Sunday, July 31, 2016

GST, 7th Pay commission to help increase demand in remaining year: GCPL

GST, 7th Pay commission to help increase demand in remaining year: GCPL

New Delhi: After witnessing a sluggish first half, FMCG firm Godrej Consumer Products Ltd (GCPL) expects demand to be better in the remaining period of the year with implementation of 7th Pay Commission and passing of GST likely to increase consumption.

“Overall, we should see a boost to consumption in India, following the implementation of the 7th Pay Commission and the passing of GST. We are hopeful that the second half of the year will be better than the first,” GCPL Managing Director Vivek Gambhir told PTI.

He further said: “We are hopeful to see an uptake in demand with an improved monsoon”.

The company, which last week reported a consolidated net sales of Rs 2,120.22 crore in the Q1 of financial year 2016-17 and a net profit of Rs 244.27 crore, is extending its offering in the personal care and household insecticides category.

“We already have natural platforms in both hair and soap, we are now we are building the natural Household Insecticides category as well. Neem has strong Indian roots and it is known to be effective and safe to use,” he said.

Besides, GCPL would “remain focused on driving our innovation momentum and continue to invest heavily behind our new product launches,” he added.

The company which has recently launched Cinthol deostick for men and women has plans to extend the brand into a male grooming brand.

“While these are early days, the response has been very encouraging. We will continue to invest behind this and extend Cinthol into a male grooming platform,” Gambhir said.

During this quarter, 50.09 per cent of GCPL sales were contributed from the international markets and rest 49.90 was from the domestic market.

GCPL’s revenue form its Indonesian business was Rs 376.20 crore and the company expects it to be better in the coming quarters.

“Our Indonesia business has delivered good sales growth despite the macroeconomic slowdown in the country. Given the changes the government is introducing we hope to see better growth going ahead,” he said.

PTI

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