GCPL mulls new unit at Seemandhra to make soaps, insecticides

Tags: Consumer
FMGC major Godrej Consumer Products Ltd (GCPL) may consider setting up a new plant in Seemandhra, while continuing the expansion of the existing capacity of plants in North East and Jammu to meet growing demand for its products.

GCPL, which is expecting a stronger second half this fiscal due to increased sentiments in the market, plans to manufacture soaps and insecticides at the proposed new plant.

"If I look at new locations, I would continue expanding in brown field locations at Jammu and North East and in terms of green field locations, the location which we are looking at, depending on the kind of benefits, is Seemandhra," GCPL Managing Director Vivek Gambhir told PTI.

He, however, said the company is awaiting details on what benefits the new state would offer to set up the plant.

"We have substantially expanded our capacity at our Jammu Plant and North-East because of the kind of the excise benefits, we get from those areas. We are also awaiting to see what kind of benefits the government gives in Seemandhara," Gambhir said.

When asked what products were planned to be produced when the new plant comes up, he said: "We have not yet finalised it, but we would look at both - manufacturing of soap and insecticides."

He also said it was too early to put an investment figure for the proposed new plant.

At present, GCPL has manufacturing units at places as Malanpur in Madhya Pradesh, Baddi in Himachal Pradesh, Guwahati in Assam, Jammu, Puducherry and Goa.

Gambhir said GCPL is also open to acquisitions in other geographies.

"Our focus area is largely India, Indonesia and Sub Saharan Africa. We are open for acquisition, but timing depends on when a right deal is for us. Its an important part of our growth strategy for going forward," he said.

The company had acquired controlling stake in Darling Group Holdings in 2011. In 2010, it had bought out Latin America's Issue Group, a market leader in hair-colour in Argentina, Peru, Uruguay and Paraguay. It had also acquired Argentinian hair care company Argencos.


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