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Quick commerce for the company has registered exponential growth.
Godrej Consumer Products Ltd (GPCL) is bullish on consumer demand in the domestic market to return over the next 12 to 18 months. A capex of ₹700 crore will also be used over the next two years for its new domestic factories and set up a new factory in the international market.
“The capex investment will be to boost the two factories that we have set up in South and North India. While we have launched the factories, several lines are not there. We will also be launching a new factory in Indonesia in the next two years. This is where we plan to use the capex. We are bullish over the demand for several reasons, including food inflation in the country, which immediately impacts the FMCG consumption. Now, as the El Nino is reversed and food inflation has come down between January and March, we should see demand coming back. Secondly, the income tax reduction, the welfare scheme by the government and the pay commission due. These are the reasons why we will see the FMCG revival over the next 12 to 18 months,” said Sudhir Sitapati, Managing Director and CEO of GCPL in a media roundtable.
The Mumbai headquartered company is expecting a double-digit EBITDA growth with palm oil prices reducing, mid to high single digit standalone volume growth and a high single digit consolidated revenue growth.
On Tuesday, the FMCG company posted a ₹411 crore profit with a 6.26 per cent increase in revenue for the quarter that ended in Q4. A surge in palm oil prices impacted the consolidated EBITDA margin of the company. During the quarter, the palm oil prices surged by more than 50 per cent. The company undertook a calibrated price increase of 15 to 16 per cent, owing to the rise in palm oil prices.
Further, quick commerce for the company has registered exponential growth.
“Quick commerce is a channel that we are happy with. It sells all the model sizes of packs in FMCG. The FMCG segment sells small-size packs, mid-size packs and very large packs, and the largest margin is in mid-size packs. Quick commerce sells the mid-size packages from a structured point of view. The channel also has limited inventory,” added Sitapati.
Published on May 7, 2025
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