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business | IST

Inflation conditions challenging in some businesses, rewarding in others, says Nadir Godrej

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From the sidelines of the SBI Banking & Economics Conclave, CNBC-TV18’s Shilpa Ranipeta spoke to Nadir Godrej, Chairman of Godrej Industries. It his first interview since he took over as chairman.

From the sidelines of the SBI Banking & Economics Conclave, CNBC-TV18's Shilpa Ranipeta spoke to Nadir Godrej, Chairman of Godrej Industries. It was his first interview since he took over as chairman and he talked about the potential split in the Godrej group.
He said discussions are going on, nothing has been finally decided yet.
On inflation, Godrej said, "For companies like Godrej Consumer and many of their competitors, like you heard the HUL also speaking today, it is challenging as the raw material prices increases. But as we go along, I think it will be easier to take those price increases and businesses will be able to do better.”
He added that inflation conditions are challenging in some businesses and rewarding in some.
He added, "It is challenging in some businesses, but it's very rewarding in other businesses like oil palm, where we had the beneficiaries of these high prices, and oil palm businesses really firing extremely well. The government has announced new policies to promote the oil palm business, we are very enthused by these policies, and shocking that India has to import a huge amount of edible oil. We hope that with this new policy in 10 years or 15 years India will be self-sufficient in edible oil and certainly, we will strive to expand our oil plan business to help this endeavour."
"In other businesses, for instance, soya meal prices shot up very high, extremely high, then the government allowed the imports. But here our innovation has helped us because we have technology whereby we can use cheaper meals which were hard to use earlier but we have developed technology to use those meals and they are excellent substitutes for soya meal. So innovation is also a way to tackle inflation”
On the oleochemicals business, Godrej said, “Oleochemicals business has benefited extremely from both the inflation as well as the shortage of containers. Imports have slowed down and we have been able to increase our production to fill in the gap."