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Godrej plans Rs 1b investment

MUMBAI — Godrej Consumer, one of India's leading consumer goods makers, said yesterday it plans capital expenditure of about Rs 1.10 billion ($24 million) over the next two years to enhance manufacturing capacities.

The investment will be made towards expanding soap manufacturing and noodle making capacities and also towards capacity expansion of hair colour and toiletries categories, said a statement issued by Godrej Consumer.

Godrej Consumer also proposes to manufacture some of the products of Keyline, a Britain-based firm that it acquired last year, in India as well as introduce some of its own range in countries with a large Indian diaspora.

The Mumbai-headquartered company said it was well positioned to capitalise on the demand for personal care products, especially considering the size and growth expectations from this segment.

Earlier, the company said its net profit in the January-March quarter rose to Rs 301.60 million as compared to Rs 288.20 million logged in the same period of the previous year.

Total income also increased from Rs1.44 billion in the quarter ended March 31, 2005, to Rs1.65 billion in the same quarter of the last fiscal year.

"Our business performance is a result of healthy demand stimulation across both our business segments as well significant enhancement in supply chain efficiencies," said Adi Godrej, chairperson of Godrej Consumer.

"The acquisition of Keyline brands has given us access to several geographies as well as some strong brands and trademarks," he added.

"Going forward we are aggressively pursuing organic and inorganic growth opportunities. The macro environment too is encouraging with increasing spend being by both urban and rural consumers."