Diversified Godrej Group is looking to accelerate growth and multiply its size 2.5 times in the next four years to touch USD 10 billion mark by 2020 with acquisitions in emerging markets slated to play a key role in achieving the target.
The group with interests in various sectors such as consumer goods, real estate, appliances and agriculture had announced its 2020 vision aiming to be 10 times the size of what it was in 2010.
“Our objective is 10 by 10, which is ten times growth in 10 years at a compounded annual growth rate of 26 per cent. That is our objective. In next four years, if we grow with CAGR of 26 per cent then in four year we are about 2.5 times of our present size,” Godrej Group Chairman Adi Godrej told PTI.
He said the growth will be driven by both organic and inorganic expansions in domestic and foreign markets, even as the group has been active in acquisitions.
The group, which has a revenue of over USD 4.1 billion, has made four acquisitions in the last six months.
“We would like to continue acquisitions. We would emphasise strong growth both organic and inorganic. We have made four acquisition in last six moths – two have been abroad and two in India,” he said.
When asked if the group would continue to pursue more acquisitions, he said: “We think that there would be further acquisitions as our growth would be both organic and inorganic.”
On where the groups inorganic growth opportunities, he said: “We would focus mainly on emerging economies but our latest acquisition was in US market.”
Last month the groups FMCG firm Godrej Consumer Products Ltd (GCPL) had entered into an agreement to acquire US-based hair care products firm Strength of Nature LLC (SON), as part of its ongoing strategy to boost its international business.
In February, GCPL had also acquired majority stake in Canon Chemicals in Kenya.
Last year, another group firm Godrej Agrovat had acquired Creamline Dairy Products and Astec Life Sciences.
When asked about the impact of a good monsoon Godrej said: “If the monsoon is good, then it would help the Godrej group very considerably. Rural consumption would improve and second Gerek Agrovet, which works only in the rural areas for all its products as animal feed and agri-input, that company would also benefit.”