Sahil Ansari roll no.

2 retail management

Sahil Ansari
Rollno.2
Tybvoc
Retail management
Company: Godrej
Sahil Ansari roll no. 2 retail management

Index

1. FMCG SECTOR PROFILE

2. Company profile: Godrej

3.
Vision and mission of Godrej

4. SWOT ANALYSIS

5. Godrej growth plans

6. Corporate restructuring of Godrej

7. Conclusion
Sahil Ansari roll no. 2 retail management

FMCG SECTOR PROFILE

The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1
billion. Well-established distribution networks, as well as intense competition between the
organized and unorganized segments are the characteristics of this sector. FMCG in India has a
strong and competitive MNC presence across the entire value chain. It has been predicted that
the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The
middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of the
product categories like jams, toothpaste, skin care, shampoos, etc., in India, have low per capita
consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According
to the study conducted by AC Nielsen, 62 of the top 100brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned
by Hindustan Lever. Pepsi is at number three followed by Thumps Up. Britannia takes the fifth
place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9).These are figures the soft
drink and cigarette companies have always shied away from revealing. Personal care, cigarettes,
and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of
the top100 brands.
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to
US$ 33.4 billion in 2015.Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, hair wash etc. in India is low indicating the untapped
market potential. Burgeoning Indian population, particularly the middle class
Sahil Ansari roll no. 2 retail management

Company profile: Godrej

The Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India,

managed and largely owned by the Godrej family. It was founded by Ardeshir
Godrej and Pirojsha Burjorji Godrej in 1897, and operates in sectors as diverse as real estate,
consumer products, industrial engineering, appliances, furniture, security and agricultural
products. Subsidiaries and affiliated companies include Godrej Industries and its
subsidiaries Godrej Consumer Products, Godrej Agrovet, and Godrej Properties, as well as the
private holding company Godrej & Boyce Mfg. Co. Ltd.
Godrej Consumer Products Limited is an India-based company, which is engaged in the
manufacture of personal and household care products. The Company's geographic segments
include Within India and Outside India. It offers hair care products. The Company's Personal
Care range of brands includes Cinthol, Grade 1 soap, protekt, Soft & Gentle, Cuticura, Mitu and
Pamela Grant. Its home care range of brands includes Good knight, HIT, aer, Ezee and Stella. Its
hair care range of brands includes Ilicit, Touch of Silver, Roby and Renew. The Company
focuses on regions, including India, Asia, Africa and Latin America. The Company offers a
range of products in India, which include household insecticides, such as aerosols, liquid
vaporizers, coils and mats; hair colors; soaps and air fresheners. Its protekt range of products
consist of approximately three hand washes, a hand sanitizer and a personal mosquito repellent
spray, including instant foam hand wash and alcohol-free sanitizer.
Godrej has a philanthropic arm that has built schools, dispensaries and a residential complex for
their employees. Trusts established by Godrej continue to invest in education, healthcare and
upliftment of the underprivileged. Godrej is a supporter of the World Wildlife Fund in India, it
has developed a green business campus in the Vikhroli township of Mumbai, which includes 200
acre mangrove forest and a school for the children of company employees.
Twenty-five percent of the shares of the Godrej holding company are held in trusts that include
the Pirojsha Godrej Foundation, the Soonabai Pirojsha Godrej Foundation and the Godrej
Memorial Trust. Through these trusts the Group supports healthcare, education and
environmental sustainability initiatives such as The Mangroves, Teach for India, WWF, Smile
Train and the Godrej Memorial Hospital among others.
Sahil Ansari roll no. 2 retail management

Vision of Godrej:
"Value Leadership"
To be the leading company, not just in sales levels, but also in Value Creation, innovation and in
excellence of our processes, through high standards of quality and social responsibility.

Mission:
"Products of a Unique Class"
To offer Unique Agrovet Products; developed in a creative and innovative way, looking for
international projection and local consolidation, through the formal establishment of strategic
alliances

• Quality
• Maximize Productivity
• Financial gain for Farm Owner
• Fairness
• Transparency
• Continuous Improvement
• Innovation
• Godrej mission is to operate in existing and new businesses which capitalize on the
godrej brand and corporate image of reliability and integrity.
• Godrej’s objective is to delight its customer both in India and abroad.
• Godrej wants to strive for excellence by nurturing, developing and empowering its
employees and suppliers.
• Godrej encourages an open atmosphere, conductive to learning and team work.
Sahil Ansari roll no. 2 retail management

SWOT ANALYSIS

STRENGTHS
1. The Company has got wide range of branches within the country.
2. The Company has wide range of product line.
3. Godrej is having better Sales after services.
4. The Company has there respectable and believable brand name.
5. Company is having large number of customer with higher satisfaction.
6. The management is trained and efficient & the network of service centers is good in all states.
7. Over 1,300 full-time employees
8. Widespread distribution network across India
9. Presence in more than 60 countries
10. Over 1,300 full-time employees

WEAKNESS
1. Market share is limited due to presence of other strong FMCG brands
2. Godrej products has stiff competition from big domestic players and international brand
3. The Company does not go for advertising, which is one of the biggest disadvantage of Godrej.
4. Its emphasis more on the advertising of office automation & prime division.
5. The company is focusing many security products at a same time.
6. The effective selling schemes are not available like payment on installment.
Sahil Ansari roll no. 2 retail management

OPPURTUNITIES:
1. Godrej has more opportunities to grow as it has earned good name in security sector.

2. Technical up gradation time to time is also one of the opportunities.

3. Godrej can focus on big project like construction. Where there is a great demand of security
equipment’s.
4. Tap rural markets and increase penetration in urban area
5. Mergers and acquisitions to strengthen the brand
6. Increasing purchasing power of people thereby increasing demand

THREAT:
1. Intense and increasing competition amongst other FMCG companies
2. FDI in retail thereby allowing international brands
3. Competition from unbranded and local products
4. 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.
Sahil Ansari roll no. 2 retail management

Godrej growth plans:

Godrej Group, a 119-year-old business group with business interests ranging from processed
food to property, blamed deflation and poor monsoons as two reasons for low growth but said
the conglomerate's plan to grow revenue 10 times by 2020 is on track despite some slowdown in
the economy.
The vision 2020 to expand revenue 10 times in 10 years was unveiled to the Godrej leadership
forum, a panel of top 100 managers in the group, in April 2011.
"We like to achieve 10 by 10-which is to be 10 times our present times in 10 years’ time—which
is compounded annual growth rate (CAGR) of if you grow at 26% each year you will. In the first
two to three years, we achieved better than that. Then we slowed down because the economy has
slowed down. Now we hope to catch up again when the economy will do better. Also this has to
be achieved partly organically and partly inorganically by acquisitions," Adi Godrej, chairman of
Godrej Group, said in an interview.
Godrej Group is betting big on it three companies-Godrej Properties Ltd, Godrej Consumer
Products Ltd (GCPL) and unlisted Godrej Agrovet Ltd to drive this growth, said Godrej.
Godrej Group's listed companies Godrej Industries Ltd, Geometric Ltd, Godrej Properties, GCPL
and Astec Lifesciences Ltd closed the fiscal year 2016 with a cumulative profit of
Rs.1921.13crore and revenue of Rs.23,527,48 crore.
GCPL, its largest contributor to profit and revenue, closed the fiscal year 2016 with profit of
Rs.1158.89crore and revenue of Rs.8967.81crore. Since the start of the decade from financial
year 2011, GCPL grew its top-line at a compounded annual growth rate of 19.41%.
Meanwhile, Godrej Properties is growing at an even faster rate with top-line growing at a
compounded annual growth rate of 80.02% since listing on 5 January 2010. However, it is much
smaller in size with profit of Rs.231.10crore on revenue of Rs.2633.96crore for fiscal 2016. The
third company, Godrej Agrovet, is unlisted and growing its top-line at a compounded annual
growth rate of 16.85 % since fiscal 2011. The agri-business company, which is part of Godrej
Industries Ltd, closed the fiscal year 2015 with profit ofRs.203.13 crore and revenue of
Rs.3,481.60 crore, according to the latest available data with financial data services company
Capital Line.
However, it will not be easy to achieve its targets.
Sahil Ansari roll no. 2 retail management

First, the Group's aspiration is coming at a time when Indian consumer companies are
floundering because whether a good monsoon can revive rural demand and also central
government pay hikes will have that significant impact. If demand remains sluggish but input
costs begin to increase, that's a risk to watch for all Indian consumer companies. "Volume and
margins may in the short term remain stressed because of increased competition and increasing
commodity costs. Moreover demand recovery is still to be seen," said Sanjiv Bhasin, executive
vice president-markets and corporate affairs at India Infoline Ltd (IIFL).
As such it may take more than a year for the consumer company to get back on the growth track.
Given everything is on track with GST, good monsoon and economy going back to 8%-9%
growth even then, "Full recovery is 12-18 months away," said Vivek Gambhir, managing
director and chief executive officer, GCPL, while explaining that while pickup is expected to
start by September-October there usually is a lag effect and typically for consumer packaged
companies it takes 3-4 quarters before complete recovery happens.
However, smaller companies like Godrej Properties, have been expanding fast. Godrej Properties
footprint has grown at a fast pace as it sold real estate worth $ 2.1 billion (Rs.140.15 crore) over
the last four years, according to a July report by Ashika Stock Broking Ltd, which notes that
even though the overall real estate prices have been stagnating over the last two years on slowing
consumer demand, Godrej Properties has been performing relatively well. Since listing on 5
January 2010, Godrej Properties has outperformed the BSE Realty Index by giving around
51.25% positive returns versus 59% negative return of BSE Realty Index.
The company has been aggressive about growth even as Godrej Agrovet making two
acquisitions in the past year in the high growth sectors of dairy and agro- chemicals.
In December the company increased its stake from 26% to 51% in Creamline Dairy Products Ltd
which owns the Jersey brand of milk and its derivatives. Creamline expects to close 2015-16
with more than Rs.1, 000crore in sales in March 2016 with plans to double revenue in the
coming three-four years, Mint had reported in December.
The acquisition of a majority stake of 52.28% in Astec LifeSciences Ltd can help reverse the
growth slowdown in its agri-business as it diversified. Prior to the acquisition in August Godrej
Agrovet's revenue had not risen for the past two quarters. The sharp drop in animal feed and
palm oil prices (the core businesses of Godrej Agrovet) are weighing on revenue.
Compared with that, Astec's revenue grew 12% in the June 2015 quarter and in the March 2015
quarter, revenue almost doubled. Godrej is looking at even more inorganic growth opportunities
as it plans to go for an initial public offering for the business, according to a July Bloomberg
report.
Sahil Ansari roll no. 2 retail management

“We are growing very well and we have been growing at 35%-40% a year. When we recover,
real estate market will also recover," said Godrej referring to the growth of economy.
Similarly, the introduction of GST along with its thrust on new launches in new categories like
germ protection and fast growing ones like herbal with neem mosquito repellents will help it to
maintain its compounded growth rate of the last 10 years of 25%-30%, he said.
Even the unlisted group companies like Godrej and Boyce Mfg. Co. Ltd known for its furniture,
locks, safes and consumer appliances business are diversifying. In January the company has
acquired a 51% stake in India Circus Retail Pvt. Ltd, which runs an online home decor and
accessories portal indiacircus.com. The company has also diversified its consumer appliances
business into medical refrigeration in the last two years as it looked at growth in a slowing
economy.
So far most of the diversifications have worked. But to achieve its growth targets the company
will have to continue on this journey of acquisitions and diversification. "How well they achieve
this diversification will be the key to accomplishing its growth target," said Bhasin.
Sahil Ansari roll no. 2 retail management

HR POLICIES
• Development/management of human resource policies of the company
• Ensuring compliance of human resource policies of the company to relevant legislation
applicable to the sphere;
• Development of training programs for the personnel of the company;
• Training of personnel;
• Execution of HR management, including recruitment process, employment and further
retention of personnel;
• Development/management of compensation and benefits policies and schemes;
• Development of salary policy and support to the accountant in payment processes;
• Identification of the needs of the personnel and development of programs to meet the needs for
ensuring higher efficiency;
• Reporting to the General Manager and provision of support in all HR related issue.
Sahil Ansari roll no. 2 retail management

AWARDS & RECOGNITION

 In 1897, Godrej introduced the first lock with lever technology in India
 In 1902, Godrej made the first Indian safe.
 In 1955, Godrej produced India’s first indigenous typewriter
 In 1989, Godrej became the first company to introduce PUF (Polyurethane Foam)
 Introduced India’s first and only 100% CFC, HCFC, HFC free refrigerators.

 GCPL, the Highest Ranked Indian FMCG in Asia’s Hot Growth Companies List by Business
Week
 Godrej Consumer Products Ltd. has been ranked 14th in The Best Companies to Work For
study. This study was jointly conducted by Business Today, Mercer and Taylor Nelson Sofres
(TNS) Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India survey
 GCPL ranked 15th in Great Places to Work 2006 survey The Corporate Citizen of the Year
Award given by Economic Times. Flagship brands Good knight, Cinthol and Ezee selected
Superbrands by the Super brands Council
 Godrej Sara Lee, the JV between the Godrej Group and Sara lee Corporation, USA is
acknowledged the Worlds largest mat manufacturers and South Asia’s largest manufacturers of
Coils.
 Godrej Consumer Products Limited, adjudged as a Business Super brand by the Super Brands
Council.
Sahil Ansari roll no. 2 retail management

CSR (CRPORATE SOCIAL REPORT)

They believe that environment, safety and health are important components of any well- run
business and would like every member of the Godrej parivar, and the extended family, to
inculcate these values. Godrej Company has a green image; the credit goes to Godrej founders.
Until 1995Godrej had not publicized their efforts. They were doing things for the joy it gave
them.
It was in 1996 that they adopted the Systems approach and then the entire business was involved
in changing processes and setting procedures to give due consideration to the mangroves. As a
matter of fact, some of the businesses found that the conservation of mangroves actually helped
them in strengthening business relationships with clients, government and customers. ¬
MANGROVE DEVELOPMENT: Mangroves are essential to the ecology of the coast and the
island. They provide fertile ground for fish to feed and breed in and nurture a large variety of
birds. Mangrove conservation has been the key focus of the Environment Cell. The Environment
Cell has a broad mandate to mentor and monitor all their activities so as to ensure high standards.
The residential township and community around the company is also a focus of their
Environment Cell. (MANGROVE AREA VIKHROLI) BNHS and the Soonabai PhirojshaGodrej
Foundation made efforts to replant mangroves in Vikhroli-Ghatkopar in the early 90s.
Sahil Ansari roll no. 2 retail management

Corporate restructuring of Godrej:

In 2014 the Godrej Company decentralized its decision making in its domestic operations,
disbanded its international head of operations post.
In the year starting April 1, the personal and home care products maker decentralized decision
making in its domestic operations, placing greater emphasis on state-level operations.
Internationally, it disbanded the position of a global head of operations, appointing cluster heads
who have also become a part of the management committee reporting directly to Vivek Gambhir,
who became managing director on 1 July 2014.
As a rule, the international geographic heads have reported to the head of international
operations. With this position being disbanded, the company had created three international
clusters—Rest of Asia, which is Indonesia and West Asia; the UK and Latin America, and
Africa.
At the state level, regional heads were now responsible for profitability and maintaining a profit-
and-loss account. This is different from the past practice in which the regional sales teams were
only given revenue targets and only one India-level profit-and-loss account was maintained.
The change came as the company was gaining in size and also with the realization that a state-
level focus would empower regional teams to be more agile, said Gambhir.
The greater focus on profitability came in the wake of the economic downturn that had led to
slower sales growth, making it necessary for companies to save on costs.
“Given the uncertainty in the environment, we have to create a culture that fires on all cylinders.
One has to be agile and one has to be relentless in execution. We have to do things
differently...maybe explore digital, which we haven’t done before," said Gambhir.
Sahil Ansari roll no. 2 retail management

In 2016 the company was seeking approval from its shareholders at the upcoming AGM on
August 11 for its plans to invest Rs 600 crore in its groups, Godrej Properties and Godrej
Agrovet - through subscription/purchase of shares.

"The company proposes to invest in its subsidiaries, Godrej Properties Ltd (GPL) and Godrej
Agrovet Ltd (GAVL) up to an amount of Rs 300 crore, each, as it considers it to be a good
investment opportunity," Godrej Industries said in a letter to shareholders.

While GPL is into real estate development and GAVL is an agri-business company.

Godrej Industries' current investment in GPL is Rs 726.78 crore holding 56.73 per cent stake,
while in GAVL it has invested Rs 143.98 crore with a shareholding of 60.81 per cent.

The company is also seeking approval from its shareholders to enable it to "acquire by way of
subscription, purchase or otherwise, the securities of GPL and GAVL, exceeding 60 per cent of
its paid-up share capital, free reserves and securities premium account or 100 per cent of its free
reserves and securities premium account, whichever is more."
Besides, Godrej Industries is also seeking approval for "reappointment and terms of
remuneration of N B Godrej as Managing Director of the company, for a period of three years
from April 1, 2017 to March 31, 2020".
Sahil Ansari roll no. 2 retail management

Conclusion

The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion, a
workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven its
ability to deliver strong financial performance. The philanthropic activities by the chairman
Mr.ADI GODREJ and other family member seven before the word CSR was known has made
the Godrej group one of the most trusted business house in India. Today the group holds an
example of ethical and most transparent group of business who is concerned not only to
maximize shareholders value but at the same time invests responsibly in social and
environmental welfare. The Godrej Group is today one of the most accomplished and diversified
business houses in India. Godrej’s success has been driven by the company’s commitment to
delivering innovation and excellence. Through the consistent application of this commitment and
a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and
reliability