FMCG Godrej Consumer Products Ltd (GCPL) announced its plans to acquire Raymond Consumer Care Ltd (RCCL)  on Thursday. GCPL will purchase RCCL’s FMCG division in order to get access to the deodorants and sexual health markets in India for $2,825 crore. Raymond’s FMCG company, as well as the trademarks of Park Avenue (for the FMCG category), KS, KamaSutra, and Premium, are being transferred to GCPL through a slump sale.

GCPL said in a stock exchange filing that the acquisition is anticipated to be completed by May 10 of this year.  Sudhir Sitapati, Managing Director and CEO of GCPL commented on the development and said that they are thrilled to welcome the Raymond Consumer Care team and brands to Godrej Consumer Products. He further mentioned that they are able to add underserved markets with a long development potential runway to our business portfolio and growth strategy with this acquisition. With products like Park Avenue and KamaSutra, Raymond is a major force in the deodorants and sexual wellness industries, he added.

Adding on, “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. Per-capita consumption (USD) of deodorants in India is 0.4x that in Indonesia, 0.05x that in Brazil and 0.04x that in the USA. We look forward to building on this potential by unlocking the significant integration synergies with our business,” he said.

Meanwhile, Raymond announced the demerger of its Lifestyle business to RCCL to create a listed entity yesterday. The Suiting Business with Manufacturing Facilities, B2C Shirting and MTM Businesses, Branded Apparel including Garmenting Business with Manufacturing Facilities, and B2B Shirting Business with Manufacturing Facilities make up the Lifestyle Business. Additionally, RCCL will continue contract production in Aurangabad, Maharashtra, for both domestic and foreign markets while keeping its condom manufacturing facilities. Raymond Ltd. would primarily be a public real estate corporation with investments in engineering and the denim industry after the Lifestyle Business is demerged.

The Lifestyle Business will be able to become net debt free and an independently listed corporation thanks to the decision to demerge it from Raymond Limited.