It was the year 2018 when Godrej Consumers Products Limited (GCPL) came up with ready-to-mix handwash  which sought to cut down on plastic sachets. The product clicked and gradually acquired over 20 percent market share in the handwash segment. 

Four years down the line, the company has come up with a ready-to-mix bodywash to reduce plastics usage further. The new product-Godrej Magic Bodywash priced at Rs 45 is a concentrate that can be poured into a 200 ml water bottle to make it a usable liquid soap. 

The product, which is a unisex one, is likely to appeal to the aspirational middle class which has not been able to use liquid soap due to the cost factor. Besides, it is expected to strike a chord with the younger population which is increasingly becoming conscious about environment and plastic pollution. 

Sitapati says that super concentrated products are available abroad but they are meant for niche populations due to high cost, while Magic Bodywash is a low-cost product. Company hopes that common consumers will adopt it. 

A part of the 122 year-old Godrej group, the Mumbai-based Godrej Consumer Products Limited (GCPL) is among top FMCG companies in India having revenue in the tune of Rs 12,000 crore. It is associated with prominent brands like Hit, Godrej No.1, Cinthol, BBlunt, Aer, Good Knight among others. In the soap segment, it has a market share of around 32 percent. 

On sustainability measures

Godrej Magic Bodywash is made up of 10 percent plastic used in a regular body wash packaging; the product consumes 19% of the energy required to manufacture a regular bodywash.

The concentrate sachets will require 44% less diesel consumption on transport resulting in 44% lower carbon emissions as compared to transporting a regular body wash, GCPL says. 

Sitapati, an IIM Ahmedabad alumnus and the author of ‘The CEO Factory’, emphasizes on three global mantras to curb plastic pollution-reduce, reuse and recycle-and insists that the company has been doing its best to reduce plastic waste and carbon footprint. 

“We will spend ?100 crore over the next three years towards mass awareness initiatives linked to endorsing an environment-conscious lifestyle. This includes a significant expansion in the company’s CSR commitment towards reducing plastic waste apart from money spent on branded and unbranded communication towards highlighting sustainability issues. Besides, we will invest in research and innovation to make our packaging more eco- friendly.” 

GCPL has taken several measures to reduce its plastic usage, reuse it and recycle, Sitapati says, adding, “In the last one decade, our emissions are down by 20 percent, and now  30 percent of our energy comes from renewable sources. We dont send any waste to landfills. The company recharges twice the amount of water that we use. We have been ranked as the fourth most sustainable company,” Sitapati insists. 

He further explains, “It is important for us to adopt sustainable behavior. Greenhouse gasses are a concern worldwide, but for consumer oriented companies, plastic waste should also be the focus.”

“GPCL recycles over 25,000 tonnes of plastic yearly. We are working hard to move from multilayer plastic packaging to monolayer packaging and then to the recyclable one. Under the CSR efforts, we are setting up recycling facilities across India. In Pondicherry the whole town is adopted for plastic collection and recycling,” he says. 

Although he admits that what the companies do in the factories is a fraction of the impact that consumers make. “The magic bodywash is a game changing product. We hope that consumers will move to the ecological options. After all, Indians are fundamentally environment conscious.”

“With bodywash, we would be able to reduce far more plastic waste. The concentrate sachet has cut down 90 percent of plastic packaging. We aim to use biodegradable packaging in future, although it is not easy,” he says. 

On benefits of green measures 

The concentrated sachet is cost-effective for the GCPL as well because packaging and transportation costs will come down drastically, Sitapati points out. 

Sitapati explains how moving from plastic to biodegradable packaging of Good Knight (mosquito repellant) didn’t only help GCPL to save Rs 20 crore pieces of plastic annually but also saved Rs 60 crore on packaging cost.

“This is one great example to reduce plastic use. Usually, the actual cost of most products is about 20 percent only, 80 percent is frills that can be cut down. It is a green discount, not premium. So product economy and ecology both go hand in hand,” he says. 

On marketing plans

“A television commercial is already out. Our marketing plan primarily aims to create awareness about the product and plastic pollution. However, habit change takes time. We have to educate consumers, tell them about dilution. We  have roped in actor Shah Rukh Khan for the same,” Sitapati says. 

“This is a long-term project. Magic handwash also took 8-9 months to pick up. We became the market leader in the handwash segment in three years. Hands are just one percent of the body. Hence, we have come up with bodywash which is the largest category in personal care,” he says.  

On sales projections

“We have no sales targets because if you don't meet targets, you tend to withdraw the products. Magic bodywash is an innovation, it is just a baby.”

On inflation

Godrej capitalized on the high demand for hygiene products with over 10 new launches in July 2020. It expanded its Protekt brand to home, kitchen and personal care products, including dishwasher liquid, surface disinfectant spray, fruit-and- vegetable wash, soaps, masks, and surface and skin anti-bacterial wipes.

The firm continued to gain market share even during the pandemic time, led by micro-marketing initiatives to fuel growth. 

However, a surge in inflation over the past few months and depreciation of rupee have emerged as cause of concern for entire India Inc. as their input cost has gone up. While consumer demand has declined, many FMCG companies including GCPL were forced to increase the prices or reduce the packet sizes to sustain.  

Sitapati is not concerned about inflation though. “I think inflation is a short term phenomenon. We have seen high inflation in the past as well. The bigger issue is that due to the Covid-19 pandemic, income of the unorganized sector is badly affected. People’s savings have been wiped off. People have started earning again but now they want to save the money by cutting down expenses of the discretionary category. It is not just a rural phenomenon. The entire working population with uncertain income has been affected. This segment is huge.”

He adds, “We take a holistic approach while increasing the prices. It is done on the long term basis, not in a knee jerk reaction.”

Countries like Sri Lanka, Chile and many others have undergone recession; I hope it doesn't happen in India, Sitapati says.