The Hindu Business Line : Godrej Consumer Products expanding global footprint

New Delhi May 15 Godrej Consumer Products Ltd (GPCL), in an effort to globalise, has embarked on an aggressive expansion plan with major focus on personal care and household care segments.

"It is our aim to globalise GPCL's presence and we have planned to primarily focus on the household care and personal care segments, especially hair colours," said Mr H.K. Press, Executive Director and President, GPCL. The company, which currently has a 31.3 per cent share in the hair colour segment that grew at 11 per cent over the company's last quarter, owns brands such as Color Soft, Renew and Godrej Hair Dyes.

"Each of our hair colour brands is meant for a different section of the society and we are going to work around the brands and their positioning when we launch them in the international markets," said Mr Press.

In fact, GPCL has already marked its foray into several international markets through a slew of acquisitions.

In 2005, the company acquired the UK-based £15-million Key Line brands, that give it rights to manufacture and market brands such as Erasmic, Aapri and Nulon in India. The company, however, will not be marketing the English company's Cuticura brand in India.

"Though we do not have the rights to market Cuticura in India, we will market the brand in the West Asian countries and the UK," said Mr Press. Through its acquisition of South Africa-based Rapidol, GPCL has also gained access to the entire African Continent, where it plans to market its hair colour brands in a major way. "We have already started exporting our hair colour brands to the African continent," he added.

Forming joint venture

GPCL is also in the process of forming a joint venture with Swedish SCA Hygiene Products AB with an investment of about Rs 20 crore.

While the joint venture will be called Godrej SCA Hygiene Ltd, it will mark GPCL's foray into the paper absorbents segment that deals in products such as diapers, sanitary napkins and incontinent products.

"In fact, with the formation of this company, we have already brought our diaper brand Snuggy under its fold," Mr Press said.

"These acquisitions not only give us the ability to start manufacturing our Godrej brands in those countries, they also give us the backup of the distribution network they have."

On launching brands of the acquired companies in India, Mr Press said, "Launching those brands in India depends on how people here identify with them. That is why we are launching Erasmic shaving gels in the country, since the brand existed in the country some time ago, and people are aware of it."

"We are also evaluating several possibilities of foraying into products under the personal care segment such as tooth paste and hair oils. This is a segment that holds immense potential and we want to develop it," he said.

Ad spend

GPCL, which grew at a 35 per cent CAGR in 2006-07, spends almost 25 per cent of its turnover on advertising and promotions.

While 63 per cent of its turnover comes from its soap sales that include brands such as Cinthol and Fair Glow, hair colours contribute 26 per cent to the revenues, making the two segments the growth drivers of the company.

More Stories on : Outlook | Personal Products | Overseas Investments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Natco expanding retail presence in US

UB Group brews up a deal for Whyte & Mackay

TVS Motor gearing up to take on Japanese biggies

Gotham Comics' investment plans

HCL wooing new customers thru ad campaign

Interim hike in petrol dealers' commission

Pvt non-life insurers expand share to 35% in 2006-07

Manufacturers upset over retail discounts

A.V. Birla group set to unveil new retail brand

Italian brand Diesel ties up with Arvind Mills

Godrej Consumer Products expanding global footprint

HLL rejigs management committee