Godrej on an acquisition spree

The diversified Godrej Group has three acquisitions in its kitty. During the first five months of 2010 it acquired — Tura in Nigeria, Megasari in Indonesia and 51 per cent stake in Godrej Sara Lee — worth around Rs2,500-crore. Group Chairman Adi Godrej is now eyeing a company in the Latin America and Sara Lee’s global household insecticide business.

“This is part of our three-by-three strategy for global expansion in three areas — household insecticides, soaps and hair colours, in three continents of Asia, Africa and Latin America,” said Godrej.
The Rs8,800-crore in sales group is now preparing to pay for these acquisitions by raising Rs3,000-crore during May and June, primarily through debt.

Through this, Godrej plans to double its topline (sales) in next three years. “We hope to grow 15-20 per cent organically and another 10 per cent through acquisitions “Together, we expect a compounded annual growth rate of 25-30 per cent over the next five years, “ said Godrej.