We are not planning to revise our pricing strategy

Written by Lalitha Srinivasan | Updated: Jul 30 2010, 05:16am hrs
Adi Godrej, chairman of the Rs 12,000-crore Godrej Group is a happy man. Godrej Industries (GILs) consolidated net profit nearly trebled on the back of strong performance by its associate companies this quarter. Godrej Consumer Products (GCPL) has reported 67 % increase in its net profit for the quarter. To sustain momentum in the second quarter,Adi Godrej is drawing up a fresh strategy, which includes organic and inorganic growth. In an exclusive interview, Godrej shares his plans with FEs Lalitha Srinivasan.Excerpts:

What are the reasons for GCPL and GILs strong performance

Our growth in the first quarter was led by a series of accretive new acquisitions. GCPL had completed the acquisition of PT. Megasari Makmur Group, Tura brand in Nigeria, Issue group and Argencos in Argentina and the balance 51% stake in Godrej Sara Lee. Our growth will be better in the second quarter. In Q1, these acquisitions were partly consolidated. We had also launched many consumer-centric offerings with the relaunch of some of our existing products with focused marketing and promotional strategies .All our businesses performed well in line with the economys growth.

Whats going to be GCPLs growth strategy in the second quarter

We are looking at both organic and inorganic growth. We will add a manufacturing facility for our soap brands soon. We will increase our distribution network . We also plan to increase our advertising budget to promote our brands in competitive markets.

What about inorganic growth strategy for GCPL With the good monsoon, will you be revisiting your pricing strategy

We had five acquisitions in Q1. We will continue to scout for acquisitions which fit strategically in our portfolio. We will look at buy out opportunities, both in domestic and gloabal. We are not planning to revise our pricing strategy.

What are your plans for GIL in the second quarter

We will extend the product range of Godrej Hersheys with the launch of chocolates this fiscal. Our Oleo-chemicals business delivered positive growth on the back of continued efforts to improve efficiency and reduce costs.

Will you be investing in R&D projects this fiscal

Yes. We will be increasing investment in our R&D projects this fiscal.We are looking at new launches to reach out to a wider audience.