Godrej to amalgamate two overseas arms with itself
The Dollar Business Bureau
In order to streamline its group structure, FMCG major Godrej Consumer Product Ltd (GCPL) on Friday said that it would merge its two fully-owned holding companies abroad with itself.
Godrej Consumer Products US Holding Ltd (GCPUSHL) and Godrej Consumer Products Mauritius Ltd (GCPML) would be amalgamated with the GCPL.
“Both the transferor companies are wholly-owned subsidiaries of GCPL. As per the scheme, GCPML and GCPUSHL will be amalgamated into GCPL,” the company said in a filing to Bombay Stock Exchange.
However, the process will be subject to required statutory approval from the authorities in India and Mauritius, it added.
The company further said that as both the firms are fully-owned arms of GCPL and are related parties, therefore shares will not be issued in the amalgamation process.
In addition, the shares of GCPL in both the subsidiaries shall be considered canceled, it said.
This step would "streamline the structure of the group by cutting the number of legal firms in the group’s structure" and also cut "multiplicity of regulatory and legal compliances," the company informed.
A part of the 119-year old Godrej Group, GCPL is a leading consumer products company with its presence in three emerging markets including Asia, Africa and Latin America across the home care, personal wash and hair care categories.
GCPL has acquired foreign firms like Keyline Brands Ltd (the UK) in 2005, Rapidol (Pty) Ltd (South Africa) in 2006, and Godrej Global Mid East FZE in 2007 and had a joint venture with Sweden’s SCA Hygiene Products AB in 2007.
Recently, in 2015, the group had fully acquired a 100 percent equity share in Frika Hair - South Africa’s hair extensions company.