Godrej Consumer - Pieces Of The Growth Puzzle Coming Together: Motilal Oswal

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Motilal Oswal Report

As stated in our earlier note, we regard the appointment of Sudhir Sitapati as managing director and chief executive officer from October 2021 as a potential transformational change for Godrej Consumer Products Ltd.’s prospects.

In that note, we highlighted:

1. Weak domestic sales growth in the last five years.

2. Sitapati’s pedigree, experience, tenure of his appointment as CEO, as well as his young age, enabling potentially significant extension of tenure.

3. How new CEOs with a fresh thought process have led to structural change in the earnings prospects of consumer companies like Britannia Industries Ltd., Nestle India Ltd., Jubilant FoodWorks Ltd., United Breweries Ltd., and Hindustan Unilever Ltd. over the last 15 years.

4. How the low penetration in household insecticides and hair color offers a high growth opportunity.

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