Mumbai: Godrej Consumer Products Ltd (GCPL) on Tuesday announced that it has entered into an agreement with South Africa-based Frika Hair (Pty) Ltd for the acquisition of its hair extensions business.
Frika Hair has a strong presence in the Western Cape, Eastern Cape and Gauteng regions of South Africa and is the market leader in key accounts in organized retail, GCPL said in a BSE filing. The company’s offerings include braids, synthetic weaves, human-hair weaves, wigs and hair-pieces.
In 2014, net sales of the company were approximately South African rand 73 million (approximately Rs.39.5 crore).
The acquisition will help GCPL expand its presence in the hair extensions market in South Africa, the firm said.
“With its quality range of premium hair extensions, the Frika range of hair extensions provides a strong complementary addition to our Darling masstige portfolio. This acquisition reflects our continued commitment to scaling up our presence in Africa and providing African consumers with a wide range of superior quality products at affordable prices,” said Vivek Gambhir, managing director, GCPL.
The Africa business has annualized revenue of $200 million, GCPL said in the filing.
On Tuesday, GCPL’s shares closed at Rs.957.55, down 1.26% on the BSE, while the benchmark Sensex ended the day at 26,987.46 points, down 3.07%.
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