gil - q4 fy2009 - consol - 2752009- final€¦ · financial overview ... • hewlett – packard...

1/30GIL – FY 2008-09 Investor Update

FY 2008-09 Investor Update 27th May 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

• Global recognition for innovation – Businessweek’s list of top ‘unsung innovators’

– Selected amongst five Indian companies to be stars of the future globally.

– Customer-relationship software acknowledged as an innovation breakthrough.

• GIL has achieved an overall ranking of 155 in Economic Times’ ET 500 survey (Oct 2008) and is amongst the top 100 wealth creators.

• 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.

• 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


Corporate Highlights (contd….)

• GIL has been accredited with ISO 27001 for its Information Security Management System by M/s. BSI, a global certifying agency.

• ICRA assigned credit ratings for Lines of Credit (LOC) as under:

– Commercial Paper : A1+ (limits enhanced to Rs. 100 cr.)

– Short Term LOC : A1+

(Highest credit-quality carrying lowest credit risk)

– Long Term LOC : LAA

(Long term LOC ratings indicate high – credit quality carrying low credit risk).

• GIL has commenced Fixed Deposit Scheme for the public for 13, 24, and 36 month tenures.

• Hewlett – Packard India has been selected as partners for implementing comprehensive, strategic IT sourcing and transformation project that would include infrastructure solutions, SAP application services, consulting and outsourced services.


Corporate Highlights (contd…)

• Sale of Godrej Global Solutions Limited (BPO in healthcare, finance and accounting) to Tricom India Limited.

• Sale of 100% stake in Godrej Hicare Limited to ISS Facility Services India Pvt. Ltd. (ISS). ISS is a part of ISS A/S Group which is one of the world’s largest facility services provider.

• Final Dividend proposed for FY 2008-09 is Rs. 1.25 per equity share of Re. 1/-each (previous year Rs. 1.25 per equity share of Re .1/- each)



Corporate Social Responsibility

• In keeping the Group’s endeavour to build socially responsible sustainable businesses, GIL has signed the CII code for Ecologically sustainable business growth by committing to save natural resources and protecting the environment in pursuit of business growth.

• GIL has contributed and supported various causes and initiatives in the areas such as health, medical care and treatment, education, social awareness on health, environment and social welfare.

• Contribution towards Bihar Relief : Employees have contributed one days’ salary to Prime Ministers Fund towards relief for flood stricken Bihar State. An equal amount has also been contributed by the Company.



Corporate Social Responsibility (contd…)

• In our efforts for betterment of the environment and conservation of natural resources:

– 8500 sq. mtrs. of roof area has been covered under the ‘ Rain water harvesting’ initiative undertaken at our factory and staff quarters at Vikhroli.

– Undertook recharging of two bore-well with rainwater.

– Shredding machine was installed at Vikhroli factory to convert the bio-degradable waste into bio-compost with the help on an NGO.

– Developed new irrigation network at Valia factory and planted 3000 saplings.

– Upgraded Effluent Drainage System carrying effluent plants. Efforts are made to convert waste from the factories into an environment friendly product.


Consolidated Results


Financial Highlights(Consolidated)

Particulars FY2009FY2009 FY2008FY2008 % Shift

Total Income # 3564 3082 16

PBDIT * 278 336 (17)

Depreciation 47 51

Interest 100 75

PBT * 131 210 (38)

PAT 111 168 (34)

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

# Incl. other income and exceptional items.

Rs. crore


Balance Sheet(Consolidated)

Liabilities Assets31-03-09 31-03-08 31-03-09 31-03-08

Capital* 150 131 Net Fixed Assets** 999 1055

Reserves 1371 1323 Investments 653 218

Debt 1574 1050 Net Current Assets 1368 918

Def. Tax Liability 50 52 Cash & Bank bals. 125 365

Total 3145 2556 Total 3145 2556

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

FY2009(%)

FY 2008 (%)

PBDIT Margins 7.8 10.8

PBT Margins ** 3.7 6.8

PAT Margins 3.1 5.4

ROCE* 8.1 14.2


Segment-wise Contribution to Financials – FY2009

778

982

538

195

177

105

518

271

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

124

Household Insecticides 32Finance & Investments 105Chemicals (18)Animal Feeds 30Beverages & Foods (3)Veg Oils 0 ^Others 63

^ 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 Hershey

43%

Godrej Properties

80.3%

NutrineConfectionery

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

51%

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

492 21.6

Godrej Properties Real Estate and Property Development 185 80.3

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

163 75.2

Godrej Sara Lee( through 100% subsidiary)

Household Insecticides 47 20.0

Godrej Hershey Food, Beverages and Confectionary 177 43.0

Godrej International International Trading 17 100.0

Others (CBay, Avesthagen, Verseon, Compass etc)

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

114 -

Total 1195 -


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


Godrej’s New Brand Identity InitiativeGroup marketing and branding strategy to enhance strategic focus on Consumers and BrandsGodrej worked with Interbrand, world’s leading branding consultants, to study Godrej brands across employees, consumers, investors and business partners and redefine its approach to harnessing the brand’s intrinsic strengths

• New Corporate identity unveiled recently. Each Godrej color connotes:

• Green : Growth, harmony with nature and renewed life

• Blue : Big ideas, blue sky thinking, technology and innovation

• Ruby : Passion, indulgence, energy and dynamism

• Creating a contemporary and aspirational lifestyle brand by repositioning the Master Brand around the promise of BRIGHTER LIVING

•The initial phase of the initiative will build the Godrej Master Brand in tandem with the four businesses of personal grooming, furniture, property and aerospace.


Overview: The Chemicals division is the market leader in India in Oleo – Chemicals and Surfactants. It exports to over 65 countries and supplies to a wide range of industries including cosmetics, rubber, PVC, pharmaceuticals, etc.

Financial Performance -

Consolidated FY 2008-09 revenue increased by 12% to Rs. 778 crore from Rs. 692 crore.

Key Highlights –

• Unprecedented rapid crash in commodity prices, steep depreciation in Rupee vis-à-vis Dollar, curtailment in the supplies of natural gas and depressed demand owing to global recession has affected business performance.

• Developed a new variant of Fatty Alcohol approved by leading overseas customers

• Erucic Acid business has gone up by 115% yoy.

• Specialty Fatty Acid business has gone up by 336%

• Exports increased by 7% for FY 2008-09

• Exporting to more than 65 countries.

• Exports account for 41% of the Division’s turnover.

Godrej Chemicals Division (Oleo-chemicals & Surfactants)


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

Financial Performance

Consolidated FY 2009 revenue growth of 15% from Rs. 1298 crore to Rs.1493 crore.

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

Highlights of the Business

• This business includes the production and sale of compound feed for cattle, poultry, shrimp and fish.

• New products launched :

– premium high fat high milk yielding compound feed re-launched under the Brand “Bovino”.

– 10% starter and 10% finisher concentrate introduced in broiler feed for small broiler integrators under the name “HPBC”.

• 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”.

• Strategic linkages for sourcing, focus on quality, cost control have yielded good results.

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


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 170,000 hectares of palm plantations and have recently been awarded additional areas in Gujarat. GAVL also has operations in Andhra Pradesh, Goa, Mizoram, Orissa, Tamil Nadu, and Karnataka. Total area under cultivation as on 31st March 2009 is about 25000 hectares of which about 6800 hectares bearing fruits and about 18200 hectares under growing stage.

• Additional area brought under cultivation during FY 2008-09 is about 7100 hectares (previous year about 5300 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) (Animal Feeds, Agri Inputs, Poultry, Oil Palm & Rural Retailing)


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”.

New products launched :

– Veg Pizza pockets – a ready-to-cook snack with an authentic Italian Pizza receipe under the brand ‘Yummiez’.

– Crispy Onion rings – a ready-to-cook snack with an authentic American style receipe and flavour under the brand ‘Yummiez’..

– ‘Curry cut’ under Real Good Chicken brand.

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

New products launched :

– “Hitweed”, a herbicide

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


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 : – “Cinthol Fresh Aqua” under the Cinthol brand.

– New variant of soap “Godrej No. 1 – Strawberry and Walnut” for the first time a combination of strawberry, walnut and milk cream.

– Hair colours under ‘Godrej Expert Hair Colour’ brand in powder and liquids.

– New range of liquid detergent, Ezee Bright and Soft.

– New range of Cinthol Deo Sprays endorsed by popular Bollywood star and youth icon Hrithik Roshan.

• Relaunched new range of products :– “Godrej FairGlow” in a new and improved packaging in three new fragrances – Floral Essence, Rose

Wonder and Lily Sensation

– Keyline brands relaunched Riemann range of Perspirex products.

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


Key Highlights (contd…) :

• Fourth Interim dividend declared – 75% and proposed Final dividend – 75% taking the total to 400% for FY 2008-09.

• 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.

Financial Performance:

• Consolidated FY 2008-09 revenue increased by 26% to Rs. 1393 crore from Rs. 1103 crore.

• Consolidated PBT FY 2008-09 up by 12% from Rs.188 crore to Rs. 209 crore.

• EPS for FY 2008-09 - Rs. 6.80

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 shall 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 one of the founding projects under the Clinton Climate Initiative launched by President 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.

• 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. 228 crore in

FY 2008.

• Consolidated Net profit grew by 20% to Rs. 75 crore in FY 2009 from Rs. 62 crore in FY 2008.

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:

'Maha Choco’, the new hard boiled candy became the third largest product in the confectionary portfolio.

New Products launched / initiatives taken during the year:

• New candy products – “ Nutrine Santra Goli” and “ Nutrine Eclairs ( cream center)”

• The new 'Maha Choco’ candy was rolled out with media campaign featuring Brand Ambassador, M S Dhoni which has received good response from consumers. GHL has also upgraded the packaging and presentation of the confectionery to make it look more attractive.

• Launched “Back of School” confectionery gift packs and lower price point packs.

• Ramped up the sales of Health drink Hershey Milikmix, Sofit and new mix of Nutrine Eclairs.

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


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

Financial Performance:

• Consolidated Revenue growth of 24% yoy from Rs. 335 crore to Rs. 415 crore

• Confectionery sales increased by 25% yoy.

• Beverages sales higher by 45% yoy.

• Pulp & Processing segment sales up by 43% yoy.


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

• “HIT” Brand under the Aerosol segment crossed Rs. 150 crore mark in FY 2008-09. – Voted ‘Trusted Brand 2009’ in the Household Insecticide industry and in an independent

consumer survey conducted by Reader’s Digest.• New products launched during the year :

– Brylcreem Hybridz– Good Knight

Advanced Low Smoke Coil Advanced Aerosol

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

• New Television communications for Good Knight Aerosol won international accolades.• Aerosols segment grew by 20% yoy.• HIT segment increased by 15% yoy.• Good Knight Brand sales up by 10% yoy.

Financial Performance :• Consolidated FY 2008-09 revenue growth of 16% from Rs. 665 crore to Rs.771 crore.• Consolidated FY 2008-09 PAT growth of 19% from Rs. 87 crore to Rs. 104 crore.


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 - q4 fy2009 - consol - 2752009- final€¦ · financial overview ... • hewlett – packard...

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