GCPL, a player, in the moving consumer goods (FMCG) industry has joined forces with Tamil Nadu to establish a state-of-the-art manufacturing facility. The company plans to invest Rs 515 crore over five years. This partnership has been well received by investors as reflected in the increased share prices indicating a 15% year-on-year growth. Notably, the facility aims to promote inclusivity by targeting a workforce that comprises 50% women and includes individuals from LGBTQ and PWD communities. This move is strategically designed to enhance market access, for GCPL.
Godrej Consumer Products Limited (GCPL), a prominent player in the Fast-Moving Consumer Goods (FMCG) sector, has entered into a Memorandum of Understanding (MoU) with the Tamil Nadu government. Under this agreement, Godrej Consumer Products Limited is set to establish a cutting-edge manufacturing facility in the state, with a substantial investment of Rs 515 crore over the next five years. The company disclosed this development in a filing made on Thursday.
In a positive market response, GCPL shares rebounded by more than 1 percent, soaring to an intra-day peak of Rs 1,032 from the day’s low of Rs 1,019.75. Impressively, Godrej Consumer shares have showcased a 15 percent uptick within the current year, further bolstered by a 20 percent rise over the past year.
Godrej Consumer Products recently unveiled its plan to allocate Rs 900 crore for capital expenditure, specifically directed towards the establishment of new manufacturing units in both Tamil Nadu and Madhya Pradesh. These manufacturing sites are slated to become operational within a timeline of 18 to 36 months, and the funding for these projects will be a mix of internal accruals and debt financing.
With an eye on job creation, GCPL envisions generating over 400 employment opportunities in Tamil Nadu through this investment initiative.
Nisaba Godrej, the Executive Chairperson of GCPL, emphasized the company’s commitment to inclusivity in its workforce composition. Notably, the company’s intent is to have 50 percent female representation, as well as 5 percent from the LGBTQ and People with Disabilities (PWD) communities, within this facility.
Nisaba Godrej underscored the significance of this investment, aligning it with GCPL’s long-term strategy to actively engage in India’s growth trajectory. She asserted that the allocation of Rs 515 crore over the upcoming five years mirrors their dedication to providing consumers with affordable, high-quality, and innovative products. Nisaba Godrej also expressed her aspiration for the manufacturing facility to become a beacon of excellence, aiming to secure recognition as one of Tamil Nadu’s pioneering establishments.
The MoU was formalized in the presence of Tamil Nadu’s Chief Minister, MK Stalin, and GCPL’s Executive Chairperson, Nisaba Godrej. GCPL’s upcoming manufacturing facility will be strategically positioned in Thiruporur Taluk, Chengalpattu District, in close proximity to Chennai. This geographical choice strategically positions the facility to effectively serve key markets in the southern region and cater to the needs of neighboring areas.
