has a strong presence in more than 650,000 retail outlets with an extensive reach in the chemist channel, modern trade, and e-commerce. Additionally, Raymond Consumer Care has a condom manufacturing facility in Aurangabad, Maharashtra, with an annual production capacity of 40 crores, the report added. 

It noted that although Godrej Consumer already has personal care products, if the proposed acquisition goes through, it will pave the way for the company's entry into the sexual wellness industry as well.