FMCG major Godrej Consumer Products Ltd. on Monday announced that its board has approved a capital expenditure of Rs 900 crore for setting up new manufacturing sites in Tamil Nadu and Madhya Pradesh. This is being done to cater to the growing customer demand as well as consolidate the manufacturing footprint.
The decision was taken in the company's board meeting on August 7.
With this additional investment, the company plans to add about 20 percent capacity in home care and personal care categories. The project will be funded through a mix of internal accruals and debt.
Currently, the company's existing capacity utilisation is at 75-80 percent. The FMCG major said that the new manufacturing sites are expected to be completed in 18-36 months.
In May, the FMCG major announced that the company would raise Rs 5,000 crore through the issuance of non-convertible debentures (NCDs). The plan was approved by the company's board of directors.
In the June quarter, Godrej Consumer Products reported a 7.6 percent year-on-year (YoY) decline in net profit to Rs 318.8 crore compared to Rs 345.1 crore in the year-ago period. The net profit was impacted due to a stamp duty component.
The total revenue stood at Rs 3,448.9 crore during the period under review, a growth of 10.4 percent against Rs 3,124 crore in the corresponding period of the preceding fiscal.
Shares of GCPL are trading 2 percent lower at Rs 1,010.20. The stock is up 13 percent on a year-to-date basis.
First Published: Aug 8, 2023 11:08 AM IST
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