FMCG major Godrej Consumer Products Ltd (GCPL) on Thursday signed a memorandum of understanding (MoU) with the government of Tamil Nadu to set up a manufacturing facility in the state, entailing an investment of Rs 515 crore over the next five years.
The MoU was signed in the presence of chief minister MK Stalin and executive chairperson of GCPL Nisaba Godrej.
The new factory will serve as a manufacturing hub for brands such as Cinthol, Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight. The plant is expected to contribute significantly to GCPL’s overall production capacity.
The manufacturing facility will be strategically located in Thiruporur Taluk, which is in the district of Chengalpattu near Chennai. It will guarantee access to crucial southern markets.
“With the establishment of this facility, we will create over 400 job opportunities in Tamil Nadu. The facility aims to have an inclusive and gender balanced workforce. Our plan is to employ 50% women for this facility, along with 5% of employees from LGBTQ and people with disability communities,” Nisaba said.
GCPL plans to add approximately 20% capacity in home care and personal care categories with the additional investment. The project will be funded through a mix of internal accruals and debt, if required. The board of directors of the company on August 7, 2023 had approved a capital expenditure of `900 crore for setting up a manufacturing site in Tamil Nadu and Madhya Pradesh.
Sudhir Sitapati, managing director & chief executive, GCPL said, “This plant will play a pivotal role in accelerating our delivery times, optimising inventory management, and cutting overall costs. It will serve as a manufacturing hub for a wide range of our renowned products, bolstering our market presence further.”