Godrej Consumer Products Tamil Nadu FMCG unit eyeing US, LatAm markets

The plant officially started operations with the ceremonial activation of the production line by Chief Minister M K Stalin, who marked the occasion by turning on the first production run

Godrej Consumer Products (GCPL) on Monday commenced operations at its first integrated greenfield manufacturing plant in Chengalpattu district, Tamil Nadu, with an investment of ₹515 crore. The company aims to develop the unit into an export hub targeting markets like the US, Latin America (LatAm), and Africa, among others.

 

This is the largest single investment made by GCPL to boost its production capabilities. “We want to develop this into an export hub, and the Chennai port is nearby. We have businesses in the US, LatAm, and Africa. We also have good raw material availability,” Sudhir Sitapati, managing director and chief executive officer of GCPL, told Business Standard. The plant officially started operations with the ceremonial activation of the production line by Chief Minister M K Stalin, who marked the occasion by initiating the first production run.

 

“The facility was swiftly operationalised in a record time of just 13 months, showcasing our efficient governance," said T R B Rajaa, Minister for Industries in Tamil Nadu.

 

In 2024, GCPL conducted the groundbreaking ceremony for its state-of-the-art manufacturing facility.

 

Sitapati further added, “The Chengalpattu plant represents a transformational shift in our manufacturing capabilities, serving as GCPL’s first fully integrated facility under one roof. This advanced facility will produce products from some of our best-selling brands, including Cinthol, Godrej No. 1, GoodKnight, Godrej Aer, and Godrej Expert Hair Colour. We foresee this factory generating ₹1,500 crore in turnover once all planned production lines are fully operational. Beyond being just a manufacturing hub, this facility is set to be a key driver of innovation, productivity, and sustainability, positioning GCPL for continued growth and success in the future. We commend the Tamil Nadu government for its progressive and futuristic vision, which has enabled us to achieve this milestone.”

 

“Designed with cutting-edge automation and digitisation, the plant features highly automated, high-speed production lines that operate 2x to 4x faster than our current lines, upgrading production efficiency. The plant will embrace Industry 4.0 technologies, including Internet of Things for real-time data analytics, artificial intelligence, and machine learning to optimise processes,” said Saurabh Jhawar, head of product supply organisation for India and Saarc (South Asian Association for Regional Cooperation), GCPL.

 

The plant has created over 1,000 direct and indirect jobs. The facility plans to employ 50 per cent women and 5 per cent of employees from LGBTQIA+ (an acronym that stands for lesbian, gay, bisexual, transgender, queer, intersex, asexual, and more) communities and persons with disabilities.

 

“It is adding pressure. The price rise is due to two reasons: a rise in international palm oil prices and an increase in import duties in India. I hope that will stabilise soon. It is putting short-term margin pressure on us,” Sitapati said when asked about the rise in raw material prices. He expects consumption to increase in the coming quarters.