Godrej Consumer Products Ltd (GCPL) has announced a capital expenditure plan of ₹700 crore over the next two years to support its domestic and international manufacturing operations. The investment will be directed towards expanding production lines at newly established facilities in South and North India, as well as setting up a new manufacturing unit in Indonesia.
According to Sudhir Sitapati, Managing Director and CEO, the company expects a revival in domestic consumer demand over the next 12 to 18 months. This optimism is based on factors including the reversal of the El Niño effect, declining food inflation between January and March, income tax reductions, government welfare initiatives, and the upcoming pay commission implementation—all expected to drive growth in the fast-moving consumer goods (FMCG) sector.
GCPL reported a net profit of ₹411 crore for the quarter ended March 31, with a 6.26% year-on-year increase in revenue. However, a sharp rise in palm oil prices—over 50% during the quarter—pressured margins, prompting the company to implement a calibrated price increase of approximately 15–16%.
Despite this cost pressure, GCPL anticipates double-digit EBITDA growth going forward. The company also expects mid-to-high single-digit volume growth on a standalone basis and high single-digit growth in consolidated revenue.
GCPL highlighted the rapid growth of its quick commerce channel, which has become a significant contributor to sales. This platform is particularly effective in distributing mid-sized product packs—a category with relatively higher margins. Sitapati noted that the structured format and limited inventory model of quick commerce make it an attractive and efficient channel for FMCG distribution.
Part of the 125-year-old Godrej Group, GCPL is a leading FMCG company with a strong presence in emerging markets such as India, Indonesia, and Africa. The company is a market leader in household insecticides, air care, and hair care in these regions, as well as a significant player in soaps, hair color, and other personal care categories.
Beyond financial success and innovative products, GCPL prioritizes social impact through its “Good & Green” initiative, aimed at creating a more inclusive and sustainable future. Nearly 23% of the promoter holdings are invested in trusts focused on education, health, and environmental causes. At its core, GCPL fosters a diverse, high-performing workforce, emphasizing values of trust, respect, and integrity, while driving positive change across global markets.
