First phase of new Indonesia manufacturing plant inaugurated, part of IDR 500 billion investment
Godrej Consumer Products Indonesia (GCPI), a subsidiary of GCPL, has inaugurated the first phase of a new manufacturing facility in Kendal, Indonesia.
- Investment Outlay
- IDR 500 billion (approx. INR 250 crore)
- Phase 1 Site Area
- 2.5 hectares of a 5.5 hectare site
- Capacity Addition & Utilisation
- about 15% capacity; current utilisation 75-80%
What was announced
Godrej Consumer Products Indonesia (GCPI), the Indonesia subsidiary of Godrej Consumer Products Limited (GCPL), has inaugurated the first phase of a new manufacturing facility in the Kendal Special Economic Zone, Indonesia. The first phase is dedicated to Household Insecticides and is built to serve the Indonesian market and support exports.
The investment
- The Kendal facility is part of an IDR (Indonesian Rupiah) 500 billion (approx. INR 250 crore) investment in Kendal.
- The first phase has been developed across 2.5 hectares of GCPI's 5.5 hectare site in Kendal.
Capacity
- The new plant is expected to expand home and personal care categories capacity by approximately 15%.
- The company states current capacity utilisation is 75-80%.
The Indonesia business
- GCPI has been present in Indonesia since 2010, and the business has grown 4.5 times since then.
- Brands including HIT, Stella, Mitu and NYU reach approximately 1 in 4 Indonesian households, per the release.
- On people practices, the stated ambition is for women to represent 50% of the workforce at Kendal, along with opportunities for persons with disabilities.
- The release describes GCPL as a leading emerging markets company and GCPI as the second largest player in Household Insecticides in Indonesia.
How to read this
- This is a press release about an overseas manufacturing expansion; the stated outlay of approx INR 250 crore is described as part of the larger IDR 500 billion Kendal investment.
- The capacity figures (15% expansion, 75-80% utilisation) are attributed in the release to the MD & CEO's statement.
- The inauguration was attended by 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, along with GCPI and GCPL leaders.
What to take away
It is an operations and capacity update on the Indonesia business. There is no change to the company's share capital or ownership structure indicated by this announcement.
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Godrej Consumer inaugurated the first phase of a new manufacturing facility in Indonesia as part of a Rs 250 crore investment
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More numbers
- Investment in Kendal facilityIDR (Indonesian Rupiah) 500 billion
- Approx. value of Kendal investmentINR 250 crore
- First phase built across2.5 hectares
- GCPI site area in Kendal5.5 hectare
- Expected capacity expansion15%
- Current capacity utilisation75-80%
- Business growth in Indonesia since 20104.5 times
- Women's share of workforce aimed for at Kendal50%
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