Omar Momin, ISB Class of 2004, is making waves for his crucial role in the acquisitions made by the Godrej Consumer Products (GCPL). As Vice President - Strategy and M&A, Omar has been involved in the Godrej group’s acquisition of five companies across four countries in three continents. In a Q&A, Omar provides an insight into the acquisition process and the strategy behind it.


The Godrej group has been buying companies across the globe, from Africa to Latin America. Can you provide some insight into their strategy?

Over the last few years, we have been following a very disciplined and focused globalisation approach which we call our 3 by 3 strategy – presence in 3 continents – Asia, Africa and Latin America through 3 core categories - home care, personal wash and hair care. Our 3 by 3 strategy starts with the premise that the primary focus of growth will continue to be the domestic Indian market. At the same time, we believe that there are tremendous growth opportunities available in attractive emerging markets. These emerging markets have characteristics and consumer demographics similar to India with a significant middle and bottom of the pyramid population. We believe that we can very effectively leverage GCPL’s fundamental value proposition of superior quality affordable products and our understanding of consumers to these markets. And we can add tremendous value to these acquisitions through the rigour of the our processes, operational discipline and manufacturing and sourcing strengths.

What criteria do you look for while deciding the target companies and how did the company finance all the acquisitions?

We have a robust approach to identifying acquisitions in these emerging markets. We acquire companies that have strong local brands and are run by seasoned management teams that have demonstrated a track record of good results. Our recent acquisitions are important steps towards realising our vision of transforming GCPL into a leading emerging markets FMCG company. The acquisitions have been funded through a mix of debt and internal accruals.

How easy has it been to integrate these companies into the overall Godrej group?

We spend a lot of time in HR and culture assessment as part of the diligence before making an acquisition. The strength of the local management team is one of our most critical criteria when we assess targets. And once we acquire a company, we adopt a values based partnering approach.

We ensure that local autonomy is maintained with support provided by the centre in value added areas. We retain as much of the existing management as possible. But we empower local management with clear and tangible goals and revise incentives to drive greater alignment. We also seed critical positions and talent in areas such as HR, Finance and Operations from the Godrej group in joint agreement with the local team. Our international team also has dedicated support for HR, Finance and Supply Chain to ensure that we provide full support to our subsidiaries.

The results of the acquisitions made over the last few years shows that the systematic way in which we manage and integrate our acquisitions has worked very well. For all the acquisitions that we have made, we find that the revenue and profit trajectory has significantly improved once these companies have come under the fold of the Godrej group. And we feel very confident that we can create the same path of accelerated value creation with our recent acquisitions.

Did you face any opposition regulatory or otherwise while acquiring these companies; please talk about your challenges & experiences

Each country we have made an acquisition in has been unique in terms of its regulatory environment as well as challenges. I wouldn’t be able to comment on any specific examples but I can definitely assert that most countries and management teams have been quite receptive to the idea of partnering with an Indian group.

Where does the group see itself going forward? Will there be an increase in such acquisitions?

We will spend the next 12-18 months consolidating the acquisitions we have recently completed. On an ongoing basis, inorganic growth will be an important part of our growth strategy. We will continue to use acquisitions as a means of creating value for our shareholders.

Can you share with us your learning from the ISB which has proved to be invaluable in your career?

The quality of faculty, curriculum and the breadth of exposure was of immense value.

Any advice for current students keen in pursuing a career in M & A?

Be sure of your fundamentals in finance and get a good grounding in business before getting into an M&A role.