Godrej Consumer eyes 10-fold revenue jump in a decade

September 20th, 2011 - 8:56 pm ICT by IANS  

New Delhi, Sep 20 (IANS) FMCG major Godrej Consumer Products Ltd. (GCPL) Tuesday said it is targeting a 10-fold revenue increase in the next 10 years, adding that it also plans to improve its penetration in rural markets.

“We have a target of growing 10 times over the next 10 years. So, roughly that translates into a CAGR (compound annual growth rate) growth of about 26 percent,” said P. Ganesh, GCPL’s executive vice president and company secretary.

The company has three broad segments — home care, personal wash and hair care which includes products such as hair colour, soap and mosquito repellent.

“Seventy percent of the country’s population resides in rural areas and there the FMCG penetration is very low as compared to the urban India. We are driving our agenda to at least reach out to 3,000-plus population villages and towns,” said Tarun Arora, GCPL’s executive vice president (Marketing).

According to the company, the introduction of the right products depending on the needs of the consumers and the right pricing strategy would drive the penetration of FMCG products in rural markets.

Currently around 30 percent of the company’s overall sales comes from the rural market.

Speaking on acquisitions, Ganesh said that the company was looking for these in emerging markets. “We will look at any acquisition which is a strategic fit to the company.”

Earlier this year, the company picked up a 51 percent stake in African hair care product company Darling Group Holdings. It acquired Indonesia-based Megasari Makmur Group last year.

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