Inflation may hurt food biz, focus on cost cutting: Godrej

Written By Unknown on Selasa, 19 November 2013 | 12.44

Nov 19, 2013, 10.28 AM IST

Adi Godrej, chairman of Godrej Group says the group would be equally focused on its local and international businesses, but sees the international business growing faster.

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Inflation may hurt food biz, focus on cost cutting: Godrej

Adi Godrej, chairman of Godrej Group says the group would be equally focused on its local and international businesses, but sees the international business growing faster.

Like this story, share it with millions of investors on M3

Inflation may hurt food biz, focus on cost cutting: Godrej

Adi Godrej, chairman of Godrej Group says the group would be equally focused on its local and international businesses, but sees the international business growing faster.

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Consumption demand slowed down in the September quarter, and cost cutting holds key to maintaining profitability, says Adi Godrej, chairman of Godrej Group.

Also Read: Godrej Inds to do well despite sluggish economy: Adi Godrej

In an interview with CNBC-TV18, Godrej says high inflation has impacted mainly the food segment. He says FMCG companies in general will be able to absorb inflation by improving efficiency.

As for other businesses of the Godrej Group, he sees huge potential in house insecticides and hair colour as these are 'highly underpenetrated'.

He says the group would be equally focused on its local and international businesses, but sees the international business growing faster.

Godrej says he is open to acquisitions in India, provided it offers good value.

Below is the verbatim transcript of Adi Godrej's interview on CNBC-TV18

Stay tuned for more…


Godrej Consumer stock price

On November 19, 2013, at 11:10 hrs Godrej Consumer Products was quoting at Rs 860.00, down Rs 15.55, or 1.78 percent. The 52-week high of the share was Rs 977.40 and the 52-week low was Rs 661.25.


The company's trailing 12-month (TTM) EPS was at Rs 15.92 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 54.02. The latest book value of the company is Rs 81.12 per share. At current value, the price-to-book value of the company is 10.60.


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