Godrej Industries registers revenue at Rs. 779 crore in Q1 FY 2010

Godrej Industries . Q1 FY2010 Investor Communication
GIL registers revenue at Rs. 779 crore in Q1 FY 2010
(Consolidated)
Mumbai, July 29, 2009:Godrej Industries Ltd. (GIL), a corporate with a diverse range of
businesses and products, today announced its results for the quarter ended 30th June 2009.
Financial overview
Q 1 FY 2010
􀂃 Total income at Rs. 779 crore.
􀂃 PBDIT at Rs. 42 crore.
􀂃 PAT at Rs. 16 crore.
􀂃 Diluted EPS at Rs. 2.0 (annualised)
Key corporate and business highlights
􀂃 Under the buyback programme, the Company bought back 14,90,760 shares as on 30th June 2009 at a
consideration of Rs. 2022 lac. Of the above, 13,40,760 shares have been extinguished upto 30th June
2009. As on date, the Company has bought back 21,33,710 shares at a consideration of Rs. 2887 lac.
and has completed the buyback. These shares have since been extinguished.
􀂃 The Board of Directors at its meeting held on May 27, 2009, has approved a proposal for the merger of
Godrej Hygiene Care Limited (GHCL), a 100% subsidiary of Godrej Industries Limited, into Godrej
Consumer Products Limited (GCPL). The proposal is subject to the approval of the Hon.able High Court,
Bombay. The Appointed date of the merger will be June 1, 2009. Post merger, GIL will be issued shares
in GCPL in lieu of its holding in GHCL.
􀂃 Brand .Godrej. has achieved an historic high of 44th rank in the .Brand Equity Most Trusted Brands
Survey 2009. conducted by The Nielsen Company on behalf of Brand Equity/Economic Times.
. Godrej SaraLee .Good Knight. Brand rose to its historic high by attaining the 21st rank and
regaining the title of India.s highest ranked household care brand.
. Relaunch of .Cinthol. brand supported by innovative variants helped to improve its ranking to
66th.
􀂃 A game-show .Godrej Khelo Jeeto Jiyo. anchored by Bollywood Heartthrob . Soha Ali Khan was aired
in continuation with our philosophy of Brighter Living to drive our endeavours.
􀂃 Godrej Industries Limited has debuted 12th in the .Best Companies to work for in India. survey done
by Mercer Consulting and Business Today.
􀂃 Godrej. .Expert. awarded the .Most Trusted Brand 2009. in the hair dye/hair colour category for the
third consecutive year in the Readers Digest Asia Trusted Brands Survey.
GIL . Q1 FY2010 Investor Communication
Commenting on the performance for FY2009, Mr. A.B. Godrej Chairman, Godrej Industries
Limited, said:
.I believe that the Indian economy has taken a positive turn during the quarter which is a very
encouraging sign for all our businesses. Godrej Industries has continued to invest in a Brighter Future
despite an uncertain, though improving, economic climate and we have seen our investments in brands
and people hold their ground and stand testament to the fundamental strengths of our businesses. Our
operating chemicals business has stabilized and has recorded steady performance in this quarter.
The .Godrej. brand which has been built up over decades is one of India.s most well known and
respected brand names. W e have always valued this and have strategically managed the brand across
our product portfolio. I am happy to share that we achieved historic highs in the .Brand Equity Most
Trusted Brands Survey 2009. conducted by The Nielson Company on behalf of Brand Equity/Economic
Times.The effort to invest in our brand and grow its equity has continued with - .Godrej Khelo Jeeto
Jiyo., a branded reality game show which demonstrates the range of our brand.s offering to position it
as an enabler of a brighter lifestyle in a manner that will benefit all the brands within our fold.
W e have a well diversified business model within which we see Properties, Agri-Oil Palm and FMCG
segments as future growth drivers for the Company. W hile the FMCG businesses are expected to
maintain steady momentum, the Properties and Agri-Oil Palm businesses have the potential to grow at
an exponential rate in the future..
BUSINESS-W ISE OVERVIEW
Chemicals Division
The chemicals division is the market leader in India in Oleo . Chemicals and Surfactants. GIL exports
to about 67 countries and supplies to a wide range of industries including cosmetics, rubber, PVC,
pharmaceuticals, etc.
Q1 FY2010 revenue was at Rs. 179 crore. Profit Before Interest and Tax (PBIT) for the quarter
increased by 50% from Rs. 9.4 crore to Rs. 14.2 crore. Export revenues accounted for 36% of the
division.s total revenues. Erucic acid and speciality fatty acid business for the quarter has gone up by
140% & 191% respectively. Sales of our surfactants for the quarter also saw very encouraging results.
Overview of Major Subsidiaries and Associate Companies
Godrej Agrovet Limited (GAVL)
GAVL is a diversified agricultural business covering a range of products and services including Animal
Feeds, Agricultural Inputs, Poultry and Oil Palm. GAVL recorded consolidated revenue growth of 9% to
Rs. 387 crore in Q1 FY 2010 from Rs. 356 crore in Q1 FY 2009.
Oil Palm Plantation Business
GAVL operates the Oil Palm business in States of Andhra Pradesh, Goa, Gujarat, Mizoram, Orissa,
Tamil Nadu and Karnataka. GAVL has been allocated territories with a potential of over 200,000
hectares of palm plantations. GAVL currently has about 33,000 hectares under cultivation of which
about 10,000 hectares bearing fruits and about 23,000 hectares under growing stage. Palm plantation
areas are allotted by the state governments to palm oil manufacturers and in turn the plantation owners
are obliged to sell the palm fruit to such allottees at government regulated prices which are linked to
output price. The size of the allotments reflects the strengths of GAVL including a strong brand,
reputation amongst farmers and excellent service. 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.
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GIL . FY2009 Investor Communication
Integrated Poultry Business
The poultry division covers the entire value chain from breeding, hatching and rearing of broilers to
processing and marketing chilled and ready-to-eat chicken. GAVL is involved in a joint venture with
Tyson food focusing on front end operations. Processed chicken is sold under the brand .Godrej Real
Good Chicken. and marketing of ready-to-cook range is sold under the brand .Godrej Yummiez..
Animal Feeds Business
GAVL, operating through 40 production units in India, is a leader in the animal feeds industry in India
and manufactures and markets a range of compound feed products for cattle, poultry, shrimp and fish.
The business undertakes its Research & Development activities at its dedicated centre. Some of the
innovative products include .Godrej Crumbro. and .Godrej Bypro..
Agri inputs Business
GAVL has a well established business covering plant growth promoters, organic manure mix, pesticides
and other innovative agri input products.
GIL holds 75.2% equity stake in GAVL.
Godrej Properties Limited (GPL)
GPL is one of the leading real estate development companies in India. The Company focuses on
residential, commercial and township developments. 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.
GPL employs a three pronged business strategy as follows:
􀁸 Joint ventures with land owners. These 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 may 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 land. GPL has inked an MOU with the Ahmedabad Municipal Corporation
for the development of a special township project. The project would be a project under the Clinton
Climate initiative launched by Mr. Bill Clinton, to demonstrate that large scale projects can be .climate
positive.. The project would strive to reduce the amount of on-site CO2 emission below zero. GPL has
well diversified portfolio spread across established Tier I and emerging Tier II and III locations.
GPL has debuted at No. 1 in India.s .Best Companies to Work for 2009. in the Construction & Real
Estate Industry in a survey conducted by Economic Times and Great Places to W ork Institute, India.
Godrej Industries Limited currently holds 80.3% 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 and www.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..
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GIL . FY2009 Investor Communication
Godrej Consumer Products Limited (GCPL)
GCPL is a 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..
GCPL continues to be the second largest toilet soap player.
GCPL has launched a new variant of soap under the brand .Godrej No. 1 . Lime and Aloe Vera. for
fresh, soft skin, totalling to 8 variants under the Brand. GCPL also launched two new deo sprays .
.Rainstorm. . a contemporary aquatic fragrance with undertones of lemon and bergamot and .Unleash.
. a spicy woody fragrance built on a base of cedar wood, with a touch of leather under the .Cinthol.
brand. The company has also relaunched a new and improved formulation including nine natural herbs
valued for hair care benefits under the brand .Godrej Nupur Mehendi..
GCPL declared a first Interim dividend of Re. 1 per share of face value of Re. 1/- (i.e. 100%) for
FY 2010.
GCPL has been ranked in various surveys as follows :
- debuted at No. 1 in India.s Best Companies to Work for 2009 in the FMCG category and 15th in
overall ranking in a survey conducted by Economic Times and Great Places to Work Institute, India.
- among the top 25 Best Employer in Asia and 11th Best Employer in India in a survey conduced by
Hewitt Best Employers in India, 2009 study.
- 6th in the .Best Companies To Work for in India. survey conducted by Mercer Consulting and
Business Today.
GCPL has approved the proposed acquisition of 49% stake in Godrej SaraLee Limited through merger
of 100% subsidiaries of Godrej Industries Limited and Godrej & Boyce Manufacturing Co. Ltd. The
scheme is pending with High Court for approval.
Consolidated revenue increased by 21% to Rs. 439 crore in Q1 FY 2010 from Rs. 362 crore in Q1 FY
2009. Consolidated PBT up by 80% to Rs. 88 crore in Q1 FY 2010 from Rs. 49 crore in Q1 FY 2009.
PAT grew 78% to Rs. 70 crore in Q1 FY 2010 from Rs. 39 crore in Q1 FY 2009. Earning Per Share
(EPS) (not annualised) for Q1 FY 2010 is Rs. 2.7 as compared to Rs. 1.62 (last year).
GIL has a 21.6% equity stake in GCPL.
Godrej Sara Lee Limited (GSLL)
GSLL is the market leader in household insecticides. It markets it products under brands .
.Goodknight., .Jet. and .Hit.. It is also in the Hair care, Air care, shoe care & surface care segment
and markets its products under .Ambi Pur., .Brylcreem., .Kiwi. & .Kiwi kleen. brands.
.HIT. brand recorded a revenue growth of 36% and was voted as .Trusted Brand 2009. in the
Household Insecticide industry and in an independent consumer survey conducted by Reader.s Digest.
.Good Knight. brand, recorded a revenue growth of 23% during the quarter, was accredited
Superbrand status for the 3rd consecutive year. The brand was also ranked 21st in the .Brand Equity
Most Trusted Brands 2009. in a survey conducted by Brand Equity/Economic Times. .Goodknight
active Plus. was accorded .Product of the year. in Insect Repellent category.
New products launched during the year FY 2008-09 . Brylcreem Hybridz, Advanced Low Smoke Coil
and Advanced Aerosol under the brand .Good Knight., Lavendar Spa and White Lillies spray under
the brand .Ambipur Aromatherapy. endorsed by popular Bollywood star and youth icon Soha Ali
Khan saw a good response. Aerosols, Coils and Ambipur segment grew by 47%, 23% and 14%
respectively.
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GIL . FY2009 Investor Communication
Q1 FY2010 consolidated revenue grew by 15% and Consolidated Profit After Tax (PAT) grew by 28%
for the quarter.
GIL, through its subsidiary, holds 20% equity stake in GSLL.
Godrej Hershey Limited (GHL)
GHL has a diverse portfolio of foods and beverages. Confectionery is marketed under Brand .Nutrine.
with .MahaLacto. being the flagship product. Juices and fruit drinks are marketed under Godrej brands
. .Jumpin., .Xs., .Sofit. (soyamilk based health drink), edible oil under the brand of .Cooklite.,
packaged tea under brand .Godrej Tea.. Milk Modifier (MFT) and Chocolate Syrup are marketed under
the Hershey brand.
Innovations . .Nutrine Santra Goli., .Nutrine Eclairs (cream centre). and .Maha Choco.
contribute about 13% of sales. The company has made significant progress with distribution of .made in
India. Hershey Chocolate syrup.
Core categories (Beverages and confectionery) grew by 17%. Jumpin, Hershey Milk Mix and Fruit
Juices segment quarter sales increased by 24%, 63% and 42% respectively.
GIL holds about 43.4% equity stake in GHL.
About Godrej Industries Limited
Godrej Industries Ltd is part of the Godrej group, one of the leading business groups in India and is in
the businesses of oleo-chemicals, surfactants, edible oils, fats, processed foods, finance & investments
and estate management. It has substantial interests in several industries including animal feeds and
agro-products, poultry, property development, personal care, household insecticides, confectionery,
branded tea, etc., through its subsidiaries, associate companies and joint ventures.
For more information on the Company, please log on to www.godrejinds.com
For further information contact:
Clement Pinto
Associate Vice-President (Finance)
Godrej Industries Ltd.
Tel: 022-2518 8010
Fax: 022-2518 8066
Email: cg.pinto@ godrejinds.com
Anoop Poojari / Reetabrata Bhattacharya
Citigate Dewe Rogerson
Tel: 022-4007 5006 / 5033
Fax: 022-2284 4561
Email: anoop@ cdr-india.com
reetabrata@ cdr-india.com
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 from those expressed or
implied. Important developments that could affect the Company.s operations include changes in the
industry structure, significant changes in political and economic environment in India and overseas, tax
laws, import duties, litigation and labour relations