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Entrepreneur
16-07-2025
- Business
- Entrepreneur
Can GCPL Chase 'Wild Success' In FY26?
Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Godrej Consumer Products Ltd (GCPL) is chasing wild success. Has it been successful? "If we want to be wildly successful, market-level growth is not enough. We must move faster, be more honest about what's not working, resist blaming the macro too easily, and relentlessly strengthen execution—all while staying true to the Godrej Way, where high performance, deep principles and joyful leadership come together," said Nisaba Godrej, executive chairperson, GCPL. In FY25 GCPL recorded a two percent revenue and two per cent EBITDA growth, compared to the previous year. In India, a sharp spike in Palm oil prices disrupted soap margins in the second half. GCPL made the deliberate choice not to compromise long-term plans, even if it meant taking a hit in the short term. "We also expected stronger growth in household insecticides, especially with the launch of RNF, our new, more effective molecule. Deodorants underperformed too. We've since taken a hard look at execution in these categories—and the impact of those changes is reflected in our stronger Q4 results in these categories," she said. In India, GCPL delivered five percent volume growth, which was below expectations, largely due to a sharper-than-anticipated consumption slowdown in the second half. However, few of its brands, such as Godrej Aer continued to grow well. Fab, the new liquid detergent brand, crossed INR 150 crore topline in its first year. In just over a year, Fab has hit INR 250 crore in annualised revenue run-rate (ARR), with a growth trajectory resembling that of a digital-first brand. This will likely be a multi-year growth engine and help GCPL build leadership in a large, under-penetrated category. Goodknight Incense Sticks have also been a big success. Incense sticks is now a INR 100-plus crore business with eight percent market share, and 50 percent share in outlets where it is distributed. Godrej Ninja, the entry into pet food, is a new launch aimed at improving revenue. The category is still nascent but poised for high growth over the next two decades. GCPL is building Ninja patiently—with strong consumer insight, responsible marketing and long-term brand building. Furthermore, the company invested INR 500 crore each in Greenfield facilities at Chengalpattu in Tamil Nadu and at Malanpur in Madhya Pradesh. "Our growth model for India has three pillars. First, profitable share gain in soaps, where we have sharpened our focus on mix and margins. Second, a turnaround in household insecticides, where we are addressing the challenges of format downgrades. And third, expansion into future-facing categories—under-penetrated spaces like air care, liquid detergents, hair colour, body wash and sexual wellness," said Sudhir Sitapati, CEO & MD, GCPL. Internationally, margins improved significantly—Africa, the US and the Middle East reached 15 percent EBITDA after simplification and restructuring. This sets the stage for more in FY26, especially in Chile. Meanwhile, products like Pocket (both Aer and Stella), Shampoo Hair Colour (both NYU and Issue) and Goodknight Liquid Vaporiser are scaling rapidly, contributing INR 400 crore to international sales in FY25—a 58 percent two-year compound annual growth rate (CAGR). Indonesia grew volumes at six percent, in line with the company's expectation but attaining profitability was a challenge. The company's 2040 vision is bold, and it has a sharp Total Addressable Market (TAM) strategy. "Its beginning to play out—through our acquisition-led entry into deodorants, our foray into pet food with a new brand and our expansion into mass liquid detergents. To me, building a wildly successful GCPL means putting people and planet alongside profit—every single day—to create a legacy that endures for generations. GCPL is focussed and committed to delivering a strong performance in FY26, while continuing to shape our future ambitiously," Godrej added. The focus for fiscal year 2026 is clear: fewer, bigger, better bets that can drive scale, margin, and future readiness. One of the top priorities is reshaping the deodorants category. "Our approach will be to rewire the price-pack-channel configuration, introduce more relevant innovation and invest in building brand equity instead of discount-driven sales. We are taking a more first-principles approach to a category that has strong long-term potential but needs fixing," explained Sitapati.
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Business Standard
16-07-2025
- Business
- Business Standard
Nisaba Godrej outlines 2040 vision to shareholders in GCPL's annual report
In her letter to shareholders, Nisaba Godrej, executive chairperson of Godrej Consumer Products Ltd (GCPL), stated that the company's 2040 vision is bold, supported by a sharp total addressable market (TAM) strategy. She said this vision is already taking shape through GCPL's acquisition-led entry into deodorants, its foray into pet foods with a new brand, and its expansion into mass liquid detergents. Godrej opened her address by recalling a message from Sudhir Sitapati after last year's Godrej Group restructuring: 'Now let's be wildly successful.' She said the line stayed with her. 'It captures the spirit with which we're approaching the future—boldly, purposefully and with ambition,' she told shareholders. However, she acknowledged that the company has not yet achieved wild success and has fallen short of shareholder expectations. Godrej said that to be wildly successful, market-level growth is not enough. The company must move faster, be more honest about what's not working, resist blaming macroeconomic factors too easily, and relentlessly strengthen execution. Reflecting on the previous financial year, Godrej said: 'We saw strong momentum in innovation and working media investment. Brands like Godrej Aer continued to grow well. Fab, our new liquid detergent brand, crossed Rs 150 crore topline in its first year. Goodknight Incense Sticks have also been a big success. And Godrej Ninja, our entry into pet food, is a launch we did in record time with the partnership of our Group company, Godrej Agrovet.' She said the company also invested in strengthening its foundation, committing Rs 500 crore each to greenfield facilities at Chengalpattu in Tamil Nadu and Malanpur in Madhya Pradesh. 'Internationally, margins improved significantly—Africa, the US, and the Middle East reached 15 per cent EBITDA (earnings before interest, tax, depreciation and amortisation) after simplification and restructuring. This sets the stage for more in FY26, especially in Chile. Meanwhile, products like Pocket (both Aer and Stella), shampoo hair colour (both NYU and Issue), and Goodknight Liquid Vaporiser are scaling rapidly, contributing Rs 400 crore to international sales in FY25—a 58 per cent two-year CAGR,' Godrej said.
Time of India
13-05-2025
- Business
- Time of India
We need to move a lot faster in this slow market, says Godrej Consumer Products chairperson Nisaba Godrej
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel 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 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 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 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 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.
