Mumbai, Oct 15 (Calcutta Tube) FMCG major Godrej Consumer Products Ltd. (GCPL) Thursday said it is merging Godrej Household Products Ltd. (GHPL) with itself, making it one of the largest players in the personal care and household insecticides segment.
No shares will be issued post-merger as GHPL is a wholly-owned unit of the company, the company said in a regulatory filing.
GHPL, which was earlier known as Godrej Sara Lee, had recently acquired 51 percent stake of the company from its foreign partner Sara Lee.
‘GCPL is now the largest home-grown household and personal care company in India and the second largest household insecticides company in Asia (excluding Japan). The merger provides us with a scale platform to accelerate our growth and profit trajectory,’ said GCPL chairman Adi Godrej.
The company said its board had also approved merging its South African unit, Kinky Group, with another firm based in the same country, Rapidol Ltd. Kinky and Rapidol manufacture haircare products.
‘We continue to remain focussed on our global 3 by 3 strategy – presence in 3 continents – Asia, Africa and Latin Amercia through 3 core categories – home care, personal wash and hair care,’ Godrej added.
GCPL sells leading brands including Good knight (mosquito repellant), Cinthol and Godrej No 1 (soap), Ezee (detergent) and Snuggy (diapers).
The GCPL scrip soared 12.8 percent to an intra-day high of Rs.440, before settling at Rs.411.50 in post noon.