To achieve the target, the company will go in for inorganic growth and this will be partly funded by the proposed Rs 400 crore (Rs 4 billion) rights issue. It has started scouting for acquisitions in hair colour business in the developing markets.
International operations contributed around 3 per cent to GCPL's sales six years ago. This has gone up to nearly 25 per cent now. The company posted total sales of Rs 953.23 crore (Rs 9.53 billion) last year.
Hoshedar Press, executive director and president, said, "We are looking at acquisitions in developing countries, with a population of people with black hair. We are confident of achieving this objective since we believe that even one good acquisition is enough to reach the set target."
The hair colour business contributes 35 per cent to the company's total turnover and 60 per cent to its profit. The company will maintain a twin focus on soaps and hair colour. Hence, it will be open to acquisition in both these categories.
The company had begun its acquisition drive two years ago by taking over the personal care products company, Keyline in UK.
"The Keyline acquisition was our first foray to gain experience in the overseas market and use the assets of the target company as a vehicle for our Indian business" said Press.
The company subsequently bought the South African business of ethnic hair colour manufacturer Rapidol UK as well its subsidiary Rapidol International to expand its presence in the African market.
GCPL garnered revenues worth Rs 93.2 crore (Rs 932 million) from Keyline UK and 23.6 crore (Rs 236 million) from Rapidol in the first half of FY2007-08.
It also acquired Godrej Global Mideast FZE, a 100 per cent subsidiary of Godrej International in Sharjah established with the objective of distributing Godrej FMCG products in West Asia.
