A

Project on
Strategies of Godrej Group of Companies
In partial fulfillment for the requirements of Strategic Management
course in the Two Year Full-time Master of Business Administration
Programme,
Gujarat Technological University
Submitted by:
1. Bhavnani Sailesh (NR 13012)
2. Desai Naineel (NR 13028)
3. Gajjar Saumin (NR 13042)
4. Patel Amit (NR 13093)
5. Shah Devshree (NR 13131)
6. Shah Dhara (NR 13132)

Submitted To:
Dhruti Pandya
Submitted On:
15
th
Sep, 2014
N R INSTITUTE OF BUSINESS MANAGEMENT


Introduction Of Godrej Group

The Godrej Group is an Indian conglomerate founded by Ardeshir and Pirojsha Godrej in
1897, Lalbaug, Mumbai. Established in 1897, the Godrej group has grown in India from the
days of the charkha to nights at the call centres. Our founder, Ardeshir Godrej, lawyer-
turned-locksmith, was a persistent inventor and a strong visionary who could see the spark in
the future. His inventions, manufactured by his brother Pirojsha Godrej, were the foundation
of todays Godrej empire. One of Indias most trusted brands, Godrej enjoys the patronage
and trust of over 400 million Indians every single day. Our customers mean the world to us.
We are happy only when we see a delighted customer smile.
Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in
various industries that include appliances, precision equipment, machine tools, furniture,
healthcare, interior solutions, office equipment, food-processing, security, materials handling
and industrial storage solutions, construction and information technology. Its products
include security Systems and Safes, Typewriters and Word processors, Rocket Launchers,
Refrigerators and Furniture, Outsourcing Services, Machine Tools and Process Equipment,
Cosmetics and Detergents, Engineering Workstations, Medical Diagnostics and Aerospace
Equipment, Edible Oils and Chemical, Mosquito Repellents, Car perfumes, Chicken and
Agri-products, Material Handling Equipments Like FORKLIFT Trucks, Stackers, Tyre
handlers, Sweeping machines, access equipments etc. The Group is headed by Adi Godrej
and Jamshyd Godrej.
Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's
manufacturing base, but increasingly the group have moved significant production facilities
away from Mumbai. The Godrej group also owns vast land in Vikhroli, occupying 3500 acres
(14 sq km) of land on both sides of the Vikhroli section of the LBS marg. That makes the
Godrej group the biggest private land owner in Mumbai by far
.
Such vast land can, in theory,
be used to create at least 1500 acres of residential floor space, which, at very modest rates
(Rs.10000/sq ft), can be sold for USD 16 billion . Thus, the Godrej group is sitting on an
invisible cash pile that is envy of other Indian conglomerates.


VISION

Our vision is to be a leader in the Indian Food and beverage space by breaking into the
exclusive league of top ten FMCG food companies in India. Godrej in Every Home and Work
place



MISSION

Godrej Mission is to operate in existing and new businesses which capitalize on the
Godrej brand and corporate image of reliability and integrity.

Godrej objective is to delight its customer both in India and abroad.


Godrej shall strive for excellence by nurturing, developing and empowering its
employees and suppliers.

Godrej encourages an open atmosphere, conducive to learning and team work .


Godrej mission is to do sales of Rs. 1000 Crores by 2012, profitably at margins that
are best in class in FMCG goods. We will achieve it through unparalleled business
innovations and consumer satisfaction.









GODREJ MAJOR COMPANIES

The Godrej has 7 major companies.
Real Estate
FMCG
Industrial Engineering
Appliances
Furniture
Security
Agri-Care












Real Estate

Godrej Properties brings the Godrej Group philosophy of innovation and excellence to the
real estate industry. The company is currently developing landmark projects in 12 cities
across India. Established in 1990, Godrej Properties Limited is the first real estate company
to have ISO certification. With projects that span across the country, the company's upcoming
development covers over 8 million square meters. To create landmark structures, Godrej
Properties collaborates with outstanding associates and reputed names. The company aims to
deliver superior value to all stakeholders through extraordinary and imaginative spaces
created out of deep customer focus and insight.



Strategy
The strategy behind why the Godrej group entered into real estate industry. The real estate
industry was booming during the year 1980-1990. The Godrej Group founded an opportunity
to set up a business in real estate industry. They started Godrej Properties in 1990 finding that
the future of real estate business would be marvelous.
FMCG

Godrej Consumer Products Limited is the largest home-grown home and personal care
company in India. We are constantly innovating to delight our consumers with more exciting,
superior quality products at affordable prices.
We have bold ambitions and are becoming more agile and future ready. We rank number 1 in
hair colour, household insecticides and liquid detergents and number 2 in soaps. In India, you
grow up with our brands - Good knight, Cinthol, Godrej Expert, Godrej No. 1 - and we are
now on our way to becoming an emerging markets FMCG leader.
In line with our 3X3 approach to international expansion, we are building a presence
in 3 emerging markets (Asia, Africa, Latin America) across 3 categories (home care, personal
wash, hair care). In 2010, we acquired the Indonesia based Megasari group, a leader in
household insecticides, air fresheners and baby care. With the acquisition of Rapidol and
Kinky in South Africa, and the Darling Group, a leading pan-Africa hair care company, we
have a strong presence in the fast growing African hair care market. We acquired the Issue
and Argencos groups in Argentina, leaders in hair colour, in 2010, and expanded our
footprint to Chile through the acquisition of a 60% stake in Cosmetica Nacional. The UK
based Keyline Brands, which we acquired in 2005, plays in hair and personal care. We also
have a business in the Middle East and a strong presence across SAARC countries.

1. Cinthol - Strategy
The Godrej Group was the first to introduce the soap that is made from vegetable oil. The
soap that were available at that time were mostly made by using animal fat. The Godrej group
invented the soap which is made without using animal fat. the godrej group distributed the
pamphlets in Guajarati "deekho aur seekho" in which the process how the soap can be made
using vegetable oil was described . The strategy was used to earn the confidence of the
customers.
2. Good Knight - Strategy
The Godrej group strategy behind introducing good knight was to overcome the barriers of
the product like double power "activ+ system" for refill, good knight advanced "low smoke"
alternative in coils for the consumer who don't like using such product due to high smoke.



















Security Solutions
The fag end of the 19th century was a time of great political turmoil. The nationalistic
movement had gained momentum and people from all walks of life were joining in the
struggle to free India from British rule. One such person was a young lawyer who went by the
name Ardeshir Burjorji Godrej. No one could have imagined that an important part of India's
industrial history was being commissioned when he chose to give up law.
His mission was to develop a product that would displace brands the well entrenched foreign
brands and give them a worthy India-made competitor. In 1897 he decided to manufacture
locks. The product he had in mind would be manufactured using modern techniques and
machines. This was the only way, he believed, that his produce could equal or better brands
already available in the market.
The success of this launch led to the development of India's first home-grown safe in 1902. It
was a satisfying moment in its history when the company was called upon to provide safes
for the Queen of England when she and her entourage visited India in 1905.
In the next near-one hundred years this fledgling company would go on to becoming India's
most complete security solutions organisation, offering a comprehensive suite of security
solutions for residential, industrial and business premises.
Today, the company also manufactures equipment for the banking industry including vaults
as well as entrance doors for homes and products for the marine and defence sectors. Godrej
Security Solutions exports to over 45 countries.

Strategies
The Godrej groups original business or family business was of lock and key. The godrej group saw
that the lock and safe business will have a good future throughout. the godrej group was the first to
introduce safe in India. The strategy behind introducing the safe was to give consumer a proper
locker that will secure their valuables. and after that the group has keep on putting the efforts to
make it more easier by using the advanced technologies. e.g. In 2003 the godrej group
Manufactured ATM safes for world's leading ATM manufacturer.

Swot analysis Of Godrej
STRENGTHS

The Company has got wide range of branches within the country.
The Company has wide range of product line.
Godrej is having better Sales after services.
The Company has there respectable and believable brand name.
Company is having large number of customer with higher satisfaction.
The management is trained and efficient & the network of service centers is good in
all states.

WEAKNESS

The Company does not go for advertising, which is one of the biggest disadvantage
of Godrej.
Its emphasis more on the advertising of office automation & prime division.
The company is focusing many security products at a same time.
The effective selling schemes are not available like payment on installment.


OPPURTUNITIES

Godrej has more opportunities to grow as it has earned good name in security sector.
Technical up gradation time to time is also one of the opportunities.
Godrej can focus on big project like construction. Where there is a great demand of
security equipments

THREAT

The growing competition in the security sector is threat for all manufacturing
companies so it is also threat for Godrej to stand in the market with the higher
position.



Recommendations

The Company should advertise its Security equipment to a large extent. Today
Price based competition is skyrocketing so if it is possible that Company should
cut down its security equipments price. Company should promote its security
equipment through canopy. Company should do mall activities once in a week
because it is necessary to promote the high involvement security product.
Company should target the areas where competitors are lacking to capture
market share in all its segment.