Nisaba Godrej, the Executive Chairperson of Godrej Consumer Products Ltd (GCPL), has sustained the company’s business amid faltering volume offtake in the country’s vast FMCG market. While urban consumption trends in the mass market segments followed the path of distressful rural market sales, Godrej’s leadership skills ensured that GCPL continues to grow. In FY24, its sales grew 5.8% year-on-year to surpass Rs 14,000 crore. Its bottom line, however, suffered due to higher finance costs and the implications of a major acquisition.
The `2,825-crore acquisition of Raymond’s Park Avenue and Kamasutra brands may have dented GCPL’s profitability in FY24 (it posted a net loss of `560 crore), but it is a major step forward under her leadership. The deal has expanded GCPL’s total addressable market as it ventures into new categories like deodorants, premium men’s personal care products and sexual wellness, which have high growth potential. Investors have rewarded the stock, with GCPL’s market capitalisation surging more than 32% to more than `1,30,428 crore on the BSE by October-end.
@arndutt