As per the reports, the fast consumer goods major announced its UK subsidiary Keyline has acquired Soft & Gentle, UK’s fourth largest female deodorant brand by market share, from Colgate-Palmolive, due to which, the Godrej consumer products shares raised over 1 percent in morning trade on Tuesday.
According to GCPL Chairman Adi Godrej, Keyline Brands acquisition of Soft & Gentle added a profitable scale to Godrej business in UK. He also added that in the last few years, Keyline brands has delivered good performance and grown in double digits in a very tough market environment that is witnessing little or no growth. GCPL shares were up about 0.7 percent at Rs 726.90 on NSE at 10:00AM on Tuesday.
The report says that, Godrej expects this acquisition to be popularized in year one and is optimistic that the there would be an increased market growth to its UK business.
According to the report, in the past few years, Godrej Consumer has made several acquisitions around the world, which include Megasari in Indonesia, The Darling Group in Africa, Kinky and Rapidol in South Africa, Tura in Nigeria and Argencos and Issue in Latin America. In Asia, Africa and Latin America, the Godrej consumer is focusing on 3×3 strategies which are home care, hair care and personal wash. And because of the strategy, Godrej is confident that the company will further pick up performance pace in the future.
Keyline Business Company which is a UK subsidiary of Godrej will selectively bolt on brands that are strategic, financially accretive and provide significant synergies.
As per the reports, Anand Rangaswamy, MD of Keyline Brands said that, Soft & Gentle brand was launched for the UK market in 1976. Keyline acquired Soft & Gentle as they believed in the strong latent brand equity combined with updating the fragrance technology, with further range extensions within the female personal care category which provides a strong growth for the brand.