Godrej Consumer buys out Rapidol unit in S Africa

MUMBAI: Godrej Consumer Products said on Tuesday it had bought the South African hair colour business of UK’s Rapidol, as well as its subsidiary Rapidol International, as it steps up its international presence. The all-cash acquisition is subject to regulatory approvals.

The two units together had revenue of about 52 million South African rand last year (Rs 330 m), the company said.“The acquisition will widen our portfolio of hair colourant and hair care offerings and give us access to the large and growing African market,” Godrej group chairman Adi Godrej was quoted as saying.

“We also propose to introduce some of our own products there,” he said. Shares in Godrej Consumer, which also makes toilet soaps, male grooming products and household products, ended up nearly 1% at Rs 644 ahead of the news in a weak Mumbai market.

Rapidol in South Africa owns hair colour brands Inecto and Soflene. Inecto, which is manufactured in a factory near Durban, had a 70% share of the ethnic hair colour market in South Africa, according to Godrej.

Godrej Consumer already owns the Inecto brand in the UK and 21 other countries through UK toiletries manufacturer Keyline Brands, which Godrej Consumer acquired last October.

“We will continue to pursue value-enhancing inorganic and organic growth opportunities both in India and overseas,” Mr Godrej said.