Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Godrej Consumers: Annual report extracts - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 7, 2009

    Godrej Consumers: Annual report extracts

    In 2008, Godrej Consumer Private Limited (GCPL) had been one of the fastest growing FMCG companies in India. This was achieved through a mix of organic and inorganic growth. The portfolio of GCPL consists of soaps, hair colours, toiletries and liquid detergents.

    The consolidated sales of the company grew by 27 % YoY in FY09. This was on the back of robust growth in sales and launch of new products. However, net margin as a percentage of sales fell to 12.4% due to rising raw material prices.

    In the domestic market, Godrej No. 1 soap became the market leader in Gujarat, while maintaining its leadership position in Uttaranchal, Punjab, Haryana and Himachal. Godrej is the market leader in the hair colouring category with 33.5% market share. This category registered sale of Rs.2.3 bn for FY09 on the back of new colour launches. Among toiletries, shaving creams and deodorant spray had performed well.

    The company in FY09 increased its focus on rural areas, so much so that the company expanded its distribution and supply chain with focus on this market. The products of the company are now available in 3 m outlets of which 0.2 m outlets were added during the year. Furthermore, launch of new unit packs targeting the rural areas increased the acceptance of the company's products. GCPL used Doordarshan for advertising in the rural areas which led to strong results.

    Exports of GCPL were Rs.194 m with sales in 33 countries. UAE, Sri Lanka, Bangladesh, Thailand, Afghanistan, South Africa and Mauritius were the key geographies where GCPL exports.

    On the international side, sales for Keyline Brands improved on the back of new launches in the Cuticura Hand Hygiene range along with relaunch at a higher price point of the skincare brand Aapari. Rapidol (Pty) Ltd. which markets hair colours grew by 12% thanks to Inecto –Super Black hair colour and due to Inecto Powder hair colour and henna. Godrej Global Mideast FZE which distributes soaps, hair colours and toiletries grew by 11% with toilet soaps growing by 28% and hair colour by 55%. Kinky Group which was acquired this year offers a variety of products which included hair pieces and hair accessories like hair gels and hair sprays clocked sales of Rs.513 m.

    New products launched in FY09
    Brand Country Product
    Godrej No. 1 India Starberry & Walnut
    Godrej FairGlow India New variants
    Cinthol India Cinthol Deo Musk
    Cinthol India Cinthol Fresh Aqua
    Godrej Expert Hair India New Range
    Liquid Detergent India Ezee Bright and Soft
    Cuticura Hand Hygiene UK Hand Foamer
    Cuticura Hand Hygiene UK Kids Foamer
    Cuticura Hand Hygiene UK Kids wipes
    Cuticura Hand Hygiene UK Crackling Mousse
    Hair Colour Canada Hint of Tint
    Inecto Powder Hair Colours South Africa New variants
    Cinthol Deo Spray Middle East New range

    For FY10 GCPL is expected to continue to its growth by launch new products, increasing its distribution and through acquisitions.

    As per Godrej Consumer's latest June quarter result analysis, the company's strategy is paying off. Consolidated advertising costs for the company increased by 26% to help the company post robust volume sales growth and increase its market share in its soaps and hair colour categories. For June quarter, half of Godrej's sales came from rural area which now contributes 38% of sales of the standalone entity. The company has indicated that it has ear marked Rs.10 bn for acquisitions and is presently scouting for suitable targets both in the domestic and the international market.



    Equitymaster requests your view! Post a comment on "Godrej Consumers: Annual report extracts". Click here!


    More Views on News

    Marico: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


    • Track your investment in GODREJ CONSUMER with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks



    Detailed Quarterly Results With Charts