Godrej Sara Lee plans IPO

By Our Corporate Reporter

CHENNAI, OCT. 25. Godrej Sara Lee Ltd. (GSLL), the joint venture between Sara Lee Corporation of the U.S. and Godrej engaged in manufacturing and marketing household insecticides, has plans to further strengthen its leadership in the country.

GSLL is planning an initial public offer through which it would be divesting 25 per cent of its equity capital of Rs. 10 crores. It has already received the clearance from the Securities and Exchange Board of India and equity shares of Rs. 4 face value would be offered through book-building route sometime next month. Sara Lee has a 51 per cent stake.

Addressing presspersons here today, Mr. A. Mahendran, managing director, said the company had already a 50 per cent share in the household insecticides market of Rs. 600 crores. The market would grow to Rs. 2,000 crores in three years with GSLL commanding more than 50 per cent share, he said.

Apart from its flagship brand, Goodknight, GSLL has the leader brands such as Hit, Jet, Banish and Hexit. With a view to promoting the brand equity further Mr. Mahendran said the company would be spending 12 per cent of its turnover through television advertisements, media and sponsoring of beauty contests.

One such event `Ms. Chennai 2000', the final of which is to be held here on November 6, has been branded by Godrej Sara Lee. The contest is organised by the Chennai based VIBA, an organisation promoting live-events, in-house launches, fashion and dance shows.

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Section  : Business
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