Godrej Industries Limited


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Industry and Company Analysis as of July 2013

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Godrej Industries Limited

  1. 1. - Rishabh Karnik
  2. 2. Industry analysis Global Trends Indian Trends •The demand for oils and vansapati has seen a fall in demand in the global market •Depending on the trends with brands in foreign countries, he demand for the consumer products like soaps, etc in the global market is the same and won’t change much •Scope for improvement by increasing market and increasing quality •It is very close to the maturity phase of the product and certian modifications are needed
  3. 3. PEST Analysis Political •Raw materials – Agriculture- Environment Laws •Waste management •Import-Export laws Economic •Shifting of headquarters – Rent – Earning •Excise Tax and Sales Tax •Domestic currency fluctuation Social •Loyal customer base •Increasing population - Increase in market size •Pollution free working •Global trend- Decline expected Technological •Modern equipments •Investments in RnD •Safety measures
  4. 4. Company Description • India’s largest manufacturer of Oleochemicals • This unit of Godrej includes) 1. Chemicals (100% shares) 2. Nature’s Basket Ltd (100% shares) 3. Godrej Properties (61.5% shares) 4. Consumer Product Ltd (21.2% shares) 5. Godrej Agrovet Limited (75.2% shares) 6. Godrej Hersheys (43.4% shares)
  5. 5. General Information • Established in 1988 as Godrej Soaps • Godrej Consumer Product Ltd got demerged on 31st March 2001 and resulted in two business units • Plants in Vikroli and Ambarnath in Maharashtra and Vaila in Gujarat
  6. 6. Top Management • Adi Godrej, Chairman, Godrej Group • Nadir Godrej, MD, Godrej Industries Chairman, Godrej Agrovet • Tanya Dubash, Chief Brand Officer, Godrej Industries Ltd • Nisaba Godrej, Executive Director, Godrej Consumer Products • Pirojsha Godrej, MD, Godrej Properties • Vivek Gambhir, MD, Godrej Consumer Products
  7. 7. Shareholding Pattern Percent Shares Family Company Foreign Investors Mutual Funds/UTI Employees
  8. 8. Financial Statistics Parameter % increase in last year % increase in Q4 of 2012-13 Total Income 24% --- Net Profit 34% 35% Profit Before Tax 47% 73% (http://www.godrej.com/godrej/GodrejIndustries/Pdf/GIL_Q4FY2012-13_Media_Release.pdf
  9. 9. Product Range and Revenue Percent Growth Rate Detergent Personal Production Beverages Oils and Fats Food Soaps Others http://www.godrej.com/godrej/GodrejIndustries/
  10. 10. Acquisitions • Indonesian household products company Megasari Group (Godrej Consumers) • Argentine hair colour brand Issue group (GCPL) • African hair products company, Darling Group (GCPL) • Swadeshi Detergents (Godrej Industries Ltd)
  11. 11. Joint Ventures • Malaysian realty firm IJM Plantations • Inhouse JVs with other business units on share holding basis.
  12. 12. SWOT Analysis Strengths •Agricultural business •Wide variety of products •High volume production •Large market Weaknesses •Volatile to market fluctuations •Inflation •Rural population unaware Opportunities •Godrej Seeds •Export •Tap rural populations •Find cheaper products from which oils, etc can be made •Increase in population Threats •Market controlled by HUL •Specialised companies existing
  13. 13. Major Competitors Company Market Share ( in crores) HUL 130094.33 Dabur India 27634.23 Colgate 19174.31 Emami 11264.40 GIL 10008.05 P & G 9457.92 Gillette India 7490.95 http://www.moneycontrol.com/competition/godrejindustries/comparison/GI23
  14. 14. Recent Happenings • Acquisition of 8 acres of MIDC property in Ambernath as a process to shift its main operational facility from Vikroli to Ambernath. • GIL agreed to continue its inhouse JV with Godrej Hersheys Ltd.
  15. 15. Strategies for the future • Go Green Initiative • Technical developments
  16. 16. Go Green Initiative • Trailing 1 million urban and rural population in skilled employment • Achieving zero waste and carbon neutrality • Using 30% of energy from renewable energy sources • Water recycling and reusing • Having higher quality products for lower section of the population
  17. 17. Technical developments • Low priced raw materials to manufacture high quality products • Faster and higher volume productions • More qualified personnel to operate machines • Newer chemicals manufactured after following the trends of global markets
  18. 18. Thank You!