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Godrej Consumer Products Arm to Invest ₹250 Crore in New Indonesia Plant

Written by: Team Angel OneUpdated on: 9 Sept 2025, 6:42 pm IST
Godrej Consumer Products Indonesia begins building a new plant to add 15% capacity in home and personal care, investing ₹250 crore for growth and consolidation.
Godrej Consumer Products Arm to Invest ₹250 Crore in New Indonesia Plant
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Godrej Consumer Products Limited has announced a significant development through its Indonesian subsidiary, PT Godrej Consumer Products Indonesia, which has launched the construction of a new manufacturing facility in Kendal, Indonesia. This initiative marks a key investment effort to strengthen the company’s production capabilities in the crucial home care and personal care sectors.

Project Details and Capacity Expansion

Currently, PT Godrej Consumer Products Indonesia operates with a capacity utilisation rate of approximately 75% to 80% within its home and personal care product lines. The new plant aims to increase this capacity by about 15%, responding to rising customer demand and the need to enhance manufacturing efficiency.

The project is projected to be completed within the next 18 to 36 months, during which the new manufacturing site will come online. The total investment committed to this venture is around ₹250 crore (Rupees Two Hundred and Fifty Crores), underlining Godrej’s commitment to expanding its footprint in the Southeast Asian market.

Financing and Strategic Rationale

Funding for the Kendal manufacturing site will primarily come from internal accruals, supplemented by debt financing if necessary. This balanced approach ensures financial prudence while enabling growth.

The principal rationale behind this expansion is to meet the escalating needs of Godrej’s customer base in Indonesia and neighbouring regions, as well as to consolidate and streamline its manufacturing operations. By doing so, the company aims to enhance operational efficiency and maintain competitiveness in the fast-growing home and personal care sectors.

Read More: GST 2.0 Impact on ITC: What Lower FMCG Taxes and Higher Tobacco Levies Mean!

Godrej Consumer Products Share Price Performance 

As of September 9, 2025, at 12:09 PM, Godrej Consumer Products share price is trading at ₹1,239.40 per share, reflecting a gain of 0.78% from the previous closing price. Over the past month, the stock has gained by 3.12%.

Conclusion

This expansion project underscores Godrej Consumer Products Limited’s strategic focus on sustainable growth and market responsiveness. The new manufacturing site in Indonesia will be pivotal in supporting future demand, improving supply chain robustness, and reinforcing Godrej’s position as a leading player in consumer products across emerging markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Sep 9, 2025, 1:12 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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