Godrej's Bold Move: Acquisition of Muuchstac Shakes Up FMCG Industry

Godrej Consumer Products Ltd (GCPL) has acquired Muuchstac in a Rs 450-crore deal. Founders Vishal Lohia and Ronak Bagadia remain at the helm, with the company focusing on its successful product, Muuchstac Face Wash. GCPL seeks more direct-to-consumer business opportunities to boost growth and profits.

Godrej Consumer Products Ltd (GCPL) has successfully acquired Muuchstac, solidifying its position in the fast-moving consumer goods sector with a significant Rs 450-crore transaction. The deal, set to propel GCPL's growth in high-margin categories, maintains the original founders, Vishal Lohia and Ronak Bagadia, at the operational forefront.

Sudhir Sitapati, GCPL's Managing Director and CEO, highlighted the groundbreaking nature of this acquisition on LinkedIn, emphasizing the success of Muuchstac Face Wash, which has become a major revenue driver accounting for 90% of the company's earnings. The founders have scaled the business turning their initial Rs 3 lakh into a multimillion venture without incurring losses.

The strategic acquisition marks a push for GCPL into direct-to-consumer sales channels, reflecting growing interest in new-age businesses. Eager to replicate Muuchstac's success, CEO Sitapati actively invites suggestions for similar deals, demonstrating GCPL's commitment to charting new territory in the FMCG landscape.

(With inputs from agencies.)