Godrej in talks with Raymond for consumer care business deal

The potential deal will give Godrej Consumer a bigger play in the men’s personal care and sexual wellness categories. The Singhania family-owned Raymond group has been looking to divest its consumer care business for over two years now, since the group believes this is a non-core business in its portfolio, according to one of the person’s mentioned above. “This will give Godrej a bigger play in the men’s grooming category, especially in the premium end of the market,” said one of the people.

While GCPL had acquired hair care brand Bblunt, this would be its first large deal with an Indian brand, if it materialises. Emails sent to spokespersons of GCPL and Raymond remained unanswered till press time Wednesday.

Mid last year, direct-to-consumer company Good Glamm Group called off talks to acquire Raymond’s consumer care business since it was unwilling to pay the price asked by the latter, according to people directly aware of the development. At that time, the deal had been valued at Rs 2,500-2,800 crore.

ET Bureau

Raymond group has a presence in the FMCG industry through its associate company, Raymond Consumer Care Limited (RCCL), under which the personal care, sexual wellness and home care were integrated in FY20. The integration brought about business synergies, operational efficiencies and channel distribution strengths with premium brands like Park Avenue, KamaSutra, KS and Premium.

With sales of ₹522 crore in FY22, Raymond is one of the top five players in the men’s deodorants category, third largest in branded condom segment, but is a fringe player in mainstream soaps and shampoo market.

The development comes at a time when Godrej Consumer Products, which has a portfolio of personal and home care products including Cinthol men’s grooming, Ezee liquid detergent and household insecticide brands Hit and GoodKnight, is witnessing steady recovery in consumer demand in the year.The company said in a pre-earnings exchange filing it was expecting to deliver healthy gains in volume offtake and value sales, after six to eight quarters when volume offtake had declined on account of price hikes.