With rising disposable income and ever-growing population, the fast-moving consumer goods (FMCG) sector has been expanding at a healthy rate. Hence, it is no doubt that companies too have upped their ad spends over the years. Marketing spends went up significantly by 40-50% in FY 23, despite inflation, Sudhir Sitapati, MD and CEO, GCPL told BrandWagon Online. “We are committed to increasing marketing spends for the next two years”, he added.
GCPL claims that the company opts for cost effective ways to reach consumers. “We don’t have a target salience for any particular medium, but we focus on the choices of our consumers and their preferences. So, GCPL uses a combination of both digital and television advertising”, he stated.
During the period ended December 31,2022 (nine months – unaudited) the company posted a total revenue of Rs 10,115 crore. Of this revenue from the Indian market stood at Rs 5844 crore. Total profit before tax was reported at Rs 1577 crore, as per the data shared by the company. “We delivered an all-round performance in 3Q FY 2023.
Overall sales grew by nine percent and we witnessed sharp sequential uplift in underlying volume growth. Consolidated volume grew by one percent. Our overall quality of profits has been healthy with double-digit EBITDA growth of 10%. Gross margins expanded by 330 bps quarter-on-quarter and 50 bps year-on-year. Continued upfront working media investments grew by 28%. PAT, without exceptional items and one-offs, grew by 13%.,” he said, adding that India delivered double-digit sales growth of 11%.
Furthermore in India, it claimed to have recorded broad-based double-digit growth -personal care grew by 14% and home care grew by 10%. Known for personal and household care products, Godrej consumer products recently launched liquid mosquito repellent device and a no-gas instant mosquito–kill spray in the wake to fight against mosquito-borne diseases. “ Liquid repellents and aerosols are the most effective solution against mosquitoes, but they remained largely inaccessible to lower income households due to high pricing. These product innovations bring down the cost of liquid repellent and spray categories in India by upto 50% and thus make them accessible for everyone. Our role as a company is to develop awareness about household insecticide and a lot of education needs to be done for the same. We are going to spend money on educating consumers about the same,”Sitapati, explained.