ASSIGNMENT

ON

GODREJ GROUP

SUBMITTED TO SUBMITTED BY:

Ms. Sukhjinder Baring Amanpreet Kaur

MBA 1C

INTRODUCTION TO CORPORATE

Godrej Group consists of two corporate entities:

1. Godrej Consumer Products

2. Godrej Industries.

Godrej Industries Ltd. (GIL) is India's leading manufacturer of oleo-chemicals and makes

more than a hundred chemicals for use in over two dozen industries. It also has a major

presence in food products such as refined oil and tetra pack fruit beverages. Besides, it

operates businesses in medical diagnostics and real estate.

Besides its three businesses, Godrej Industries also runs four divisions — Corporate

Finance, Corporate HR, Corporate Audit and Assurance and Research and Development

— which operate on behalf of the entire Godrej Group.

GIL has built a strong manufacturing base capable of delivering international quality

products at competitive prices. It operates two plants, one at Valia in the Indian state of

Gujarat and a second at Vikhroli in suburban Mumbai. The company's products are

exported to 40 countries in North and South America, Asia, Europe, Australia and Africa,

and it leads the Indian market in the production of fatty acids, fatty alcohols and AOS.

Godrej Consumer Products (GCPL) is a leader among India's Fast Moving Consumer

Goods (FMCG) companies, with leading Household and Personal Care Products like

Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fair glow, Ezee, Protekt and

Snuggy. It is one of the largest marketers of toilet soaps in the country and is also leaders

in hair colours and household insecticides. Each company has several SBU’s, divisions

and factories. They are presently exporting their products to 30 countries.

HISTORY OF GODREJ GROUP

Started in 1897 as a lock manufacturing company, the Godrej Group is today one of the

most accomplished and diversified business houses in India. Godrej's success has been

driven by the company's commitment to delivering innovation and excellence. Through

the consistent application of this commitment and a century of ethical business conduct,

Godrej has earned an unparalleled reputation for trust and reliability.

In 1930, Godrej became the first company in the world to develop the technology to

manufacture soap with vegetable oils; that spirit of innovation has continued throughout

the organization's history. Today Godrej is delivering consumers exciting innovations

across a spectrum of businesses. The company's pursuit of excellence is equally well

established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only

security equipment whose contents were unharmed; an equal level of product quality

continues to be expected from every product bearing the Godrej brand name. Godrej

management understands that the company's greatest asset is the trust and faith that

consumers have reposed in it, and recognizes that the company must continue to earn this

trust. This translates to the organization delivering outstanding quality and value in

everything it does.

Godrej's ethical and visionary practices have allowed the company to successfully expand

into a number of businesses. Today Godrej is a leading manufacturer of goods and

provider of services in a multitude of categories: home appliances, consumer durables,

consumer products, industrial products, and agri products to name a few. A recent

estimate suggested that 350 million people across India use Godrej products. The group

has more recently entered the real estate and information technology sectors, and

management views these as avenues for enormous growth.

The Godrej Group stands in a strong position today. With annual sales in excess of $1

billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej

has proven its ability to deliver strong financial performance.

The Godrej Group

The Godrej Group has interests in a wide range of businesses. Apart from GCPL, the

major companies in the Group include:-

Godrej & Boyce Manufacturing Co. Ltd. – a leading manufacturer of office and home

Equipment including appliances, furniture, locks, security equipment, storage solutions

and Industrial equipment.

Godrej Industries Ltd. – a leading manufacturer of oleo chemicals that are used in more

than two dozen industries. The Company also has a presence in the foods business.

Godrej Agro vet Ltd. – the market leader in animal feeds and innovative agri products

in India. The Company also has a presence in the branded poultry, rural retailing and oil

palm sectors.

Godrej International Ltd. – engaged in international trading.

Godrej Sara Lee Ltd. – a joint venture with Sara Lee Corporation, USA and a leading

Manufacturer of household insecticides.

Geometric Ltd. – a specialist in Product Lifecycle management software solutions for

the Mechanical design, manufacture and industrial markets.

Godrej Properties Ltd. - a leading developer of residential and commercial premises.

Godrej Hershey Ltd. – markets juices, fruit drinks, soya milk based drinks, edible oil

and Packaged tea. In FY 2006, GBFL has acquired 100 percent stake in ‘Nutrine

Confectionery Company Pvt. Ltd.’ (Nutrine). In April 2007, the companies entered into a

joint venture with the Hershey Company, North America’s leading chocolate and

confectionery manufacturer, to Manufacture and distribute confectionery, snacks and

beverages across India. Being part of the Godrej Group allows Godrej Consumer

Products to draw upon the rich heritage and experience of the Group. In line with

GCPL’s vision and long-term business objectives, all corporate Decisions are

independently taken by the Company’s highly respected Board in conjunction with

competent management teams, keeping in view the best interest of all its stakeholders.

Godrej and Boyce

From locks to appliances. From furniture to conferencing equipment. From security

solutions to material handling. There isn't a category through which Godrej & Boyce

don't enrich life. They are a part of your life in many ways.

Godrej Consumer Products

As far as personal, hair, household and fabric care segments are concerned, Godrej is far

the market leaders. And this has been possible only due to their constant endeavor of

trying to provide customers with innovative, value for money solutions for their daily

needs.

Godrej Industries

Godrej Industries Ltd. is India's leading manufacturer of oleo chemicals and makes more

than a hundred chemicals used in over two dozen industries. It has a major presence in

food products such as refined oil and tetra pack fruit beverages.

Geometric Software Solutions

Geometric Software Solutions is a CMMI Level 5 company and the leading PLM

services provider with over 19 years of experience in CAD/CAM/CAE, PDM and MPM.

Godrej InfoTech

Godrej InfoTech is a CMM Level-4 company in the business of developing customized

software solutions and implementing ERP, CRM, and SCM software. Navision, Axapta,

Baan and encompass - an ERP from Godrej InfoTech, are uniquely positioned to address

Industry needs.

Godrej Sara lee

Godrej Sara Lee is a joint venture company between the Godrej Group, India and Sara

Lee Corporation, USA. They are the world's largest manufacturers of home insecticides.

The company is committed to the research and manufacture of quality household

insecticides, and holds a substantial market share.

Godrej Efacec

Godrej Efacec provides the latest warehousing or automated storage or retrieval system

solutions to the customers they give the best of - Technology from Efacec and quality

from Godrej.

Godrej Products

BRANCHES (SALES & SERVICE) AND BRANDED RETAIL CHAIN (GODREJ

LIFESPACE)

· MUMBAI, Ahmadabad, Bhopal, Dombivli, Indore, Jabalpur, Pune, Raipur, Thane

· NEW DELHI, Chandigarh, Faridabad, Ghaziabad, Gurgoan, Jaipur, Jalandhar, Jammu,

· Kanpur, Luck now, Noida

· CHENNAI, Bangalore, Coimbatore, Hyderabad, Kochi, Secunderabad, Trivandrum,

Visakhapatnam

· KOLKATA, Bhubaneswar, Guwahati, Ranchi, Patna

· The Company has a network of 48 Company-owned Godrej Lifespace Retail Stores,

more than 2,200 Wholesale Dealers, and more than 18,000 Retail Outlets.

The Company has Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo

(SriLanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC).

CORPORATE INFORMATION

BOARD OF DIRECTORS

The Board of Directors of the Company comprises thirteen Directors, which includes one

Managing Director : Mr. N. B. Godrej

Two Whole-time Executive Directors .: Ms. T.A. Dubash and Mr. M. Eipe.

The remaining ten are Non-Executive Directors, with seven of them being Independent

Directors. On

NON-EXECUTIVE DIRECTORS

Mr. A.B. Godrej

Mr. S.A. Ahmadullah

Mr. J. S. Bilimoria

Mr. V.M. Crishna

Mr. K.K. Dastur

Mr. N.D. Forbes

Mr. V.N. Gogate

Mr. A.B. Choudhury

Mr. K.N. Petigara

Mr. F.P. Sarkari

VISION

Godrej is dedicated to deliver superior stakeholder value by providing solutions to

existing and emerging consumer needs in the household & personal care Business. We

will achieve this through enduring trust & relentless innovation Delivered with

passion & entrepreneurial spirit.”

In conjunction with Company’s vision for “brighter living” for all its stakeholders, it has

developed a long-term vision for playing an active part in creating a more inclusive and

greener India. This vision has been named “Godrej Good & Green”.

MISSION

Godrej’s Mission is to operate in existing and new businesses which capitalize on the

Godrej brand and our corporate image of reliability and integrity .Our objective is to

delight our customer both in India and abroad.

We shall achieve this objective through continuous improvement in quality; cost and

Customer service .We shall strive for excellence by nurturing, developing and

empowering our employees and suppliers.

We shall encourage an open atmosphere conducive to learning and team work.

OBJECTIVES OF GODREJ GROUP

Over the last year, through an even more strategic approach to corporate social

responsibility, the Godrej Group has re-looked at how it can drive more meaningful

impact and further its commitment through shared value initiatives that create both social

and business benefits.

The Group aspires by 2020:-

1. To create a more employable Indian workforce

2. A greener India

3. Innovate for good and green products.

Specifically, goals for 2020 as part of “Godrej Good & Green” vision are:

• Training 1 million rural and urban youth in skilled employment

• Achieving zero waste, carbon neutrality, positive water balance and a 30%

renewable energy source

• Having a third of portfolio revenues comprising of good and/or green products and

services – defined as products that are environmentally superior or address a critical

social issue (e.g., health, sanitation, disease prevention) for consumers at the bottom of

the income pyramid The Good and Green vision and continued execution towards that

vision will be a strong focus for the Company going forward.

Objectives of Godrej Consumer Products Limited

1. Leverage and enhance the Godrej brand name and that of our brands.

One of our key strengths is being part of the Godrej group of companies and the strong

brand equity generated by the “Godrej” brand name. We believe that the Godrej brand

commands a recall amongst the consumers in India due to its image and goodwill

established over the years. We intend to leverage the brand equity that we enjoy as a

result of our relationship with the Godrej group of companies. Also, we plan to leverage

our existing brands, which have good recall with customers to introduce a wider range of

products. For example, we have leveraged our ‘Cinthol’ soaps brand to manufacture and

sell ‘Cinthol’ deodorants and ‘Cinthol’ talcum powder.

2. Focus on enhancing our sales and distribution network within the domestic

market

The Company has been focusing on consolidating its network of distributors in bigger

towns. We have a distributor in almost every major town in India. We believe that this

helps us to increase the availability of our products which in turn creates more awareness

for the products and improve the acceptance of new products.

The Company has created a network of super stockists and sub-stockists to tap the

opportunity in smaller towns and villages. Certain products like ‘Godrej Powder Hair

Dye’ sachet, 50 gram variants of soaps fulfill the needs of consumers in such territories

very well and in turn strengthen the distribution network in such areas.

We intend to increase our penetration in the Personal and Household Care segment. We

plan to achieve this through growth of our customer base and enlargement of our product

portfolio. We already sell certain products under different brand names which enables us

to target different socio-economic consumer segments. We also aim to provide an

improving level of service to our network of dealers and distributors, for example by

providing more frequent deliveries in order to reduce the dealers' inventory levels and

therefore their costs and incentivise them to promote our products.

3. To grow and expand our market share through organic growth

Our toilet soaps category has been outperforming the industry consistently and it grew by

21.00% in FY 09-10 (industry growth at 7.70%) during the same period the market share

of toilet soaps increased to 9.10% in FY 06-07 from 8.50% in the previous year.

Currently, the market share of toilet soaps is at 10.20% (2010-2011).

The hair color and toiletries categories grew by 12% and 20% respectively in FY 10-11

as compared to the previous year.

Towards this end we intend to focus on:

a. Value for money offerings; and

b. Unique variants of soaps like Godrej No 1 in ‘papaya and lotus’ variant.

4. To accelerate growth and expand our international presence through strategic

acquisitions and partnerships

While continuing to maintain growth momentum in the current territories, we intend to

explore expansion into new markets as well. We plan to continue to acquire

companies/businesses in the ‘personal and household care’ segment’ in India and

internationally. We have gained experience through our previous acquisitions and joint

ventures with established operators in foreign markets. We will evaluate any business

opportunities that arise in Indian and international markets and aim to harness our

experience of acquiring and integrating new markets with our current operations. We

intend to use a part of the proceeds towards entering into certain strategic acquisitions.

5. Continue to upgrade and modernize our plants and facilities to manufacture and

supply products at a low cost.

We currently operate five manufacturing facilities in India at Malanpur (Madhya

Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha

(Himachal Pradesh) and Sikkim. Further, our manufacturing facilities located abroad at

South Africa produce a range of personal care products and hair color products. We will

continue to maintain efficient manufacturing facilities for a consistent the quality of our

products and to reduce our operational costs. We focus on management of our logistics,

supply chain and distribution functions, which enables us to service our customers better.

Objectives Godrej Properties Limited

The following are the key objectives of business:

1. Enhance and leverage the Godrej brand and the group resources

We believe that our customers and consumers perceive the Godrej brand to be that of a

quality provider of products and services. We believe that the strength of the Godrej

brand and its association with quality and reliability help us in many aspects of our

business, including land sourcing, expanding into new cities, entering into business

associations, and providing relationships with our service providers, investors, lenders

and customers. In addition, our association with the Godrej group helps us leverage group

resources and initiatives across functions, such as human resources and marketing. For

example, we are actively involved in a group-wide branding initiative currently being

conducted by Interbrand, a London-based brand consultant, in which our Company has

been identified, along with personal grooming, furniture and aerospace divisions, as one

of the “hero” businesses of the group. We intend to leverage the brand equity that we

enjoy as a result of our relationship with the Godrej group of companies to expand our

business.

2. Expansion across India

We currently have a presence in 11 cities across India. We intend to expand our

operations in these cities, as well as into other cities in India, which we believe have the

potential for growth. The economic growth in these cities will result in higher disposable

incomes in the middle and higher income groups, which, in turn, will result in increased

demand for residential housing, as well as high quality retail and commercial space. We

recognize that continuing to build on our land reserves in our existing markets is critical

to our growth strategy.

Additionally, we have either acquired or are in the process of acquiring development

rights in various cities such as Mangalore, Chennai, Ahmedabad, Chandigarh, Kochi and

Greater Noida, for residential, commercial and integrated township projects. We also,

from time to time explore new development opportunities. For example, we have

submitted expressions of interest, as a part of a consortium, for the redevelopment of

certain land in the Mumbai Metropolitan region. We cannot assure you that we will

procure this bid on terms acceptable to us or at all.

3. Selective outsourcing

We intend to increase the scale of our operations while ensuring quality and efficiency in

our operations.

Selective outsourcing enables us to undertake more developments and source best-in-

class service providers, while optimally utilizing our resources. We intend to continue to

outsource activities such as design, architecture and construction. We also consider turn-

key contracts for project execution and partnering with international property consultants

to market our IT parks. We intend to enhance and leverage our existing relationships with

leading real estate service providers.

4. Focus on our execution

We have expanded the scope and scale of our operations. We recognize the importance of

delivering quality projects on a timely basis and within the estimated budget. We have

implemented several initiatives and processes to enhance our execution capabilities

including by engaging Goldratt Consulting in implementing their “Theory of Constraints”

along with CCPM. See “– Our Strengths – Execution methodology” above for details on

CCPM.

We have also entered into a memorandum of understanding with Larsen & Toubro

Limited for its appointment as a contractor for the development of some of our future

projects and we will continue to work with other leading third party service providers for

activities related to design, project management, cost and quality control and contracting.

Godrej Industries runs four divisions —

1. Corporate Finance

2. Corporate HR

3. Corporate Audit and Assurance

4. Research and Development

ACCOUNTING POLICY

1 Accounting Convention

The financial statements are prepared under the historical cost Convention, on the accrual

basis of accounting, in accordance with the generally accepted accounting principles in

India, the Accounting Standards prescribed in the Companies (Accounting Standard)

Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting

principles requires the management to make estimates and assumptions that affect the

reported balances of assets and liabilities as of the date of the financial statements and

reported amounts of income and expenses during the period. Management believes that

the estimates used in the preparation of financial statements are prudent and reasonable.

Actual results could differ from the estimates.

3 Fixed Assets

Fixed Assets are stated at cost or as revalued as the case may be, less accumulated

depreciation. Cost includes expenses related to acquisition and any directly attributable

cost of bringing the assets to its intended working condition.

Fixed Assets acquired under finance lease are capitalized at the lower of their face value

and present value of the minimum lease payments.

4 Intangible Assets

Intangible assets are stated at cost of acquisition less accumulated amortization. The cost

of acquisition of trade marks is amortized equally over a period of ten years. Computer

software is amortized over a period of six years on the straight line method.

5. Impairment of Assets

The Company reviews the carrying amounts of tangible and intangible assets for any

possible impairment at each balance sheet date. An impairment loss is recognized when

the carrying amount of an asset exceeds its recoverable amount. Impairment loss, if any,

is recognized in the period in which impairment takes place.

6 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition / construction of the

qualifying asset are capitalized as a part of the cost of such asset, up to the date of

acquisition / completion of construction.

7 Investments

Investments are classified into long-term and current investments. Long term

investments are carried at cost. Provision for diminution, if any, in the value of each long

term investment is made to recognize a decline, other than of a temporary nature. The fair

value of a long term investment is ascertained with reference to its market value, the

investor’s assets and results and the expected cash flows from the investment.

Current investments are stated at lower of cost and fair value.

8 Inventories

Inventories are valued at lower of cost and net realisable value. Cost is computed on

weighted average basis and is net of cenvat. Finished goods and work in progress include

cost of conversion and other costs incurred in bringing the inventories to their present

location and condition. Provision is made for the cost of obsolescence and other

anticipated losses, wherever considered necessary.

9 Provisions and Contingent Liabilities

Provisions are recognized in the accounts in respect of present probable obligations, the

amount of which can be reliably estimated. Contingent Liabilities are disclosed in respect

of possible obligations that arise from past events but their existence is confirmed by the

occurrence or non occurrence of one or more uncertain future events not wholly within

the control of the Company.

10 Foreign Exchange Transactions

(i) Transactions in foreign currency are recorded at exchange rates prevailing on the day

of the transaction. Monetary assets and liabilities denominated in foreign currency,

remaining unsettled at the period end are translated at closing rates. The difference in

translation of monetary assets and liabilities and realized gains and losses on foreign

currency transactions are recognised in the Profit and Loss Account.

(ii) Forward exchange contracts other than those entered into to hedge foreign currency

risk of firm commitments or highly probable forecast transactions are translated at period

end exchange rates. Premium or discount on such forward exchange contracts is

amortized as income or expense over the life of the contract.

(iii) Realized gain or losses on cancellation of forward exchange contracts are recognized

in the Profit and Loss Account of the period in which they are cancelled.

(iv) Exchange differences in respect of other unexpired foreign currency derivative

contracts, which have been entered into to hedge foreign currency risks are marked to

market and losses, if any, are recognized in the Profit and Loss Account.

11 Revenue Recognition

Sales are recognized when goods are supplied and are recorded net of returns, trade

discounts, rebates, sales taxes and excise duties.

Income from processing operations is recognised on completion of production / dispatch

of the goods, as per the terms of contract.

Export incentives receivable under the Duty Entitlement Pass Book Scheme and Duty

Drawback Scheme are accounted on accrual basis.

Dividend income is recognised when the right to receive the same is established. Interest

income is recognised on a time proportion basis.

Income on assets given on operating lease is recognised on a straight line basis over the

lease term.

12 Research and Development Expenditure

Revenue expenditure on Research & Development is charged to the Profit and Loss

Account of the year in which it is incurred. Capital expenditure incurred during the year

on Research & Development is included under additions to fixed assets.

13 Depreciation

Leasehold land and Leasehold improvements are amortized equally over the lease period.

Depreciation is provided on the straight line method at the rates specified in Schedule

XIV to the Companies Act, 1956, except for computer hardware which is depreciated

over its estimated useful life of 4 years.

Depreciation on assets acquired during the year is provided for the full accounting year

and no depreciation is charged on the assets sold/discarded during the year, except in case

of major additions and deductions exceeding rupees one crore in which case,

proportionate depreciation is provided.

Depreciation on the revalued component is provided on the straight line method based on

the balance useful life of the assets as certified by the valuers. Such depreciation is

withdrawn from Revaluation Reserve and credited to Profit and Loss Account.

14 Employee Benefits

Liability is provided for the retirement benefits of provident fund, gratuity, leave

encashment and pension benefit in respect of all eligible employees of the Company.

(i) Defined Contribution Plan

Employee benefits in the form of Provident Fund and Family Pension which are paid to

EPFO are considered as defined contribution plans and the contributions are charged to

the Profit and Loss Account of the year when the contributions to the respective funds are

due.

(ii) Defined Benefit Plan

Retirement benefits in the form of Provident Fund which are paid to PF Trust, Gratuity

and Pension plan for eligible employees are considered as defined benefit obligations and

are provided for on the basis of an actuarial valuation, using the projected unit credit

method, as at the date of the Balance Sheet.

(iii) Other Long-Term Benefits

Long-term Compensated Absences and Long Service Awards are provided for on the

basis of an actuarial valuation, using the projected unit credit method, as at the date of the

Balance Sheet.

Actuarial gain/losses comprising of experience adjustments and the effects of changes in

actuarial assumptions are immediately recognized in the Profit and Loss Account.

15 Incentive Plans

The Company has a scheme of Performance Linked Variable Remuneration (PLVR)

which rewards its employees based on Economic Value Addition (EVA). The PLVR

amount is related to actual improvement made in EVA over the previous year when

compared with expected improvements.

16 Hedging

The company uses forward exchange contracts to hedge its foreign exchange exposures

and commodity futures contracts to hedge the exposure to oil price risks. Gains or losses

on settled contracts are recognized in the profit and loss account. Futures contracts not

settled as on the Balance Sheet date are marked to market and losses, if any, are

recognized in the profit and loss account, whereas, the unrealized profit is ignored. Gains

or losses on the commodity futures contracts is recorded in the profit & loss account

under cost of materials consumed.

17 Taxes on Income

Tax expense comprises both current and deferred tax. Current tax is the amount of tax

payable on the assessable income for the year determined in accordance with the

provisions of the Income tax Act, 1961.

Deferred tax is recognized on timing differences; being the differences between the

taxable incomes and accounting income that originate in one period and are capable of

reversal in one or more subsequent periods.

Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only

when there is virtual certainty of their realization and on other items when there is

reasonable certainty that sufficient future taxable income will be available against which

such deferred tax assets can be realized. The tax effect is calculated on the accumulated

timing differences at the year end based on the tax rate and laws enacted or substantially

enacted on the balance sheet date.

18 Segment Reporting

The Accounting Policies adopted for segment reporting are in line with the Accounting

Policies of the Company. Segment assets include all operating assets used by the

business segments and consist principally of fixed assets, debtors and inventories.

Segment liabilities include the operating liabilities that result from the operating activities

of the business. Segment assets and liabilities that cannot be allocated between the

segments are shown as part of unallocated corporate assets and liabilities respectively.

Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable

basis to business segments are reflected as unallocated corporate income /expenses.

PLANNING POLICY

The costs of Human Resource planning are kept minimal as each plant/ profit centre has

its own Personal Department which provides all the respective plant requirements. Each

personal department comprises of four members.

The short term planning is conducted by each plant’s personal department with each

team’s respective heads.

The Long term planning is performed by superiors of each department in accordance

with company’s interests and objectives.

The internal detailed planning is planned by each team separately.

In this way, it is lesser time consuming, energy, economic and also effective. The

decisions are agreed upon by most of the team members so they are more focused, clear,

satisfied that even they have a say in the working and meeting the targets set.

HUMAN RESOURCE POLICIES

What drives Godrej Industries Limited employees is the positive outlook towards work in

an environment of change that encourages innovation and lateral thinking to harness new

concepts for increasing maximum efficiency. The Godrej Industries employee is

determined, ready to learn and committed to meeting and raising the organization's

standards of quality, bringing the organization to the very forefront of the global FMCG

and beverage industry.

Our employee is determined, loyal, committed and eager to learn and we provide this

platform like every other growing global entity. A complete teamwork is highly

appreciated. Every Godrej Industries employee works in harmony to reach higher goals

and strive to take the organization forward. Forming a team, whose sole purpose is to

achieve its target under any circumstances, a team that never compromises on quality and

inner strength.

The Godrej Industries Limited Human Resource Department has initiated a

metamorphosis within the organization - a phase of change to compete and excel globally

for future. HRD believes in the dynamics of change: if we always do what we had always

done, we will always get what we always got and we nurture a constant urge to achieve

something beyond the expected. To implement this change, Godrej Industries Limited is

working to increase efficiency while reducing unnecessary costs and expenses.

The HR has design a tailor-made HR roadmap, giving a new dimension to the HR

systems and processes, leading the organization towards an effective human engineering

process.

HRD works towards enhancing the effectiveness and the efficiency of Godrej Industries

Limited by enriching individual maps of reality, by supporting personalized growth of the

individuals, by improving team-spirit and inter-personal communication of the

organization's members. It not only believes in harnessing internal pools of knowledge

but also provides its employees a platform for knowledge integration with internal as well

as external sources.

The Godrej Industries Limited human resources department has become an eventful place

with a focus towards attraction, retention and development of talent, as it surges ahead to

set higher performance thresholds. Our HR motto states that - "We not only believe in

blending Spirits into FMCG but also blending Aspirations into Career."

Selection of any employee depends on the need in any sector. For this the particular

departments of organization define the quality needed in employee and after this the HR

department posts the job on different web sites, hire consultant or take placement from

different colleges.

Promotion of the employee depends on the capability of employees learning means if the

employee can have ability or eagerness to learn the work of other department beside his

work he will be promoted. Also after the experience and quality of work any employee is

promoted.

Training and Development is a part of any organization. Godrej Industries Limited

believes in leveraging technology to help it gain a competitive edge in the market place.

Godrej has been one of the first companies in the FMCG / Chemical industry. So they

organize training program time to time.

MARKETING POLICY

Godrej Group is expected to increase its market share in various products by increasing

capacity, introducing new products and entering new markets. Our FMCG business is

expected to grow by 50% in the current financial year.

Bulk soaps and property will grow by 15%. The group is actively tapping the export

market with its varied and good quality beverage. Finally, we are looking for a strategic

alliance to import and market products related to our activities using our vast and

experienced sales and distribution infrastructure.

GCPL has a widespread distribution network across India. It has a presence in both the

urban and rural markets, enabling it to benefit from the opportunities in both segments. It

has a sales team which comprise of over 250 staff spread across the country. It has a

network of 33 C&F agents and as on February 29, 2008. It had 1,273 distributors, 142

super stockiest and 3,175 sub stockiest to support the sales team in India. Its distributors

and sub stockiest cover around 650,000 retailers in India. GCPL has linked its major

distributors in India through a system called ‘Sam park’, a collaborative planning,

forecasting and replenishment system with its ERP system leading to reduced inventory

levels, which would translate into better returns for them.

The following is the Marketing Strategy of Godrej Industries:

Relaunching products across categories to revive demand and enhance customer recall

(repackaging or brand extension to new product categories)

Shifting emphasis on non-traditional media for personal care products- Consumer offers

(to lure buyers to the doorsteps of any retail outlet), trade schemes to motivate dealers

across the country

Revitalizes Master Brand strategy and identity for greater synergies across business and

brand portfolio

Creates new Marketing and Branding strategy geared to supporting the group’s revenue

growth target of 25-30% annually

Outlines a new portfolio management strategy to maximize the value of the Godrej brand

and associated businesses

Brand valuation and identifying the demand drivers

3*3 strategy to penetrate deeper into Asia, Africa and South America, with three product

segments- personal wash, hair care and insecticides

RESEARCH AND DEVELOPMENT POLICY

The research and development activities broadly comprise of various processes for

developing new products, standardizing new analytical methods and identifying

substitutes for key raw materials. Through this research and development centre, GCPL

continuously interact with consumers to obtain feedback on its products and information

obtained is leveraged to complement new product development activities. The Godrej

Research & Development Centre is recognised by the Department of Science and

Technology, New Delhi.

Godrej Industries Limited believes in leveraging technology to help it gain a competitive

edge in the market place.

PRODUCTION POLICY

GCPL currently operates five manufacturing facilities in India at Malanpur (Madhya

Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha

(Himachal Pradesh) and Sikkim. Further, its manufacturing facilities located abroad at

South Africa produce a range of personal care products and hair color products. GCPL

continues to maintain efficient manufacturing facilities for a consistent the quality of the

products and to reduce operational costs. It focuses on management of logistics, supply

chain and distribution functions, which enables GCPL to service customers better. Its

widespread manufacturing base helps to manufacture quality products at a low cost.

These facilities follow the Total Quality Management (TQM) management philosophy at

the manufacturing facilities. This involves focused attention on product quality and

manufacturing processes. Many of the GCPL’s production facilities are ISO certified for

Quality Management System, Environmental Management System, and Occupational

Health & Safety Management Systems. Internationally, GCPL has manufacturing

facilities in South Africa, to manufacture personal care and hair care products.

BCG Matrix of Godrej Industries:

1. STAR:

GCPL enjoys an off-take of 22.29 per cent in toilet soaps.

Godrej Expert has market growth of 19% with market share at 29.4%

A liquid detergents account for RS 42.9 Cr for the 2010-2011.Ezee is having large share

in market. Ezee the market leader with an overwhelming

81.90% market share by value

Home insecticides (market share: 36.6%) and there is more sale of Godrej Good Knight

The brand has also emerged market leader, which is growing at about 30 per cent per

annum, with a market share of 37.9 per cent

2. CASH COW:

Soaps contribute 70 per cent to Godrej’s total turnover. With market share of 10.2 per

cent, GCPL is the second largest player in the soap market in India. Cinthol soap

recorded sales of Rs 80 crore last year, which the company plans to double by year-end.

Cinthol has a market share of 2 per cent. Fair Glow soap has high market share and low

market demand

Godrej No.1 brand is the best-selling Grade 1 soap and the market leader across north

India. Market brand Godrej No 1 has a 7 per cent share

Hair colours (market share: 29.4%) and best selling product is Godrej Nupur Mehndi

3. QUESTION MARK:

Evita Soap is launched in India. Customers in their late twenties and early thirties are

targeted for this soap for which fine lines of age start appearing. The soap is priced at Rs

14 for a 75 gram pack and Rs 24 for a pack of two soaps. It is in question mark stage

whether it will become a star or dog

4. DOG:

Ganga Soap and Godrej Tea are dogs as there market share and market growth is

almost zero and there operations are closed down.

CONCLUSION

Godrej continues its efforts for the betterment of the environment and conservation of

scarce natural resources. They say “they touch more consumers than any other Indian

company- it’s not just with soaps, locks and cupboards….” It is because of their

determination towards the helping hand to society and commitment to serve better every

time through their CORPORATE GOVERNANCE & its CORPORATE SOCIAL

RESPONSIBILITIES.