Tuesday, February 18, 2014

Godrej says 40% of its incremental growth came from innovation

Innovation
Godrej Consumer Products Ltd (GCPL), the maker of Cinthol soap and Hit insecticide, is counting on new launches and product innovation to help it beat the economic downturn and inflation that have prompted consumers to cut back on spending.

The packaged consumer goods maker is also setting up a research and development (R&D) centre in India to come up with innovative products, said Nisaba Godrej, executive director at GCPL who also oversees innovation strategy at the company.

Godrej spends up to 1% of sales on R&D. Since the start of fiscal 2013, GCPL has introduced 10 new products, and plans to launch at least one new product in each quarter.

After the success of a paper-based mosquito repellent called Good Knight Fast Card and Hit Anti-Roach Gel, it is about to launch a third innovation in the insecticide segment called Good Night Xpress. Apart from the insecticides segment, launches are also planned across the personal care product space.

“Our pipeline has enough ideas for two-three years and it’s a matter of sequencing it and phasing it strategically,” said Vivek Gambhir, managing director of GCPL. “If we look at the last nine months, almost 40% of the incremental growth came from these innovations.” 

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