Reorganising its Kenya business is part of Godrej Consumer Products’ plan to restructure its operations in Tanzania, Uganda, and Angola.
The news that Godrej Consumer Products was selling its $3.5 million stake in Godrej East Africa Holdings, Mauritius, caused a sharp increase in the company’s share price early on February 20. The company’s shares were up 0.61% from the previous closing price at 9:55 am, trading at ₹1,237.45.
Godrej Consumer Products is reorganising its activities in East Africa with the goal of concentrating on areas with more profitability and growth potential. This includes the divestiture move. Godrej East Africa Holdings and its subsidiaries will no longer be subsidiaries of the firm after the purchase closes.
The goal of the reorganisation in East Africa business is to increase profitability, especially in the Godrej Africa, USA, and Middle East (GAUM) cluster. GCPL has declared the sale of its Tanzanian operations as part of this plan, switching to a franchisee business model. For Q4FY24, this action is anticipated to have a negative revenue impact of about ₹70 crore.
Reorganising its Kenya business is part of Godrej Consumer Products’ plan to restructure its operations in Tanzania, Uganda, and Angola. The company intends to convert its Kenyan operations to a franchisee model with the goal of making an annual profit of about ₹50 Crore.
