Adi-Godrej
Godrej Consumers is in process to buy majority stake in Kenya-based company Canon Chemicals. This will be an all cash deal where Godrej will enjoy a 75 percent stake in the profit-making branch. Canon deals in personal and household care products and has been reporting strong earnings over the last three years, says Adi Godrej, Chairman, Godrej Group.
Speaking to CNBC-TV18, he says Canon Chemicals has strong market share in Kenya’s market, particularly in the petroleum jelly segment, and Godrej already has 4,000 employees in the region’s hair extensions business—Darling. “In fact in Kenya, our per capita sales are already higher than in India,” Godrej adds.
Further, the deal will be completed in next 90-120 days and is earnings-per-share (EPS) accretive, he says, adding, “it will also enable us to leverage many other growth opportunities in Kenya”.
In addition, the company will increase stake in other joint ventures in Africa, which have been growing steadily, Godrej says.
