FMCG major Godrej Consumer Products Ltd (GCPL) is betting big on its hygiene products range amid the COVID-19 crisis and plans to build the category as its ‘new core’ in the next two to three years, according to a top company official.
According to a PTI report: GCPL has planned several launches at affordable price points, most of which would be in personal and home care category, in the next 45 days. It expects hygiene products to account for around 5 percent of its total business in this quarter alone as compared to very insignificant contribution in pre-COVID-19 period.
It is also looking to introduce a range of hygiene products for personal consumption, home care and hygiene on-the-go category.
“For us it is not just about the next quarter, you will see a lot more launches over the next 45 days as we are looking at building the hygiene category as our new core over the next 2 or 3 years,” Vivek Gambhir, Managing Director and CEO, GCPL told PTI.
Elaborating further he told PTI, “we have actually moved very quickly and launched hygiene products across India, Indonesia, Bangladesh, Sri Lanka, Kenya, South Africa, the US, Argentina and Chile. There are a lot more launches planned over the next 45 days.”
During the pandemic, several companies have forayed into the hand sanitiser segment, which was hitherto considered to a niche product.
According to Gambhir, the hand sanitiser space is ‘quite crowded’ and the real opportunity is more in handwash and other personal and home care products.
Gambhir said that the new products in the hygiene would be affordable and may ‘disrupt the market’ as well.
Besides, the Godrej Group firm also believes that it is a ‘resurgence time’ for its home insecticide segment, which contributes around 30 per cent of its global and 40 percent of domestic business, as awareness on diseases prevention in general has increased in the COVID-19 times.
Gambhir also said GCPL expects its soaps category, which contributes around 20 percent of its revenue, to grow further.
On distribution, like other FMCG companies, GCPL is also expanding its digital initiatives and increasing its presence in the e-commerce channels. The company is working with the channels partners and is also engaging through business-to-consumer (B2C) model, selling the products directly to the end-users.
On Wednesday, GCPL reported a decline of 75 percent to Rs 230 cr in its Q4 net profit, while its net sales fell 12 percent to Rs 2,132.7 crore for January-March quarter.
For the financial year, GCPL’s net profit was Rs 1,496.58 crore, down 36.08 percent over the year-ago period and net sales stood at Rs 9,826.51 crore, down 3.86 percent.
GCPL’s performance in India and African markets was impacted during the lockdown, however, in some markets as Indonesia, it has reported growth this quarter despite challenges.
“Inspite of these unprecedented challenges, we actually gained shares in most categories. We have gained around 70 percent of our portfolio, which is quite encouraging,” he further told PTI adding “this reflects that we are positioned quite well for the future.”