Godrej Consumer expects double digit growth in FY15

In the last three years, company has been growing about 28 to 29% annually

FMGC major Godrej Consumer Products Ltd (GCPL) is looking at a double digit growth this fiscal on the back of uptake in urban demand amid positive sentiments in the market.

"The consumer sentiment is up and we all are sensing a stronger optimism... We are hoping that the second half of the year will be much stronger than the first half," GCPL Managing Director Vivek Gambhir told PTI.

In the last three years, GCPL has been growing about 28 to 29% annually, Gambhir said.

"So, we are very much on our plan as for this aspiration is concerned. It would come from organic growth mixed by the organic business to grow among teens. The remainder of the growth would come from acquisitions," he added.

GCPL, whose 70% sales come from urban areas, is expecting an uptake in the segment.

"We are beginning to start seeing a gradual uptake in urban demand and also in the premium segment. Urban would do better than rural sales," he said.

Gambhir further said that GCPL's penetration is still low in the rural segment but it will expect higher growth rate in the future as there are enough opportunities in the space.

"What we try and do for the rural market is to innovate formats of packaging in order to make the price point more accessible for rural consumers. This is the customised strategy for the rural market," he added.

Over apprehensions of decline in rural sales due to below-average monsoon forecast, Gambhir said monsoon situation has picked up now and threat of El-Nino has been downgraded.

"Last year monsoon was excellent but it did not impact rural sales all that much. And for us the impact is much more direct as it also depends on food inflation. It's still early to say," he said.

In FY 2013-14, GCPL had reported a consolidated revenue of Rs 7,602.41 crore.