Tag: Godrej Consumer Products

Godrej Consumer will invest Rs 900 crore to set up manufacturing plants in Tamil Nadu, Madhya Pradesh

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Godrej Consumer Products Ltd. on Monday announced that its board has approved a capital expenditure of Rs 900 crore for setting up new manufacturing sites in Tamil Nadu and Madhya Pradesh. This is being done to cater to the growing customer demand as well as consolidate the manufacturing footprint.

The decision was taken in the company’s board meeting on August 7.

With this additional investment, the company plans to add about 20 percent capacity in home care and personal care categories. The project will be funded through a mix of internal accruals and debt.

Currently, the company’s existing capacity utilisation is at 75-80 percent. The FMCG major said that the new manufacturing sites are expected to be completed in 18-36 months.

In May, the FMCG major announced that the company would raise Rs 5,000 crore through the issuance of non-convertible debentures (NCDs). The plan was approved by the company’s board of directors.

In the June quarter, Godrej Consumer Products reported a 7.6 percent year-on-year (YoY) decline in net profit to Rs 318.8 crore compared to Rs 345.1 crore in the year-ago period. The net profit was impacted due to a stamp duty component.

The total revenue stood at Rs 3,448.9 crore during the period under review, a growth of 10.4 percent against Rs 3,124 crore in the corresponding period of the preceding fiscal.

Shares of GCPL are trading 2 percent lower at Rs 1,010.20. The stock is up 13 percent on a year-to-date basis.

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Godrej Consumer Products Q1 net profit dips 8% to Rs 319 crore, misses estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Homegrown FMCG firm Godrej Consumer Products Ltd (GCPL) on Monday reported a 7.6 percent year-on-year (YoY) fall in net profit at Rs 318.8 crore for the first quarter that ended June 30, 2023.

In the corresponding quarter last year, Godrej Consumer Products posted a net profit of Rs 345.1 crore, the company said in a regulatory filing. A CNBC-TV18 poll had predicted a profit of Rs 428 crore for the quarter under review.

The total revenue stood at Rs 3,448.9 crore during the period under review, increased 10.4 percent against Rs 3,124 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted a revenue of Rs 3,600 crore for the quarter under review.

At the operating level, EBITDA jumped 23.4 percent to Rs 642.8 crore in the first quarter of this fiscal over Rs 520.8 crore in the corresponding period in the previous fiscal.

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EBITDA margin stood at 18.6 percent in the reporting quarter as compared to 16.7 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

For the first quarter of FY24, consolidated sales grew by 10 percent in rupee led by volume growth of 10 percent and constant currency growth of 15 percent year-on-year, it said.

The company’s India business sales grew by 9 percent year-on-year led by volume growth of 12 percent. Also, Indonesia’s sales grew by 20 percent in rupee terms and 15 percent in constant currency terms, year-on-year.

Africa, USA, and Middle East sales grew by 9 percent in rupee terms and 16 percent in constant currency terms, year-on-year. The Latin America and SAARC sales grew by 18 percent in rupee terms and grew by 79 percent in constant currency terms, year-on-year, Godrej Consumer Products said.

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Sudhir Sitapati, managing director and CEO of GCPL, “Our quality of profits has been improving consistently over the last few quarters with reported consolidated gross margin seeing the sharp improvement of 730 bps year-on-year and 80 bps quarter-on-quarter.

“Our EBITDA margin, too, improved by 270 bps year-on-year along with continued working media investments which increased by 79 percent year-on-year,” the company said.

The results came after the close of the market hours. Shares of Godrej Consumer Products Ltd ended at Rs 1,030.70, up by Rs 13.95, or 1.37 percent on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Godrej Consumer Products appoints Aasif Malbari as CFO from August 10

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Godrej Consumer Products Ltd (GCPL) on Monday said its board of directors has approved the appointment of Aasif Malbari as Chief Financial Officer (CFO) of the company, effective from August 10, 2023.

Aasif is currently CFO of Tata Passenger Electric Mobility Ltd and director of Tata Motors Passenger Vehicles Ltd. Sameer Shah, GCPL’s current CFO, will move to a Group role leading consumer investments.

Aasif has been an integral part of the leadership team at Tata Motors since joining in 2018. Prior to that, he worked at Hindustan Unilever Ltd. He is a Chartered Account and Company Secretary by qualification and had secured the All India First Rank in both the CA intermediate and final. He graduated from Sydenham College, University of Mumbai.

Over the 23 years of his career, Aasif has worked in roles ranging from business partnering, buying, planning & logistics, controllership, treasury, and investor relations to group performance management, which have provided him with great experience in multiple FMCG segments in India and across the globe.

During his tenure at Tata Motors, the passenger vehicle India business scaled five times in three years to reach its highest-ever revenue of Rs 50,000 crore and saw a significant financial turnaround.

He led the reorganisation of the business into two new legal entities and subsequently, a $1 billion fundraise in the electric vehicle business at a valuation of up to $9.1 billion.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Godrej Consumer Products to raise Rs 5,000 crore via non-convertible debentures

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Godrej Consumer Products Ltd (GCPL) on Wednesday said the company has decided to raise Rs 5,000 crore through the issuance of non-convertible debentures (NCDs).

The board of GCPL in its meeting held on Wednesday “approved raising of funds by way of issuance of Unsecured NCDs, listed and/or unlisted, aggregating to an amount upto Rs 5,000 crore on a private placement basis in one or more tranches”.

Last month, GCPL announced the acquisition of the FMCG business of Singhania-controlled Raymond along with brands Park Avenue, Kamasutra, and Premium for Rs 2,825 crore.

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The company reported a 24.47 percent growth in its consolidated net profit to Rs 452.14 crore in the fourth quarter ended March 31, 2023, led by volume growth. It had posted a net profit of Rs 363.24 crore in the January-March quarter a year ago.

The revenue from the sale of products of the Godrej group FMCG arm was up 9.6 percent at Rs 3,172.21 crore during the quarter under review as against Rs 2,894.15 crore in the corresponding period last fiscal.

GCPL’s total expenses were at Rs 2,680.39 crore, up 5.73 percent in Q4/ FY23 as against Rs 2,535.06 crore in the corresponding quarter. Its total income in the March quarter was at Rs 3,258.07 crore, up 10.83 percent.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Raymond chief says deal with GCPL to help achieve dream of unbundling & demerging companies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Raymond, the Indian textile conglomerate, is making headlines as Godrej Consumer Products will be acquiring the FMCG business of Raymond Consumer Care for a cash consideration of Rs 2,825 crore. The transaction is expected to be completed by May 10, 2023.

The unbundling and demerging of companies will help Raymond achieve its dream of creating focused businesses with proper governance in place. The company’s decision to invest in engineering and denim businesses, along with its strong real estate core business, positions well for future growth.

In an interview with CNBC-TV18, Gautam Singhania, Chairman of Raymond, said that this deal will help achieve the dream of unbundling and demerging the companies.

He said, “There are many things one — you got great value on the business that you sold. It certainly helps me achieve the dream of unbundling and demerging companies, which is what the market always wanted. They wanted focused companies doing focused businesses. So, we will now have a lifestyle, all come under Raymond Consumer Care, and it will be a single company. And three, we will become net debt free.”

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“There will be two different businesses and it will help me to achieve my dream of putting proper governance in place for both the companies. There will be two listed companies. And to achieve a net debt free is a big thing for us,” added Singhania.

Singhania also mentioned that this decision will help him achieve his dream of putting proper governance in place for both companies. The benefits of this move are clear, as it will allow each company to focus on its core business and streamline operations.

Amit Agarwal, the CFO of Raymond said that the lifestyle business will be demerged along with its assets, liabilities, and debt, and the cash from the deal will be used to repay debt, making lifestyle a debt-free business.

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With the lifestyle business out of the picture, Raymond will have real estate as its core business. The company plans to invest in engineering and denim businesses, where it believes it can excel.

Additionally, both companies will be spending on advertising and marketing to ensure that they are able to reach their target audience and compete in the market.

Raymond has demerged its lifestyle business to Raymond Consumer Care to create a listed entity with pure-play B2C focused lifestyle business and enables it to be net debt free. The demerged entity has sold its FMCG business to GCPL.

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This demerger is a strategic move that will help the company achieve its long-term goals of becoming a diversified conglomerate with a clear and focused business strategy. By separating its lifestyle business and investing in its core businesses of real estate, engineering, and denim, Raymond is well-positioned for growth and success in the years to come.

GCPL operates in the hair care, home care, and personal care categories.

For more details, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Raymond and Godrej Consumer plunge over FMCG business deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Raymond Ltd shares plunged 6 percent on Friday at 12:45pm to Rs 1,612, while those of Godrej Consumer Products Ltd dropped 5 percent after the two companies announced a deal for Raymond’s FMCG business.

The Raymond stock dropped in early trade on Friday to hit an intra-day low of Rs 1,590.80. This wipes out the stock price rally of 6.4 percent seen in the previous session after Raymond announced the restructuring of its business, creating two independent listed entities for lifestyle and real estate segments.

Interestingly, despite the slide in share price on Friday, the stock is still up nearly 46 percent in the past one month.

Meanwhile, shares of Godrej Consumer Products fell for a second day, falling to hit an intra-day low of Rs 920 on BSE on Friday. The stock has lost 5.5 percent in the last two trading sessions after the announcement of the deal with Raymond.

It is also witnessing a spurt in trading volumes, with the number of shares changing hands on BSE jumping by more than 3 times till late morning session on Friday.

On Thursday, Raymond Ltd announced that it was demerging its lifestyle business to Raymond Consumer Care Ltd (RCCL) to create a listed entity with a B2C-focused lifestyle business. This action was initiated with the sale of the FMCG business under RCCL to Godrej Consumer Products for a consideration of Rs 2,825 crore.

Consequently, Godrej Consumer Products would also acquire the trademarks of Park Avenue (FMCG category), KS, Kamasutra and Premium from RCCL. The transaction is expected to be completed by May 10, 2023.

Raymond said that the proceeds from the sale would be utilized to repay debt. Consequently, Raymond Group would become net debt-free with around Rs 1,300 crore surplus cash available as growth capital.

Raymond Ltd will now be a pure play realty business listed entity along with investments in engineering and denim businesses.

The lifestyle business that now moves under RCCL will also be listed and each shareholder of Raymond Ltd will get 4 shares of RCCL for every 5 shares held based on the swap ratio suggested by independent valuers.

Also read: Brands like Park Avenue, Kamasutra to now become part of Godrej Consumer Products

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Godrej Consumer may acquire Raymond’s consumer care business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Godrej Consumer Products is likely to announce the acquisition of Raymond’s consumer care business on April 27, dealers told Moneycontrol. The value of the acquisition, however, could not be ascertained.

Moneycontrol is awaiting responses to email queries sent to both companies. We reported about this deal in our MC Insider edition of April 24.

In its FY22 annual report, the company said it has a presence in over 6,50,000 retail outlets with strong reach in chemist channel, modern trade and e-commerce. Raymond Consumer Care also has a condom manufacturing facility with a 40 crore capacity per annum in Aurangabad, Maharashtra.

On the other hand, Godrej Consumer Products has been focusing on category development by building accessibility, brand relevance and sampling. Its small packs of hair color cream and air fresheners have resulted in market share gains.

Godrej Consumer already has personal care products, but if the acquisition happens, it will mark the company’s foray into sexual wellness, too.

Last year, there were talks of Good Glamm Group, the direct-to-consumer beauty and personal care conglomerate, acquiring Raymond’s consumer business. But, the plan was later abandoned.

At the time, the cash-and-stock deal was pegged at around Rs 2,500-Rs 2,800 crore. As of December 2022 end, Raymond’s net debt stood at Rs 932 crore.

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3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GCPL to invest Rs 100 crore in early-stage consumer fund Early Spring

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG major Godrej Consumer Products Ltd (GCPL) on Thursday said the company will be investing Rs 100 crore in Early Spring, a new Rs 300 crore early-stage consumer fund being set up by Spring Marketing Capital (Spring).

GCPL will anchor the fund in addition to offering its expertise and experience to help founders build strong, sustainable companies.

Spring is creating a skin-in-the-game, brand-first investment franchise that aims to back and support founders who are building the brands of tomorrow, the company said.

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Enabling companies to leverage marketing expertise along with capital, Spring’s first fund of Rs 150 crore continues to invest in companies at Series A and beyond. The Early Spring Fund will be investing Rs 5 crore to Rs 20 crore in each company, from seed to pre-series A stage, it said.

Omar Momin, head of M&A, GCPL said, “In sync with GCPL’s purpose of bringing the goodness of health and beauty to consumers, we are excited to collaborate with new-age companies in the home & personal care and health & wellness space along with Spring Marketing Capital.”

Spring is helmed by a trio of founders – Raja Ganapathy, Arun Iyer, and Vineet Gupta – who bring together decades of investing and brand-building experience.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Godrej Consumer Products expects gradual recovery in demand

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Godrej Consumer Products is likely to report double-digit growth in rupee terms led by mid-single digit volume growth on a consolidated basis. The company also said that growth trends are improving sequentially as well.

In its March quarter business update, GCPL said that it saw steady demand in India, which led to double-digit volume and value growth. It also said that volume growth has exceeded expectations.

The domestic branded business of Godrej Consumer has registered volume and value growth in the teens with both home care and personal care witnessing double-digit volume and value growth.

In the international business, one of the major markets of the company, Indonesia has started to see a gradual recovery in performance, with mid-single digit constant currency sales growth.

“The growth ex-Hygiene is close to double digits. We believe building blocks in Indonesia are in place to drive steady-to-strong performance in the next fiscal year.”

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Godrej Africa, USA, and Middle East (GAUM) witnessed a temporary pause in its strong double-digit sales growth momentum, clocking higher than mid-single digit sales growth in constant currency terms.

“This was due to elections and the impact of demonetisation in Nigeria. However, we have seen a strong sales recovery in March”, the company statement said.

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On a consolidated level, company expects the quality of its profits to see improvement, led by gross margin.

The stock is trading around the 52-week high level of Rs 973, which it hit on March 31. Shares of the company are up 7 percent so far this year. In contrast, shares of peer companies like HUL, Dabur, Marico are down 1-5 percent so far.

Shares of GCPL are off the day’s low, currently trading 0.2 percent lower at Rs 963.15.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow