10

GODREJ CONSUMER PRODUCTS LTD.

AGENDA

• Business overview

Godrej Consumer Products Limited

Ministering to the masses

Packaging innovations

Direct To Trade

Strengthening Core Business

Supply Chain Management

Conclusion

5

GROUP STRUCTURE

LEGEND

Holding Company Division Corporate Entity Joint Venture International Subsidiary

GODREJ & BOYCE

Appliances

Construction

Electricals

Interio

Lawkim Motors

Locks

Material Handling

Precision Engineering

Precision Systems

Prima

Process Equipment

Security Solutions

Storage Solutions

Tooling

Godrej Infotech

Godrej Efacec

GODREJ INDUSTRIES

Chemicals

Estate

Finance

Godrej Consumer Products

Godrej Properties

Godrej Agrovet

Godrej Household Products Limited

Godrej Hersheys

Godrej Tyson Foods

Keyline Brands

Kinky

Rapidol

Godrej Global Middle East

Godrej Nigeria

Megasari Group

Issue Group

9

SOME INTERESTING FACTS

Godrej touches the lives of 470 million Indians everyday

• The Godrej brand touches more Indians on a daily basis than any other Indian

owned group or brand today

• Godrej sells 6 billion candies a year, that’s approximately one candy for every

man, woman and child on the planet

• We produce over 1 billion cakes of soaps a year, and the Godrej No.1 soap is

amongst the highest selling soaps in the country

• Godrej sells one refrigerator every 30 seconds in India

• Business Week lists GCPL amongst Asia’s 100 fastest growing Companies

• Three out of every four Indian banks are secured by Godrej

• Godrej manufactures Cryogenic engines that power India’s space program

operations, as shown in the figure below.

Godrej in the UAE

Godrej has been exporting its products to the UAE

market for the past 30 years. Godrej and Boyce,

one of the premier companies of the Godrej

Group, has set up its own establishment, Godrej

Global Mid East FZE , at the Sharjah Airport

International Free (SAIF) Zone in 2002.This

establishment oversees the entire operations

of Godrej and Boyce in the Middle East.

Godrej products are offered in the UAE through

seven divisions of Godrej and Boyce, which include

the Security Equipment Division, the Furniture &

Interiors Group, the Storage Solutions Group, the

Material Handling Equipment Division, the Locks

Division, the Precision Equipment Division and the

Prima Division.The company also plans to

Company Background

The Godrej Group was established in 1897 by

Ardeshir Godrej. Headquartered at Mumbai in India,

the group is headed by Adi Godrej, the Chairman

of the group.The Godrej Group is one of the oldest

and largest engineering and consumer products

groups in India. It is involved in the businesses of

consumer products, office equipment, consumer

appliances, chemicals, agri products, security

equipment, office automation, industrial products,

storage solutions, precision equipment, construction,

furniture, automated warehousing, process

equipment, machine tools and material handling.

Apart from India, the Godrej Group has operations

in the USA, the UK, Singapore, Malaysia, Oman,

the UAE, Nepal, Sri Lanka, Bangladesh, South Africa,

Vietnam, China and Romania. Currently, Godrej

products are available across the Middle East,

Africa, South East Asia, Europe, North America

and the SAARC countries. In order to cater to

the increasing demand from the overseas market,

the group has set up manufacturing facilities in

Oman, Singapore, Malaysia and Vietnam.

The Godrej Group registered total sales of

approximately US$ 1.3 billion in the financial year

ending 31 March 2006 (FY06).The group employs

a workforce of approximately 23,000 personnel.

Godrej in the Arab World

The Godrej Group generated approximately

15 per cent of its total revenue from overseas

GODREJ GROUP

The Godrej Group Revenue Break-up: 2005-06

Source: OneSource(Press Trust of India, 23 June 2006)

Domestic Markets

International Markets

85%

15%

also supplied 42 Strong Room doors to the Gold

Soukh in Sharjah. It has also received a large order

for furniture and storage solutions from the

National Guard of Saudi Arabia.The precision

engineering department of Godrej received large

orders from Kuwait and Qatar worth nearly

US$ 6 million.Thus, the company's focus on

quality and cost has propelled the success of

Godrej in the Middle East.

Streamlined Distribution and Supply Chain

Godrej also owes its success in the Middle East to

its supply chain management system. Its structured

supply chain ensures the timely delivery of Godrej

stocks to its distributors in India and abroad,

thereby minimising inventories. In this system,

Godrej continuously tracks the sales of its products

at the distributor level and replenishes stocks

whenever the demand from a particular distributor

increases.This enables the group to respond

quickly to global market fluctuations.

Future Plans

Focus on Growth in the Middle East

The Middle East region offers tremendous potential

for business growth.This is because of the new

projects set to begin in the UAE, re-export

opportunities, and the reconstruction work being

carried out in Iraq. Pursuing its vision statement -

'Godrej in every home and workplace' - the Godrej

Group plans to expand its product offerings in the

Middle East market. Godrej plans to launch new

products in this region that are suitable for

domestic and commercial purposes.

Godrej also plans to expand its marketing and

distribution network in the Middle East to offer

its products across the UAE, Kuwait, Oman, Qatar,

Saudi Arabia and Yemen.

introduce its appliances division in the UAE.

Godrej Agrovet, one of the companies of the

Godrej Group focusing on the agricultural sector,

has acquired controlling stakes in Al-Rahaba, a

company that runs broiler farms in the UAE.

Godrej in OmanGodrej and Boyce, along with the Khimji Group of

Oman, has set up a manufacturing unit in Oman to

manufacture furniture and other products.

Godrej (Malaysia) Sdn. Bhd. and Godrej (Singapore)

Private Limited, subsidiary companies of the Godrej

Group have established an associate company in

the Sultanate of Oman, which manufactures the

following range of products - steel office furniture,

shelving systems, security equipment and custom-

built steel fabrications.These products are

exported to various regions in the Middle East.

Godrej in Other Arab Countries

Godrej Consumer Products Limited, a premier

company of the Godrej Group and a major FMCG

player in India, exports its products to Bahrain,

Kuwait, Oman, Qatar, Iraq, Saudi Arabia, the UAE,

Sudan,Yemen and Egypt in the Middle East. Godrej

Sara Lee, a joint venture with Sara Lee

International, also exports its products to a lot of

these countries and is the market leader in Yemen

with the Jet brand.

Success Factors

Focus on Quality and Cost

Godrej attributes its success in the Middle East

to its focus on quality, innovative designs and world

class manufacturing facilities, which enables the

company to offer competitively priced products

to its consumers. Godrej safes account for

approximately 35 per cent of the market share

in the UAE and are widely used in jewellery shops.

Its steel storage products line occupies an

estimated 20-per cent market share. Godrej has25

16

Home care built around household insecticides

Hair care built around hair colour

Personal wash

THE BENEFITS OF FOCUS

Leverage a common innovation pipeline

Compete effectively against global competitors

Leverage scale and scope synergies in sourcing and operations

Launch other GCPL categories in these geographies over time

Indian operations can use Latin America

as a strong source of learning and

innovation in hair colours

Operational efficiency strengths in Indian

insecticide operations transferred to

Indonesia, Bangladesh, etc

Common purchase of active ingredients

and perfumes in both household

insecticides and hair colours across

global portfolio

Categories of

focus

Benefits of

focus & scale

Cross

pollination

between

geographies

16

17

Primary focus for growth will continue to be domestic (within India)

However, we will also tap into growth opportunities available in attractive emerging markets

This will be largely through acquiring strong local brands with seasoned management teams

GLOBALIZATION STRATEGY OBJECTIVES

Leverage GCPL’s fundamental proposition (superior quality affordable products) in markets with

significant middle and bottom of the pyramid population

Add tremendous value to regional jewels in our markets of choice through the rigor of our

processes, operational discipline, manufacturing and sourcing strengths, etc

Bring back learnings and technology for the Indian market and strengthen our domestic

portfolio

On a long term basis, not more than 30-40% of GCPL’s revenues and profits

We will look at strong regional brands with a relative market share > than 0.5

Great growth and developmental opportunities for our employees through global exposure

Business

focus

Investment

thesis

Goal for

international

business

Employee

proposition

17

18

Asia, Africa and South America are the world’s fastest growing continents

We operate household insecticides, hair colour and personal wash as our core categories in India

We have focused on three core categories emerging from this strong local base in scanning the 3

identified continents - household care, hair care and personal wash

Based on the development of these categories in the countries in these 3 continents, we have a further

shortlist of countries within Asia – China, Indonesia, Malaysia, Vietnam and the SAARC countries

OUR 3 X 3 STRATEGY

Strength of management teams is one of the most critical criteria in assessing targets

Aligning incentives with management teams for taking local businesses to full potential

Ensure that autonomy is maintained - central resources are deployed as per need

Deploy Godrej resources in HR, Finance and Operations to cross-pollinate Godrej processes

Clear process for reviews and sharing

Rigorous screening of opportunities

Strong understanding of each market

Robust investment thesis

Detailed due diligence

Markets &

categories

Values based

Partnering

approach

Disciplined

M&A

18

22

SUCCESSFUL TRACK RECORD OF PRODUCT

INNOVATION & LAUNCHESGodrej Protekt – Hand Sanitizers, Hand Wash

& Wioes Launched in 2010

Premium Hair Color Brand

Launched in mid year 2010

Lime & Aloe Vera and Moisturizing Soap

launched in 2010

Launched Salon Kit in 2010

Low Smoke Coils, Mosquito Cream,

Mosquito Spray, Seek & kill insecticide

spray

Launched toiletries range in 2010

15

STRENGTHENING CORE BUSINESSES AND BRANDS

Brand

focus

Category

focus

Leadership

focus

15

LEADING MARKET POSITIONS

•#2: soaps in India

•#1: hair colors in India

•#1: home insecticides in India

•#1: liquid detergents in India

•#1: ethnic hair color in South Africa

•#2: hair extensions in South Africa

•#2: medicated soaps in Nigeria

•#2: home insecticides in Indonesia

•#1: air fresheners in Indonesia

•#1: wet tissues in Indonesia

•#2: hair colors in Argentina

Strategy Update offering Premium products at value Prices

Godrej Product Portfolio

• Soap : - Cinthol lime, Cinthol regular, Cinthol

international, fair glow, Godrej no.1

• Hair color: Godrej hair dye,- liquid, powder,

Colorsoft hair color, Nupur hair dye, Kesh kala,kali mehndi, Godrej Renew, Godrej Liquid &Powder Hair Dyes, Godrej Kesh Kala Oil

• Liquid detergent: Ezee

• Toiletries: Skin cream, shaving cream,

talcum powder, Cinthol talc, Godrej no.1 talc,Cinthol perfumes

KEY BRANDS

When Mr. Vivek Gambhir, Managing Directorventured into a small kirana store, the ownerwalked up to him with a sachet of GodrejExpert Rich Hair Crème, a hair color. Gambhirwas surprised when he expressed amazementthat the company could offer premiumproducts at an affordable Rs. 30/-. Thesmallest pack of even an ordinary rival productcost no less than Rs.60/-. The retailerremarked: "You are launching innovativeproducts almost every quarter when therest are cutting spends."

Without compromising on quality, we cut costs throughpackaging innovations and smart sourcing: VivekGambhir, Managing Director, Godrej Consumer

Ministering to the masses

The 115-year-old company realized it had to do something quickly to keep consumers interested

Changes done by Goderej :-• The century-old red and white Godrej logo got

an infusion of blue, pink and green for a more contemporary look.

• Brighter Ideas

• Instead of giving all its brands premium status,Godrej tried to change consumption habits at thebottom of the pyramid by offering qualityproducts at value prices

• Delight customers with an affordable productwithout compromising on quality

• Direct To Trade

• Supply Chain Management

Godrej brought costs down mostly through packaging innovations

Godrej Powder Hair Dye became Godrej Expert Rich Hair Crème

Good Knight mosquito repellent became Good Knight Fast Card

Ø Most suitable for Major Distributor supplywho need Full Truck Loads.

Ø Reduces Inventory at W/H level.Ø Reduces handling and operational cost.Ø Improve quality of service and customer

satisfaction.

oDirect to trade: Immense SCM Opportunity

Direct To Trade

Factory Stock Point Dealer

Sampark: New initiative connecting distributors.

Sahayog: Connect to the suppliers, 1200 distributors,400-450 are A-class distributorscontributing 75-80% of the total business, 750-800 distributors are B & C class.

Benefits:–Sales orders generated on same day slashing delays.–Convenient Data Flow–Portal framework - cutting edge concept–Daily visibility of Retailing information.–Lower carrying cost to distributors.–Reduced Product Stagnation.

–Better Decision Making about forecasting

Supply Chain Management

The strategy of offering premium products for less has worked.Its top line has grown by 42 per cent and bottom line by 38 per cent, year-on-year for the past five years. Its market capitalization has risen 42 per cent in the past year to Rs28,317 crore.Almost 48 per cent of its revenue comes from international acquisitions. These include the Kinky, Rapidol and Tura brands, and the Darling Group, all in Africa, Indonesia's Megasari , Makmur Group in Asia, and the Issue Group, Argencos and Cosmetica Nacional in South America

Strengthening Core Business & Brands

Clear Focus on 3 X 3 STRATEGY

Godrej have a clear focus on our 3x3 strategy, which is concentrated on three business categories in three geographies," , referring to Africa, Asia and South America. “Godrej continue to drive growth where they ... have a competitive advantage, byproviding consumers with superior quality products at affordable prices."Relationship with distributors, suppliers &retailers will give an competitive edge in along run. GCPL getting a edge byconnecting close with the Suppliers,Distributors & Retailers(Sampoorna in process)

Conclusion

Prajakta Sawant Roll No :- 2013022

Prajakta Sawant

Roll No :- 2013022