Archive · 2 Sep 2026
Aasif Malbari Sets Godrej Consumer Growth Cleanup Plan
Aasif Malbari is the new leader of Godrej Consumer Products.
He says the company has grown, but not as quickly or profitably as it should have.
He wants to improve important older brands such as Godrej No.1, Cinthol and Good Knight.
The company will invest ₹200 crore in a new research and development facility.
It also plans to keep less stock in shops and use better tools to predict demand.
Malbari says the company needs to execute its plans better, especially for fragrances and the Park Avenue brand.
He still supports newer products such as Rizz, Zap and Ninja pet food.
Ninja pet food currently has a ₹10 crore annual run rate and is targeted to reach nearly ₹50 crore by the end of the fiscal year.
Analysts see potential for improvement but remain cautious because former CEO Sudhir Sitapati left unexpectedly.
New CEO Aasif Malbari plans a ₹200 crore research and development facility investment.
GCPL will reduce general-trade inventory from 20 days to 10 days over three quarters.
Malbari said core brands including Godrej No.1, Cinthol and Good Knight have been neglected.
The company aims for double-digit underlying volume growth and immediate profit growth in FY27.
Analysts remain cautiously optimistic but cite uncertainty following Sudhir Sitapati’s sudden resignation.
- Who
- Aasif Malbari, managing director and chief executive of Godrej Consumer Products Ltd, and the company’s analysts and investors.
- What
- Malbari outlined changes to improve volume growth, profitability, execution, inventory management and the company’s core product portfolio.
- When
- Malbari presented the plan three weeks after formally taking charge; the article also references targets for FY27 and FY30.
- Where
- At a call with analysts and investors; GCPL’s Ninja pet-care business began in Tamil Nadu and is expanding across southern India.
- Why
- Malbari said growth and profitability had been modest, core brands had been neglected and the company had not executed some opportunities effectively.
Strategy Under Review
Strategy Defended
Core brands versus newer products
Strategy Under Review
Malbari said GCPL’s core portfolio, including Godrej No.1, Cinthol and Good Knight, had been neglected while the company prioritized new entries.
Strategy Defended
The earlier strategy emphasized innovative “speedboats,” which accounted for 15% of overall revenue in FY26, compared with 11% the previous year.
Execution and growth prospects
Strategy Under Review
Malbari said GCPL had struggled to translate strategy into execution, including in the integration of Park Avenue, and wants stronger delivery and double-digit growth.
Strategy Defended
Nomura credited Sitapati with materially transforming GCPL’s strategy, operations, team and innovation, while Emkay said the new management’s outlook was encouraging.
Management-change risk
Strategy Under Review
Analysts said Sitapati’s resignation was unexpected and lowered valuation multiples to reflect uncertainty from the leadership change.
Strategy Defended
Emkay said GCPL remained well positioned to deliver double-digit earnings growth over the medium term despite near-term uncertainty.
- Research investment
- GCPL plans to invest ₹200 crore in a new research and development facility.
- Inventory reduction
- General-trade inventory is expected to fall from 20 days to 10 days, with a planned reduction worth ₹125-150 crore over three quarters.
- Recent quarterly performance
- In the June quarter, consolidated revenue rose 19% year on year and underlying volume grew 9%.
- Five-year performance
- Underlying volume grew at a 4% compound annual growth rate, while consolidated profit after tax increased 2% annually.
- FY27 ambition
- Malbari said GCPL is targeting double-digit underlying volume growth and double-digit immediate profit growth for FY27.
- Ninja pet care target
- The business had a ₹10 crore annual run rate and is targeted to approach ₹50 crore by the end of the fiscal year, with a ₹500 crore goal by FY30.
- Leadership change
- Sudhir Sitapati resigned as managing director and chief executive with immediate effect, causing GCPL shares to fall 10% on 11 August.