Inflation temporary, demand will bounce back, says GCPL’s Sudhir Sitapati

Godrej Consumer has also committed investment of Rs 100 crore for the next three years towards awareness for environment-conscious lifestyle.

Inflation temporary, demand will bounce back, says GCPL’s Sudhir Sitapati
The company further plans to launch mono-layer plastic sachet in a month which would further reduce plastic usage by half.

While consumption in the FMCG industry has been hit due to inflation, Sudhir Sitapati, managing director and CEO of Godrej Consumer Products, believes that impact on demand due to inflation is not a long-term phenomenon and sooner or later, will bounce back.

“Inflation, except for oil, is not such a big issue, but bigger issue is that during Covid people’s salary got affected, which hit the consumption pattern,” Sitapati said on Tuesday after launching a new product from the company’s stable. He said that with consumers gradually building back on savings and inflation being a temporary phenomenon, demand will bounce back.

Sitapati said that Godrej Consumer is committed to its long term vision of double-digit volume growth over the next 3-4 years and sustainability framework to develop new products that are greener.

On the same lines, the company on Tuesday launched ready-to-mix bodywash— Godrej Magic Bodywash — priced at Rs 45 to drive in better penetration of its product and improve volumes. The launch is also aimed at reducing plastic usage, Sitapati said, as the sachet uses one-tenth of the plastic used in bodywash plastic bottle generally.

The company further plans to launch mono-layer plastic sachet in a month which would further reduce plastic usage by half. It would be followed by biodegradable sachet instead of plastic, Sitapati added.

The launch of ready-to-mix bodywash serves the company twin purpose. First, it is in line with Godrej Consumer’s sustainability framework to develop new products that are greener, and secondly, it would help company drive volumes as it would become more accessible to different demographics at this price point.

On volume expectations from the product, Sitapati said that it hasn’t set the target as yet but if the product clicks with the customer, it would provide the company a huge opportunity to grow.

“From a consumer perspective, they prefer upgrading to a bodywash from a soap, but steep prices pose as the biggest barrier,” the company said.

Godrej Consumer has also committed investment of Rs 100 crore for the next three years towards awareness for environment-conscious lifestyle.

The company intends to invest the money towards recycling infrastructure for plastic in the country and also set up infrastructure for research internally for reducing packaging, making it recyclable and biodegradable, it said.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos