gil - q1 2009-10 presentation final - 2972009 · 2015-09-23 · gil – q1 2009-10 investor update...

1/25GIL – Q1 2009-10 Investor Update

Q1 2009-10 Investor Update 29th July 2009

Industries Limited


Contents• Key Corporate & Business Updates

• Consolidated Results

Financial Overview

Balance Sheet

• Business Structure

Investments

Performance highlights – Subsidiaries, JVs and Associates


Key Corporate & Business Highlights


Corporate Highlights• Buyback

– Under the buyback programme, as on date, the Company has bought back 21,33,710 shares at a consideration of Rs. 2887 lac. and has completed the buyback. These shares have since been extinguished.

• Scheme of Amalgamation

– The Board of Directors at its meeting held on May 27, 2009, has approved a proposal for the merger of Godrej Hygiene Care Limited (GHCL), a 100% subsidiary of Godrej Industries Limited, into Godrej Consumer Products Limited (GCPL).

– The proposal is subject to the approval of the Hon’able High Court, Bombay.

– The Appointed date of the merger will be June 1, 2009.

– Post merger, GIL will be issued shares in GCPL in lieu of its holding in GHCL.


Corporate Highlights (contd…)

• Godrej Industries Limited has debuted 12th in the “Best Companies to work for in India” survey done by Mercer Consulting and Business Today. This survey ranks companies in India across various industries on how well they manage their Human capital.

• Our philosophy of Brighter Living continues to drive all our endeavors. – A branded reality game-show ‘Godrej Khelo Jeeto Jiyo’ anchored by Bollywood

heartthrob – Soha Ali Khan.

• Godrej “Expert” awarded the ‘Most Trusted Brand 2009’ in the hair dye/hair colour category for the third consecutive year in the Readers Digest Asia Trusted Brands Survey.

• Brand “Godrej” achieved an historic high of 44th rank in the ‘Brand Equity Most Trusted Brands Survey 2009’ conducted by The Nielson Company on behalf of Brand Equity/Economic Times.

– Godrej SaraLee “Good Knight” Brand rose to its historic high by attaining the 21st

rank.

• Regaining the title of India’s highest ranked household care brand.

– Relaunch of Brand “Cinthol” supported by innovative variants to the range helped improve the ranking to 66th.


Consolidated Results


Financial Highlights(Consolidated)

Particulars Q1Q120092009--1010

Q1Q120082008--0909

% Shift

Total Income # 779 867 (10)%

PBDIT * 42 94 (55)%

Depreciation 13 11

Interest 23 19

PBT * 6 64 (90)%

PAT 16 53 (69)%

* - Incl. exceptional items but excl. prior period and extraordinary items.

# Incl. other income and exceptional items.

Rs. crore


Balance Sheet(Consolidated)

Liabilities Assets30-06-09 31-03-09 30-06-09 31-03-09

Capital* 151 150 Net Fixed Assets** 1013 999

Reserves 1368 1371 Investments 691 653

Debt 1705 1574 Net Current Assets 1508 1368

Def. Tax Liability 51 50 Cash & Bank bals. 63 125

Total 3275 3145 Total 3275 3145

Rs. crore

* - Capital includes Minority Interest

** - Net Fixed Assets includes Goodwill on Consolidation


Key Ratios(Consolidated)

* On Average Capital Employed

** Incl. exceptional items but excl. prior period and extraordinary items

Q12009-10

Q12008-9

PBDIT Margins 5.4% 10.8%

PBT Margins ** 0.8% 7.4%

PAT Margins 2.1% 6.1%

ROCE* 3.6% 12.7%

10/30GIL – FY 2008-09 Investor Update

Segment-wise Contribution to Financials – Q1 2009

179

273

98

33

42

11

119

24

Revenue (Rs. crore)

CHEMICALS ANIMAL FEEDS VEGO ILS ESTATE & PRO PERTY DEVELO PMENTHO USHO LD INSECTCIDES BEVERAGES & FO O DS FINANCE & INVESTMENTS O THERS

PBIT

Particulars Rs. croreEstate & Property development

10

Household Insecticides 4Finance & Investments 12Chemicals 14Animal Feeds 9Beverages & Foods (3)Veg Oils 0 ^Others 15

^ less than Rs. 0.5 crore


Performance HighlightsMajor Subsidiaries, JVs and Associates


Business Structure

GIL

Own business

Chemicals, Estate Mgmt. Vegoils, Finance & Invt.

Shareholding

%

Godrej Agrovet

75.2%

Godrej Consumer Products

21.6%

Godrej Hershey43.4%

Godrej Properties

80.3%

Nutrine Confectionery

100%

Godrej Sara Lee

20%

Golden Feed Products

100%

Other Investments

KeylineRapidol

Godrej SCAGGME

Godrej Hygiene Care

100%

Various SPVs

Natures Basket

100%

Godrej Oil Palm

80%

Subsidiaries in India, Bangladesh

and Sri Lanka100%

Cauvery Oil Palm

74%

JVsGodrej Tyson Foods ACI Godrej AgrovetGodrej IJM Palm oil

Godrej Goldcoin Aquafeed


InvestmentsCompany Business Investment at

cost (Rs. Crore)

Holding(%)

Godrej Consumer Products

FMCG, Personal and Household Care Products

495 21.6

Godrej Properties Real Estate and Property Development 185 80.3

Godrej Agrovet Animal Feed, Agri-inputs, Poultry & Oil Palm

163 75.2

Godrej Sara Lee( through 100% subsidiary)

Household Insecticides 47 20.0

Godrej Hershey Food, Beverages and Confectionery 177 43.4

Godrej International International Trading 17 100.0

Others (CBay, Avesthagen, Verseon, Compass etc)

Medical Transcription, Bio- Technology, KPO, BPO, etc.

114 -

Total 1198 -


Other Investments (major)

Company Business Investment at cost (Rs.

Crore)

Holding(%)

CBaySystems Holdings Limited

Medical transcription, Accounts Processing and Patient Financial Services

38 5.3

Verseon Corporation Computer Aided Drug Discovery 15 8.7

Avesthagen Limited Bio – Technology 11 4.4

Boston Analytics Inc KPO 22 18.6

Compass BPO Limited

BPO 2 20.7

Others 26


Overview: The Chemicals division is the market leader in India in Oleo – Chemicals and Surfactants. It exports to about 67 countries and supplies to a wide range of industries including cosmetics, rubber, PVC, pharmaceuticals, etc.

Financial Performance -

Revenue for Q1 FY 2009-10 - Rs. 179 crore.

PBIT increased by 50% from Rs. 9.4 crore in Q1 FY 2008-09 to Rs. 14.2 crore in Q1 2009-10.

Key Highlights –

• Erucic Acid business for Q1 has gone up by 140%.

• Specialty Fatty Acid business for Q1 has gone up by 191%

• Exports account for 36% of the Division’s turnover.

• Sales of surfactants have been very encouraging.

Godrej Chemicals Division (Oleo-chemicals & Surfactants)


Overview: Diversified agribusiness including animal feeds, oil palm plantation, poultry and agricultural inputs.

Financial PerformanceRevenue growth for Q1 2009-10 increased by 9% from Rs.356 crore to Rs. 387 crore.

Animal Feed: GAVL is the leading manufacturer of animal feeds in India.

Key Highlights -• This business includes the production and sale of compound feed for cattle, poultry, shrimp

and fish.

• GAVL operates through 40 production units across India.

• This business undertakes R&D at its dedicated centre. Innovative animal feed products include “Godrej Crumbro” and “Godrej Bypro”.

Godrej Agrovet (GAVL)(Animal Feeds, Agri Inputs, Poultry & Oil Palm)

Poultry: GAVL has a fully integrated poultry business that covers the entire value chain from breeding, hatching, and rearing of broilers. GAVL is also involved in a joint venture with Tyson foods which focuses on the front end of the production process including processing and marketing chilled chicken. This is delivered through the brand “ Godrej Real Good Chicken” and marketing of ready to cook range through the brand “Godrej Yummiez”.

Agri inputs: GAVL has a well established Agri inputs business covering plant growth promoters, organic manure mix, pesticides and other innovative agri input products.


Oil Palm: GAVL is India’s largest crude palm oil producer. The Oil Palm business operates on a command area model, with State Governments allocating specific territories to corporates for the development of oil palm plantations. Growers are required to sell the entire production of Fresh Fruit Bunches (FFB) at a pre-determined price linked to output price set by the Government.

Highlights of the Business

• Currently GAVL have been allocated territories with a potential of over 200,000 hectares of palm plantations. GAVL also has operations in Andhra Pradesh, Goa, Gujarat, Mizoram, Orissa, Tamil Nadu, and Karnataka. Total area under cultivation is about 33,000 hectares of which about 10,000 hectares are bearing fruits and about 23,000 hectares are under growing stage.

• Additional area brought under cultivation during FY 2008-09 is about 9,250 hectares.

• The size of the allotments reflects the strengths of GAVL, including a strong brand, reputation amongst farmers and excellent service.

• An integrated process: GAVL makes complete use of the fruit bunch. Waste from the oil extraction process is used as fuel to power plants and factories.

• Oil palm plantations have a three year gestation period. Currently multiple projects have been initiated and are at different stages of development. As greater acreage under development achieves production maturity, the business is expected to grow exponentially.

Godrej Agrovet (GAVL) (contd…)(Animal Feeds, Agri Inputs, Poultry & Oil Palm)


Overview: Leading manufacturer of soaps and hair colour categories, and owns various well known brands, such as Cinthol, Fairglow, No. 1, Ezee, Colour Soft and Renew.

Key Highlights: GCPL continues to be the second largest toilet soap player.

• Launched new range of products : – Under the brand “Godrej No. 1’ – a new variant Lime and Aloe Vera for fresh, soft skin, totalling to 8

variants under the brand.

– Under “Cinthol” brand – two new deo sprays ‘Rainstorm’ – a contemporary aquatic fragrance with undertones of lemon and bergamot and ‘Unleash’ – a spicy woody fragrance built on a base of cedar wood, with a touch of leather.

• Relaunched new range of products :– “Godrej Nupur Mehendi” in a new and improved formulation including nine natural herbs valued for

hair care benefits.

• ICRA has reaffirmed the CGR2+ rating to the corporate Governance Practices of the company. The rating denotes that the company has adopted and follows such practices, conventions and codes as would provide its financial stakeholders a high level of assurance on the quality of corporate governance.

• ICRA has reaffirmed the SVG1 rating for Stakeholders Value Creation and Governance practices of the company. This rating implies that the company belong to the Highest Category on the composite parameters of stakeholder value creation and management as also corporate governance practices.

Godrej Consumer Products (GCPL)(FMCG – personal and household care)


Key Highlights (contd…) :

• First Interim dividend declared – Re. 1 per share (i.e. 100%) for FY 2009-10.

• GCPL has debuted at No. 1 in India’s Best Companies to Work for 2009 in the FMCG category and 15th in overall ranking.

– Survey conducted by Economic Times and Great Places to Work Institute India .

• Ranked among the top 25 Best Employer in Asia & 11th Best Employer in India – Hewitt Best Employers in India, 2009 study.

• Ranked 6th in the ‘Best Companies to Work for in India’ survey conducted by Mercer Consulting and Business Today.

• GCPL has approved the proposed acquisition of 49% stake in Godrej SaraLee Limited through merger of 100% subsidiaries of Godrej Industries Limited and Godrej & Boyce Mfg. Co. Ltd. The scheme is pending with High Court for approval.

Financial Performance:

• Consolidated Revenue for Q1 FY 2009-10 increased by 21% to Rs. 439 crore from Rs. 362 crore.

• Consolidated PBT for Q1 FY 2009-10 up by 80% to Rs. 88 crore from Rs. 49 crore.

• Consolidated PAT for Q1 FY 2009-10 grew by 78% to Rs. 70 crore from Rs. 39 crore.

• EPS (not annualised) for Q1 2009-10 - Rs. 2.7 compared to Rs. 1.62.

Godrej Consumer Products (GCPL) (contd…)(FMCG – personal and household care)


Overview: GPL is one of the leading real estate development companies in India. The Company focuses on residential, commercial and township developments. As per the Draft Red herring Prospectus dated May 28th 2008 filed with SEBI, GPL has real estate development projects in 11 cities in India which are Mumbai, Pune, Bangalore, Kolkata, Hyderabad, Chandigarh, Greater Noida, Ahmedabad, Mangalore, Chennai and Kochi.

Business Strategy : GPL employs a three pronged business strategy as follows:

• Joint ventures with land owners which are either on a developable area, profit or revenue sharing basis.

• Selective buying of land, developing and selling property.

• Joint ventures with group companies. GPL has signed MOUs with group companies under which GPL may develop their lands situated in various parts of India.

This business model enables GPL to undertake more projects without having to invest large amounts of money towards purchasing of land.

GIL currently holds 80.3% equity in GPL.

Godrej Properties (GPL) (Real Estate and Property Development)


Business Highlights: • GPL has inked an MOU with the Ahmedabad Municipal Corporation for the development

project - “Godrej Garden City”.

– This would be a project under the Clinton Climate Initiative launched by Mr. Bill Clinton, to demonstrate that large scale urban projects can be ‘climate positive’.

– The project would strive to reduce the amount of on-site CO2 emission below zero.

• GPL has debuted at No. 1 in India’s Best Companies to Work for 2009 in the Construction & Real Estate Industry.

– Study conducted by Economic Times and Great Places to Work Institute, India.

• Well diversified portfolio spread across established Tier I and emerging Tier II and III locations.

Financial Highlights:• Consolidated revenue increased by 10% to Rs. 250 crore in FY 2009 from Rs. 225 crore in

FY 2008.

• Consolidated Net profit grew by 20% to Rs. 75 crore from Rs. 62 crore.Note: “GPL is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with SEBI. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs at www.icicisecurities.com andwww.kotak.com.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the aforementioned Draft Red Herring Prospectus.”

Godrej Properties (GPL) (contd…) (Real Estate and Property Development)


Godrej Hershey Limited (GHL) (Foods, Beverages, confectionery businesses)

Overview: Production and sale of fruit pulp, tomato puree, fruit juices, nectars and drinks, other beverages and confectionary products and sale of refined vegetable oils and vanaspati (hydrogenated vegetable oil).

Key Highlights:

Core categories (Beverages and Confectionery) grew by 17%.

New Products launched / initiatives taken during the year:

• Innovations – “ Nutrine Santra Goli” and “ Nutrine Eclairs (cream center)” and 'Maha Choco’

– These now contribute about 13% of sales.

• Significant progress with distribution of ‘Made in India’ Hershey Chocolate syrup.

Financial Performance:

• Jumpin sales for Q1 FY 2009-10 increased by 24%.

• Hershey Milk Mix sales for Q1 FY 2009-10 higher by 63%.

• Fruit Juices segment sales for Q1 FY 2009-10 up by 42%.


Godrej Sara Lee (GSLL) (Household Insecticides, Hair care, Air care, Shoe care & Surface care)

Overview: Household insecticides business which includes the production and sale of household insecticides, Air care, Shoe care & Surface care.Key Highlights

• “Good Knight” Brand recorded a revenue growth of 23% during the quarter.– Accredited Superbrand status for the 3rd consecutive year.– Accredited No 21 in the Brand Equity Most Trusted Brands 2009 survey by Brand

Equity/Economic Times.– GoodKnight Active Plus accorded “Product of the Year” in Insect Repellant Category.

• “HIT” Brand recorded a revenue growth of 36% during the quarter and was : – Voted ‘Trusted Brand 2009’ in the Household Insecticide industry and in an independent

consumer survey conducted by Reader’s Digest.• The new products launched in FY 2009 saw good response.

– Brylcreem Hybridz– Good Knight

Advanced Low Smoke CoilAdvanced Aerosol

– Ambipur Aromatherapy – Lavendar Spa and White Lilies spray endorsed by popular Bollywood star and youth icon Soha Ali Khan


Godrej Sara Lee (GSLL) (Household Insecticides, Hair care, Air care, Shoe care & Surface care)

Financial Performance :• Consolidated Q1 FY 2009-10 revenue growth of 15%.• Consolidated Q1 FY 2009-10 PAT growth of 28%.• Aerosols segment grew by 47% yoy.• Coils segment sales up by 23% yoy.• Ambipur brand grew by 14% yoy.


Thank You

Some of the statements in this communication may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include changes in industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.

gil - q1 2009-10 presentation final - 2972009 · 2015-09-23 · gil – q1 2009-10 investor update...

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