Godrej Consumer plans price hike, expects strong growth across categories
today Mar 22, 2019
Mumbai-based consumer goods company Godrej Consumer Products Ltd (GCPL) is planning to modify prices for its products for some of its categories due to inflation and deflation of prices across categories.
High raw materials coupled with currency depreciation is taking a toll on the overall revenue of the company which is why a price hike is likely to take place in the coming months.
GCPL’s profit for the third quarter ended December 2018 dipped 1.48 percent to Rs 424 crore ($59.6 million) as against Rs 430 crore it had reported in the corresponding quarter last fiscal.
"In some categories, there are definitely some inflationary trends that we have seen, whereas there is some deflation in some categories. We will play it more category wise in the next few quarters and make some selective choices in terms of prices," Sunil Kataria, CEO of GCPL told Moneycontrol.
The company is also looking to strengthen its soaps, hair care and premium segment for future growth in the Indian market.
“The soap segment has always been a competitive category despite 100 percent penetration. There is enough scope for growth and the company’s focus will be to penetrate into regional markets going forward. GCPL has been a pioneer in disrupting the hair colour category and will continue to grow strongly in this segment by upgrading the consumers,” Kataria added.
Sharing the company’s plans for its premium brand, Bblunt, Kataria said, "Bblunt is a niche business for us. It aims the premium segment and it’s a brand where we are invested in for the long term. It has a huge amount of e-commerce focus so we will shift to the entire product range to e-commerce property.”
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