Why new brands are betting big on Tamil Nadu: GCPL’s Sudhir Sitapati explains

New Delhi: Tamil Nadu is emerging as the preferred launchpad for new FMCG brands in India, and Godrej Consumer Products (GCPL) MD and CEO Sudhir Sitapati has broken down exactly why.

In a LinkedIn post that’s gaining traction among marketers, Sitapati highlighted that GCPL recently introduced two new brands—Ninja, its entry into the pet food category, and Bloq, a new anti-perspirant—both launched in Tamil Nadu. 

Previous rollouts of GCPL’s Fab liquid detergent and Cinthol Bodywash also followed the same route. This is not a one-off strategy. “So were many new brands by other FMCG companies,” Sitapati noted, indicating a broader industry trend.

According to him, Tamil Nadu offers the "Goldilocks conditions" for launching new products. 

He outlined three reasons:

1. Tamil Nadu mirrors Southeast Asia

With a per capita income 1.6 times the national average, Tamil Nadu’s economic profile resembles that of countries like Indonesia and Vietnam, which often serve as benchmarks for Indian FMCG innovation. Unlike Karnataka or Telangana, where wealth is concentrated in metros like Bengaluru or Hyderabad, Tamil Nadu’s prosperity is more evenly distributed.

2. Media-isolatable for cost-efficient reach

Tamil Nadu’s linguistic uniformity and concentrated TV landscape make it uniquely suited for targeted advertising. “You can reach 80% of the state in under six weeks through Tamil satellite channels,” Sitapati said. This level of media isolation isn't possible in other states like Haryana or Karnataka, where language diversity or fragmented viewership increases advertising costs.

3. Modern trade infrastructure without big retail hurdles

New categories tend to perform better in self-service retail formats, but organised giants like DMart or Reliance often limit new listings. Tamil Nadu, on the other hand, has a dense network of independent supermarkets that are more open to stocking new brands. “It allows for rapid state-wide distribution, ensuring your media spends don’t go to waste,” Sitapati explained.

Summing up, Sitapati called Tamil Nadu “the only state in India with all the right conditions for a perfect launch: high income, media efficiency, and accessible retail.”

“If you want to know what India is going to buy tomorrow,” he concluded, “a visit to Coimbatore or Chennai is a must.”