GCPL eyes Rs 2,000 cr more revenue in 4 yrs

FMCG player Godrej Consumer Products (GCPL) is expecting to generate an additional revenue of up to Rs 2,000 crore in the next three to four years following the integration of Godrej Household Products with itself.

The firm, which had undertaken an exercise under Project Neo for the integration of Godrej Household Products (GHPL), had formed a 100-member team to work on key initiatives with a view to reap benefits by 2011 to 2015.

"We are looking at Rs 1,500 crore to Rs 2,000 crore in terms of topline revenue growth in the next 3-4 years because of this merger and on the costs (synergy) side about Rs 200-250 crore by FY15," GCPL Managing Director A Mahendran said at an analyst meet.

Last fiscal GCPL had recorded a net sales of Rs 2,442.64 crore after the integration of GHPL's revenue.

In March this year, GCPL had announced that it has completed the merger of GHPL with itself. This is subsequent to the board of director's approval in October last year.

"We have already captured some (of synergistic benefits) in 2010-2011, we will capture a lot of these benefits in 2011-2012 and some may go into 2012-2013 onwards," GCPL Chairman Adi Godrej said.

He said already the marketing and supply chain, and international operations have been integrated and "also we are more or less on the verge of completing the integration of IT, infrastructure, and support functions".

"Each of the company has international operations but there is tremendous synergy in the domestic operations both in cost cutting and in leveraging each other's strengths," Mahendran said.

While Godrej Household Products -- which is the erstwhilwe... Sara Lee -- sells household insecticides like Good Knight, HIT, Jet and hair gel Brylcreem, GCPL is engaged in personal care brands like Godrej No.1, Cinthol and hair care brands like Godrej Expert.