The FMCG Star Being a bootstrapped company, Ghodawat Consumer Ltd. achieved a momentous milestone of becoming INR 1000 Crore revenue in FY21 as the company is on track to achieve INR 2000 Crore revenue by FY23.
By Entrepreneur Staff •
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Ghodawat Consumer Ltd. (GCL) is the FMCG arm of Sanjay Ghodawat Group and was founded by Shrenik's father, Sanjay D. Ghodawat. It was his father's dynamic vision and leadership that inspired Shrenik to conceptualize and incorporate the impulse divisions in GCL and the retail business under "Star Localmart'. The eureka moment was when the company witnessed the overall shift of consumer patterns towards the packaged food industry which led them to discover, that if they could develop a locally sourced, locally processed, and locally sold ecosystem, the company could create a special niche in the consumer market that offers quality products. Being a bootstrapped company, they achieved a momentous milestone of becoming INR 1000 Crore revenue in FY21 as the company is on track to achieve INR 2000 Crore revenue by FY23.
The premise behind the company's business model is that the consumer utilizes at least one product from GCL in the entire day. GCL has also invested in state-of-the-art infrastructure, high-quality packaging and raw materials, and a skilled team to deliver the best products at affordable prices. Having over 2000 distributors, their products have catered to millions across India.
2021 being a challenging year for everyone, the company dealt with a lot of disruption in its demand and supply chain. They overcame the obstacles and were able to achieve a 40% CAGR. Being adaptive and agile to the changing environment has been GCL's constant mantra to success as obstacles and hurdles will keep coming in the future as well. The company is profitable and has grown its revenue growth by 40% and profitability by 60% on a YOY basis and they look forward to doing the same in the next two years.
Ghodawat Retail LLP has also been making waves in the retail world with its latest offering "Star Localmart'. It focuses on providing customers with an array of daily consumable products under a single roof and strives to ensure that consumers get an exquisite shopping experience, great discounts, quality products, and excellent customer care. Eureka moment for Shrenik in retail was witnessing the quality and SKU standards, as well as hygiene standards not being maintained at the local Kirana stores. Understanding the fact that consumers seek a shopping experience that promises hygiene as well as ease and convenience, the company set up stores that were strategically positioned in rural towns, and villages. It currently operates over 50 stores across South Maharashtra and North Karnataka.
GCL's state-of-the-art manufacturing facilities, extensive rural & urban penetration, omnichannel marketing, distribution network, and most importantly, the expansion of Star Localmart will be its biggest trigger for
growth. Star Localmart has set an ambitious target of opening 3000 stores and generating employment opportunities for over 25,000 people by the end of FY 25.
