Goldman, Mahendran rev up FMCG story

MUMBAI: Wall Street bellwether Goldman Sachs said it was leading a Rs 315-crore investment deal in Global Beverages & Foods Private Ltd, a new fast moving consumer goods (FMCG) company floated by former Godrej Consumer Products MD Arumugam Mahendran.
Goldman Sachs, along with the private equity unit of Japanese conglomerate Mitsui, will hold majority shares in the company, with operational headquarters in Bangalore.Mahendran, a professional entrepreneur with minority ownership, will helm the company which plans to finalize a detailed business plan in the next three months.
"This will essentially be a Goldman Sachs company and its route to the Indian FMCG market. The investors will back us to pursue an acquisition-led growth strategy, depending on the opportunities that come along," Mahendran said.
He added that the newly floated company was pursuing three-five buyout opportunities, some of which were still in early stages. Global Beverages & Foods, he added, would emerge as a significant independent player in the domestic market, currently dominated by MNCs and family-run consumer businesses.
Mahendran pioneered the household insecticides segment in India with brands like Good Knight and Hit, besides being a deal-maker with a strong M&A track record at Godrej, which included eight acquisitions.
Ankur Sahu, co-head of private equity in Asia at Goldman Sachs, said, "By backing talented, local entrepreneurs, we have built platforms in promising sectors like power and healthcare. We are now excited to partner with Mahendran to build a large, high quality consumer company in India."