Hotline: 1800 102 2007
X
Search Business Opportunities
Feb, 08 2017

​Godrej plans to open two Good Knight manufacturing units in Africa

Godrej sells products across hair, personal and home care, and household insecticide segments in 14 African countries.

Godrej Consumer Products Ltd. is looking to take its most popular mosquito repellent brand Good Knight to Africa as it looks to ramp up its presence in the home care segment.

The company also plans to set up two manufacturing units in Johannesburg, South Africa and Nairobi, Kenya for hair care products in the continent, which contributes one-fifth of its revenue, managing director Vivek Gambhir.

Gambhir stopped short of naming the African countries where it plans to launch Good Knight products though. The Mumbai-based consumer goods major sells products across hair, personal and home care, and household insecticide segments in 14 African countries.

The Africa business accounted for 22 percent of its Rs 2,485.8-crore consolidated revenue in the October-December quarter. Godrej Consumer which brought hair care brand--Strength of Nature, in 2016 is now looking to capitalise on the brand’s presence by producing locally.

Gambhir said the company also expects a strong growth for its household insecticides business in India and Indonesia. The segment, which comprises products under the Hit brand, contributed 25 percent to its standalone revenue in India at Rs 1,279.5 crore in the quarter ended December 2016.

After demonetisation hurt demand in the third quarter, he expects improvement in January-March and a double-digit volume growth in the next financial year.

While announcing the third quarter results, Gambhir had said, “Our business got significantly impacted (due to demonetisation). However, we saw a nice pick-up in December, which registered a positive growth. Growth in January was even better than what we saw in December.”

The company is also expected to benefit from Budget 2017 proposals to boost rural demand. Godrej Industries chairman Adi Godrej had told BloombergQuint after the Budget was tabled that he expected a “positive impact on the demand of Godrej Consumer Products and Godrej Agrovet Ltd.”

The consumer goods company is also going to pass on any further hike in raw material prices, like palm oil in the soap category, said Gambhir.

The company expects its advertising spend, which rose 12 percent in the three months ended December 2016, to remain stable. In the third quarter, its consolidated total income was up 8.7 percent at Rs 2,486 crore, but its net profit fell 4.6 percent year on year to Rs 352 crore.

Comment
image
Related opportunities
  • Bars, Pubs & Lounge
    About Us: A multi-award winning, trendy resto-bar by Rachel Goenka, located..
    Locations looking for expansion Maharashtra
    Establishment year 2000
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 3000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • About Us: Hailing from India, the designer has won many laurels..
    Locations looking for expansion Haryana
    Establishment year 2009
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 1000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Gurgaon Haryana
  • Mobile & Communication/Internet Connections
    About Us: Rocking Deals is the ultimate destination for deal-savvy buyers..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Gyms and Fitness Centres
    About Us: As an introduction, Plus Fittness is an award winning,..
    Locations looking for expansion Maharashtra
    Establishment year 1996
    Franchising Launch Date 2017
    Investment size Rs. 1 Cr. - 2 Cr
    Space required 4000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
Insta-Subscribe to
Entrepreneur
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities