Godrej Consumer Products Opens New Manufacturing Plant Near Chennai.

Godrej Consumer Products Ltd (GCPL) inaugurated its first integrated greenfield manufacturing plant in Chengalpattu district, Tamil Nadu, on Monday. The ₹515 crore facility, spanning 27 acres within CapitaLand OneHub Chennai, aims to enhance the company’s production capacity and will generate over 1,000 direct and indirect jobs.

The plant, inaugurated by Tamil Nadu Chief Minister M.K. Stalin in the presence of Nadir Godrej, Chairperson of Godrej Industries Group, will manufacture a variety of fast-moving consumer goods (FMCG), including Cinthol soap and Goodknight mosquito repellent. The ceremonial activation of the production line marked the rollout of the first Cinthol Original soap bar.

Speaking at the event, Chief Minister Stalin highlighted that Godrej joins leading FMCG firms such as Britannia, Dabur, and ITC in setting up production facilities in Tamil Nadu. He emphasized that such investments will boost the state’s attractiveness for further industrial expansion.

The manufacturing facility is the company’s 31st plant, with its next unit planned for Gwalior. "The Gwalior plant will be similar in terms of investment and products," said Sudhir Sitapati, Managing Director and CEO of GCPL. The Chengalpattu plant is expected to generate revenue of ₹2,000 crore after the first phase is completed in 12-15 months.

Godrej Group had signed a memorandum of understanding (MoU) with the Tamil Nadu government on August 10, 2023, and completed the factory in just 13 months. At least 50% of the workforce will be women, with 5% representation from LGBTQI communities and people with disabilities, Nadir Godrej stated.

Industries Minister T.R.B. Rajaa underscored the significance of the investment, noting that the factory will manufacture products in Tamil Nadu for both domestic and global markets.

GCPL chose Chennai for its superior infrastructure, including port connectivity, and strong government support. "We found dealing with Guidance Tamil Nadu almost like working with a corporate entity," Sitapati noted. The location was also strategically selected for its access to raw materials, which are imported from Malaysia and Indonesia.

The Chengalpattu plant will cater to southern Indian markets, as well as export to North India, the U.S., Latin America, and Africa. On market trends, Sitapati observed that while urban sales slowed last quarter, rural demand showed resilience, predicting that rural recovery will outpace urban recovery in the near future.

HBL