Goodknight business has implied value of around Rs 30,000 crore, says GCPL chairperson

economictimes.indiatimes.com:

Godrej Consumer Products Ltd (GCPL) is around Rs 30,000 crore, which was bought by the group's FMCG arm in just Rs 100 crore in 1994, the company said in its latest annual report. Godrej Group had bought the Goodknight brand in just Rs 100 crore in 1994. A year later in 1995, it sold a 51 per cent stake in Goodknight to Sara Lee and started a joint venture with the US-based consumer goods company.

Later in 2010, GCPL acquired Sara Lee's 51 per cent stake for Rs 1,240 crore and merged the business into the company. «We went on to invest in and grow our household insecticides business over the decades. It was a separate business from GCPL till 2010 when we acquired Sara Lee's stake and merged the business into GCPL,» said GCPL chairperson Nisaba Godrej addressing shareholders of the company.

She further added: «We believe this business has an implied value of around Rs 30,000 crore today, based on the current GCPL market cap, with an underlying 30 per cent CAGR on value creation. GCPL's total market capitalisation is around Rs 1.08 lakh crore, as per information available on BSE. Nisaba Godrej was referring to this in the context of GCPL's recent Rs 2,825-crore acquisition of the FMCG business of Sighanias promoted Raymond Consumer Care Ltd along with Kamasutra and Park Avenue brands.

»At our analyst meeting in May, I shared my excitement and how perspectives from the past can give you some thoughts for the future. For me, it goes back to the story of how we acquired our Goodknight brand," she said. GCPL is a market leader in the fast-growing home insecticide (HI) market in India with the powerful brand Goodknight and HIT.