Godrej Consumer Products Ltd (GCPL), an FMCG major is expecting double-digit growth in the current fiscal with expansion across segments, according to a company official.
The company has taken multiple steps in order to tap the potential of the modern channels such as e-commerce along with chemist and pharmacy stores that have emerged as important touchpoints for the customer buying FMCG products, after the pandemic.
The company, which is focusing on becoming a fully comprehensive home and personal care company, is also expanding its reach in the rural areas, where it has expanded the network of stockists by 30 percent. As of now, it has 13,000 rural distributors.
As e-commerce was a huge success for most of the companies, GCPL has also witnessed a spike in its sales through e-commerce channels, and going ahead it now foresees online sales to contribute around 10 percent to its total sales in the next 2-3 years. Also, GCPL is going to introduce several digital-first brands, said Sunil Kataria, CEO - India, and SAARC, GCPL.
GCPL, despite the second pandemic wave this fiscal, reported good volume-led growth in the April-June quarter of this fiscal. Its consolidated net sales were up 23.87 percent at Rs 2,862.83 crore.
"We have a pretty good part this year. Our first quarter was very strong. If things remain stable and a third wave does happen or it happens in a mild way, we would be empowering for a double-digit value growth this year (fiscal). We expect the growth to be spread across categories. Personal wash and hygiene would continue to do well. We will have a prime focus on the household insecticides (HI) segment,” Kataria added.
“But there are some fundamental products of hygiene, which will continue to grow well. For example, hand washing is a habit and is going to stay. It spiked during covid wave and it is not going down to pre-Covid level. It will settle at a much higher level than pre-Covid,” he said.