Godrej is an Indian conglomerate established in 1897. It operates in sectors like real estate, consumer products, industrial engineering, appliances, furniture, security and agriculture. The document discusses Godrej's vision, mission, products, subsidiaries, board members, operations and applications of economic concepts to Godrej's electronics business. It analyzes factors affecting supply and demand of Godrej electronics products using concepts like production possibilities frontier, substitutes, complements and controllable/uncontrollable factors.

1. KADI SARVA VISHWAVIDHYALA
S.K.PATEL INSTITUTE OF
MANAGEMENT & COMPUTER STUDIES

2. SUBJECT:- ECONOMICS FOR MANAGERS
Topic:- Applications of economic concepts to the
Godrej/electronics
Prepared By:-
Name DIV Roll No
Bhuva Sunil L. A 11
Jivani Dhaval V. A 36
Katariya Mehul N. A 40
Kukadiya Gunjan V. A 47
Mandavia Dhaval G. A 50
Submitted On:- Submitted To:-
21st Nov.2013 Prof. Sonu Gupta

3.  Type : Public
 Industry : Conglomerate
 Founded : 1897
 Founder : Ardeshir Godrej
 Piroisha Godrej
 Headquarters : Mumbai,Maharastra,India
 Area served :Worldwide
 Key people : Adi Godrej (Chairman)
 Nadir Godrej
 Products : Real estate,FMCG,Industrial engineering,
 Appliances,Furniture,Security,Agricare
 Revenue : RS.21600 crore(US$3.3billion) (2013)
 Employees : 26000 (2013)
 Website : www.godrej.com

4. Vision
“Be the most trusted solution provider in electrical and
electrical technologies”
Mission
“Energizing industry through advance technology”

5. Structures of Godrej Company:

6. ABOUT COMPANY
 The Godrej Group is an Indian conglomerate headquartered in Mumabai,
Maharashtr,india, managed and largely owned by the Godrej family. It was
founded by Ardeshir Godrej Pirojsha Godrej in 1897, and operates in
sectors as diverse as real estate, consumer products, industrial engineering,
appliances, furniture, security and agricultural products.Subsidiaries and
affiliated companies include Godrej Industries and its subsidiaries Godrej
Consumer Products , Godrej Agrovet , and Godrej Properties , as well as the
private holding company

7. TIME LINE
 1897 - Godrej is established in 1897
 1902 - Godrej makes its first Indian Safe
 1918 - Godrej Soaps Limited incorporated
 1961- Godrej Started Manufacturing Forklift Trucks in India
 1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps
 1974 - Veg oils division inWadala, Mumbai acquired
 1990 - Godrej Properties Limited, another subsidiary, established
 1991 - Foods business started
 1994 - Transelektra Domestic Products acquired
 1995 - Transelektra forged a strategic alliance with Sara Lee USA
 1999 - Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej Infotech Ltd.
 2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps Limited. Godrej Soaps
renamed Godrej Industries Limited
 2002 - Godrej Tea Limited set up
 2003 - Entered the BPO solutions and services space with Godrej Global Solutions Limited
 2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers by providing professional pest
management services
 2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej Beverages & Foods Limited
 2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North America and the company
was renamed Godrej Hershey Foods & Beverages Limited
 2008 - Godrej relaunched itself with new colourful logo and a fresh identity music
 2010 - Godrej launched GoJiyo a free, browser based 3D virtual world
 2011 - Godrej & Boyce shuts down its typewritermanufacturing plant, the last in the world.

8. OPERATIONS OF GODREJ
 Chemical & Commodities
Chemicals
Veg Oils
 FMCG
Godrej Consumer Products
Keyline Brands UK
Rapidol South Africa
Godrej Global Mideast FZE
Godrej SCA Hygiene Limited
Godrej Hershey Foods & Beverages Limited
Nutrine
Godrej Sara Lee

9.  AGRI
Godrej Agrovet
 Animal Feeds
 Goldmohur Foods and Feeds
 Golden Feed Products
 Higashimaru Feed Products
 Oil Palm
 Agri Inputs
 Godrej Aadhaar
 Nature's Basket
 Integrated Poultry Business
 Plant Biotech
 Services
Godrej HiCare (Pest Management Services)
Godrej Global Solutions (ITES)
Godrej Properties

10. BOARD MEMBERS
Adi Godrej is the Chairman of the Godrej Group and several entities that are part of one
of India’s leading conglomerates. These include Indian companies like Godrej Industries,
Godrej Consumer Products, Godrej Properties as well as international companies such as
Keyline Brands U.K and Rapidol South Africa. He is also the Chairman of The Board of
trustees of Dadabhai Navroji’s Memorial Fund.
As a Director of numerous firms, including Godrej & Boyce, Godrej Agrovet, Godrej
International and Godrej Global MidEast FZE he is responsible for shaping the long term
strategy for these organizations and driving a focus on value creation.
Over the last five decades Adi has played an important role in the development of a
variety of industries by leading key organizations of trade and commerce as the former
Chairman and President of the Indian Soap & Toiletries Makers’ Association, the Central
Organisation for Oil Industry and Trade, the Solvent Extractors’ Association of India, the
Compound Livestock Feeds Manufacturers’ Association, the Indo-American Society and
as member of the Governing Board of the National Council of the Confederation of Indian
Industry.


11.  Nadir Godrej Mohan Pusalkar
 Naushad Forbes Jamshyd Godrej
 Kavas Petigara Vijay Crishna
 Kersi Dastur Tanya Dubash
 Amit Choudhury Nitin Nabar
 Saleem Ahmadullah Keki Elavia
Management Team
 Adi Godrej
 Nadir Godrej
 Tanya Dubash
 Nisaba Godrej
 Pirojsha Godrej
 A. Mahendran
 A. Mahendran
 Balram Yadav

12. CH-1 PRINCIPLES OF ECONOMICS
(1) Company face trade off in making a investments inmarketing
for new launches.
For launching or making a new investment in electricals and
appliance company face trade off that that they assure more output
with a same level of input means showing an efficiency.
The chairman of a company,Adi Godrej belive that company’s
strong performance is a reflaction of a clear strategic focus and
superior execution with more productive efficiency.
Company also except our profit performance to improve on the
back of stronger traction from their launches and favourable input
Prices.

13. (2) Cost of something is what one giveup (Opportunity Cost) to get
it
It is related to a decision of company’s investment proposal
and project undertakings.
Company taking a decision related to investment more in
a Properties , Chemicals , Services and Agro businesses rather than
Electricals and Consumer goods.
Even though company established a good position inconsumer
Goods, in present year they go with a higher investment and different
strategic decisions related to the different isuues of products category
and its development.
In a tough operating environment,company’s endeavour focus
On represent the company’s growth and opportunity in diverse array of
Business.

14. (3) Rational People think at the Margin
For analysing Cost-benefit godrej company always look for a
how muh is the net addition in different services and products offered
by them.
During the time, they also go through the rational behavior of the
customer and purchasing power of the customer.
ex. Cost of purchasing consumer durables or purchasing of electricals.
there is a historical cost is occurred in company’s different
initiatives and other under takings but here hstorical (sunk) cost is not
considered.
Total Revenue= RS.21600 crore
Implicit costs of Godrej Electricals = 3200 crore
Explicit costs of Godrej Electricals = 4400 crore

15. (4) People respond to Incentives
It represents a something that includes a person to act towards a
incentives given by a company.
Godrej provides a incentives towards large purchase of by
customers of electricals products and also provides a festival discount on
a special offer to purchase of a products of Godrej Electronics.
Peoples also prefer to puchase a products provided or offered bya
Godrej Electricals and other consumer durables.
Positive economic incentives reward people financially for making
certain choices and behaving in a certain way.
Coupons, sales, freebies, discounts, and rewards can be positive
economic incentives.

16. (5) Trade can make every one better off
It represents a rather than being self-sufficient,people can
specialised in producing one good or services andexchange it for
other goods.
Godrej electricals make a import and export with a European
countries,Asia,Africa,LatinAmerica.
Godrej electricals get a raw materials from this companies and
also supply a finished product in this company for their product
accomplishment and Future business relations.
Indonesia is also one of the greater supplier of raw material to
the Godrej electricals and other group of Godrej companies.

17. (6) Markets are usually a good way to organised economic activity
In a business and corporate world Godrej electrical have
large many no. of byuer and seller in terms of a supplier and customer
In india there is a mixed economy so according to company
also decide a what to produce,how to produce and how much to
produce and also decide a potential buyer to buy a products of a
Company’s portfolio.
In a particular situation, company also follow capitalism
situation which is market oriented towards a company’s product.
Due to BRICS agreement of INDIA,Godrej electronics has to
follow a guidelines and norms regarding a trade agrrement and also
perform according to market scenario.

18. (7) Goverments can some times improve market outcomes
Due to indian governments acts Godrej electronics also follows
act like:
MRTP act
FEMA act
FERA act and many more.
Due to governments improvement godrej relax a fair amount of import
and export duties .Government also provide a certain subsidiy on a
particular product produce by a company.
Government also control over black marketing of a product
Government also make a restriction of Godrej’s chemical Pollution
which is harmful to people and society as a whole.
Government also monitor the external operations of the Godrej
electronics

19. (8) A country’s standard of living depends on its ability to
produce goods & services
India is such a country that per capita income is high
compare to under developed countries and that shows the peoples of
a country are capable enough to purchase or consume a products
that serves by a companies.
Purchasing power parity of a people decide that their standard of
living and its way.
Due to country’s higher standard of living ,companies have good
equipment to produce a good,skillfull employees and well equipped
technology.
Godrej company is such that they take a advantage of this such
environment with producing a qualitable products at fair prices.

20. (9) Prices rice when government prints too much money
When there is a supply of a money is increased in a market
therfore, inflation also may increased substantially and governments
needs to solve this problem with a following:
- Demand pool inflation
- Cost pool inflation
Godrej Electronics mainly deals with a demand pool inflation because
of company ‘s qualitable products with a greater productivity to
produce a product.
In the inverse relationships of a inflation and unemployment company
can some times benefited also by tackling in a boom and recession
period to take care of suppplier and customer of a company.

21. (10) Society faces a short term trade off between inflation and
unemployment
Inflation means increased in the general level of prices.
In a inflation company can’t sell a product as sell in normal days
because of that company’s efficiency decrease and it may cause
overall effect of a companies production cycle.
In a unemployment people not have a much saving due to not having a
employment and because of this peoples efficiency to purchase is
decrease and due to demand of company’s product is also decreased.
Due to all reason company’s effectiveness may cause and company
can not take a right decision and due to society face a short term
tradeoff

22. CH-2 THINKING LIKE AN ECONOMIST
Production Possibilities Frontier:
Point on graph Production
PIRE PDS
A 500 0
B 400 1000
C 250 2500
 Production Posibility curves shows whether resources used
judiciusly or not.
 It determines the Develop,underdevelop and developing
economy.

23. GRAPHICAL PRESENTATIONS OF PPF

24. CH-4 MARKET FORCES OF SUPPLY AND DEMAND
Products of a Godrej Electronics :
 Industrial Electronics & Automation (IEA)
 Compressed Air Solutions (CAS)
 Power Infrastructure and Renewable Energy (PIRE)
 Power Distribution Solutions (PDS)
 Green Building Consultancy Services (GBCS)
Substitutes of Godrej Electronics Product:
Industrial Electronics & Automation (IEA)
AC motor drive/Inverter
AC Servo Motor and Drive
Temperature controller
Programmable logic controller, PLC

25. (2) Compressed Air Solutions (CAS)
o Energy Audits & Reports
o Energy Saving Control Systems
(3) Power Infrastructure and Renewable Energy (PIRE)
o Electrical Solutions for Residential & Commercial
o Electrical Solutions for Industries
(4) Power Distribution Solutions (PDS)
o Godrej Electrak Lighting Trunking
o Under Floor Trunking
o Overhead Trunking
(5) Green Building Consultancy Services (GBCS)
o Green Building Design Consultancy
o Building Simulations
o Building Commissioning Services

26. Complementary goods of Godrej Electronics:
o Compressed air dryer
o Automatic drain valves
o PLC Automation
o Machine Automation
o Air Insulated Substations
o Transmission Lines

27. Controllable factors of Godrej’s product:
 Price of commodity
 Choices & Preference of a customer
 Availability of a product
 Seasonal demand of a product
 Sales after services
Uncontrollable factors of Godrej’s product:
 Income of a consumer
 Price of substitute
 Designs of electrical machines
 Demand of a electrical equipments