Kolkata: The Godrej Group is focusing on a fake expansion track and feels it is a good time to go for some-more acquisitions, Chairman Adi Godrej said.
“We are putting lot of importance on fake expansion route. We acquired few businesses final year in agro and consumer segments. Our expansion by fake track will be good over a subsequent few years,” pronounced Godrej.
“Inorganic expansion would be done especially by acquisitions. Globally things are not doing well; we can acquire businesses during reduce cost than normal,” he told reporters here.
The organisation was looking to acquire businesses especially in a building universe — Asia, Africa and South America — and during merger in a consumer product segment, especially in personal and domicile products, he said.
The group, however, has not set aside supports for acquisitions. “We are looking during right opportunities, synergies, advantages and strategies. If we need some-more income and we can lift funds,” he said.
Godrej pronounced businesses have been flourishing though expansion was reduce in a final integrate of years due to bad monsoon.
The organisation has in place ’10/10′ expansion strategy, that means grow 10 times of benefaction distance in 10 years’ time, he said.
“Due to delayed expansion in a final integrate of years, we have depressed behind a little. We wish to make adult on that.”
The association is looking during a 26 percent devalue annual expansion rate.
“We don’t consider we can have such a expansion in organic approach only; some of it will have to be inorganic. A severe guess suggests about 15 percent expansion would come from organic approach and 10 percent by fake route,” he said.
A small pick-up in a altogether consumer expansion has been beheld from this quarter, “but we need to see either it will continue and how it will continue,” Godrej said.
“I design a consumer direct will continue in destiny if GST (Goods and Services Tax) is rolled out in Apr during a essential rate.”
Under GST regime, Indian economy would do good and expansion could hold a double-digit figure, he said.
The Mumbai-headquartered Godrej Group is into genuine estate, consumer products, industrial engineering, appliances, furniture, confidence and rural products. It claims to have about 750 million people users of the products in India and about 1.1 billion people globally.