Godrej Consumer Amplifies Advertising Spend by 47% Amidst SKU Rationalisation

Godrej Consumer Products Ltd (GCPL) significantly increased its advertising spend by 47% to Rs 1,011 crore in FY24. The company also reduced its SKUs by around 30% to improve operational efficiency. GCPL aims for double-digit volume growth, focusing on brand investment and simplification strategies.

Godrej Consumer Products Ltd (GCPL) has increased its advertising expenditure by 47%, reaching Rs 1,011 crore in FY24 for the domestic market. The company is also undergoing SKU rationalisation, aiming to cut down its stock-keeping units by 30%.

GCPL's Managing Director and CEO, Sudhir Sitapati, articulated that the firm has shifted to a single in-house advertising agency to streamline processes and reduce costs. This shift has yielded a savings of 40 basis points on advertising costs.

Besides boosting advertising expenditure, the company has refined its SKU offerings to align with demand, reducing overall inventory levels and enhancing supply chain efficiency. These strategic moves are part of GCPL's broader aim to achieve double-digit volume growth and promote sustainability across its operations.