- Rishabh Karnik
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
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
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)
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
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
Shareholding Pattern
Percent Shares
Family
Company
Foreign Investors
Mutual Funds/UTI
Employees
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
Product Range and Revenue Percent
Growth Rate
Detergent
Personal Production
Beverages
Oils and Fats
Food
Soaps
Others
http://www.godrej.com/godrej/GodrejIndustries/
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)
Joint Ventures
• Malaysian realty firm IJM Plantations
• Inhouse JVs with other business units on share
holding basis.
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
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
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.
Strategies for the future
• Go Green Initiative
• Technical developments
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
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
Thank You!

Godrej Industries Limited

  • 1.
  • 2.
    Industry analysis Global TrendsIndian 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.
    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.
    Company Description • India’slargest 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.
    General Information • Establishedin 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.
    Top Management • AdiGodrej, 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.
  • 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.
    Product Range andRevenue Percent Growth Rate Detergent Personal Production Beverages Oils and Fats Food Soaps Others http://www.godrej.com/godrej/GodrejIndustries/
  • 10.
    Acquisitions • Indonesian householdproducts 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.
    Joint Ventures • Malaysianrealty firm IJM Plantations • Inhouse JVs with other business units on share holding basis.
  • 12.
    SWOT Analysis Strengths •Agricultural business •Widevariety 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.
    Major Competitors Company MarketShare ( 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.
    Recent Happenings • Acquisitionof 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.
    Strategies for thefuture • Go Green Initiative • Technical developments
  • 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.
    Technical developments • Lowpriced 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.