New Delhi: Godrej Consumer Products is
looking to acquire control of its FMCG joint venture with US-
based Sara Lee Corp that manufactures insect repellents, among
other things.
Godrej Sara Lee is the joint venture between Sara Lee and
Godrej. The US firm holds 51 percent stake in the JV, while
Mumbai-based Godrej group has the remaining 49 percent.
"There is a possibility of us buying out 51 percent
share of Sara Lee under the right circumstances and
conditions," Godrej Group of Industries chairman Adi Godrej
said in an interview with a news channel.
He said the company has already announced that it is
buying the stake of Godrej industries in the 40-year old
Godrej Sara Lee and the deal is consolidated.
Shares of the two companies will be swapped effective from
June 1 and the total issued capital of Godrej Consumer
Products' will increase by about 22 percent, he said.
Asked if the company is looking at growing through the
inorganic route, Godrej said, "We would like to grow
considerably through the inorganic route. We have cash in our
books with the possibility of further leveraging our balance
sheet."
"I think over a period of time the international salience
will also increase because a lot of our inorganic
opportunities are outside India and we are going through
acquisitions outside India," he added.
Bureau Report
First Published: Saturday, July 25, 2009, 17:24