Focus on rural sector to drive volumes

Written by Lalitha Srinivasan | Updated: Oct 31 2009, 06:55am hrs
Adi Godrej, chairman of the Rs 10,500-crore Godrej Group, is a happy man after his company Godrej Consumer Products Ltd (GCPL) on Friday posted a 168% increase in net profit for the quarter ended September 30, 2009. In an interview with FEs Lalitha Srinivasan, Godrej spoke about the companys growth plans. Excerpts:

What do you attribute GCPLs strong sales growth in Q2 FY 2009-10 to

We have posted strong performance across both soap and hair colour businesses. The performance of the international businesses was also encouraging. In fact, our results are a reflection of the numerous initiatives we have taken across our businesses, including the efforts to augment our rural reach and enhance rural demand.

Whats going to be GCPLs core strategy in Q3 to sustain its competitive edge in the Rs 85,000-crore Indian FMCG sector

Our strategy is two-fold. We will continue to focus on the rural sector to drive volumes. We will continue to advertise heavily to gain visibility for our brands. As reflected by the high level of advertising and publicity spends during the quarter, we would continue to invest in our brands to drive growth and strengthen our position.

How would GCPL drive inorganic growth

We are always looking at acquisitions both in the domestic and international markets mainly is the hair colour segment and in household products. Our international businesses have performed well in Q2.

Is GCPL planning to associate with the third season of the Indian Premier League

Negotiations are going on. The Godrej Group was one of the co-sponsors for IPL season 2.

Please comment on the overall performance of the Indian fast moving consumer goods sector in Q2 FY 2009-10

The Indian FMCG industry is doing pretty well. Till now, many companies have posted healthy growth in the second quarter of this fiscal. We have performed well in Q2 and will continue to do well .

Is GCPL foraying into new categories Any new star endorser

We have just launched Godrej Protek and Godrej No 1 moisturising soap. We have recently roped in cine star Vidya Balan to endorse our brand Good Knight.