Professional Documents
Culture Documents
Axit Chap 2
Axit Chap 2
1897: Godrej introduced the first lock with lever technology in India.
1920: Godrej made soap using vegetable oil, which was a huge hit with the vegetarian
community in India
1989: Godrej became the first Indian company to introduce PUF (polyurethane foam)[citation
needed]
1999: Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej Infotech Ltd.
2001: Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps
Limited. Godrej Soaps renamed Godrej Industries Limited
2003: Entered the BPO solutions and services space with Godrej Global Solutions Limited
2004: Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers by
providing professional pest management services
2006: Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej Beverages
& Foods Limited
2007: Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North
America and the company was renamed Godrej Hershey Foods & Beverages Limited
2008: Godrej relaunched itself with new colourful logo and a fresh identity music
2011: Godrej & Boyce shuts down its typewriter manufacturing plant, the last in the world.
2014: Godrej kick-starts Masterbrand 2.0 – bigger & brighter; Launches FreeG; India's first non-
web based mobile browsing experience, 18 November 2014
2020: The Godrej Group enters into financial services business with Godrej Housing Finance
(GHF) to provide affordable Home loans
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. Godrej is a supporter of the World Wildlife Fund in India, it
has developed a green business campus in the Vikhroli township of Mumbai, which includes 200
acres mangrove forest and a school for the children of company employees.
Twenty-five percent of the shares of the Godrej holding company are held in trusts that include
the Pirojsha Godrej Foundation, the Soonabai Pirojsha Godrej Foundation[6] and the Godrej
Memorial Trust. Through these trusts the Group supports healthcare, education and
environmental sustainability initiatives such as The Mangroves,[7] Teach for India, WWF, Smile
Train and the Godrej Memorial Hospital among others.
The Godrej group can be broadly divided into two major holding companies, working
independently:
Strong Brand Portfolio: GCPL is one of the largest FMCG companies in India with a broad
brand portfolio and the wide range of customers. According to company estimates, over 600
million people use a Godrej product every day. The company has been able to create a strong
brand portfolio which enables it to reach to various different consumer segments.
Strong market positions in multiple categories: GCPL has leading market positions in
categories such as hair colours, household insecticides and liquid detergents. It has also
maintained a strong position in the soap category.
Ability to create a strong brand: GCPL has been able to create strong brands in various
segments such as Good Knight, Godrej No.1 and Cinthol etc. With strong marketing and
distribution, GCPL products are popular and enjoy high brand awareness.
Focus on Innovation: GCPL has been focusing on innovation and expanding its product
portfolio through brand extensions and new product launches. This is supported by company’s
robust R&D facilities which enable it to improvements in product quality, cost savings,
improvements in packaging and higher efficiency.
Increasing presence in a Global market: GCPL is on the look forward to expand itself globally
especially in the emerging nations. In FY 2015, GCPL’s share of revenue from international
market was 47.5% of its total revenue. The company is present in more than 60 countries like Sri
Lanka, Bangladesh, South Africa, Argentina and Kenya etc.
Weaknesses :-
Lack of scale: Even after building a strong brand portfolio and distribution, GCPL lacks scale
like ITC or HUL which are its competitors in various FMCG segments. These companies have
the financial strength to diversify in different business and invest higher in more products. This
affects GCPL’s competitiveness to these companies.
Stiff competition affects market share: India has various players in many of the categories in
the FMCG industry. This ensures stiff competition in the market and hence limits the market
share for GCPL. The entry of Patanjali has also reduced the market share of the FMCG giants in
many categories.
Opportunities :-
Inorganic Expansion: GCPL has transformed itself from a domestic company to a multi-
national company having a presence in over 60 countries. GCPL has been expanding in
emerging nations by acquiring some of the local brands to set up in those countries, for instance,
acquisition of Frika Hair in South Africa and Canon Chemicals in Kenya. This helps the
company to improve market penetration in such countries.
Rapidly growing rural market: The Indian rural market is rapidly growing as technology-
driven distribution enables the companies to maintain the demand and supply and hence the
increasing rural demand is capitalised. With improving penetration of FMCG products in the
rural market, GCPL can improve its bottom line.
Growing Personal care market: With increasing purchasing power and improving the lifestyle
of people, demand in personal care products is expected to grow. GCPL is set to benefit from the
increase in demand for personal care products, which represents about 22% of the FMCG
industry.
Threats :-
The abundance of counterfeit products: The presence of counterfeit products affects the image
of a brand and also affects revenues of a company. In India, counterfeit products affect a major
portion of the FMCG industry sales.
Intense competition from recognised companies: FMCG industry has intense competition with
a presence of various MNCs as well as domestic players. GCPL faces competition from
companies like HUL, ITC, Marico, Dabur and Patanjali etc. Intense competition also gives fire to
aggressive price competition which is a threat to the whole industry.
Competition from unbranded products: Indian rural market still has the abundance of
unbranded products available, for instance cooking oil and washing soap etc. The presence of
such products affects the industry.
FDI in retail: The demand for FDI in retail can affect the company’s position in the market as it
will allow the more international company to enter the Indian market and thus it is a threat to the
industry.