Godrej Consumer expect broad-based growth in FY24

New Delhi: Godrej Consumer Products Ltd is unfazed by the prospect of competition from Reliance's entry into the FMCG sector, having seen multiple disruptions, including the high-profile entry of Baba Ramdev's Patanjali, according to a top company official.

The company is betting on its brand equity, wide range of portfolios and innovations to ward off competition, Godrej Consumer Products Ltd (GCPL) CFO Sameer Shah said. "We have seen multiple disruptions in the FMCG sector. In 2005-06 every one said that modern retail would take the sector by storm with private labels and FMCG players would find it very difficult to compete. After 17-18 years nothing has changed with modern retail play,” he said.

Shah was responding to a query on how the entry of Reliance in the FMCG segment would change the competitive landscape of the sector.

"It's too early to call on,” he said adding, “We have seen Patanjali a few years back. Five to six years back the expectation was they would take on every FMCG player and hence going would be tough. But we have not seen that kind of headway or any high competitive intensity. Let's see how it shapes up over a period of time.” According to Shah, GCPL's 45 per cent of revenue comes from the Indian market, while the rest is contributed by the global markets such as Indonesia and Africa. Billionaire Mukesh Abani-led Reliance Industries through its step-down unit Reliance Retail has entered into the FMCG segment. It articulates ambitions to be a relevant player in the USD 110-billion FMCG (Fast Moving Consumer Goods) segment.