DGGI probes Godrej, Raymond deal

A recent deal between Raymond and Godrej is allegedly being investigated by the Directorate General of GST Intelligence (DGGI). Godrej Consumer Products had stated earlier this year that it had reached an agreement to buy Raymond Consumer Care Limited's FMCG business. Raymond Consumer Care Limited is a major participant in the Indian deodorant and sexual health markets.

Raymond was paid Rs 2,825 crore by Godrej Consumer Products in exchange for the FMCG company and the trademarks Park Avenue, KS, KamaSutra, and Premium, which were acquired through a slump sale.

Sudhir Sitapati, MD and CEO of GCPL, while announcing the deal in April, had said that the acquisition allows the company to complement their business portfolio and growth strategy with under-penetrated categories that offer a long runway of growth.

Atul Singh, Group Vice Chairman, Raymond Group, had said, “We have divested our FMCG business with trademarks of Park Avenue, Kamasutra for FMCG categories to Godrej Consumer Products. We take pride in building strong homegrown brands that are amongst the leaders in their categories,” further adding that Godrej Consumer Products will provide the requisite impetus to further drive the growth of these brands.