E-Paper
Godrej aims three-fold growth in overseas biz
Godrej Consumer Products Ltd, the company behind household goods such as Godrej hair dye, Cinthol soap and Good Knight anti-mosquito mats, is eyeing a bit overseas push after three overseas acquisitions in Latin America, Africa and Indonesia. Rachit Vats reports. New territories, new ambitions
Godrej Consumer Products Ltd (GCPL), the company behind household goods such as Godrej hair dye, Cinthol soap and Good Knight anti-mosquito mats, is eyeing a bit overseas push after three overseas acquisitions in Latin America, Africa and Indonesia.
It is betting on household insecticides, soaps and hair colours and international overseas revenues that now make up about a third of consolidated net sales. Company officials say they expect international revenues to triple this year.
GCPL had consolidated sales of Rs 2,044 crore in 2009-10 including its subsidiaries. Of this Rs 1,268 crore came from the main India unit.
The company is in the process of integrating all its global businesses under industry veteran Shashank Sinha, president, international business. All country heads will report to him. Overseas acquisitions could also be used to increase the revenues.
"We got a good headstart in the last few years to establish the presence of Godrej Consumer Products in the new geographies. We are on course to execute the three-by-three strategy. We are looking at a common innovation pipeline products in each category to be available in all markets. It’s a long-term vision," said Vivek Gambhir, Chief Strategy Officer, Godrej Industries Ltd.
“Each of these categories that we operate in offer huge potential. There are endless possibilities. What we will do is leverage the strength of our strong brands. So, a Cinthol may see more products from under its umbrella in personal care and so on in hair care and home care,” said Gambhir.
The market seems to be backing Godrej’s plans — the market capitalisation of the group’s listed entities jumped three-fold in 12 months to Rs 19,500 crore in 2010 and has further risen to Rs 23,163 crore in 2011.
“There are endless possibilities. What we will do is leverage the strength of our strong brands. So, a Cinthol may see more products from under its umbrella in personal care and so on in hair care and home care,” said Gambhir.
