The Rs 5,000 crore (Rs 50 billion) Godrej group is eyeing acquisitions of mid-size companies in developing countries to compete with multinational corporations in India and abroad.
"For the international business, our strategy will be to acquire mid-sized companies in developing countries in the FMCG and consumer durables sectors. We will also focus on acquiring information technology and business process outsourcing firms in developed countries like the US and the UK," said Adi B Godrej, chairman, the Godrej Group.
He was in Ahmedabad recently to address a conclave on family businesses.
The group has almost finalised a deal to acquire a US-based business process outsourcing company as part of its greater globalisation plans.
"For us, globalisation is beyond exports and imports. We have manufacturing facilities in Malaysia, Indonesia and Vietnam. We will expand in select businesses where we have the global size and competitive advantage such as office equipment, hair care and household insecticides," said Godrej.
"Godrej is an umbrella brand for us and we have decided to invest in long-term brand accretion," he added.
Internationally, the group has grown to become one of India's largest engineering and consumer products companies with a total sales turnover exceeding $1 billion.
The company's products are available in the Middle East, Africa, south east Asia, Europe, North America and in the SAARC countries. The group has also set up manufacturing facilities in Malaysia, Singapore, Vietnam and Oman to cater to the burgeoning overseas demand and has its representative offices in Sharjah, Nairobi (Kenya) and Colombo (Sri Lanka).
When asked about the overseas investment plans, Godrej said, "We are ready to invest anywhere provided good investment opportunity exists at the location." However, he did not divulge the investment figures.
Godrej's IT business is carried under its subsidiary, Godrej Infotech, which engages in the business of software development, e-solutions development, ERP implementation, customisation and ERP consulting services, while for FMCG business, Godrej Consumer Products Limited is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments.
Godrej is among the largest marketer of toilet soaps in the country with leading brands such as Cinthol, Fairglow, Godrej No. 1 amongst others.
"Our Fairglow brand, India's first fairness soap, has created marketing history as one of the most successful innovations," said Godrej. Company's liquid detergent brand Ezee is the market leader in its own category.
The company is also the preferred supplier for contract manufacturing of toilet soaps to some of the most well-known brands in the country.
The Godrej Group has formed joint venture with the US-based Sara Lee Corporation to form Godrej Sara Lee, which is the world's largest manufacturer of home insecticides with some of the most popular brands like GoodKnight, Jet, Hit and Banish under its belt.