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Tag: Adi Godrej

  • Adi Godrej steps down from GPCL board

    Adi Godrej steps down from GPCL board

    Mumbai: FMCG major Godrej Consumer Products Ltd (GCPL) on Wednesday announced that Adi Godrej will step down from the board of directors of the company, effective 30 September. He will continue to remain chairman emeritus of the company.

    “It has been a privilege to serve Godrej Consumer Products. I am grateful to our Board for their continued guidance; to all our team members for their passion for Godrej and helping build a company that we can all be proud of; and to our customers, business partners, shareholders, investors, and communities, for their deep partnership over the years,” he said. 

    Adi Godrej further said that the company’s foundations are very strong. “I am very confident that Nisa and our leadership team will continue to build forward and create even more sustainable, long-term value for all our stakeholders,” he added.

    In 2017, Adi Godrej passed on the reins of the company to his daughter Nisaba. He had then moved on to the role of chairman emeritus of the company.

    Nisaba Godrej thanked her father for his vision and guidance that has helped shape and transform GCPL. The GCPL chairperson and MD added, “The values that he has taught us, combined with his disciplined, results-driven, and humble approach, will always be the core of our DNA. Our leadership team will continue to draw from this as we drive Godrej Consumer Products forward with a strong sense of purpose and ambition.”

    The company also announced its CFO succession plan. Sameer Shah, GPCL’s current head of finance and investor relations has been promoted to the role of chief financial officer (CFO) of the company, effective 1 September. Shah succeeds V Srinivasan who has moved on as CFO and company secretary to pursue opportunities outside Godrej.

    Shah has been associated with GCPL for 15 years. He has held a number of key leadership roles including as CFO of GPCL’s largest business, the India & SAARC cluster. He has also led diverse priorities across its global portfolio – investor relations, financial controlling, ERP implementation, global financial planning and analytics, and integrating inorganic businesses like Africa.

    A chartered accountant by profession, Shah has specialised in Treasury Management from The Institute of Chartered Financial Analysts. Before joining GCPL, Shah worked at PepsiCo and General Mills.

  • Godrej Appliances urges citizens to join the ‘India vs e-waste’ battle

    Godrej Appliances urges citizens to join the ‘India vs e-waste’ battle

    MUMBAI: L’Affaire, an annual lifestyle event of Godrej, turned into a completely green event in its just concluded fourth season, witnessing more than 1300 people including several prominent personalities, influencers, members of the media fraternity, corporates, television and film celebrities.

    Godrej Appliances used the occasion to draw attention to the rising e-waste menace – India is the fifth largest e-waste generating nation, as per global e-waste monitor 2017. It did so, by unveiling a life-size installation made of e-waste material like electrical components and parts, cables, compressors, chargers, circuits etc. The creation, titled #TheNonThinkingHuman as a spin on the famous statue of ‘The Thinker’ and the concept of the ‘Thinking Man’, depicted the modern man/woman, who is not mindful of the number of electronics and appliances that he/she consumes and disposes off irresponsibly, without thinking about its harmful effects on the environment. The installation encouraged the philosophy of ‘reduce, reuse and recycle’.

    Godrej Group chairman Adi Godrej along with Godrej Group executive director Tanya Dubash extended their support to the e-waste awareness program.

    Godrej Group executive director Tanya Dubash further added, “The concept of green is ingrained in the DNA of the brand, Godrej, in fact this edition of L’affaire was entirely designed around sustainability. The brand believes in leveraging all opportunities to connect with the community and share thought provoking ideas. One such attempt is the installation by Godrej Appliances #TheNonThinkingHuman, crafted to emphasize that in today’s technology led world, we need to be mindful in our purchases and even more so in the way we dispose off our products at the end of their life, true to the concept of being part of a ‘circular economy."

    Godrej Appliances business head and executive vice president Kamal Nandi commented, “As a responsible and environmentally conscious brand, Godrej Appliances has been developing and promoting green products and green manufacturing for quite some time. We are taking the conversation further to address e-waste awareness as a natural extension. On this account, we urge everyone to be mindful when buying appliances and electronics and most importantly, at the end of the product’s life cycle, to be careful and dispose off e-waste responsibly. We are also offering them an easy mechanism of just calling the Godrej toll free number 1800 209 5511 to schedule a pick up for their old appliance.”

    Among others, popular Bollywood actor Bhumi Pednekar was also a part of the lifestyle event. Bhumi, who is very proud of her ‘climate warrior’ tag urged people to join in the fight against e-waste by calling the Godrej Appliances toll free number. She was joined by many other celebrities like Shweta Nanda Bachhan, chef Varun Inamdar, popular RJ Hrishi K  who extended support to the green cause. 

  • Q3-2016: Godrej Consumer Products marketing spend up 15%

    Q3-2016: Godrej Consumer Products marketing spend up 15%

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported 15.1 per cent year-on-year (YoY) growth in advertisement and publicity expenses (Ad, marketing) in Q3-2016 (quarter ended 31 December, 2015, current quarter) at Rs 250.69 crore (10.6 per cent of net Total Income from Operations or TIO) as compared to Rs 217.89 crore (9.7 per cent of TIO), but 1.3 per cent lower quarter-on-quarter (QoQ) than Rs 253.99 crore (11.3 per cent of TIO).

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

    Godrej group chairman Adi Godrej said, “In a challenging operating environment, we have delivered a resilient and competitive performance in Q3-2016. Our consolidated organic constant currency sales growth of nine per cent and EBITDA growth of 19 per cent are well ahead of the market growth. Our India business sustained its volume growth leadership with a growth of nine per cent. Our international business too delivered healthy performance, with an organic constant currency sales growth of nine per cent. Operating earnings growth was ahead of sales growth across most of our geographies, aided by lower commodity costs, calibrated price hikes, stringent cost management and the effective leveraging of brand platforms.”

    “While the pace of economic recovery is slower than anticipated, we are hopeful of continuing our relative outperformance in the quarters ahead. Over the next few quarters, we will be introducing several exciting new launches to stimulate demand and extend leadership in our core categories. We are also enhancing our go-to-market infrastructure and investing strategically for the future. Overall, we expect our focus on innovation, distribution initiatives and superior on-ground execution to aid growth ahead of the market. The medium and long-term growth prospects in India and our other emerging markets remain robust. We believe that there is still a lot of headroom for growth across these markets, given the low penetration and consumption rates in our core categories. I am confident that with our clear strategic focus, differentiated product portfolio, superior execution and top-notch team, we will continue to deliver industry-leading results in the future,” concluded Godrej.

    Trends

    Please refer to Fig A below. GCPL’s Q2-2016 ad spends mentioned above were the highest in absolute rupees during the 15 quarter period starting Q1-2013 until Q3-2016 in this report. Its highest ad spend in terms of percentage of TIO was in Q1-2014 at 13.8 per cent (Rs 239.06 crore). During the period under consideration in this report, its lowest ad spends both in absolute rupees and in terms of percentage of TIO was in Q2-2014 at Rs 145.78 crore and 7.5 per cent. It must be noted that in the nine month period ended 31 December, 2016 (9M-2016), the company has spent Rs 755.80 crore towards marketing expenses as compared to Rs 679.78 crore in 9M-2015, Rs 687.19 crore in 9M-2014 and Rs 486.09 crore in 9M-2013.

    During the period under consideration in this report, ad spends in terms of absolute rupees and percentage of TIO shows a linear increasing trend as indicated by the broken blue and maroon trend lines in Fig A below.

    GCPL reported 5.4 per cent YoY growth in TIO in Q3-2016 at Rs 2,356.15 crore as compared to Rs 2,235.71 core and five per cent higher QoQ as compared to Rs 2,244.94 crore. During the 15 quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line.

    Profit after tax (PAT) in Q3-2016 at Rs 322.95 crore (13.7 per cent margin) was 22.5 per cent higher YoY as compared to 263.57 crore (11.8 per cent margin) and 12.5 per cent higher QoQ as compared to Rs 287.16 crore (12.8 per cent margin). During the 15 quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

    Category review by GPCL

    Household Insecticides

    Household Insecticides sustained its double-digit volume growth momentum with a sales growth of 15 per cent. The company attributes growth to the success of its new launches, effective communication and superior on-ground execution. GCPL says that it has consistently gained market share across formats and ended the quarter with its highest ever market share. Good Knight continues to lead category penetration and drive market development initiatives

    Soaps

    GCPL’s Soaps business maintained its robust mid-single digit volume growth in a highly competitive environment. This was offset by deflationary pressures, resulting in a value growth of two per cent. As part of its focus to premiumise its portfolio, GPCL launched Godrej No. 1 Nature Soft – Glycerin & Honey variant in the winter soap space. It says that its premium soap brand Cinthol continues to lead volume and value growth. GPCL claims that it remains competitive on sales promotion investments, in a low commodity cost environment.

    Hair Colours

    The sales of Hair Colours declined by one per cent in Q3-2016. While Godrej Expert Rich Crème recorded a growth in the high teens, powder hair colour growth declined due to channel de-stocking. This was caused by up-stocking towards the end of the previous quarter, ahead of price hikes and a decline in value growth due to price-off trade offers. Godrej Expert Rich Crème continues to gain market share and lead distribution reach and household penetration in the crème category. GCPL introduced Godrej Expert Rich Crème in a multi-application pack priced at Rs 120 and also launched a new advertisement campaign.

    Liquid Detergents

    Liquid Detergents delivered a double-digit, volume driven sales growth of 11 per cent, despite the late onset of the winter. During the quarter, GCPL restaged our Ezee brand with a newly designed bottle. New insight driven communication was also launched to drive brand relevance and penetration.

    Air Fresheners

    Godrej Aer continues to perform well, aided by innovative product offerings and various consumer engagement initiatives. GPCL says that it has continued to gain market share and Aer is now the number one player in the home sprays air care market (on an exit market share basis). It recently launched Aer pocket, which targets the bathroom air care segment.

    Health and Wellness

    The company says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej Protekt, has been successfully introduced in the general trade. The initial response has been encouraging.

    Premium Hair Care

    BBLUNT, GCPL’s range of premium hair care products, has been launched in modern trade and premium general trade outlets.

  • Q3-2016: Godrej Consumer Products marketing spend up 15%

    Q3-2016: Godrej Consumer Products marketing spend up 15%

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported 15.1 per cent year-on-year (YoY) growth in advertisement and publicity expenses (Ad, marketing) in Q3-2016 (quarter ended 31 December, 2015, current quarter) at Rs 250.69 crore (10.6 per cent of net Total Income from Operations or TIO) as compared to Rs 217.89 crore (9.7 per cent of TIO), but 1.3 per cent lower quarter-on-quarter (QoQ) than Rs 253.99 crore (11.3 per cent of TIO).

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

    Godrej group chairman Adi Godrej said, “In a challenging operating environment, we have delivered a resilient and competitive performance in Q3-2016. Our consolidated organic constant currency sales growth of nine per cent and EBITDA growth of 19 per cent are well ahead of the market growth. Our India business sustained its volume growth leadership with a growth of nine per cent. Our international business too delivered healthy performance, with an organic constant currency sales growth of nine per cent. Operating earnings growth was ahead of sales growth across most of our geographies, aided by lower commodity costs, calibrated price hikes, stringent cost management and the effective leveraging of brand platforms.”

    “While the pace of economic recovery is slower than anticipated, we are hopeful of continuing our relative outperformance in the quarters ahead. Over the next few quarters, we will be introducing several exciting new launches to stimulate demand and extend leadership in our core categories. We are also enhancing our go-to-market infrastructure and investing strategically for the future. Overall, we expect our focus on innovation, distribution initiatives and superior on-ground execution to aid growth ahead of the market. The medium and long-term growth prospects in India and our other emerging markets remain robust. We believe that there is still a lot of headroom for growth across these markets, given the low penetration and consumption rates in our core categories. I am confident that with our clear strategic focus, differentiated product portfolio, superior execution and top-notch team, we will continue to deliver industry-leading results in the future,” concluded Godrej.

    Trends

    Please refer to Fig A below. GCPL’s Q2-2016 ad spends mentioned above were the highest in absolute rupees during the 15 quarter period starting Q1-2013 until Q3-2016 in this report. Its highest ad spend in terms of percentage of TIO was in Q1-2014 at 13.8 per cent (Rs 239.06 crore). During the period under consideration in this report, its lowest ad spends both in absolute rupees and in terms of percentage of TIO was in Q2-2014 at Rs 145.78 crore and 7.5 per cent. It must be noted that in the nine month period ended 31 December, 2016 (9M-2016), the company has spent Rs 755.80 crore towards marketing expenses as compared to Rs 679.78 crore in 9M-2015, Rs 687.19 crore in 9M-2014 and Rs 486.09 crore in 9M-2013.

    During the period under consideration in this report, ad spends in terms of absolute rupees and percentage of TIO shows a linear increasing trend as indicated by the broken blue and maroon trend lines in Fig A below.

    GCPL reported 5.4 per cent YoY growth in TIO in Q3-2016 at Rs 2,356.15 crore as compared to Rs 2,235.71 core and five per cent higher QoQ as compared to Rs 2,244.94 crore. During the 15 quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line.

    Profit after tax (PAT) in Q3-2016 at Rs 322.95 crore (13.7 per cent margin) was 22.5 per cent higher YoY as compared to 263.57 crore (11.8 per cent margin) and 12.5 per cent higher QoQ as compared to Rs 287.16 crore (12.8 per cent margin). During the 15 quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

    Category review by GPCL

    Household Insecticides

    Household Insecticides sustained its double-digit volume growth momentum with a sales growth of 15 per cent. The company attributes growth to the success of its new launches, effective communication and superior on-ground execution. GCPL says that it has consistently gained market share across formats and ended the quarter with its highest ever market share. Good Knight continues to lead category penetration and drive market development initiatives

    Soaps

    GCPL’s Soaps business maintained its robust mid-single digit volume growth in a highly competitive environment. This was offset by deflationary pressures, resulting in a value growth of two per cent. As part of its focus to premiumise its portfolio, GPCL launched Godrej No. 1 Nature Soft – Glycerin & Honey variant in the winter soap space. It says that its premium soap brand Cinthol continues to lead volume and value growth. GPCL claims that it remains competitive on sales promotion investments, in a low commodity cost environment.

    Hair Colours

    The sales of Hair Colours declined by one per cent in Q3-2016. While Godrej Expert Rich Crème recorded a growth in the high teens, powder hair colour growth declined due to channel de-stocking. This was caused by up-stocking towards the end of the previous quarter, ahead of price hikes and a decline in value growth due to price-off trade offers. Godrej Expert Rich Crème continues to gain market share and lead distribution reach and household penetration in the crème category. GCPL introduced Godrej Expert Rich Crème in a multi-application pack priced at Rs 120 and also launched a new advertisement campaign.

    Liquid Detergents

    Liquid Detergents delivered a double-digit, volume driven sales growth of 11 per cent, despite the late onset of the winter. During the quarter, GCPL restaged our Ezee brand with a newly designed bottle. New insight driven communication was also launched to drive brand relevance and penetration.

    Air Fresheners

    Godrej Aer continues to perform well, aided by innovative product offerings and various consumer engagement initiatives. GPCL says that it has continued to gain market share and Aer is now the number one player in the home sprays air care market (on an exit market share basis). It recently launched Aer pocket, which targets the bathroom air care segment.

    Health and Wellness

    The company says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej Protekt, has been successfully introduced in the general trade. The initial response has been encouraging.

    Premium Hair Care

    BBLUNT, GCPL’s range of premium hair care products, has been launched in modern trade and premium general trade outlets.

  • Q2-2016: Godrej Consumer Products marketing spend up 20 percent

    Q2-2016: Godrej Consumer Products marketing spend up 20 percent

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported 20 percent year on year (YoY) growth in  advertisement and publicity expenses (Ad) in Q2-2016 (quarter ended September 30, 2015, current quarter) at Rs 253.99 crore (11.3 percent of net Total Income from Operations or TIO) as compared to Rs 211.69 crore (10.3 percent of TIO). The current quarter’s Ad spend was 1.1 percent higher QoQ as compared to Rs 251.12 crore (12 percent of TIO). In Q4-2015, the company in its earnings release had said that its household insecticides brand ‘Good Knight’   crossed the Rs 1500 crore mark and amongst GPCL’s soap brands, Godrej No. 1 crossed the Rs 1,000 crore and Cinthol, the Rs 500 crore milestone.

     

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

     

    Godrej group chairman Adi Godrej said, “We have grown ahead of the market and gained share in our core categories, aided by our continued focus on innovations, competitive marketing investments and strong on-ground execution. Our India business branded net sales grew by 10 percent, driven by a healthy volume growth of 9 percent. This competitive performance was delivered despite the softness in rural demand and a deficient monsoon.”

     

    “We remain optimistic that as the economy improves, the FMCG sector should see a gradual uptick in demand. We are launching exciting new products and investing in several distribution initiatives. We will also continue to manage our costs prudently in the near term, while investing for the future,” added Godrej.

     

    Trends

     

    Please refer to Fig A below. GCPL’s Q2-2016 Ad spends mentioned above was the highest in absolute rupees during the 14 quarter period starting Q1-2013 until Q2-2016 in this report. Its highest Ad spend in terms of percentage of TIO was in Q1-2014 at 13.8 percent (Rs 239.06 crore). During the period under consideration in this report, its lowest Ad spends both in absolute rupees and in terms of percentage of TIO was in Q2-2014 at Rs 145.78 crore and 7.5 percent.

     

    During the period under consideration in this report, Ad spends in terms of absolute rupees and percentage of TIO shows a linear increasing trend as indicated by the broken blue and maroon trend lines in Fig A below.

     

     

    GCPL reported 9 percent YoY growth in TIO in Q2-2016 at Rs 2244.94 crore as compared to Rs 2060.12 crore and 7 percent QoQ growth as compared to Rs 2097.66 crore. During the fourteen quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line.

     

    Profit after tax (PAT) in Q2-2016 at Rs 287.16 crore was 22.4 percent higher YoY as compared to Rs 234.53 crore (11.4 percent of TIO) and was 44.1 percent higher QoQ as compared to Rs 199.23 crore (9.5 percent of TIO). During the fourteen quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

     

     

    Category review by GPCL

     

    Household Insecticides

     

    GPCL says that its Household Insecticides maintained its strong performance despite the deficient monsoon, with a double-digit volume-led sales growth of 13 percent. The company says that Good knight has significantly improved the overall category penetration, especially in rural areas. This has been led by superior on-ground execution, effective communication and the success of innovative launches such Good knight Fast Card, Good knight Xpress and Neem Low Smoke Coil. GPCL claims to have consistently gained market share across formats and ended the quarter with our highest ever market share. GPCL launched an innovative ‘Subah Bolo Good knight’ campaign to create awareness on dengue, and to increase daytime usage and consumption. The company says that gross margins continue to benefit from lower crude oil prices and have improved significantly.

     

    Soaps

     

    The company says its Soaps business delivered a competitive performance with robust mid-single digit volume growth. This was partially offset by deflationary pressures, resulting in a value growth of 3 percent. GPCL says that it continues to remain competitive on sales promotion investments to gain market share. GPCL’s premium soaps brand, Cinthol, continued to lead overall value and volume growth, driven by distribution expansion and effective communication.

     

    Hair Colours

     

    The growth momentum in Hair Colours accelerated with a sales growth of 17 percent, aided by a double-digit volume growth. The company says that Godrej Expert Rich Cr?me sustained its strong growth, led by continued initiatives such as festival linked campaigns, large scale activations, salon engagement programmes, etc. The initial consumer response to the launch of Godrej Nupur Coconut Henna Cr?me has been encouraging.

     

    Air Fresheners

     

    Godrej aer, GPCL’s air freshener brand, continued its strong sales and distribution ramp up. This has been aided by the company’s innovative gel format technology and various consumer engagement initiatives. Godrej aer is now the number three player in the Air Care market, says GPCL.

     

    Health and Wellness

     

    GPCL’s  says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej Protekt, continued to be well received in modern trade. Buoyed by its success in modern trade, GPCL says that it is introducing Godrej Protekt portfolio in general trade on a pan-India basis.

     

    Premium Hair Care

    GPCL has launched BBlunt range of premium hair care products in modern trade and premium general trade outlets.

  • Q1-2016: Godrej Consumer Products y-o-y marketing spend flat at Rs 251 crore

    Q1-2016: Godrej Consumer Products y-o-y marketing spend flat at Rs 251 crore

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported almost flat (0.4 per cent increment) advertisement and publicity expenses in Q1-2016 (quarter ended June 31, 2015) at Rs 251.12 crore (12 per cent of net Total Income from Operations or TIO) as compared to the Rs 250.20 crore (13.2 per cent of TIO) in Q1-2015. GCPL’s ad spends in Q1-2016 was 9.1 per cent more than the Rs 230.18 crore (11 per cent of TIO) in the immediate trailing quarter. Last quarter (Q4-2015), the company in its earnings release said that its household insecticides brand Good Knight crossed the Rs 1500 crore mark and amongst GPCL’s soap brands, Godrej No. 1 crossed the Rs 1,000 crore and Cinthol, the Rs 500 crore milestone.

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

    Godrej group chairman Adi Godrej said, “We have had an encouraging start to FY-2016 and have delivered strong volume led growth coupled with robust profit growth. We continue to grow ahead of the market gaining share across our key categories and geographies. We continued to strengthen our leadership position across our core categories. In the first quarter, our India business branded net sales grew by 13 per cent. This was driven by a healthy volume growth of 13 per cent. Our international business (in organic constant currency terms) too grew by 13 per cent, despite the macro challenges and slowdown in a few of our larger markets. Our consolidated EBITDA (in organic constant currency terms) grew by 32 per cent. This was aided by lower commodity costs, the impact of our cost transformation programs and effective leveraging of our brand platforms.”

    “We are seeing early signs of consumer demand picking up in India. We remain optimistic that as the economy continues to gain pace, the growth in the FMCG sector this year will be better than last year. Though the macro-economic environment in some of our international markets remains challenging, we are confident of delivering ahead ofmarket, profitable growth in these geographies. We will accelerate the pace of new launches and enhance our go to market infrastructure. We will also continue to manage our costs prudently in the near term, while investing for the future. Overall, we will strive to deliver a stronger operating performance in fiscal year 2016,” he added.

    The medium and long-term growth prospects in India and our other emerging markets remain robust. We believe that there is still a lot of headroom for growth across these markets, given the low penetration and consumption rates in our core categories. I am confident that with our clear strategic focus, differentiated product portfolio, superiorexecution and top-notch team, we will continue to deliver industry-leading results in the future,” he said.

    Trends

    Please refer to Fig A below. GCPL’s Q1-2016 Ad spends mentioned above was the highest in absolute rupees during the 13 quarter period starting Q1-2013 until Q1-2016. Its highest Ad spend in terms of percentage of TIO was in Q1-2014 at 13.8 per cent (Rs 239.06 crore). During the period under consideration in this report, its lowest Ad spends both in absolute rupees and in terms of percentage of TIO was in Q2-2014 at Rs 145.78 crore and 7.5 per cent. 

    During the period under consideration in this report, Ad spends in terms of absolute rupees and percentage of TIO shows a linear increasing trend as indicated by the broken blue and maroon trend lines in Fig A below.

    GCPL reported 11.1 per cent growth in TIO in Q1-2016 at Rs 2097.66 crore as compared to the Rs 1888.51 crore in Q1-2015 and almost flat (0.3 per cent more) than the Rs 2092.02 crore in Q4-2015. During the thirteen quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line. 

    Profit after tax (PAT) in Q1-2016 at Rs 199.23 crore (9.5 per cent of TIO) was 38.9 per cent more than the Rs 143.45 crore (7.6 per cent of TIO) in Q1-2015 but was 25 per cent less than the Rs 265.57 crore (12.7 per cent of TIO) in the immediate preceding quarter. During the thirteen quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

    Category review by GPCL

    Household Insecticides

    The company says that its Household Insecticides continued to deliver a strong performance, with a double-digit, volume-led sales growth of 15 per cent. This was aided by the success of new launches and deeper penetration. GPCL’s focus on innovation, backed by superior execution, resulted in market share gains across formats. The company says that it recorded its highest ever overall market share this quarter. Gross margins benefited from lower crude oil prices and have improved significantly.

    Soaps

    GPCL’s says that its Soaps business sustained its healthy momentum, with a double-digit volume and mix driven sales growth of 13 per cent. Cinthol’s strategy of focusing on functional benefits in the premium segment, supported by 360-degree activations, delivered encouraging results. Godrej No. 1 continued its positive momentum, led by its re-launch and new positioning as ‘India’s No.1 purest soap’. Gross margins during the quarter benefited from lower palm oil prices and have improved significantly.

    Hair Colours

    The company says that its Hair Colours delivered a consistent, double-digit, volume driven sales growth of 12 per cent. Godrej Expert Rich Cr?me continued to gain market share due to increased penetration.Nupur Coconut Henna Cr?me, launched this quarter, has been introduced to address the demand from herbal-based powder users and up-trade existing hair colour users.

    Air Fresheners

    GPCL says that Godrej aer, its air freshener brand continues its strong sales and distribution ramp up. This has been aided by innovative gel format technology and various consumer engagement initiatives. aer is now the number three player in the air care market. The company says that it continues to focus on increasing distribution and driving consumption.

    Health and Wellness

    The company claims that its Health and Wellness portfolio of hand washes, a hand sanitiser and anti-mosquito spray, under Godrej Protekt, continues to be well received in modern trade.

  • FY-2015: Godrej Consumer Products marketing expense up 9.2%; Good Knight is Rs 1500 crore brand

    FY-2015: Godrej Consumer Products marketing expense up 9.2%; Good Knight is Rs 1500 crore brand

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported a 9.2 per cent increment in advertisement and publicity expenses (ad) in FY-2015 (year ended 31 March, 2015) at Rs 909.96 crore (11 per cent of net Total Income from Operations or TIO) as compared to the Rs 832.97 crore (11 per cent of TIO) last year. The company in its earnings release says that its household insecticides brand ‘Good Knight’ has crossed the Rs 1500 crore mark. Further, amongst GPCL’s soap brands, Godrej No. 1 has crossed the Rs 1,000 crore and Cinthol, the Rs 500 crore milestone.

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

    Godrej group chairman Adi Godrej said, “Our performance in the second half of fiscal year 2015 has been much better than that in the first half. Our strong performance is on the back of a gradual recovery we are seeing in FMCG growth in India, aided by our continued focus on innovations and brand building, and supported by competitive marketing investments and enhancements in our go-to-market infrastructure. We have continued to consistently grow ahead of the market and have gained share in our core categories.”

    “Our India branded net sales grew by 12 per cent led by volume growth of around eight per cent. Our international business grew by a healthy 14 per cent (in constant currency terms), in spite of the temporary challenges in our Indonesian business.In this quarter, we also increased our marketing investments significantly to capitalise on the recovery seen in the Indian FMCG market. We believe that this investment will strengthen our brands and enable us to drive further growth in the quarters ahead,” added Godrej.

    In Q4-2015, GCPL ad spends at Rs 230.18 crore (11 per cent of TIO) was 57.9 per cent more than the Rs 145.8 crore (7.5 per cent of TIO) n Q4-2014 and 5.6 per cent more than the Rs 217.89 crore (9.7 per cent of TIO) in the immediate trailing quarter.

    Please refer to Fig A below. During the twelve quarter period starting Q1-2013 until Q4-2015, the company’s ad spends shows a linear increasing trend in terms of absolute rupee spends as is obvious from the broken blue trend line in Fig A below. However, in terms of percentage of TIO, ad spends show a slight declining trend with a very small negative slope of the broken brown trend line because of the lower ad spend by the company in percentage of TIO(9.7 per cent of TIO, Rs 217.89 crore) in the previous quarter. The slope of brown line until Q2-2015 was upwards and positive, and had predicted ad spends of 11.05 per cent and 11.08 per cent of TIO for Q3-2015 and Q4-2015 respectively. As a matter of fact, considering the 9.7 per cent of TIO in Q3-2015, the Q4-2015 intercept of the broken brown tend line indicates lower ad expense of 10.8 per cent of TIO as opposed to the 11.003 per cent of TIO actually spent by the company.

    GCPL’s lowest ad expense both in terms of absolute rupees and percentage of TIO during the period under consideration was in Q4-2015 at Rs 145.78 crore and 7.5 per cent respectively. The company’s highest ad spend in terms of absolute rupees and percentage of TIO during the period in this report was in Q1-2014 at Rs 239.06 crore and 13.8 per cent of TIO respectively.

    GCPL reported 8.9 per cent growth in TIO in FY-2015 at Rs 8276.36 crore as compared to the Rs 7602.41 crore in FY-2014. Please refer to Fig B below. TIO in Q4-2015 at Rs 2092.02 crore was 8.3 per cent more than the Rs 1931.52 crore in the corresponding year ago quarter, but declined 6.4 per cent as compared to the Rs 2235.71 crore in Q3-2015. During the twelve quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken green trend line.

    Profit after tax (PAT) in FY-2015 at Rs 907.12 crore (10 per cent of TIO) was 19.4 per cent more than the Rs 759.73 crore (12.3 per cent of TIO) in FY-2014. PAT in Q4-2015 at Rs 265.57 crore (12.7 per cent of TIO) increased 12.4 per cent as compared to the Rs 236.28 crore (12.2 per cent of TIO) and was almost flat (up 0.8 per cent) as compared to the Rs 263.57 crore (11.8 per cent of TIO) in the preceding quarter. During the twelve quarter period in this report, PAT shows a linear increasing trend both in terms of absolute rupees and percentage of TIO as in obvious from the broken red and black trend lines in Fig B below.

    Segment Performance

    Household Insecticides

    GCPL says that Household Insecticides continued its strong momentum with a growth of 11 per cent and continued to gain market share across formats and exited Q4-2015 with highest ever market share. Good knight Fast Card continues to see strong demand and add new customers, while expanding its category reach, especially in rural.

    Soaps

    The company says that its Soaps business delivered another strong quarter, with a healthy volume and mix led value growth of 15 per cent. Its Godrej No. 1 and Cinthol portfolios delivered double-digit growth, backed by well executed tactical strategies involving focused activation programmes, consumer offers and marketing campaigns.

    Hair Colours

    Hair Colours maintained its competitive performance and delivered a volume led sales growth of 12 per cent and continues to outperform the category and gain further market share. The salience of the cr?me segment in the overall Hair Colour category continues to increase. Godrej Expert Rich Cr?me is the fastest growing brand in this segment informs the company.

    Air Fresheners

    Aer, GPCL’s air freshener brand, continues its strong sales and distribution ramp up. This has been aided by the company’s innovative gel format technology and consumer engagement initiatives. Aer is now the number three player in home sprays and the number two player in car air care claims the company.

    Health and Wellness

    GPCL says that its recently launched Health and Wellness portfolio of hand washes, a hand sanitiser and anti-mosquito spray, under Godrej Protekt, is being well received in modern trade.

    “With four consecutive quarters of improvement in growth rates in the Indian FMCG sector, we are seeing a gradual improvement in demand. We remain optimistic that as the economy gathers pace in FY-2016, FMCG growth in FY-2016 will be better than that in FY-2015. While the macro-economic environment in some of our international markets remains challenging, we are confident of continuing to grow ahead of the market and improve our market share. We will continue to focus on sustaining and extending leadership in our core categories. We will also accelerate the pace of new product launches as the macro-economic environment improves and capitalise on the uptick in demand. Overall, we will strive to deliver a stronger operating performance in the fiscal year 2016,”Godrej concluded.

    Click here for the Performance Update, press release and full result.

  • Godrej group sees leadership movements

    Godrej group sees leadership movements

    MUMBAI: Adi Godrej-led Godrej Group has made senior management movements in three of its publicly listed entities.

     

    Godrej Consumer Products Ltd (GCPL) CFO P Ganesh will take charge as the chief financial officer and company secretary for Godrej Industries Ltd (GIL). 

     

    Godrej Properties limited (GPL) executive director V Srinivasan will move to GCPL as CFO and company secretary and will step down from the GPL Board of Directors.

     

    Mohit Malhotra, who currently heads the business development function and the NCR region for Godrej Properties, will be inducted as an executive director on the Board of Directors of the company.

     

    All these changes will take effect from 1 April, 2015.

     

    Godrej Group chairman Adi Godrej said, “We have made these changes in line with our growth aspirations and talent management philosophy. Our HR strategy is to ensure that we have a robust in-house talent pipeline and the diversity of the Godrej Group enables us to periodically expose key talent to different business opportunities.”

  • Godrej Consumer Products ‘Soaps’ category sees strong turnaround in Q2-2015 with new marketing campaign

    Godrej Consumer Products ‘Soaps’ category sees strong turnaround in Q2-2015 with new marketing campaign

    BENGALURU: Godrej Consumer Products Limited (GCPL) reported 9.1 per cent growth in Total Income from Operations (TIO) in Q2-2015 to Rs 2060.12 crore from Rs 1888.51 crore in Q1-2015 and 5 per cent growth from Rs 1961.72 crore in Q2-2015. For HY-2015, TIO grew 7 per cent to Rs 3948.63 crore from Rs 3668.62 crore in HY-2014.

    Note: 100,00,000 = 100 lakhs = 10 million = 1 crore

    The company in its press release says that despite the Soaps category continued de-growth in this quarter the company saw a good turnaround with sales growth of 13 per cent. Godrej No. 1 recorded a sharp uptick in growth rates, aided by new marketing campaign and focused activation programmes. The launch of Cinthol’s new germ protection variant “Confidence+” has received an encouraging response, adds the company.

    The company’s Ad and Publicity spend (Ad spend)  at Rs 211.69 crore ( 10.3 per cent of TIO) for the current quarter was 15.4 per cent lower than the Rs 250.20 crore (13.2 per cent of TIO) in the immediate trailing quarter and was 4 per cent lower than the Rs 220.60 crore in the corresponding quarter of last year.

    Over a 10 quarter period starting Q1-2013 until Q2-2015, ad spend shows an upward linear trend in absolute rupee terms, while the spends seems to have flattened out to in terms of percentage of TIO. GCPL‘s ad spend in terms of absolute rupees has been in Q1-2015 at Rs 250.20 crore above. In terms of percentage of TIO, the company’s ad spend was highest in Q1-2014 at 13.8 per cent of TIO. Please refer to Fig A below.

    GCPL’s  PAT in Q2-2015 at Rs 234.53 (11.4 per cent of TIO) crore in Q2-2015 was 63.5 per cent higher than the Rs 143.45 crore in Q1-2015 and 20.3 per cent higher that the Rs 195.97 crore (9.9 per cent of TIO) in Q2-2014. For HY-2015, PAT at Rs 377.98 crore was 15.4 per cent more than the Rs 327,68 crore in HY-2014.

    Over the10 quarter period under consderation, PAT has been highest in Q4-2013, both in terms of absolute rupees and in terms of percentage of TIO at Rs 334.14 crore and 19.4 per cent of TIO. Over the period under consideration, PAT in terms of absolute rupees shows an upward linear trend, while PAT in terms of percantage of TIO shows a slight downward trend, probably on account  of the high PAT in Q4-2013 mentioned above. Please refer to Fig B below.

    Commenting on the financial performance of Q2-2015, Godrej group chairman Adi Godrej said,

    “Consumer demand remained subdued in the second quarter of fiscal year 2014-2015, making this one of the slowest years of growth for the Indian FMCG industry in over a decade. We have however, continued to outperform the market and our brands have further strengthened their leadership positions. Our net profit grew strongly this quarter at 20 per cent. Sales were however impacted by a soft performance in the household insecticide category due to the deficient and delayed monsoon in India, and the impact of an adverse forex translation in our international businesses. Overall, our international businesses delivered a good constant currency growth of 12 per cent. Indonesia, our largest international business, achieved a strong constant currency growth of 15 per cent.”

    “We believe that the Indian FMCG industry is now showing early signs of recovery. Growth has improved in the latter part of this quarter, particularly in September. While any recovery is likely to be gradual, we believe that after many quarters, environmental indicators are now trending in the right direction. We are confident that the second half of this year will be better than the first half.

    In this uncertain environment, we continue to focus on sustaining and extending leadership in our core categories. We are managing our costs prudently in the near term, while investing for the longer term. We are also continuing our pace of launching exciting new products.

    The medium and long-term growth prospects in India and our other emerging markets remain robust. I am confident that with our clear strategic focus, differentiated product portfolio, superior execution and top-notch team, we will continue to deliver industry-leading results,” added Godrej.

     

    Click here to read the unaudited financial result

     

    Click here to read the press release

  • CNBC-TV18’s Shereen Bhan talks business before Budget 2014

    CNBC-TV18’s Shereen Bhan talks business before Budget 2014

    MUMBAI: She is the most familiar face of Indian business news channel, providing investors and corporate India with insights about the dynamics of Indian economy and financial markets.  

     

    CNBC-TV18 managing editor Shereen Bhan, who anchors and produces several shows such as Young Turks, India Business Hour and Power Turks, is neck deep in work with the rail budget already announced and one day to go for the much awaited maiden budget to be presented by the new Narendra Modi led BJP government at the helm.

     

    While most channels are looking at concentrating on one aspect, Bhan says that their perspective will be a 360 degree angle one. “The key question we will be asking is if the budget will be able to deliver. There will be a sharp focus on market reactions, the stance taken by other countries giving India a thumbs up and about investment in domestic capital. We will analyse the long term and short term ideas the government has as well as the reforms that will be taken up to revive the economy. We will also look at how the fiscal deficit can be improved by the new government. While the analysis will primarily be on the domestic economy, we will also look at the budget from a political angle and try to draw political reactions.”

     

    The guest line-up includes India’s corporate giants like HDFC Bank chairman Deepak Parekh, HSBC India country head Naina Lal Kidwai, Godrej chairman Adi Godrej, Kotak Mahindra vice chairman Uday Kotak, GVK vice chairman Sanjay Reddy, TPG Growth India chairman Manish Chokhani and Helios Capital founder and fund manager Samir Arora. Foreign investors and rating agencies will also give their take on the budget.

     

    To get a political perspective political parties like BJP, Congress, TMC, CPI (M) and leaders such as Jyotiraditya Scindia and Sitaram Yechury will be on air.

     

    Bhan, who will be on air right from morning 8 am till late night, will be tracking foreign direct investment in the news sector and reforms in the capital markets and infrastructure sector.