Godrej Consumer Products (GCPL), a consumer company listed on the Bombay Stock Exchange (BSE), will increase its hair care business in Indonesia this year. Godrej will also double its distribution to 250,000 outlets in the next 3-5 years to overtake the number of outlets of PT Unilever Indonesia Tbk (UNVR) which reaches 1 million outlets.
Naveen Gupta, the Business Head Indonesia and Middle East of Godrej Consumer Products, said Indonesia are contributing 17% of consolidated revenues and 20% EBITDA of GCPL. As quoted by Moneycontrol.com, the company will manufacture hair care products through its subsidiary Megasari Group. GCPL currently controls 40% market share of household insecticides, 30% market share of air freshener, and a 20% market share in Indonesia wet tissue. The company also plans to issue a new variant for the three segments. Since acquiring Megasari Group in 2010, GCPL’s revenue and net profit grew 300% and 400% in the last six years. At present, GCPL has 110,000 outlets, soaring six-fold as compared in 2010.
Meanwhile, Unilever Indonesia recorded sales of home and personal care products in 2015 amounting to Rp 25.4 trillion, or 69.6% of total company sales. Its sales growth last year amounted to only 5.7% due to the weakening purchasing power. The management of the company said some people divert purchases to cheaper brands, but when it comes to hair care products and skin care, the company is confident it will not lose customers because its products range includes premium brands to economical ones. (*)
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