Mumbai-based Godrej Consumer Products Ltd (GCPL) reported good numbers for the quarter ended December 31. GCPL chairman Adi Godrej highlights his priorities for the fourth quarter.
Are you satisfied with the third-quarter results?
Yes. Both domestic and international business grew well this quarter. Growth in net sales of the domestic business was close to 50 per cent, while the international business saw nearly a three-fold growth during the same period.
Our international acquisitions have played a role in helping us register good numbers this quarter. But it will be better in the fourth quarter, as the integration process we began a few months ago gathers steam.
As a percentage of consolidated revenues, our international business constitutes 35 per cent.
We continue to be strong in our key categories of household insecticides, personal wash and hair colour in the country. We hope to maintain the momentum in the fourth quarter, too.
The third quarter saw GCPL making small brand acquisitions in Swastik and Genteel. Will you persist with this strategy?
It makes sense to do it, and we will continue to do more of that, not only in India, but also overseas. The advantage of brand acquisitions is that you are not weighed down by considerations such as people and factories.
These can be easily financed if they are not too large. It is effective when you are looking at filling a gap in your product portfolio or looking to enhance your market share, like we did with Swastik and Genteel.
Are you looking to get some of the products from your international acquisitions into India?
You should see us filling the void left by Ambipur, the erstwhile Sara Lee-owned air freshener, with some products from our Indonesian acquisition, Megasari Makmur. So, yes, we are evaluating what we can get into India from our international range.
Sara Lee has recently agreed to sell its shoecare business internationally to SC Johnson. This means the last of the Sara Lee brands, Kiwi, will be out of your portfolio.
When do you hope to withdraw the brand?
We are yet to be approached by SC Johnson. When they do, they will have to compensate us for the value of the brand in India.
Palm oil prices have spiralled in the last few months. Will you be increasing soap prices soon?
We already took a 3-5 per cent price hike in early this month. Further hikes will be based on how palm oil prices move. We are keeping a close watch on this.
