Godrej in 50:50 JV with Sweden-based SCA

New Delhi, Mar 26: Consumer durable major Godrej Consumer Products Ltd (GCPL) will form an equal joint venture with Sweden's SCA Hygiene Products AB to manufacture and market paper-based absorbent hygiene products, specifically sanitary napkins and baby diapers, in India, Nepal and Bhutan.

Mr A B Godrej, Head, Godrej group of companies, will be the Chairman of the new entity 'Godrej SCA Hygiene Ltd' to be set up with an equity capital of Rs 20 crore through equal investments by both parents.

The JV company proposes to set up manufacturing operations in India and focus on establishing its presence in feminine hygiene protection and baby diapers, both of which are among the fastest growing categories in the FMCG segment.

The feminine hygiene protection category is estimated at Rs 8 lakh while the baby diapers business is presently touted to be Rs 2 lakh in size.

SCA Hygiene Products, the 100 per cent subsidiary of the SCA Group, is a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products.

UNI