One of the oldest Indian business houses, the Rs 6-000 crore Godrej Group has initiated a complete makeover and repositioning of the Godrej brand across businesses like FMCG, durables, property, foods and household insecticides.
The group has recently hired brand value management consultancy, Interbrand to help the group acquire an international and contemporary appeal in a global market.
The group is looking at getting 50% of its revenues from businesses outside India in the next few years and is, therefore, focusing on the brand-building exercise to work around the strategy. Also, with the Indian market getting more and more competitive, several old business houses are seeking professional help to stay afloat.
“Interbrand has just commenced the study for us, and based on their findings, we will finalise our strategy. Since all our businesses from personal care, steel furniture, appliances or household insecticides are looking at a global growth path, it makes sense to ensure that our brand evolves accordingly and the brand equity attracts and caters to a wider set of consumers,” said Adi Godrej, chairman of the Godrej group.
Interbrand is also expected to help the group leverage capabilities, build up scale and get more global consumer insights. Currently, the Indian market contributes over 80% of the group's turnover.
Businesses operating under the group umbrella range from locks and safes, typewriters and word processors, refrigerators and furniture to machine tools and process equipment, engineering workstations to cosmetics and detergents, edible oils and chemicals to agro products.
Thanks to the realisation that these businesses involve a high degree of direct interaction with the consumer, the group is increasingly coming out of what Mr Godrej calls a 'manufacturing mindset' and laying more emphasis on the consumer.
Interbrand is expected to help the group put in place sound management practices and ensure clarity in terms of vision and growth strategies and measure its impact at the shareholder level. Founded in 1974, Interbrand has offices in 36 cities in more than 20 countries around the globe and clients from among the most respected business houses.
Currently, the group derives one-third of its turnover from the FMCG business and the rest from sectors like agri businesses, appliances and furniture and properties. Recently, the FMCG Company, Godrej Consumer Products announced global acquisitions like Keyline Brands, UK, and Rapidol, South Africa.