Godrej Consumer Products Ltd (GCPL) has announced the acquisition of Indonesia-based PT. Megasari Makmur Group and its distribution company in Indonesia.

Megasari Group manufactures and distributes a range of household products, including household insecticides, wet tissues and air fresheners.

GCPL officials believe that the acquisition is expected to be very positive for the company in the first year itself and has been funded by overseas debt at a very attractive price.

Adi Godrej, chairman of GCPL, said: “Megasari Group provides us a strong platform to establish a significant foothold in Indonesia, which is among the largest consumer markets in Asia.”

“Given Megasari Group’s leading position in household product categories in Indonesia and the Godrej Group’s strong presence in this category in India, we believe this acquisition will provide significant synergy and create value for shareholders,” he said.

“As an emerging market multinational, this acquisition is an important step in our global 3 by 3 strategy – presence in 3 continents – Asia, Africa and Latin America through three core categories – home care, personal wash and hair care,” added Godrej.

A. Mahendran, director of FMCG portfolio cell for the Godrej Group, welcomed the acquisition.

“As one of the largest household insecticide and air care companies in Indonesia, the company has a strong track record in innovative high quality value-for-money products to the Indonesian consumer. We look forward to working with the seasoned Megasari team to further accelerate growth and leverage synergy between the two groups,” said Mahendran.

Megasari Group’s current management team will continue to be involved with the companies. Godrej Group has put in place a cross functional team consisting of current Megasari employees and Godrej’s team from India.