Financial Daily from THE HINDU group of publications
Wednesday, Jul 03, 2002
Godrej Consumer to enter new product segments
MUMBAI, July 2
GODREJ Consumer Products Ltd (GCPL) plans to enter new product categories which are synergistic with its distribution network, the company said in its annual report of 2001-02.
"We believe we will continue on the growth trajectory in 2002-03," GCPL said.
However, GCPL's Chairman and Managing Director, Mr Adi Godrej, warned of sluggish market conditions during 2002-03.
"I don't see any significant improvement in the economy or in market conditions. We have to see how well GCPL does in yet another year of economic stress," Mr. Godrej was quoted as saying.
In its toilet soaps segment, GCPL expects FairGlow soap to be a major export driver for the company in 2002-03.
The company said it could register sales growth and garner market share even if the soap market did not grow as its market share was still low.
"Given the low usage of soaps vis-a-vis the total number of bathing occasions in the country, the potential for growing this market is enormous," the report said.
In the hair colour segment, which accounts for 21 per cent of GCPL's total sales, the company is considering new innovations and product launches, particularly in the fashion colour segment, to increase volumes as well as value growth.
The company, which is a market leader in the hair colour segment, said it was committed to increasing the size of the category. "The company has invested in advertising and promotion, introduced new innovations and launched new variants," the report said.
The company has also extended its distribution reach for this product to small towns and rural areas.
In the toiletries segment, the company said it was making efforts to reverse the declining trend.
Toiletries sales fell by 5.2 per cent to Rs 36.3 crore in 2001-02.
According to GCPL, its deodorant business could constitute a new growth area.
GCPL is also looking at variants in the liquid detergents segment as its product under the brand name Ezee is positioned as a woollen care product, and is therefore, seasonal.
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