With the monsoon reviving across the country, Godrej Consumer Products Limited is optimistic that it would continue to grow at the present rate of 21% or even more. In an interview to Fe?s Simran Arora, Godrej Group chairman and managing director Adi Godrej talks at length about the demand of FMCG products in rural areas and his plans about other group businesses. Excerpts:

How do you see the overall demand for FMCG products in rural areas after the revival of monsoon?

We have not seen the demand falling in rural areas. The consumer products division of the Godrej Group showed a growth of 21% in demand during the April-June quarter. We are optimistic of doing better in July and August as there is a revival of monsoon in September. Besides, the government is providing a helping hand in rural areas in terms of employment and education, which is helping rural growth. To sum up, scanty rains will not impact the rural demand of FMCG products. Moreover, lower output due to scanty rainfall will not have an effect on the income of rural masses as the prices will make up for it. Though the Kharif crop did not do well, we expect the Rabi crop to do well.

How has the slowdown in the economy affected your expansion plans?

Despite the slowdown in the economy, our pace of expansion has been on track. We have neither changed nor scaled down our expansion plans. Now the situation does not look grim and scary. The economy is improving. The recent acceleration seen in GDP gives us enough reason to cheer. We are continuing to expand both organically and inorganically. We continue to invest in new projects and in recruiting people.

Are you planning to go for any more acquisitions and what could be their size?

It would be difficult to comment on any more acquisitions at the present. There may or may not be acquisitions. There could be one or more than one acquisition. Godrej Consumer Products has announced that it will grow through inorganic way. As far as the size of the acquisition is concerned, it will never be a deterrent. It could be Rs 1,000 crore or even larger than that

Are you looking at any joint ventures in the near future?

We don?t have any new JV plans.

When can we look forward to the IPO of Godrej Properties? Have you set any time frame?

The investment bankers are working on it at the moment and we can have it very soon if the market conditions become favourable. We have already got clearance from Sebi. Godrej Properties is also mulling to sell 13.5% of its stake. The stake sale will bring in fresh cash infusion and it will not be a case of promoters selling their stake. The proceeds from the stake sale will be used by the company for its expansion.

Most developers feel affordable housing is the way to grow. How does Godrej Properties look at it?

We feel that there is a tremendous demand for affordable housing, which is a Rs 5-25 lakh segment. So, we will focus

on affordable housing. We have 90% of our housing projects in affordable housing category. We are coming up with affordable housing projects in several places, including in Bangalore, suburbs of Mumbai, Pune, Kolkata, Ahmedabad and Chandigarh.

With the foray of new players in the hair colour business, it has become a highly competitive segment? How are you taking on the increased competition?

The hair colour market is very competitive in the country. Godrej continues to be the leader. Our objective is to achieve high growth in sales, profits and market share in the hair colour business

The sugar prices are skyrocketing. Should people expect a price hike in your sugar-based products?

We would definitely go for a price rise in sugar-based products like confectionary, beverages and syrup. Since we can?t go for a price rise in confectionary items, we would definitely reduce the content.

When do you plan to exit tea business?

Tea is not a core business for us. If the opportunity arises, we would be looking at divesting our non-core businesses.

You went for a new brand-building exercise eighteen months back. How has the company performed after the makeover?

Ours is a 112 -year-old brand. We went for change in the logo shape. The market research showed that our brand was not that appealing and we ought to reposition it. The relaunch and repositioning of the Godrej brand and logo has done extremely well. Market research indicates that all the objectives of the relaunch, such as appeal to young consumers, have been met. The group?s performance since the relaunch of the brand has been excellent.