Investment Ideas - Godrej Consumer Products Ltd (GCPL)

Godrej Consumer Products Ltd (GCPL) was established in the year 1897.   Today it is a major player in the Indian FMCG market. It has some household popular names like GoodKnight, Cinthol, Godrej No. 1, Expert, Nupur, aer, Hit, Fairglow, Ezee and Protekt. It is the market leader in personal care products and toilet soaps.

The company has done some meaningful acquisitions in Asia, Middle East, Latin America and Europe. These acquisitions have made the company very strong in product lineup and market shares worldwide.
it acquired Megasari Makmur Group in May 2010. Megasari Makmur Group was involved in manufacturing and distribution of household products, insecticides, air fresheners and wet tissues.

October 1, 2007.Godrej Global Mideast FZE was established in Sharjah. This company handles, the distribution of Godrej FMCG products in Oman, Saudi Arabia, Kuwait and Bahrain, establishing a strong presence in the Middle East.

 In South Africa,  Kinky was acquired by GCPL in April 2008. Established in 1971, Kinky was in the business of hair care products like hair sprays, gels and shampoo.

Rapidol was acquired by GCPL in September 2006. This company has brands like Inecto and Soflene and operates in ten countries.

Tura  was  one of Nigeria's leading beauty companies that manufactures and distributes a range of products including soaps, moisturizing lotions & skin-toning creams, when it was taken over by GCPL fold in June 2010.

Darling Group Holdings in which GCPL acquired 51% stake in June 2011, Darling Group
was operating companies in 14 countries in Africa, like other companies that GCPL acquired Darling Group was also involved in manufacturing and distribution of  hair care Darling Group also had its own brands  'Darling' and 'Amigos' which were popular among consumers.

In May 2010 GCPL acquired Argentina-based Issue Group. In June 2010, GCPL acquired another hair care firm Argencos an Argentinean hair and hair care company.

In January 2012 GCPL acquired 60% stake in a Chilean company Cosmetica Nacional,  a company founded in 1979.this company too was involved in hair color and cosmetic sector

In the United Kingdom GCPL acquired Keyline brands, which is also a company that handles toiletries and personal health care products. Some of the famous brands name like Cuticura, Aapri, Erasmic and Nulon became GCPL owned brands.

According to the company its 26% of the business comes from overseas market. The company maintains an overseas presence in more than sixty countries. In dollar terms it does business worth of 3.3 billion dollars. With good acquisitions and mergers the company is doing what is good for its investors..


The press release from the company, it has been stated that their net sales was up by 30%. Consolidated EBITDA stood at 279 Cr. Up by 12%. The forth interim dividend is 200% that Rs. 2 per share.

I would like to indicate the closing price of this company’s shares on 30th of April for the last three years. In 2010- Rs. 290.05, In 2011 – Rs. 376.20 In 2012 – Rs.539.00, This year of 2013 it has closed at 825.70

For investors with a long time frame this company’s shares will be a good choice among FMCG lot.

Disclaimer : I do hold any shares in the company and do not have any interest.