Godrej Consumer expands in Indonesia with new facility

Godrej Consumer Products Ltd’s arm inaugurated the first phase of its new manufacturing facility in the Kendal Special Economic Zone, as a part of its Rs 250 crore investment in Kendal to strengthen the company’s manufacturing footprint in Indonesia.

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The investment builds on Godrej Consumer Products Indonesia (GCPI) presence in Indonesia since 2010. Since then, the business has grown 4.5 times while brands including HIT, Stella, Mitu and NYU reach approximately 1 in 4 Indonesian households, the company said in a statement.

The first phase has been developed across 2.5 hectares of GCPI’s 5.5 hectare site in Kendal and is dedicated to Household Insecticides, strengthening GCPI’s manufacturing capabilities to serve the Indonesian market and support exports, it said.

For GCPL, the Kendal facility represents the next phase of its long term commitment to Indonesia, strengthening local manufacturing while building greater capacity for future growth.

Indonesia’s consumer landscape is evolving rapidly, shaped by changing lifestyles, shopping behaviour and technology. Built in just over a year, Kendal has been designed with technology and data embedded into its operations from the start, creating greater visibility and enabling GCPI to operate more effectively and at speed, it said.

The inauguration brought together the Ambassador of India to Indonesia, the Deputy Governor of Central Java, the Regent of Kendal and a senior representative from Indonesia’s Ministry of Investment and Downstream Industry/BKPM, alongside key stakeholders, partners and senior leaders from GCPL and GCPI.

“India and Indonesia share deep rooted historical and cultural ties, and there is tremendous potential to build an equally strong economic partnership. Godrej, one of India’s most prominent business houses, has been present in Indonesia since 2010. Its products have made significant impact in the Indonesian market due to quality and affordability,” Sandeep Chakravorty, Ambassador of India to Indonesia, said.

“Its new manufacturing facility in Kendal is a concrete example of this partnership in action. The facility will serve both Indonesia and export markets, strengthening the connection between investment, manufacturing and trade. We would like to see many more such examples of Indian and Indonesian businesses investing, growing and creating value together,” he added.

“Indonesia is an important part of our business, and we believe there is significant headroom to grow. Kendal is a big step in that direction. Our investment in the new Indonesian plant will expand home and personal care categories capacity by approximately 15 per cent. This expansion addresses current capacity utilization of 75-80 per cent, positioning us to meet rising regional demand and scale,” Aasif Malbari, Managing Director & CEO, Godrej Consumer Products Ltd (GCPL), said.

“Where we see opportunity, we do not shy away from investing. We also believe Kendal will become a platform for exports around the region,” he added.

“What excites me about Kendal is not only what we have built, but how we have built it. In just over a year, we have created a manufacturing platform with technology and data embedded from the start, giving us better visibility and enabling us to operate more effectively and at speed. For a consumer business, that matters. It brings us closer to real demand, helps us make faster decisions and gives us the capability to turn consumer insight into relevant innovation at scale,” said Rajesh Sethuraman, Business Head, Indonesia & Global Head, Business Transformation and Digital, Godrej Consumer Products Ltd (GCPL).

“At Kendal, inclusion is being designed into the workplace, with an ambition for women to represent 50 per cent of the workforce alongside meaningful opportunities for persons with disabilities,” Vaibhav Ram, Global Head, Human Resources, Godrej Consumer Products, said.

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