Godrej Consumer Products Limited (GCPL) on Tuesday said it has entered into an agreement with South Africa-based Frika Hair (Pty) Limited for the acquisition of 100 per cent equity stake in its hair extensions business in South Africa.
"This acquisition reflects our continued commitment to scaling up our presence in Africa and providing African consumers with a wide range of superior quality products at affordable prices. We remain very excited by the tremendous potential of the African market and look forward to further building our business," said GCPL managing director Vivek Gambhir.
GCPL said Frika Hair (Pty) Limited enjoys a premium position in the South African market.
"It has particular strengths in the Western Cape, Eastern Cape and Gauteng, and is the market leader in key accounts in organised retail. In 2014, net sales of the company was approximately ZAR 73 million. This acquisition helps GCPL in consolidating its presence in the hair extensions market in South Africa," the company said in a statement.
GCPL's Africa business currently has annualised revenues of $200 million.
This move is in line with GCPL's global "3X3 strategy", targeting strong regional assets in the emerging world.