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Sales growth, lower raw material costs to help Godrej Consumer stock
Aided by high single-digit volume growth, GCPL is expected to post double-digit growth on a consolidated basis. This overall growth is expected to be driven by a robust performance in the India home care business, especially the household insecticides (HI) segment and the Africa geography. In addition to HI, home care includes air care and detergents, accounting for 45 per cent of India's sales and 27 per cent of the consolidated business.
Commenting on the performance of GCPL and other FMCG majors, analysts led by Abneesh Roy of Nuvama Research pointed out that companie.s, except those with large summer categories, are surprising positively, indicating that the worst of the slowdown is behind and a gradual recovery is ahead. For GCPL, the HI segment in India exceeded expectations, with mid-to-high single-digit growth, driven by incense sticks, new electrical formulations, a strong June recovery from new ad campaigns, and favourable weather.
Household insecticides had delivered strong double-digit volume growth in Q4FY25, boosted by a favourable season and effective premiumisation. Goodknight Agarbatti emerged as the market leader, while premium formats, like liquid vapourisers with the new molecule RNF, continued to capture market share, reflecting consumer acceptance and the success of premiumisation efforts.
While home care performed well, personal care (51 per cent of India sales) is expected to grow in the low-single digits during the quarter, affected by the soaps segment, which saw price-volume rebalancing due to commodity volatility. A steep rise in palm oil inflation and price adjustments led to volume decline in the March quarter and compressed margins.
Standalone (India business) operating profit margins are likely to be below the normative range (24 per cent–26 per cent) due to higher input costs, advertising and promotional spend, and delayed pricing action in soaps. Given these pressures, analysts led by Mehul Desai of JM Financial Research expect margin compression of 270 basis points Y-o-Y. With palm oil prices moderating at the end of June, the company expects the gains to flow through to the operating level in the second half of FY26.
In the international business, Indonesia, which accounts for 14 per cent of consolidated sales, is expected to see flat volume growth due to rising competitive pressures. The other parts of the global business, which are grouped under Godrej Africa, USA, and the Middle East, are expected to maintain their growth momentum, delivering double-digit value and volume growth, alongside robust margins.
The company has maintained its guidance of high-single-digit consolidated revenue growth, driven by mid-to-high-single-digit volumes for the standalone business in FY26. The pre-quarter update and the strong near-term outlook are expected to support the stock.
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Business Standard
8 hours ago
- Business Standard
GCPL aims to scale Godrej Fab over 2-fold to hit ₹500 cr revenue in FY26
FMCG firm Godrej Consumer Products Ltd (GCPL) is aiming to scale its liquid detergent business Godrej Fab over two-fold and hit an annual revenue of ₹500 crore in FY26, said its Managing Director and CEO Sudhir Sitapati. Besides, it is also working to deepen its rural presence, premiumise portfolio in household insecticides and other segments, and to build out its new pet care business, said the latest annual report of the company. The Godrej Industries Group's FMCG arm, which entered into the fast-growing liquid detergent segment almost a year ago, has "seen strong early success, and now the goal is to unlock the next level of growth", said Sitapati in the report. "Another key bet is scaling Godrej Fab our liquid detergent to ₹500 crore. This will require sharper distribution, increased trials and more targeted communication," he said. In just over a year, Godrej Fab has hit ₹250 crore in annualised revenue run-rate (ARR), which is a "big win" for GCPL, which entered into main wash detergents, with this brand. "This will likely be a multi-year growth engine and help us build leadership in a large, under-penetrated category," he said. According to Sitapati, FMCG, especially home and personal care (HPC), still has significant runway for volume-led growth. Despite recent macro headwinds, the long-term fundamentals remain strong. Terming FY25 as "a year of learning and some unlearning", Sitapti said in India, GCPL delivered 5 per cent volume growth, which was below expectations, largely due to a sharper-than-anticipated consumption slowdown in the second half. While discussing GCPL's focus in FY26, he said it is betting on products that can drive scale, margin, and future readiness. "One of our top priorities is reshaping the deodorants category. We believe the current MRP and channel architecture in India is structurally broken. 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," said Sitapati. Moreover, GCPL which nearly gets around 40 per cent of its revenue from foreign markets, has also plans to take Indian innovations to global markets. "Aer, Goodknight Liquid Vapourisers and our shampoo hair colour formats are scaling well internationally. We're now designing products with global scale in mind from the start this unlocks synergies and improves return on innovation," he said. Over Godrej Ninja, through which GCPL recently entered into the pet food segment, Sitapati said it has plans to expand the business. "After launching in Tamil Nadu, the next phase will be about refining the model, expanding into new states, and shaping the category through purposeful brand building," he said. By combining expertise of its group firm Godrej Agrovet in animal nutrition with its marketing and innovation capabilities, GCPL aims to address the nutritional needs of Indian pets and establish a trusted brand in the pet care industry, he said. "This initiative aligns with our long-term vision to tap into high-growth, future-forward categories. GCPL remains the complete owner of the business and the brand," Sitapati added. Over its rural expansion, Sitapati said it is expanding Project Vistaar to over 6 lakh rural outlets. "This will deepen rural reach and help us build penetration in our core categories. This is not just a distribution push it is an investment in long-term demand creation," he said. About Park Avenue and Kamasutra, a business which GCPL acquired two years before from Raymond Consumer Care, Sitapati said these "are categories of the future deodorants, perfumes and sexual wellness". Fiscal year 2025 was GCPL's first full year of integration, and it made progress, but faced challenges also. "We entered the year with the ambition to grow this business by 20-25 per cent. We closed the year closer to 10 per cent. This shortfall was shaped by structural realities these categories are still dominated by wholesale trade, deep discounting and fragmented channels," he said. GCPL has taken "decisive steps in the right direction" by rationalising the revenue base by 20 per cent from ₹622 crore to ₹500 crore, and significantly increased ATL (above the line marketing) spends from ₹35 crore to over ₹100 crore.
Time of India
8 hours ago
- Time of India
Godrej Consumer Products aims to scale liquid detergent brand Godrej Fab over 2-fold to hit Rs 500 cr revenue in FY26
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel FMCG firm Godrej Consumer Products Ltd (GCPL) is aiming to scale its liquid detergent business Godrej Fab over two-fold and hit an annual revenue of Rs 500 crore in FY26, said its Managing Director and CEO Sudhir it is also working to deepen its rural presence, premiumise portfolio in household insecticides and other segments, and to build out its new pet care business, said the latest annual report of the Godrej Industries Group 's FMCG arm, which entered into the fast-growing liquid detergent segment almost a year ago, has "seen strong early success, and now the goal is to unlock the next level of growth", said Sitapati in the report."Another key bet is scaling Godrej Fab - our liquid detergent - to Rs 500 crore. This will require sharper distribution, increased trials and more targeted communication," he just over a year, Godrej Fab has hit Rs 250 crore in annualised revenue run-rate (ARR), which is a "big win" for GCPL, which entered into main wash detergents, with this brand."This will likely be a multi-year growth engine and help us build leadership in a large, under-penetrated category," he to Sitapati, FMCG, especially home and personal care (HPC), still has significant runway for volume-led growth. Despite recent macro headwinds, the long-term fundamentals remain FY25 as "a year of learning - and some unlearning", Sitapti said in India, GCPL delivered 5 per cent volume growth, which was below expectations, largely due to a sharper-than-anticipated consumption slowdown in the second discussing GCPL's focus in FY26, he said it is betting on products that can drive scale, margin, and future readiness."One of our top priorities is reshaping the deodorants category . We believe the current MRP and channel architecture in India is structurally broken. 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," said GCPL which nearly gets around 40 per cent of its revenue from foreign markets, has also plans to take Indian innovations to global markets."Aer, Goodknight Liquid Vapourisers and our shampoo hair colour formats are scaling well internationally. We're now designing products with global scale in mind from the start - this unlocks synergies and improves return on innovation," he Godrej Ninja, through which GCPL recently entered into the pet food segment, Sitapati said it has plans to expand the business."After launching in Tamil Nadu, the next phase will be about refining the model, expanding into new states, and shaping the category through purposeful brand building," he combining expertise of its group firm Godrej Agrovet in animal nutrition with its marketing and innovation capabilities, GCPL aims to address the nutritional needs of Indian pets and establish a trusted brand in the pet care industry, he said."This initiative aligns with our long-term vision to tap into high-growth, future-forward categories. GCPL remains the complete owner of the business and the brand," Sitapati its rural expansion , Sitapati said it is expanding Project Vistaar to over 6 lakh rural outlets."This will deepen rural reach and help us build penetration in our core categories. This is not just a distribution push - it is an investment in long-term demand creation," he Park Avenue and Kamasutra, a business which GCPL acquired two years before from Raymond Consumer Care, Sitapati said these "are categories of the future - deodorants, perfumes and sexual wellness".Fiscal year 2025 was GCPL's first full year of integration, and it made progress, but faced challenges also."We entered the year with the ambition to grow this business by 20-25 per cent. We closed the year closer to 10 per cent. This shortfall was shaped by structural realities - these categories are still dominated by wholesale trade, deep discounting and fragmented channels," he has taken "decisive steps in the right direction" by rationalising the revenue base by 20 per cent from Rs 622 crore to Rs 500 crore, and significantly increased ATL (above the line marketing) spends from Rs 35 crore to over Rs 100 crore.
Time of India
a day ago
- Time of India
ETBWS 2025: A new VUCA mindset to lead marketing in age of uncertainty
Marketing must evolve to keep pace with changing consumer expectations . In today's VUCA world (volatile, uncertain, complex and ambiguous), planning long-term strategies is increasingly difficult. With expectations shifting constantly, marketing must adapt in real time. At the 7th edition of the Brand World Summit, organised by ETBrandEquity, a panel of leading CMOs discussed how VUCA has taken on new meaning. Once defined by volatility, uncertainty, complexity and ambiguity, it now stands for versatility, uncomfortable feelings, collaboration and agility – traits they say are critical for modern marketers. The panel featured Ashwin Moorthy, CMO, Godrej Consumer Products; Rohit Bhasin, president and CMO, Kotak Mahindra Bank; Sunder Balasubramanian, CMO, Myntra; Virat Khullar, AVP and vertical head, marketing, Hyundai Motor India; and Milind Pathak, chief corporate marketing officer, Proximus Global. Marketers face the challenge of applying core principles such as cost-efficient acquisition and effective service delivery while navigating a fragmented landscape. 'Media is now splintered by content formats, platforms, and how those platforms function. This fragmentation extends to distribution. Quick commerce has scaled, e-commerce is growing fast, modern trade offers multiple formats, and general trade remains strong. The task is to stay grounded in fundamentals while adapting to multiple business models,' said Moorthy. For Balasubramanian, versatility means evolving with audiences. 'A few years ago, Myntra was seen as a brand for the urban woman. Now we cater to non-metro women too, each with different expectations. The challenge is personalising the experience for all segments while maintaining brand consistency – that is versatility.' Discomfort, the panel said, is a given. 'When AI arrived, I felt genuinely uncomfortable as a marketer. Two things should unsettle every marketer – data use and the shift from creative to performance-driven marketing,' said Bhasin. 'Every CMO must lead the creation of a strong customer data platform with analytics and tech teams. If you are unwilling to learn and implement this, you risk becoming generic.' He added that marketers unwilling to own the full funnel risk being replaced – not by AI, but by those who understand the customer journey better. Pathak said collaboration has replaced complexity as a defining challenge. 'Marketing is perhaps the only team able to take a four- to eight-quarter view. We have formed multi-year partnerships with Microsoft and Infosys, where both sides co-invest in product development and align to meet market needs. Such collaboration drives sustainable growth.' 'While sales and distribution teams focus on today's revenue, marketers must think three or four quarters ahead. Actions taken now that appear in the profit and loss statement a year later are what drive saliency.' He added that future marketers will need to work seamlessly with AI agents, complementing and extending their capabilities. The final trait, agility, has replaced ambiguity. Marketers must update campaigns, retarget loyalty efforts, and adjust communications frequently to match shifting consumer behaviour. 'Take car buyers. Is the decision-maker the father, the mother, or the children who influence the brand and model? Understanding how they consume content is crucial. Are they just scrolling reels, or engaging with material where purchase decisions happen?' said Khullar. 'Cars have long lead times. Agility is vital not only for understanding evolving preferences, but for tracking sentiment, anticipating competitors and responding quickly. Organisations must move faster to market than rivals.' 'Agility is no longer a differentiator, whether you are in FMCG, e-commerce, or a high-involvement category. Consumers are upgrading faster than ever. Agility is not a strategy; it is a way of life – for marketers and for organisations,' Khullar concluded.
