Report

ON

Family business (Godrej and Raymond)

A project report submitted in partial fulfilment of the requirements

For the award of the degree of

MASTERS OF BUSINESS ADMINISTRATION

By

Putturu Jagadeesh

(121923602032)

Under the esteemed guidance of

Dr Manjusri naidu

GITAM INSTITUTE OF MANAGEMENT

GITAM Deemed To Be University

 Godrej
Introduction :-

Established in 1897, the Godrej Group has its roots in India's Independence and Swadeshi
movement. Our founder, Ardeshir Godrej, lawyer-turned-serial entrepreneur failed with a few
ventures, before he struck gold with a locks business.
Today, we enjoy the patronage of 1.1 billion consumers globally across consumer goods, real
estate, appliances, agriculture and many other businesses. In fact, our geographical footprint
extends beyond Earth, with our engines now powering many of India's space missions.
With a revenue of over USD 4.1 billion we are growing fast, and have exciting, ambitious
aspirations. Our Vision for 2020 is to be 10 times the size we were in 2010.
But for us, it is most important that besides our strong financial performance and innovative,
much-loved products, we remain a good company. Approximately 23 per cent of the promoter
holding in the Godrej Group is held in trusts that invest in the environment, health and education.
We are also bringing together our passion and purpose to make a difference through our Good &
Green strategy of 'shared value' to create a more inclusive and greener India.

History :-

HISTORY- GODREJ

A young man gave up law and took up lock making. Events in the Godrej
Story are only the small visible pieces of a larger continuously emerging
picture - a picture alive and palpable in the mind of one man: the young
lawyer-turned-lock maker - Ardeshir Godrej. He was the first Indian
manufacturer to displace well entrenched foreign brands from the market.

The word Godrej, etched into the metal of his locks, became a symbol of
self reliance for the generations that followed. With each new product
Ardeshir changed perceptions about industry in India. He produced the
finest security equipment, and then stunned the world by creating soap
from vegetable oils. What started as a dream had become a movement .But
it was left to another man to carry it forward, Ardeshir's brother, Pirojsha
Godrej.

Pirojsha Godrej laid the foundations for a throbbing enterprise at a

sprawling industrial garden township outside Mumbai.

It was here that the Godrej vision took concrete shape. In later years, its
extent and scope was expanded greatly by his sons - Burjorji and
Naoroji, Sohrabji. To this day, products that compete with the best in the
world continue to come from the gates of Pirojshanagar. Godrej touches
the lives of millions of Indians everyday. To them, it is a symbol of
enduring ideals in a changing world. Every product, every new concept
gives shape to their visions of tomorrow.

Family Tree :-
 Succession plan :-

One key reason why the succession plan succeeded was it was smooth and subtle, according to
Godrej insiders. Each of the Godrej scions identified their individual strengths and took on roles
wherein they would collaborate with non-family professionals. “What you see today in the group
is based on their (his children’s) thinking,” says Adi Godrej. “Over the last decade, they have
both set the strategy and put the people in place to deliver results.”

The Godrej group is a large Indian conglomerate operating in the consumer products, real estate,
consumer durables and animal feed businesses among others. Adi Godrej is a third-generation
promoter and the current chairperson of Godrej Industries Limited, while his brother Nadir is the
Managing Director for the same company. His cousin, Jamshyd Godrej is the chairperson of
Godrej and Boyce, the consumer durables arm of the group. Adi Godrej has ensured that the
companies are run by a combination of family members and industry professionals. The group
had appointed a facilitator in the past to oversee succession planning in the group. Family
members seeking to enter the businesses in management roles are required to be well qualified.
Adi Godrej has three children, of which his eldest daughter, Tanya Dubash, his daughter, is an
Executive Director of Godrej Industries Limited and the Chief Brand Officer for the group. She
oversees the group’s branding efforts and is also Chairperson of Godrej Nature’s Basket, the
gourmet retail arm of the company.

Nisaba Godrej, his second daughter is the Executive Chairperson of Godrej Consumer Products
Limited, the home and personal care products division. Previously, she led the innovation
strategy at the group company – Godrej Industries Limited. She was also involved with Godrej
Agrovet Limited, the agribusiness arm of the company. Vivek Gambhir, a professional, serves as
MD at Godrej Consumer Products Limited. Pirojsha Godrej, Adi Godrej’s son, looks after the
real estate business. He has served as Managing Director and Chairperson at Godrej Properties
since 2012. Effective April 2017, he serves as Executive Chairperson at the same company,
while handing over the MD role to Mohit Malhotra, a professional who joined the company in
2010. The succession plan has ensured that there are specific and clearly defined roles for the
next generation based on individual strengths.

Milestones :-

 1902
 Godrej makes the first Indian safe.
 1995
 Forays into electronic security solutions.
 1997
 Obtains ISO 9001 certification.
 1999
 Introduces Fire doors / Avanti doors.
 1999
 Obtains ISO 14001 certification.
 2001
 Introduces banking automation solutions.
 2003
 First high pressure nuclear reactor doors for NPCIL .
 2003
 Manufactures ATM safes for world's leading ATM manufacturers.
 2004
 Introduced Entranza doors – The original Masonite collection.
 2005
 First in India to introduce special pressure doors for Marine Applications.
 2006
 First Godrej division to get IMS certification (ISO 9001:2000, ISO 14001:2004 &
OHSAS 18001:1999).
 2007
 launches comprehensive Security solution.
 2009
 Won the most coveted super brand status.
 2009
 Achieved international certifications from the world renowned laboratories like:
             VdS- Germany, BRE-Uk, ECBS- Germany, SP-Sweden, LPCB-Uk.
Some real life disasters effect Godrej :-

 1944
 Mumbai Docks 7000 Tonne ship blast.
 1991
 Iraq's invasion of Kuwait.
 1997
 A blast at a major refinery site in South India.
 2001
 The Gujarat Earthquake disaster.
 2002
 A MIG 21 crash in a Bank building at Jalandhar.
 2004
 Fire at Centurian Bank of Lalbaug which lasted for more than 2 days.
 2005
 Fire at the Oasis centre in Dubai which lasted overnight and burnt down the entire mall.
 2007
 Burglary attack at Senur Primary Agricultural Co-op Bank, near Perur, Coimbatore.

Conclusion :-

Godrej Consumer Products, which entered the professional hair-care market around two years
back, is eyeing a 25 per cent market share in this space in the next three years.

While the global market size for professional hair and skin care stands at around Euro 12 billion,
in India, this segment is pegged at Rs 2,500 crore. Of this, professional hair care market stands at
Rs 1,200 crore and has been registering a 8-9 per cent growth since the past few years.

Sources said the brand from the Godrej stable currently has a miniscule market share and the
space is dominated by Loreal which has a near 70 per cent market share in the salon space. Other
than these two brands, at least 7 other brands, including Revlon, Avon Products, Conair, Aroma,
Estee Lauder and others, operate in this category.

“Although we have entered this space late, our intention is to have a 25 per cent market share in
the coming three years. We will be focussing on the affordable segment and avoid the luxury
space”, said Ketan Takalkar, associate vice president of Godrej Professional.

Godrej Professional is a brand of professional hair-care products including colours, shampoos

and conditioners which are sold to salons. This brand operates under the Godrej Consumer
Products division of the Godrej Group.

Takalkar said since the launch of this brand it has been able to rope in 5,800 salons across the
country and intends to add another 4,200 salons this fiscal year.

“Our target is to have 50,000 salons within our fold across the top 500 cities and towns of the
country in the coming five years”, he said.

The company has planned a slew of seminars to rope in salon owners. However, following these
seminars, the company will directly reach out to salon owners for a partnership.
It is also relying on competitive pricing for the salons. Takalkar claimed while a 50-60 ml bottle
of professional hair colour from foreign brands is priced around Rs 450, its pricing for a 70 gm
bottle stands at Rs. 310.

While the brands hair colours are used by professionals to service customers, shampoos and
conditioners are sold directly to consumers from these salons.

Currently, hair colours account for 70 per cent of Godrej Professional’s earnings but the
company sees the contribution from shampoos and conditioners to increase to 40 per cent of the
total revenue in the coming two years.

Raymond

Introduction :-

Raymond Group is an Indian branded fabric and fashion retailer, incorporated in 1925. It

produces suiting fabric, with a capacity of producing 31 million meters of wool and wool-
blended fabrics.
The group owns apparel brands like Raymond, Raymond Premium Apparel, Park Avenue, Park
Avenue Woman ColorPlus & Parx. All the brands are retailed through 'The Raymond Shop'
(TRS), with a network of over 700 retail shops spread across India and overseas, in over 200
cities. In addition, the group also has business interests in readymade garments, designer wear,
cosmetics & toiletries, engineering files and tools, prophylactics and air charter operations. In
2019, Raymonds announced its venture into real estate business under Raymond Realty. The
new venture is poised to start with an investment of Rs. 250 crore (approx $36 million) in
developing mid-income and premium housing units on 20 acres of land in the growing suburb
of Thane. Raymond group holds over 125 acres of land in this region

History :-

Raymond was incorporated in 1925 and is a leading Indian textile major. The company is part of
global conglomerate Raymond Group.
Raymond was the first in 1959 to introduce a polywool blend in India to creating the world's
finest suiting fabric the Super 240s made from the superfine 11.6 micron wool. It produces
wool–blended and premium polyester viscose worsted suiting. Besides, textile company has also
diversified in engineering and aviation.
Raymond is largest manufacturer of steel files in the world accounting 30% of market share.
Raymond’s textile plant is located in Thane, Vapi and Chhindwara. These plants have received
various certifications such as ISO 9001 for quality management systems and ISO 14001
Environment Control Systems.
In 2011 the company launched 600th Raymond Shop outlet. In 2013  Raymond Premium
Apparel crossed Rs. 1 bn mark. and the company marked the Pan–India launch of ‘Makers’
brand.
Family tree :-

Milestones :-

In 1925, a small woollen mill named as Raymond Woollen Mill was set up in Thane.

1944
When Lala Kailashpat Singhania took over Raymond in 1944, the mill was used to
manufacture coarse woollen blankets and modest quantities of low-priced woolen
fabrics. Soon Raymond embarked upon a gradual phase of adapting new technology
innovations which led to the production of superior quality fabrics.
1950
Post-independence, in a quest to become self-reliant, production commenced at the
company’s new manufacturing unit JK Files in 1950. The unit manufactured
indigenous engineering files.
1952
1952 - Gopalkrishna Singhania arrived to assist his uncle Lala Kailashpat Singhania at
the Raymond Mills in Mumbai.
1958
1958 - Raymond became the first company to blend polyester with wool and
introduced Terool — a runaway success that was the forerunner in the series of
superfine fabric blends that was launched later.
1958 – Raymond forayed into retail sector by opening the first exclusive retail
showroom in King’s Corner – Ballard Estate in Mumbai.
1960
1960s earmarked total replacement of machinery with sophisticated machinery and
since then modernization has become a way of life at Raymond.Raymond was the first
in the country to import most modern machinery which was ever available in the
world at that time.
1967
In 1967, the company launched Trovine — a first of its kind cool and comfortable
fabric ideal for Indian summers.
1968
In 1968, Set up of a readymade garments plant in Thane.
1979
In 1979, a new manufacturing facility was set up at Jalgaon, to meet the increasing
demand for worsted woollen fabrics.
1980
In 1980, Dr Vijaypat Singhania, the son of Lala Kailashpat Singhania took over the
reins as the Chairman of Raymond. An AMP Alumnus from Harvard and a high flier
in spirit and deed, it was under his leadership that the group forayed into several new
areas such as polyester filament yarn, indigo denim, cold rolled steel, prophylactics
and charter air services
1984
A new plant was set up in 1984, that enabled Raymond’s to upgrade the quality of its
traditional product line of woollen blankets and produce a superior variety of shawls
and blankets. Raymond was the pioneer in the development of machine washable wool
and wool blended suiting with a variety of finishes to offer total easy care and stain
proof fabric
1986
Launched in 1986, Park Avenue provides stylish and innovative wardrobe solutions to
well-dressed gentlemen. As India's premium lifestyle brand, its designs embody the
latest in international fabric, styling, colour and fashion trends.  

1990
The first showroom abroad for Raymond in Oman in 1990.
1991
In 1991, the company launched KamaSutra India’s premium condom brand. Within a
year of the launch KamaSutra became the second largest condom selling brand in
India. 
1995
In 1995, the company introduced a range of superfine pure wool collection under the
lineage line (Super 100S to Super 140S).
1996
Also, the group forayed into the aviation sector in 1996 with the launch of Raymond
Aviation. Raymond Aviation provides air charter services to corporate travellers in
India.
The company also forayed into manufacturing Denim 1996; focusing on quality,
innovation and the creation of exclusive products & designs that have always caught
the eye of some of the world's leading jeanswear brands as well as making it amongst
the top producers of specialty ring denim in India with a 60% market share.
1999
In 1999 Parx a premium casual wear brand was launched to offer customers a range of
semi- formal and casual clothes.
2000
"Mr. Gautam Singhania was appointed Chairman and Managing Director of Raymond
Limited in the year 2000."

2002
The year 2002 witnessed the acquisition of ColorPlus

2003
Silver Spark Apparel Limited was set up in 2003 for manufacturing suits and formal
trousers catering largely to export markets.
2005
In 2005, Raymond achieved a rare feat and a historical milestone with the creation of
the world's finest worsted-suiting fabrics from the finest wool ever produced in the
world- The Super 230s made up of 11.8 micron of wool.
2006
A Greenfield unit was set up in Kolhapur in 2006 to produce high value cotton
shirting.
World’s largest integrated composite Textile mill was set up Vapi in 2006 to produce
finest quality worsted fabric
2008
The year 2008 witnessed the launch of Readymade garments under the Raymond brand
name now known as Raymond Ready to Wear.

2011
In 2011, Raymond is the first textile company in the world to produce the Super 250s
fabric. and the first in India to produce innovative fabrics from bamboo fibre, stain

resistant and UV resistant fabrics and many such innovations.  

2014
In 2014, opened the first EBO for Raymond Ready to Wear  
2016
Launched Technosmart- Smartest fabric in the World
Setting up a new regional office in Dubai, Middle East
Laid the foundation Stone for setting up a greenfield Textile manufacturing Plant in
Amravati
Construction begins for greenfield manufacturing/garmenting facility in Ethiopia
2017
Garmenting Plant commissioned at Hawassa in Ethiopia

Conclusion :-

Raymond is a diversified group with majority business interests in Textile & Apparel
sectors as well as presence across diverse segments such as FMCG, Engineering and
Prophylactics in national and international markets. Having enjoyed the patronage of
over a billion consumers, Raymond as a brand has been consistently delivering world
class quality products to its consumers since the past nine decades.
Being a vertically and horizontally integrated manufacturer of Textiles, Raymond
produces ‘The finest fabric in the world’. With over 1100 exclusive stores spread
across 380+ cities and an expansive network of over 20,000 points-of-sale in India,
Raymond and its brands are also available in tier IV & V cities. Over the years,
Raymond has emerged as a preferred choice for top design houses across 55 countries.
Raymond has also been a leading player in Shirting fabrics and is the No.1 brand in
the OTC space. A formidable player in the Denim space, Raymond is also the top
producer & preferred supplier of high quality Ring Denim to world’s leading
Jeanswear brands. Given our fibre to fabric manufacturing capabilities, Raymond is a
textile powerhouse with state of the art manufacturing infrastructure, best industry
practices that has raised the bar of Indian textile manufacturing.