The problem with Nisaba Godrej's silver linings playbook

With revenue and net profit declining 4% and 3% in the year ended March 2020, GCPL chairperson Nisaba Godrej has stepped in as managing director. GCPL is hoping to ride the hygiene wave through Covid, but that won’t address its long-term challenges

GCPL sells brands such as Cinthol and Godrej No 1 (soaps), Good Knight (mosquito repellent), multiple hair care products, air fresheners, and insecticides

Its revenue and net profit grew at a CAGR of 3.7% and 9.8% between 2015-2020, compared with 32.3% and 21.7% between 2010-2015

With 55% of its business coming from its health and hygiene segments, GCPL has launched a slew of new products, but so have rivals

GCPL’s challenges extend beyond India, as 46% of its business is from geographies such as Indonesia, Africa, the Middle East, and Latin America

When Nisaba Godrej stepped in as the new managing director of Godrej Consumer Products Ltd (GCPL) in July, grey clouds hung heavy over the business.

One of India’s largest fast-moving consumer goods (FMCG) players and the flagship company of the 123-year-old Godrej Group, GCPL’s fortunes had been on the wane for years. This, even as its portfolio of brands has exploded.

In India, the company sells everything from popular soap brand Cinthol to mosquito repellents like Good Knight. It boasts multiple hair care brands, is an investor in a chain of salons and hairdressing academies under the BBlunt brand.

AUTHOR

Seetharaman G

Starting out as a business journalist in 2008, Seetharaman has written about energy, climate change, retail, banking, and technology. He has worked with Business Today, a fortnightly, and the Sunday edition of The Economic Times.

View Full Profile

Others tell you what. We tell you the ‘So What?’

Read articles that decode the most significant shifts happening around business, technology, startups and healthcare. 1000+ articles for subscribers of the India edition. 150+ articles for subscribers of the Southeast Asia edition. Plus premium newsletters that help you make sense of the world around you.

So much journalism in India is superficial.

Articles are generic, almost cookie-cutter in their approach. And they don’t provide enough context on the issues they cover. The Ken is different. I don’t always agree with everything they say but I appreciate their commitment to publishing deeply reported narratives and investigations. Their reporters find new ways to analyze tech among other industries. And that’s always worth a read.

Sid Talwar / Co-Founder and Partner / Lightbox Venture Capital

As entrepreneurs, we thrive on being in the know at all times.

A personal subscription to The Ken was a no brainer. But as startup founders, this isn't enough. Team members also need to be in the know, for everyone handles customer-facing responsibilities and an ecosystem change that impacts customers also impacts us

Kiran Jonnalagadda / Co-founder / HasGeek and Internet Freedom Foundation