FMCG major Godrej Consumer Products Limited (GCPL) has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government. As a part of this MoU, GCPL will establish a state-of-the-art manufacturing facility in the state, making an investment of Rs 515 crore over the next five years, the company said in a filing on Thursday.

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Shares of GCPL recovered over 1 percent to hit an intra-day high of Rs 1,032 from days' low of Rs 1,019.75. Godrej Consumer shares have gained 15 percent so far this year, while it has risen 20 percent in the last one-year period.

Recently, Godrej Consumer Products said it has earmarked a capex of Rs 900 crore, which will be used for setting up new manufacturing units in Tamil Nadu and Madhya Pradesh.

The manufacturing sites are expected to come on stream approximately in 18-36 months and the projects will be funded through a mix of internal accruals and debt.

The FMCG major said that it will create more than 400 job opportunities in Tamil Nadu with this investment. "This facility aims to have an inclusive and gender balanced workforce. Our plan is to employ 50 percent of women for this facility along with 5 percent of employees from LGBTQ and people with disability (PWD) communities," said GCPL Executive Chairperson Nisaba Godrej.

"The investment of Rs 515 crore over the next five years is in line with GCPL’s long-term strategy to actively participate in India's growth journey and our unwavering commitment to deliver affordable, best quality and innovative products to consumers,” Nisaba Godrej added.

Nisaba Godrej further added, “We aspire to develop this factory as a lighthouse unit and strive to be amongst the first few factories in Tamil Nadu to achieve this recognition.”

The MOU was signed in presence of Tamil Nadu Chief Minister MK Stalin and GCPL Executive Chairperson Nisaba Godrej.

According to Godrej Consumer, the upcoming manufacturing facility will be strategically located in Thiruporur Taluk, Chengalpattu District near Chennai. This strategic choice guarantees access to crucial southern markets and facilitates meeting requirements in neighbouring regions, it said.

"This stateof-the-art plant will play a pivotal role in accelerating our delivery times, optimizing inventory management, and significantly reducing overall costs. It will serve as a manufacturing hub for a wide range of our renowned brands and products, such as Cinthol,Godrej Expert Rich Crème, Godrej Selfie Shampoo Hair Colour, and Goodknight, bolstering our market presence further. More importantly, our commitment extends beyond business expansion; we are dedicated to making a positive impact on the community and fostering sustainable development in Tamil Nadu," said Sudhir Sitapati, MD & CEO, Godrej Consumer.

CM Stalin said, "This development holds great promise as it is set to have a positive impact on our local economy by generating employment opportunities and driving our state's industrial growth.”

First Published:Aug 10, 2023 1:55 PM IST