The Hindu Business Line : Godrej to expand soap business

The company plans to make an investment of around Rs 75 crore to enhance soap production. Mr Hoshedar K. Press, Executive Director and President of GCPL, said: "A large part of the investment is for a new soap factory in Himachal Pradesh which will enjoy both income tax and excise benefits."

The company would also be adding to its fatty acid and soap noodling capacity in Malanpur wherein it would invest Rs 20 to 25 crore. The capital investment in the soap business would take place over the next 12 months, and cater to the capacity requirements for at least three years, an industry observer pointed out.

The company expects growth in sales to drive its revenues. Mr Press said, "Our soap sales growth will continue at over 20 per cent over the next few years."

In the toilet soaps category, GCPL has maintained its position as the second largest player with a 9.5 per cent market share. According to analysts, the company's three `power brands', Cinthol, Godrej Fair Glow, and Godrej No. 1 continue to perform well in the sector with over 12 per cent growth.

Eyeing acquisitions

The company is also on an acquisition spree. After the successful takeover of UK toiletries maker Keyline Brands Ltd last October, the company is now on the look out for firms in the hair colour segment. "We want to globalise our hair colour business and want to acquire companies in the Far East and Latin America," Mr Press said.

The company is also betting on powder fashion hair colour to drive growth.

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