Godrej Consumer circling Embelleze

Seems like the Indian fast moving consumer goods (FMCG) major Godrej Consumer Products (GCPL) is set to make another kill in the international market. The target this time is likely to be Brazil’s Embelleze, say industry sources.

Embelleze, a leader in the hair colouring and transforming categories enjoys a considerable market share in Brazil.

GCPL refrained from making a statement on the matter, saying the company does not comment on market speculations.

Calls and text messages sent to Hoshidar K Press, executive director, GCPL, did not elicit a response at the time of going to print.

Once concluded, Embelleze will be GCPL’s fifth acquisition in the international market in the last two years. The FMCG major had earlier acquired Rapidol and Kinky in South Africa, personalcare brand Tura in Nigeria and Indonesian insecticides brand The Megasari.

According to a client report by Bank of America Merrill Lynch in February, GCPL has outlined its preference for acquisitions.
The report noted that buying an Indian company present in similar products as GCPL would be the first choice.

GCPL had also reiterated its intention to acquire the remaining 51% stake in Godrej Sara Lee (GSL) for about Rs 800 crore. However, the timing of this is dependent on the divestment schedule of Sara Lee, Bansal had said in his report.

Anuj Bansal, research analyst with DSP Merrill Lynch (India), had said in a recent report that, post the acquisition in Africa, GCPL would be looking at acquisitions in other developing countries.
Embelleze has been operating in the Brazilian market for almost 4 decades now. It has 1,500 direct employees and a production capacity of 10 million units per month. Its haircare brands include AmaciHair Chocolate, Novex Chocolate Kit, Novex Booster, Novex Chocolate / White Chocolate, Novex 15 in 1, Novex Shock Therapy, Novex Olive Oil, Novex Hair Body Builder, Novex Brazilian Keratin, Natucor, Natucor - Hair Color Chart.