FMCG major Godrej Consumer Products is set to enter into a deal with Raymond to buy the latter's FMCG arm Raymond Consumer Care.

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While the contours of the deal are yet to be made public, both companies are set to make a formal announcement of the deal later in the day.

Raymond Consumer Care operates in personal care, sexual wellness and home care categories with brands like Park Avenue, Kamasutra & KS Spark.

Raymond, which owns a 47.66 percent stake in the consumer care business as of financial year 2022, has been looking to sell the FMCG arm for a few years.

The company was earlier in talks with Good Glamm for a deal worth nearly Rs 2,500 crore in 2022, but talks did not materialise due to valuation issues.

A deal with Raymond will give GCPL a foray into fragrances and sexual wellness categories and strengthen its presence in the personal care sector, with Raymond's dominance in the men's grooming space.

Raymond's Consumer Care business had sales worth Rs 522 crore in financial year 2022 and its brands like Park Avenue and KS Spark have a dominant market position in the Men's deodrants category.

Additionally, KS Spark Deo Fragrance is the leading variant across Urban India, as per Raymond's annual report for financial year 2022. Kamasutra is the third-largest player in branded condoms in India and has a manufacturing facility in Aurangabad with a capacity of 400 million units per annum.

GCPL is currently present in hair care, home care & personal care categories.

CNBC-TV18 has reached out to both the Raymond Group as well as GCPL and are awaiting a comment.

Shares of Raymond hit a 52-week high in early trade on Thursday, and is currently trading 6 percent higher at Rs 1,706.55. On the other hand, GCPL shares are trading 2.8 percent lower at Rs 949.10.

Also Read: Godrej Consumer Products expects gradual recovery in demand

(Edited by : Hormaz Fatakia)

First Published:Apr 27, 2023 10:33 AM IST