Kolkata, Dec 10 (IANS): Godrej Group, which is eyeing acquisitions to fuel growth, Tuesday said it was expecting a 20 percent compound annual growth rate (CAGR) by 2020.

"By 2050, India will be the world's largest economy and by 2040, I think India will overtake USA", group Chairman Adi Godrej said during an informal media interaction here Tuesday night.

He said China would overtake USA in the long-run and India, because of its demographic strength, would emerge as the leader in the world economy.

Godrej said the Mumbai-headquartered conglomerate was looking at a "20 percent CAGR by 2020 both organically and inorganically".

The company is targeting a 26 percent increase in its sales and is in talks to acquire the Darling Group Holdings (DGH), which operates in 14 countries across Africa selling hair extension products.

"It will be a gradual process. We have planned the acquisition in stages and have 51 percent stake in the company presently", Godrej added.

Not disclosing the deal value, Godrej said, of the 14 countries where DGH has a presence, Godrej group has completed the acquisition for eight entities and the rest will be completed shortly.

As part of its growth strategy, the diversified Indian business group has been consistently acquiring firms in the hair care business, a segment where it has products in the hair colour, hair dye, mehendi and hair oil categories.

It also also forayed into the hair salon sphere after picking up a 30 percent stake in Mumbai-based premium hair salon chain B:blunt for an undisclosed amount.

Offshore earnings contribute to 31 percent of the company's annual turnover.