godrej
TRANSCRIPT
ASSIGNMENT
ON
GODREJ GROUP
SUBMITTED TO SUBMITTED BY:
Ms. Sukhjinder Baring Amanpreet Kaur
MBA 1C
INTRODUCTION TO CORPORATE
Godrej Group consists of two corporate entities:
1. Godrej Consumer Products
2. Godrej Industries.
Godrej Industries Ltd. (GIL) is India's leading manufacturer of oleo-chemicals and makes
more than a hundred chemicals for use in over two dozen industries. It also has a major
presence in food products such as refined oil and tetra pack fruit beverages. Besides, it
operates businesses in medical diagnostics and real estate.
Besides its three businesses, Godrej Industries also runs four divisions — Corporate
Finance, Corporate HR, Corporate Audit and Assurance and Research and Development
— which operate on behalf of the entire Godrej Group.
GIL has built a strong manufacturing base capable of delivering international quality
products at competitive prices. It operates two plants, one at Valia in the Indian state of
Gujarat and a second at Vikhroli in suburban Mumbai. The company's products are
exported to 40 countries in North and South America, Asia, Europe, Australia and Africa,
and it leads the Indian market in the production of fatty acids, fatty alcohols and AOS.
Godrej Consumer Products (GCPL) is a leader among India's Fast Moving Consumer
Goods (FMCG) companies, with leading Household and Personal Care Products like
Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fair glow, Ezee, Protekt and
Snuggy. It is one of the largest marketers of toilet soaps in the country and is also leaders
in hair colours and household insecticides. Each company has several SBU’s, divisions
and factories. They are presently exporting their products to 30 countries.
HISTORY OF GODREJ GROUP
Started in 1897 as a lock manufacturing company, the Godrej Group is today one of the
most accomplished and diversified business houses in India. Godrej's success has been
driven by the company's commitment to delivering innovation and excellence. Through
the consistent application of this commitment and a century of ethical business conduct,
Godrej has earned an unparalleled reputation for trust and reliability.
In 1930, Godrej became the first company in the world to develop the technology to
manufacture soap with vegetable oils; that spirit of innovation has continued throughout
the organization's history. Today Godrej is delivering consumers exciting innovations
across a spectrum of businesses. The company's pursuit of excellence is equally well
established and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only
security equipment whose contents were unharmed; an equal level of product quality
continues to be expected from every product bearing the Godrej brand name. Godrej
management understands that the company's greatest asset is the trust and faith that
consumers have reposed in it, and recognizes that the company must continue to earn this
trust. This translates to the organization delivering outstanding quality and value in
everything it does.
Godrej's ethical and visionary practices have allowed the company to successfully expand
into a number of businesses. Today Godrej is a leading manufacturer of goods and
provider of services in a multitude of categories: home appliances, consumer durables,
consumer products, industrial products, and agri products to name a few. A recent
estimate suggested that 350 million people across India use Godrej products. The group
has more recently entered the real estate and information technology sectors, and
management views these as avenues for enormous growth.
The Godrej Group stands in a strong position today. With annual sales in excess of $1
billion, a workforce of approximately 18,000, and a strong diversified portfolio, Godrej
has proven its ability to deliver strong financial performance.
The Godrej Group
The Godrej Group has interests in a wide range of businesses. Apart from GCPL, the
major companies in the Group include:-
Godrej & Boyce Manufacturing Co. Ltd. – a leading manufacturer of office and home
Equipment including appliances, furniture, locks, security equipment, storage solutions
and Industrial equipment.
Godrej Industries Ltd. – a leading manufacturer of oleo chemicals that are used in more
than two dozen industries. The Company also has a presence in the foods business.
Godrej Agro vet Ltd. – the market leader in animal feeds and innovative agri products
in India. The Company also has a presence in the branded poultry, rural retailing and oil
palm sectors.
Godrej International Ltd. – engaged in international trading.
Godrej Sara Lee Ltd. – a joint venture with Sara Lee Corporation, USA and a leading
Manufacturer of household insecticides.
Geometric Ltd. – a specialist in Product Lifecycle management software solutions for
the Mechanical design, manufacture and industrial markets.
Godrej Properties Ltd. - a leading developer of residential and commercial premises.
Godrej Hershey Ltd. – markets juices, fruit drinks, soya milk based drinks, edible oil
and Packaged tea. In FY 2006, GBFL has acquired 100 percent stake in ‘Nutrine
Confectionery Company Pvt. Ltd.’ (Nutrine). In April 2007, the companies entered into a
joint venture with the Hershey Company, North America’s leading chocolate and
confectionery manufacturer, to Manufacture and distribute confectionery, snacks and
beverages across India. Being part of the Godrej Group allows Godrej Consumer
Products to draw upon the rich heritage and experience of the Group. In line with
GCPL’s vision and long-term business objectives, all corporate Decisions are
independently taken by the Company’s highly respected Board in conjunction with
competent management teams, keeping in view the best interest of all its stakeholders.
Godrej and Boyce
From locks to appliances. From furniture to conferencing equipment. From security
solutions to material handling. There isn't a category through which Godrej & Boyce
don't enrich life. They are a part of your life in many ways.
Godrej Consumer Products
As far as personal, hair, household and fabric care segments are concerned, Godrej is far
the market leaders. And this has been possible only due to their constant endeavor of
trying to provide customers with innovative, value for money solutions for their daily
needs.
Godrej Industries
Godrej Industries Ltd. is India's leading manufacturer of oleo chemicals and makes more
than a hundred chemicals used in over two dozen industries. It has a major presence in
food products such as refined oil and tetra pack fruit beverages.
Geometric Software Solutions
Geometric Software Solutions is a CMMI Level 5 company and the leading PLM
services provider with over 19 years of experience in CAD/CAM/CAE, PDM and MPM.
Godrej InfoTech
Godrej InfoTech is a CMM Level-4 company in the business of developing customized
software solutions and implementing ERP, CRM, and SCM software. Navision, Axapta,
Baan and encompass - an ERP from Godrej InfoTech, are uniquely positioned to address
Industry needs.
Godrej Sara lee
Godrej Sara Lee is a joint venture company between the Godrej Group, India and Sara
Lee Corporation, USA. They are the world's largest manufacturers of home insecticides.
The company is committed to the research and manufacture of quality household
insecticides, and holds a substantial market share.
Godrej Efacec
Godrej Efacec provides the latest warehousing or automated storage or retrieval system
solutions to the customers they give the best of - Technology from Efacec and quality
from Godrej.
Godrej Products
BRANCHES (SALES & SERVICE) AND BRANDED RETAIL CHAIN (GODREJ
LIFESPACE)
· MUMBAI, Ahmadabad, Bhopal, Dombivli, Indore, Jabalpur, Pune, Raipur, Thane
· NEW DELHI, Chandigarh, Faridabad, Ghaziabad, Gurgoan, Jaipur, Jalandhar, Jammu,
· Kanpur, Luck now, Noida
· CHENNAI, Bangalore, Coimbatore, Hyderabad, Kochi, Secunderabad, Trivandrum,
Visakhapatnam
· KOLKATA, Bhubaneswar, Guwahati, Ranchi, Patna
· The Company has a network of 48 Company-owned Godrej Lifespace Retail Stores,
more than 2,200 Wholesale Dealers, and more than 18,000 Retail Outlets.
The Company has Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo
(SriLanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC).
CORPORATE INFORMATION
BOARD OF DIRECTORS
The Board of Directors of the Company comprises thirteen Directors, which includes one
Managing Director : Mr. N. B. Godrej
Two Whole-time Executive Directors .: Ms. T.A. Dubash and Mr. M. Eipe.
The remaining ten are Non-Executive Directors, with seven of them being Independent
Directors. On
NON-EXECUTIVE DIRECTORS
Mr. A.B. Godrej
Mr. S.A. Ahmadullah
Mr. J. S. Bilimoria
Mr. V.M. Crishna
Mr. K.K. Dastur
Mr. N.D. Forbes
Mr. V.N. Gogate
Mr. A.B. Choudhury
Mr. K.N. Petigara
Mr. F.P. Sarkari
VISION
Godrej is dedicated to deliver superior stakeholder value by providing solutions to
existing and emerging consumer needs in the household & personal care Business. We
will achieve this through enduring trust & relentless innovation Delivered with
passion & entrepreneurial spirit.”
In conjunction with Company’s vision for “brighter living” for all its stakeholders, it has
developed a long-term vision for playing an active part in creating a more inclusive and
greener India. This vision has been named “Godrej Good & Green”.
MISSION
Godrej’s Mission is to operate in existing and new businesses which capitalize on the
Godrej brand and our corporate image of reliability and integrity .Our objective is to
delight our customer both in India and abroad.
We shall achieve this objective through continuous improvement in quality; cost and
Customer service .We shall strive for excellence by nurturing, developing and
empowering our employees and suppliers.
We shall encourage an open atmosphere conducive to learning and team work.
OBJECTIVES OF GODREJ GROUP
Over the last year, through an even more strategic approach to corporate social
responsibility, the Godrej Group has re-looked at how it can drive more meaningful
impact and further its commitment through shared value initiatives that create both social
and business benefits.
The Group aspires by 2020:-
1. To create a more employable Indian workforce
2. A greener India
3. Innovate for good and green products.
Specifically, goals for 2020 as part of “Godrej Good & Green” vision are:
• Training 1 million rural and urban youth in skilled employment
• Achieving zero waste, carbon neutrality, positive water balance and a 30%
renewable energy source
• Having a third of portfolio revenues comprising of good and/or green products and
services – defined as products that are environmentally superior or address a critical
social issue (e.g., health, sanitation, disease prevention) for consumers at the bottom of
the income pyramid The Good and Green vision and continued execution towards that
vision will be a strong focus for the Company going forward.
Objectives of Godrej Consumer Products Limited
1. Leverage and enhance the Godrej brand name and that of our brands.
One of our key strengths is being part of the Godrej group of companies and the strong
brand equity generated by the “Godrej” brand name. We believe that the Godrej brand
commands a recall amongst the consumers in India due to its image and goodwill
established over the years. We intend to leverage the brand equity that we enjoy as a
result of our relationship with the Godrej group of companies. Also, we plan to leverage
our existing brands, which have good recall with customers to introduce a wider range of
products. For example, we have leveraged our ‘Cinthol’ soaps brand to manufacture and
sell ‘Cinthol’ deodorants and ‘Cinthol’ talcum powder.
2. Focus on enhancing our sales and distribution network within the domestic
market
The Company has been focusing on consolidating its network of distributors in bigger
towns. We have a distributor in almost every major town in India. We believe that this
helps us to increase the availability of our products which in turn creates more awareness
for the products and improve the acceptance of new products.
The Company has created a network of super stockists and sub-stockists to tap the
opportunity in smaller towns and villages. Certain products like ‘Godrej Powder Hair
Dye’ sachet, 50 gram variants of soaps fulfill the needs of consumers in such territories
very well and in turn strengthen the distribution network in such areas.
We intend to increase our penetration in the Personal and Household Care segment. We
plan to achieve this through growth of our customer base and enlargement of our product
portfolio. We already sell certain products under different brand names which enables us
to target different socio-economic consumer segments. We also aim to provide an
improving level of service to our network of dealers and distributors, for example by
providing more frequent deliveries in order to reduce the dealers' inventory levels and
therefore their costs and incentivise them to promote our products.
3. To grow and expand our market share through organic growth
Our toilet soaps category has been outperforming the industry consistently and it grew by
21.00% in FY 09-10 (industry growth at 7.70%) during the same period the market share
of toilet soaps increased to 9.10% in FY 06-07 from 8.50% in the previous year.
Currently, the market share of toilet soaps is at 10.20% (2010-2011).
The hair color and toiletries categories grew by 12% and 20% respectively in FY 10-11
as compared to the previous year.
Towards this end we intend to focus on:
a. Value for money offerings; and
b. Unique variants of soaps like Godrej No 1 in ‘papaya and lotus’ variant.
4. To accelerate growth and expand our international presence through strategic
acquisitions and partnerships
While continuing to maintain growth momentum in the current territories, we intend to
explore expansion into new markets as well. We plan to continue to acquire
companies/businesses in the ‘personal and household care’ segment’ in India and
internationally. We have gained experience through our previous acquisitions and joint
ventures with established operators in foreign markets. We will evaluate any business
opportunities that arise in Indian and international markets and aim to harness our
experience of acquiring and integrating new markets with our current operations. We
intend to use a part of the proceeds towards entering into certain strategic acquisitions.
5. Continue to upgrade and modernize our plants and facilities to manufacture and
supply products at a low cost.
We currently operate five manufacturing facilities in India at Malanpur (Madhya
Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha
(Himachal Pradesh) and Sikkim. Further, our manufacturing facilities located abroad at
South Africa produce a range of personal care products and hair color products. We will
continue to maintain efficient manufacturing facilities for a consistent the quality of our
products and to reduce our operational costs. We focus on management of our logistics,
supply chain and distribution functions, which enables us to service our customers better.
Objectives Godrej Properties Limited
The following are the key objectives of business:
1. Enhance and leverage the Godrej brand and the group resources
We believe that our customers and consumers perceive the Godrej brand to be that of a
quality provider of products and services. We believe that the strength of the Godrej
brand and its association with quality and reliability help us in many aspects of our
business, including land sourcing, expanding into new cities, entering into business
associations, and providing relationships with our service providers, investors, lenders
and customers. In addition, our association with the Godrej group helps us leverage group
resources and initiatives across functions, such as human resources and marketing. For
example, we are actively involved in a group-wide branding initiative currently being
conducted by Interbrand, a London-based brand consultant, in which our Company has
been identified, along with personal grooming, furniture and aerospace divisions, as one
of the “hero” businesses of the group. We intend to leverage the brand equity that we
enjoy as a result of our relationship with the Godrej group of companies to expand our
business.
2. Expansion across India
We currently have a presence in 11 cities across India. We intend to expand our
operations in these cities, as well as into other cities in India, which we believe have the
potential for growth. The economic growth in these cities will result in higher disposable
incomes in the middle and higher income groups, which, in turn, will result in increased
demand for residential housing, as well as high quality retail and commercial space. We
recognize that continuing to build on our land reserves in our existing markets is critical
to our growth strategy.
Additionally, we have either acquired or are in the process of acquiring development
rights in various cities such as Mangalore, Chennai, Ahmedabad, Chandigarh, Kochi and
Greater Noida, for residential, commercial and integrated township projects. We also,
from time to time explore new development opportunities. For example, we have
submitted expressions of interest, as a part of a consortium, for the redevelopment of
certain land in the Mumbai Metropolitan region. We cannot assure you that we will
procure this bid on terms acceptable to us or at all.
3. Selective outsourcing
We intend to increase the scale of our operations while ensuring quality and efficiency in
our operations.
Selective outsourcing enables us to undertake more developments and source best-in-
class service providers, while optimally utilizing our resources. We intend to continue to
outsource activities such as design, architecture and construction. We also consider turn-
key contracts for project execution and partnering with international property consultants
to market our IT parks. We intend to enhance and leverage our existing relationships with
leading real estate service providers.
4. Focus on our execution
We have expanded the scope and scale of our operations. We recognize the importance of
delivering quality projects on a timely basis and within the estimated budget. We have
implemented several initiatives and processes to enhance our execution capabilities
including by engaging Goldratt Consulting in implementing their “Theory of Constraints”
along with CCPM. See “– Our Strengths – Execution methodology” above for details on
CCPM.
We have also entered into a memorandum of understanding with Larsen & Toubro
Limited for its appointment as a contractor for the development of some of our future
projects and we will continue to work with other leading third party service providers for
activities related to design, project management, cost and quality control and contracting.
Godrej Industries runs four divisions —
1. Corporate Finance
2. Corporate HR
3. Corporate Audit and Assurance
4. Research and Development
ACCOUNTING POLICY
1 Accounting Convention
The financial statements are prepared under the historical cost Convention, on the accrual
basis of accounting, in accordance with the generally accepted accounting principles in
India, the Accounting Standards prescribed in the Companies (Accounting Standard)
Rules, 2006 and the relevant provisions of the Companies Act, 1956.
2 Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires the management to make estimates and assumptions that affect the
reported balances of assets and liabilities as of the date of the financial statements and
reported amounts of income and expenses during the period. Management believes that
the estimates used in the preparation of financial statements are prudent and reasonable.
Actual results could differ from the estimates.
3 Fixed Assets
Fixed Assets are stated at cost or as revalued as the case may be, less accumulated
depreciation. Cost includes expenses related to acquisition and any directly attributable
cost of bringing the assets to its intended working condition.
Fixed Assets acquired under finance lease are capitalized at the lower of their face value
and present value of the minimum lease payments.
4 Intangible Assets
Intangible assets are stated at cost of acquisition less accumulated amortization. The cost
of acquisition of trade marks is amortized equally over a period of ten years. Computer
software is amortized over a period of six years on the straight line method.
5. Impairment of Assets
The Company reviews the carrying amounts of tangible and intangible assets for any
possible impairment at each balance sheet date. An impairment loss is recognized when
the carrying amount of an asset exceeds its recoverable amount. Impairment loss, if any,
is recognized in the period in which impairment takes place.
6 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition / construction of the
qualifying asset are capitalized as a part of the cost of such asset, up to the date of
acquisition / completion of construction.
7 Investments
Investments are classified into long-term and current investments. Long term
investments are carried at cost. Provision for diminution, if any, in the value of each long
term investment is made to recognize a decline, other than of a temporary nature. The fair
value of a long term investment is ascertained with reference to its market value, the
investor’s assets and results and the expected cash flows from the investment.
Current investments are stated at lower of cost and fair value.
8 Inventories
Inventories are valued at lower of cost and net realisable value. Cost is computed on
weighted average basis and is net of cenvat. Finished goods and work in progress include
cost of conversion and other costs incurred in bringing the inventories to their present
location and condition. Provision is made for the cost of obsolescence and other
anticipated losses, wherever considered necessary.
9 Provisions and Contingent Liabilities
Provisions are recognized in the accounts in respect of present probable obligations, the
amount of which can be reliably estimated. Contingent Liabilities are disclosed in respect
of possible obligations that arise from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future events not wholly within
the control of the Company.
10 Foreign Exchange Transactions
(i) Transactions in foreign currency are recorded at exchange rates prevailing on the day
of the transaction. Monetary assets and liabilities denominated in foreign currency,
remaining unsettled at the period end are translated at closing rates. The difference in
translation of monetary assets and liabilities and realized gains and losses on foreign
currency transactions are recognised in the Profit and Loss Account.
(ii) Forward exchange contracts other than those entered into to hedge foreign currency
risk of firm commitments or highly probable forecast transactions are translated at period
end exchange rates. Premium or discount on such forward exchange contracts is
amortized as income or expense over the life of the contract.
(iii) Realized gain or losses on cancellation of forward exchange contracts are recognized
in the Profit and Loss Account of the period in which they are cancelled.
(iv) Exchange differences in respect of other unexpired foreign currency derivative
contracts, which have been entered into to hedge foreign currency risks are marked to
market and losses, if any, are recognized in the Profit and Loss Account.
11 Revenue Recognition
Sales are recognized when goods are supplied and are recorded net of returns, trade
discounts, rebates, sales taxes and excise duties.
Income from processing operations is recognised on completion of production / dispatch
of the goods, as per the terms of contract.
Export incentives receivable under the Duty Entitlement Pass Book Scheme and Duty
Drawback Scheme are accounted on accrual basis.
Dividend income is recognised when the right to receive the same is established. Interest
income is recognised on a time proportion basis.
Income on assets given on operating lease is recognised on a straight line basis over the
lease term.
12 Research and Development Expenditure
Revenue expenditure on Research & Development is charged to the Profit and Loss
Account of the year in which it is incurred. Capital expenditure incurred during the year
on Research & Development is included under additions to fixed assets.
13 Depreciation
Leasehold land and Leasehold improvements are amortized equally over the lease period.
Depreciation is provided on the straight line method at the rates specified in Schedule
XIV to the Companies Act, 1956, except for computer hardware which is depreciated
over its estimated useful life of 4 years.
Depreciation on assets acquired during the year is provided for the full accounting year
and no depreciation is charged on the assets sold/discarded during the year, except in case
of major additions and deductions exceeding rupees one crore in which case,
proportionate depreciation is provided.
Depreciation on the revalued component is provided on the straight line method based on
the balance useful life of the assets as certified by the valuers. Such depreciation is
withdrawn from Revaluation Reserve and credited to Profit and Loss Account.
14 Employee Benefits
Liability is provided for the retirement benefits of provident fund, gratuity, leave
encashment and pension benefit in respect of all eligible employees of the Company.
(i) Defined Contribution Plan
Employee benefits in the form of Provident Fund and Family Pension which are paid to
EPFO are considered as defined contribution plans and the contributions are charged to
the Profit and Loss Account of the year when the contributions to the respective funds are
due.
(ii) Defined Benefit Plan
Retirement benefits in the form of Provident Fund which are paid to PF Trust, Gratuity
and Pension plan for eligible employees are considered as defined benefit obligations and
are provided for on the basis of an actuarial valuation, using the projected unit credit
method, as at the date of the Balance Sheet.
(iii) Other Long-Term Benefits
Long-term Compensated Absences and Long Service Awards are provided for on the
basis of an actuarial valuation, using the projected unit credit method, as at the date of the
Balance Sheet.
Actuarial gain/losses comprising of experience adjustments and the effects of changes in
actuarial assumptions are immediately recognized in the Profit and Loss Account.
15 Incentive Plans
The Company has a scheme of Performance Linked Variable Remuneration (PLVR)
which rewards its employees based on Economic Value Addition (EVA). The PLVR
amount is related to actual improvement made in EVA over the previous year when
compared with expected improvements.
16 Hedging
The company uses forward exchange contracts to hedge its foreign exchange exposures
and commodity futures contracts to hedge the exposure to oil price risks. Gains or losses
on settled contracts are recognized in the profit and loss account. Futures contracts not
settled as on the Balance Sheet date are marked to market and losses, if any, are
recognized in the profit and loss account, whereas, the unrealized profit is ignored. Gains
or losses on the commodity futures contracts is recorded in the profit & loss account
under cost of materials consumed.
17 Taxes on Income
Tax expense comprises both current and deferred tax. Current tax is the amount of tax
payable on the assessable income for the year determined in accordance with the
provisions of the Income tax Act, 1961.
Deferred tax is recognized on timing differences; being the differences between the
taxable incomes and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only
when there is virtual certainty of their realization and on other items when there is
reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized. The tax effect is calculated on the accumulated
timing differences at the year end based on the tax rate and laws enacted or substantially
enacted on the balance sheet date.
18 Segment Reporting
The Accounting Policies adopted for segment reporting are in line with the Accounting
Policies of the Company. Segment assets include all operating assets used by the
business segments and consist principally of fixed assets, debtors and inventories.
Segment liabilities include the operating liabilities that result from the operating activities
of the business. Segment assets and liabilities that cannot be allocated between the
segments are shown as part of unallocated corporate assets and liabilities respectively.
Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable
basis to business segments are reflected as unallocated corporate income /expenses.
PLANNING POLICY
The costs of Human Resource planning are kept minimal as each plant/ profit centre has
its own Personal Department which provides all the respective plant requirements. Each
personal department comprises of four members.
The short term planning is conducted by each plant’s personal department with each
team’s respective heads.
The Long term planning is performed by superiors of each department in accordance
with company’s interests and objectives.
The internal detailed planning is planned by each team separately.
In this way, it is lesser time consuming, energy, economic and also effective. The
decisions are agreed upon by most of the team members so they are more focused, clear,
satisfied that even they have a say in the working and meeting the targets set.
HUMAN RESOURCE POLICIES
What drives Godrej Industries Limited employees is the positive outlook towards work in
an environment of change that encourages innovation and lateral thinking to harness new
concepts for increasing maximum efficiency. The Godrej Industries employee is
determined, ready to learn and committed to meeting and raising the organization's
standards of quality, bringing the organization to the very forefront of the global FMCG
and beverage industry.
Our employee is determined, loyal, committed and eager to learn and we provide this
platform like every other growing global entity. A complete teamwork is highly
appreciated. Every Godrej Industries employee works in harmony to reach higher goals
and strive to take the organization forward. Forming a team, whose sole purpose is to
achieve its target under any circumstances, a team that never compromises on quality and
inner strength.
The Godrej Industries Limited Human Resource Department has initiated a
metamorphosis within the organization - a phase of change to compete and excel globally
for future. HRD believes in the dynamics of change: if we always do what we had always
done, we will always get what we always got and we nurture a constant urge to achieve
something beyond the expected. To implement this change, Godrej Industries Limited is
working to increase efficiency while reducing unnecessary costs and expenses.
The HR has design a tailor-made HR roadmap, giving a new dimension to the HR
systems and processes, leading the organization towards an effective human engineering
process.
HRD works towards enhancing the effectiveness and the efficiency of Godrej Industries
Limited by enriching individual maps of reality, by supporting personalized growth of the
individuals, by improving team-spirit and inter-personal communication of the
organization's members. It not only believes in harnessing internal pools of knowledge
but also provides its employees a platform for knowledge integration with internal as well
as external sources.
The Godrej Industries Limited human resources department has become an eventful place
with a focus towards attraction, retention and development of talent, as it surges ahead to
set higher performance thresholds. Our HR motto states that - "We not only believe in
blending Spirits into FMCG but also blending Aspirations into Career."
Selection of any employee depends on the need in any sector. For this the particular
departments of organization define the quality needed in employee and after this the HR
department posts the job on different web sites, hire consultant or take placement from
different colleges.
Promotion of the employee depends on the capability of employees learning means if the
employee can have ability or eagerness to learn the work of other department beside his
work he will be promoted. Also after the experience and quality of work any employee is
promoted.
Training and Development is a part of any organization. Godrej Industries Limited
believes in leveraging technology to help it gain a competitive edge in the market place.
Godrej has been one of the first companies in the FMCG / Chemical industry. So they
organize training program time to time.
MARKETING POLICY
Godrej Group is expected to increase its market share in various products by increasing
capacity, introducing new products and entering new markets. Our FMCG business is
expected to grow by 50% in the current financial year.
Bulk soaps and property will grow by 15%. The group is actively tapping the export
market with its varied and good quality beverage. Finally, we are looking for a strategic
alliance to import and market products related to our activities using our vast and
experienced sales and distribution infrastructure.
GCPL has a widespread distribution network across India. It has a presence in both the
urban and rural markets, enabling it to benefit from the opportunities in both segments. It
has a sales team which comprise of over 250 staff spread across the country. It has a
network of 33 C&F agents and as on February 29, 2008. It had 1,273 distributors, 142
super stockiest and 3,175 sub stockiest to support the sales team in India. Its distributors
and sub stockiest cover around 650,000 retailers in India. GCPL has linked its major
distributors in India through a system called ‘Sam park’, a collaborative planning,
forecasting and replenishment system with its ERP system leading to reduced inventory
levels, which would translate into better returns for them.
The following is the Marketing Strategy of Godrej Industries:
Relaunching products across categories to revive demand and enhance customer recall
(repackaging or brand extension to new product categories)
Shifting emphasis on non-traditional media for personal care products- Consumer offers
(to lure buyers to the doorsteps of any retail outlet), trade schemes to motivate dealers
across the country
Revitalizes Master Brand strategy and identity for greater synergies across business and
brand portfolio
Creates new Marketing and Branding strategy geared to supporting the group’s revenue
growth target of 25-30% annually
Outlines a new portfolio management strategy to maximize the value of the Godrej brand
and associated businesses
Brand valuation and identifying the demand drivers
3*3 strategy to penetrate deeper into Asia, Africa and South America, with three product
segments- personal wash, hair care and insecticides
RESEARCH AND DEVELOPMENT POLICY
The research and development activities broadly comprise of various processes for
developing new products, standardizing new analytical methods and identifying
substitutes for key raw materials. Through this research and development centre, GCPL
continuously interact with consumers to obtain feedback on its products and information
obtained is leveraged to complement new product development activities. The Godrej
Research & Development Centre is recognised by the Department of Science and
Technology, New Delhi.
Godrej Industries Limited believes in leveraging technology to help it gain a competitive
edge in the market place.
PRODUCTION POLICY
GCPL currently operates five manufacturing facilities in India at Malanpur (Madhya
Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha
(Himachal Pradesh) and Sikkim. Further, its manufacturing facilities located abroad at
South Africa produce a range of personal care products and hair color products. GCPL
continues to maintain efficient manufacturing facilities for a consistent the quality of the
products and to reduce operational costs. It focuses on management of logistics, supply
chain and distribution functions, which enables GCPL to service customers better. Its
widespread manufacturing base helps to manufacture quality products at a low cost.
These facilities follow the Total Quality Management (TQM) management philosophy at
the manufacturing facilities. This involves focused attention on product quality and
manufacturing processes. Many of the GCPL’s production facilities are ISO certified for
Quality Management System, Environmental Management System, and Occupational
Health & Safety Management Systems. Internationally, GCPL has manufacturing
facilities in South Africa, to manufacture personal care and hair care products.
BCG Matrix of Godrej Industries:
1. STAR:
GCPL enjoys an off-take of 22.29 per cent in toilet soaps.
Godrej Expert has market growth of 19% with market share at 29.4%
A liquid detergents account for RS 42.9 Cr for the 2010-2011.Ezee is having large share
in market. Ezee the market leader with an overwhelming
81.90% market share by value
Home insecticides (market share: 36.6%) and there is more sale of Godrej Good Knight
The brand has also emerged market leader, which is growing at about 30 per cent per
annum, with a market share of 37.9 per cent
2. CASH COW:
Soaps contribute 70 per cent to Godrej’s total turnover. With market share of 10.2 per
cent, GCPL is the second largest player in the soap market in India. Cinthol soap
recorded sales of Rs 80 crore last year, which the company plans to double by year-end.
Cinthol has a market share of 2 per cent. Fair Glow soap has high market share and low
market demand
Godrej No.1 brand is the best-selling Grade 1 soap and the market leader across north
India. Market brand Godrej No 1 has a 7 per cent share
Hair colours (market share: 29.4%) and best selling product is Godrej Nupur Mehndi
3. QUESTION MARK:
Evita Soap is launched in India. Customers in their late twenties and early thirties are
targeted for this soap for which fine lines of age start appearing. The soap is priced at Rs
14 for a 75 gram pack and Rs 24 for a pack of two soaps. It is in question mark stage
whether it will become a star or dog
4. DOG:
Ganga Soap and Godrej Tea are dogs as there market share and market growth is
almost zero and there operations are closed down.
CONCLUSION
Godrej continues its efforts for the betterment of the environment and conservation of
scarce natural resources. They say “they touch more consumers than any other Indian
company- it’s not just with soaps, locks and cupboards….” It is because of their
determination towards the helping hand to society and commitment to serve better every
time through their CORPORATE GOVERNANCE & its CORPORATE SOCIAL
RESPONSIBILITIES.