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FY Investor Update


									                                   Industries Limited

                     FY 2008-09 Investor Update
                                   27th May 2009

GIL – FY 2008-09 Investor Update                        1/30
•   Key Corporate & Business Updates

•   Consolidated Results
       Financial Overview

       Balance Sheet

•   Business Structure


       Performance highlights – Subsidiaries, JVs and Associates

      GIL – FY 2008-09 Investor Update                             2/30
     Key Corporate & Business

GIL – FY 2008-09 Investor Update   3/30
                                        Corporate Highlights
• Global recognition for innovation – Businessweek’s list of top ‘unsung innovators’
     – Selected amongst five Indian companies to be stars of the future globally.
     – Customer-relationship software acknowledged as an innovation breakthrough.

• GIL has achieved an overall ranking of 155 in Economic Times’ ET 500 survey
  (Oct 2008) and is amongst the top 100 wealth creators.
• Godrej Industries Limited has debuted 12th in the “Best Companies to work for in
  India” survey done by Mercer Consulting and Business Today. This survey ranks
  companies in India across various industries on how well they manage their
  Human capital.

• As per the Thematic Research – Great, Good and Gruesome survey done by
  Motilal Oswal – 13th Wealth Creation Study 2003-2008, Godrej Industries Limited
  has been :
     – Ranked 8th in the top 10 Fastest Wealth Creators.
     – Ranked 64th in the top 100 Biggest Wealth Creators

     GIL – FY 2008-09 Investor Update                                                  4/30
                               Corporate Highlights (contd….)
• GIL has been accredited with ISO 27001 for its Information Security Management
  System by M/s. BSI, a global certifying agency.
• ICRA assigned credit ratings for Lines of Credit (LOC) as under:
     – Commercial Paper : A1+ (limits enhanced to Rs. 100 cr.)
     – Short Term LOC : A1+
         (Highest credit-quality carrying lowest credit risk)

     – Long Term LOC : LAA
         (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

• 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

     GIL – FY 2008-09 Investor Update                                                       5/30
                                Corporate Highlights (contd…)

• Sale of Godrej Global Solutions Limited (BPO in healthcare, finance and
  accounting) to Tricom India Limited.

• Sale of 100% stake in Godrej Hicare Limited to ISS Facility Services India Pvt. Ltd.
  (ISS). ISS is a part of ISS A/S Group which is one of the world’s largest facility
  services provider.

• Final Dividend proposed for FY 2008-09 is Rs. 1.25 per equity share of Re. 1/-
  each (previous year Rs. 1.25 per equity share of Re .1/- each)

     GIL – FY 2008-09 Investor Update                                                    6/30
                                Corporate Highlights (contd…)
Corporate Social Responsibility

• 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.

• GIL has contributed and supported various causes and initiatives in the areas such
  as health, medical care and treatment, education, social awareness on health,
  environment and social welfare.

• 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.

     GIL – FY 2008-09 Investor Update                                                   7/30
                               Corporate Highlights (contd…)
Corporate Social Responsibility (contd…)
• In our efforts for betterment of the environment and conservation of natural
   – 8500 sq. mtrs. of roof area has been covered under the ‘ Rain water
     harvesting’ initiative undertaken at our factory and staff quarters at Vikhroli.
   – Undertook recharging of two bore-well with rainwater.
   – Shredding machine was installed at Vikhroli factory to convert the bio-
     degradable waste into bio-compost with the help on an NGO.
   – Developed new irrigation network at Valia factory and planted 3000 saplings.
   – Upgraded Effluent Drainage System carrying effluent plants. Efforts are made
     to convert waste from the factories into an environment friendly product.

    GIL – FY 2008-09 Investor Update                                                    8/30
                Consolidated Results

GIL – FY 2008-09 Investor Update       9/30
                                   Financial Highlights
                                                                          Rs. crore

                       Particulars             FY2009         FY2008           %

                       Total Income #               3564            3082        16

                       PBDIT *                       278              336      (17)

                       Depreciation                    47              51

                       Interest                      100               75

                       PBT *                         131              210      (38)

                       PAT                           111              168      (34)

                * - Incl. exceptional items but excl. prior period and extraordinary items.
                # Incl. other income and exceptional items.

GIL – FY 2008-09 Investor Update                                                              10/30
                                                 Balance Sheet

                                                                                               Rs. crore
                         Liabilities                                           Assets
                                31-03-09         31-03-08                         31-03-09     31-03-08

Capital*                                   150        131 Net Fixed Assets**             999      1055

Reserves                               1371          1323 Investments                    653        218

Debt                                   1574          1050 Net Current Assets            1368        918

Def. Tax Liability                          50         52 Cash & Bank bals.              125        365

Total                                  3145          2556 Total                         3145      2556

* - Capital includes Minority Interest
** - Net Fixed Assets includes Goodwill on Consolidation

        GIL – FY 2008-09 Investor Update                                                            11/30
                                            Key Ratios

                                                  FY2009            FY 2008
                                                    (%)               (%)

                        PBDIT Margins                7.8              10.8

                        PBT Margins **               3.7               6.8

                        PAT Margins                  3.1               5.4

                        ROCE*                        8.1              14.2

               * On Average Capital Employed
               ** Incl. exceptional items but excl. prior period and extraordinary items

GIL – FY 2008-09 Investor Update                                                           12/30
            Segment-wise Contribution to Financials – FY2009

            Revenue (Rs. crore)                                                PBIT
                  518                                        Particulars                     Rs. crore
                                                             Estate & Property                  124
     105                                                     development

   177                                                       Household Insecticides             32
                                                             Finance & Investments              105
   195                                                       Chemicals                          (18)
                                                             Animal Feeds                       30
    271                                                      Beverages & Foods                  (3)

                                                             Veg Oils                           0^
                                                             Others                             63
                                                                 ^ less than Rs. 0.5 crore
CHEMICALS                                   ANIMAL FEEDS
VEGO ILS                                    ESTATE & PRO PERTY DEVELO PMENT
FINANCE & INVESTMENTS                       O THERS

         GIL – FY 2008-09 Investor Update                                                                13/24
                Performance Highlights
Major Subsidiaries, JVs and Associates

GIL – FY 2008-09 Investor Update         14/30
                                                   Business Structure


                                     Own business
                               Chemicals, Estate Mgmt.
                               Vegoils, Finance & Invt.

          Godrej                  Godrej              Godrej                Godrej               Godrej
                                 Consumer                                                                             Other
          Agrovet                Products             Hershey             Properties           Hygiene Care        Investments
           75.2%                   21.6%               43%                   80.3%                  100%

                                  Keyline             Nutrine              Various             Godrej Sara Lee
                                  Rapidol           Confectionery
                                 Godrej SCA                                                           20%

Golden Feed          Natures                         Cauvery Oil             JVs                 Subsidiaries in
                                       Godrej Oil
 Products                                              Palm           Godrej Tyson Foods       India, Bangladesh
                     Basket              Palm
                                                                       ACI Godrej Agrovet        and Sri Lanka
   100%               100%                   80%          51%          Godrej IJM Palm oil
                                                                    Godrej Goldcoin Aquafeed

          GIL – FY 2008-09 Investor Update                                                                                       15/30
Company                             Business                                      Investment at   Holding
                                                                                    cost (Rs.       (%)
Godrej Consumer                     FMCG, Personal and Household Care                 492          21.6
Products                            Products
Godrej Properties                   Real Estate and Property Development              185          80.3

Godrej Agrovet                      Animal Feed, Agri-inputs, Poultry, Oil Palm       163          75.2
                                    & Rural & Urban Retailing
Godrej Sara Lee                     Household Insecticides                             47          20.0
( through 100% subsidiary)
Godrej Hershey                      Food, Beverages and Confectionary                 177          43.0

Godrej International                International Trading                              17          100.0

Others (CBay,                       Medical Transcription, Bio- Technology,           114            -
Avesthagen, Verseon,                KPO, BPO, etc.
Compass etc)
Total                                                                                 1195           -

            GIL – FY 2008-09 Investor Update                                                              16/30
                                            Other Investments (major)

Company                          Business                                     Investment at   Holding
                                                                                cost (Rs.       (%)
CBaySystems                      Medical transcription, Accounts Processing        38           5.3
Holdings Limited                 and Patient Financial Services

Verseon Corporation              Computer Aided Drug Discovery                     15           8.7

Avesthagen Limited               Bio – Technology                                  11           4.4

Boston Analytics Inc             KPO                                               22          18.6

Compass BPO                      BPO                                               2           20.7

Others                                                                             26

         GIL – FY 2008-09 Investor Update                                                             17/30
    Godrej’s New Brand Identity Initiative
Group marketing and branding strategy to enhance strategic focus on
Consumers and Brands
Godrej 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.

      GIL – FY 2008-09 Investor Update                                                 18/30
            Godrej Chemicals Division (Oleo-chemicals & Surfactants)
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.

Financial Performance -
Consolidated FY 2008-09 revenue increased by 12% to Rs. 778 crore from Rs. 692 crore.
Key Highlights –
    •   Unprecedented rapid crash in commodity prices, steep depreciation in Rupee vis-à-vis Dollar,
        curtailment in the supplies of natural gas and depressed demand owing to global recession
        has affected business performance.
    •   Developed a new variant of Fatty Alcohol approved by leading overseas customers
    •   Erucic Acid business has gone up by 115% yoy.
    •   Specialty Fatty Acid business has gone up by 336%
    •   Exports increased by 7% for FY 2008-09
    •   Exporting to more than 65 countries.
    •   Exports account for 41% of the Division’s turnover.

        GIL – FY 2008-09 Investor Update                                                            19/30
                                           Godrej Agrovet (GAVL)
         (Animal Feeds, Agri Inputs, Poultry, Oil Palm & Rural Retailing)
Overview: Diversified agribusiness including animal feeds, oil palm plantation, poultry and
agricultural inputs.
Financial Performance
Consolidated FY 2009 revenue growth of 15% from Rs. 1298 crore to Rs.1493 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.
    •   New products launched :
         – premium high fat high milk yielding compound feed re-launched under the Brand
         – 10% starter and 10% finisher concentrate introduced in broiler feed for small broiler
           integrators under the name “HPBC”.
    •   GAVL operates through 40 production units across India.
    •   This business undertakes R&D at its dedicated centre. Innovative animal feed products
        include “Godrej Crumbro” and “Godrej Bypro”.
    •   Strategic linkages for sourcing, focus on quality, cost control have yielded good results.
        GIL – FY 2008-09 Investor Update                                                             20/30
                                           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 specific territories to corporates for the
development of oil palm plantations. Growers are required to sell the entire production of Fresh
Fruit Bunches (FFB) at a pre-determined price linked to output price set by the Government.
Highlights of the Business
    •   Currently GAVL have been allocated territories with a potential of over 170,000 hectares of
        palm plantations and have recently been awarded additional areas in Gujarat. GAVL also
        has operations in Andhra Pradesh, Goa, Mizoram, Orissa, Tamil Nadu, and Karnataka.
        Total area under cultivation as on 31st March 2009 is about 25000 hectares of which about
        6800 hectares bearing fruits and about 18200 hectares under growing stage.
    •   Additional area brought under cultivation during FY 2008-09 is about 7100 hectares
        (previous year about 5300 hectares).
    •   The size of the allotments reflects the strengths of GAVL, including a strong brand,
        reputation amongst farmers and excellent service.
    •   An integrated process: GAVL makes complete use of the fruit bunch. Waste from the oil
        extraction process is used as fuel to power plants and factories.
    •   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.
        GIL – FY 2008-09 Investor Update                                                          21/30
                                          Godrej Agrovet (GAVL)
            (Animal Feeds, Agri Inputs, Poultry, Oil Palm & Rural Retailing)

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 the front end of the production process including processing and marketing
chilled chicken. This is delivered through the brand “ Godrej Real Good Chicken” and marketing
of ready to cook range through the brand “Godrej Yummiez”.
New products launched :
     – Veg Pizza pockets – a ready-to-cook snack with an authentic Italian Pizza receipe under
       the brand ‘Yummiez’.
     – Crispy Onion rings – a ready-to-cook snack with an authentic American style receipe and
       flavour under the brand ‘Yummiez’..
     – ‘Curry cut’ under Real Good Chicken brand.
Agri inputs: GAVL has a well established Agri inputs business covering plant growth promoters,
organic manure mix, pesticides and other innovative agri input products.
New products launched :
    – “Hitweed”, a herbicide

       GIL – FY 2008-09 Investor Update                                                        22/30
                              Godrej Consumer Products (GCPL)
                                   (FMCG – personal and household care)

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.
    •   Launched new range of products :
          – “Cinthol Fresh Aqua” under the Cinthol brand.
          – New variant of soap “Godrej No. 1 – Strawberry and Walnut” for the first time a combination of
            strawberry, walnut and milk cream.
          – Hair colours under ‘Godrej Expert Hair Colour’ brand in powder and liquids.
          – New range of liquid detergent, Ezee Bright and Soft.
          – New range of Cinthol Deo Sprays endorsed by popular Bollywood star and youth icon Hrithik Roshan.

    •   Relaunched new range of products :
          – “Godrej FairGlow” in a new and improved packaging in three new fragrances – Floral Essence, Rose
            Wonder and Lily Sensation
          – Keyline brands relaunched Riemann range of Perspirex products.

        GIL – FY 2008-09 Investor Update                                                                   23/30
                 Godrej Consumer Products (GCPL) (contd…)
                                  (FMCG – personal and household care)

Key Highlights (contd…) :
   •   Fourth Interim dividend declared – 75% and proposed Final dividend – 75% taking the total to
       400% for FY 2008-09.
   •   Ranked among the top 25 Best Employer in Asia & 11th Best Employer in India – Hewitt Best
       Employers in India, 2009 study.
   •   Ranked 6th in the ‘Best Companies to Work for in India’ survey conducted by Mercer
       Consulting and Business Today.

Financial Performance:
   •   Consolidated FY 2008-09 revenue increased by 26% to Rs. 1393 crore from Rs. 1103 crore.
   •   Consolidated PBT FY 2008-09 up by 12% from Rs.188 crore to Rs. 209 crore.
   •   EPS for FY 2008-09 - Rs. 6.80

       GIL – FY 2008-09 Investor Update                                                         24/30
                                           Godrej Properties (GPL)
                                 (Real Estate and Property Development)

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 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 80.3% equity in GPL.

        GIL – FY 2008-09 Investor Update                                                      25/30
                                Godrej Properties (GPL) (contd…)
                                  (Real Estate and Property Development)
Business Highlights:
     •   GPL has inked an MOU with the Ahmedabad Municipal Corporation for the development
         project - “Godrej Garden City”.
          – This would be one of the founding projects under the Clinton Climate Initiative
            launched by President Bill Clinton, to demonstrate that large scale urban projects can be
            ‘climate positive’
          – The project would strive to reduce the amount of on-site CO2 emission below zero.
     •   Well diversified portfolio spread across established Tier I and emerging Tier II and III
     Financial Highlights:
     •   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
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 and the respective websites of the BRLMs at and
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.”
         GIL – FY 2008-09 Investor Update                                                                         26/30
                                  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:
'Maha Choco’, the new hard boiled candy became the third largest product in the confectionary
New Products launched / initiatives taken during the year:
    • New candy products – “ Nutrine Santra Goli” and “ Nutrine Eclairs ( cream center)”
    • The new 'Maha Choco’ candy was rolled out with media campaign featuring Brand
        Ambassador, M S Dhoni which has received good response from consumers. GHL has
        also upgraded the packaging and presentation of the confectionery to make it look more
    • Launched “Back of School” confectionery gift packs and lower price point packs.
    • Ramped up the sales of Health drink Hershey Milikmix, Sofit and new mix of Nutrine
    • Significant progress with distribution of ‘made in India’ Hershey Chocolate syrup.

       GIL – FY 2008-09 Investor Update                                                        27/30
                       Godrej Hershey Limited (GHL) (contd…)
                         (Foods, Beverages, confectionery businesses)

Financial Performance:
    •   Consolidated Revenue growth of 24% yoy from Rs. 335 crore to Rs. 415 crore
    •   Confectionery sales increased by 25% yoy.
    •   Beverages sales higher by 45% yoy.
    •   Pulp & Processing segment sales up by 43% yoy.

        GIL – FY 2008-09 Investor Update                                             28/30
                                          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
     • “HIT” Brand under the Aerosol segment crossed Rs. 150 crore mark in FY 2008-09.
           – Voted ‘Trusted Brand 2009’ in the Household Insecticide industry and in an independent
              consumer survey conducted by Reader’s Digest.
     • New products launched during the year :
           – Brylcreem Hybridz
           – Good Knight
                   Advanced Low Smoke Coil
                   Advanced Aerosol
          – Ambipur Aromatherapy – Lavendar Spa and White Lilies spray endorsed by popular
            Bollywood star and youth icon Soha Ali Khan.
    • New Television communications for Good Knight Aerosol won international accolades.
    • Aerosols segment grew by 20% yoy.
    • HIT segment increased by 15% yoy.
    • Good Knight Brand sales up by 10% yoy.
Financial Performance :
    • Consolidated FY 2008-09 revenue growth of 16% from Rs. 665 crore to Rs.771 crore.
    • Consolidated FY 2008-09 PAT growth of 19% from Rs. 87 crore to Rs. 104 crore.
       GIL – FY 2008-09 Investor Update                                                        29/30
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

 Thank You

        GIL – FY 2008-09 Investor Update                                                         30/30

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