Godrej Consumer Products Ltd will be buying the fast moving consumer goods (FMCG) business of Raymond Consumer Care Ltd for Rs 2,825 crore.
The brands that Godrej Consumer would be acquiring from Raymond Consumer are: Park Avenue (for the FMCG category), KS, KamaSutra and Premium, through a slump sale.
According to Godrej Consumer, for FY23, Raymond Consumer had reported a revenue of Rs 622 crore.
"This acquisition allows us to complement our business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth. Raymond is a leading player in the deodorants and sexual wellness categories with brands like Park Avenue and KamaSutra," said Sudhir Sitapati, Managing Director and CEO, Godrej Consumer.
These categories have the potential to deliver double-digit multi-decade growth given the low per capita consumption in India compared to similar emerging markets, he said.
Godrej Consumer sells brands like mosquito repellent Good Knight, Cinthol soap and others.
Atul Singh, Group Vice Chairman, Raymond Group, added: "We have divested our FMCG business with trademarks of Park Avenue, Kamasutra for FMCG categories to Godrej Consumer Products. We take pride in building strong homegrown brands that are amongst the leaders in their categories. Having brought these brands at the forefront of consumer recall, we believe that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands."