GCPL ad spends for Q1 FY25 stands at nearly Rs 331cr
The FMCG major has recorded a consolidated net profit of Rs 451 crore for the quarter
Godrej Consumer Products Limited posted a 3.2% YoY jump in ad spends for the quarter ended 30 June 2024. The FMCG giant spent Rs 330.82 crores for advertising in Q1 FY’25, while it had spent Rs 320.39 crores during the same period last year.
GCPL’s consolidated net profit for Q1 FY’25 stood at Rs 450.69 crores, which is a 41.3% YoY increase. During the June quarter last year, the company’s net profit was Rs 318.82 crores.
GCPL’s India business organic volume grew by 8% and reported volume grew by 10%; reported sales grew by 9% YoY.
The company also announced that it is set to enter a new line of business, by venturing into the Pet Care industry. It will enter the Pet Care business in India through Godrej Pet Care (GPC), a subsidiary of GCPL. Pet care is an approximately Rs 5,000 crore category, with a potential of strong double-digit growth for the next few decades. GCPL will be investing Rs 500 crore in GPC over a period of 5 years; GAVL will be the manufacturing and R&D partner.
GCPL plans to commence this business in the second half of FY '26.
“To give a perspective, only around 10% of Indians own a pet of which only 10% feed packaged food and that too only 40% of the time. Calorie conversion in India is only 4%. China, which was remarkably similar to India 15 years ago, has 20% pet ownership with a calorie conversion of 25%,” said Sudhir Sitapati, Managing Director and CEO, GCPL.
Sitapati added that while the opportunity is clear, GCPL believes that its right to win as a group is high. “GAVL, our group company, is the market leader in animal feed and has a good understanding of pet foods R&D, with competitive advantages in the supply chain.”
