Godrej Consumer Products’ MD and CEO says that the company will continue strengthening core businesses while rapidly building the categories of the future
Highlighting that the next phase of India’s growth journey will be shaped by a different set of categories, Sudhir Sitapati, Managing Director (MD) and Chief Executive Officer (CEO) of Godrej Consumer Products or GCPL said that portfolio transformation is the most important strategic priority for the company over the next several years.
In GCPL’s annual report for 2025-26, Sitapati added that consumer preferences are shifting towards newer formats and premium solutions. “The task is to do two things simultaneously: continue strengthening core businesses while rapidly building the categories of the future,” he said.
The MD pointed out that over the last four years, the company has taken multiple deliberate actions across three routes: organic innovations, which represent the bulk of the work; inorganic acquisitions in high total addressable market (TAM) categories; and organic geographic expansion.
“The organic story is where the compounding is most visible. Through innovation-led entry into categories like air fresheners, body wash, pet care, and toilet cleaner, three businesses have emerged as disproportionate contributors to GCPL’s growth, our ‘Speedboats’: Godrej Aer, Godrej Fab and Goodknight Agarbatti,” he explained.
The MD added that in FY24, these three accounted for approximately 8 per cent of the company’s India portfolio. Today they contribute around 15 per cent, having grown at 35 to 40 per cent annually.
Inorganic and Geographical Expansion
On the inorganic side, GCPL has entered three high TAM categories. In deodorants and fragrances, its two-year underlying volume compound annual growth rate (CAGR) has been in the mid-teens, a category Sitapati believes has the potential to grow at 25 to 30 per cent annually as India’s consumption metrics evolve
In sexual wellness, performance has been mixed: a strong first year followed by a more difficult second. And in face wash, through the acquisition of Muuchstac, early signals are encouraging, though it is still early,” he noted.
Godrej International, its dedicated business unit, takes innovations to markets across over 75 countries, he added. “Our ambition is to build a meaningful global revenue stream from Indian-origin innovations, expanding our TAM in a way that compounds over time,” he emphasised, while noting that Indonesia requires more work and portfolio transformation is a multi-year commitment that demands patience.
Focus On Category Development
Sitapati noted that Category development is the company’s most distinctive growth engine, built around a four-fold model: making products more relevant, more accessible and more available, and actively enabling trials. The goal is to expand category penetration, create new consumer habits and unlock long-term growth, he added.
“Hair colour is now the fastest-growing FMCG category by penetration. Our Rs 15 Godrej Expert Rich Crème has been a significant driver of our growth within the category. Household insecticides is a category many people assume is mature or plateauing. Contrary to that perception, we believe it is very much a sunrise category, with significant headroom,” the MD mentioned.
In fiscal year 2026, the company’s consolidated sales grew 9 per cent year-on-year, driven by 6 per cent underlying volume growth. The standalone India business delivered 8 per cent sales growth with 6 per cent underlying volume growth.
“Our Africa, USA and Middle East business grew 23 per cent year-on-year. In Indonesia, sales declined by 2 per cent, though operating conditions began to stabilise towards year-end. Consolidated Ebitda grew 5 per cent, with margins at 20.9 per cent despite input cost pressures in the first half, and net profit, excluding exceptional items and one-offs, increased 6 per cent,” Sitapati added.
