Godrej Consumer Products to invest Rs 515 cr to set up manufacturing plant in Tamil Nadu, generate 400 jobs

FMCG heavyweight Godrej Consumer Products Limited (GCPL) on Thursday it has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government under which it will develop a state-of-the-art manufacturing facility at an investment of Rs 515 crore over the next five years. In a regulatory filing, the company said the facility will create over 400 job opportunities in the southern state.

The manufacturing facility is scheduled at Thiruporur Taluk, in Chengalpattu District of Tamil Nadu. The manufacturing sites are expected to come on stream approximately in 18-36 months and the projects will be funded through a mix of internal accruals and debt.

"We are delighted to announce the strategic partnership with Godrej Consumer Products for the establishment of their new plant with an investment of Rs 515 crore in our state. This development holds great promise as it is set to have a positive impact on our local economy by generating employment opportunities and driving our state's industrial growth,” said M K Stalin, Chief Minister of Tamil Nadu. 

"This facility aims to have an inclusive and gender balanced workforce. Our plan is to employ 50 percent of women for this facility along with 5 percent of employees from LGBTQ and people with disability (PWD) communities," said GCPL Executive Chairperson Nisaba Godrej.

The memorandum of understanding (MoU) was signed between the State government and the Godrej group at the Secretariat. V Vishu, Managing Director, Guidance Tamil Nadu, the state’s nodal agency for investment promotion and single-window facilitation, and Sudhir Sitapati, MD and CEO, Godrej Consumer Products Limited, exchanged the MoU in the presence of Chief Minister MK Stalin.

"This state-of-the-art plant will play a pivotal role in accelerating our delivery times, optimizing inventory management, and significantly reducing overall costs. It will serve as a manufacturing hub for a wide range of our renowned brands and products, such as Cinthol,Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight, bolstering our market presence further. More importantly, our commitment extends beyond business expansion; we are dedicated to making a positive impact on the community and fostering sustainable development in Tamil Nadu," said Sudhir Sitapati, MD & CEO, Godrej Consumer.

Shares of Godrej Consumer Products were trading at Rs 1,025.45, up by 0.62 per cent, at 3 PM.

On August 7, Godrej Consumer Products reported a drop in its consolidated net profit of Rs 318.82 crore for the April-June quarter of FY24. The profit dropped 7.6 per cent from Rs 345.12 crore to in the same quarter of the previous financial year to Rs 318.82 crore in Q1 FY24.

Total revenue of the company came at Rs 3,448.91 crore, rising 10.36 per cent from Rs 3,124.97 crore in the year-ago quarter, the company said in a regulatory filing.

Earnings before interest, tax, depreciation and amortization (EBIDTA) were at Rs 642.8 crore, growing by 23.4 per cent and the EBIDTA margin was at 18.6 percent, up 240 basis points from the year-ago quarter.