Overview

Godrej Consumer Products (NSE:GODREJCP) is a part of the over 123-year-young Godrej Group. Godrej Consumer is fortunate to have a proud legacy built on the strong values of trust, integrity, and respect for others. As an emerging market company, Godrej Consumer has witnessed rapid growth and are pursuing its exciting and innovative aspirations.¹

Today, its Group enjoys the patronage of 1.15 billion consumers globally, across different businesses. In line with its 3 by 3 approach to international expansion, Godrej Consumer is building its presence in three emerging markets, namely Asia, Africa, and Latin America, across three categories (home care, personal care, and hair care).

The company rank among the largest household insecticide and hair care players in the emerging markets. In household insecticides, Godrej Consumer is the leader in India and Indonesia and are expanding its footprint in Africa. Godrej Consumer is the leader in serving the hair care needs of women of African descent and are the number one player in hair colour products in India and sub-Saharan Africa, and among the leading players in Latin America. The company rank second in soap products in India, first in air freshener products in India and Indonesia, and lead in wet tissue product in Indonesia.

But for it, it is very important that besides its strong financial performance and innovative, much-loved products, the company remain a good company. Approximately 23 per cent of the promoter holding in the Godrej Group is held in trusts that invest in the environment, health, and education. Godrej Consumer is also bringing together its passion and purpose to make a difference through its Good & Green approach to build a more inclusive and greener India.

At the heart of it all is its talented team. The company take much pride in fostering an inspiring workplace with an agile and high-performing culture. Godrej Consumer is also deeply committed to recognising and valuing diversity across its teams.

Plant Locations

The Company’s plants are located in the following states:

Brands

Delighting 1.15 billion consumers across Asia, Africa and Latin America²

• Goodknight
• Godrejexpert
• Darlingafrica
• Saniter
• Inecto
• Godrejaer
• Godrejhit
• Hitexpert
• Megagrowth
• Godrejezee
• Godrejno1
• Cinthol
• Ilicit
• Issuecolor
• Godrej protekt
• Bblunt
• Godrejnupur
• Godrejprofessional
• Tcbnaturals
• Renewhair
• Justformehair
• Robystyling
• Pamelagrant
• Villeneuveproteccion
• Millefiori
• Africanpridehair
• stella-airfreshener
• Mitubabycare
• Nyubeauty
• Puresthygiene
• Goodnessme

A broad emerging markets portfolio

In fiscal year 2010, 23 per cent of its overall revenues were derived from international businesses. In fiscal year 2020, it is 46 per cent, with Indonesia and Africa accounting for 41 per cent.

A focused approach to category choices

Godrej Consumer has moved from an over 50 per cent soaps portfolio in 2010 to a more balanced and strategic category portfolio. Today, Godrej Consumer has three core categories, namely household insecticides, personal wash, and hair care. Godrej Consumer has entered into a new category to serve the hair care needs of African women. Air care, which the company forayed into a few years ago in India, has now become the fourth global category for it.

Globalisation Strategy

The company's globalisation strategy (named ‘3 by 3’) has been very deliberate. Guided by this, over the last decade, Godrej Consumer has created significant value through M&A and established strong beachheads in three categories (home care, hair care, and personal care) in three emerging geographies (Asia, Africa, and Latin America).

India and SAARC

Range of home care and personal care products, household insecticides, hair colour, liquid detergents, soaps, and air fresheners

#1 Household insecticides

#1 Hair colour

#1 Air fresheners

#2 Soaps

Sub-Saharan Africa and USA

Range of products across hair extensions, hair care, hair colour, personal wash, home care, and household insecticides

#1 Ethnic hair colour (sub-Saharan Africa)

#1 Hair extensions (sub-Saharan Africa)

#1 Hair relaxers (sub-Saharan Africa)

#3 Caucasian hair colour (South Africa)

Leader in wet hair care (USA)

Indonesia

Range of household and personal care products – household insecticides, air fresheners, hair colour, and wet wipes

#1 Household insecticides

#1 Air fresheners

#1 Wet wipes

Latin America

Range of hair colour, hair care, depilatory products, and colour cosmetics

#1 Hair colour (Argentina)

#1 Depilatory products (Chile)

#1 Hair fixing sprays (Argentina)

#2 Hair styling products (Argentina)

Financial Highlights

On November 5, 2020 Godrej Consumer reports its Q2 FY21 result ³

Godrej Consumer Products' consolidated net profit jumped 10.66% to Rs 458.02 crore on 10.83% rise in total revenue from operations to Rs 2,915.12 crore in Q2 September 2020 over Q2 September 2019.

Consolidated profit before tax (PBT) surged 22.24% to Rs 604.32 crore in Q2 September 2020 as against Rs 494.36 crore in Q2 September 2019. Current tax expense for the quarter jumped 35.85% to Rs 117.23 crore as against Rs 86.29 crore in Q2 September 2019.

Q2FY21 consolidated EBITDA grew by 19% year-on-year and consolidated EBIDTA margins expanded to 23.7%. The Q2 result was declared during trading hours today, 5 November 2020.

Indonesia sales grew by 5% in INR and 3% in constant currency terms, year-on-year. Africa, USA and Middle East sales grew by 10% in INR and constant currency terms, year-on-year. Latin America & SAARC sales grew by 41% in INR and 46% in constant currency terms, year-on-year.

Q2 FY21 India sales grew 11% Y-o-Y (year-on-year) to Rs 1,650 crore as against Q2 FY20. Volumes rose 5% Y-o-Y during the period under review. Q2 FY21 EBITDA grew 17% Y-o-Y to Rs 460 crore.

Commenting on the Q2 FY21 business performance, Nisaba Godrej, the chairperson and managing director (MD) of Godrej Consumer Products (GCPL), says: "The company delivered a strong performance this quarter with double-digit, profitable sales growth. Consolidated sales grew by 11% and EBITDA grew by 19%. All its geographic clusters also recorded positive sales growth. From a category sales perspective, Household Insecticides, Hygiene and Value for Money (which contributed to 83% of its global portfolio) grew by 17%. Household Insecticides grew by 6%, Hygiene grew by 27% and Value for Money grew by 22%."

"From a geography sales perspective, India grew at 11%. The company's Africa, USA and Middle East business showed robust recovery, growing at 10% in both constant currency and Rs terms. The company's Indonesian business delivered a soft performance, growing at 3% in constant currency and 5% in Rs terms."

"Going forward, the company will continue to focus its efforts where the demand is - in Household Insecticides, Hygiene, and Value for Money. Godrej Consumer is ramping up innovation and have launched several new products, strongly price-enabled, across geographies. Across channels too, Godrej Consumer is making a shift; doubling down on digitisation and platforms like e-commerce and chemists. Godrej Consumer is also strengthening its supply chain operations and distribution. Overall, the situation Godrej Consumer is in calls for an extraordinary level of agility and resilience. I am extremely proud of its team for bringing out the best in themselves to push onwards at this difficult time."

References

1. ^ https://www.bseindia.com/bseplus/AnnualReport/532424/5324240320.pdf
2. ^ https://www.godrejcp.com/brands/brands-with-purpose
3. ^ https://www.business-standard.com/article/news-cm/godrej-consumer-q2-pat-climbs-11-to-rs-458-cr-120110501203_1.html