October 2002

Godrej Consumer Products LimitedGodrej Consumer Products Limited

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Agenda

Background

Product Profile

Performance

Shareholder Value

Initiatives

3

Background

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The Company GCPL is a result of the demerger of the Consumer Products Division of Godrej Soaps Limited

(now renamed Godrej Industries Ltd.) Focused FMCG company Presence in Personal, Hair, Fabric & Household care market categories Market Leadership in Hair Colour & Liquid Detergents High Standards of Corporate Governance Owns all its Brands

63.0%26.8%

8.2%1.9%

GCPL - category-wise Revenue and GrowthFigures in parentheses refer to revenue growth rates (net of excise) over corresponding period of previous year

Soaps

Liq.DetergentsToiletries

Hair Care 58.1%

25.1%

9.0%

7.8%

FY 2002

Soaps

Liq.Detergents

Toiletries

Hair Care

H1 FY2003

(10%)

(10%)

(-6%)

(17%)

(54%)

(14%)(14%)

(-10%)

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Godrej Consumer - A new focus

Godrej Soaps Limited

Consumer business was part of the

conglomerate, with core profitability of the

consumer segment not being unlocked

Godrej Industries focus on AOS and Fatty

Alcohol along with investments in Godrej

Sara Lee and Godrej Agrovet was not

appreciated by the market

Consequently, GCPL was de-merged

from Godrej Soaps Limited (renamed as

Godrej Industries Limited). GCPL’s focus

is the FMCG sector with emphasis on

personal & household care

Godrej Consumer

GCPL emerges as one of the fastest

growing FMCG companies with a CAGR of

20% for past 3 years

Four categories: soaps, hair colours,

toiletries and detergents

Focus on employee empowerment and

performance linked incentives has led to this

phenomenal growth

Asset efficiency ratios rank among the

highest amongst peers with ROCE for

FY2002 at 90%

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Godrej Consumer Products Ltd: A new management

Board of Directors Qualifications

Adi Godrej - Chairman & Managing Director M.S. (MIT)

Jamshyd Godrej B.S. (Illinois Institute of Technology)

Nadir Godrej B.S. (MIT), M.S.(Stanford), M.B.A. (Harvard)

Bala Balachandran Distinguished Professor at Kellogg

Rama Bijapurkar Faculty at IIMA, Marketing Strategist

Bharat Doshi FCA, FCS, LLM, PMD (Harvard)

Anupam Puri Ex-partner, McKinsey

Hoshedar Press -Exec.Director & President B.Tech (IIT), PGDBM (IIM)

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Current Shareholding Pattern & Shareholder Information

FIIs, NRIs & OCBs8.1%

Individuals & Other Bodies

Corporate17.4%Promoter

Group69.4%

Banks, Insurance Cos, MFs and FIs

5.1%

GCPL shares are traded on The

Stock Exchange, Mumbai (BSE),

National Stock Exchange (NSE) &

stock exchanges at Chennai,

Kolkata, Delhi and Ahmedabad.

Listed on BSE on 18-June-01

Listed on NSE on 20-June-01

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Facilities & Network

Manufacturing Facilities - 3

Branches - 4

C & F Agents - 32

Distributors - 2000

Retail Outlets covered - Above 500,000

Retail Coverage of any Godrej Soap - 1.6 mn

Retail Coverage of any Godrej Hair Dye - 1.2 mn

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Product Profile

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GCPL Brand Matrix

Categories Industrysize

GCPL'ssales

Marketshare (%)

Key Godrej brands

Toilet soap 41,047 2,409 5.8 Cinthol Lime, Cinthol Regular, CintholInternational, FairGlow, Godrej No.1

Hair colour 2,572 1,117 44.6 Godrej Hair Dye - Liquid, Powder, ColourSoft,Nupur, Kesh Kala, Kali Mehndi

Liquid Detergent 310 254 81.9 Ezee

Toiletries

Skin cream 12,594 236 1.9 FairGlow

Shaving cream 1,190 122 10.5 Godrej

Talcum powder 6,082 81 1.3 Cinthol

Sources: ORG-MARG retail sales audit for FY2002

Rs mn

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Key Brands

Fabric & Household Fabric & Household CareCare

Hair CareHair CarePersonal CarePersonal Care

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Performance

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GCPL Performance Highlights

GCPL outperformed its peers in the FMCG sector

Market Growth GCPL GrowthQ2 FY03 FY02 Q2 FY03 FY02

Toilet Soaps -3.1% -6% 16% 10%

Hair Colour -1.5% 10% 18% 17%

Liquid Detergents 22.4% -11% 51% 10%

Total Sales (net of excise) (Rs mn)

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YoY Sales Growth (%) -GCPL vs FMCG Industry

-10%

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0%

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30%

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GCPL Industry

Source: ORG MARG retail sales audit for FMCG industry

Q2 FY03 figures for Industry is for July & August ‘02

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Toilet Soaps

Sales (net of excise) (Rs mn)

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Contributed 63% to own branded sales in

H1 FY03 (58% in FY02)

Soap industry faced an extremely

challenging environment in FY02. The top

10 brands contracted and overall sales for

the industry was down by 6%

“Godrej No. 1” continues to outperform

and gain market share in the sub-popular

category (now available in 3 variants: Rose,

Sandal & Natural)

Godrej Fairglow consolidated position in

the fairness soap category

Increased focus in the Cinthol range to

improve presence in the premium segment

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Hair ColourSales (net of excise) (Rs mn)

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Contributed 27% to own branded sales in

H1 FY03 (25% in FY02)

Leader in this category with a 44.5%

market share in H1 FY03 (44.6% in FY02)

Presence across all price points: powder,

oil, liquid and high end fashion colours

Low penetration suggests high growth

potential

Production at Guwahati to optimize fiscal

benefits

Launched new variants in the Godrej

Colour Soft range and also Godrej

Nupur in sachets

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Liquid Detergents

Sales (net of excise) (Rs mn)

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Contributed 8% to own branded sales in

FY02

Ezee is the market leader with a share

of 83.3% in H1 FY03 (82% in FY02)

Demand is seasonal in nature with

application on woolens and soft clothing

Plans to introduce a product targeted at

other washing applications to reduce

seasonality

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ToiletriesSales (net of excise) (Rs mn)

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Contributed 8% to own branded sales in H1

FY03 (9% in FY02)

Presence in shaving cream, fairness cream,

talcum powder and deodorant

High growth category providing exciting

opportunities

Gaining market share in shaving creams

Production at Guwahati to optimize fiscal

benefits

New products in deodorants and other

categories to drive growth

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Market Shares

Source : ORG Data

All figures shown are % for All India Value Market Share

2000-01 2001-02Apr-Sep’02

Toilet Soaps 5.6% 5.8% 5.8%

Hair Colour 42.1% 44.6% 44.5%

Liquid Detergents 75.9% 81.9% 83.3%

Fairness Cream 2.1% 3.4% 2.5%

Shaving Cream 10.3% 10.5% 12.1%

Talcum Powder 1.7% 1.3% 1.7%

Deodorant - - 1.5%

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GCPL’s Performance Highlights

Growth drivers for future earnings

Low incremental capex

Growth in revenues expected to exploit economies of scale in purchases and manufacturing,

further enhancing operational efficiencies

Our advertising and promotional spending to branded sales is at the higher end of the FMCG

sector as we invest aggressively in the business. A&P to Sales is lower in FY03 because of

efficiencies in buying media time, use of channels for rural market & efficient execution of

advertising.

(Rsmn) FY2002 H1FY03

Advertisement & Sales Promotion 668 287

Total A & P to own brand sales (net of excise) % 17% 14%

(Rsmn) FY2002 H1FY03

Depreciation (Rs mn) 94 45 Depreciation to net revenues % 2% 2% Net Block 935 906

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H1 FY03 PerformancePower Brands:

Cinthol, Godrej FairGlow, Godrej No.1, Godrej Hair Colour, Ezee.

Power Brands sales grew by 17%

Toilet Soaps

Godrej Brand Soaps sales grew by 14% (against degrowth of the category) from Rs.1158mn in H1 FY02 to Rs.1314mn in H1 FY03, led by Godrej No1 which grew by 96%

Relaunched Godrej FairGlow

Launched special trade and consumer initiatives to mark the completion of 50 years of the Cinthol Brand

Hair Colour

Hair Colour sales grew 14% from Rs.489mn in H1 FY02 to Rs.560mn in H1FY03

Launched Mehendi Power in sachets under the brand name Godrej Nupur

Launched Copper Brown, Dark Mahogany & Burgundy fashion shades of Godrej Coloursoft.

No.1 in volume in fashion colours

Godrej HairCare Institute (GHCI) salon activity intensified

PHD sachet distribution continues to grow with special focus on rural distribution – crosses 1.2 million outlets

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Summary Financials

Rsmn FY2002 H1 FY03

Net sales * 4,586 2,335

Operating profit 755 425

Depreciation 94 45

Interest & Financial charges (net) 45 14

PBT 632 371

PAT 420 268

Networth 531 601

Debt 225 344

Net Fixed Assets 935 906

Net Current Assets (285) (63)

Cash & cash equivalents 132 132

Operating Profit Margin (%) 16 18 Net Profit Margin (%) 9 12

RoCE (%) 90 79

RoNW (%) 79 89

Dividend payout ratio (%) 80 87

* Sales are net of excise duty

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Shareholder Value

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High Free Cash Flow Generation

GCPL generates significant free cash flows, which are returned to shareholders as dividends

FY 2002 Div % Div per share

1st Interim Dividend 50.0% 2.00

2nd Interim Dividend 87.5% 3.50

(on face value of Rs.4 Share)

FY 2003

1st Interim Dividend 50.0% 2.00

2nd Interim Dividend 50.0% 2.00

Strong EVA growth

Lower capital expenditure coupled with negative working capital enabled a high EVA of Rs301mn

for FY02 (Rs.202mn for H1 FY03). EVA to capital employed at 40% for FY02 (41% in HI FY03)

We remain committed to deliver shareholder value

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High Free Cash Flow Generation

GCPL has completed the shares buyback

Shares bought back

Number % of share capital Amt utilised Avg price Period

1,456,593 2.5 Rs.92.6mn Rs.64 Jan-Jun 2002

411,962 0.7 Rs.46.0mn Rs.111 Jul-Sep 2002

Third shares buyback

Approved by the Board of Directors on October 22, 2002

Maximum outlay - Rs.100 mn

Buyback from open market (BSE & NSE) at market price

Maximum price of Rs.175 per share of face value of Rs.4/-

Buyback for both Demat as well as physical shares

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Share Price Performance

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BSE 200 Index BSE Sensex Godrej Consumer

The stock outperformed the broad and narrow indices

Source: Prowess

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500000

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2500000Godrej Consumer Volume (RHS)

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Initiatives

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Initiatives

Divisionalisation of business carried out with the formation of Soap and Personal Care teams

effective 1st Oct ’02 with mfg, procurement and marketing under one roof

Focus on Personal, Hair & Fabric care categories

Consumer centricity to guide all business actions

Restructuring of Distribution System - Super & Sub Stockists appointed

SKU Rationalisation

Implementing distributor-level inventory management systems for its key dealers

Leverage group synergies such as combined purchases of raw materials and media

Exploit tax benefits in backward areas; new factory in Guwahati to enhance profitability

Return excess cash to the shareholders through dividend and shares buyback

EVA Implementation complete across the organisation.

Measurement & Remuneration based on EVA. Introduction of Individual Performance Factor

(IPF) in year 2

Red & Blue Team Project - Think Tank - Young Executive Board constituted

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Thank You