Godrej Consumer expects margins to go up because of these 3 factors

Sudhir Sitapati, MD & CEO of Godrej Consumer Products, anticipates a steady increase in the firm's operating margins over the coming years, supported by various contributing factors: the expected continuous growth in Indonesia, a reshaping of the African market following recent restructuring efforts, and the integration of the acquired Raymond Consumer Care (RCCL) business.

These elements are expected to collectively drive a steady increase in both gross and EBITDA (earnings before interest, tax, depreciation, and amortisation) margins going forward to as much as 23% from around 20% now.

Sitapati elaborated on his ambitions for Godrej Consumer Products' growth, aiming for a steady climb in volume. He said, "We are currently positioned between 5% and 10% in terms of volume growth, and our goal is to steadily inch closer to our target, which stands at a robust 10% annual volume growth."