Godrej Industries Limited · NSE:GODREJIND
Godrej Industries — Investor Presentation (September 2010)
31 slides from Godrej Industries's investor presentation, September 2010
Slide 1: Corporate Presentation
CORPORATE PRESENTATION September, 2010 INDUSTRIES 1
Slide 2: Disclaimer
DISCLAIMER This presentation does not constitute or form part of any offer or recommendation or solicitation to purchase or buy or deal with in any securities of Godrej Industries Limited (“GIL”) or Godrej Properties Limited (“GPL”) or Godrej Consumer Products Limited (“GCPL”) (referred to as the “C
Slide 3: Group Overview
GROUP OVERVIEW • 113 years young (estd. 1897) • Largely privately owned by the Godrej family • Rs. 118 billion (US$ 2.7 billion) turnover • 21,000+ people • Diversified – 7 major companies (4 publicly traded) • Global operations in 16 countries 3
Slide 4: Group Structure
GROUP STRUCTURE GODREJ & BOYCE Appliances GODREJ INDUSTRIES Construction Electricals Chemicals Interio Estate Lawkim Motors Finance Locks Material Handling Godrej Consumer Products Precision Engineering Godrej Properties Precision Systems Godrej Agrovet Prima Godrej Household Products Limited Proces
Slide 5: Areas of Business
AREAS OF BUSINESS IT & ITES REAL ESTATE & 5% INVESTMENTS FMCG 13% 26% HOME APPLIANCES 11% OFFICE & CONSUMER AGRI-PRODUCTS DURABLES 13% 17% INDUSTRIAL 15% 5
Slide 6: Godrej @ Vikhroli (Pirojshanagar)
GODREJ @ VIKHROLI (PIROJSHANAGAR) • During second world-war, against good advice, Pirojsha Godrej bought 3500 acres of land • Today Pirojshanagar is the largest industrial-residential facility in Mumbai with schools, hospitals and residential apartments • Manufactures locks to oleo chemicals to rock
Slide 7: Beyond Business
BEYOND BUSINESS The Pirojsha Godrej Foundation owns 25% of the holding company • Udayachal Schools • Dr. B.P. Godrej Research Centre at UICT Education • Indian School of Business, Hyderabad • WWF-India & PGNCC Environment • CII – Sohrabji Godrej GBC • Soonabai Pirojsha Godrej Foundation & the Mangro
Slide 8: Some Interesting Facts
SOME INTERESTING FACTS • The Godrej brand touches more Indians on a daily basis than any other Indian owned group or brand today • Godrej sells 6 billion candies a year, that‟s approximately one candy for every man, woman and child on the planet • We produce over 1 billion cakes of soaps a year, and
Slide 9: Godrej Industries Limited
GODREJ INDUSTRIES LIMITED 9
Slide 10: Balanced Portfolio of Businesses
BALANCED PORTFOLIO OF BUSINESSES BUSINESS SEGMENTS FINANCIAL PERFORMANCE • Fatty alcohols, fatty acids, glycerin & surfactants Delta PBIT in FY 10 – Rs 70.88 CHEMICALS • Key ingredients for personal care, home care & Double digit growth in Specialty (own business) specialized consumer products chemi
Slide 11: Leading Market Positions
LEADING MARKET POSITIONS Oleo-chemicals & Surfactants Household insecticides #1 Animal feed Oil Palm plantations Hair color Liquid detergents Soya milk Processed Chicken #2 Soaps #3 Sugar confectionery 11
Slide 12: Our CREATE Strategy
OUR ”CREATE” STRATEGY Consumer & Chemicals Real 4 core businesses Estate Agri Transformation full potential Drive to Emergent Focused incubation of new businesses 12
Slide 13: Consumer (GCPL)
C ONSUMER (GCPL) Largest domestic home & personal care company in India 2nd largest household insecticides company in Asia (ex-Japan) Propositions built on superior quality affordable products Portfolio of 15 leading brands in India, SAARC, Indonesia, South Africa, Argentina, Nigeria and UK
Slide 14: Chemicals
C HEMICALS • Caters to the raw material needs of high growth consumer goods sectors – personal care, home care, tyre industry & specialised applications • Reliable supplier to global MNCs • Leader in India in Oleo-Chemicals; Pioneer in surfactants • Exports to over 62 countries 14
Slide 15: Real Estate
R E EAL STATE GODREJ PROPERTIES • Unique joint development model that is capital efficient , de-risked & generates high return on investment • Expanding presence to high growth cities that will witness strong housing demand • Developing world-class townships that will serve as model cities of future
Slide 16: Agri Businesses
A GRI BUSINESSES • Animal Feed – India‟s largest commercial feed miller; market leader in cattle, poultry and aqua feed • Oil palm plantations – largest oil palm cultivator in India • Poultry – JV with Tyson Foods, the world‟s largest meat processor • Agri inputs – market leader in plant growth regu
Slide 17: GAVL Is a Diversified Agribusiness
GAVL IS A DIVERSIFIED AGRIBUSINESS • With ~1900 employees and total FY2009-10 sales of Rs 1576 crore, Godrej Agrovet Limited (GAVL) has interests in: Animal Oil Palm Poultry (Godrej Agri Feed Plantations Tyson) Inputs • FY2009-10 sales of • FY2009-10 sales of • FY2009-10 sales • FY2009-10 sales of R
Slide 18: Transformation Rationale
T RANSFORMATION RATIONALE • Accelerate value creation trajectory and harness tremendous growth potential • 113 year old company learning to be young again (while preserving core values) • Broaden appeal to younger and more contemporary India • Need to globalize business in FMCG - Emerging markets MN
Slide 19: Transformation Key Elements
T RANSFORMATION KEY ELEMENTS Harness power of Drive innovation Define differentiated Godrej brand mindset employer proposition • Brighter Living positioning • Revamped NPD process • Overhaul of recruiting • Strengthen brand equity • Increased R&D investment • Systematic talent management • Brand ass
Slide 20: Transformation Enablers
T RANSFORMATION ENABLERS Quality of management and aligned incentives • Professional CEOs • EVA based performance linked remuneration • Long term incentives • Robust planning and target setting guided by strategy cell Lean but active center • Fosters sense of Group, culture of cooperation/synergy •
Slide 21: A Great Place to Work
T RANSFORMATION A GREAT PLACE TO WORK 1st GIL in excellence in HR through technology among top 15 Best Employers in India 1st GCPL in FMCG category among 25 Best Employers in Asia 1st GPL in real estate and construction industry among top 100 Best Employers in India 21
Slide 22: Seasoned Management Team
SEASONED MANAGEMENT TEAM Tanya Dubash A Mahendran Adi Godrej Nadir Godrej EDP, Marketing MD GCPL, Director Chairman MD GIL, Chairman Experience -18 yrs GHPL, GHL Experience -46 yrs GAVL Experience -30 yrs Experience -33 yrs Vivek Gambhir Milind Korde Balram Yadav Matthew Eipe Chief Strategy Officer
Slide 23: Track Record of Incubating Businesses
E MERGENT TRACK RECORD OF INCUBATING BUSINESSES ANIMAL FEED BUSINEES (GAVL) • Entered the business in 1970s as adjacency of oil extraction business • Clocked Rs 100 Cr of turnover in 1991 when spun off as separate company • Today it is Rs 1142 Cr business contributing 69% of GAVL‟s PBT HOUSEHOLD INS
Slide 24: Current Incubations
E MERGENT CURRENT INCUBATIONS GODREJ HERSHEY LTD • JV with The Hershey Company, North America‟s leading chocolate manufacturer • FY 2009-10 revenues were Rs 326 Cr • Market leader candy segment with over 20% market share • Hershey‟s Milk Mix sales grew by 82% in FY10; Jumpin sales by 13% • Re-launch
Slide 25: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE 3613 3781 3082 NET PROFIT 2466 203 168 FY 07 FY 08 FY09 FY10 111 REVENUE 59 FY 07 FY 08 FY09 FY10 Due to JVs, restructurings, acquisitions, divestitures, etc. revenue and profit figures are not strictly comparable from year to year. 25
Slide 26: History of Value Creation
HISTORY OF VALUE CREATION A proven track record of value creation 9 year compounded annual growth rate (CAGR) Godrej Industries Ltd. 59% Godrej Consumer… 42% BSE Sensex 21% Note: CAGR calculated on closing rates as of June 18th, 2001 and July 28th, 2010 26
Slide 27: Value Unlocking Potential
VALUE UNLOCKING POTENTIAL 7,000 Other interests 6,000 5654 Animal Feed 5,644 5,000 (FY 2010 Revenue : Rs. 1,142 crore) GPL listed Rs Crore 4,000 GCPL & GPL Oil Palm Plantation 3,000 (FY 2010 Revenue : Rs. 64 crore) 2,000 1,000 Confectionary / Foods GCPL only (FY 2010 Revenue : - Rs. 162 crore) ( for
Slide 28: Q1 Financial Highlights
Q1 FINANCIAL HIGHLIGHTS (CONSOLIDATED) Q1 Q1 Particulars (Rs. Cr.) % Growth 2010-11 2009-2010 Total Income # 1011 780 30% PBDIT * 77 43 79% Depreciation 13 13 Interest 20 24 PBT * 44 6 615% PAT 49 16 198% * Incl. exceptional items but excl. prior period and extraordinary items. # Incl. other income
Slide 29: Business Structure
BUSINESS STRUCTURE GIL Own business Shareholding Chemicals, Estate Mgmt., % Finance & Invt. Godrej Godrej Godrej Godrej Natures Agrovet Consumer Hershey Properties Basket Other Products Investments 43.4% 69.4% 75.2% 23.4% 100% Godrej Household Nutrine Prod. Ltd. Confectionery Various Keyline, Rapido
Slide 30: Shareholding Pattern
SHAREHOLDING PATTERN Category Shares held (nos.) % of holding Promoter holding 251,234,174 79.10% Institutional investors : - Mutual funds & UTI 111,642 0.04% - Banks, financial institutional investors & 13,688,338 4.31% Insurance companies - Foreign Institutional Investors 7,124,628 2.24% Others :
Slide 31: Thank You for Your Time and Consideration
THANK YOU FOR YOUR TIME AND CONSIDERATION 31
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