Godrej to expand manufacturing base in Africa

JOHANNESBURG: Indian FMGC major Godrej Consumer Products is expanding its manufacturing footprints in Africa and is gearing up to set up factories in Tanzania and Uganda. The company, which has made four acquisitions in Africa, is in talks to take over some local firms in the continent.


“We are now planning to expand our manufacturing in some other countries. First expansion will be into Tanzania and Uganda,” GCPL chairman Adi Godrej told ET here.

At present, the company has manufacturing facilities in four countries in Africa — South Africa, Mozambique, Kenya and Nigeria. During the first quarter ended June 30, GCPL's revenues from African operations stood at Rs 214 crore. The company is betting big on the African market to drive its international sales. Sales from African operations account for 25% of total international sales.

When asked if GCPL was looking at other opportunities in Africa, Godrej said: “We are looking at it. Our growth in Africa is through acquisition of local companies. Some discussions are going on.”

GCPL had completed acquisition of 51% stake in African hair care company Darling Group Holdings in September 2011. It also acquired South Africa's Kinky Group in 2008 and hair colour brand Rapidol in September 2006. Kinky offers a variety of products, including hair, hair-braids, hair pieces, wigs and weft pieces.

GCPL also acquired Nigeria's personal care brand Tura from the Tura Group for an undisclosed sum in 2010. Tura's product range includes soaps, moisturising lotions & skin-toning creams.

Out of the four acquisitions by GCPL in Africa, three were in hair care segments. “Our businesses are mainly in hair care. Our companies are leaders in hair colour in 14 countries in Africa," Godrej said.

(The reporter is in Johannesburg on the invitation of FICCI).