Latest News | Godrej Consumer Expects Revival in FMCG Demand in the Next 12-18 Months

New Delhi, May 7 (PTI) FMCG major Godrej Consumer Products Ltd (GCPL) expects a revival in demand in the next 12-18 months, helped by tailwinds as lower food inflation, normal monsoon and pay commission, said its Managing Director and CEO Sudhir Sitapati on Wednesday.

Besides, the Godrej Industries Group also expects its profit to go up again, once the palm oil prices, a key raw material for its soap business, comes down, said Sitapati in a post earnings media briefing.

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GCPL termed the persistent inflation as a "short-term blip" , where it has passed on only 15–16 per cent of the palm oil price increase to customers.

The company, which owns brands such as Cinthol, Godrej Fair Glow, Godrej No 1, Ezee, Goodknight, HITS, etc, has reported a consolidated net profit of Rs 411.9 crore in the March quarter, along with an underlying volume growth of 6 per cent.

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As per the strategy, GCPL is now focusing on categories that are underpenetrated and offers long runway of growth, such as hair colour, body wash and sexual wellness.

When asked about the outlook, Sitapati said: "FMCG volume growth peaks GDP growth. So if GDP growth is 6 per cent, median volume growth in FMCG should be 7-7.5 per cent. Over the last two years, it has been 4 per cent. So there has been a 2-3 per cent deviation, which I think is a short-term deviation, and it should come back."

Moreover, the government is also planning for a pay commission, which will help in revival of the demand.

"There's also a pay commission, which is due in the next 12 months. We have seen in the past that every time there's a pay commission increase, FMCG does well. So, these are the reasons why, over the next 12 to 18 months, I feel like FMCG may see some sort of revival from where it is," he said.

Besides, El Nino effect took food prices up last year, which had an immediate impact on FMCG consumption.

"So now that El Nino has reversed, price inflation has come down in Jan, Feb, March, and we should see some kind of demand coming back," he added.

GCPL, which operates in the Household Insecticides with brand as HITS and GoodKnight, had a strong double digit volume growth.

For the financial year ended March 31, 2025, GCPL's net profit was at Rs 1,852.30 crore. Total consolidated revenue from operations was at Rs 14,364.29 crore, up 1.9 per cent.

In FY25, GCPL's consolidated organic underlying volume grew at 4 per cent.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)