Godrej investing ₹600 cr in expanding chemical units in Gujarat and Maharashtra

Our growth plans are big. Last year, our turnover was ₹2,500 crore and our profits were ₹250 crore and in the first nine months of the current financial year, we have crossed last year’s turnover. We are targeting our company’s turnover to double to ₹5,000 crore in next 3-4 years. We have a factory in Valia in Gujarat which accounts for 65 per cent of our total production. The remaining production happens at our second unit at Ambernath near Mumbai. Recently we acquired a company in Kheda (a unit of Shree Vallabh Chemicals), which is an ethoxylation plant. We acquired this company as our future plan is to grow four-folds in the Specialty Chemicals business. We did not have the Ethoxylation capability earlier and the acquisition will help in faster expansion of our portfolio and introduce cost-effective products in the market. We acquired one more unit, Savannah Surfactants Ltd in Goa which is into food additives and emulsifiers. 

We manufacture oleochemicals, surfactants, specialty chemicals and biotech products that are used for the home and personal care industry. They are all produced largely with renewable feedstocks from vegetable oils.

We have committed ₹600 crore for future expansions, and of these, ₹500 crore are in Gujarat. This is one reason why Gujarat is important for us. The investments in Gujarat will be used to expand our unit at Valia from its present capacity of 2 lakh tonnes per annum to 2.75 lakh tonnes per annum. The expansions are expected to be completed by 2027. Roughly, 70 per cent of the investments for Gujarat will be for fatty alcohol, and the balance 30 per cent will be used for expanding production of fatty acids, speciality chemicals and biotech.

We will also be expanding our unit in Ambernath where the expansions will be focussed on Speciality Chemicals that will be used for home and personal care industry.

We are working actively on acquisitions. In the last 12 months, we have acquired two companies. In the coming months there will be more news on acquisitions. We are not looking to simply increase our market share by acquiring one of our competitors. But, our focus is on creation of value and expanding into new segments, geographies, product lines or technology.

Due to the overall geopolitical situation, the consumption is on downside in both India and abroad. Secondly, companies are cautious to make additional investments. So the speed of investments have slowed down compared to two years ago. Similarly, with regard to the retaliatory tariffs by the US, the industry has decided to pause and wait. This wait and watch is for certainty. From the information we have, I do not think there is any reason to become nervous.

Our exports are 30 per cent of our total turnover. We export ₹1,000 crore worth of products to 60 countries. Of the total exports, 15 per cent are to the US market. Japan, South Korea and Chile are also large markets which one can focus on.