Godrej Consumer (GCPL) seems not so affected by the economic slowdown, unlike many of its peers. Driven by a high double-digit growth in the household insecticide (25%) and hair care (24%) business, GCPL’s net sales went up 23% compared with the corresponding quarter last year to Rs1,957 crore for the September ended quarter.
Vivek Gambhir, MD, GCPL, believes that the nature of categories and high level of innovation have made the company resilient to slowdown. “There is a lot of scope for penetration in categories such as hair care and insecticide and this has helped us grow. On the other hand, we have been innovating a lot and that has helped. In fact, almost 40% of our incremental growth comes from our new innovation.”
An analyst at a foreign brokerage house said, “It is because of the high level of innovation that the company has managed to record good growth in its two key segments. And this has helped, considering that the soap business has grown only 4% in volume terms.”