Logos of Godrej and Savannah Surfactants.
Credit: godrejenterprises.com, savannahgoa.com
Bengaluru: Godrej Industries’ chemicals arm announced the completion of acquisition of the food additives business of Savannah Surfactants Limited on Monday. This acquisition is aimed at the company’s expansion in the food and beverages category, globally.
“We are glad to have completed this transaction at the start of the fiscal year. This acquisition is in line with our vision and strategy to grow in a profitable and sustainable manner. The Savannah business will be part of our specialty chemicals sector,” said Vishal Sharma, Executive Director and Chief Executive Officer, Godrej Industries (Chemicals).
Savannah Surfactants Ltd has a manufacturing capacity of 5,200 tonnes per annum. Meanwhile, Godrej Industries has two manufacturing locations, in Maharashtra and Goa. Godrej Industries had announced the acquisition first in November 2024 for Rs 76 crore.
Consumer goods companies (example: Bikaji Foods, Hindustan Unilever Limited) have been on an acquisition spree of direct to consumer (D2C) brands focusing to cater to a niche segment.
Godrej Industries had reported a 76.9 per cent year-on-year (YoY) jump in net profit at Rs 188.2 crore in the third quarter of fiscal year 2025 (Q3FY25) as compared to Rs 106.4 crore a year earlier. Its revenue from operations soared 34.4 per cent to Rs 4,824.8 crore as against Rs 3,590 crore in the same quarter last year.
The conglomerate’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw an increase of 113.75 per cent annually to Rs 596.8 crore. Meanwhile, the EBITDA margin rose 12.4 per cent in the reporting quarter as compared to 7.8 per cent in Q3FY24.