Project   report on goodrej
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Project report on goodrej

on

  • 8,961 views

godrej

godrej

Statistics

Views

Total Views
8,961
Views on SlideShare
8,961
Embed Views
0

Actions

Likes
7
Downloads
532
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft Word

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Project report on goodrej Document Transcript

  • 1. PROJECTREPORT ON Consumer product limitedPRESENTED BY23 Lavkush Mehra30 Neharika Khattar26 Mahendra Mali25 madhumendre 1
  • 2. Lakshya “A goal to beachieved” 2
  • 3. CONTENTSIntroduction to FMCGHistory of FMCG productsMajor players internationallyMajor players IndianSector profileCompany profileVision and MissionCurrent eventsFinancial OverviewMarketing StrategyHR policyMarket ShareSwot analysisAwards and recognitionCSR (Corporate Social Responsibility)RecommendationsOur overview 3
  • 4. ACKNOWLEDGEMENTOur deep sense of gratitude to all our seniors and for theirsupport and guidance. Thanks and appreciation to thehelpful people at INDIRA INSTITUTE OFMANAGEMENT PUNE, for their support.We would also like to thank my Institution and my facultymembers without whom this project would have been adistant reality. I also extend our heartfelt thanks to our allwell wishers. 4
  • 5. INTRODUCTION OF FMCGFast Moving Consumer Goods (FMCG) are products that are sold quicklyat relatively low cost Examples include non-durable goods such as softdrinks, toiletries, grocery items etc. Though the absolute profit made onFMCG products is relatively small, they generally sell in large quantities, sothe cumulative profit on such products can be large.SCOPEThe term FMCG refers to those retail goods that are generally replaced orfully used up over a short period of days, weeks, or months, and within oneyear. This contrasts with durable goods or major appliances such as kitchenappliances, which are generally replaced over a period of several years.FMCGs have a short shelf life, either as a result of high consumer demandor because the product deteriorates rapidly. Some FMCGs – such as meat,fruits and vegetables, dairy products and baked goods – are highlyperishable. Other goods such as alcohol, toiletries, pre-packaged foods, softdrinks and cleaning products have high turnover rates.The following are the typical characteristics of FMCGs •From the consumers perspective: •Frequent purchase •Low involvement (little or no effort to choose the item -- products with strong brand loyalty are exceptions to this rule) •Low price •From the marketers angle: •High volumes •Low margins •Extensive distribution networks •High stock turnover 5
  • 6. SECTOR PROFILEThe Indian FMCG sector is the fourth largest in the economy and has amarket size of US$13.1 billion. Well-established distribution networks, aswell as intense competition between the organized and unorganizedsegments are the characteristics of this sector. FMCG in India has a strongand competitive MNC presence across the entire value chain. It has beenpredicted that the FMCG market will reach to US$ 33.4 billion in 2015 fromUS $ billion 11.6 in 2003. The middle class and the rural segments of theIndian population are the most promising market for FMCG, and give brandmakers the opportunity to convert them to branded products. Most of theproduct categories like jams, toothpaste, skin care, shampoos, etc, in India,have low per capita consumption as well as low penetration level, but thepotential for growth is huge.The Indian Economy is surging ahead by leaps and bounds, keeping pacewith rapid urbanization, increased literacy levels, and rising per capitaincome.The big firms are growing bigger and small-time companies are catching upas well. According to the study conducted by AC Nielsen, 62 of the top 100brands are owned by MNCs, and the balance by Indian companies. Fifteencompanies own these 62 brands, and 27 of these are owned by HindustanLever. Pepsi is at number three followed by Thums Up. Britannia takes thefifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9).These are figures the soft drink and cigarette companies have always shiedaway from revealing. Personal care, cigarettes, and soft drinks are the threebiggest categories in FMCG. Between them, they account for 35 of the top100 brands. 6
  • 7. THE TOP 10 COMPANIES IN FMCG SECTORS. NO. Companies1. Hindustan Unilever Ltd.2. ITC (Indian Tobacco Company)3. Nestlé India4. GCMMF (AMUL)5. Dabur India6. Asian Paints (India)7. Cadbury India8. Britannia Industries9. Procter & Gamble Hygiene and Health Care10. Marico IndustriesThe companies mentioned above, are the leaders in their respective sectors.The personal care category has the largest number of brands, inclusive ofLux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLLbrands in the 21, aggregating Rs. 3,799 crore or 54% of the personal carecategory. Cigarettes account for 17% of the top 100 FMCG sales, and justbelow the personal care category. ITC alone accounts for 60% volumemarket share and 70% by value of all filter cigarettes in India.The foods category in FMCG is gaining popularity with a swing of launchesby HLL, ITC, Godrej, and others. This category has 18 major brands,aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powderssegment. The food category has also seen innovations like softies in icecreams, chapattis by HLL, ready to eat rice by HLL and pizzas by bothGCMMF and Godrej Pillsbury. This category seems to have fasterdevelopment than the stagnating personal care category. Amul, Indiaslargest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top100 FMCG brands, dominates the biscuits category and has launched aseries of products at various prices.In the household care category (like mosquito repellents), Godrej andReckitt are two players. Good knight from Godrej, is worth above Rs 217crore, followed by Reckitts Mortein at Rs 149 crore. In the shampoocategory, HLLs Clinic and Sunsilk make it to the top 100, although P&Gs 7
  • 8. Head and Shoulders and Pantene are also trying hard to be positioned on top.Clinic is nearly double the size of Sunsilk.Dabur is among the top five FMCG companies in India and is a herbalspecialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash,Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence inthe Indian sub-continent, Southeast Asia, Far East, Middle East, SouthPacific, Caribbean, Africa and Europe. Asian Paints is Indias largest paintcompany, with a turnover of Rs.22.6 billion (around USD 513 million).Forbes Global magazine, USA, ranked Asian Paints among the 200 BestSmall Companies in the World.Cadbury India is the market leader in the chocolate confectionery marketwith a 70% market share and is ranked number two in the total food drinksmarket. Its popular brands include Cadburys Dairy Milk, 5 Star, Eclairs, andGems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indiangroup in consumer products and services in the Global Beauty and Wellnessspace.The main segments of this sector are personal care (oral care, hair care,soaps, cosmetics, toiletries), household care (fabric wash and householdcleaners), branded and packaged food, beverages (health beverages, softdrinks, staples, cereals, dairy products, chocolates, bakery products) andtobacco. The Indian FMCG sector is an important contributor to thecountrys GDP. It is the fourth largest sector in the economy and isresponsible for 5% of the total factory employment in India. The industryalso creates employment for 3 m people in downstream activities, much ofwhich is disbursed in small towns and rural India. This industry haswitnessed strong growth in the past decade. This has been due toliberalization, urbanization, increase in the disposable incomes and alteredlifestyle. Furthermore, the boom has also been fuelled by the reduction inexcise duties, de-reservation from the small-scale sector and the concertedefforts of personal care companies to attract the burgeoning affluent segmentin the middle-class through product and packaging innovations. 8
  • 9. The Indian FMCG sector is the fourth largest sector in the economy with atotal market size in excess of US$ 13.1 billion. The FMCG market is set totreble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015.Penetration level as well as per capita consumption in most productcategories like jams, toothpaste, skin care, hair wash etc in India is lowindicating the untapped market potential. Burgeoning Indian population,particularly the middle class.OUTLOOKThere is a huge growth potential for all the FMCG companies as the percapita consumption of almost all products in the country is amongst thelowest in the world. Again the demand or prospect could be increasedfurther if these companies can change the consumers mindset and offer newgeneration products. Earlier, Indian consumers were using non-brandedapparel, but today, clothes of different brands are available and the sameconsumers are willing to pay more for branded quality clothes. Its thequality, promotion and innovation of products, which can drive manysectors.HISTORY OF FMCG 9
  • 10. In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have beena dominant force in the FMCG sector well supported by relatively lesscompetition and high entry barriers (import duty was high). Thesecompanieswere, therefore, able to charge a premium for their products. In this context,the margins were also on the higher side. With the gradual opening up of theeconomy over the last decade, FMCG companies have been forced to fightfor a market share. In the process, margins have been compromised, more soin the last six years (FMCG sector witnessed decline in demand).COMPANY PROFILEGodrej GroupThe Godrej Group is an Indian conglomerate founded by Ardeshir andPirojsha Godrej in 1897, Lalbaug, Mumbai. Established in 1897, the Godrejgroup has grown in India from the days of the charkha to nights at the callcentres. Our founder, Ardeshir Godrej, lawyer-turned-locksmith, was apersistent inventor and a strong visionary who could see the spark in thefuture. His inventions, manufactured by his brother Pirojsha Godrej, werethe foundation of today’s Godrej empire. One of India’s most trusted brands,Godrej enjoys the patronage and trust of over 400 million Indians everysingle day. Our customers mean the world to us. We are happy only whenwe see a delighted customer smile.Godrej Group is one of the largest conglomerates based in Mumbai, India,involved in various industries that include appliances, precision equipment,machine tools, furniture, healthcare, interior solutions, office equipment,food-processing, security, materials handling and industrial storagesolutions, construction and information technology. Its products includesecurity Systems and Safes, Typewriters and Word processors, RocketLaunchers, Refrigerators and Furniture, Outsourcing Services, MachineTools and Process Equipment, Cosmetics and Detergents, EngineeringWorkstations, Medical Diagnostics and Aerospace Equipment, Edible Oilsand Chemical, Mosquito Repellents, Car perfumes, Chicken and Agri-products, Material Handling Equipments Like FORKLIFT Trucks, Stackers,Tyre handlers, Sweeping machines, access equipments etc. The Group isheaded by Adi Godrej and Jamshyd Godrej. 10
  • 11. Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has beenGodrejs manufacturing base, but increasingly the group have movedsignificant production facilities away from Mumbai. The Godrej group alsoowns vast land in Vikhroli, occupying 3500 acres (14 sq km) of land on bothsides of the Vikhroli section of the LBS marg. That makes the Godrej groupthe biggest private land owner in Mumbai by far. Such vast land can, intheory, be used to create at least 1500 acres of residential floor space, which,at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion . Thus,the Godrej group is sitting on an invisible cash pile that is envy of otherIndian conglomerates.Godrej Consumer Products Ltd M.D -Mahendram2001 - Godrej Consumer Products Ltd (GCPL) is setting up a parallel boardof directors known as the Young Executive Board.2002 -Godrej Consumer Products Ltd has informed BSE that it wouldbuyback its own fully paid up equity shares of face value of Rs.4 each fromthe open market.-GCPL has entered into the deodorants category with the launch of CintholInternational Perfumed deodrant.-Godrej has entered the traditional powdered henna market with the launchof powdered henna under the brand Nupur, which is priced at Rs.12 for an80gm pack.-Whirlpool of India and Godrej Appliances have filed complaints withMRTPC against LG Electronics India alleging that company was over-claiming the liter-capacity of its frost-free refrigerators. 11
  • 12. -GCPL has relaunched Godrej Fair Glow, Indias first and largest sellingfairness soap, with an improved product blend.-GCPL has classified its business into two groups: soaps and personal care.-As per ORG-GFK figures, Whirlpool and Godrej are in the top 2 positionsamong refrigerator brands during the festival season.2003 -ICRA has assigned SVG2 & CGR2 ratings to Godrej consumerproducts Ltd.-Godrej Consumer Products Ltd test-launched for the Southern region a newsoap under its Rs.80cr Fair Glow brand, the Fair Glow Saffron Toilet soap.-Contract Advertisings Mumbai office has won the creative duties forGodrej Shaving cream and Godrej Shaving gel.-GCPL has entered into an agreement with Shogun Diapers Ltd. foracquisition of trademark and copyright relating to the brand snuggy.-Godrej consumer products has re launched its shaving cream range andintroduced four new variants including Rich Foam, Lime fresh, MentholMist and Protect plus.-GCPl has unveiled new Ayurvedic soap in Kerala under the Godrej No.1Brand.-Godrej Consumer Products has launched Godrej Ezee Silk Liquid detergentin Kerala, which is specially formulated liquid detergent with a new pHbalance technology.-Received intimation from Citibank NA on March 03, 2004 that their clientRBS Stewart Ivory Asia Pacific was holding 31,82,811 shares of thecompany and the same has been transferred to a new entity, First State AsiaPacific Fund. The date of acquisition is February 26, 2004 and the mode ofacquisition is by way of : Off market transaction. The shareholding of FirstState Asia Pacific Fund after the said acquisition is 31,82,811 sharesamounting to 5.593% of the total paid up capital of Godrej ConsumerProducts Limited.-Dlist from the Ahmedabad Stock Exchange (ASE) with effect from October15, 2004.2004 -GCPL launches Cinthol Deo Soap-Godrej Consumer mulls to buy-back equity shares from open market-GCPL to tap rural market with brand new soap Nimin 12
  • 13. 2005 -Delist equity shares from The Calcutta Stock Exchange AssociationLtd (CSE) w.e.f. March 30,2005. - Godrej Consumer Products Ltd (GCPL), ropes in Mona Singh ofJassi Jaissi Koi Nahin (a popular serial on the Sony channel) to be the brandambassador for Godrej No.1 soaps.-Godrej Consumer acquires FMCG company Keyline Brands Ltd, U.K.2006 -GCPL acquires hair-colour biz in S. Africa-GCPL rolls out EVITA age control soap-GCPL joins other FMCG majors for overseas acquisitions2007 -Godrej Consumer - Acquisition of 100% ownership interest in GodrejGlobal Mideast FZE, Sharjah-Godrej joins hand with Swedish co-GCPL & SCA Hygiene Products AB, Sweden form 50:50 joint venture2008 -The company has issued rights in the ratio of 1:7 at a premium ofRs.122/-Per Share.GCPL is an Indian FMCG company. Growing at a fast rate. The Marketleader in Hair colours and the second biggest company in Toilet soapscategory with brands like Godrej No 1, Cinthol and Fairglow.Godrej No 1 is the 3rd largest selling soap brand in the country, a marketleader in North and in the states of Punjab, Haryana and UP.Branch Officesin Mumbai, Delhi, Kolkata and Chennai ensure pan-India coverage, whilefactories located at Malanpur (Madhya Pradesh), Thana (Himachal Pradesh),Katha (Himachal Pradesh), Guwahati (Assam) and Sikkim cater to thediverse requirements of our product portfolio.With the acquisition of Keyline Brands in the United Kingdom, Rapidol andKinky Group, South Africa and Godrej Global Mideast FZE, a 100%subsidiary of Godrej International, GCPL now owns international brandsand trademarks in Europe, Australia, Canada, Africa and the Middle East.At GCPL, we are driven by our mission to continuously enhance the qualityof life of consumers in high-growth markets with superior-quality andaffordable personal care and hygiene products.VISION 13
  • 14. Our vision is to be a leader in the Indian Food and beverage space bybreaking into the exclusive league of top ten FMCG food companies inIndia. Godrej in Every Home and Work placeMISSION Godrej Mission is to operate in existing and new businesseswhich capitalize on the Godrej brand and corporate image ofreliability and integrity. Godrej objective is to delight it’s customer both in India andabroad. Godrej shall strive for excellence by nurturing, developing andempowering it’s employees and suppliers. Godrej encourage’s an open atmosphere, conducive to learningand team workGodrej mission is to do sales of Rs. 1000 Crores by 2012, profitably atmargins that are best in class in FMCG goods. We will achieve it throughunparalleled business innovations and consumer satisfaction.GODREJ PRODUCT 14
  • 15. Godrej Consumer Products, leading FMCG major has reported a handsome growth of 78% in its net profit for the first quarter ended June 30, 2009.During the reporting period, the company has recorded a net profit of Rs 69 crore. In a communiqué to Bombay Stock Exchange (BSE),the company said that it has clocked a much higher profit in the latestquarter compared to a net profit of Rs 39 crore in the same period last yearGODREJ CONSUMER PRODUCTS LTD has launched Cinthol Deo Soap-Sport, which is said to offer the user benefit of a deodorant with theconvenience of soap. It is available at Rs 13 (75g) and Rs 20 (125g), with anoffer of `Buy 3 Get 1 Free. 15
  • 16. CONSUMER PROFILEMAJOR PLAYERS INTERNATIONAL 16
  • 17. 1. Unilever 2. Colgate & Palmolive 3. Cadbury 4. Gillette 5. Nestle 6. Dabur India 7. General mills 8. Reckitt Benckisers 9. ParleMAJOR PLAYERS DOMESTIC 17
  • 18. 1.Hindustan Unilever L.T.D.2. ITC3. Nestle india4. GCMMF (Amul)5. Dabur India ltd6. Asian Paints7. Cadbury8. Britannia Industries9. Marico Industries ltd10.Nirma ltd11.Rasna ltd12.Modi RevlonMARKET SHARE 18
  • 19. GCPL eyeing 25% market share in hand sanitizer segment. FMCG majorGodrej Consumer Products (GCPL) is targeting a 25 per cent market sharein the hand sanitizer segment this fiscal, a top company official said. Thecompany has launched several products, including sanitizers, wet-wipes andhand-wash under its brand Protekt, with an aim to get a grip on the handhygiene market. "The sanitizer market is over Rs 25 crore...We are eyeing a25 per cent share in this fiscal," GCPLs Executive Vice-President MarketingTarun Arora told reporters here today, after launching Freedom to Touchcampaign for its product.Godrej Consumer Products Ltd (GCPL) had organized an analyst meet todiscuss FY08 results and its future strategies. The key highlights of the meetare listed below:GCPL - the second largest toilet soap player in the country, recorded 15.9%yoy growth in net sales at Rs11bn during FY08, driven by strong 19.8% yoygrowth in toilet soaps and 21.4% in hair color segment. About 25% of thecompanys turnover is from international business, which includes its pastacquisitions, exports, and joint venture - Godrej SCA Hygiene Ltd.Segmental break-up Segments Q4 FY08 Q4 FY07 yoy (%) FY08 FY07 yoy (%) Soaps 1,260 1,179 6.9 5,690 4,751 19.8 Hair Colour 697 535 30.4 2,518 2,074 21.4 Toiletries 624 612 1.9 2,230 2,149 3.8 Liquid Detergents 67 53 26 385 388 -1 Godrej Brands 2,648 2,379 11.3 10,823 9,362 15.6 By products sale 70 39 80.6 203 153 32.9 Total 2,718 2,418 12.4 11,026 9,515 15.9Changing revenue mix 19
  • 20. 1. Operating margins expanded by 60bps to 19.5% aided by drop in raw material cost (160bps). GCPL mitigated the impact of higher raw material prices by increasing soap prices and better procurement management. The company had received an extraordinary income of Rs99mn during FY07 (tax adjustment of Rs48.1mn and profit of Rs50.7mn from sale of Snuggy brand to Godrej SCA Hygiene Ltd.) Adjusted net profit for the year rose by 10.6% yoy to Rs1.6bn.• GCPL had taken a price hike of 5-8% in its soap brands during Q1 FY08 and Q3 FY08 to mitigate the impact of firm vegetable oil prices. GCPL is likely to undertake one more price hike in the soap category if vegetable oil prices continue to rise. The company has no plans to undertake price hike in any other category.• The management expects its add spend to be higher by ~50% (from ~6-7% of net sales to ~9% of net sales) on yoy basis in the first and second quarter of current fiscal.• During FY08, GCPL relaunched its powder hair dye as Godrej Expert Hair Dye with perfume and conditioner. It has also introduced Renew Powder Hair Colour and relaunched flagship brand Cinthol in a range of soaps, talc and deo sprays.• GCPL has incurred a capex of Rs1.1bn for capacity expansions during FY07 and FY08. GCPL?s Katha plant became operational from 20
  • 21. December 2006, while Sikkim facility became operational from March 2007. GCPL?s Malanpur plant (fatty acid and soap noodles) has commenced operations from May 2008.• Of distributing Godrej FMCG products in the Middle East.• GCPL is soaps shipments registered a strong 19.3% growth well ahead of category growth of 9.6% during FY08. GCPL has achieved a 9.1% market share in the domestic soap market and its Godrej No. 1 soap has become the largest selling Grade 1 soap in the country. SOAPS: VALUE GROWTHSource: Company, India Infoline Research• GCPL is hair colour segment grew by 12% while the category grew by 13.3% during FY08. GCPL is the market leader in the hair colour market with a strong 35.1% market share. Powder hair colour accounts for 54% of volumes in this category.Hair Colorants: value growth 21
  • 22. Source: Company, India Infoline Research• Exports currently account for ~25% of GCPL?s total revenues. GCPL has added four new countries ? Curacao, Liberia, Libya and Tanzania during the year. The company now exports to 38 countries. During the year, GCPL has made its first shipment of its products to Keyline Brands Ltd (powder hair dye in bottles and FairGlow soap) and Rapidol Pty. Ltd (Godrej No. 1 soap, Renew hair colour).Trend in exportsSource: Company, India Infoline ResearchPerformance of Keyline Brands Ltd 22
  • 23. (Rs mn) FY08 FY07 yoy (%) Total income 1,680 1,675 0.3 PBIT 181 237 (23.6) Interest 39 39 - PBT 142 199 (28.6) Tax 49 59 (16.9) PAT 93 139 (33.1) EVA* 0.5 32.0 - • Source: Company, India Infoline Research. (Date of acquisition - September 01, 2006) • During April 2008, GCPL acquired 100% stake in the Kinky Group (Proprietary) Ltd, South Africa (Kinky) for ~265mn South African Rand. Kinky offers a variety of products like hair, hair braids, hair pieces, wigs, wefted pieces and hair accessories like styling gels, hair sprays and oil free shampoo. Kinky has a market share of 10% in the South African market. Kinky recorded revenues of 85-90mn South African rand in FY08 with a profit-to-sales ratio at 30-35%. Kinky has been growing by 20%+ and has a higher growth potential. GCPL expects the Kinky brand to register strong growth post expansion to more geographies with its portfolio of natural and artificial hair products. GCPL is strengthening its hair care product portfolio and is looking to buy such companies overseas. • On October 01, 2007, GCPL acquired Godrej global Mideast FZE, a 100% subsidiary of Godrej International Ltd. It was established in Sharjah with the objective.FINACIAL OVERVIEW 23
  • 24. Financials Rs (in Crores)For the year 08/03 07/03 06/03 05/03Operating Income 892 761 656 563Net Profit 148 122 121 86Net Worth 146 109 75 48No. of Shares (in crore) 23 23 6 6Adjusted EPS (Rs) 7 5 21 15Book value per Share (Rs) 7 5 13 9Dvdnd per Share (Rs) 4 4 14 12Net Profit Margin (%) 16 16 18 15Current Ratio 1 1 1 1Lt Debt Equity 1 1 0 0 24
  • 25. HR POLICIES • Development/management of human resource policies of the company • Ensuring compliance of human resource policies of the company to relevant legislation applicable to the sphere; • Development of training programs for the personnel of the company; • Training of personnel; • Execution of HR management, including recruitment process, employment and further retention of personnel; • Development/management of compensation and benefits policies and schemes; • Development of salary policy and support to the accountant in payment processes; • Identification of the needs of the personnel and development of programs to meet the needs for ensuring higher efficiency; 25
  • 26. • Reporting to the General Manager and provision of support in all HR related issue.CURRENT EVENTBusiness News Godrej-SCA JVHewitt Best Employers AwardGreat Places to Work AwardNupur Jagruti-A voice against DowryNew Kochi GodownGCPL and SCA Hygiene Products AB, Sweden form 50:50 joint ventureGodrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of Indiasurvey.GCPL ranked 15th in Great Places to Work 2006 surveyGCPL: Back To ClassAT Godrej Consumer Products Ltd (GCPL), they make sure learning neverstops. Three years ago, the company began a 20-month executive MBAprogramme for its employees, with 25 people on board. Today, the numberis four times that. In addition, Web-based learning is made possible throughGOLD (Godrej Organization for Learning and Development). It has signedup with UK-based NetG to distribute e-learning modules among itsworkforce. Godrej Nupur Jagruti -"A Voice Against Dowry" launched inMumbaiOn the occasion of Womens Day on March 8th, Godrej Nupur, the Mehendibrand of Godrej Consumer Products Limited launched Nupur Jagruti-DahejKe Khilaf Ek Awaz an initiative to Stand against Dowry. Citizens pledged 26
  • 27. their support to this anti-dowry campaign by forming a human chain in a bidto express their stance at the Gateway of India, Mumbai.Ezee -Adjudged a Consumer Super brand by the Super brand CouncilGodrej Ezee was conferred the Consumer Super brand award at a glitteringfunction at Taj Lands End on April 12th 2007.Product NewsLaunch of FairGlow in a brand new packLaunch of Vigil Grade I health soapGCPL launches ‘Vigil’, the first Grade 1 Health Soap in IndiaINTERNATIONAL MARKETWith the acquisition of Keyline Brands in the United Kingdom, Rapidol andKinky Group, South Africa and Godrej Global Mideast FZE, a 100%subsidiary of Godrej International Ltd., GCPL now owns internationalbrands and trademarks in Europe, Australia, Canada, Africa and the MiddleEast. 27
  • 28. SWOT ANALYSISSTRENGTHS 1. The Company has got wide range of branches within the country. 2. The Company has wide range of product line. 3. Godrej is having better Sales after services. 4. The Company has there respectable and believable brand name. 5. Company is having large number of customer with higher satisfaction. 6. The management is trained and efficient & the network of service centers is good in all states.WEAKNESS1. The Company does not go for advertising, which is one of the biggest disadvantage of Godrej.2. Its emphasis more on the advertising of office automation & prime division. 28
  • 29. 3. The company is focusing many security products at a same time.4. The effective selling schemes are not available like payment on installment.OPPURTUNITIES:1. Godrej has more opportunities to grow as it has earned good name in security sector.2. Technical up gradation time to time is also one of the opportunities.3. Godrej can focus on big project like construction. Where there is a great demand of security equipmentsTHREAT The growing competition in the security sector is threat for allmanufacturing companies so it is also threat for Godrej to stand inthe market with the higher position. 29
  • 30. AWARDS & RECOGNITION In 1897, Godrej Introduced the first lock with lever technology in India. In 1902, Godrej made the first Indian safe. In 1955, Godrej produced Indias first indigenous typewriter In 1989, Godrej became the first company to introduce PUF ( Polyurethane Foam) Introduced Indias first and only 100% CFC, HCFC, HFC free refrigerators. GCPL, the Highest Ranked Indian FMCG in Asias Hot Growth Companies List by Business Week Godrej Consumer Products Ltd. has been ranked 14th in The Best Companies to Work For study. This study was jointly conducted by Business Today, Mercer and Taylor Nelson Sofres (TNS) Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India survey GCPL ranked 15th in Great Places to Work 2006 survey The Corporate Citizen of the Year Award given by Economic Times. Flagship brands Good knight, Cinthol and Ezee selected Superbrands by the Super brands Council Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation, USA is acknowledged the Worlds largest mat manufacturers and South Asias largest manufacturers of Coils. Godrej Consumer Products Limited, adjudged as a Business Super brand by the Super Brands Council. 30
  • 31. The Return on Capital Employed and Return on Net Worth ratios of Godrej Consumer Products - the highest in corporate India. Godrej Consumer Products was awarded the "Best Managed Workforce" award given by Hewitt Associates and CNBC TV18. Godrej Consumer Products features in the Top 25 list of Great Places to Work (survey conducted by GrowTalent in association with Business World) for four years in a row. Lifetime Achievement Award for Godrej Industries from CHEMEXCIL, the Basic Chemicals Pharmaceuticals and Cosmetics Exports Promotion Council.CSR (CRPORATE SOCIAL REPORT)They believe that environment, safety and health are important componentsof any well- run business and would like every member of the Godrejparivar, and the extended family, to inculcate these values. GodrejCompany has a green image; the credit goes to Godrej founders. Until 1995Godrej had not publicized their efforts. They were doing things for the joy itgave them. It was in 1996 that they adopted the Systems approach and thenthe entire business was involved in changing processes and settingprocedures to give due consideration to the mangroves. As a matter of fact,some of the businesses found that the conservation of mangroves actuallyhelped them in strengthening business relationships with clients, governmentand customers. ¬ MANGROVE DEVELOPMENT: Mangroves are essentialto the ecology of the coast and the island. They provide fertile ground forfish to feed and breed in and nurture a large variety of birds. Mangroveconservation has been the key focus of the Environment Cell. TheEnvironment Cell has a broad mandate to mentor and monitor all theiractivities so as to ensure high standards. The residential township andcommunity around the company is also a focus of their Environment Cell.(MANGROVE AREA VIKHROLI) BNHS and the Soonabai PhirojshaGodrej Foundation made efforts to replant mangroves in Vikhroli-Ghatkoparin the early 90s 31
  • 32. RECOMMENDATIONSThe Company should advertise its Security equipment. Today Price basedcompetition is skyrocketing so if it is possible that Company should cutdown its security equipments price. Company should promote its securityequipment through canopy. Company should do mall activities once in aweek because it is necessary to promote the high involvement securityproduct.OUR OVERVIEWThe Godrej Group stands in a strong position today. With annual sales inexcess of $1 billion, a workforce of approximately 18,000, and a strongdiversified portfolio, Godrej has proven its ability to deliver strong financialperformance.The philanthropic activities by the chairman Mr.ADI GODREJ and otherfamily member seven before the word CSR was known has made the Godrejgroup one of the most trusted business house in India. Today the group holdsan example of ethical and most transparent group of business who is 32
  • 33. concerned not only to maximize shareholders value but at the same timeinvests responsibly in social and environmental welfare.The Godrej Group is today one of the most accomplished and diversifiedbusiness housesin India. Godrej’s success has been driven by the company’s commitment todelivering innovation and excellence. Through the consistent application ofthis commitment and a century of ethical business conduct, Godrej hasearned an unparalleled reputation for trust and reliability 33