Goodknight’s IV at Rs30k cr now from `100cr in 1994

New Delhi The Implied Value (IV) of Goodknight business based on the current market capitalisation (mcap) of Godrej Consumer Products Ltd (GCPL) is around Rs30,000 crore, which was bought by the group’s FMCG arm in just Rs100 crore in 1994, the company said in its latest annual report. Godrej Group had bought the Goodknight brand in just Rs100 crore in 1994. A year later in 1995, it sold a 51 per cent stake in Goodknight to Sara Lee and started a joint venture with the US-based consumer goods company. Later in 2010, GCPL acquired Sara Lee’s 51 per cent stake for Rs1,240 crore and merged the business into the company. “We went on to invest in and grow our household insecticides business over the decades. It was a separate business from GCPL till 2010 when we acquired Sara Lee’s stake and merged the business into GCPL,” said GCPL chairperson Nisaba Godrej addressing shareholders of the company. She further added: “We believe this business has an implied value of around Rs30,000 crore today, based on the current GCPL market cap, with an underlying 30 per cent CAGR on value creation.”