Chasing the next Goodknight: Why Godrej paid a premium for Raymond’s consumer care business
Our Partner, Abhinav Bhalaik shares his views with The Economic Times in their analytical piece on the Godrej Consumer Products Limited`s acquisition of Raymond`s Consumer Care business.
Commenting on the value of the deal, Abhinav noted that though the deal can be considered a tad bid expensive, as he has seen revenue multiples of upto 3x in similar deals, “the private market multiples often may not be in sync with listed multiples. For example, in some of the D2C companies’ cases, the valuations had skyrocketed earlier. There have been large corrections even in these valuations now”.
Further, according to Abhinav, Godrej holds a strong position to drive the growth in the consumer case market segment because the group has a deep understanding of the consumer market and will now also have men’s grooming products in its arsenal. He also believes that, “the next wave of growth for such consumer products might come from smaller cities and with the help from local influencers.”
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