Godrej Consumer Products Ltd (GCPL), which earns close to half of its revenues from overseas operations, is looking to take leadership position in the emerging markets it operates in.
"From 15% back in 2010, our international business now contributes about 47% of total consolidated revenues. This expanding footprint is driven by our focused three-by-three strategy that entails presence in three business categories – personal wash, haircare and home care – in three geographies – Asia, Africa and Latin America – to become an emerging markets FMCG leader," Adi Godrej, chairman, GCPL, said in the company's annual report for fiscal 2014.
The homegrown household and personal care company saw its consolidated net sales grow to Rs 7,583 crore and consolidated net profit to Rs 760 crore for fiscal 2013-14 from Rs 2,041 crore and Rs 340 crore, respectively in 2009-10. International sales as a percentage of consolidated sales in 2013-14 was 47% as against 15% in 2009-10.
At present, GCPL is number one player in air fresheners and wet tissues category in Indonesia, and hair colour across various countries in Africa and Latin America. A leader in hair extensions segment in Africa, the company is number two player in household insecticides in Indonesia.
"We have made good progress on the next phase of the integration of the Darling (hair colour venture) businesses, which has enabled us to take our presence in Africa to the next stage. We are now strengthening and building processes and talent infrastructure for sustainable growth. Our UK business continues to outperform and, despite market challenges Indonesia and Latin America businesses have also performed well," said Godrej.
Interestingly, over two-thirds of the company's team members are now based outside India and while GCPL products are currently sold in more than 60 countries globally.
In line with its growth strategy, the company is looking to provide quality products at affordable prices. This approach, Godrej said in the report, will help the company capitalise on the potential of the emerging middle class in India and other emerging markets.
GCPL follows a multi-local model, which is centered on values-based partnering and operational autonomy at the local level.
Vivek Gambhir, managing director, GCPL, said over the last few years, the company has successfully integrated acquisitions. "We are now working on defining the roadmap to drive our international business to full potential. We have acquired strong local brands and are working with the teams in these countries to accelerate growth momentum.
"Our focus is on sustaining the entrepreneurial spirit that has made these companies successful, while providing the benefits of strong processes and scale that GCPL brings," Gambhir said in the annual report.