Godrej Industries Limited · NSE:GODREJIND
Godrej Industries — Investor Presentation (June 2012)
82 slides from Godrej Industries's investor presentation, June 2012
Slide 1: Godrej Industries Limited
GODREJ INDUSTRIES LIMITED JUNE 2012 1 I Godrej Industries I 2012
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form or deem to constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of Godrej Industries Limited (the “Company”) or any of its subsidiaries
Slide 3: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 4: Godrej Group
GODREJ GROUP • Established in 1897 Value creation for investors 11 year CAGR • US $3.9 billion1 (approx) in annual revenue • $2.8 billion brand valuation by Interbrand in Godrej Industries Ltd. 48% October 2010 • Over 500 million2 people use one or another Godrej Consumer Products Ltd. 39% Godrej pr
Slide 5: Godrej Industries (GIL)
GODREJ INDUSTRIES (GIL) Diversified Business Model • Leveraging the “India growth story” through presence in multiple, established and growing sectors • Portfolio of quality products that successfully cater to growing aspirations of consumers – Urban & Rural, Domestic & Global • Diversified business
Slide 6: Financial Performance: GIL Standalone
FINANCIAL PERFORMANCE: GIL STANDALONE INR millions FY 2009-10 FY 2010-11 FY 2011-12 CAGR Total Income 9,917 12,545 15,631 26% PBT 800 1,360 2,011 59% Net Profit 809 1,334 2,016 58% EPS 2.54 4.20 6.33 58% Debt- Equity Ratio 0.55 0.51 0.41 NA Share Capital 318 318 318 NA Reserves 9,909 10,584 12,008 N
Slide 7: CREATE Group Portfolio Approach
GODREJ INDUSTRIES LIMITED “CREATE” GROUP PORTFOLIO APPROACH Consumer & Chemicals Real 4 core businesses Estate Agri Transformation Drive to full potential Emergent Focused incubation of new businesses 7 I Godrej Industries I 2012
Slide 8: Corporate Structure
GODREJ INDUSTRIES LIMITED CORPORATE STRUCTURE Own Businesses: Chemicals, Estate Management, Shareholding % Finance & Investments Godrej Consumer Godrej Properties Godrej Agrovet Products Others 61.5% 75.2% 21.2% • Nature’s Basket (100%) • Godrej Hershey (43.4%) • Other investments 8 I Godrej Industr
Slide 9: Management Team
GODREJ INDUSTRIES LIMITED MANAGEMENT TEAM Name Designation Profile • Chairman of the Godrej Group Chairman, Godrej • President of the Confederation of Indian Industry (CII) Adi Godrej Industries • Bachelors and Masters degree in management from the Massachusetts Institute of Technology • Director on
Slide 10: Management Team
GODREJ INDUSTRIES LIMITED MANAGEMENT TEAM Name Designation Profile • Joined GPL in 2004 Executive Director – • Executive Director of GPL since 2008 Pirojsha Godrej Godrej Properties • Holds a Bachelors Degree in Economics from the Wharton School at the University of Limited Pennsylvania, and an MBA
Slide 11: Financial Overview – Consolidated
GODREJ INDUSTRIES LIMITED FINANCIAL OVERVIEW – CONSOLIDATED REVENUE GROWTH EBITDA AND EBITDA MARGIN 70,000 5,000 4,657 12.0% CAGR: 25% CAGR: 15% 4,573 60,000 58,039 9.3% 10.0% 4,000 50,000 3,471 10.1% 46,020 8.0% INR Millions INR Millions 40,000 37,155 3,000 7.9% 6.0% 30,000 2,000 4.0% 20,000 1,000
Slide 12: Financial Overview – Consolidated
GODREJ INDUSTRIES LIMITED FINANCIAL OVERVIEW – CONSOLIDATED PAT AND PAT MARGIN NET WORTH AND RoAE CAGR: 20% CAGR: 16% 7.0% 35,000 20.0% 4,000 6.4% 5.5% 6.0% 30,000 15.9% 2,934 5.0% 23,670 16.0% 5.0% 25,000 12.8% 3,000 2,916 13.6% INR Millions INR Millions 19,306 12.0% 4.0% 20,000 17,656 2,032 2,000
Slide 13: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 14: Godrej Consumer Products: Company Overview
GODREJ CONSUMER PRODUCTS LIMITED COMPANY OVERVIEW • Home and personal care company - US $1 billion1 in sales • Leading positions in core categories (hair colours, household insecticides, and liquid detergents) in the domestic market • Strong positions in one or more core categories in overseas marke
Slide 15: Categories and Geographies
GODREJ CONSUMER PRODUCTS LIMITED CATEGORIES AND GEOGRAPHIES • Focus on emerging markets in Asia, Africa and Latin America • Three core categories – Home Care, Hair Care, Personal Wash • Disciplined M&A approach – 7 acquisitions in FY 11 and FY12 3X3 • Values based partnering approach Product Mix (FY
Slide 16: Core Strategy
GODREJ CONSUMER PRODUCTS LIMITED CORE STRATEGY • Grow ahead of market Core Category Leadership • Drive consumption and penetration • Strengthen portfolio and extend into adjacencies • Three core categories; three emerging markets Drive International Growth • Consolidate existing footprint • Value ba
Slide 17: Strong Domestic Performance in FY12
GODREJ CONSUMER PRODUCTS LIMITED STRONG DOMESTIC PERFORMANCE IN FY 12 Key Categories Key Brands GCPL Growth 31% Household Insecticides GCPL Growth 27% Soaps GCPL Growth 14% Hair Colour GCPL Growth 17 I Godrej Industries I 2012
Slide 18: Domestic Business Performance
GODREJ CONSUMER PRODUCTS LIMITED DOMESTIC BUSINESS PERFORMANCE FY 12 SALES BY CATEGORY CAGR: 34% 29,980 ∆ 21% Exports, 24,760 Others, 7% 5% Personal Wash, 33% ∆ 48% 16,710 Home Care, 44% Hair Care, 11% FY10 FY11 FY12 Net Sales Note: Values in INR Millions 18 I Godrej Industries I 2012
Slide 19: Strong International Brands
GODREJ CONSUMER PRODUCTS LIMITED STRONG INTERNATIONAL BRANDS Geographies Key Brands Category GCPL Growth* Household Insecticides, Air Care, 19% Indonesia Baby Wipes & Other Hair colours, hair Africa extensions, soaps NA Latin America Hair Colour 22% UK Personal Care 11% * Sales in local currency ;Li
Slide 20: International Business Performance
GODREJ CONSUMER PRODUCTS LIMITED INTERNATIONAL BUSINESS PERFORMANCE FY 12 SALES BY GEOGRAPHY CAGR: 122% 18,640 Middle East ∆ 54% 1% Europe 11% 12,070 Africa 23% Indonesia ∆ 219% 50% Latin 3,780 America 15% FY10 FY11 FY12 Net Sales Note: Values in INR Millions 20 I Godrej Industries I 2012
Slide 21: GCPL Consolidated Financials
GODREJ CONSUMER PRODUCTS LIMITED GCPL CONSOLIDATED FINANCIALS NET SALES EBITDA AND EBITDA MARGIN 50,000 ∆ 32% 48,510 9,000 8,760 21.0% CAGR: 54% CAGR: 46% 8,000 20.1% 40,000 36,760 7,000 20.0% 6,530 ∆ 80% 6,000 30,000 19.0% 5,000 4,110 18.1% 20,410 4,000 20,000 18.0% 3,000 17.8% 10,000 2,000 17.0% 1
Slide 22: GCPL Consolidated Financials
GODREJ CONSUMER PRODUCTS LIMITED GCPL CONSOLIDATED FINANCIALS PBT AND PAT NET WORTH 11,000 PBT CAGR: 53% 30,000 28,152 ∆ 50% CAGR: 72% 9,770 9,000 25,000 7,270 7,000 6,530 20,000 17,252 ∆ 55% 5,150 15,000 5,000 4,200 3,400 9,547 10,000 3,000 5,000 1,000 - (1,000) FY10 FY11 FY12 FY10 FY11 FY12 PBT PA
Slide 23: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 24: Chemicals: Business Overview
CHEMICALS BUSINESS OVERVIEW • One of India’s leading manufacturers of oleo- Revenue Mix (FY 2012) chemicals and pioneer in surfactants • Caters to the raw material needs of consumer goods sectors – Personal care, home care, tyre industry Exports 43.7% and specialised applications Domestic 56.3% • Su
Slide 25: Products Used as Input in Variety of Applications
CHEMICALS PRODUCTS USED AS INPUT IN VARIETY OF APPLICATIONS PRODUCTS APPLICATIONS DRIVERS FOR GIL • Cosmetics and Toiletries • Movement into specialty fatty acid to Fatty acids & • Rubber drive growth and profitability glycerin • Polymer • Leverage presence across the range of • Pharmaceutical, Hume
Slide 26: Chemicals: Financial Overview
CHEMICALS FINANCIAL OVERVIEW REVENUE GROWTH PBIT GROWTH AND MARGIN 14,000 2,000 9.3% 10.0% CAGR: 28% ∆ 25% 12,836 CAGR: 57% 8.8% 12,000 ∆ 31% 10,229 8.0% 1,500 10,000 6.2% 1,198 INR Millions INR Millions 7,813 6.0% 8,000 1,000 900 6,000 4.0% 4,000 486 500 2.0% 2,000 - - 0.0% FY10 FY11 FY12 FY10 FY11
Slide 27: Chemicals: Long Term Strategy
CHEMICALS LONG TERM STRATEGY • Continue to build strong position in long chain fatty alcohols • Expand on specialty chemicals • Leverage competitive advantage India has in Rapeseed oil – increase share of high margin derivatives of rapeseed oil in the value added portfolio • Capacity expansion • Bet
Slide 28: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 29: Industry Overview – Strong Macro Factors for Indian Real Estate
GODREJ PROPERTIES LIMITED INDUSTRY OVERVIEW – STRONG MACRO ECONOMIC FACTORS FOR REAL ESTATE SECTOR IN INDIA Over 100 mn Households will Join Indian Middle Class Increase in Working Population by 2030 Source: Adapted from McKinsey Global Institute, India’s Urban Awakening: Building Inclusive Cities,
Slide 30: Godrej Properties: A Snapshot
GODREJ PROPERTIES LIMITED A SNAPSHOT Pan India Presence – 77 mn sqft of developable area* • Established in 1991 • Presence in 12 cities across India • Listed on BSE and NSE • 77 million sq ft of developable area* Metropolitan Region • Residential | commercial | townships 7.0 • Differentiated busines
Slide 31: Key Strengths
GODREJ PROPERTIES LIMITED KEY STRENGTHS • Ranked 4th best brand in India by The Week magazine • Over 500 million people use a Godrej product every day1 Godrej Brand • GPL aspires to bring the Godrej brand’s reputation for trust and quality to the real estate sector Joint Venture Business • Competiti
Slide 32: Strategy
GODREJ PROPERTIES LIMITED STRATEGY • Leverage long-standing business relations: Customers, JV partners and business Leverage Brand & community Group Associations • Access to group resources, systems and structured group-wide processes Focused Residential • Focus on residential development in high gr
Slide 33: Differentiated Land Sourcing and Business Development Formats
GODREJ PROPERTIES LIMITED DIFFERENTIATED LAND SOURCING AND BUSINESS DEVELOPMENT FORMATS • Successfully operated capital efficient and asset light model for many years Joint Development • The Trees, Vikhroli: 34.2 acres mixed use development with Godrej Group companies • Godrej Garden City, Ahmedabad
Slide 34: Commitment to Sustainable Development
GODREJ PROPERTIES LIMITED COMMITMENT TO SUSTAINABLE DEVELOPMENT Every new Godrej Properties’ project is proposed to be a certified green project Godrej Garden City Godrej Eternia Godrej One One of the two projects in India LEED Platinum pre-certified LEED Platinum pre-certified and 17 worldwide chos
Slide 35: FY Highlights
GODREJ PROPERTIES LIMITED FY 12 HIGHLIGHTS Continued progress in • Total booking value of INR 15.6 Bn in FY 12 compared to INR 10.7 Bn in FY 11 spite of a tough • Strong growth in commercial sales as compared to FY 11 environment Apart from new phases in ongoing projects, new projects launched in: •
Slide 36: Partnership with Godrej & Boyce on Vikhroli
GODREJ PROPERTIES LIMITED PARTNERSHIP WITH GODREJ & BOYCE ON VIKHROLI • MoU for appointing us as ‘Development Manager’ for all of G&B Vikhroli land – Agreement for two residential towers • GPL entitled to 10% of the net sales collections as development manager fee Key Features • GPL to undertake the
Slide 37: Awards and Recognition
GODREJ PROPERTIES LIMITED AWARDS AND RECOGNITION 12 awards won in FY12, including • 'Corporate Governance of the Year', 2011 by Accommodation Times at 26th National Real Estate Awards for excellence in Real Estate • Star Realty – Lords of the Land – 2011-12 award at STAR REALTY 2011-12 • ‘Best Emerg
Slide 38: Financial Overview – Consolidated
GODREJ PROPERTIES LIMITED FINANCIAL OVERVIEW – CONSOLIDATED INR Millions FY10 FY11 FY12 CAGR Net Sales 2,427 4,515 7,701 78% EBITDA 1,655 2,125 2,077 12% EBITDA (%) 68.2% 47.1% 27.0% - PAT 1,228 1,309 979 -11% PAT (%) 50.6% 29.0% 12.7% - Net Worth 8,173 9,116 14,426 33% Note: EBITDA for FY12 lower t
Slide 39: FY Planned Launches
GODREJ PROPERTIES LIMITED FY 13 PLANNED LAUNCHES Launches Planned in H1 FY 13* Launches Planned in H2 FY 13* Project City Type Project City Type Godrej Serenity Mumbai Residential Godrej Summit Phase 2&3 Gurgaon Residential Godrej Horizon Phase 1 Pune Residential Godrej Horizon Phase 2 Pune Resident
Slide 40: Vikhroli Development Project
GODREJ PROPERTIES LIMITED VIKHROLI DEVELOPMENT PROJECT • 34.2 acre mixed development project “The Trees” at Vikhroli being developed by Godrej Vikhroli Properties LLP (GVPL) • Land purchased from Godrej & Boyce for a total consideration of INR 7,169 million to be paid over five and a half years from
Slide 41: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 42: Godrej Agrovet: A Snapshot
GODREJ AGROVET A SNAPSHOT Business Overview Business Product Overview Segment • One of India’s largest commercial feed millers by volume • Produced 957,042 MT of animal feed in FY2012 Animal Feeds • Developing nutrition products for cattle, poultry, aquaculture • 50:50 JV in Bangladesh with Advanced
Slide 43: Financial Overview
GODREJ AGROVET FINANCIAL OVERVIEW REVENUE GROWTH PBIT AND PBIT MARGIN 30,000 1,600 7.0% CAGR: 23% 1,403 24,600 CAGR: 59% 25,000 6.0% 1,200 5.7% 19,160 5.0% 20,000 4.2% INR Millions INR Millions 16,130 3.4% 4.0% 809 15,000 800 3.0% 553 10,000 2.0% 400 5,000 1.0% - - 0.0% FY10 FY11 FY12 FY10 FY11 FY12
Slide 44: Identifying India's Key Agricultural Opportunities
GODREJ AGROVET IDENTIFYING INDIA’S KEY AGRICULTURAL OPPORTUNITIES PROTEIN CRISIS EDIBLE OIL CRISIS YIELD CRISIS Animal Feeds Oil Palm Agri Inputs Godrej Tyson Hybrid Seeds 44 I Godrej Industries I 2012
Slide 45: Livestock Critical to Meet India's Protein Demand
GODREJ AGROVET LIVESTOCK CRITICAL TO MEET INDIA’S PROTEIN DEMAND Market Size 1 Protein Nutritional (Volume) Conversion2 Protein (MT) Dairy 112.5 million MT Production 3.5% 3.94 mn MT of milk Inland Aquaculture 4.9 million MT of 20.0% 0.98 mn MT fish/shrimp 6.22 mn MT of protein! Meat 4.0 million MT
Slide 46: India Trails Global Averages for Meat/Milk/Egg Consumption
GODREJ AGROVET INDIA TRAILS GLOBAL AVERAGES FOR MEAT/MILK/EGG CONSUMPTION; HUGE FUTURE GROWTH UPSIDE MEAT MILK EGGS REGION/COUNTRY GROUP/ COUNTRY (kg/capita/year) (kg/capita/year) (kg/capita/year) 1980 2005 1980 2005 1980 2005 DEVELOPED COUNTRIES 76.3 82.1 197,6 207.7 14.3 13.0 Former centrally plan
Slide 47: Feed Industry Driving Livestock Modernization in India
GODREJ AGROVET FEED INDUSTRY DRIVING LIVESTOCK MODERNIZATION IN INDIA 2002 2012 feed as commodity feed as performance product dairy as farmer side activity Dedicated dairy farms being built 1.5 kg broiler weight, 2.0 FCR 2.0 kg broiler weight, 1.5 FCR two fish species, BT shrimp nine fish species, V
Slide 48: Animal Feeds Business
GODREJ AGROVET ANIMAL FEEDS BUSINESS Business Overview • One of India’s largest commercial feed millers, established in 1971 • Acquired Goldmohur Foods & Feeds in 2001 from Unilever • Currently producing approximately 1 million MT per annum of feed and nutrition products for cattle, poultry and aqua
Slide 49: Animal Feeds Business: Strategic Initiatives
GODREJ AGROVET ANIMAL FEEDS BUSINESS Strategic Initiatives • Augmenting capacities, with new feed mills being established • Expanding margins through nutrition R&D, strategic purchasing, and logistics • Accelerating development of innovative livestock nutrition products • Animal nutrition R&D facili
Slide 50: ACI Godrej Agrovet (Bangladesh)
GODREJ AGROVET ACI GODREJ AGROVET (BANGLADESH) Business Overview • Formed in 2004; 50:50 JV with Advanced Chemicals Industries (ACI) and GAVL. • Focused on selling animal feed (poultry, fish, cattle, shrimp) and day old chicks • Developed close relationships with farmers by providing cost effective
Slide 51: Poultry (Godrej Tyson Foods)
GODREJ AGROVET POULTRY (GODREJ TYSON FOODS) Overview Key Brands • Company is a 49:51 JV with Tyson Foods (USA) • Real Good Chicken was launched in 1999 • Producing and marketing processed chicken, frozen (chicken and vegetarian) snacks • ISO 22000:2005 certified processing plants in Bangalore and Mu
Slide 52: Addressing India's Key Agricultural Opportunities
GODREJ AGROVET ADDRESSING INDIA’S KEY AGRICULTURAL OPPORTUNITIES PROTEIN CRISIS EDIBLE OIL CRISIS YIELD CRISIS Animal Feeds Oil Palm Agri Inputs Godrej Tyson Hybrid Seeds 52 I Godrej Industries I 2012
Slide 53: Oil Palm Critical for India's Long Term Food Security
GODREJ AGROVET OIL PALM CRITICAL FOR INDIA’S LONG TERM FOOD SECURITY 16 MILLION MT OF EDIBLE OIL 14 12 8.2 8.8 10 5.6 4.4 4.7 8 6 4 7.1 6.9 7.15 6.7 6.4 2 0 FY06 FY07 FY08 FY09 FY10 Domestic Production Imports Source: ICRA – Indian Edible Oils Industry: Key Trends and Credit Implications, July 2011
Slide 54: India Becoming a Significant Player in Global Palm Oil
GODREJ AGROVET INDIA IS BECOMING A SIGNIFICANT PLAYER IN GLOBAL PALM OIL Source: Key Sustainability Issues in the Palm Oil Sector, A Discussion Paper Commissioned by World Bank, 2006 54 I Godrej Industries I 2012
Slide 55: Quick Primer on Oil Palm Industry in India
GODREJ AGROVET QUICK PRIMER ON OIL PALM INDUSTRY IN INDIA • Oil palm cultivation in India operates on a command area model • state governments allocate specific territories to companies • no territory overlaps, so no competition among companies in same area • company encourages farmers in its territ
Slide 56: Oil Palm Business for GAVL
GODREJ AGROVET OIL PALM BUSINESS FOR GAVL BUSINESS OVERVIEW OIL PALM PROCESS • Oil Palm business established in 1991; Godrej currently one of the largest oil palm cultivator in India • As of end-FY2012, developed over 45,000 hectares of oil palm in the states of Andhra Pradesh, Tamil Nadu, Goa, Oris
Slide 57: Oil Palm New Cultivation Area
GODREJ AGROVET OIL PALM NEW CULTIVATION AREA OIL PALM BUSINESS FOR GAVL 8,000 7,000 Strategic Initiatives 6,000 4,753 • HECTARES Accelerating area expansion, especially in Tamil 3,992 4,000 Nadu, Maharashtra, and Gujarat • Launching two additional leaf and soil laboratories to 2,000 improve oil palm
Slide 58: Addressing India's Key Agricultural Opportunities
GODREJ AGROVET ADDRESSING INDIA’S KEY AGRICULTURAL OPPORTUNITIES PROTEIN CRISIS EDIBLE OIL CRISIS YIELD CRISIS Animal Feeds Oil Palm Agri Inputs Godrej Tyson Hybrid Seeds 58 I Godrej Industries I 2012
Slide 59: Low Yields Reveal Requirement for Agri Inputs
GODREJ AGROVET LOW YIELDS REVEAL MASSIVE REQUIREMENT FOR AGRI INPUTS TO IMPROVE INDIAN AGRICULTURAL PRODUCTIVITY MAIZE YIELD PULSE YIELD 120,000 20,000 54,598 18,562 44,324 43,747 16,000 18,141 95,923 80,000 15,834 6,539 19,582 12,000 78,122 11,613 Hg / Ha Hg / Ha 40,000 8,000 9,217 4,000 0 - INDIA
Slide 60: Significant Opportunity for Agrochemical Penetration
GODREJ AGROVET SIGNIFICANT OPPORTUNITY FOR AGROCHEMICAL PENETRATION 20.0 PESTICIDE CONSUMPTION IN SELECT COUNTRIES 17.0 16.0 12.0 12.0 Kg/Ha 8.0 6.6 6.6 4.0 3.0 2.3 0.6 - TAIWAN JAPAN KOREA FRANCE EUROPE USA INDIA Source: Planning Commission – Working Group on Indian Chemical Industry 11 th Five Yea
Slide 61: Agri Inputs Business
GODREJ AGROVET AGRI INPUTS BUSINESS Business Overview • Currently focused on plant growth regulators, soil conditioners, and herbicides • Strong distribution network, with more than 3000 distributors, dealers and C&F agents providing pan-India coverage • Focus on R&D has paid off, with success of Hi
Slide 62: Agri Inputs Business: Strategic Initiatives
GODREJ AGROVET AGRI INPUTS BUSINESS Strategic Initiatives • Driving sales growth through Hitweed, Zymegold, and HBR • Scouting for technical partnership to secure next generation products • Registering new paddy herbicide and preparing for commercial launch • Increasing salience of high-margin trade
Slide 63: Huge Opportunity Remains in Indian Seed Industry
GODREJ AGROVET HUGE OPPORTUNITY REMAINS IN INDIAN SEED INDUSTRY Cotton Production and Yield in India India has Outpaced China in Adoption of BT Cotton 100 40 518 600 (Mn Bales of 170 Kgs. of each) 467 India 35 421 500 30 403 395 80 362 400 25 307 318 China (Kg/Ha) 20 300 60 33.5 190 186 191 % 15 25.
Slide 64: Seeds Business
GODREJ AGROVET SEEDS BUSINESS • Godrej Seeds & Genetics Limited (GSGL) launched in mid-FY2012 • Focusing on three core crops; product mix will keep trade interested • maize • paddy • bajra • Building sales team covering high potential states • resources prioritized to Maharashtra, Bihar, Karnataka,
Slide 65: Strategy Summary
GODREJ AGROVET STRATEGY SUMMARY Godrej Agrovet’s mission is to improve the productivity of Indian farmers by innovating products and services that sustainably increase crop and livestock yields We aim to innovate better products and services for Indian farmers FEED • high performance animal feeds •
Slide 66: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 67: Transformation: Enablers
TRANSFORMATION ENABLERS Quality of management and aligned incentives RATIONALE • Professional management teams • Accelerate value creation trajectory and • EVA based performance linked remuneration harness tremendous growth potential • Long term incentives • 118 years young and preserving core value
Slide 68: Transformation: Key Elements
TRANSFORMATION KEY ELEMENTS Harness power of • Brighter Living positioning Godrej brand • Strengthen brand equity • Systematic talent management Define differentiated • Tailored career planning employer proposition • Advanced learning and training • Deepen employee engagement Create high • Sustain r
Slide 69: Embracing Shared Value Across the Group
TRANSFORMATION EMBRACING SHARED VALUE ACROSS THE GROUP E.g. Climate change Revenue growth e.g. new, green products Address Social Strengthen Problems Drivers of Competitiveness E.g. Quality education Improved talent pipeline Create Shared Value The concept of shared value can be defined as policies
Slide 70: Group Wide Initiative 'Good & Green' Launched
TRANSFORMATION GROUP WIDE INITIATIVE ‘GOOD & GREEN’ LAUNCHED Beyond Business: Building a More Inclusive and Greener India by 2020 ensuring creating a innovating for employability greener India good & green train 1 million rural and achieve zero waste, carbon have a third of our urban youth in skille
Slide 71: Building an Inspiring Place to Work
TRANSFORMATION BUILDING AN INSPIRING PLACE TO WORK TSR = 4% Below Average 45% 68% 30% Serious Indifferent Range Range High Performance/ Aon Hewitt Best Employer Range Destructive Range 0% 100% Benchmark Averages* GILAC India(68%) BE India (77%) Asia Pacific BE (81%) * Godrej Industries Employee Enga
Slide 72: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 73: Nature's Basket Limited
EMERGENT NATURE’S BASKET LIMITED • Started in 2005 as a fresh food retailer ; morphed into fine food retailer in 2008 • One of India’s leading fine beverages and gourmet food retail chains and a strong player in this space • Supply arrangements in place with over 300 suppliers including consolidator
Slide 74: Nature's Basket Limited: Revenue Growth
EMERGENT NATURE’S BASKET LIMITED REVENUE GROWTH 900 820 800 CAGR: 54% 700 INR Millions 600 554 500 400 339 300 200 100 - FY10 FY11 FY12 REVENUE 74 I Godrej Industries I 2012
Slide 75: Godrej Hershey Limited
EMERGENT GODREJ HERSHEY LIMITED • Established in 2007, joint venture between The Hershey Company (USA) and the Godrej Industries Limited, with Godrej currently holding a 43.4% stake • JV operates in multiple categories, such as confectionary, beverages, and grocery items • Four regional sales office
Slide 76: Godrej Hershey Limited: Revenue Growth
EMERGENT GODREJ HERSHEY LIMITED REVENUE GROWTH GROWTH IN KEY PORTFOLIOS / BRANDS 4,000 VALUE GROWTH SEGMENT/ BRAND 3,917 (FY12 OVER FY11) 3,900 CAGR: 8% Beverages Portfolio 7% 3,800 INR Millions - Jumpin 8% 3,700 3,633 - Sofit 5% 3,600 3,500 Oil Portfolio 28% 3,400 Hershey Syrup 23% FY11 FY12 REVENU
Slide 77: Agenda
AGENDA INTRODUCTION TO GODREJ INDUSTRIES CONSUMER & CHEMICALS REAL ESTATE AGRI TRANSFORMATION EMERGENT INVESTMENT RATIONALE
Slide 78: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE GODREJ INDUSTRIES (CONSOLIDATED) REVENUE NET PROFIT 70,000 4,000 CAGR: 17% 60,000 58,039 CAGR: 15% 2,934 2,916 3,000 50,000 45,916 INR Millions INR Millions 40,000 36,134 37,155 2,032 30,820 2,000 30,000 1,678 1,115 20,000 1,000 10,000 - - FY08 FY09 FY10 FY11 FY12 FY08 F
Slide 79: History of Value Creation
HISTORY OF VALUE CREATION GODREJ INDUSTRIES 11 year compounded annual growth rate (CAGR) Note: CAGR calculated on closing stock prices as of June 18th, 2001 and June 20th, 2012 79 I Godrej Industries I 2012
Slide 80: Strong Value of Underlying Assets
STRONG VALUE OF UNDERLYING ASSETS GODREJ INDUSTRIES Investment Market Holding Value* of Company Business at cost (%) investment (INR Mn) (INR Mn) Godrej Consumer FMCG, Personal and Household 21.2 5,826 40,033 Products Care Products Real Estate and Property Godrej Properties 61.5 2,299 27,220 Develop
Slide 81: Value Unlocking Potential
VALUE UNLOCKING POTENTIAL GODREJ INDUSTRIES Other Valuable Interests 8,500 Animal Feed 7,500 (FY 2012 Revenue: 7,221 6,500 INR 17,480 million) 6,724 INR Crore 5,500 Oil Palm Plantation GCPL & GPL 4,500 (FY 2012 Revenue: 3,500 INR 2,240 million) GPL listed 2,500 Confectionary / Foods 1,500 GCPL only
Slide 82: Thank You for Your Time and Consideration
THANK YOU FOR YOUR TIME AND CONSIDERATION 82 I Godrej Industries I 2012
Godrej Industries — Investor Presentation (June 2012) on 6ix