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Godrej to pick up 4 % stake in two US firms

November 11, 2005 01:30 IST

Godrej Industries is picking up four per cent stake each in two US companies, Boston Analytics LLC and Verson LLC.

S K Bhatt, executive vice-president, Godrej Industries, informed that the investment in the US companies is a part of the group's strategy to invest in lucrative businesses overseas.

Godrej Consumer Products, another group company, recently acquired a UK-based FMCG company, Keyline Brands Ltd.

Godrej Industries would also invest around Rs 25 crore in Godrej Consumer Products.

According to Bhatt, Godrej Industries would invest around Rs 24 crore in the US firms.

"We shall invest Rs 12 crore each in both the firms," he said.

California-based Verson is engaged in biotechnology and drug discovery. 

"This is a good investment opportunity for us considering that the biotechnology is the business of the future," he said.

Boston Analytics is engaged in business research and analysis. 

Commenting on the investment in the two US outfits, Bhatt said this is nothing new for Godrej. 

It has already invested in a medical transcription company in the US, C Bay, and a UK-based outfit, Compass Connection.

Describing the investment in Godrej Consumer Products as a value creation, he said this would result in an increase in Godrej Industries' stake in Godrej Consumer Products from the current level of 12.91 per cent to around 14 per cent.

Source: source