GODREJ CONSUMER PRODUCTS
The fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector growing and expanding itself rapidly. Almost 50% of the total sales in India comes from the FMCG sector. Companies under the FMCG sector are allowed for 100% FDI in food processing and single-brand retail while 51% in multi-brand retail.
Godrej Consumer Products Limited (GCPL) is a subsidiary of Godrej Group which is almost 123-year-old having a customer base of approximately 1.15 billion customers with a geographical presence in Asia, Africa and Latin America. Godrej was the first company to introduce a soap without animal fat and also the products were endorsed by Indian freedom fighters such as Rabindranath Tagore, Annie Beasant and C. Rajagopalachari. GCPL introduced Public Provident Fund (PPF) in 1938 which is almost 14 years before the Government of India mandating it.
GCPL started its global journey from the first acquisition of UK based company ‘Keyline’, a personal care brand in 2001 and then ‘Rapidol and Kinky’ – the first African based company dealing with hair extensions and hair care for women of African native in 2008. GCPL also partnered with the Indian Space Research Organization (ISRO) for the first mission to Mars in 2014.
GCPL follow a very well-diversified business model and emphasizes on a very active go-to strategy model with over 200 products in totality. They have separate product lines for different countries. It specializes in understanding individual needs in each of these countries and develops the product to the consumer’s needs. The top 10 brands of GCP contributes to almost 70% of its total revenue.
GCPL implements a global strategy, they like to call ‘3 by 3′ which includes three product categories: home care, personal care and hair care, in three different geographies, Asia, Africa and Latin America. Along with product development, GCPL has maintained enhancement of its distributions and has focused on opening retail stores for maximum customer engagement and shopping experience, for example, “Perfect Stores’ in South Africa.
The Board of directors hasn’t declared any dividend for the year ended on 31st March 2021. GCPL got a 27.10% sequential decline in the consolidated profit and stood at Rs 365.84 crore for the quarter ending March 2021, against the previous quarter at Rs 501.9 crore. Also, gross revenue decreased by 10.62% to Rs 2730.74 crore in this quarter as against Rs 3055.4 crore in the December quarter. And PBT decreased by 33.87% QoQ while gross profit margin decreased by 10.52% QoQ. The current Earning per Share (EPS) stands at 3.58 which declined as compared to the previous quarter but showed an increase against Q4 FY20. Also, the assets showed an incline of 0.29% against the value of assets in the previous quarter.
The Q4 results of Godrej Consumer Products Limited for the year ended on 31st March 2021 were deplorable.
