Godrej to invest Rs 315 cr, optimistic on realty biz

The Godrej group today said it would invest around Rs 300-315 crore in setting up the fourth soap plant, and a chemical and a cosmetic unit to boost organic growth beside keeping the door open for acquisitions.

"We will set up a new soap plant in a coastal area and a new chemical unit costing tentatively Rs 150 crore each and a cosmetic plant that may cost around Rs 15 crore," Godrej Group Chairman Adi Godrej told reporters.

The soap unit would be executed by listed entities Godrej Consumer Products (GCPL) and the chemical unit by Godrej Industries.

The company is yet to decide on the location after it decided not to go ahead with it in Andra Pradesh. The cosmetics unit would come up in the Northeast.

The company, meanwhile, is likely to hike the prices of soap by 3-5 per cent.

Speaking about its group companies, Godrej said the realty business was the fastest growing segment and in the next five years it could become single largest company in the group, but declined to elaborate.

Godrej Properties, which currently contributes to close to 10 per cent in the group and had gone public in 2009-10, is developing 90 million square feet of properties across the country.

Godrej Household Products (erstwhile Godrej Sara Lee) is planning to introduce products to replace air freshener Ambi Pur and Brylcreem hair creams — following their global acquisition by Procter & Gamble and Unilever, respectively.

"We will replace Ambipur air freshner as we have domestic knowledge and the Indonesian acquisition will help us in doing so. But, Brylcreem is yet to move out from the portfolio," Godrej said.

Godrej had bought 51 per cent stake of Sara Lee in the Godrej Sara Lee JV which did not comprise brands sold to other companies.

Godrej has received the value of Ambipur, but not for Brylcreem yet.

The chairman said the company is integrating the operations of the GCPL and GHPL. Merger between the companies was also not ruled out by Godrej.

Speaking about acquisitions, Godrej said the group would focus in Asia, Africa and South America in the area of haircare, household insecticide and personal wash.