Advent will lead the acquisition of 34.37% of CG’s consumer products business

Demerger and share purchase details

Advent and Temasek will acquire ownership in CGCEL by purchasing shares in CGCEL from Avantha Holdings following the demerger of the consumer products business from CG and the listing of CGCEL on the BSE and NSE. The transaction is expected to be completed in the first quarter of 2016.

CG had filed with the BSE on March 3, 2015, regarding the demerger of CG's consumer business into CGCEL, whereby all of CG's shareholders will receive shares of CGCEL such that the shareholding of CGCEL upon completion of the demerger will mirror the shareholding of CG.

CGCEL's growth and consumer product market growth

CGCEL has grown at a compound rate of 16% per year over the past six years and generated revenue of INR 28.5 billion (US$459 million) for the fiscal year ended March 31, 2014. The business has benefited from robust long-term growth in the Indian consumer products market, where sales volume has increased approximately 1.5 to 1.9 times India's real gross domestic product (GDP) from 2002 to 2014. With India's GDP growth expected to accelerate in the coming years, prospects for the country's consumer segment remain strong.

"As a standalone company, CGCEL would be able to pursue more strategic goals and thus maximize value for all its stakeholders," said Laurent Demortier, CEO and Managing Director of CG. "I would like to thank our colleagues in the consumer products business for their commitment and achievements, and I am confident that they will continue to benefit as the business pursues further growth in India and beyond."

Advent International in India

Advent International has been investing in India since 2007 and opened a Mumbai office in 2009. Its Indian investments include Computer Age Management Services (CAMS), a leading provider of business process outsourcing services to the asset management industry (subsequently acquired by the National Stock Exchange of India in 2014), and CARE Hospitals, the largest multi-specialty hospital chain in South and Central India. 

Advent has been investing in the consumer products and industrial sectors for over two decades.

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