Godrej Consumer Products Ltd (GCPL) is betting on under-penetrated, high-potential categories like deodorants, air care and even sexual wellness to deliver double-digit profit growth in FY26, chief financial officer Aasif Malbari told Moneycontrol in an exclusive interview, as the company is actively shedding its legacy image as a soap manufacturer to reposition itself as a new-age FMCG disruptor.
“This is where the big runway to growth lies,” Malbari said, highlighting the categories like air care, liquid detergents, hair colour, deodorants and sexual wellness. In 2023, the consumer goods company acquired Park Avenue men's grooming product and Kamasutra condom brands from Raymond Consumer Care.
"The real agenda is to increase penetration and have more people get into the category. We do that with a four-pronged approach—ensuring that we distribute, innovate, communicate to consumers and give them access to the product. We use all these levers to bring more and more consumers into the category by offering them product options,” Malbari said.
While soaps still contribute around 35 per cent to GCPL’s overall business, the owner of the Cinthol brand sees limited headroom for growth given the category’s 99 percent penetration in India.
The hygiene and personal care major's growth recipe is straightforward: enter high-potential categories, innovate fast and win over value-conscious consumers. For instance, last year, the maker of Goodknight and HIT mosquito repellent brands expanded its insecticides portfolio with the launch of liquid vapourisers and Agarbatti, incense sticks with repellent properties, developed using an indigenously-patented molecule to counter illegal imports. Priced competitively at Rs 10 per pack consisting of 10 sticks, it is aimed at low-income households. In the March quarter, GCPL’s household insecticides segment posted double-digit volume growth, contributing meaningfully to revenue momentum, as per its investor presentation.
Malbari flagged that innovations like its detergent Fabliquid and Agarbatti contributed close to 50 per cent of FY25 organic revenue growth. India revenues grew 8 percent in the quarter, amid rising raw material costs and inflation, and weak urban demand.
"I think the sweet spot is to kind of ensure really high-quality products, take consumers up on the journey on products, but do it at price points that are magical. So going forward, it will be like innovations, but at a disruptive price point to gain more market share," Malbari said, adding that the company is open to inorganic opportunities but has nothing in the pipeline at the moment.
Outlook
GCPL expects earnings before interest, taxes, amortisation and depreciation to post double-digit growth in FY26, banking on a volume-led recovery and continued premiumisation across its portfolio. “We expect the overall operating environment to improve… Consumer offtake is picking up, and we believe both rural and urban will contribute,” Sudhir Sitapati, managing director and CEO said in a post-earnings media briefing on May 7.
Sitapati was optimistic about a demand revival in the FMCG sector over the next 12 to 18 months, citing macroeconomic tailwinds.
“With El Niño reversing and food price inflation easing in the January-March quarter, we expect rural consumption to pick up. Add to that the cumulative effect of government welfare schemes and the potential boost from an upcoming pay commission—historically, such revisions have significantly lifted FMCG demand,” he said.
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