Godrej Consumer Products Ltd has set an ambitious target of growing 10 times over the next 10 years from its current turnover of over Rs 4,850 crore through acquisitions as well as normal expansion in both domestic and international markets.
"We want to be 10 times as in size in 10 years time, which is a compound annual growth rate of about 26 per cent," Godrej Consumer Products Ltd (GCPL) Chairman Adi Godrej said in a analyst call.
Elaborating the strategy, he said: "We hope to achieve about 15 per cent to 20 per cent organic growth and the balance through inorganic growth."
GCPL's net sales for the fiscal 2011-12 stood at Rs 4,850.94 crore, while its net profit for the fiscal stood at Rs 726.72 crore.
The homegrown FMCG major has been rapidly expanding globally and in the past few years it has been acquiring companies and brands in international markets like Indonesia, South America and Africa.
The latest was in January this year when GCPL acquired 60 per cent stake in Chilean hair colour firm Cosmetica Nacional for an undisclosed amount.
GCPL had mainly focused on hair care and household insecticide space for its acquisitions. In 2010, GCPL had bought out Latin America's Issue Group, a market leader in hair-colour in Argentina, Peru, Uruguay and Paraguay. In less than two weeks time, the firm acquired another Argentinian hair care company Argencos.
The company has also identified Africa as a key market for growth and is aiming to be the largest Indian FMCG firm on the continent.
"..Our wish is to be the largest Indian FMCG company in Africa too. You have other Indian FMCG companies which are in Africa, but Godrej Consumed products will be the largest there," GCPL Managing Director A Mahendran said.
For the fiscal ended March 31, 2012, Africa contributed 23 per cent to the GCPL's international business. The company has presence in various African countries including South Africa and Nigeria.
Last year GCPL had expanded operations in Africa with the acquisition of a 51 per cent stake in African hair care company Darling Group Holdings, which operates in 14 countries across Africa, selling hair extension products under brand names like 'Darling' and 'Amigos'.
In FY 2011-12, GCPL's sales from its main international markets of Asia (excluding India), Latin America, Africa and Europe stood at Rs 513 crore.
GCPL's portfolio includes brands such as Good Knight, Cinthol, Godrej No.1, Expert, Hit, Jet, Fairglow, Ezee, Snuggy and Protekt.