Godrej may wind up its acquisition panel

After going on a global acquisition spree to strengthen its position in overseas markets, Godrej Consumer Products (GCPL) is now on a consolidation drive. The company has indicated that it’s more or less done with global acquisitions and that it is unlikely to make any major acquisition in the next two years. This raises the question as to whether the group would wind up its FMCG Portfolio Cell (FPC), which was created especially to pursue inorganic growth strategies. One of the objectives was to double the group’s FMCG business. In the last two years, the group has doubled its FMCG turnover to over Rs.4,000 crore. This has been achieved by adopting a serious approach of pursuing growth through inorganic and organic means. ‘‘We have now set ourselves the objective of doubling the FMCG turnover to around Rs.8,000 crore in three years,” said A Mahendran, Managing Director, GCPL. So far this year, GCPL has made four overseas acquisitions, which include Tura in Nigeria, Megasari in Indonesia and Issue group and Argencos in Argentina. The homegrown FMCG major is keen on becoming an emerging markets FMCG multinational in haircare and household insecticides.