In a rapidly evolving market landscape, Godrej Consumer Products Limited (GCPL) has marked significant growth through quick commerce channels, according to Sudhir Sitapati, Managing Director and CEO. Over the last two years, the company has navigated the complexities of modern commerce to achieve impressive results, although exact revenue figures from these channels remain undisclosed. Sitapati highlighted the strategic advantage that large, established FMCG brands have on such platforms, citing their limited-inventory nature.
The announcement coincides with GCPL reporting a consolidated net profit of Rs 411.9 crore for the quarter ending March 2025. This performance underscores a robust recovery, driven by strengthened core categories and sustained investment in advertising, despite escalating input costs.
Advertising Investment Remains Crucial
Despite a dramatic 50% rise in palm oil prices, which are vital for GCPL’s soap brands like Cinthol and Godrej No 1, the company maintained its marketing expenditures. The advertising budget grew to Rs 310.07 crore during the quarter, up from Rs 306.29 crore in the previous year.
“We are big believers in advertising,” Sitapati affirmed, emphasizing the importance of long-term brand building over short-term cost savings. He also revealed that GCPL has shifted from traditional media planning methods to a channel-neutral strategy, evaluating all media spends based solely on cost-per-reach, whether digital, linear TV, or connected TV.
For the fiscal year 2025, GCPL reported a consolidated profit of Rs 1,852.3 crore on a revenue base of Rs 14,364 crore. Advertising and publicity expenses stood at Rs 1,369.2 crore. Sitapati noted that while the company may reassess its marketing investment pace, its commitment to brand building remains unwavering.
Operational Challenges and Strategic Response
Operationally, GCPL faces challenges, particularly from a subdued urban demand. The company’s EBITDA for the fourth quarter fell by 9%, landing at Rs 2,160 crore, as rising palm oil prices continued to pressure margins.
Among its business segments, GCPL’s home care division experienced a 14% growth, primarily driven by strong sales in the insecticides category. The Goodknight Agarbatti line has emerged as a market leader, benefiting from seasonal trends and expanding market share. Meanwhile, the personal care business, including hair color and handwash products, saw a 4% increase in the quarter.
Global and Domestic Market Execution
GCPL’s consolidated organic volumes rose by 6% in the fourth quarter, with contributions of 4% from India and 5% from Indonesia. The company’s full-year volume growth was recorded at 4%, reflecting solid execution across both domestic and international markets.
As GCPL navigates these challenges, its strategic focus on quick commerce and steadfast advertising investments continue to drive growth and resilience in a competitive market.
Note: This article is inspired by content from https://www.bwmarketingworld.com/article/quick-commerce-fuels-gcpls-growth-advertising-remains-non-negotiable-556082. It has been rephrased for originality. Images are credited to the original source.