Mumbai: Godrej Consumer Products Ltd is planning to increase its focus on India’s rural markets over the next three years, as it expects the region to benefit from the growth in agriculture and infrastructure.
“We are looking at doubling our coverage in small towns to 8000 from 4000 over the next three years. Village-coverage will go up to 50,000 from 15,000 during this period,” managing director Dalip Sehgal said on a conference call with analysts.
The personal products maker is looking to increase its share of revenue from the rural market beyond the current 38%, chairman Adi Godrej said after the analyst call.
“Our rural share in haircolour is higher than our urban share. Soaps are exactly the opposite. We are trying to see that our soaps’ rural sale is at least as high as our urban share,” he said.
Godrej Consumer’s first quarter net profit rose 78% to Rs696.8 million, beating expectations, helped by higher sales and a fall in raw material costs.
The company makes and sells several brands across soaps, hair care and toiletries segments and is best known for names such as Cinthol, Godrej No 1 and Godrej Expert Hair Dye.
“The firm, which bought South African hair brand ‘Kinky´ last year, will continue to scout for acquisitions,” Godrej said.
“We are looking for acquisitions in hairclour internationally and in India, we would look at any good brands in personal or household care,” said Godrej.