Strengthening through innovation
The release, expected to take place later this year, was announced following the Indian consumer goods firm’s latest financial results published on 9th May 2017.
“This year, we are planning about three or four launches in India and also a similar number of launches in Indonesia,” stated Vivek Gambhir, Managing Director and CEO, GCPL.
Building its brand presence is a primary focus of the company. It will now develop its presence in existing geographical regions. GCPL owns a variety of Indian labels including soap-specific labels: Cinthol and No1, and hair care names: Expert, BBlunt, Renew and Nupur.
In India, for the latest quarter ending 31st March 2017, GCPL experienced 10% year-on-year (YoY) business sales growth to INR 1,326 crore (€188.4 mn), supported by a 5% growth in volume. This represents a net profit increase of 21% to INR 253 crore (€3.6 mn).
Utilising existing market awareness of its various soap and hair colourants names, GCPL’s main focus would be to “drive these brands to full potential. We are not planning for any new brand to be launched”, Gambhir added.
Indian market growth
Focusing on boosting its innovative capabilities, and with strong operational results recorded, India remains a key focus with healthy growth potential.
In the period January-December 2016, GCPL saw 9% sales growth in the soap sector, as its brand Cinthol achieved market share. The company’s success in this segment has prompted GCPL to implement a selective price portfolio rise, alongside reducing consumer and trade offers.
The hair colour segment also showed sales growth of 13%, with their Godrej Expert Rich Crème brand attaining high market share. As a result, Godrej has created communication campaigns and invested in media strategies and roadmaps to advance penetration and distribution.
“While delivering this robust profitable growth, we have maintained or extended our market shares across most of our categories in our markets. We have also made competitive investments in brand building and innovation for our future growth,” commented Adi Godrej, Chairman, GCPL.
Economic bounceback
Godrej emphasised that following India’s remonetisation landscape, the country is witnessing “a good recovery in FMCG demand in India...we are hopeful that a timely and successful implementation of the transformative Goods & Service Tax (GST) will spur stronger growth for the sector in the second half of fiscal year 2018”.
“We remain excited about the enormous growth potential in India and our other emerging markets, given the low penetration and consumption rates in our core categories,” concluded Godrej.