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CREATING OPPORTUNITY IN ADVERSITY

Analyst and Investor Conference 2009 – 19 May 2009

GCPL’s Global Presence


Domestic Manufacturing Facilities

Indian Economy Overview


‰ Holding ground in midst of the current global financial crisis-
continues to grow

‰ Fiscal and monetary stimulus packages improve confidence, infuse


liquidity

‰ Excise duty rationalisation, interest rates cuts further strengthen


sentiment

‰ Rural economy and small towns driving growth

‰ Election results are expected to bolster business confidence and


give impetus to financial & tax reforms

‰ FDI from March – September 2008 increased by 137% to US$


17.21 billion
FMCG – Well poised despite a
challenging macro economy
‰ Consumer demand both urban and rural continues to be strong
‰ Demand growth estimated over 20% in rural markets

‰ Rural consumption levels are expected to rise to current

urban levels by 2017

‰ Share of wallet for FMCG products increasing

‰ Commodity prices at lower levels as compared to H1 2008-09

‰ Price increases taken in earlier part of the year well accepted

‰ Modern trade expected to grow in the future though currently


under pressure

‰ India expected to become world’s fifth largest consumer market by


2025 (McKinsey Global Institute)

GCPL-Performance Perspective

‰ Focus on topline – thrust on growing brand franchise

‰ Efficiency thrust : Bringing down fixed and variable costs through


specific target cost improvement programs

‰ Brands straddle the price pyramid

‰ Strong Performance across all brands and several new


launches/re-launches
ƒ Godrej No.1 – Strawberry & Walnut

ƒ Cinthol “Deo Musk” soap & deo spray

ƒ Cinthol “Fresh Aqua” soap

ƒ Godrej Expert Powder Hair Colour in 4 shades - Burgundy,


Gentle black, Natural Brown & Dark Brown
Outline
ƒ Operations and Developments
- Domestic Businesses
- International Businesses

ƒ Financial perspective

ƒ Outlook

Operations & Developments


Domestic Businesses

Hair
Colourants

Toiletries Liquid Detergents

Soaps

Sales Growth (Standalone)


46% 25% 20% 13%
2305
8000 7056 2500
2047
5666 2000
6000
1500
4000 1000 693 578
1821
2000 1244 500
0
0
Q4 0809 Q4 0708 FY 0809 FY 0708
Q4 0809 Q4 0708 FY 0809 FY 0708
Hair Colour (Rs. Million)
Toilet Soaps (Rs. Million)

12% 8%
18% 11%
500 429 750 620
385 575
400
500
300

200
250 146 166
55 67
100
0 0
Q4 0809 Q4 0708 FY 0809 FY 0708
Q4 0809 Q4 0708 FY 0809 FY 0708
Liquid Detergents (Rs. Million)
Toileteries (Rs. Million)
Soaps
New launches…
Godrej No. 1
Cinthol Fresh Aqua Strawberry
& Walnut variant

Cinthol Musk

Godrej FairGlow relaunched in 3


new fragrances

Soap – Industry Perspective


‰ Category grew 18% in FY09 as per AC Nielsen

‰ Price changes implemented across industry

‰ Vegetable oil prices are at lower levels as compared to H1


0809
GCPL Perspective
ƒ Continues to be the second largest toilet soaps player
‰ Market share as reported by Nielsen at 9.9% in Q4 2009
‰ Commercial production commenced at the new Chemical and Soap
Noodle Plant at Malanpur

ƒ Encouraging Performance by Reputed brands

Cinthol ‰ Launched Deo Musk & Fresh Aqua variants

‰ Continues to be the largest selling Grade 1 soap in the


Godrej No. 1 country and the third largest brand by volume
‰ Continues successful varianting strategy with the
launch of a Strawberry and Walnut variant
‰ Godrej No.1 is market leader in states of Punjab,
Haryana, Himachal & Gujarat

Soaps : Value Growth

25 25.0

21.0
20 19.3
17.5 18.1
16.4
15.2
15 13.3
Percentage (%)

9.0 9.6
10 8.0

4.6
5 3.2
2.4

0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
-1.3
-5

-7.3
-10

Industry GCPL brands

Source: AC Nielsen for Industry figures


Company data for GCPL figures
Soaps : Revenue, Market share
Q4 FY08-09 Market Share: 9.9%

1950 15
14
13
12

10.0 10.2 11
9.4 9.7 9.7 9.9
1450 9.2 10

Percentage (%)
9.2 9.1 9.1
8.6 8.7
9.5 9
Rs million

1833

1834

1821
7

1638
1628
6

1453
950 5

1341
1265

1240

1244
1179
1066 4
3
985

2
1
450 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY06 FY07 FY07 FY07 FY07 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09

Revenues Mkt share


Source: AC Nielsen data % for All India
value MS

Soap – Strategy Going Forward


‰ Godrej No.1
• Successful varianting strategy
• Aggressive growth of low unit packs – Rs.5 / Rs.10 price
points
• Improve brand profitability

‰ Cinthol
• Strengthen the brand’s deodorancy credentials
• Maximize potential in core states

‰ Reaching the rural consumer


• Double reach
• Strengthen rural portfolio

‰ Optimize / improve cost efficiencies


Hair Colourants
…New initiatives

Godrej Expert Powder


Godrej Expert Couple Pack Hair Colours

Godrej Expert
Liquid Hair Colours

Hair Colourants – Perspective

‰ Category growing at 19% in FY09*

‰ GCPL market share in Q4 09 at 32.6% - category leader

‰ Godrej Expert PHD, Renew PHC rejuvenates GCPL, drives growth


during the year. Growth expected to be sustained

‰ Aggressive thrust on revitalizing category

* AC Nielsen
GCPL Presence
ƒ Range across formats & brands
o New range of colours launched
Godrej Expert o Powder range available in 4 shades –Gentle Black, Burgundy,
Dark Brown and Natural Brown
Hair Colour
o Five expert benefits including
- Colour Balance Technology
- shampoo based colour
- no ammonia
- nourishing conditioner
- perfume

Renew o Renew Hair Creams available in 6 colors, Burgundy, Cinnamon


Red, Light Brown, Light Golden Brown, Natural Black and Natural
Brown
o Renew Powder Hair Colour available in 4 colours

o 100% natural mehendi


Nupur o Mehendi enriched with goodness of amla, brahmi and bhringraj

Hair Colourants : Value Growth


35

30
31.3

25
Percentage (%)

20
19.4

15
25.2
16.4

13.3

13.0
12.5
11.9
20.3

10
16.2

21.7
17.0

16.4

5
8.0
1.2

0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
-2.3

-5

Industry GCPL
Source: AC Nielsen for Industry figures
Company data for GCPL figures
Hair Colourants : Revenue,
800 Market share 70

Q4 FY08-09 Market Share: 32.6%


700
60

600
50

percentage (%)
500 37.7
38.5
Rs million

37.6 40
36.2 35.9 34.9 35.1 34.2 33.7 32.6
400 38.0 32.4
34.9
693 30
300 622
578 570
524 501
473 472 477 445 20
430 419
200 397

10
100

0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
F Y06 F Y07 F Y07 F Y07 F Y07 F Y08 F Y08 F Y08 F Y08 F Y09 F Y09 F Y09 F Y09

Revenue Market share

Figures reported are on a standalone basis Source: AC Nielsen data % for All India value MS

Hair Colour – Strategy Going Forward


‰ Strengthen and extend EXPERT franchise into colours

‰ Evaluate brand choice for premium segment

‰ Aggressive thrust on increasing penetration

‰ Few bolder innovations – Less is more


• Sustained investments
Distribution and Supply Chain
‰ Expanded distribution and supply chain
ƒ 3,000,000 outlets of which 200,000 were added during
FY09
ƒ Acceptance of new products has increased, leading to
wider existence of our SKUs

‰ Aggressive rural thrust: Use of regional media, improved


distribution strengthens presence

‰ Focus on enhancing efficiencies at all levels

International Businesses
Kinky Group
(Pty) Ltd.

Keyline Brands Global Presence


Rapidol Pty. Ltd.
Limited

Godrej Global
Mid East
Exports : Our Reach
GCPL now exports to 33 countries
Exports Sales (Rs. Million)

200
194 9Afghanistan 9Kenya 9Singapore
9Bangladesh 9Liberia 9South
175
155 9Barbados 9Libya Africa
146
150 132 9Canada 9Malaysia 9Sri Lanka
120
125 9Congo 9Mauritius 9Sudan
95 9Fiji 9Mozambique 9Syria
100 83
9France 9Madagascar 9Thailand
75
2002- 2003- 2004- 2005- 2006- 2007- 2008-
9Ghana 9Nepal 9Tanzania
03 04 05 06 07 08 09 9Gambia 9New Zealand 9UAE
9Haiti 9Papua New 9USA
9Indonesia Guinea 9Uganda
9Iraq 9Port of Spain

Keyline Brands Limited


Keyline Brands Limited
‰ Business is growing well

‰ Relaunch of “Aapri” face care exfoliating range,


an advanced range at higher price points

‰ Relaunched “Cuticura” Hand Hygiene range featuring new


variants such as Hand Foamer, Kids wipes, Kids foamer and
Crackling Mousse in Squeezy Orange and Juicy Apple
variants

‰ Relaunch of “Erasmic” shaving range

‰ Bio Oil achieved a “Signature Brand Status” in Boots

Keyline Brands Limited


‰ Efficient supplier to UK’s top retail groups Boots, Superdrug,
Tesco, Sainsbury and Morrisons

‰ Leading brand in the hand hygiene range in UK and P20 is


the largest selling sun-care product

‰ Henara and Touch of Silver purchased in Jan ‘08 have been


doing well & Henara has been re-launched
Keyline Brands Limited Performance

DATE OF ACQUISITION : OCTOBER 31 2005

Rs. Million Q4 0809 Q4 0708 FY 0809 FY 0708


Total Income 435.1 473.1 2006.1 1680.0
PBIT 30.2 61.5 222.0 181.0
Interest (10.7) 9.1 18.6 39.0
PBT 40.9 52.4 203.4 142.0
Tax 5.8 18.9 61.7 49.0
PAT 35.1 33.5 141.7 93.0

Rapidol Pty. Ltd.


Rapidol Pty. Ltd.
‰ Inecto brand continues to be a leader in many countries in
African continent
‰ Available in Famous Originals, Colour Range, Plus, Plus
Highlights, Henna, Powder Hair Colour and Colour care
ranges
‰ Inecto – Super Black the largest selling hair colour sub-
brand in Rapidol launched its 30 years Birthday celebrations
promotions achieving a record growth in sales during Q2
FY09

Rapidol Pty. Ltd.


‰ Inecto Powder Hair Colour and Henna are doing extremely
well
‰ Inecto Highlights launch is showing encouraging success
‰ Launched two new colours Natural Brown and Auburn in the
‘Inecto’ Powder Hair Colours range
‰ “Renew” Hair Colors marketed and distributed by Rapidol in
South Africa for GCPL, has found excellent support
Rapidol Pty. Ltd. Performance
DATE OF ACQUISITION : SEPTEMBER 1 2006

Rs. Million Q4 0809 Q4 0708 FY 0809 FY 0708


Total Income 109.9 88.9 488.1 471.0
PBIT 32.8 23.8 91.1 76.0
PBT 23.2 21.1 89.8 75.0
Tax 6.0 7.4 25.2 22.0
PAT 17.2 13.7 64.6 53.0

Kinky Group (Pty) Limited


Kinky Group (Proprietary) Ltd.
‰ Kinky is a leader in South African hair business with top of the
line imagery

‰ Entry into the natural and artificial hair business – larger


category than hair colour & hair care

‰ Products include hair braids, hair pieces, wigs and wefted


pieces, hair accessories like styling gels, hair sprays and oil
free shampoo

‰ Manufactured at plants located in South Africa at Durban &


Johannesburg

‰ Final products are sold through cash n carry outlets and Kinky
owned stores

‰ Opened 7 new “Kinky” Owned store, taking the total number of


stores to 22

Godrej Consumer Products Mauritius Ltd- Performance


(Holding company of Kinky Group (Pty) Ltd)
DATE OF ACQUISITION : APRIL 01 2008

Rs. Million Q4 0809 FY 0809


Total Income 106.9 513.4
PBIT 8.9 81.9
Interest 28.3 79.5
PBT (19.4) 2.4
Tax 3.3 28.9
PAT (22.7) (26.5)
Godrej Global Mideast FZE (GGME)

‰ Distributes soaps, hair colours and toiletries in UAE and


GCC countries

‰ Cinthol Hand Wash was relaunched in GCC markets

‰ New Cinthol Deo Spray launched, rolled out successfully


in new markets of GCC and the Middle East and being
listed in retail chains

Godrej Global Mideast FZE (GGME)


Performance
DATE OF ACQUISITION : OCTOBER 1 2007

Rs. Million Q4 0809 Q4 0708 FY 0809 FY 0708*


Total Income 30.1 28.7 122.2 49.0
PBIT 0.7 2.1 4.2 3.0
Interest (0.1) 0.8 0.9 1.0
PBT 0.8 1.3 3.3 2.0
Tax - - - -
PAT 0.8 1.3 3.3 2.0

* Represents the performance of the business w.e.f October 1, 2007


International Business – Strategy
‰ Europe
ƒ Focus on cost efficiencies
ƒ Strengthening association with modern trade channels
‰ Africa
ƒ New product launches across the continent
ƒ Expanding number of Kinky stores
ƒ Increasing distribution to rest of Africa in key markets
ƒ Launching Kinky through FMCG retail chains & expanding
availability of products
‰ Middle East:
ƒ Launching larger assortment of GCPL brands in Middle East

Recognitions
‰ Ranked 9th amongst 250 companies in India as the Great Place to
Work - conducted by The Great Place to Work Institute in 2008

‰ Ranked 6th in the “Best Companies to Work for in India” survey done
by Mercer Consulting and Business Today

‰ GCPL ranked as one of the 25 Best Employers in Asia in the Wall


Street Journal Asia – Hewitt Best Employers in Asia 2009 Study

‰ GCPL ranked as the 11th Best Employer in India in the Outlook


Business – Hewitt Best Employers in India 2009 Study
Human Resources
Employee
involvement
across levels
and locations

Continued
employee Human Training and
engagement Development
initiatives
Resources

Integration of
subsidiaries

Total Number of employees: 1495

Social and Environmental Initiatives

‰ The CSR activities carried out at Singwari village:

ƒ Scholarship scheme implemented for SC & ST students


ƒ Provision of financial support to the school for activities, celebration
of national festivals
ƒ Distribution of meritorious awards to students in classes I to VIII
ƒ Organized factory visits as well as visits to historical places at
Gwalior
ƒ Computer awareness training programs organized
ƒ Organized sports and cultural activities for Malanpur Division
ƒ Empowerment program for Women organized

‰ Tree plantation in both the factory premises and Singwari Village School

‰ Importance given to the recruitment of individuals from the under


privileged categories

‰ Street plays organised on HIV-AIDS and social evils like Tobacco and
Drinking
Financial Perspective

GCPL Standalone – FY 2008-09


20% 10%
30% 22%
1937
12000 10843 2000 1742
10000 8867
1500
8000
6000 1000
588
4000 2755 489
2115
500
2000
0 0
Q4 0809 Q4 0708 FY 0809 FY 0708 Q4 0809 Q4 0708 FY 0809 FY 0708

Net Sales (Rs. Million) PBDIT (Rs. Million)

49% 10%
1859 49% 9%
2000 1692 2000
1609
1481
1500 1500

1000 640 1000


555
429 371
500 500

0 0
Q4 0809 Q4 0708 FY 0809 FY 0708 Q4 0809 Q4 0708 FY 0809 FY 0708

PBT (Rs. Million) PAT (Rs. Million)


GCPL Consolidated – FY 2008-09
18% 3%
26% 26%
16000 13930 2500 2125 2185
11026 2000
12000
1500
8000
1000 669 566
3427 2718
4000 500

0 0
Q4 0809 Q4 0708 FY 0809 FY 0708 Q4 0809 Q4 0708 FY 0809 FY 0708

Net Sales (Rs. Million) PBDIT (Rs. Million)

44% 8%
41% 12%
2500 2092 2000 1726
1875 1592
2000 1500
1500
1000
1000 688 587
489 408
500 500

0 0
Q4 0809 Q4 0708 FY 0809 FY 0708 Q4 0809 Q4 0708 FY 0809 FY 0708

PBT (Rs. Million) PAT (Rs. Million)

Yearly Revenue Performance


14000 24
13930

21.4 19.8
12000 18.1 19.0
20
16.8 17.4
19.2
10000
11026

16
Percentage (%)
9515
Rs million

8000 15.3
12
6997

6000
5627

8
4896
4701

4000
4586

4
2000
2185

2125
1500

1823
1069
818

884
771

0 0
FY 02 FY 03 FY 04 FY 05 FY 06 FY07 FY08 FY09
Revenues PBIDT Margin

Figures reported from FY06 are on a consolidated basis


4000 Quarterly Revenue Performance 25
22.4
21.0
19.0

3616
3500 20.3

3465

3421

3427
18.0
18.0 21.0 20
18.3
3000
19.5

2863
18.1

2740

2728
15.0

2718

Percentage (%)
2500
15

2424
Rs million

2376

2380
2318
15.0
2000
1915

12.0
10
1500

1000
5

669
500

583

566
532

530
524

515

498
437
429

425

427
388

0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY06 FY07 FY07 FY07 FY07 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09

Revenues PBIDT Margin


Figures reported from Q4 FY06 are on consolidated basis

Yearly Earnings Performance


2250
2092

2000
1875

1750
1585

1500
Rs million

1250
1321

1000
1726
938

1592

750
1342
766

1208
701
632

500
861
648
536

250
420

0
FY 02 FY 03 FY 04 FY 05 FY 06 FY07 FY08 FY09

Figures reported from FY06 are on consolidated basis


PBT PAT
PAT is before extraordinary items
Quarterly Earnings Performance
700

688
600

500

506

489

489
487
464

445
Rs million

437

428
400
381

372
369
335

300

587
430
200

408

408
396

391
386

371

347
328

310

308
301

100

0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
F Y06 F Y07 F Y07 F Y07 F Y07 F Y08 F Y08 F Y08 F Y08 F Y09 F Y09 F Y09 F Y09

Figures reported from Q4 FY06 are on consolidated basis


PBT PAT
PAT is before extraordinary items

Ratios

Particulars FY 09 FY 08 FY 07 FY 06 FY 05 FY 04
EBITDA Margin (%) 15.3 19.8 19.2 21.4 19.0 18.1
EBITDA per share (Rs) 8.3 9.7 8.1 6.6 4.7 3.9
PBT Margin (%) 15.0 17.0 16.7 18.9 16.7 15.6
PBT per share (Rs) 8.1 8.3 7.0 5.8 4.2 3.4
PAT Margin (%) 12.4 14.4 14.1 17.3 15.3 13.2
PAT per share 6.7 7.1 6.0 5.3 3.8 2.9
EPS (Rs) 6.8 7.1 6.4 5.4 4.0 2.9
Dividend payout (%)* 74.9 72.0 74.0 74.6 89.5 89.3
RoCE (%) 23.0 55.0 55.0 90.0 150.5 106.6
RoNW (%) 30.4 92.8 118.1 154.2 179.7 153.1

Figures reported from FY06 are on consolidated basis


* reported on a standalone basis
Shareholder Perspective
9 5

8.3

8.1
3.75 4
7 3.50 4.00
4.00
6

7.0
3.00
3
5
Rs

Rs
2.25

5.8
4 2.00
2
1.40
3

2
1
3.1

4.2
1
2.8

3.4

0 0
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09

PBT per share Dividend per share


Note: Figures calculated above are on a face value of
Re 1 per share Figures reported from FY06 are on consolidated basis

Dividend
1200 100
89.3 89.3 89.5

80.3
1000
74.6 74.0 72.0 74.9 80

800
Percentage (%)

60
Rs million

600
1031
928

40
847
790

400
679
513
463

20
200
325

0 0
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY09

Dividend Payout ratio


Payout ratio for FY2006 to 2009 lower due to
funding of acquisitions and expansion plans
Figures reported are on a standalone basis
400% - dividend for FY2008-09
Income Tax
400 40

33.6

300 30

Percentage (%)
23.5

283
Rs million

200 17.5 20
15.3

15.4
8.2 15.1
213

366
100 8.5 10
165

243
118

113
77

0 0
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY08 FY09
IncomeTax Tax rate
Figures reported from FY06 are on consolidated basis

Income Tax inclusive of current , deferred tax and fringe benefit tax

Deployment of Rights Issue


Proceeds
‰ Total amount raised through this issue, Rs 3960 million

‰ Of the total proceeds, around Rs 650 million deployed towards


repaying high cost debt

‰ Unutilised issue money amounting to around Rs 3198 million invested


in high security investments

‰ Additional 32,232,316 shares were issued and upon completion, total


amount of shares outstanding are 258,076,392 equity shares

‰ Rights Entitlement Ratio - issue of 1 equity share of face value of Re.1


each to be issued for every 7 equity shares of the face value of Re.1
each
The Way Forward

Outlook
ƒ Domestic Businesses:
ƒ Reinvigorating the hair colour business. Focus on enhanced visibility,
presence across the price spectrum, growth in market share

ƒ Strengthening and widening rural penetration

ƒ Explore viable opportunities to expand product portfolio

ƒ International Operations:
ƒ Taking GCPL products into more geographies

ƒ Expand Rapidol and Kinky network

Concurrently exploring viable acquisition opportunities


both in India and overseas