Godrej Consumer Products shares in focus on Rs 250 crore investment in Indonesia manufacturing facility

Shares of Godrej Consumer Products Ltd (GCPL) are likely to be in the spotlight on Tuesday after the company announced that its material subsidiary, PT Godrej Consumer Products Indonesia, has commenced construction of a new manufacturing site at Kendal, Indonesia. The project involves an investment of approximately Rs 250 crore, signalling a strategic expansion in one of its key international markets.

According to a regulatory filing, the new facility is aimed at meeting growing consumer demand and consolidating the company’s manufacturing footprint in Southeast Asia. The proposed investment will enhance the company’s production capacity in the Home Care and Personal Care segments, where its Indonesian arm already operates.

Currently, PT Godrej Consumer Products Indonesia is operating at a capacity utilisation level of 75% to 80%. With the new facility, the company plans to increase capacity by approximately 15% in the same product categories. The expansion is expected to go live within a time frame of 18 to 36 months.

The Rs 250 crore investment will be funded through a mix of internal accruals and debt, depending on the requirement at various stages of the project. This strategic move reflects GCPL’s long-term confidence in the growth potential of its Indonesia business, which has historically been one of the strongest international contributors to the company’s portfolio.

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In the last one month, shares of Godrej Consumer Products surged 3.77%, while the same closed flat at Rs 1,230.25 on the BSE on Monday.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times