Evolution of

Godrej Group

Submitted by: Ashish RanjanMBA (M&E) 2008-2010

46, Institutional Area, Sector 32, Gurgaon 122001

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Acknowledgements

The acknowledgements go to first of all to the Divine and Supreme power that is the breath of mine then the entire living and non living things. I felt he came with all this power to me while report writing.

I really indebt to all of them and hardly can I pay them back.

The list went longer and longer as the deadline of report submission came nearer and nearer.

I am just acknowledging them my gratitude that I am the means and of their ends.

Ashish

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Contents

1. Executive summary_______________________________________4

2. Early story of Persian Community___________________________5

3. Evolution of godrej_______________________________________7

4. Period of recession______________________________________11

5. Eyesight on completion of Hundred years ___________________12

6. Story of Incorporation and function in some Recent Scenario___13

7. The Godrej dynasty______________________________________16

8. Bibliography____________________________________________17

9. Appendix_______________________________________________18

Executive Summary

The objective of this project was to catch the past events and their relevance to the present scenario. Communities started business and gradually moved to a more converged organization. The transition of work culture and social rituals, the study for the acceptance of

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professionals into family business, keeping their own identity where the population of India is increasing heavily and other communities emerged as a dominant are main areas of concernThe methodology adopted was to look at the interactive timeline and analyzing the factors behind it. These timeline were found out mainly from secondary sources: books and internet.

As for the finding I found it very interesting and magnificent. The story of entrepreneurial struggle of founder of Godrej group, Mr. Adhesir Godrej is an inspiring story and lesson for young entrepreneurs. Also it is role model to start a business as family and be the dominant company among the giant companies to be dominant.

Currently some of the companies are listed from Godrej and taking care of all the subsidiaries of as parental to those of evolving ones.

Early story of Persian community

The story of today’s Godrej Empire starts with the livelihood business and fully dependent family or heritage knowledge of Artesian. Persian communities came in India from Iran when there was a fall of their Sassanid Empire. These people were coming to India as refugees and had so mush of fear in their heart but pride for their rituals and belief.

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They succeeded in carrying their deities and their holy fire, which was installed in their newly established temples in India in early 1600s. These people were been surviving onto the donated land of existing kingdom of Sanjan (Gujarat) by the local king, Jadi Rana. Since these people mainly came from the western part and through sea voyage so they concentrated in the western part of India like Gujrat, Maharashrtra and Goa.Persian had their long and traditional culture carried from Middle Asia so they kept following their rituals and also they imbibed the ancient culture of India. From history the facts come out as that this community acculturate to the new land and accepted Gujrati as their language and also the eating and wearing habits like gujratis.One thing was for sure as this community was having different belief system, different from Muslims in all manners. Muslims and their rulers didn’t give them the liberty of following their paths. Time to time invades were done to demolish them but somehow they managed to find the way out the place and shelter of somebody to save themselves from the wiping out of their existence. Also this community carried their culture and civilization wherever they went. They absorbed the ancient culture of India but did not mingle with it fully. Indian were becoming sympathetic because they also facing the bad behaviors of Mogul invaders or rulers.

As these people were refugees and had not anything like land to be the farmers and earn their livelihood. Thus, they started searching for the job opportunities and became mainly as translators, traders, Artisans, weavers and agents at that time. Most of them became self Employed. These people kept on taking the orders even on subsidies and became reliable and made dependent kings followed by the British.

The Parsis were known as hard workers, keen and reliable traders, and loyal to the British. During British rule of expansion in 1609 in the western part of India as cotton Industry British lured them:“you will promise them such priviledges, immunities, and exemptions from publique duties as they shall reasonably desire from you...” They kept on taking contracts from East India Company in Cotton Industry .This industry was the major, emerging and differentiated but dependent on Agriculture, manufacturing of ship Minden, on board etc. The population of Parsis in Mumbai kept on increasing in aligning with the turnaround or transition of Bombay Business. The key people to these transformations were Dadabhai Naoroji, Pherozeshah Mehta, Wadias and Dinshaw Wacha. Even the physical shape of Bombay was determined by donations to build causeways, roads and buildings by members of the Jeejeebhoy and Readymoney families.One of India's biggest industrial houses was founded by a Parsi, Jamsetji Tata. These people were Congress stalwarts and thus they got advantages of putting their interest while policies were being drafted.These people were the futuristic and also had telescopic view for future of Indian Industry. They identified the situation and judged the situation that that will be in power and how their heir will affect their business interest .Those legendry people used to make the conditions in their favor.So overall Picture was like as below:

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Safeguarding community

Some people were trying to safeguard their interest and it was making benefited the whole community. This socio-economic development of Bombay was due to a symbiotic relation of Parsis and Britons .Over a period of time Bombay became the economic centre of India. Earlier it was Calcutta.The Persian traders acted as intermediaries firstly for existing Kings then for British traders in the Indian market. They also worked for British trading houses, and learned the ‘ins and outs’ of international trade. The British stimulated the Parsees to invest in Bombay, to become junior partners and to trade with them. In the nineteenth century, they came across the industrialization in Britain. They started diversifying their activities by establishing their own cotton industry in Bombay. This pattern may suggest that being a (migrant) trader with experience in the international market and alliance with British trading houses were only

necessary conditions to become a cotton industrialist in the raj.

Now, the small communities started their business with their skilled services like translators, traders, moneylenders, bankers, and artisans.Even in Artisans, there were several kinds of services like: blacksmith, goldsmith, locksmith, cooks etc. Interestingly the titles got added to their names and successors which are continued till today. By reminding name itself one can identify their family business like Ghariwals, Nanwals, Ghorkhodu, Motiwala, sodawaterwala, karelewala, kapadia, canteenwala etc.

These people took pride in naming themselves as per their work and it led to get expertise in their particular Business. Over a period of time .These business have grown and now diversified in the supervision of family owners remain there. The Evolution of Godrej is not as different as other Parisian business family businesses grown.

Evolution of Godrej

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In the transition period of Agrarian to Industrial in the British Ruled India, Big Business houses were trying to get policies and agencies in their favor and smaller houses were getting the smaller the chunk as per their businesses. As collective both were benefited.

In the late 20th century swadeshi movements were on the peak, whether it was through revolutionary board or nonviolence group. All aware people were contributing to swadeshi movement, either by the monetary contribution of businessmen, traders etc or by revolutionaries as whole time contributors. Whole communities were trying to put the oil in the burning fire of swadeshi movement in their own way like educating, preparing clothes by weaving, publishing papers, magazines, books, newspapers etc.Indian youth and these business families’ men were trying hard to support freedom struggle by money or their products & services and every means possible.

The story started with crossing the threshold region of success and recognition and jumping into freedom struggle,Mr. Ardeshir Godrej said no to advocacy to better business prospect

Mr. Ardeshir Godrej was an educated man with degree in law. He started practicing it but didn’t find it interesting or relevance to his life and for service of the nation. Also he started a business in which he failed, details are not available.He had started manufacturing surgical instruments in India. The problem however was the capital; He required a few thousand rupees and didn’t have single penny. Then, he approached Merwanji Cama, a

multimillionaire and asked for a loan. Mr. Cama readily obliged and gave him a loan. Ardeshir manufactured the surgical instruments and they were up to the mark. The snag, however, was that chemists would not sell surgical instruments made in India and the venture flopped.

Being confident enough, supports from Mr. Pirojsha Godrej (brother) and family he moved ahead with the manufacturing locks and safes as family business of locksmith. Manufacturing of locks was started in the hired shed at Rs 20 of monthly rent, in Lalbaug, suburb of Mumbai. He found it beneficial and continued it with brother Mr. Pirojsha Godrej till a vibrant, multi-business enterprise stood on its own. He set a legend profile for his successors and he gave a valuable high security ‘Anchor’ something more than just lock for the society .This value and the struggle benefited him in monetary donation which was Rs. 3 lacs at that time. The Aligarh made locks were famous but value association with “Anchor” and reach made strong grip in the market. Gandhiji several times made public speak for such products among Indian.

Actually the locks were not just the product but brand and trust among Indians. This was the vision of Mr. Ardeshir Godrej. This brand by delivering value has led their group a successful 110 years.This success lies in the dearth of today’s facility. He did it with his desire of invention and innovation. At that time just other than agriculture there was only the trade in cotton raw or processed. Even those businesses were surviving with thin margins and under the exploitation of British Rule. There were very limited scope for lending of money by organized sectors and owned by foreign interests, even markets were full with the goods imported from

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Britain. So making a reliable and trusted product and launching it at the exact time when the there was increasing distaste for imported goods was a unique positioning.

Another need was identified by the acceptance of earlier products and supports from freedom fighters Company launched first India made Safe in 1902 as successor product. The safe’s name is “Godrej” for which it was even being recognized. The product made such brand equity that even today no one call almirahs (Safe) as almirah but as Godrej. The brand equity was made only by a public demonstration because at that time there were no such developed mediums were available for advertising. The pubic demonstrations were like putting the papers inside and setting it to fire. During one such demonstration fire kept on burning for three hours with safe papers inside .The public test made its product as Fire Resistant Quality Safes.The earlier success had put a tremendous zeal while their move ahead in such Business. Even British were not bothered because they were getting revenues as returns to finances availed to family. Also through public demonstrations and need for British official purposes it could get contacts of supplying safe to the government offices of India. One such contract was made by that “Viceroy” to deliver safes. This incident put a tremendous faith in the Indian producers by Brithishers’ and also an opportunity for other manufacturers which were grooming as SMEs like Jute, paper& pulp, coal, tea, Life Insurance Company etc.Again in the year of 1911 the safe was used by the King George V and Queen Marry which strengthened the manufacturing of safes and showed an opportunity for better delivery system in the expanded region.In the early 1900s there were times of emerging Small Mid Scale (SMS) of several Industries other than the cotton and institutions to finance them. Several Banks were set up like Bank of India (1907), Punjab & Sind bank (1908), Central Bank of India (1911), Bank of Baroda (1908). These Institutions were set up in the princely India. Also the this period was the expansion period of communication by opening post offices ,saving banks which needed such safe to store the documents .These necessity made them to put an order 372 safes for India and Burma.

Till 1918 the Lock and safe making Division of Godrej went on getting more and more orders serving government of India which was in power at that time, European & Indian banks, Royal marines etc. In the year of 1918 it moved into diversified business or to leverage the brand which were created over a period of almost 25 years of safe manufacturing .This period was more towards swadeshi movements which was called by Mahatma Gandhi after his return from South Africa .Regular addressing meetings in several part of India including Champaran revolt against exploitations for agriculture of indigo. At that Time Gandhiji was putting more emphasis on using domestic stuffs and boycotting of foreign product. The idea was to strengthen or be independent in daily using products and weakening the export business of Britain. The educationalists have come out as consensus that in order to attain self-rule, India must reduce its dependence for manufactured goods on the west. Cotton or Khadi cloths manufacturing were popular. Again the soaps which were made available by British were used to be of animal Fat .This product has created a hatred vision towards soap and Indian was not likely to use soaps. When Godrej First Introduced soap made up of vegetable oils in own country people trusted on it and diversified Business model ran. The Business keep on increasing with regular and serial launch of more quality soaps from this Banner. This regenerated sound revenues for Godrej’s and they kept on donating wealth

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as putting oils into running wheel of freedom fighting. Since Gandhiji’s call was to boycotts for foreign clothes, wine shops etc. But getting rid of drinking habits was big problem. Godrej put amounts as donations into Tilak fund and received public appreciation from Gandhiji.

Till 1926 Godrej’s operations were concentrated in Western part. But they saw increasing pull from market for their products, so they opened a center in Calcutta, the earlier trade hub of India. Also it had become a regular supplier of safes for Indian Post and Telegraph Department. Subsequently, they opened a center in Chennai to take care of southern region business.

Both businesses expanded and it needed separate department/divisions to look both works and allowing them to work independently and more efficiently. So in 1932 Division came out as Godrej & Boyce Mfg Co. Pvt. Ltd. (Locks & Safe Division) and Godrej soaps Ltd. The greatness of founder can easily b identified by looking at the name Boyce which was named on the name of nephew of his earlier business financer Mr. Merwanji Cama.

In the year of 1935 political scenario were much more turbulent as swadeshi movement and many more revolt against British rulers which caused hurdles to fulfill the increasing demands of Godrej & Boyce Mfg Co. Pvt. Ltd. (Locks & Safe Division) as machine tools. So it went on opening very own tool room by next generation of Godrej, led by Mr. Naoroji (Pirojsha) Godrej.

Mr. Adhesir Godrej passed away in 1938 leaving behind the large empire.

Not only it was increasing its operations but also revenues. It was making company admirable as a work place when it introduced a Provident Scheme 14 years before a law was made by Government of India.

In the Early 1940s the British government was losing its power of handling its imperials. So the bigger business houses who had gained strength in terms of money and support were trying to acquire more areas as to expand business at very low costs. In such, Tatas, Birlas, and others were seen keener to acquire areas, and to develop it as townships. Godrej also went in such activities and acquired the whole Virkohli Village or made it as a township.

As Godrej started its vision of serving the nation with remaining recognitions of Parsis community by utilizing the opportunities. After Independence i.e. in 1952 when India went republic and during first General Elections, election commission needed ballot boxes. The proven track record of safety, fire proof and domestic product got a contract of around half crores of ballot boxes which it just could supplied within the period of 3 months.Godrej were less interested in the direct participation in politics but wanted to work through the side of congress to get at some sort of polices and support from government or if any other future interests aligned with it.

India had problem of illiteracy, castes, untouchables, etc. to provide solution it opened Udayanchal School as its CSR Activities on the Independence Day of 1955.

Godrej Tool division entered into manufacturing of typewriters late 1950s.

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Government was ruing with the fact progress made by the country in the various fields of economy.There was a huge difference between the faster rate of growth of population and economical growth. Government laid special emphasis on the Family Planning Programme which was taken up by Government of Bombay from November 1957. So may be to be genial by the present government Godrej Group made awareness programme to public and was distributed contraceptive pills, opened Pragati Kendra for awareness of family planning.

Again in 1960 Godrej’s two wings started moving in the dispersed way and from Godrej& Boyce Co, refrigerators came out as product with the support from General Electric Co. (GEC) as joint venture. Godrej tool room was also developing quality typewrites. And GSL ventured into animal feed in 1971 to help dairy and poultry farmers rear healthier livestock and also introduced detergents which came as solution when soaps could work with hard water.

There was a trend of collaboration or acquisition seen with various transnational companies (named as by looking area covered at that time) like group brands such as Fiskars, Jet and Banish and forged alliances with GE, P&G, Pillsbury, and Sara Lee. It is found that some other family business like Murugappa group, Wadias went for unrelated diversification but Godrej did not followed that keeping on investing spare wealth.

As the business had grown with structure became complex sometimes handling was being problem, communal factors was causing problem. It was time to make it run like and organization with convergence and conformity, working toward goal of making a leading organization. Group made it by professionalizing its management. It hired managers from Indian institute from Management Ahmadabad (IIM-A) in 1968.

It is remarkable that Godrej family gave others liberty of working without interruptions and interventions. The key people have freedom to take action as per the demand from the situation like Mr.S.P.Godrej looking the trusteeship and Mr. Naoroji Godrej; Dr. Burjorji Godrej was handling the diversified business.

In the year of mid 1970s the political situation was so turbulent. There was call to of withdrawal of support from Congress government. Lots of communist and unions were formed. Unions were also formed in the Godrej group but not under the banner of professional unions’. They were named as Godrej & Boyce Staff association and Godrej & Boyce Sharamik Sngh respectively in 1978. Actually unions were formed because there were trends in the market among the employees. Even then no such case of exploitation against employees is found. More liberalization happened among the management and union with the withdrawal of 100% ceiling on the Dearness allowance and allowing Housing plans for the Godrej workers.One major leap, Godrej entered into Indian Space programme in 1990 by getting contracts of manufacturing of fabrication of Trays .This order was fulfilled by the Process Equipment division (PED) of Godrej. This PED division went for Electropolishing of penicillin G reactors.In the 1990 the group kept on diversification through adding more product lines into its divisions as GSL went into Food Business. It also started Godrej Properties and Investments Ltd.

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After liberalization of Indian Economy, Multinational companies (MNC) started entering into India but they were hesitant from independent operations. Companies like P&G, GE moved into joint venture with Godrej’s division. One of these joint ventures of GE with Godrej & Boyce Co. as 40-60 % equity respectively. At that time Jack Welch a visionary person was the CEO of GE, he must would have strategic outcome to hold the hand of leading business group of India who have large experience of ups and downs in Indian history. GSL went with US company P&G as it was major FMCG Company. Continuing with that, Godrej software Solution Company was formed as associate companies, Godrej Trading & Services Ltd., Godrej-Pacific Ltd were formed with some kind of associations with foreign companies. Again specific divisions were forming with upcoming strong brands Like Sara Lee, Jet, Banish for Daily usable products, and Pillsbury as Food division, for material handling joint venture with Crown USA . It also made supply to Ford as died automobile panel under JBM.

There was much more emphasis on Quality from government in the 1990 and demand of quality products in the country as well as outside the country. Several quality certifications were allotted to manufacturing divisions. As those ISO certifications were necessary for engineering, electronic, chemical, textile etc.Godrej applied for these certifications and got soon because of quality process and products.

To keep the trust among Indian people and brand name in every category of its operations it sucked unbranded edible oil from the market and come with branded and packaged products. These were focused on refined oils and vanaspati packs for institutional consumers, packaged drinks and packaged oils (small consumer packs) for households. There is a mid-priced brand and an economy brand -- Godrej Sunflower Oil and Godrej Shakti. These products achieved national reach. It is other fact that these have been today substituted by competitors’ products whether it is by national or local players. This happened in year 2003 and set an example for the organizations also very much time before Pfizer has recalled its arthritis drug Bextra.

Period of Recession

The reason why India had to face economic downturn was because of the linkage or dependency of Indian industries on American Industries. As the meaning of evolution defines the application of learning from outcomes of decisions, tactics, strategies and vision in the in the real world so Godrej reflected it’s in the Balance sheet and Profit & Loss account. (Rs Lacs.)

March 05 March 06 March 07 March 08 March 09

Total Income

562.07 657.32 797.42 887.52 1,088.01

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The reason being it focused and concentrated on Godrej Industries’ chemicals unit and Godrej Agrovet Ltd together which accounted for 65% of total revenues. The chemicals division increased its revenues by 39% Export revenues increased 50% and accounted for 43.6% of the division’s revenues, which product line were not dependent on financial, real estate or other Industries.

September 1, 2009, when recession was on deep trough, Mr Adi Godrej, the chairman of Godrej group said “The Godrej group, which runs Godrej Industries and Godrej Consumer Products Ltd is looking at selling its non-core businesses, including food”. It will concentrate more on personal care and household care products, chairman said. This happened by the outcome of Godrej Consumer Products expected to post a 20 percent rise in Jan-March profit on higher sales, whereas Marico's profit was seen sliding despite a rise in sales.

Godrej group is having a telescopic view by analyzing the revenues from rural India which accounts for 25 per cent of our overall revenues and group see this increasing in the coming years as rural markets are growing at a higher pace in comparison to urban markets. Also the businesses in urban markets are stagnating for such products.

Also, with the new government in place, the Goods and Services Tax (GST) was be implemented in the next 10 months.

“All other things being the same, GST implementation will add 1-2 per cent to the GDP growth of India as all invasions of indirect taxes will disappear, costs will come down and there will be more efficiency in the system,” was predicted from officials.

To lead the company first, the Founder Mr. Ardeshir Burjorji Sorabji Godrej remained the life long chairman then his successor Mr. Sohrab P Godrej became chairman of the company for the last 27 years. On the May 20, 2000 – Mr. Adi Godrej succeeds the resolution for reappointing as managing director for further periods. As we see the company and country saw three generations in Godrej without any dispute as such in the other family business for throne. Also no other options were explored other than Godrej. For fourth generation of Godrej generations stakeholders will have to wait to see who heads the company. Even the successors entered and easily defied their job descriptions whether by being into executives or non executives, business or CSR functions. Actually it is an image to be worshiped, a mirror to evaluate others like Godrej.

Eyesight on completion of 100 years Godrej group

Godrej was started under an entrepreneurial zeal by a legendry person whose community and family had expertise in the work of locksmith. He carried it also developed quality product and moved to locks, safes to every possible business, made it popular to the extent of be on lip of Indian consumer when it comes for reliability and value for money . It was open for demonstration, survived by taking care of interests of policy makers of at that time and of

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future. Problems of importing material led it to setting its own Tool division. Swadeshi movements made to it come with vegetable soap. It keeps on helping government as support to rulers per their demand to get polices in their favor and also national level production like supplying of large numbers of ballot boxes. Working towards workers made factory to run regularly with never any kind of strike or lock outs. When there was much of turmoil during Emergency period in Maharashtra it never ran into problems. It went up through acting smartly by checking the business while acquisitions or joint venture, not run into the trap of non-related diversification. It concentrated only into spreading horizontal value chain. Again during the period of liberalization of Indian Economy, Godrej’s strategic action made to fit with respected global players. It realized joint exercises and delivering products and value at national reach. One remarkable is to assisting to space research programme of India by EBE, it was pride for India.

As for Function of Godrej Family, in the starting Mr. Adeshir Godrej started later was supported by his brother Mr. Pirojsha Godrej. When it came to second generations there was clear cut role and not daily intervention like Mr.S.P.Godrej’s Job was to look for CSR or Philanthropic activities, Mr. Naoroji Godrej was as chief Executive and Dr. Burjorji Godrej as Brand maker at national and International level. Also after making it as professional organization they encouraged and gave the power to key people to take needful action.

As my personal feeling, since I belong to the family of court practices and pleading, I knew the importance of ‘Remington’ Typewriters .This was the Godrej’s most valuable product. We Indians are very well known for Reverse Engineering but in my opinion this was the most innovative product also the Godrej safes were the quality product and pull it for success and longer life. There are no other products which can stand as substitute or competitor.

The first soap I remember when I was a child was NO. 1. I didn’t know which company or where it was produced till now. But during this project work time I found that it was from Godrej .It made me to think how it made so popular and more penetrated product in that scenario. Ganga, Cinthol were also one of their valuable products.

Story of Incorporation and function in some Recent Scenario

Godrej Soap Ltd (GSL) was the first company which was incorporated from Godrej group in year 1988 with certification “Certificate of Commencement of Business”. This Godrej group promoted Godrej Soaps Ltd. and Godrej & Boyce Mfg. Co. Ltd. In the 1990 Godrej Properties Limited, another subsidiary was established under GSL. Then another Godrej Agrovet Limited incorporated under the same. During this period it acquired Transelektra Domestic Products and it made an alliance with Sara Lee when the Godrej Agrovet Ltd. started intensively the marketing of food products vegetable oils.

In the year 2002, division GSL was demerged and Godrej Soaps renamed Godrej Industries Limited under Godrej food division it set up another company as Godrej tea Ltd. Just after Dot com Bust, it set up a company into BPO solutions and services with Godrej Global Solutions Limited. Foods business was merged with Godrej Tea and company renamed as Godrej Beverages & Foods Limited.

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In the years of 2000, a trend of restructuring the company through equities is shown. After a long time it is seen that company saw a root of revenue generation by launching IPOs and keep on selling the preferences shares .Also very limited no of subsidiaries have been listed / went public . Also it shows that a limited capability of extroversion. One of the interviews a reference emphasize on it” Godrej group has never ventured into capital-intensive and high-volume commodity businesses like steel, metals and cement, as other contemporary business houses. Our forte lies in marketing and brand building and we have been very successful in that. These businesses take time to mature and tend to be smaller (in terms of net sales) than their commodity cousins.

So till 2005 the major company as Listed came out as

1. Godrej Boyce Mfg. Co.: Tools and Engineering Division

2. Godrej Consumer Products : FMCG Products

3. Godrej Industries : Chemical Division for the processing of soaps and last unit of horizontal value chain

4. Godrej Properties : Developer of townships which was started by Mr. S.P. Godrej

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(Situations)• Family Professional

alliance • Complex situation• More regulation • Liberalization of Indian

Economy

(Situations)• Simple structure• Simple strategy• Less regulations • Less complexity• Limited scope to keep

attention on communal or social factors

(Situations)• Structured Organization

like liberal democracy • Ready to respond • Structured subsidiary or

group

External factors -Need for Change

External factors -Need for Change

5. Wadala Commodities : Foods and Beverages

Several divisions have been under these listed companies and working as subsidiaries

Also main companies as listed for which the separate Annual reports are presented to the Investors are

• Godrej Industries Ltd.• Godrej consumers Products Ltd.

From the early period of Godrej, no one has got the Chair of Chairman other than from Godrej family. Right now the group is headed by Mr Adi Godrej, as final approver. But as work culture each company CEO has maximum freedom to decide and formulate the strategy for their establishments. But there remains a consultation, at the family and business levels i.e. professionals have come to handle the subsidiaries of Godrej Group. His other brothers are in the board of directors with other responsibilities may be of CSR activities to support Godrej group in other way. This shows the continuous check of business by Godrej family.My personal opinion is that there is no problem in heading Godrej by only Godrej Family. Company is running well and people are benefited in a big way. That is the ends of doing any Business.Also nowhere conflicts are seen in relationship among the families and non-family professionals in top management of Godrej. Functions happen smoothly because family members respect professionals and their decisions. The equation among organization and environment has tried to work out on the basis of the experienced gained and reflecting on them. One such case of dispute with Muslims when it supported AIDS campaign with Salman Rushdie. So much of hullabaloo happened but Godrej’s determined action outperformed them and did not leave the communal work.

Revenue distribution: 25 percent of Godrej share holding is in the name of the Godrej Trust, and 25% of the dividend of our group companies goes towards philanthropic causes. A family member leads this trust and responsible to social factors to fulfil the dreams of great legend of Godrej,Mr. Ardeshir Godrej.The trust is involved in three major areas of health, education and environment. New target is to involve environment as stakeholders. The way things are going, we believe Green India would have to be the answer to Copenhagen.

Godrej has created databases to restore its incidents and keep on showcasing them to today’s generation. These early days of Godrej has become a story on which Indian can pride and take a lesson to continue with entrepreneurial zeal, moral values and responsibility, commitment to society etc.

.

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First generation the two brothers were the founders, second generations focused towards diversification of business by investing of acquiring more business in the leadership of Mr Naoroji godrej, third generation in the leadership of Mr. Adi godrej, is keener to keep hold on core business functions

The End.

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Appendix1988

- The soaps Ltd. was incorporated on 7th March, and obtained the Certificate of Commencement of Business on 24th March. It was promoted by the Godrej Group (the major companies in the group being Godrej Soaps Ltd. and Godrej & Boyce Mfg. Co. Ltd.) along with Gujarat Industrial Investment Corporation Ltd. (GIIC) in the associate sector. The Company manufactures alpha olefins, its precursors and derivatives. - The Company undertook to set up a project for the manufacture of 35,000 tonnes per annum of alpha olefins, its precursors and derivatives for which an industrial licence was already in hand. - The product in the range C14 and C18 are used in the soap and detergent industry in the form of alpha olefin sulphonate (AOS). - The Company entered into technical collaboration with Lurgi GmbH, West Germany, a leading supplier of fatty alcohol technology. Lurgi agreed to provide overall performance guarantee, design engineering, Licence and know-how, personnel legation and equipment supply. - Another agreement was entered into with Godrej Soaps Ltd., for Using the know-how of making AO from fatty alcohols. 1989 - 2, 18, 00,000 shares issued at par out of which 1, 70, 92,000 shares were reserved for firm allotment to promoters, directors, etc., including 25, 00,000 shares to NRI associates of the promoters on repatriation basis. (The unsubscribed portion of 6,99,2000 shares by NRIs taken up by Indian promoters) and 47, 08,000 shares allotted to GIIC. 12, 78,700 shares were allotted to retain oversubscription. 1,20,75,000 No. of equity shares allotted on conversion of Part A of convertible debentures on 15th February, 1990.

1990 - In January, the Company issued 21, 00,000-12.5% partly convertible debentures of Rs 150 each at par. Of these, the following were reserved for preferential allotment - 2,31,000 to mutual funds/financial institutions/banks (only 1,32,700 debentures taken up),1,05,000 to employees including directors/workers of the company and promoter companies and 4,00,000 to NRIs/persons of Indian Origin resident abroad on repatraition basis. - The remaining 13, 64,000 debentures along with the 1, 28,060 debentures not taken up under preferential quota, were offered to the public.3, 15,000 additional debentures were allotted to retain oversubscription. - Part A consisting of a convertible portion of Rs 50, Part consisting of a convertible portion of Rs 50 and Part C consisting of a non-convertible portion of Rs 50. Part A will be compulsorily converted into 5 equity shares of the Company at par on allotment of the debenture. Part B will be converted into 5 equity shares at par on 31st March, 1991. Part C will be redeemed at par in two equal installments at the end of the 8th and 9th year from the date of allotment. - The company also issued 12, 10,000-14% secured non-convertible debentures of Rs 100 each to the Indian public. Only 11,695 debentures were taken up. The remaining 11, 98,305 debentures devolved on the underwriters. These debentures will be redeemed at a premium of 5%in two installments of Rs 50 and Rs 55 at the end of the 8th and 9thyear from th date of allotment respectively. 1993 - During February-March, the Company offered 236,14,385 Right equity shares at a premium of Rs 14 per share in prop. 1:2. Only 153, 05,942 shares taken up. 82,77,420 shares devolved on underwriters. 31,02 shares remained unissued. Another 11, 80,719 shares issued to employees on an equitable basis. - The Company was newly launched brand Godrej Ganga, an innovative soap which is produced by using water from the river Ganga. - The Company made an issue of 77, 50,000 No. of equity shares of Rs. 10 each at a premium of Rs. 130 per share aggregating Rs. 108.50 crore. - The Company has proposed to invest upto 74% in the equity of Godrej Oil Palm Konkan Ltd. a joint sector Company set up in collaboration with the Development Corporation of Konkan Ltd.

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- It is also proposed to set up a wholly owned overseas subsidiary Godrej International Ltd. for increasing the Company's activities in the area of international trade. - Godrej Agrovet Limited (GAVL) became a subsidiary of the Company. Ensemble Holdings & Finance Ltd. had also become a subsidiary of the Company, since EHFL was then a subsidiary of GAVL. 1994 - Effective 1st April, Gujarat Soaps Ltd. (GSL) amalgamated with Gujarat Godrej Innovative Chemicals Ltd. (GGICL). The name of the amalgamated Company was changed to GSL. - The shareholders of GSL were issued shares in the company in the ratio of one share for every share held in GSL. Accordingly they were consolidated into 70, 84,433 No. of equity shares of Rs 10 each. Out of this, shareholding after reduction, of the erstwhile Godrej Soaps Ltd. comprising 3, 18,080 No. of equity shares 10 each of capital were cancelled subsequent to amalgamation. - Cinthol fresh was introduced as a new variant of the brand of Cinthol. - The Company acquired major shareholding of TDPL, manufacturers of mosquito mats and household insecticides in India. - The Company's Malanpur factory was named Burjorjinagar in memory of late Dr. B.P. Godrej. - The company participated in the launch of several new products under the strategic alliance with Procter & Gamble. The most significant was the introduction of Camay which is now available in three variants, Natural, Classic and popular with milk cream. - The consumer products division of the company relaunched Godrej Shaving Cream and Cinthol Talcum Powder in two new variants - Classic and Satin. - The formalities of amalgamation of Godrej Soaps Limited with Gujarat-Godrej Innovative Chemicals Limited with effect from 1st April. 1995 - New ultra modern Toilet Soap finishing lines of 48 TPD capacity each was installed at Vikhroli and Malanpur factories. Also a new sophisticated fatty Acid Distillation plant of 75 TPD capacity was installed at Vikhroli. - The Company entered into a joint venture and technical assistance agreement with Siat S.A., a Belgian company in respect of Oil Palm Plantations business of the company in Andhra Pradesh. - The Company entered into an agreement with Sara Lee DE/NV for securing an equity participation of Sara Lee in Transelektra, the largest manufacturer of mosquito mats in the world. - 1, 99, 42,927 bonus equity shares issued in prop. 1:2. Preference shares issued during the year. 1996 - The Company entered into an agreement with Sara Lee DE/NV for securing an equity participation of Sara Lee in Transelektra. - The Company has invested in Godrej Pillsbury Pvt Ltd, a joint venture company between Godrej Foods Ltd, and Selviac Nederland B.V., a wholly owned subsidiary of Grand Metropolitan Public Limited Company of U.S.A. 1997 - The Company has set up a new factory at Silvassa for manufacturing of Hair Dye which commenced production in November. - Godrej Soaps has launched Doodh Ganga soap. - Godrej Agrovet is a wholly owned subsidiary of Godrej Soaps. 1998

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- Cinthol Ultimate and Cinthol Scent Fresh were introduced. The Cinthol International range was relaunched with deodorant and in new metallic wrappers. - The Company is in the process of entering into an agreement with National Securities Depository Ltd., - Godrej Soaps Limited, a leading manufacturer of soaps & toiletries in India, has been awarded the coveted CHEMEXIL Export Award. - Godrej Soaps is the third largest soap company after HLL and Nirma. - The company entered into a joint venture with Procter & Gamble (P&G), keeping in mind the marketing skills of the multinational and Godrej's manufacturing and distribution prowess. 1999 - Ganga was relaunched with a new advertisement campaign during the year. An innovative scheme Gold Rush was operated during the year on all variants of Cinthol. - The Company has set up the Godrej Hair Care Institute with objectives of understanding the needs of the Indian consumer, developing specific products to meet these needs and to interact with and educate consumers and professionals in the industry. - Godrej Soaps Ltd., launch of colour soft hair colour in three natural shades. - Godrej Soaps launched a new soap called Fair Glow. 2000 - Godrej Soaps Ltd has decided to enter into a profit-sharing agreement with its employees as part of its restructuring programme. - The Company has set up a dedicated hair care institute, at Vikhroli, Mumbai. The Company has decided to set up three more such centres in Delhi, Bangalore and Chennai. - The Company has launched yet another new product under the brand name Godrej Nikhar. - Godrej Soaps Ltd is aiming to increase its stake beyond the present 26 per cent in Godrej Pillsbury Ltd, the joint venture company with Selviac Nederland BV, set up to manufacture and market wheat flour based products under the Pillsbury brand. - Mr. Adi Godrej has been elected as the new Chairman of Godrej Soaps Ltd. - The Company launched Fari Glow Fairness Cream in Chennai. - The Company and Associate Companies have launched `Godrej Bargainz' - the first-ever online sales promotion by any FMCG company in India. - The Company proposes to split its business into two entities and divest its stake in Godrej Sara Lee Ltd. to the public. - Godrej Hair Care Institute has launched a shampoo specially formulated for coloured/dyed hair Godrej Colour Gloss Shampoo. - Godrej Soaps has joined hands with Western Railways to launch the `FairGlow Express' - a local train in Mumbai which has been painted in the brand's own colour of Lilac and Pink. - Godrej Soaps has ventured into a new category of oil-based liquids in hair dyes with Godrej Kesh Kala. - The Company has tied up with Set MAX Television to sponsor the exclusive live telecast of the singapore Challenge Cup. - Godrej Hair Care Institute has launched a new shade of colour in its colour soft range of hair dye. - The Company has rolled out a therapeutic soap called Allcare and has made its foray into the healthcare segment in the toilet soap category.

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- FMCG major Godrej Soaps has tied up with US management consulting firm Stern Stewart & Company to incorporate EVA framework in its system. - FMCG major Godrej Soaps has tied up with US management consulting firm Stern Stewart & Company to incorporate EVA (Economic Value Added) framework in its system. - The Company proposes to hive-off its consumer products business as a going concern to a new company -- Godrej Consumer Products. - Godrej Soaps has set up a committee to improve and leverage distribution in the rural markets of less than 5000 population strata. 2001 - Godrej Agrovet Ltd., a subsidiary of Godrej Soaps Ltd and a leading player in the animal feeds and agricultural inputs market, has entered into a joint venture agreement with Hindustan Lever Ltd. to acquire 74 per cent in Goldmohur Goods & Feeds Ltd. - The shareholders of the company have approved scheme of arrangement between the company and Godrej Consumer Products Ltd for demerger of the consumer products division of hte company to GCPL. - Godrej Soaps has acquired its brands for toilet soaps, chemicals, soaps, cosmetics and other products manufactured and marketed and/or distributed by it from its holding company, Godrej & Boyce. - Godrej Soaps Ltd. has launched Godrej Fairglow fairness cream in a sachet in Maharashtra, Gujarat, Madhya Pradesh, Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. - Godrej Soaps Ltd. has changed its name to Godrej Industries Ltd. after completion of its demerger on April 1 and inducted three new directors on its board. - Godrej Industries' shareholders have approved the demerger of the manufacturing division of Godrej Food into the former. - Godrej Industries Ltd. has acquired Girikandra Holiday Homes & Resorts Pvt Ltd. 2002 -High court approves for the scheme of demerger of the manufacturing division of Godrej Foods Ltd into Godrej Industries Ltd. -Board approves the scheme of purchase and consequent cancellation of the equity shares of the company. -Ties up with Karnataka Milk Federation for marketing their 'Nandini' brand of ghee. -Delhi High Court passes an order to the company to stop displaying it in any manner bearing reference to Parele products. -Board approves for the sale of its Mysore unit situated at Hebbal Industrial Ares Metagalli, Mysore. -Completes the purchase of shares pursuant to the scheme of arrangement between the company and its shareholders. -Appoints Visty Banaji as Human Resource Head. 2003 -Mr C K Vaidya resigns as the Executive Director on the Board of the company. -Withdraws unbranded edible oil from the market. -Acquires 4.73% of the total share capital of Godrej Consumer Products Ltd. -Introduces 'Sunshakti' brand in the sub-premium and premium category of edible oils in Maharashtra and Karnataka. -Godrej and Boyce Mfg. Co. Ltd. (G&B), one of the promoters of the company have sold on December 02, 2003 10,00,000 equity shares of the company to other promoters, by way of interse transfer of shares under

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Regulation 3(1) (e) of SEBI (Substantial Acquisition of shares and Takeovers) Regulations, 1997 2004 -Godrej Industries Ltd has informed that the Company has received a notice from Godrej Consumer Products Ltd (GCPL) for termination of processing agreement w.e.f. April 1, 2004. -Godrej launch 'Sofit' -Equity shares delisted from Delhi Stock Exchange -Avestha Gengraine partners with Godrej Ind 2005 -Godrej picks up US BPO firm 2006 -Godrej Industries signs deal with Godrej Tea for transfer of foods business

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