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  • HUL’s Sudhir Sitapati joins Godrej Consumer Products as MD & CEO

    HUL’s Sudhir Sitapati joins Godrej Consumer Products as MD & CEO

    Mumbai: Godrej Consumer Products Limited (GCPL) today announced changes to its leadership team, effective 18 October 18 2021. Sudhir Sitapati will join GCPL as managing director and chief executive officer. Nisaba Godrej, currently the chairperson and MD of the company, will continue to serve as executive chairperson. Sitapati’s appointment will enable GCPL to leverage his significant experience in building sustainable and profitable businesses to guide the growth strategy going forward.

    During his 22 years at Hindustan Unilever Ltd (HUL), Sitapati led teams across categories and functions in India, Europe, South East Asia and Africa to create significant value for the business. He was appointed to the HUL management committee as an executive director in 2016, making him one of its youngest ever members. Under his leadership, HUL built up its foods and refreshments business as one of the largest in India. This included the $5 billion merger and integration of GlaxoSmithKline Consumer Healthcare with HUL, the largest deal of its kind in the FMCG sector in India.

    Sitapati is currently the co-chair of the CII National Committee of Food Processing and is a past co-chair of the FMCG Committee. He has an MBA from the Indian Institute of Management, Ahmedabad and a BSc in maths with economics honours from St. Xavier’s College, Mumbai.

    Nisaba Godrej said, “I am delighted to be welcoming Sudhir to Godrej. His significant experience and passion for building sustainable and profitable brands and businesses aligns very strongly with our purpose at GCPL. Sudhir’s values-based leadership style also makes him a great fit with the Godrej culture. I look forward to his partnership in unlocking the amazing potential of our company and leading its next phase of growth.”

    Sitapati added, “I am very inspired by the legacy of the Godrej Group, and GCPL’s purpose of bringing the goodness of health and beauty to consumers across emerging markets. I am excited about working closely with the talented GCPL team to build on the incredible work they are doing and create sustainable, long-term value for our company.” 

    In his previous roles, Sitapati was instrumental in creating a world-class tea business for HUL in India and leading HUL’s Soaps business in the country. A passionate marketer, he has worked closely on internationally acclaimed purpose-led marketing campaigns for some of HUL’s most iconic brands, including Surf Excel’s ‘Dirt is Good’, Lifebuoy’s ‘Have you washed your hands with Lifebuoy?’ and Brooke Bond’s ‘Taste of Togetherness’.

  • Godrej Consumer Products forays into home cleaning products with ProClean

    Godrej Consumer Products forays into home cleaning products with ProClean

    NEW DELHI: Godrej Consumer Products Limited (GCPL) forayed into the home cleaning products segment by launching Godrej ProClean, a brand that provides surface cleaning and disinfecting solutions. The brand offers three products including ProClean Toilet Cleaner, ProClean Bathroom Cleaner and ProClean Floor Cleaner. ProClean aims to cater to the rising demand for home hygiene products especially in the current context where there is an emphasis on products that offer protection against germs. The brand’s USP is its ‘best quality at the best price’ offering.

    The market size of home cleaning products (branded floor, toilet and bathroom cleaners segment) is pegged at Rs 2600 crore, as per AC Nielsen. Due to increased awareness about cleanliness and hygiene, consumers are opting for products that will enable them to keep their homes clean and germ-free. This is likely to fuel further growth of the home cleaning products category in the coming days. Consumer preferences have also shaped the demand for durable, new-age products as against the traditionally used cleaners like phenyl.

    GCPL CEO – India & SAARC Sunil Kataria said, “Indian consumers are becoming more hygiene conscious. Demand for cleaning products continues to grow due to consumer alertness concerning the importance of hygiene and the spread of infectious diseases. Our main objective to launch Godrej ProClean, is to create a home cleaning brand that evokes trust, ensuring best quality at the best price.”

    He further added, “ProClean is a one-stop home cleaning, hygienic solution for everyday use. It offers 99.99 per cent germ kill while ensuring value for money pricing in branded segments through its consumer offers. At GCPL, we are committed to creating delight for our consumers by prioritizing hygiene, safety and germ protection, and our new launch is another step towards reinforcing this commitment.”

    Godrej ProClean provides consumers with one-stop home cleaning, hygienic solutions for everyday use. The three ProClean products come with the proposition to kill 99.99 per cent germs. The toilet and bathroom cleaner comes with the proposition of removal of toughest stains and floor cleaner comes with the promise of long-lasting fragrance (available in 2 variants).

  • Godrej Ezee pledges partners with CRY for 10th edition of Ezee Hugs Initiative

    Godrej Ezee pledges partners with CRY for 10th edition of Ezee Hugs Initiative

    MUMBAI: Godrej Ezee liquid detergent is back with the tenth edition of Ezee Hugs, an initiative aiming to provide warmth to underprivileged children during harsh winters. This year, Godrej Ezee is contributing Re 1 on purchase of every 1kg bottle and will donate the proceeds towards buying new sweaters for children.

    The detergent brand has partnered with CRY – Child Rights and You, a prominent non-profit organisation working for children’s rights, to ensure strategic identification of beneficiaries and distribution of sweaters across India’s severe-winter prone regions like North and East. On the occasion of Christmas, Godrej Ezee and CRY jointly kick-started this year’s Ezee Hugs campaign with celebrations and distributed new sweaters amongst underprivileged children in Delhi, Chandigarh and Lucknow.

    Every year thousands of underprivileged, school-going children across the Northern belt, bear the harsh winters without the warmth of woolens. Godrej Ezee wanted to build awareness about this winter related hardships and alleviating them. Thus, it started Ezee Hugs campaign for this important social cause. Over the years, Ezee Hugs has spread warmth by urging people to donate their woolens for children through this social good campaign. In the tenth edition, Godrej Ezee has raised the scale of Ezee Hugs by donating INR 1 from its own sales towards new sweaters. The campaign gives people a chance to contribute towards the noble cause by simply making a purchase. The partnership with CRY will be leveraged to distribute the new sweaters amongst underprivileged children based in Delhi, Punjab and Uttar Pradesh and is expected to have a substantial impact.     

    Sharing his thoughts on Ezee Hugs campaign, Godrej Consumer Products Limited (GCPL) chief executive officer – India & SAARC Sunil Kataria said, “Godrej Ezee has always stood for warmth, comfort and care. Ezee Hugs, a noble initiative by Ezee that began in 2011, has grown over the last 9 years with the support of multiple stakeholders and offered warmth to thousands of children during the winters. This year, we are linking our contribution directly to that of the consumers. We are making Ezee Hugs a people’s movement and encouraging them to contribute to the cause by simply buying Ezee. We are happy to have CRY as a strategic partner this year to ensure accurate last-mile delivery of new sweaters to children across Northern region.”

    Commenting on Ezee Hugs campaign and its partnership, CRY Regional Director(North) Soha Moitra said, “In our journey over the past 40 years, we have always believed in the power of likeminded individuals and corporates to raise awareness for a cause, and it’s a pleasure for all of us at the CRY family as Godrej Ezee comes on-board with a cause related partnership. We are sure that this initiative will go a long way in keeping our children warm and protected during the winter days. I do hope that this initiative would send a message to all consumers, and give them a brilliant opportunity to come forward in championing a cause.”

    In its tenth edition, Ezee Hugs will be promoted over a two-month period through a multi-media campaign including TVC and digital films. This will be to raise awareness amongst people about the cause and encourage them to make their valuable contribution. 

  • Cinthol won’t go hyper-aggressive with offers: GCPL’s Urshita Nema

    Cinthol won’t go hyper-aggressive with offers: GCPL’s Urshita Nema

    MUMBAI: India’s famous soap brand Cinthol, owned by Godrej Consumer Products Ltd (GCPL) is gearing up its effort to connect to consumer for its freshness portfolio as the heat after monsoon kicks in. The popular brand held an interesting day filled with fresh adventure, in association with the cricket sensation, Shubman Gill as part of its #TurnDownTheHeat campaign of Cinthol Lime & Cinthol Cool soap variants.

    “We have done a 360 degree here. It starts with TV campaign; the TVC is on all of national channels. We are also doing regional media taking Maharashtra and West Bengal channels. Along with TV, we started this digital campaign, which has thought and led to activation campaign where Shubman Gill came in as the celeb and he started asking about what is your adventurous spree to turning down the heat along with Cinthol Lime and Cinthol Cool,” GCPL personal care generale manager marketing Urshita Nema shared the details of the campaign.

    “Cinthol as a brand has done a lot of outdoor activities and we got responses from across the nation. We picked up the winners and then we had micro-influencers to lead the campaign. Multiple influencers started posting their pictures may be with a parachute, diving in the waterfall and we tried to involve them in the campaign,” Nema added.

    Nema also added that Cinthol’s target is practically youth oriented and while the brand has been there for years, it has been refreshing itself constantly to connect with its TG. But she also added that TG is more about psychography and people who are young by heart, who love to go out for sports and adventure, they are also the brand’s TG.

    Talking about current focus of marketing initiatives, Nema shared that they are focusing on ‘hyperlocal marketing’ right now. She explained that while they divide the term, one of it has to be rich media and TV will be there.

    “But when we have to connect to our TG, we look into the relevance of which market we are working. Cities in North, West like Delhi, Bombay all these cities’ digital connect is very good. So, we have taken up this as digital friendly. We have few states where we are doing experiential marketing campaign like Ola, Uber tie-up. We gave fresh lime wipes. So, it depends on market what we pick,” she added.

    Nema also pointed out that where consumers are going is practically digital savy. While the brand also understands internet rates are coming down, everyone is hooked onto digital, they are going digital with micro-influencers, OTT platforms like Hotstar, Voot.

    GCPL posted its second-quarter financial result on Wednesday and the soap segment’s revenue declined by 4 per cent year-on-year and the brand’s overall ad spend sharply fell down by 22.1 per cen year-on-year. In an exception, India’s recent economic slowdown has affected FMCG brands also which are usually more immune to slowdowns. While asked about the impact of the slowdown, Nema said that  slowdown news is correct but there are markets like Andhra Pradesh, Tamil Nadu which are still growing.

    Due to weak demand, FMGC major HUL slashed prices of Dove, Lux, and Lifebuoy soaps recently and Wipro Consumer Care, the maker of Santoor soap, also cut the price of the soap. While Neema was inquired if Cinthol is also thinking of a similar move, she answered that the brand is ready to react to competition anytime.

    “But I would say we are not in a stage where we have to go hyper-aggressive to counter competition with offers. The brand pull for Cinthol is very high. We would say we are least impacted in the situation,” she added.

  • Godrej Expert unveils TVC for new easy 5-minute hair colour

    Godrej Expert unveils TVC for new easy 5-minute hair colour

    MUMBAI: Godrej Expert, India's foremost and largest selling hair colour brand from the house of Godrej Consumer Products Ltd (GCPL), launched a TVC of its latest innovation in the hair colour category; Godrej Expert easy 5-minute hair colour.  The new TVC featuring Sneha and Prasanna, is released in Tamil, Telugu, Malayalam, and Kannada languages for the South region.

    Through this campaign, Godrej Expert Easy 5-minute hair colour aims to create awareness about this new innovative hair colouring solution for consumers, which can eliminate all effort from conventional hair colouring process. It is the perfect solution for the busy time pressed consumer who is seeking a convenient hair colouring ritual.

    Conceptualised by Creativeland Asia, the film opens in a living room of a South Indian family where a father and daughter are having a sweet moment; the daughter is sitting on the father’s shoulders counting his grey hair. The daughter is surprised that the count of the grey hair has increased to 30 and expresses the same in a shocking way. The father refrains from colouring his greys as he feels hair colouring process is a very messy and cumbersome exercise. Just then the mother who is watching the conversation from far steps in and hands over Godrej Expert Easy 5-minute hair colour to her husband. He applies Godrej Expert Easy and the TVC signs off with a happy father who is pleased with the results and the convenience of usage.

    Speaking on Godrej Expert Easy and its TVC campaign, Godrej Consumer Products Ltd CEO – India and SAARC Sunil Kataria said, “Hair colouring is a tiresome process given the conventional hair colouring process and hence they often avoid it. Given the different formats, shampoo based hair colour format in India has had a dramatic growth in the last 4 years and one of the main reasons for this shift is the ease of product usage for the busy time pressed consumer. Through this TVC, we wanted to highlight the convenience of using a shampoo based hair colouring format which is not only quick but is also enriched with the benefits of amla and shikakai.”

    Commenting on the TVC,  Creativeland Asia Group chief creative officer Anu Joseph said, “Godrej Expert understands the conventional man and hence always find an engaging way to connect with their audience. It always has a certain appeal in its communication, and is constantly looking for topics that are relevant to its users, to be associated with.’’

    Actors Sneha and Prasanna, who are prominent names in the South Indian film industry, are now the brand ambassadors for Godrej Expert Easy. Southern region is a key market for Godrej Expert Easy 5-minute hair colour and thus the campaign is released in languages like Tamil, Telugu, Malayalam, and Kannada.

  • Godrej Consumer Products Ad & Publicity spends up in Q3-17

    Godrej Consumer Products Ad & Publicity spends up in Q3-17

    BENGALURU: Leading emerging markets FMCG player Godrej Consumer Products Limited (GCPL) increased its advertising and publicity expenses for the quarter and nine month period for the period ended 31 December 2016 (Q3-17, current quarter, 9M-17, YTD respectively) as compared to the respective periods of the previous year. The company spent 11.9 percent more towards this expense head at Rs 191.94 crore in Q3-17 as compared to Rs 171.53 crore in Q3-16. In 9M-17, GCPL spent 9.3 percent more at Rs 563.03 crore as compared to Rs 515.15 crore in the corresponding nine month period of the previous year.

    While in terms of absolute rupees advertising and publicity spends increased in Q3-17 and 9M-17 as compared to Q3-16 and 9M-16 respectively, in terms of percentage of Total Income from Operations or TIO, YTD the percentage was constant at 7.9 percent. In Q3-17, the company’s ad and publicity spends were 7.7 percent of TIO, while in Q3-16 they were 7.5 percent of TIO.

    Please refer to the figure below.

    The company in its earnings release says that Q3-17 consolidated constant currency net sales increased by 12 percent year-on-year during which India business primary sales were flat while secondary sales increased by 2 percent on year-on-year basis despite demonetisation challenges, while international business sales grew by 28 percent year-on-year, on a constant currency basis.

    On an actual basis, GPCL TIO increased 8.8 percent y-o-y to Rs 2,485.77 crore in Q3-17 from Rs 2,285.74 crore in Q3-16. Profit after tax (PAT) in the current quarter declined 4.3 percent y-o-y to Rs 351.78 crore (14.2 percent of TIO) from Rs 367.75 crore (16.1 percent of TIO). The company says that Q3-17 consolidated net profit and EPS, without exceptional items, increased by 5 percent.

    In itsIndia business review GCPL shared the following insights:

    Household Insecticides 

    Household Insecticides delivered a relatively resilient performance with sales decline of 2 percent. The company says that it made healthy media investments during the quarter and gained market share. It says that it is also driving improvements in penetration rates led by innovative launches, awareness creating campaigns and activations. 

    Soaps 

    Soaps performance improved sequentially as primary sales declined by 6 percent with a high single digit decline in volume terms. This decline in volume was partly driven by the transient effect of the withdrawal of promotions, price increases and adverse impact of demonetisation. GCPL says that it has initiated selective price increases in our portfolio and are scaling back consumer and trade offers.

    Hair Colours 

    Hair Colours primary sales declined by 2 percent, while crème continues to be a lead growth driver with strong double-digit growth. During the quarter, Godrej Expert Rich Crème reached its highest ever market share on an exit basis. GCPL says that its effective communication campaigns, along with competitive media investments, have widened Godrej Expert Rich Crème’s distribution and penetration lead over competition. 

    Liquid Detergents 

    Liquid Detergents saw a reasonable growth performance. Primary sales increased by 2 percent, despite a delayed winter and demonetisation. Demand was to some extent impacted by demonetisation, given the semi-discretionary nature of the category.

    Air Fresheners 

    GCPL says that Godrej aer now ranks number 2 in the overall air care market. We continue to gain share, aided by innovations and strong execution. 

    Health and Wellness 

    GCPL says that its Health and Wellness portfolio of hand washes and hand sanitiser, under Godrej protekt, has been successfully introduced in general trade. 

    CintholDeo stick 

    The recently launched Cintholdeo stick for men and women has been well received by consumers. Godrej plans to continue to support this launch with innovative consumer engagement initiatives and impactful communication. 

    Company speak

    Commenting on the financial performance of Q3-17, GPCL chairman Adi Godrej said, “Despite a tough operating environment, we continued to deliver ahead-of-the-market profitable growth. Our 3QFY17 consolidated constant currency sales increased 12 percentand constant currency EBITDA increased 17 percent. We continue to deliver EBITDA growth ahead of sales growth, despite a strong base from the previous year.

    In India, while demonetisation has resulted in some near-term disruptions, we have outperformed the overall market with secondary sales growth of 2 percent during the quarter. Our go to market approach has been resilient and dynamic. We have been disciplined in our execution and have worked closely with our trade and retail partners to deal with the situation. We have also invested competitively in brand building and innovations. Through our focus on operating efficiencies and judicious cost management, our EBITDA, too, has increased by 15 percent.

    Our International business, too, performed well with revenue growth of 28 percent and EBITDA growth of 19 percent, in constant currency terms, led by continued strong performance in Africa.

    Going forward, remonetisation should result in growth normalising in India over the next few months. In FY-18, implementation of the GST will provide strong momentum for a much better economic environment and stronger consumer demand.

    We are relentlessly focusing on our strategy and continuing to invest in building a sustainable platform for the future. At the same time, we are driving our core to full potential, ensuring execution excellence and building on our agile and high performance culture.”

  • Cinthol DeoStick redefines deodorization in India

    Cinthol DeoStick redefines deodorization in India

    MUMBAI Constantly bringing in the wave of evolution right since its inception in 1952, Cinthol has always strived to give its consumers the best in the personal grooming space. Be it with the first vegetable oil based deodorising, complexion soap to the more recently launched Cool menthol-based soap and insta-deo based germ protection soap. Cinthol, in its endeavour to remain relevant to youth by offering them innovative products, is all set to launch the Cinthol DeoStick – a revolutionary product in the space of deodorants. Cinthol DeoStick is a cream based deo which is easy to use, has great fragrances that lasts 3X longer than ordinary deosprays and is pocket friendly too. The DeoStick is available in six different fragrances, three for men and three for women respectively. The brand’s philosophy of continuous reinvention, with this launch, is expecting to redefine the codes of deodorant category which is marked by expensive sprays, with starting point being Rs. 100+ for female deodorants and 180+ for male deodorants

    The TVC created by Team Creativeland, showcases the DeoStick which is unlike any other deodorant and its advertisements. The TVC DeoReborn sets out to showcase how Cinthol has reinvented the concept of using a deodorant. DeoReborn is the story of how and why the deodorant was reborn into its new avatar in a quirky manner along with a set of laterally evolved visuals. Cinthol DeoStick is a cream based deo and not a spray, which is gentle on skin and lasts 3 times longer than any other ordinary deo. The TVC also showcases product’s new application format and the different stylized ways in which it can be used. With launch of the TVC ‘DeoReborn’, Cinthol has totally redefined the concept of deodorants in India.

    Commenting on the campaign, Sunil Kataria, Business Head India & SAARC, GCPL said, “We at Cinthol, constantly strive to give our consumers the best of personal care products. To bridge the gap between what is available in the market and the consumer’s requirements, Cinthol is constantly engaged in innovating to meet the consumer’s needs. Cinthol as a brand is all about innovation which totally appeals to the youth. With the summer season just around the corner, the consumers need a deodorant which lasts long, which easy to use and is pocket friendly as well. So, keeping these in mind, we wanted to reinvent the deo space with a product which appeals to our consumer’s requirements and the TVC very aptly showcases the concept of DeoReborn.”

  • Cinthol DeoStick redefines deodorization in India

    Cinthol DeoStick redefines deodorization in India

    MUMBAI Constantly bringing in the wave of evolution right since its inception in 1952, Cinthol has always strived to give its consumers the best in the personal grooming space. Be it with the first vegetable oil based deodorising, complexion soap to the more recently launched Cool menthol-based soap and insta-deo based germ protection soap. Cinthol, in its endeavour to remain relevant to youth by offering them innovative products, is all set to launch the Cinthol DeoStick – a revolutionary product in the space of deodorants. Cinthol DeoStick is a cream based deo which is easy to use, has great fragrances that lasts 3X longer than ordinary deosprays and is pocket friendly too. The DeoStick is available in six different fragrances, three for men and three for women respectively. The brand’s philosophy of continuous reinvention, with this launch, is expecting to redefine the codes of deodorant category which is marked by expensive sprays, with starting point being Rs. 100+ for female deodorants and 180+ for male deodorants

    The TVC created by Team Creativeland, showcases the DeoStick which is unlike any other deodorant and its advertisements. The TVC DeoReborn sets out to showcase how Cinthol has reinvented the concept of using a deodorant. DeoReborn is the story of how and why the deodorant was reborn into its new avatar in a quirky manner along with a set of laterally evolved visuals. Cinthol DeoStick is a cream based deo and not a spray, which is gentle on skin and lasts 3 times longer than any other ordinary deo. The TVC also showcases product’s new application format and the different stylized ways in which it can be used. With launch of the TVC ‘DeoReborn’, Cinthol has totally redefined the concept of deodorants in India.

    Commenting on the campaign, Sunil Kataria, Business Head India & SAARC, GCPL said, “We at Cinthol, constantly strive to give our consumers the best of personal care products. To bridge the gap between what is available in the market and the consumer’s requirements, Cinthol is constantly engaged in innovating to meet the consumer’s needs. Cinthol as a brand is all about innovation which totally appeals to the youth. With the summer season just around the corner, the consumers need a deodorant which lasts long, which easy to use and is pocket friendly as well. So, keeping these in mind, we wanted to reinvent the deo space with a product which appeals to our consumer’s requirements and the TVC very aptly showcases the concept of DeoReborn.”

  • 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.