Foreign markets give us half our revenues: GCPL
FMCG major Godrej Consumer Products Ltd (GCPL) now gets around half of its revenue from international business, as it expands its presence in the overseas market.
GCPL, which has presence in Latin America, Africa, and Asian markets including Indonesia, has cornered 48 per cent of revenue from international business in the last fiscal.
"International business now contributes to nearly half of our consolidated revenues," the company said in an investor's presentation.
The home-grown firm had clocked a strong sales of Rs 9,600 crore in India in 2016-17.
Besides, GCPL said it would continue "growing presence in Asia, Africa and Latin America" in segments as home care, hair care and personal care products. The company said it has gained strong foothold in the African hair care market with the acquisition of 100 per cent equity stake in Strength of Nature(SON) in April last year.
In the last fiscal, GCPL had reported 16 per cent sales growth globally. Out of its total international sales, Africa, which also include SON, contributed 43 per cent, followed by Indonesia at 33 per cent. Latin America and the UK contributed 12 per cent and 9 per cent respectively, while others were 3 per cent. On the domestic front, GCPL said it has delivered consistent, healthy volume led ahead of the category sales growth despite the imp act of demonetisation.
In Indonesia, the company said the growth was impacted by softness in household insecticides. However, constant currency growth witnessed a 9 per cent growth.
African market sustained double-digit organic constant currency growth while Latin America delivered competitive performance in a challenging operating environment, it added.
In Europe, the company said it saw mixed performance with weak sales performance but robust margin expansion.
The company ranks among the largest household insecticide and hair care players in emerging markets. In segments as household insecticides, it is the second largest player in Indonesia and is expanding footprint in Africa. pti