The Hershey’s – GBFL dealThe Hershey’s – GBFL deal

Acquires stakeAcquires stake

•Hershey’s acquires 51% stake in Godrej Beverages and Foods Hershey’s acquires 51% stake in Godrej Beverages and Foods Ltd. (GBFL)Ltd. (GBFL)

•Deal valued at Rs. 2.38 billionDeal valued at Rs. 2.38 billion

•43% - Parent company Godrej Industries Ltd.43% - Parent company Godrej Industries Ltd.

•6% - Mr. Mahendran6% - Mr. Mahendran

License agreementLicense agreement

•Hershey’s to also license trademark rights to GBFLHershey’s to also license trademark rights to GBFL

•$ 2 million$ 2 million

•Royalty payments for domestic sales and exportsRoyalty payments for domestic sales and exports

C o m p a n y P r o f i l eC o m p a n y P r o f i l e

Hershey’s Co.Hershey’s Co.

• Leading U. S. chocolate makerLeading U. S. chocolate maker

• Incorporated on Oct. 24, 1927Incorporated on Oct. 24, 1927

• Five Operating SegmentsFive Operating Segments

• Acquired Dagoba Organic Acquired Dagoba Organic Chocolate companyChocolate company

• JV with Korean Company - JV with Korean Company - Lotte Lotte

Godrej Food & Beverages Godrej Food & Beverages Ltd.Ltd.

• Formed in March 2006Formed in March 2006

• Consolidation of Food and Consolidation of Food and Tea businessTea business

• Acquired a 53 year old Acquired a 53 year old confectionary companyconfectionary company

• Turnover of 200 crTurnover of 200 cr

Why …This dealWhy …This deal

BENEFITS FOR HERSHEY’SBENEFITS FOR HERSHEY’S

•Market ShareMarket Share

•Readymade Distribution NetworkReadymade Distribution Network

•Manufacturing Hub at ChittorManufacturing Hub at Chittor

•Pursue growth opportunities in emerging marketsPursue growth opportunities in emerging markets

•Supply chain TransformationSupply chain Transformation

BENEFITS FOR GBFLBENEFITS FOR GBFL

•Product Extension – Hershey’s brand to product portfolioProduct Extension – Hershey’s brand to product portfolio

•New MarketsNew Markets

•LicensingLicensing

•Use of TechnologyUse of Technology

Thank YouThank You

Presented by:Presented by:

Sushanth GaneSushanth Gane

Vivek GuptaVivek Gupta