Vision : Godrej in Every Home and Work Place Mission : Enriching Quality of Life Everyday Everywhere

Values : Integrity | Trust | To Serve | Respect | Environment

Sr.No.

G&B Unit Type of Steel Specifications Size in mmThickness

Annual Qty. (M/t)

End Use

1. CR / GP Coils / Electrical Steel

a. Furniture, Mumbai C.R. Coils IS 513 Gr. D or JIS G 3141 SPCC SD

0.60 – 2.00 28320 Furniture

b. Godrej Overseas - Do - - Do - - Do - 20000 Furniture

c. SSG, Chennai - Do - - Do - - Do - 4000 Storage Solutions

d. Security Equipment Div., Mumbai

G.P. Coils / C.R. Coils

IS 277 Gr. D/EDD or JIS G 3302 & JIS G 3141 SPCC SD

0.50 TO 2.00 4000 Security Equipments.

e. Furniture, Mumbai Pattern coils Pre-painted 0.60 450 Furniture

f. Appliance Div., Shirwal/Moholi G.P. Coils /

Electrical Steel

IS 277 Gr. D/EDD or JIS G 3302, JIS G 3141 SPCC SD, IS 649

0.35/0.45/0.5 12000

5400

Refrigerator sides & doors, Hermetic motors for compressors (captive & external)

SUB – TOTAL (A) 74170

2. H.R. / M.S. Plates

a. Security Equipments, Mumbai H.R. Coils Is 2062, Gr. A/B or IS 5986 Fe 410

5 / 10 13500 Security Equipments

b. Process Equipment, Mumbai B.Q. Plates ASTM 515/516 Gr.60/70 8 to 250 19000 Pressure Vessels

c. Storage Solutions, Chennai High Strength H.R.

IS 800 Fe 460 IN 17100 St 46

1.60/1.80/2.00

156004200

Storage Solutions

d. Appliance div., Moholi HRPO – EDD/DD IS 2062 / 5986 2.80 5400 Compressor Cover & shells

SUB – TOTAL 57700

3. Tor Steel Rounds

a. Construction CRS / TMT Fe 500 8 to 32 mm 7500 Construction

SUB – TOTAL 7500

T O T A L 139370

Various Types of Steel – 2011-12

Extremely price sensitive market.Consumers demanding more value for each Rupee spentNo compromise on quality and after sales service.Consumer seeking :

Experience and bonding with the product.Are conscious of environment and seeking eco-friendly products – Products should be certified for 3/4/5 star rating.Constant Innovation for :

Better AestheticsMore FunctionalityLatest technologies

 Dealers and Retailers are required to spruce up show rooms and offer more comfort to prospective buyers. Display entire range of Products. 

Current Trends

Image Image

Image Image

DEMAND DRIVERS Summer Temperature Rising

With Fastest growing middle class society in Asia CAGR in excess of 20% expected during next 5 years.

As per the National Council for Applied Economic Research, MIDDLE CLASS families have an annual income between

Rs.3.4 Lacs to Rs.17 Lacs at 2009-10 price levels. 6th Pay Commission also to enhance purchasing power.

Customers are offered zero interest charges. NIL processing fees and zero down payment to woo customers.

LG and Samsung strategy of multinationals, for aggressive market penetration. Japanese companies are bridging price gaps. They propose to encash on strong brands like Daikin, Hitachi, National, in the

air conditioning sector.

Also investing in manufacturing and R&D Centres in India.

Replacement cycle of white goods and other consumer durable sredudced from 9/10 years to about 4/5 years. Middle class

segment buying more than one unit e.g. 2/3 Acs, 2 TVs, etc.

Penetration levels :

18% Refrigerators

6% Washing Machines

1% Microwave

2% Air conditioners

Shows a huge market yet to be tapped

Effective branding and advertising has lead to increased consumer awareness with a growing preference for new models with

more features at the same price point.

INNOVATION – KEY TO SUCCESSINNOVATION – KEY TO SUCCESS

RAW MATERIAL - STEEL

1. QUALITY PARAMETER * Sheets = Table Top Flatness (Bow Height max. 2 mm) * Surface free from any surface defects * Right angle / diagonal accuracy.

2.DELIVERY CONDITIONS & EXPECTATIONS * Strictly on time – In the right mix of various sizes, nominal penalty on a per M/t basis – Purpose to reduce inventory to 2 days from current level of 8 days. * Panels to be pre-inspected and certified by vendor. * Flexibility in quantities to take care of market fluctuations. Vendors to be flexible. Fluctuation of + 25% of ordered quantities to be accepted.

3.FUTURE TRENDS * Door Panels for premium models – PVC on GI – mostly imported from Korea, Taiwan. * PPGI – for new manufacturing locations. * Plastics for side panels / door – New technology using High impact Polystyrene + ABS * Refrigerant Gas – R134 Cooling Gas, eco friendly.

Economist Intelligence Unit

Economist Intelligence Unit

High Economy and Infrastructure growth

Macro trends – Economic Development

Favourable Economy Trends

Pvt Consn & Infrastructure to boost economy growth. India will spend 9% of its GDP (US$1 Trillion on Infrastructure over the next 5 years) … Technopak

Technopak

Macro trends – Economic Development

Favorable demographic trends

India to become lesspoorer •Highly affluent households (> 10 L)to increase from 4 mn to 12.5 mn in urban India and from 1.4 mn to 3.6 mnin rural India. •The middle class is the big story in urban and rural India

•No of individuals across general education levels to increase from current 659 mn to 806.5mn by 2020•Growth in education levels to driveconsumerism

Retail Trend

Rapid Retail transformation

Indian retail industry – Large but highly unorganized

Journey of Organized Retail

20052000 2008 2011

Entry, Growth,Expansion, Top line focus

Range, portfolio format options

End to end supply chain mngmnt,back endoperationstechnologyprocesses

M&A Shakeout,Consolidation, High investment

Per capita Retail space

0

20

40

60

80

100

120

Traditional

Organised

Retail Trend Consumer Durable Retail trends

Consumer Durable retail – Overall a small segment but Big within organized

Total retail industry

US $281 bn

Source: Marketing White book 2010

Retail Sector by Category

54%

2%7%

7%

30%

Food & Grocery

Pharmaceuticals

ConsmumerDurablesApparel

Others

Breakdown of Organised Retail

39%

11%

9%

9% 7%7%

3%3%

3%

3%

3%

2%

1%

12%

Ready made garments

Food & Grocery

Footw areConsumer Durables

Furniture & Furnishings

Food & Beverages

Jw elleryWatches

Mobiles

Books, Music,Gifts

EntertainmentPharmaceuticals

Health & Beauty

Source: Marketing White book 2010

Consolidation in the industry happening at a rapid pace with 19% growthin organized retail consumer durable outlets

Consolidation in the industry happening at a rapid pace with 19% growthin organized retail consumer durable outlets

Retail Trend

Consumer Durable Retail trends

2009-10 2010-11Next 384 500

Big Bazaar 112 116E zone/Home Town 51 51

Croma 43 65Reliance Digital 19 30Reliance Mart 42 42

Aadhar 48 48ITC 23 23

Spencers 20 18Bharti Walmart 3 11

Star Bazar 4 9Aditya Birla 4 9Hypercity 5 9

Metro 5 6Food Exp 4 5Max Hyper 3 4Carrefour 0 1Hariyali 150 150Shoprite 1 1

Yaas 7 7V.mega 13 13Singer 0 0

Regional retail chain stores 471 563

Total 1412 1681

ACCOUNT

19% growth

Durable Industry Perspective

Growth seen in consumer durable ownership by households fuelled by accessto electricity as well as financing to purchase and operate electric appliances

Indian Durable industry* Market: 2010-11Indian Durable industry* Market: 2010-11

Refrigerators Washing Machines

Units: 87 LakhsUnits: 87 LakhsValue: 9770CroresValue: 9770Crores

Units: 36 LakhsUnits: 36 LakhsValue: 3400 CroresValue: 3400 Crores

Units: 12.5 LakhsUnits: 12.5 LakhsValue: 875CroresValue: 875Crores

GrowthOver 2009-10Units: 15%Value: 14%

GrowthOver 2009-10

Units: 8%Value: 6%

GrowthOver 2009-10Units: 26%Value: 28%

Air Conditioners

Units: 35 LakhsUnits: 35 LakhsValue: 7650 CroresValue: 7650 Crores

GrowthOver 2009-10Units: 21%Value: 27%

Major growth being witnessed in Air conditioner and MWO categories, where product penetration is still low while moderate growth in

Refrigerator category

Major growth being witnessed in Air conditioner and MWO categories, where product penetration is still low while moderate growth in

Refrigerator category

Applaince Industry

Industry Perspective

GrowthOver 2009-10

Units: 6%Value: 11%

Units: 135 LakhsUnits: 135 LakhsValue: 12875 CroresValue: 12875 Crores

MWO Television

* Godrej Categories

Domestic Industry

Ref

2010-11 : 34549 Cr. 2014-15 : 66461 Cr.

2.22

2010-11

Ref, 9769

WM, 3381

AC, 7650MWO, 875

TV, 12874Ref

WM

AC

MWO

TV

2014-15

Ref, 16900

WM, 7600

AC, 19300

MWO, 1300

TV, 21361 Ref

WM

AC

MWO

TV

The future trend – Categories poised for further growth

CAGR : Refrigerators : 12%; Washing Machines : 18% Air Conditioners : 26%; Microwaves : 12%; TV : 13%CAGR : Refrigerators : 12%; Washing Machines : 18% Air Conditioners : 26%; Microwaves : 12%; TV : 13%

2.22

45%

Value in Rs. Cr.

22%

MWO CTV

43%

38%

334%

Air ConditionersRefers

Washers

New businesses to drive growth New businesses to drive growth

Godrej Product Mix movement

GAD-Performance 10-11&Business Outlook 2011-12

66%

11%

17%3%3%

58%

12%

17%

3%

10%

•Category value in Cr.

•Category mix in %

1475 cr 2045 cr

ESTIMATED STEEL CONSUMPTION2010-11

M/t

10.0 Million Refrigerators : 1,80,000 4.0 Million Washing Machines : 48,000 4.2 Million Air Conditioners 42,000

------------2,70,000=======

GODREJ – Laurels, Credos, Awards, Recognition

Godrej Eon Refrigerators awarded :

The “Design Excellence Aware” by Business World and Material Institute of Design.

CNBC Awaaz Consumer Award for three consecutive years.

Readers’ digest felicitated Godrej with the “Most Trusted Brand gold Award’ for four consecutive years.

FMCG Federation of India honoured Godrej Eon with the Most Preferred Frost Free Refrigerator Brand at the 5 th Consumer

World Awards. In 2008, the Urjavaran Foundation felicitated the company with the Best Model Impact towards Energy Efficiency

Offering 100% Green Refrigerator since 2002, when research revealed the dangers of CFC/HFC/HCFC laded refrigerants.

Product development and relevant technology done through our in-house R&D manned by more than 100 engineers andDesigners

National Readership Survey data shows that every third household in India owns a Godrej Refrigerator.

Only Godrej manufactures refrigerators which are 100% CFC, HFC and HCFC free.

THANK YOU