Why Is Godrej Acquiring Park Avenue & Kamasutra Deodrants?

Godrej Acquisition

Deodorants have become an integral part of our lifestyle. As a result, the deodorant market is rising at an exponential rate with a 10% CAGR (Compound Annual Growth Rate). Numerous global and local brands undergo cutthroat competition to gain a significant market share. One such significant event occurred recently when Godrej (GCPL) acquired Park Avenue & Kamasutra deodorants. 

Godrej Acquisition

A lot of money was burnt at the altar of this deal. Can you guess the amount? It is Rs.2,825 crore! Now here’s the thing. GCPL had already entered the market of deodorant and Men’s grooming categories with its in-house Cinthol brand. Then what is the reason behind Godrej’s acquisitions? Is the deal genuine enough or just a marketing gimmick? Let’s find out!

Story so far

Godrej Consumer Products Limited (GCPL) has paid Rs.2,825 crore to own Raymond’s consumer care business including Park Avenue and Kamasutra.”

The market is buzzing with the above headline. According to CFO (Chief Financial Officer), GCPL, the company has visioned a multi-decadal double-digit sales growth rate through this deal. Also, they had previously shut down its Cinthol deodorants. So, they had two options to enter the booming deodorant market of India. Either launch a new deodorant product or acquire those that are already flourishing in the market. Godrej preferred the second option. Why? You may ask. Simply, because the latter option is effective as well as less time-consuming. 

Godrej has a good level of understanding of the deodorant market segment in terms of penetration, sales, and consumer patterns. Unfortunately, it lacks operating experience! Although it tried its luck in the deodorant market with Cinthol, it went in vain.

According to the CEO and Director of GCPL, this acquisition is a part of the expansion process of the company’s portfolio. Even though the cost of this deal is 3.75 times Godrej’s revenue in FY23 i.e. Rs.622 crore. But, it is a good fit to enter a new market segment. So, how will things change? You will get to know it in the later sections.

Godrej’s Plan Post Raymond’s FMCG Business Acquisition

Now here comes the most anticipated query of folks. “Why Godrej is going after Park Avenue and Kamasutra deodorants. You see, these are the two highly popular deodorant brands in India that have been around for quite some time. Probably, you are well aware of these brands too! Both brands have a loyal customer base. Godrej’s acquisition of these brands can help it strengthen its position in the Indian deodorant market.

Furthermore, Godrej has a strong distribution network in India, which can help these brands reach a wider audience. It has over 13 lakh retail outlets when compared to 6.5 lakh retail outlets of Raymond. Godrej’s expertise in manufacturing and marketing can also help enhance the brands’ product offerings and boost their sales.

So now, will Godrej manufacture the deodorants on its own? The answer is “NO.” The Raymond Group (the parent company of Park Avenue and Kamasutra) will continue to manufacture the deodorants. Thereafter, they will sell them to Godrej Consumer Care. You can say that Godrej will follow the B2C (business-to-consumer) model for deodorant selling while Raymond Group will continue to contract-manufacture the deodorants.

Market Reaction To The Deal

As soon as Godrej announced its deal to buy the FMCG business of Raymond, its shares plunged down to 6%. It occurred during intraday trading.  Can you guess its trading price at that time? It was trading at INR 900.00 per piece. Unfortunately, the consumers of Godrej were the biggest losers on the Nifty FMCG index. Although, consumers were a bit hostile toward its deal. But, the officials of Godrej had a positive overview.

Well, Godrej was not the only player whose share prices dropped suddenly. Raymond’s share prices also dropped sharply to 7% after the deal.

As per Godrej’s managing director, the per-capita consumption of deodorants was over 40% when compared to 5% in USA and Indonesia. This suggests the potential of deodorant business in India. 

Analysts Opinions

As per the market analysts, the acquisition of two powerful brands by Godrej is going to be a mixed bag. It may not be enough to earn a truckload of profits. As you know, grooming products need extremely high promotional intensity. Godrej has to spend heavily in both core categories i.e. production as well as marketing. This factor will put high pressure on the profit margins, especially in the high inflationary cycle of today’s market.

However, Park Avenue and Kamasutra already possess a large and loyal customer base. This is going to be an invaluable asset for the company. Not only it would increase the total addressable market (TAM) of Godrej but will also improve the chemist distribution.


Godrej is a large Indian conglomerate that operates in various industries, including consumer goods, appliances, real estate, and many others. One of its major business areas is personal care. And you know very well that deodorants are an essential part of personal care. Godrej has been planning to expand its personal care portfolio over the years. Therefore, it stepped into acquiring popular brands to strengthen its market position. So you can say that Godrej’s acquisition of Park Avenue and Kamasutra deodorants is a strategic move. It is aimed at expanding its personal care portfolio, strengthening its market position, and leveraging its distribution and marketing expertise.

Latest Update

On May 10,2023 Godrej Consumer Products Limited (GCPL) acquired Raymond’s Park Avenue and Kamasutra deodorants. This deal was worth Rs.2,828 crore. It was a part of Godrej’s strategic move to expand its personal care portfolio. The Raymond Group (the parent company of Park Avenue and Kamasutra) will continue to manufacture the deodorants on a contractual basis and sell the to Godrej Consumer Care. Then, GCPL will sell those deodorants to the customers.

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Published By: Supti Nandi
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