GPCL-SWOT ANALYSIS

SWOT ANALYSIS

Strengths: characteristics of the business or team that give it an advantage over others in the industry. Weaknesses: are characteristics that place the firm at a disadvantage relative to others. Opportunities:externalchances to make greater sales or profits in the environment. Threats:externalelements in the environment that could cause trouble

FMCG-Overview
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Fast Moving Consumer products. 4th largest sector in the Indian economy Principal constituents : Household Care, Personal Care and Food & Beverages. Products are sold frequently at relatively low cost & consumed over a short period. Growth in the FMCG continues in spite of recession

COMPANY DESCRIPTION
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Started in 1897 as a locks manufacturing company. In 1930, became the first company in the world to develop the technology to manufacture soap with vegetable oils.

Leading manufacturer of goods and provider of services in a multitude of categories (FMCG). 350 million people across India use Godrej products. Workforce of approximately 18,000. Strong diversified portfolio. Ability to deliver strong financial performance.

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COMPETITORS OF GCPL
Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestl India AMUL Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

Strengths

The company has got wide range of branches with in the country. The Company haswide range of product line Respectable andbelievable brandname Gaining value share in hair color category with rural thrust through successful rollout of the partnership with barbers across the country Strong distribution Strong R & D High spending on Advertisement and marketing (20% of capital investment)

Weaknesses

Lower scope of investing in technology and achieving economies of scale, especially in small sectors Low exports levels Me-too products Godrej has no soap in premium segment which its competitors has.

Opportunities

Untapped rural market Rising income levels Large domestic market- a population of over one billion. Export potential High consumer goods spending Recent acquisitions present strong integration opportunities Fast growing beauty market (growing at 13% annually)

Threats

Inflationary pressures and other factor affecting demand for our products Increasing costs of raw material, transport and storage Supplier and distributor relationships and retention of distribution channels Competitive market conditions and new entrants to the market Labour shortages and attrition of key staff Exchange rate fluctuation and arbitrage risk Integration risks for acquired companies Seasonal Fluctuations Political risks associated with unrest and instability in countries where the company has a presence or operates Removal of import restrictions resulting in replacing of domestic brands