GCPL to Invest Rs 515 Cr to Build New Factory in Tamil Nadu in 2023
The strategic location of the manufacturing plant would be at Thiruporur Taluk, which is in the Chengalpattu district close to Chennai. Access to vital southern markets will be ensured.
The government of Tamil Nadu and FMCG giant Godrej Consumer Products Ltd (GCPL) inked a memorandum of understanding (MoU) on Thursday to establish a manufacturing plant in the state, requiring an investment of Rs 515 crore over the following five years.
MK Stalin, the chief minister, and Nisaba Godrej, the executive chairwoman of GCPL, were present when the MoU was inked.
Brands including Cinthol, Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight will all have their production operations centralized at the new site. The facility is anticipated to have a sizable impact on GCPL’s overall production capacity. The advantageous location of the manufacturing plant would be in Chengalpattu’s Thiruporur Taluk, which is close to Chennai. It will ensure access to critical southern markets.
“We will generate around 400 job opportunities in Tamil Nadu with the construction of this plant. The facility strives to have a workforce that is both diverse and gender-balanced. For this institution, we want to hire 50% women, 5% members of the LGBTQ and 5% of persons with disabilities, Nisaba stated.
With the extra investment, GCPL intends to increase capacity in the home and personal care categories by around 20%. If necessary, a combination of internal accruals and debt will be used to pay for the project. The company’s board of directors approved a capital investment of ‘900 crore to establish a manufacturing facility in Tamil Nadu and Madhya Pradesh on August 7, 2023.
“This plant will play a pivotal role in accelerating our delivery times, optimizing inventory management, and reducing overall costs,” stated Sudhir Sitapati, managing director & chief executive of GCPL. It will be a production centre for well-known items, enhancing our market presence.
*In a major boost to the manufacturing sector in Tamil Nadu, consumer goods giant GCPL (Godrej Consumer Products Limited) has announced an investment of Rs 515 crore for the establishment of a new factory.*
Godrej Consumer Products Limited (GCPL), a key player in the Fast Moving Consumer Goods (FMCG) sector in India, has continuously looked to expand its operations to cater to the growing demand for its products. The recent announcement is part of the company’s strategic move to enhance its production capabilities and cater to the southern markets more efficiently.
The new factory will be set up in Tamil Nadu, one of India’s industrial hubs, known for its skilled human resources, robust infrastructure, and proactive government policies favouring industrial growth.
A whopping Rs 515 crore, showcasing the company’s commitment to its expansion plans. The factory is expected to generate significant employment opportunities, both direct and indirect, benefiting the local communities.
GCPL aims to integrate advanced manufacturing processes and technologies to ensure the factory is at par with global standards. Keeping in line with GCPL’s commitment to sustainability, the factory will adopt eco-friendly practices and aim for a minimal carbon footprint.
The southern region of India has been a lucrative market for FMCG companies, given its large consumer base and increasing purchasing power.
Faster delivery to dealers and distributors in the south.Improved product availability, reducing lead times. Customizing products based on local preferences and needs.
The Tamil Nadu government sees this as a testament to the state’s industrial-friendly policies and growth potential. The stock market responded positively, seeing this as a move that would bolster GCPL’s long-term growth trajectory.
Creating job opportunities and ancillary industries is a significant boon for the local economy.
Any industrial project of this magnitude requires multiple clearances, which can sometimes be time-consuming.
Skilled human resources are crucial, and GCPL must ensure they offer competitive packages and growth opportunities.
The FMCG sector is fiercely competitive, and GCPL must ensure its products remain relevant and appealing to consumers.
The Rs 515 crore investment by GCPL in Tamil Nadu marks a significant move in the company’s growth strategy. By leveraging the state’s advantages and coupling them with its substantial brand equity, GCPL seems poised for a new era of growth and expansion in the southern markets of India.
