Godrej Consumer Products posted a better than estimated set of Q1 earnings on August 4. The company’s y-o-y and q-o-q growth and margin have also expanded. Further, the domestic branded volume growth came in at 15 percent, which is the higher end of the estimated range.
CNBC-TV18 spoke with Nisaba Godrej, Chairperson, and Managing Director, Godrej Consumer Products to discuss the numbers in detail and talk about the business outlook post change in management. On the change in the management, Nisaba Godrej said Sudhir Sitapati will be the new CEO and the reason to bring him in was to see more robust growth. “We have given him a good starting quarter to this year and hope he ups the growth and continues to build on our purpose of bringing the goodness of health and beauty to emerging markets,” she said.
Throwing more light on the company’s long-term strategy, she said Godrej deals in categories where a lot of demand is expected. “I think COVID-19 has been a shot in the arm for health and hygiene -– just the hand washing the kind of demand that has been created because of the pandemic. We are well placed with innovative products and we have strong positions in these categories, so we are double-down on growth there,” she said.
The Godrej MD added that with the world getting more digital, it’s high a growth potential area and with the pandemic, it has become even stronger. “So I think e-commerce, D2C, building digital first brands is a key priority for us,” she said.“It is a very volatile time because of the pandemic but for companies that are strong and agile, it is also interesting because there are high consumer needs in different categories and they are shopping and looking for things in different ways. So to tap into those opportunities is what we want to do while delivering double-digit volume growth,” she said.
When asked what would be the one single focus that the company would want the entire team to look at, she said, “Organic growth is on top of the mind and if you look at different geographies, different categories, there is blue ocean opportunities everywhere. So, growth will be the single focus.”
For the entire interview, watch the accompanying video