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| Godrej eyes Sara Lee's household products biz |
| Press Trust of India / New Delhi Dec 17, 2009, 16:39 IST |
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Godrej Consumer Products (GCPL) today said it is interested in buying the international household products business of US-based Sara Lee to expand globally.
"We are certainly interested in buying out the international household business of Sara Lee as they are looking to sell off all their non-food business," Godrej Consumer Products Managing Director Dalip Sehgal told PTI.
Sara Lee's household products business include insecticides like Good Knight and Hit, besides other brands such as Kiwi in shoe care segment and Biotex in detergents.
It has decided to focus on food and beverages segment and agreed to sell its Ambi Pur air care business to Procter & Gamble for $468 million. In September, Sara Lee sold its body care division to Unilever PLC for $1.88 billion.
He said GCPL has already established itself as a key player in the household business in India and the company is now looking to expand globally.
"Now our intention is to make the household business a global one," Sehgal said.
GCPL has a joint venture — Godrej Sara Lee — with Sara Lee in India. It is in the process of buying out the 51 per cent stake of the US partner, and yesterday its board had approved raising of Rs 3,000 crore.
Commenting on speculation that P&G may look at buying the licence right of selling Ambi Pur in India, Sehgal said, "We have the licence rights to sell Ambi Pur for the next three years...It is too early to talk about it right now."
Godrej Sara Lee currently sells three brands from the Sara Lee portfolio — Brylcream, Ambi pur and Kiwi shoe polish in India.
Asked if the Rs 3,000 crore that GCPL intended to raise will be utilised to acquire Sara Lee's household insecticide business, Sehgal replied in the negative.
He said, part of the fund could be used for buying out Sara Lee's 51 per cent stake in Godrej Sara Lee Ltd, adding bulk of the money could go for other acquisitions.
Yesterday the company had stated that of the total sum to be raise, around Rs 800 crore could be utilised for buying out Sara Lee's stake in the JV — Godrej Sara Lee.
"The fact that we have made a public notification of raising the amount tells that the talks of acquiring some of the companies in the developing markets are in advance stages," Sehgal said.
The company is in talks with firms in Asia, Africa and in Latin America in hair colour, personal care and household spaces, he added.
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