Godrej Consumer Aims to Shrink Global Production

18 Jul 2024 , 10:26 AM

Godrej Consumer items has announced that its global production footprint will be reduced by 40% by FY26, as part of a larger effort to produce more items in India while cutting costs to increase profitability.

The manufacturer of Cinthol and Good Knight currently operates 36 factories, 14 of which are in India. It also invested ₹1,000 Crore in two manufacturing facilities in India last fiscal year.

“We are also reviewing our industrial footprint. “We are questioning how much of what we make in international geographies can be made in India and exported,” stated Sudhir Sitapati, MD of GCPL, in the company’s most recent annual report.

GCPL stated that its strategy focus on attaining double-digit volume growth in important markets such as India and Indonesia is critical to delivering its long-term growth objectives. Despite obstacles such as lower consumption levels in India, it managed an organic underlying volume growth of around 7%, which is consistent with its aim of high single-digit growth this fiscal year. It also lowered the overall number of managers by creating larger, more complex jobs and adopting more current tools, it stated.

“The durability in volume growth demonstrates our ability to navigate market changes and seize growth opportunities. We are still on track in our quest to decrease wasted costs and use them to promote profitable, sustainable volume growth. We want to develop a robust trajectory for future expansion and market leadership by setting consistent volume growth targets of 9-10% in India in the next years,” Sitapati said, adding that it also decreased overall stock keeping units (SKUs) by around 30%.

Last year, Godrej acquired Raymond’s consumer care division in a slump sale for ₹2,825 Crore, which included brand intellectual property rights.

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