According to newspaper reports, Godrej Soaps is considering a move to hive off its chemicals division. The company is taking steps to focus on the personal and household care segments and plans to emerge as a fast moving consumer goods (FMCG) company in the coming twelve months.
As part of its strategy to focus on the FMCG business the company has initiated 'project funnel' that aims at new product introductions in the coming years. Apart from this, the company has initiated measures to leverage on its distribution strengths. It plans to market imported brands through this network.
The decision to hive off its chemicals business will augur well for the company, as it would then be able to focus on its FMCG business. Moreover, the hive off would unlock value of the company's FMCG business that is currently bogged down by the low profitability of the chemicals division.
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