GIL - Q2 H1 FY2009 - 27102008 · GIL - Q2 & H1 FY2009 Investor Update 2/25 Contents • Key...

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Q2 & H1 FY2009 Investor Update 27th October 2008

Industries Limited

GIL - Q2 & H1 FY2009 Investor Update2/25

Contents• Key Corporate & Business Updates

• Consolidated Results

Financial Overview

Balance Sheet

• Business Structure

Economic Interests /Investments

Performance highlights – Subsidiaries, JVs and Associates

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Key Corporate & Business Highlights


Godrej’s New Brand Identity Initiative

Group 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.


Other Highlights

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

• ICRA has assigned credit ratings for Commercial Paper, Lines of Credit (LOC) as under:

– Commercial Paper : A1+ (limits enhanced to Rs. 100 cr.) (highest-credit-quality carrying lowest credit risk)

– Short Term LOC : A1+– Long Term LOC : LAA

(Short term and 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.

• GIL has achieved an overall ranking of 155 in Economic Times’ ET500 survey (Oct 2008) and is amongst the top 100 wealth creators.


• Corporate Social Responsibility

– CII Code for ecologically sustainable growth : 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.

– 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

• 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.

Other Highlights

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Consolidated Results


Q2 & H1 FY2009 Highlights

Particulars Q2 FY2009Q2 FY2009 Q2 FY2008Q2 FY2008 % Shift H1 FY2009H1 FY2009 H1 FY2008H1 FY2008 % Shift

Total Income # 965 734 31% 1807 1407 28%

Expenditure 896 681 1667 1324

PBDIT 69 53 31% 140 83 68%

Depreciation 13 13 24 25

Interest 23 19 45 37

PBT * 33 21 60% 97 52 84%

PAT 19 0 6854% 72 32 130%

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

# Incl. other income

Rs Crore


Balance Sheet(Consolidated)

Liabilities Assets

30-09-08 30-06-08 30-09-08 30-06-08

Capital* 163 145 Net Fixed Assets** 1009 1015

Reserves 1418 1379 Investments 590 580

Debt 1401 1244 Net Current Assets 1310 1154

Def. Tax Liability 54 50 Cash & Bank bals. 127 69

Total 3036 2818 Total 3036 2818

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

Q2 FY2009Q2 FY2009 Q2 FY2008Q2 FY2008 H1 FY2009H1 FY2009 H1 FY2008H1 FY2008

PBDIT Margins 7.2% 7.2% 7.7% 5.9%

PBT Margins ** 3.4% 2.9% 5.4% 3.7%

PAT Margins 2.0% 0.0% 4.0% 2.2%

ROCE* 7.7% 10.0% 10.2% 11.3%


Segment-wise Contribution to Financials – Q2 FY2009

CHEMICALS

ANIMAL FEEDs

VEGOILS

ESTATE &PROPERTYDEVELOPMENTHOUSHOLDINSECTCIDES

BEVERAGES &FOODS

FINANCE &INVESTMENTS

OTHERS

24%

32%

17%

7%

5%

4%1%

10%

Revenue

5%3%1%

54%

10%

1%

11%

15%

PBIT


Segment-wise Contribution to Financials – H1 FY2009

CHEMICALS

ANIMAL FEEDs

VEGOILS

ESTATE &PROPERTYDEVELOPMENTHOUSHOLDINSECTCIDES

BEVERAGES &FOODS

FINANCE &INVESTMENTS

OTHERS

24%

30%17%

7%

5%

5%1%

11%

Revenue

7%

6%1%

49%

7%

1%

9%

20%

PBIT

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Performance HighlightsMajor Subsidiaries, JVs and Associates


Business Structure

GIL

Own business

Chemicals, Estate Mgmt. Vegoils, finance & invt.

Economic Interests

Godrej Agrovet

75.2%

Godrej Consumer

20.0%

Godrej Hershey

43.0%

Godrej Properties

81.4%

Nutrine

100%

Godrej Sara Lee

20%

Godrej Gokarna Oil Palm

48%

Goldmohur Foods &

Feeds 100%

Golden Feed

Products Ltd. 100%

Other Investments

KeylineRapidol

Godrej SCA

Godrej Hicare

76.8%

Godrej Tyson

Foods Ltd. 49%

Various SPVs

Nature’s Basket

Ltd. 100%

Godrej Oil Palm

Plantation Ltd. 80%

4 - 100% subsidiaries in

India, Bangladesh

and Sri Lanka


Economic Interests / Investments

76.8%3Pest Management ServicesGodrej Hicare

Company Business Investment at cost (Rs.

Crore)

Holding(%)

Godrej Consumer Products

FMCG, personal and household care products

446 20.0

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

164 75.2

Godrej Properties Real Estate and Property Development 188 81.4

Godrej Sara Lee Household Insecticides 47 20.0

Godrej Hershey Food, beverages and confectionary 143 43.0

Godrej International International Trading 17 100.0

Others (CBay, Avesthagen, Verseon, Compass etc)

- 107 -

Total 1115 -


Other Investments (major)

4.411Bio – TechnologyAvesthagen Limited

8.715Computer Aided Drug DiscoveryVerseon Corporation

20.72BPOCompass BPO Limited

24Others

5.338Medical transcription, accounts processing and patient financial services

CBaySystems Holdings Limited

18.617KPOBoston Analytics Inc

Company Business Investment at cost (Rs.

Crore)

Holding(%)


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.

Key Highlights

• Erucic Acid business for the H1 has gone up by 294%

• Sales of our higher end surfactants (SLS/SLES) have gone up by 205%

• Exports increased by 46% and 50.3% for Q2 and H1 FY 2008-09

• Exporting to more than 65 countries.

• Exports account for 43.6% of the Division’s turnover.

Financial Performance

Revenue growth of 39% (Q2 2008 – 09 : Rs. 232 cr.; Q2 2007 – 08 : Rs. 167 cr.)

Revenue growth of 39% (H1 2008 – 09 : Rs. 444 cr.; H1 2007 – 08 : Rs. 319 cr.)

Godrej Chemicals Division (Oleo-chemicals & Surfactants)


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


Consolidated revenue growth of 10% from Rs. 680 Crore to Rs. 751 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.

• GAVL operates through 40 production units across India.

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

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 specified territories to corporates for development of oil palm plantations. Growers are required to sell the entire production of fresh fruit bunches at a pre-determined Government price, which is linked to output prices.

Highlights of the Business

• Owing to a strong brand and excellent service, GAVL have built a great reputation among the growers and this is reflected in the size of their allotments

• Currently GAVL have been allocated territories having potential in excess of 100,000 hectares of palm plantations and more recently awarded 30% of allotments at the Tamil Nadu delta.

• The Company currently has operations in Andhra Pradesh, Goa, Mizoram, Orissa, Tamil Nadu and Karnataka

• 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,



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 processing and marketing chilled chicken through the brand “ Godrej RealGood 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. This business has been turning in robust growth in top line and bottomline over the past few years.



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 other 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 an 81.4% equity stake in GPL.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)(Real Estate and Property Development)


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.

• Soap sales grew by 26% to Rs. 184 crore from Rs. 145 crore during the quarter.

• Launched new range of products as :

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

– New range of detergent, Ezee Bright and Soft.

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

• Interim dividend declared – 75% taking the total to 150% for FY 2008-09.


• Consolidated Q2 2008-09 revenue increased by 26% to Rs. 346 crore from Rs.274 crore.

• Consolidated H1 2008-09 revenue grew by 26% to Rs. 708 crore from Rs. 560 crore.

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


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: M S Dhoni has been signed on as the brand ambassador for the Company's Chocolaty Candy 'Maha Choco‘.

• Q2 confectionery business sales grew by 30%

• H2 confectionery business sales up by 25%

• Q2 Beverages business sales increased by 53%

• H2 Beverages business sales increased by 32%

Financial Performance :

• Q2 2008-09 revenue growth of 28%

• H1 2008-09 revenue growth of 23%


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

• Goodknight aerosols launched during the quarter

• Aerosols segment grew by 34% in Q2 2008-09

• Coils segment grew by 11% in Q2 2008-09

Financial Performance :

• Q2 2008-09 revenue growth of 19%

• H1 2008-09 revenue growth of 26%


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 - Q2 H1 FY2009 - 27102008 · GIL - Q2 & H1 FY2009 Investor Update 2/25 Contents • Key...

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