From the desk of
Adi Godrej

"New categories and new
distribution channels will
further drive penetration and
increase consumption in
our focus categories"

- Adi Godrej

From the desk of Adi Godrej

Dear Shareholders,

I am pleased to share with you that GCPL has delivered another year of competitive and profitable growth. Despite some category and geography specific challenges, we have done well, which is a reflection of our clear strategic portfolio choices, backed by strong execution. We have also delivered robust operating profits across businesses, while investing in our brands and innovations. We continue to outperform both the FMCG sector and the home and personal care categories that we participate in. Overall, this positions us well to achieve our ambitious growth aspirations of becoming an emerging markets FMCG leader.

As we look ahead, I feel confident of strong growth in the medium to long term. Over the last year, the government has made several efforts to further revive the Indian economy. Demonetisation, while causing challenges for a few months, has led to a significant push towards digital financial transactions, as well as improving compliance. Post the remonetisation of currency, we are seeing a good recovery in FMCG demand.

The passage of the Goods & Services Tax (GST) bill is a major achievement. As I have mentioned earlier, the implementation of the GST will be transformative for the Indian economy. A single national value added tax will be one of the most significant reforms since the liberalisation of the Indian economy in 1991. I expect this to result in a marked boost to consumption and GDP growth. Steps have also been taken to further digitise and streamline the economy, with initiatives such as Aadhar linked subsidy schemes, UPI and Startup India, that have improved transparency and reduced red tape.

Globally, the macroeconomic environment continues to be impacted by
socio-political and economic uncertainty. As a result, our international geographies are grappling with the dual challenges of weakening growth and depreciating currencies. Our teams are addressing these concerns with a sharp focus on innovation, customer centricity and cost optimisation.

That said, we believe there continue to be tremendous opportunities in emerging markets, especially in Asia, Africa and Latin America. These are among the fastest growing consumer markets in the world and home to around 80 per cent of the world's population. The emerging middle classes and rising per capita income will translate into more consumers seeking branded, quality products at affordable prices. New categories will emerge and new distribution channels will improve availability and enhance the buying experience. This will, in turn, further drive penetration and increase consumption in our focus categories.

I would like to take this opportunity to extend my gratitude to all our stakeholders for their continued interest, faith and encouragement through the years. My deep appreciation to all our business partners, vendors and other business associates for their support and contributions. Many thanks to all the various central and state government authorities, for their continuing support to our business. To all our team members, whose passion, commitment and hard work, have made us successful - a special thank you for building GCPL into a company that we can all be proud of.

It has been a privilege to serve as Chairman during a period when we have delivered strong results and transformed our company. I am grateful to our Board for their thoughtful and planned approach to executing our succession plan. The foundations of GCPL are extremely strong. This is an opportune time to transition to a new Chairperson, who will work closely with Vivek to lead the company in its next phase of growth.

I feel very confident that Nisa will be an outstanding Executive Chairperson. As you know, she has been a key architect of GCPL's strategy and transformation over the last decade. I have worked closely with her and seen her deliver tremendous results. She is an inspiring leader who will always uphold our values.

I will continue to serve the GCPL Board and contribute in whatever way I can to GCPL's success and long term growth. I look forward to your continued partnership to help achieve our exciting aspirations.