Yes, we are considering a buyback in Godrej Industries as we feel that the price is grossly undervalued. The buyback, if approved by the board, is expected to be made in August.
How long do you think the high-inflation scenario will continue in India? Are the prices of crude oil justified?
In the last one year, crude oil prices have gone up by 100 per cent, which is a tremendous increase and caused by speculative factors. However, they are bound to come down at some stage. In spite of how grim the near future may seem right now, I do believe India's own economy will come out of this scenario and grow further.
In what areas is the group going to cut costs most aggressively?
We will cut production costs by improving efficiencies. We do not see either advertising or employee costs falling. We need talent and, hence, our employee costs as a percentage of sales would remain constant or even go up. The total number of employees in our group have gone up from 15,000 in 1998 to 18,000 in 2003 to 23,000 at present.
How do you plan to take competition head-on?
It is not our intention to take on competition. However, we do believe that it will be now difficult for larger players to retain their market share and easier for smaller players to increase presence. Our soap brand Godrej No 1 has now become the largest selling grade 1 soap in the country.
