Godrej buys Indonesian insecticides firm Megasari

"The Megasari Group provides us a strong platform to establish a significant foothold in Indonesia, which is among the largest consumer markets in Asia," Godrej Consumer Products (GCPL) chairman Adi Godrej said in a statement. Godrej said the acquisition will help to strengthen its presence in Asia, Africa and Latin America through three core categories--home care, personal wash and hair care. Besides, it will also provide a platform for launching home care and personal care products from the Godrej stable in Indonesia, the company chairman added.

"Over the last few years, we have been following a very disciplined and focused approach to identifying acquisitions that represent a strong fit with our business, both strategically and operationally," Godrej said. Last month, GCPL had announced acquisition of Nigeria's personal care brand Tura as part of its strategy to enter Nigeria and other West African markets.

The Megasari acquisition is the fourth one by the company in the past two years, after Rapidol and Kinky in South Africa, and Tura in Nigeria. The Megasari Group along with its distributor Intrasari Raya is one of the market leaders in Indonesia, particularly in the household insecticides category. It manufactures and distributes household products, including household insecticides, wet tissues and air fresheners.

GCPL had last year got board approval to raise Rs 3,000 crore to fund its expansion plans. It has been scouting for acquisitions in the last few years and said it could spend up to Rs 1,000 crore for the purpose. Besides, the company is also eyeing to acquire the global household business of its erstwhile partner Sara Lee. The firm is buying out Sara Lee's 51 per cent stake their joint venture Gordej-Sara Lee for about Rs 800 crore.