Godrej Consumer Products Ltd (GCPL) acquired the remaining 50% stake in Godrej SCA Hygiene (GSH) from its joint venture partner, SCA Hygiene Products of Sweden. The transaction will make the joint venture company, which owns the 'Snuggy' brand of baby diapers, a 100 per cent subsidiary of GCPL.

GCPL had acquired the 'Snuggy' trademark and copyright in May 2003 and it has since grown to become one of the largest in South India. The brand was vested in the joint venture in March 2007 which marketed it along with other brands. The Swedish company pulled out of the Indian JV due to the challenging business scenario in its home country. The Godrej group sees the segment offering high growth potential.

The baby diapers business is at present estimated to be over Rs 200 crore and enjoys robust growth. The JV was set up to manufacture and market the absorbent hygiene products, specifically sanitary napkins and baby diapers, in India, Nepal and Bhutan. It was set up with an equity capital of Rs 20 crore (32 MSEK) through equal investments by both partners.