We are big believers in advertising, says GCPL’s Sudhir Sitapati

Despite a rise of more than 50% in palm-oil prices last year, GCPL, the maker of soap brands such as Cinthol and Godrej No.1, which rely on the commodity as an ingredient, chose not to reduce advertising expenditure, instead absorbing the spike in input costs. Around 40% of the company’s India business comes from soaps.The health and beauty-focused consumer-goods firm reported a consolidated net profit of Rs 411.90 crore for the quarter ending March 2025, compared with a loss of Rs 1,893.21 crore in the same period a year earlier.Advertising and publicity expenses rose slightly to Rs 310.07 crore this quarter, up from Rs 306.29 crore in the fourth quarter of fiscal year 2024. “As a company, we are big believers in advertising,” Sitapati told a reporter, noting that the firm’s advertising spend has remained steady for the past three years.Sudhir SitapatiAsked about GCPL’s rural strategy by a journalist, he said many of its products are currently used in urban India, and the company aims to expand their reach into rural markets. The strategy rests on three pillars: distribution, pricing and promotional marketing.For rural audiences, the company relies heavily on mobile advertising, citing high mobile-phone penetration in these regions. It also uses wall paintings for visibility. In urban markets, GCPL focuses on linear and connected television.Although acknowledging the impact of premiumisation and a short-term lull in demand, Sitapati expressed confidence in a recovery over the next 12 months. He cited the government’s tax-rate reductions, welfare schemes and the next pay commission as likely drivers. “Every time there is a pay commission increase, FMCG does well,” he said.In a presentation outlining GCPL’s long-term strategy, he identified key growth categories for the future:Air fresheners: Godrej AerLiquid detergents: Godrej FabHair colour: Godrej Expert Rich CrèmeBody wash: Cinthol Body WashDeodorants and perfumes: Park AvenueSexual wellness: KamasutraWhen asked whether the company would prioritise distribution or advertising for these emerging categories, Sitapati said, “In India, it will be advertising, and it is the same in Indonesia. But if you ask me about Africa, it will be distribution.” He added that distribution is largely a solved problem in India.

Despite a rise of more than 50% in palm-oil prices last year, GCPL, the maker of soap brands such as Cinthol and Godrej No.1, which rely on the commodity as an ingredient, chose not to reduce advertising expenditure, instead absorbing the spike in input costs. Around 40% of the company’s India business comes from soaps.

The health and beauty-focused consumer-goods firm reported a consolidated net profit of Rs 411.90 crore for the quarter ending March 2025, compared with a loss of Rs 1,893.21 crore in the same period a year earlier.

Advertising and publicity expenses rose slightly to Rs 310.07 crore this quarter, up from Rs 306.29 crore in the fourth quarter of fiscal year 2024.

“As a company, we are big believers in advertising,” Sitapati told a reporter, noting that the firm’s advertising spend has remained steady for the past three years. Asked about GCPL’s rural strategy by a journalist, he said many of its products are currently used in urban India, and the company aims to expand their reach into rural markets. The strategy rests on three pillars: distribution, pricing and promotional marketing.

For rural audiences, the company relies heavily on mobile advertising, citing high mobile-phone penetration in these regions. It also uses wall paintings for visibility. In urban markets, GCPL focuses on linear and connected television.

Although acknowledging the impact of premiumisation and a short-term lull in demand, Sitapati expressed confidence in a recovery over the next 12 months. He cited the government’s tax-rate reductions, welfare schemes and the next pay commission as likely drivers. “Every time there is a pay commission increase, FMCG does well,” he said.

In a presentation outlining GCPL’s long-term strategy, he identified key growth categories for the future: Air fresheners: Godrej Aer Liquid detergents: Godrej Fab Hair colour: Godrej Expert Rich Crème Body wash: Cinthol Body Wash Deodorants and perfumes: Park Avenue Sexual wellness: Kamasutra When asked whether the company would prioritise distribution or advertising for these emerging categories, Sitapati said, “In India, it will be advertising, and it is the same in Indonesia. But if you ask me about Africa, it will be distribution.” He added that distribution is largely a solved problem in India.

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