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GODREJ

COMPANY
INDEX:
• INTRODUCTION
• HISTORY OF THE COMPANY
• GODREJ GROUPS
• VISION AND MISSION
• PAST ACHIEVEMENTS AND AWARDS
• GROWTH STRATEGY OF GODREJ COMPANY
• OBJECTIVES, SOCIAL RESPONSIBILITY AND
CORPORATE DETAILS
• OUTWARD BOUNDS OF GODREJ COMPANY
• SEGMENT SENSE OF GODREJ COMPANY
• COMPETITONS OF GODREJ COMPANY
• DIFFERENT GODREJ PRODUTS
• FEATURES OF PRODUCTS
• GODREJ FAST MOVING CONSUMER PRODUCT
• ADVERTISEMENT OF CONSUMER PRODUCT
OF GODREJ COMPANY
• SWOT ANALYSIS OF GODREJ COMPANY
• MARKETING STRATEGY IN GODREJ
• INTERNATIONAL OPERATION
• REASON FOR SUCCESS
• ENVIRONMENTAL CARE
• CONCLUSION

INDRODUCTION
Godrej Group is one of the largest
conglomerates based in Mumbai, India, involved in various
industries that include appliances, precision equipment,
machine tools, furniture, healthcare, interior solutions, office
equipment, food processing, security, materials handling and
industrial storage solutions, construction and information
technology. Its products include security Systems and Safes,
Typewriters and Word processors, Rocket Launchers,
Refrigerators and Furniture, Outsourcing Services, Machine
Tools and Process Equipment, Cosmetics and Detergents,
Engineering Workstations, Medical Diagnostics and
Aerospace Equipment, Edible Oils and Chemical, Mosquito
Repellents, Car perfumes, Chicken and Agri-products,
Material Handling Equipments Like FORKLIFT Trucks,
Stackers, Tyre handlers, Sweeping machines, access
equipments etc. The Group is headed by Mr. Adi Godrej &
Mr. Jamshyd Godrej.
Traditionally, Vikhroli, a suburb to the Northeast
of Mumbai has been Godrej's manufacturing base, but
increasingly the groups have moved significant production
facilities away from Mumbai. The Godrej group also owns
vast land in Vikhroli, occupying 3500 acres (14 sq km) of
land on both sides of the Vikhroli section of the LBS marg.
That makes the Godrej group the biggest private land owner
in Mumbai by far Such vast land can, in theory, be used to
create at least 1500 acres of residential floor space, which,
at very modest rates (Rs.10000/sq ft), can be sold for USD
16 billion . Thus, the Godrej group is sitting on an invisible
cashpile that is envy of other Indian conglomerates.

HISTORY OF THE COMPANY


Godrej Consumers Products is a wing of the renowned
Godrej Group which was initiated in the year 1897 by
Ardeshir and Pirojsha Godrej. Initially, the group was a locks
manufacturing company, but now it is one of the largest
diversified commercial firms in India and the most reliable
brand. The company also takes pride for being the pioneer
to manufacture soaps from vegetable oil. Highly appreciated
for its product quality, first-class after-sales service, Godrej
Consumers Products is truly the leader in its category.

GODREJ GROUPS

Employing some 18,000 employees, the Godrej Group


features a diversified portfolio. Annual sales of the group is
more than $1 billion and it includes wide array of industries
ranging from machine tools, furniture, appliances, precision
equipment to healthcare, office equipment, interior solutions,
food-processing, etc. In addition, Godrej Group also has
proven track record in industries such as, construction,
security, information technology as well as materials
handling and industrial storage solutions, Medical
Diagnostics and Aerospace Equipment, Chicken and Agri-
products, Engineering Workstations, Mosquito Repellents,
Car perfumes, Edible Oils and Chemical, Stackers, tyre
handlers, Sweeping machines, access equipments etc. It is
also recognized for producing world-class Typewriters and
Word processors, Rocket Launchers, security Systems and
Safes.

VISION AND MISSION


VISION -
Godrej in Every Home and Work Place

MISSION -
• Godrej Mission is to operate in existing and new
businesses which capitalize on the Godrej brand and
corporate image of reliability and integrity.
• Godrej objective is to delight our customer both in
India and abroad.
• They shall achieve this objective through continuous
improvement in quality, cost and customer service.
• They shall strive for excellence by nurturing,
developing and empowering our employees and
Suppliers.
• They shall encourage an open atmosphere, conducive
to learning and team work.

PAST ACHIEVEMENTS
• In 1897, Godrej introduced the first lock with lever
technology in India.
• In 1902, Godrej made the first Indian safe.
• In 1920, Godrej made soap using vegetable oil, which
was a huge hit with the vegetarian community in India
• 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.

AWARDS
• 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 Goodknight, Cinthol and Ezee selected
Superbrands by the Superbrands Council
• Godrej Sara Lee, the JV between the Godrej Group and
Sara lee Corporation, USA is acknowledged the
World's largest mat manufacturers and South Asia's
largest manufacturers of Coils.
• Godrej Consumer Products Limited, adjudged as a
Business Super brand by the SuperBrands Council.
• The Return on Capital Employed and Return on Net
Worth ratios of Godrej Consumer Products - the highest
in corporate India.
• Godrej Consumer Products was awarded the "Best
Managed Workforce" award given by Hewitt Associates
and CNBC TV18.
• Godrej Consumer Products features in the Top 25 list of
Great Places to Work (survey conducted by GrowTalent
in association with Business World) for four years in a
row.
• Lifetime Achievement Award for Godrej Industries from
CHEMEXCIL, the Basic Chemicals Pharmaceuticals
and Cosmetics Exports Promotion Council.

GROWTH STRATEGY OF GODREJ


COMPANY
 Godrej Consumer Products is implementing a two-
pronged strategy for growth, going forward. On the one
hand, it is planning to expand its product portfolio and
augment its market share in the domestic market.
 On the other hand, it has set sail for overseas markets.
With the acquisition of Keyline brands in the UK in
October 2005, it has made a strong entry into the UK
market and is trying for a couple of more acquisitions.
 On the domestic turf, it is leveraging its leadership
position in hair colourants and is diversifying its soap
brands. Easing of competition pressure to some extent
and a resurgence in FMCG sales will only aid the
company post better numbers.
 Godrej brands posted a 20 per cent growth in FY06.
Analysts peg the sales growth in FY07 and FY08 at
over 40 per cent and 25 per cent, respectively. With
control over raw material costs through in-house
production of fatty acids (highest in India), Godrej is
expected to register better bottom line growth in the
coming years.

OBJECTIVES, SOCIAL RESPONSIBILITY


AND CORPORATE DETAILS
OBJECTIVES:
Godrej Consumers Products is committed to protect its
stakeholders' interest by offering the best services to its
consumers. The company aims to serve its clientele with
pioneering and cost-effective solutions to cater to their daily
needs and uplift the quality of living as well.

SOCIAL RESPONSIBILITY:
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.

CORPORATE DETAILS:
Adi Godrej is the current Chairman of the Godrej Group.
Godrej & Boyce Mfg. Co. Ltd. is headed by Mr. Jamshyd
Godrej. The Group revenue was approximately US$ 1.7
billion in financial year 06/07. Godrej Interio is the flagship
company of the group.
The Godrej group can be broadly divided into two major
holding companies, working independently:

• Godrej Industries Ltd.


• Godrej & Boyce Mfg. Co. Ltd.

OUTWARD BOUND OF GODREJ COMPANY


Godrej is going in for international acquisitions with twin
strategies - diversifying risk and tapping new markets. It
expects good synergies from the Keyline acquisition and a
double-digit growth in these brands. It plans to introduce one
brand in India in FY07. Moreover, Keyline outsources half its
production, a major chunk of which could come to Godrej.
"They would use the existing distribution channel of Keyline
brands to market Godrej products, with an eye on the Indian
diaspora in Europe and the Caribbean," says Hoshedar
Press, executive director and president.
Analysts believe that Godrej is in the advanced stage of
making a couple of acquisitions this year.
The Keyline brands garnered revenue of £5.2 million (about
Rs 44.08 crore) during November 2005-March 2006, while
PBT was £0.6 million (about Rs 5.09 crore). Major Keyline
brands include Adorn (hair spray), Aapri (skin care), hair
colourants with 40 per cent market share. It witnessed a 22
per cent growth in this business in FY06. It is setting up a
new facility in Sikkim with a capex of Rs 10 crore (Rs 100
million). Cuticura (talcum powder), Erasmic (shaving
products) and Nulon (hand creams).
Sunil Sapre, executive vice-president (finance &
commercial), says, "Although exports account for a
minuscule 3 per cent of the business, at present, we see a
big opportunity in South East Asia and Africa." Analysts see
exports growing to 20 per cent of the total business,
including the Keyline brands.

SEGMENT SENSE OF GODREJ COMPANY


An analyst at HDFC Securities expects the company to
maintain its market share, even as modern day evils like
pollution are likely to create more users. The fashion
segment in hair colours would be another driver.
Sapre says, "Our focus would be on converting non-users
into users, especially in the hair colour business."
The soaps business of Godrej, which accounts for 63 per
cent of its revenues, posted a 17.5 per cent growth in FY06,
compared with the industry growth of 3.2 per cent.
The company sees good growth potential in the business
and stable vegetable oil prices (the chief raw material). With
a 9 per cent market share in this segment, it stands second,
though way behind the market leader - Hindustan Lever
which has about 45 per cent share.
Godrej aims to increase its share by 1 per cent every year
with focus on freebies, which, however, could lead to some
margin loss. Analysts feel that the high total fatty matter in
Godrej's soaps at 76 per cent, vis-a-vis 60-70 per cent in
most other soaps, is a positive.
In liquid detergents, the company is a market leader with its
Ezee brand at over 80 per cent market share. But this
segment may see limited growth, according to analysts. In
the shaving cream category, the company is trying to grow
with higher-end products and improved advertising, while its
talcum powder business, where it banks on freebies, is likely
to remain stagnant, according to them.

COMPETITION OF GODREJ COMPANY


The company operates amid stiff competition. HLL
is in a resurgent mode and ITC has plans to enter the soap
business. There is competition from regional players as well.
To fight competition, Godrej has been introducing new
variants and brands. It recently launched its age control soap
Evita.
Group chairman Adi Godrej says, "We plan to enter
one new category of personal care segment every year,
provided we are able to differentiate our products." In hair
colourants, the company has products at all price points,
from the Rs 7 powdered hair colour to the higher-end Renew
and Coloursoft.
Price wars in FMCG will remain and exert
pressure on margins. But, Godrej hopes to maintain margins
relying on certain internal economies. For example, it
manufactures fatty acids, used in soaps, in-house and
enjoys economies of scale in buying vegetable oils.
Vegetable oil prices are likely to remain soft this year.

DIFFERENT GODREJ PRODUCTS


• Appliances
• Locks
• Furniture
• Security Equipment
• Office Automation
• Conferencing Solutions
• Typewriters
• Vending Machines
• Soaps & Personal Care
• Foods
• Air Care
• Household Insecticides
• Housing
• Pest Management Services
• Storage Solutions
• Automated Warehousing
• Material Handling Equipment Process Equipment
• Precision Components & Systems Machine Tool
Service
• Electrical & Electronic Tooling
• IT Solutions
• PLM Solutions
• Medical Diagnostics
• Agro Products
• Chemical
• Construction Material & Services

FEATURES OF PRODUCTS
Wide array of products are manufactured by Godrej
Consumers Products. The company is popularly known for
its Soaps, Toiletries, Hair Care, Household Care, and Fabric
Care solutions not only in India, but also in the countries
across the globe. To offer the best to the consumers,
GodrejCP employs the Total Quality Management system.
Major GodrejCP products include the following:

• In the hair color category, Godrej Consumers Products


is considered as the best. It has variety of products
such as, Godrej Liquid & Powder Hair Dyes, Godrej
Kesh Kala Oil, Godrej Renew Coloursoft Liquid Hair
Colours, and Nupur based Hair Dyes.
• Fairglow, Cinthol, Godrej No. 1 are some of the popular
soaps of Godrej Consumers Products. FAIRGLOW is
the first Fairness soap in India. GCPL is also the
contract manufacturer of toilet soaps of some of the
renowned brands in India.
• EZEE is the Liquid Detergent brand of Godrej
Consumers Products, and it is rated as the best in this
category.
GODREJ FAST MOVING CONSUMER
PRODUCTS

Godrej FMCG is located in Vikhroli, Mumbai in the Western


part of Maharashtra. Its has the latest technology to produce
high quality potable products. One of the largest and most
modern consumer product manufacturing company in the
country making a soaps, deodorant etc. It also includes bulk
manufacturing of deo talcs, toilet cleaner and mosquito and
insects killer products. At present Godrej Industries produces
the following products:
• Chocolate Syrup
• Godrej Hersheys Limited
• Kiwi Shoe Polish
• Godrej Sara Lee Limited
• Frozen foods veg/non veg
• Godrej Tyson Limited
• Soya milk Flavoured
• Godrej Sara Lee Limited
• Xs Fruit Juice
• Godrej Sara Lee Limited
• Renew Hair Colour
ADVERTISEMENT OF CONSUMER
PRODUCTS OF GODREJ COMPANY
GODREJ NO.1
India largest selling No.1 soap

CINTHOL
Long lasting freshness for 24hr

GODREJ EXPERT
India’s largest selling hair colour

GODREJ PROTEKT
Freedom to touch

RENEW
Permanent hair colour creme

COlOUR SOFT
Hair Ultra gentle colour

SWOT ANALYSIS OF GODREJ COMPANY


STRENGTHS OF GODREJ COMPANY

• STRONG BRAND NAME


• QUALITY
• GOOD REPUTATION AMONG THE CUSTOMERS
• SERVICE MANAGEMENT
• SUPLY CHAIN MANAGEMENT
• EXCLUSIVE ACCESS TO HIGH GRADE NATURAL
RESOURCES
• FAVOURABLE ACCESS TO DISTRIBUTION
NETWORKS MANAGEMENT
• EMPLOYEE
• INNOVATIVE ASPECTS
• FINANCIAL RESERVES
• MARKET LEADER

WEAKNESSES OF GODREJ COMPANY

• COST OF PRODUCT
• MARKETING
• EMPLOYEE TURN OVER RATIO
• CENTRALISATION
OPPOTUNITIES OF GODREJ COMPANY

• INDUSTRY OR LIFESTYLE TRENDS


• COMPETITOR’S VULNERABILITIES
• MARKET DEVELOPMENT
• TECHNOLOGY DEVELOPMENT AND INNOVATION
• GLOBAL INFLUENCES
• NEW MARKETS
• NICHES TARGET MARKET
• BUSINESS AND PRODUCT DEVELOPMENT
• INFORMATION AND RESEARCH

THREATS OF GODREJ COMPANY


• COMPETITORS INTENTION
• MARKET DEMAND
• NEW TECHNOLOGIES, SERVICES, IDEAS
• OBSTRACLES FACED
• LOSS OF KEY STAFF
• SEASONALITY
• COUNTRY’S ECONOMY

MARKETING STRATEGY IN GODREJ


Godrej aims to relaunch products across categories to revive
demand and enhance consumer recall. In some cases, the
products will only be repackaged and relaunched with a new
marketing strategy; in others, the brands will be extended to
some new product categories.
New pitch: The consumer goods major has hired Bollywood
actor Hrithik Roshan to endorse its flagship soap brand
Cinthol.
The company has lined up major initiatives for its soap
business. With 11% market share in value terms, Godrej is
the second largest soap maker after Hindustan Unilever.
Godrej plans a complete makeover of its flagship soap brand
Cinthol and has hired Bollywood actor Hrithik Roshan as a
pitchman. The brand, which was launched in 1952 as the
first deodorant soap in the country, has been through several
changes since then. It was initially positioned as a male-
centric product but later it was repositiioned as family soap
but now, the company plans to pitch it as a youth-centric
brand, along with launching new products under the same
brand name. “They will also introduce hand wash and
shower gels under the (Cinthol) brand,” said Hoshedar K.
Press, executive director and president. In the 1980s,
Cinthol was a leading brand with market share in double
digits and was endorsed by popular celebrities such as
Vinod Khanna and former Pakistani cricketer Imran Khan.
According to AC Nielsen, in August, Cinthol had a 2.5%
share in the Rs6,000 crore annual soap segment. “Cinthol
enjoys a good brand equity among consumers, which
doesn’t reflect in its market share.
INTERNATIONAL OPERATIONS
Popularity of GCPL products has been growing rapidly in
international market, and to meet this emerging demand, the
company is also expanding the breadth of its operations.
GodrejCP products are now exported to 30 countries
worldwide.

Stock Exchanges are structured marketplace where affiliates


of the union gather to sell firm's shares and other securities.
India Stock Exchanges can either be a conglomerate/ firm or
mutual group. They form their own accounts.
Stock Exchanges in India affiliates act as intermediaries to
their patrons or as key players also assist the issue and
release of securities and other monetary tools incorporating
the fortification of revenues and dividends. The book keeping
of the trade is centralized but the buying and selling is
associated to a particular place as advanced marketplaces
are mechanized. The buying and selling on an exchange is
only open to its affiliates and brokers.
REASONS FOR SUCCESS

• A young, experienced and talented team with a vision


and passion to grow.
• Wide variety of products across markets catering to
various segments of the society.
• Market research and the ability to address and respond
to the consumer needs positively.
• Participation with the Government in formulation of
policy.
• A solid low-cost distribution structure across different
markets, which has fueled this strong growth.
• Ensuring delivery of high quality products.
• In-house master blenders with over 30 years of
expertise.
• Panel of expert and professional consultants on board.
• Godrej Industries Limited has debuted 12th in the “Best
Companies to work for in India” survey done by Mercer
Consulting and Business Today.
• 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.
ENVIRONMENTAL CARE

We are blessed to be in the planet called Earth


and enjoy its pristine beauty to inhabit in it. As a large entity,
it is thier commitment to preserve this beautiful paradise.
Shaw Wallace as a company has conceived a variety of on-
going initiatives, designed exclusively to safeguard the
wonderful gift of Mother Nature. After all, this obligation
extends to the generations that will follow them in the years
to come. In an endeavour to bolster environmental care and
nourishment, at Godrej Industries, maintain the highest
standards of precaution, within the vicinity of thier
manufacturing units.
As a good corporate citizen, they have taken
adequate steps to protect and conserve the resources
inherited from nature, adopting various environmental
friendly measures. The greenery and landscapes maintained
at several of our units have also won the 'Best Garden'
awards on numerous occasions.
At Godrej Industries unit there has been a
significant reduction of wastage of all raw materials and
compliance with international pollution control norms. Godrej
Industries has based its environment policy on parameters
like conservation of natural resources, complying with legal
requirements of all statues applicable to the organization,
prevention loss of bio-diversity, air-pollution, water-pollution
and also to impart training for environment management.
The industry has also developed systems to ensure that the
policies and objectives are implemented periodically.
Also the godrej industries produces high quality
of agriculture products under the brand name of the “Godrej
Adhaar”.
CONCLUSION

With the above project on Godrej specifically on its product


division I has got a great deal of knowledge about the
company Godrej and its consumer related products chain.
Godrej is one of the leading company of our country and one
of the forward moving MNC’s of the business world and I as
enjoyed making the project with full of information and
pictorial representation of the products. All the product has
being doing well in the market due to the marketing strategy
used by the Godrej. But Godrej can think of coming with the
products which will be focusing on many other segments of
the market. A change in segmentation and targeting of a
different genre of consumers apart from its traditional market
can open up new avenues of customer base.

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