Godrej shifts business focus to attain 25 per cent growth
19 Sep 2009
The Godrej Group has embarked on a strategy that focuses on its consumer products division, property development and foods businesses to achieve an annual 20-25 per cent growth, its chairman Adi Godrej said in Chennai on Friday.
For this, the Rs12,000-crore group has been reorganising its business strategy in the last couple of years, through consolidation of some of its businesses and acquisitions. The group sold its pest control business, Godrej Hicare, early this year to a Denmark-based services company, ISS, for a consideration of Rs100 crore, he said.
Besides, the group, which has a 100 manufacturing facilities in India and abroad, is moving most of its domestic facilities to Himachal Pradesh and the north-eastern states to cash in on the various tax advantages. The land thus vacated is being used to develop residential and commercial properties jointly with the respective group company.
The property division is currently developing close to 100 million sq ft of both residential and commercial properties in Mumbai, Bangalore, Mohali and Delhi. "We are also looking at properties in Chennai for joint development," said Godrej.
On the consumer durables business, he said the company is keen on introducing innovative technologies and new products. For example, it is test marketing small-size (45 litre) refrigerators that work on a Peltier cooler instead of regular compressor. Peltier technology-based refrigerators cannot make ice, they can keep products cool.
Similarly, in the fast-moving consumer goods sector, its arm Godrej Consumer Products Ltd is introducing new products in the existing categories. Though the company is not planning to foray into any new product category, it is not averse to acquiring brands in those spaces, the chairman said.
