Commenting on the same, Adi Godrej, Chairman, Godrej Industries, said there is an arm length agreement between Godrej Industries and Godrej Properties. "Godrej Properties will bring in investments for development."
Godrej said the Vikhroli project is among the largest in Mumbai. "We will start development within FY11 itself. Property development of 300-400 million square feet will take 3-4 years to complete. The cost of development is around Rs 1,000 crore, which spread over four years." He said the current property rates in Vikhroli are Rs 8,000-10,000 per square feet.
Godrej Consumer Products, he stated, saw poor growth in the soap business in Q1. "Soap business growth was low on account of the base effect. However, growth is expected to be robust in Q3 and Q4."
The company's Q1 FY11 consolidated net profit stood at Rs 116 crore as against Rs 69.7 crore. Net sales came in at Rs 643 crore as compared to Rs 439 crore.
Godrej said the pricing is competitive and hence GCPL does not need to cut prices.