Godrej Consumer Products (GCPL), leading manufacturer of soaps, liquid detergents, hair colours, has drawn a strategy to not only strengthen its leadership position in hair colours, home insecticides, liquid detergents and soaps in India but also to expand its presence in the international markets including China, Indonesia, Malaysia, Vietnam and the Saarc countries.
While setting its focus on brand, leadership and categories where it is currently operates, the company will also look at tapping growth opportunities available in attractive emerging markets through acquisitions of local brands with seasoned management teams. The company, which is a part of the Rs 12,000-crore Godrej group, will also look at strengthen its rural presence in India while building new growth platforms to grow sharply, company sources said.
According to the sources, the company will leverage its fundamental proposition in markets with significant middle and bottom of the pyramid population, bring back the learnings and technologies for the Indian market to strengthen the domestic portfolio further and look at strong local brands in the international markets with a relatively better market share.
With a market share of 75.8% in liquid detergents, 33% in household insecticides, 34% in hair colours in and 10.4% in soaps in the domestic market, GCPL will focus on leveraging common innovation pipeline and scale and scope of synergies in sourcing and operations of both its domestic and international operations to take on competitors in a big way.
The company is actively involved in common purchase of active ingredients and perfumes in both household insecticides and hair colours across global portfolio; transfering of operational strengths to markets like Indonesia and Bangladesh where it acquired a few brands and making Latin America as a strong source of learning and innovation in hair colours, the sources pointed out.
The sources said that GCPL could turnaround most of the brands/companies it acquired into Ebitda positive through its sheer strength of its management teams.