New Delhi: Godrej Consumer Products Ltd (GCPL), a leading player in the consumer products sector, is set to make a significant foray into the pet food market with the establishment of its new subsidiary, Godrej Pet Care, in fiscal year 2026. The company has announced a substantial investment of ₹500 crore over the next five years to support the development and expansion of its pet care business.

Investment and Partnership

GCPL plans to channel ₹500 crore into Godrej Pet Care, leveraging a strategic partnership with Godrej Agrovet Ltd (GAVL). GAVL, already established in the animal feed and agribusiness sectors, will collaborate with GCPL for manufacturing and research & development. This partnership aims to capitalize on GAVL's expertise and resources to drive innovation in the pet food segment.

The company anticipates beginning manufacturing operations in the second half of the upcoming fiscal year and has appointed a Chief Operating Officer to lead the new venture.

Market Opportunity

The pet care market in India, currently valued at approximately ₹5,000 crore, presents a substantial growth opportunity. GCPL highlighted that only 10% of Indians currently own pets, and of those, only 10% feed them packaged food, and even then, only 40% of the time. In comparison, China, which had similar pet ownership rates 15 years ago, now enjoys a 20% pet ownership rate with a calorie conversion of 25%.

The data underscores the growth potential for pet food in India, where the opportunity for market expansion is clear. GCPL believes its entry into this market aligns well with the increasing trend of pet ownership, particularly following the COVID-19 pandemic.

Competitive Landscape

GCPL’s move follows a broader trend of increased activity in the pet food sector. Notable developments include:

Nestle India’s acquisition of Purina Petcare India in 2022 for an estimated ₹125.3 crore.

Emami’s investment in Cannis Lupus Services India, a pet care startup.

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Mars Petcare’s ₹500 crore investment in expanding capacity at its Hyderabad factory in 2021.

Financial Performance

For the fiscal year 2024, GCPL reported consolidated revenue from operations of ₹14,096.11 crore, an increase from ₹13,315.97 crore in the previous year. On Wednesday, GCPL’s shares settled at ₹1,501.10 on the BSE, marking a 1.48% increase from the previous close, reflecting positive market sentiment.

Future Outlook

The establishment of Godrej Pet Care represents a strategic move by GCPL to diversify its portfolio and tap into a burgeoning market. With a robust investment plan and a strong partnership with GAVL, GCPL is poised to make a significant impact on India’s pet food industry, leveraging its existing market presence and expertise to drive growth in this promising sector.

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