We need to move a lot faster in this slow market, says Godrej Consumer Products chairperson Nisaba Godrej
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Mumbai: Godrej Consumer Products chairperson Nisaba Godrej said the company's performance in FY25 was below expectations and doesn't feel "wildly successful".The maker of GoodKnight mosquito repellent and Cinthol soaps reported a 4% increase in volume sales during the March quarter compared with a 5% growth in the fast moving consumer goods market, according to NielsenIQ.GCPL, however, said it outpaced the market growth of 4% over a two-year compound annual growth rate (CAGR) with a 6% growth in 2024-25."We had some googlies from the external environment, including palm and other costs, and we have seen sort of (slow) volume growth in FMCG," Godrej said during the company's annual investors meet last week. "We also dropped a few of our own balls in categories like household insecticides and deodorants, which hopefully, I think, we have owned some gaps and you will see some better, stronger performance in quarter one. We have learned in this slow market that we need to just move a lot faster."For FY26, on an overall basis, the company has guided for high single-digit revenue and double-digit Ebitda growth. The company said factors such as lower food inflation, income tax reduction and government's welfare schemes will help sales growth over the next 12-18 months."The last five years post Covid is a case where the top 20% has been doing really well and the bottom 80%, whether it's urban or rural, hasn't. There are a few things that might reverse. Food price inflation has come down in the last 2-3 months, income tax relief that should come this month onwards, so almost a lakh crore being released into consumption," said Sudhir Sitapati, managing director at Godrej Consumer Products, adding that pay commission due early next year will also help since it has historically boosted demand in the sector.GCPL said it will invest about '700 crore to bolster existing factories as well as open a new manufacturing plant in Indonesia in the next two years.The company expects soaps' volume to grow 2% and household insecticides portfolio to grow at 6-8%. In the past few years, the company entered the deodorants segment through the acquisition of Park Avenue and Kamasutra, expanded its organic play in the fast-growing liquid detergent segment with Godrej Fab and tapped into the growing pet food market through a new subsidiary, Godrej Pet Care, which recently launched pet food brand Ninja.The company said these categories have a multi-decadal growth runway with lower per capita consumption compared to other markets it operates in. For instance, spending per capita in Indonesia is three times higher in deodorants and seven times higher in perfumes compared to India.
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