Godrej Consumer Products bullish on prospects of e-commerce
The company is also planning to create a separate business unit to drive e-commerce sales.
Homegrown FMCG firm Godrej Consumer Products (GCPL) is bullish on the prospects of e-commerce and is expecting 5 percent of its revenues to come from this channel in the next three to four years, a top company executive said.
"We should be at least looking at the 5-odd percent of our business coming from e-commerce in the next three to four years," GCPL chief executive officer - India and SAARC - Sunil Kataria, told PTI.
"We have realized that it cannot happen with e-commerce being part of customer channel. It has to be a separate business in itself," he added. E-commerce is estimated to account for just 1 percent of the FMCG space at present in the country, but Kataria expects it to pick up in the coming years.
"We would like to manage it through a green channel where we focus on not only our core products going through e-commerce in a much more faster way but also enabling a lot of agile decision making which happens within the e-commerce team," he added.
Meanwhile, the maker of Cinthol, GoodKnight, and Hit, among others, is also expecting double-digit growth this financial year led by strong volume growth and new launches. "We are targeting a strong double-digit growth primarily driven by volume. For the past seven to eight years, roughly one-third of our growth has been coming from new product developments.
"We see that again as being a critical driver of the growth in coming years starting from this year," said Kataria. The company is planning to roll out around five innovations across categories in the first half of FY19, followed by another three or four in the second half, according to him.
Kataria further said that there has been a revival in consumption post-demonetization and GST implementation, and rural is growing at a faster clip than urban.
The rural market accounts for around 30 percent of the company's revenue at present, and he said, "By FY22, which is in three to four years, we would like to take it to 35-36 percent."
Kataria expects premiumization to pick up across categories in both urban and rural, that had taken a hit due to demonetization and GST.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)