Godrej Consumer Products Ltd. (GCPL) is set to acquire 100 per cent equity in Frika Hair (Pty) Ltd, a leading company in the hair extensions business in South Africa.
While the size of the deal was not indicated, GCPL Managing Director Vivek Gambhir told The Hindu that the deal would be completed in the next few weeks.
"The acquisition is part of our plans to scale up presence in the African continent. We remain excited by the tremendous potential of the African market, and look forward to further building our business," he said.
The Africa business of GCPL has revenues of $200 million.
"We plan to take this to $500 million in the next 3-5 years," Mr. Gambhir said adding that it was growing 'in the low to high teens'.
"Currently, East Africa, West Africa and South Africa contribute about a third each to our total revenues. Our strategic focus will be on sub-Saharan Africa."
Frika Hair had 2014 net sales of around 73 million South African rand (around Rs.40 crore).
GCPL plans to increase its international presence with an increased presence in three emerging markets of Asia, Africa and Latin America.
It earlier acquired Rapidol and Kinky in South Africa and the Darling group, a leading pan-Africa hair care company.
Frika will complement GCPL's masstige portfolio under the Darling brand.
On bringing Frika's products to India, Mr. Gambhir said there was no significant market for hair extensions here.
"But there is an opportunity to take our product portfolio there. In Africa, we are building scale after acquiring the Darling group, and are making a strong foray into home insecticides.