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Expect rural to contribute 35-36% by FY22, says GCPL

Sunil Kataria CEO for India and SAARC of GCPL on the launch of Godrej's new product Mr Magic Powder to liquid handwash.

Sunil Kataria CEO for India and SAARC of GCPL said we expect rural to contribute 35-36% by FY22.
“We have created a Rs 15 product, which will give you a handwash for a month. This is roughly around 40 percent of the pricing of the liquid handwashes in the market. This Rs 15 sachet we believe has the power to change the way Indians take to handwashing,” he said.
Speaking about revenues and absolute numbers, he added that, “I am looking at a double-digit market share. I would like to move to at least a 10 percent market share of even further grown and large liquid handwash category. So my whole estimate would be that I would like this product to be at least a Rs 200 crore product in the next three years.”
“There are commodity inflation happening across and a lot of products across many Indian fast moving consumer goods (FMCG) companies get – the raw materials do get imported. So the first impact that we are experiencing is obviously with the dollar and crude both going on a higher end. So there is an impact which is happening on the crude oil basis which forms an input into many raw materials that is happening. There is an inflation which we are seeing on the commodity end and we are just waiting for some time, we have not taken a call of price increases, we are going to do staggered price increases,” said Kataria.
“Last year we had done a double-digit value growth and a very strong volume growth of around 8-9 percent last year as well. So we are just carrying that trend forward. Q1 has been phenomenal in terms of 14 percent volume growth. So I think we clearly see that the consumption growth story to continue, economy has come back very strongly especially in the FMCG and within FMCG, rural space and I expect volume growth to continue in double digits. Roughly around 30 percent of our business comes from rural and that has changed over the last two-three years as well. This percentage is changing gradually. The percentage does not change suddenly in a year’s time but we expect that by 2022, we want this to be around 35-36 percent of our business,” he further mentioned.