GODREJ COMPANY

INDEX:• INTRODUCTION• HISTORY OF THE COMPANY• GODREJ GROUPS• VISION AND MISSION• PAST ACHIEVEMENTS AND AWARDS• GROWTH STRATEGY OF GODREJ COMPANY• OBJECTIVES, SOCIAL RESPONSIBILITY AND

CORPORATE DETAILS• OUTWARD BOUNDS OF GODREJ COMPANY• SEGMENT SENSE OF GODREJ COMPANY• COMPETITONS OF GODREJ COMPANY• DIFFERENT GODREJ PRODUTS• FEATURES OF PRODUCTS• GODREJ FAST MOVING CONSUMER PRODUCT• ADVERTISEMENT OF CONSUMER PRODUCT

OF GODREJ COMPANY • SWOT ANALYSIS OF GODREJ COMPANY• MARKETING STRATEGY IN GODREJ• INTERNATIONAL OPERATION• REASON FOR SUCCESS• ENVIRONMENTAL CARE• CONCLUSION

INDRODUCTION

Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in various industries that include appliances, precision equipment, machine tools, furniture, healthcare, interior solutions, office equipment, food processing, security, materials handling and industrial storage solutions, construction and information technology. Its products include security Systems and Safes, Typewriters and Word processors, Rocket Launchers, Refrigerators and Furniture, Outsourcing Services, Machine Tools and Process Equipment, Cosmetics and Detergents, Engineering Workstations, Medical Diagnostics and Aerospace Equipment, Edible Oils and Chemical, Mosquito Repellents, Car perfumes, Chicken and Agri-products, Material Handling Equipments Like FORKLIFT Trucks, Stackers, Tyre handlers, Sweeping machines, access equipments etc. The Group is headed by Mr. Adi Godrej & Mr. Jamshyd Godrej.

Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's manufacturing base, but increasingly the groups have moved significant production facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli, occupying 3500 acres (14 sq km) of land on both sides of the Vikhroli section of the LBS marg. That makes the Godrej group the biggest private land owner in Mumbai by far Such vast land can, in theory, be used to create at least 1500 acres of residential floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion . Thus, the Godrej group is sitting on an invisible cashpile that is envy of other Indian conglomerates.

HISTORY OF THE COMPANY

Godrej Consumers Products is a wing of the renowned Godrej Group which was initiated in the year 1897 by Ardeshir and Pirojsha Godrej. Initially, the group was a locks manufacturing company, but now it is one of the largest diversified commercial firms in India and the most reliable brand. The company also takes pride for being the pioneer to manufacture soaps from vegetable oil. Highly appreciated for its product quality, first-class after-sales service, Godrej Consumers Products is truly the leader in its category.

GODREJ GROUPS

Employing some 18,000 employees, the Godrej Group features a diversified portfolio. Annual sales of the group is more than $1 billion and it includes wide array of industries ranging from machine tools, furniture, appliances, precision equipment to healthcare, office equipment, interior solutions, food-processing, etc. In addition, Godrej Group also has proven track record in industries such as, construction, security, information technology as well as materials handling and industrial storage solutions, Medical Diagnostics and Aerospace Equipment, Chicken and Agri-products, Engineering Workstations, Mosquito Repellents, Car perfumes, Edible Oils and Chemical, Stackers, tyre handlers, Sweeping machines, access equipments etc. It is also recognized for producing world-class Typewriters and Word processors, Rocket Launchers, security Systems and Safes.

VISION AND MISSION

VISION -Godrej in Every Home and Work Place

MISSION - • Godrej Mission is to operate in existing and new

businesses which capitalize on the Godrej brand and corporate image of reliability and integrity.

• Godrej objective is to delight our customer both in India and abroad.

• They shall achieve this objective through continuous improvement in quality, cost and customer service.

• They shall strive for excellence by nurturing, developing and empowering our employees and Suppliers.

• They shall encourage an open atmosphere, conducive to learning and team work.

PAST ACHIEVEMENTS

• In 1897, Godrej introduced the first lock with lever technology in India.

• In 1902, Godrej made the first Indian safe.• In 1920, Godrej made soap using vegetable oil, which

was a huge hit with the vegetarian community in India• In 1955, Godrej produced India's first indigenous

typewriter• In 1989, Godrej became the first company to introduce

PUF ( Polyurethane Foam)• Introduced India's first and only 100% CFC, HCFC,

HFC free refrigerators.

AWARDS

• GCPL, the Highest Ranked Indian FMCG in Asia's Hot Growth Companies' List by Business Week.

• Godrej Consumer Products Ltd. has been ranked 14th in The Best Companies to Work For study. This study was jointly conducted by Business Today, Mercer and Taylor Nelson Sofres (TNS).

• Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India survey.

• GCPL ranked 15th in Great Places to Work 2006 survey.

• The Corporate Citizen of the Year Award given by Economic Times.

• Flagship brands Goodknight, Cinthol and Ezee selected Superbrands by the Superbrands Council

• Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation, USA is acknowledged the World's largest mat manufacturers and South Asia's largest manufacturers of Coils.

• Godrej Consumer Products Limited, adjudged as a Business Super brand by the SuperBrands Council.

• The Return on Capital Employed and Return on Net Worth ratios of Godrej Consumer Products - the highest in corporate India.

• Godrej Consumer Products was awarded the "Best Managed Workforce" award given by Hewitt Associates and CNBC TV18.

• Godrej Consumer Products features in the Top 25 list of Great Places to Work (survey conducted by GrowTalent in association with Business World) for four years in a row.

• Lifetime Achievement Award for Godrej Industries from CHEMEXCIL, the Basic Chemicals Pharmaceuticals and Cosmetics Exports Promotion Council.

GROWTH STRATEGY OF GODREJ COMPANY

Godrej Consumer Products is implementing a two-pronged strategy for growth, going forward. On the one hand, it is planning to expand its product portfolio and augment its market share in the domestic market.

On the other hand, it has set sail for overseas markets. With the acquisition of Keyline brands in the UK in October 2005, it has made a strong entry into the UK market and is trying for a couple of more acquisitions.

On the domestic turf, it is leveraging its leadership position in hair colourants and is diversifying its soap brands. Easing of competition pressure to some extent and a resurgence in FMCG sales will only aid the company post better numbers.

Godrej brands posted a 20 per cent growth in FY06. Analysts peg the sales growth in FY07 and FY08 at over 40 per cent and 25 per cent, respectively. With control over raw material costs through in-house production of fatty acids (highest in India), Godrej is expected to register better bottom line growth in the coming years.

OBJECTIVES, SOCIAL RESPONSIBILITY AND CORPORATE DETAILS

OBJECTIVES:

Godrej Consumers Products is committed to protect its stakeholders' interest by offering the best services to its consumers. The company aims to serve its clientele with pioneering and cost-effective solutions to cater to their daily needs and uplift the quality of living as well.

SOCIAL RESPONSIBILITY:Godrej has a philanthropic arm that has built schools, dispensaries and a residential complex for their employees. Trusts established by Godrej continue to invest in education, healthcare and upliftment of the underprivileged.

CORPORATE DETAILS:Adi Godrej is the current Chairman of the Godrej Group. Godrej & Boyce Mfg. Co. Ltd. is headed by Mr. Jamshyd Godrej. The Group revenue was approximately US$ 1.7 billion in financial year 06/07. Godrej Interio is the flagship company of the group.

The Godrej group can be broadly divided into two major holding companies, working independently:

• Godrej Industries Ltd.• Godrej & Boyce Mfg. Co. Ltd.

OUTWARD BOUND OF GODREJ COMPANY

Godrej is going in for international acquisitions with twin strategies - diversifying risk and tapping new markets. It expects good synergies from the Keyline acquisition and a double-digit growth in these brands. It plans to introduce one brand in India in FY07. Moreover, Keyline outsources half its production, a major chunk of which could come to Godrej.

"They would use the existing distribution channel of Keyline brands to market Godrej products, with an eye on the Indian diaspora in Europe and the Caribbean," says Hoshedar Press, executive director and president.

Analysts believe that Godrej is in the advanced stage of making a couple of acquisitions this year.

The Keyline brands garnered revenue of £5.2 million (about Rs 44.08 crore) during November 2005-March 2006, while PBT was £0.6 million (about Rs 5.09 crore). Major Keyline brands include Adorn (hair spray), Aapri (skin care), hair colourants with 40 per cent market share. It witnessed a 22 per cent growth in this business in FY06. It is setting up a new facility in Sikkim with a capex of Rs 10 crore (Rs 100 million). Cuticura (talcum powder), Erasmic (shaving products) and Nulon (hand creams).

Sunil Sapre, executive vice-president (finance & commercial), says, "Although exports account for a minuscule 3 per cent of the business, at present, we see a big opportunity in South East Asia and Africa." Analysts see exports growing to 20 per cent of the total business, including the Keyline brands.

SEGMENT SENSE OF GODREJ COMPANY

An analyst at HDFC Securities expects the company to maintain its market share, even as modern day evils like pollution are likely to create more users. The fashion segment in hair colours would be another driver.

Sapre says, "Our focus would be on converting non-users into users, especially in the hair colour business."

The soaps business of Godrej, which accounts for 63 per cent of its revenues, posted a 17.5 per cent growth in FY06, compared with the industry growth of 3.2 per cent.

The company sees good growth potential in the business and stable vegetable oil prices (the chief raw material). With a 9 per cent market share in this segment, it stands second, though way behind the market leader - Hindustan Lever which has about 45 per cent share.

Godrej aims to increase its share by 1 per cent every year with focus on freebies, which, however, could lead to some margin loss. Analysts feel that the high total fatty matter in Godrej's soaps at 76 per cent, vis-a-vis 60-70 per cent in most other soaps, is a positive.

In liquid detergents, the company is a market leader with its Ezee brand at over 80 per cent market share. But this segment may see limited growth, according to analysts. In the shaving cream category, the company is trying to grow with higher-end products and improved advertising, while its talcum powder business, where it banks on freebies, is likely to remain stagnant, according to them.

COMPETITION OF GODREJ COMPANY

The company operates amid stiff competition. HLL is in a resurgent mode and ITC has plans to enter the soap business. There is competition from regional players as well. To fight competition, Godrej has been introducing new variants and brands. It recently launched its age control soap Evita.

Group chairman Adi Godrej says, "We plan to enter one new category of personal care segment every year, provided we are able to differentiate our products." In hair colourants, the company has products at all price points, from the Rs 7 powdered hair colour to the higher-end Renew and Coloursoft.

Price wars in FMCG will remain and exert pressure on margins. But, Godrej hopes to maintain margins relying on certain internal economies. For example, it manufactures fatty acids, used in soaps, in-house and enjoys economies of scale in buying vegetable oils.

Vegetable oil prices are likely to remain soft this year.

DIFFERENT GODREJ PRODUCTS

• Appliances• Locks• Furniture• Security Equipment • Office Automation• Conferencing Solutions• Typewriters• Vending Machines • Soaps & Personal Care • Foods• Air Care • Household Insecticides• Housing• Pest Management Services• Storage Solutions• Automated Warehousing • Material Handling Equipment Process Equipment• Precision Components & Systems Machine Tool

Service• Electrical & Electronic Tooling• IT Solutions• PLM Solutions• Medical Diagnostics • Agro Products• Chemical• Construction Material & Services

FEATURES OF PRODUCTS

Wide array of products are manufactured by Godrej Consumers Products. The company is popularly known for its Soaps, Toiletries, Hair Care, Household Care, and Fabric Care solutions not only in India, but also in the countries across the globe. To offer the best to the consumers, GodrejCP employs the Total Quality Management system. Major GodrejCP products include the following:

• In the hair color category, Godrej Consumers Products is considered as the best. It has variety of products such as, Godrej Liquid & Powder Hair Dyes, Godrej Kesh Kala Oil, Godrej Renew Coloursoft Liquid Hair Colours, and Nupur based Hair Dyes.

• Fairglow, Cinthol, Godrej No. 1 are some of the popular soaps of Godrej Consumers Products. FAIRGLOW is the first Fairness soap in India. GCPL is also the contract manufacturer of toilet soaps of some of the renowned brands in India.

• EZEE is the Liquid Detergent brand of Godrej Consumers Products, and it is rated as the best in this category.

GODREJ FAST MOVING CONSUMER PRODUCTS

Godrej FMCG is located in Vikhroli, Mumbai in the Western part of Maharashtra. Its has the latest technology to produce high quality potable products. One of the largest and most modern consumer product manufacturing company in the country making a soaps, deodorant etc. It also includes bulk manufacturing of deo talcs, toilet cleaner and mosquito and insects killer products. At present Godrej Industries produces the following products:

• Chocolate Syrup • Godrej Hersheys Limited • Kiwi Shoe Polish • Godrej Sara Lee Limited • Frozen foods veg/non veg • Godrej Tyson Limited • Soya milk Flavoured • Godrej Sara Lee Limited • Xs Fruit Juice • Godrej Sara Lee Limited • Renew Hair Colour

ADVERTISEMENT OF CONSUMER PRODUCTS OF GODREJ COMPANY

GODREJ NO.1

India largest selling No.1 soap

CINTHOLLong lasting freshness for 24hr

GODREJ EXPERTIndia’s largest selling hair colour

GODREJ PROTEKT

Freedom to touch

RENEW

Permanent hair colour creme

COlOUR SOFT

Hair Ultra gentle colour

SWOT ANALYSIS OF GODREJ COMPANY

STRENGTHS OF GODREJ COMPANY

• STRONG BRAND NAME• QUALITY• GOOD REPUTATION AMONG THE CUSTOMERS• SERVICE MANAGEMENT• SUPLY CHAIN MANAGEMENT• EXCLUSIVE ACCESS TO HIGH GRADE NATURAL

RESOURCES• FAVOURABLE ACCESS TO DISTRIBUTION

NETWORKS MANAGEMENT• EMPLOYEE• INNOVATIVE ASPECTS• FINANCIAL RESERVES• MARKET LEADER

WEAKNESSES OF GODREJ COMPANY

• COST OF PRODUCT• MARKETING• EMPLOYEE TURN OVER RATIO• CENTRALISATION

OPPOTUNITIES OF GODREJ COMPANY

• INDUSTRY OR LIFESTYLE TRENDS• COMPETITOR’S VULNERABILITIES• MARKET DEVELOPMENT• TECHNOLOGY DEVELOPMENT AND INNOVATION• GLOBAL INFLUENCES• NEW MARKETS• NICHES TARGET MARKET• BUSINESS AND PRODUCT DEVELOPMENT• INFORMATION AND RESEARCH

THREATS OF GODREJ COMPANY

• COMPETITORS INTENTION• MARKET DEMAND• NEW TECHNOLOGIES, SERVICES, IDEAS• OBSTRACLES FACED• LOSS OF KEY STAFF• SEASONALITY• COUNTRY’S ECONOMY

MARKETING STRATEGY IN GODREJ

Godrej aims to relaunch products across categories to revive demand and enhance consumer recall. In some cases, the products will only be repackaged and relaunched with a new marketing strategy; in others, the brands will be extended to some new product categories. New pitch: The consumer goods major has hired Bollywood actor Hrithik Roshan to endorse its flagship soap brand Cinthol.The company has lined up major initiatives for its soap business. With 11% market share in value terms, Godrej is the second largest soap maker after Hindustan Unilever. Godrej plans a complete makeover of its flagship soap brand Cinthol and has hired Bollywood actor Hrithik Roshan as a pitchman. The brand, which was launched in 1952 as the first deodorant soap in the country, has been through several changes since then. It was initially positioned as a male-centric product but later it was repositiioned as family soap but now, the company plans to pitch it as a youth-centric brand, along with launching new products under the same brand name. “They will also introduce hand wash and shower gels under the (Cinthol) brand,” said Hoshedar K. Press, executive director and president. In the 1980s, Cinthol was a leading brand with market share in double digits and was endorsed by popular celebrities such as Vinod Khanna and former Pakistani cricketer Imran Khan. According to AC Nielsen, in August, Cinthol had a 2.5% share in the Rs6,000 crore annual soap segment. “Cinthol enjoys a good brand equity among consumers, which doesn’t reflect in its market share.

INTERNATIONAL OPERATIONS

Popularity of GCPL products has been growing rapidly in international market, and to meet this emerging demand, the company is also expanding the breadth of its operations. GodrejCP products are now exported to 30 countries worldwide.

Stock Exchanges are structured marketplace where affiliates of the union gather to sell firm's shares and other securities. India Stock Exchanges can either be a conglomerate/ firm or mutual group. They form their own accounts.

Stock Exchanges in India affiliates act as intermediaries to their patrons or as key players also assist the issue and release of securities and other monetary tools incorporating the fortification of revenues and dividends. The book keeping of the trade is centralized but the buying and selling is associated to a particular place as advanced marketplaces are mechanized. The buying and selling on an exchange is only open to its affiliates and brokers.

REASONS FOR SUCCESS

• A young, experienced and talented team with a vision and passion to grow.

• Wide variety of products across markets catering to various segments of the society.

• Market research and the ability to address and respond to the consumer needs positively.

• Participation with the Government in formulation of policy.

• A solid low-cost distribution structure across different markets, which has fueled this strong growth.

• Ensuring delivery of high quality products. • In-house master blenders with over 30 years of

expertise. • Panel of expert and professional consultants on board. • Godrej Industries Limited has debuted 12th in the “Best

Companies to work for in India” survey done by Mercer Consulting and Business Today.

• As per the Thematic Research – Great, Good and Gruesome survey done by Motilal Oswal – 13th Wealth Creation Study 2003-2008, Godrej Industries Limited has been :

Ranked 8th in the top 10 Fastest Wealth Creators. Ranked 64th in the top 100 Biggest Wealth Creators.

ENVIRONMENTAL CARE We are blessed to be in the planet called Earth and enjoy its pristine beauty to inhabit in it. As a large entity, it is thier commitment to preserve this beautiful paradise. Shaw Wallace as a company has conceived a variety of on-going initiatives, designed exclusively to safeguard the wonderful gift of Mother Nature. After all, this obligation extends to the generations that will follow them in the years to come. In an endeavour to bolster environmental care andnourishment, at Godrej Industries, maintain the highest standards of precaution, within the vicinity of thier manufacturing units. As a good corporate citizen, they have taken adequate steps to protect and conserve the resources inherited from nature, adopting various environmental friendly measures. The greenery and landscapes maintained at several of our units have also won the 'Best Garden' awards on numerous occasions. At Godrej Industries unit there has been a significant reduction of wastage of all raw materials and compliance with international pollution control norms. Godrej Industries has based its environment policy on parameters like conservation of natural resources, complying with legal requirements of all statues applicable to the organization, prevention loss of bio-diversity, air-pollution, water-pollution and also to impart training for environment management. The industry has also developed systems to ensure that the policies and objectives are implemented periodically. Also the godrej industries produces high quality of agriculture products under the brand name of the “Godrej Adhaar”.

CONCLUSION

With the above project on Godrej specifically on its product division I has got a great deal of knowledge about the company Godrej and its consumer related products chain. Godrej is one of the leading company of our country and one of the forward moving MNC’s of the business world and I as enjoyed making the project with full of information and pictorial representation of the products. All the product has being doing well in the market due to the marketing strategy used by the Godrej. But Godrej can think of coming with the products which will be focusing on many other segments of the market. A change in segmentation and targeting of a different genre of consumers apart from its traditional market can open up new avenues of customer base.