Godrej Consumer spends over Rs 1,000 crore on advertising in FY24

This is coupled with a 30% reduction in SKUs as part of a rationalisation process.

Godrej Consumer Products (GCPL) increased its advertising investment by 47% to Rs 1,011 crore in FY24 for the domestic market. This comes alongside a 30% reduction in SKUs as part of a rationalisation process. GCPL, which targets double-digit volume growth, is directing more resources towards brands, automation, and SKU rationalisation, with a strong emphasis on simplification, as highlighted in its latest annual report.

"In line with our strategy of category development, we have made significant investments in advertising. We were the fifth largest advertiser in India in 2023, up from number 17 in 2021. We are also increasing our investments in distribution," said GCPL managing director and CEO Sudhir Sitapati.

GCPL's expenditure on 'Advertising and Publicity' reached Rs 1,011 crore for the financial year ending March 2024, marking a 47% increase from Rs 687.34 crore the previous year. "In India, we are now spending over Rs 1,000 crore on advertising, compared to ₹350-400 crore a few years ago, which represents a substantial increase. We found that our categories were being managed differently around the world, with varied advertising agencies and production methods," he added.

"From multiple agencies, we moved to a single agency, which is our in-house agency, the LightBox," Sitapati explained. He added that "from multiple executions, we are moving to a single execution, shooting differently in the same location with different models for different countries."

On a consolidated basis, including foreign markets like Indonesia, Africa, the US, and others, GCPL allocated Rs 1,336.12 crore to advertising and publicity. Additionally, Sitapati noted that "we have reduced our SKUs overall by roughly 30 percent."

According to the report, GCPL has focused on resource optimisation and operational efficiency by implementing a stock-keeping unit (SKU) rationalisation strategy across its product lines. This approach prioritises high-performing products in line with the company's strategy.