Summary:
Godrej Consumer Products’ Indonesian subsidiary has started building a new manufacturing facility in Kendal with an investment of ₹250 crore. The expansion, expected to add 15% capacity over the next 18–36 months, comes amid rising demand in home and personal care categories. Meanwhile, the company reported a muted Q1 performance, with net profit flat and margins under pressure despite double-digit revenue growth.
Expansion in Indonesia
On September 8, FMCG major Godrej Consumer Products Ltd (GCPL) announced that its subsidiary, PT Godrej Consumer Products Indonesia, has begun construction of a new manufacturing site in Kendal. The project will:
- Add about 15% capacity to existing operations.
- Be completed in 18–36 months.
- Involve an investment of ₹250 crore, funded through internal accruals and debt if required.
The new facility will help address growing demand while easing the current 75–80% capacity utilization at its Indonesian unit.
Q1FY26 Performance Snapshot
For the June quarter, GCPL posted a consolidated net profit of ₹452.5 crore, marginally up 0.4% YoY, but below Street estimates of ₹480 crore.
Key highlights:
- Revenue: ₹3,662 crore, up 10% YoY, in line with expectations.
- EBITDA: ₹694.8 crore, down 4%, missing estimates of ₹739 crore.
- Margins: Fell to 19% from 21.7% last year, below the forecast of 20.2%.
Segment-Wise Trends
- India: Revenue up 8%, with 5% volume growth, driven by home care and hair colour.
- Africa: Strong contribution to overall topline growth.
- Soaps: Weak performance due to price-volume rebalancing.
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