Hair Liquid International

Soaps Toiletries
Colours Detergents Operations

Quarterly Update: Q1 2009-10

Contents
• Performance Highlights - Consolidated

• Business Review - Domestic

• GCPL Financials & Ratios - Stand Alone

• International Operations.
Performance Highlights – Q1 2009-10
• Topline growth of 21%. Strong growth in both domestic at 22% and
international business at 20%

• Strong recovery in hair colour market share from 33.7% in exit

FY09 to 34.8% in June 2009

• Soap market shares go beyond 10% in June 2009

• Consolidated PAT improves significantly to Rs.69.7 crore with 78%

growth
Financial Highlights - Consolidated

21 % 64 %
96.6
500 438.9 100
361.6
400 75 58.8
300
50
200

100 25

0 0
Q1 0910 Q1 0809 Q1 0910 Q1 0809

Net Sales (Rs. Crore) PBDIT (Rs. Crore)

80 % 78 %
87.6 69.7
90 75

60 48.7 50 39.1

30 25

0 0
Q1 0910 Q1 0809 Q1 0910 Q1 0809

PBT (Rs. Crore) PAT (Rs. Crore)

Financial Highlights - Consolidated

EPS (Annualised Rs.)

12.0
67 %
10.8

8.0

6.5

4.0
Q1 0910 Q1 0809
Ratios - Consolidated
Consolidated Q1 0910 Q1 0809

A&P / Sales 10% 9%

PBDIT / Sales 22% 16%

PBT / Sales 20% 13%

PAT / Sales 16% 11%

• PBDIT margin improves by 600 bps

• Increased A&P spends towards brand building initiatives - A&P increased by
26% to Rs.43.3 crore as compared to Rs.34.3 crore in Q1 0809.
• Tax rate higher on account of higher MAT rate on domestic operations
Business Review - Domestic

Q1 FY 2009-10
Q1 FY 2009-10 Scenario: Domestic
• Industry Scenario
– FMCG sector growth continues to be strong
– Vegetable oil prices are at lower levels as compared to FY 0809.
– Rupee strengthened versus the USD in Q1 2009-10

• GCPL Performance

Industry Growth GCPL Standalone

(AC Nielsen Off Take) (Sales Growth)
Q1 ‘0910 Q1 ‘0910
Toilet Soaps 10.6% 27.4%
Hair Colours 14.2% 20.2%

*Off take in value terms @ MRP

Q1 Highlights
• Soaps
– Highest ever quarterly sales in soaps
– Significant increase in market share; market share for June 2009 is 10.1%
– Launch of Godrej No.1 ‘Lime & Aloe Vera’ variant

• Hair Colours
– Highest ever quarterly revenue
– Good recovery in hair colour market share from 33.7% in exit FY09 to
34.8% in June 2009
– Godrej Nupur Mehendi re-launched in a new & improved formulation

• Toiletries
– Cinthol launches ‘Rainstorm’ & ‘Unleash’ Deo Sprays
 Sales Growth (Standalone)
20 %
233.4 27 %
250 74.8
80
183.3 62.2
200
60
150

100 40

50 20
0
0
Q1 0910 Q1 0809
Q1 0910 Q1 0809
Toilet Soaps (Rs. Crore)
Hair Colour (Rs. Crore)

7%
4 24 21.3
23 % 20.0

3 18
1.9
2 1.6 12

1 6

0 0
Q1 0910 Q1 0809 Q1 0910 Q1 0809

Liquid Detergents (Rs. Crore) Toileteries (Rs. Crore)

Soaps - Revenue & Market Share

Market Share is 9.8 % for Q1 2009-10

250 11

9.8 10
9.5 9.5 9.4
200 9.1

233.44
9
Revenue Rs. Crore

Market Share (%)

183.29

182.06
183.37

150 8

163.75
7
100
6

50 5
Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10

Revenues Market Share

Source: AC Nielsen data % for All India value MS

Market shares from Q1 FY09 have been revised by AC Nielsen. The revised shares have been reported.
Hair Colours - Revenue & Market Share
80 Market Share is 34.4 % for Q1 2009-10 38

35.5

34.0
34.9
60 34.4 34
33.8
Revenue (Rs. Crore)

Market Share (%)

74.8
69.3
62.2

40 30

57.0
20 26
41.9

0 22
Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Q1 FY10

Revenues Mkt share

Source: AC Nielsen data % for All India value MS

Market shares from Q1 FY09 have been revised by AC Nielsen. The revised shares have been reported.
GCPL Monthly Market Share Value Trend
40
34.6
33.8 33.7 34.1 34.2
35 34.8
Hair Colours
30
Value Market Share (%)

25

20

15
9.2 9.5 9.6 9.8 9.5
10 10.1
Soaps
5

0
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09

Soaps Hair Colours

Key Q1 Initiatives
• Thrust to improve rural reach

• Strong innovations in both soap & hair colour

• Significant increase in brand investment

• Building a “brighter” organization to drive growth

Events / Recognitions
• GCPL ranked 15th in ‘India’s Best Companies to Work For’ survey 2009
conducted by Great Place to Work Institute, India & Economic Times.
GCPL ranked 1st in the FMCG category of this survey.

• Godrej Expert awarded the ‘Most Trusted Brand 2009’ in the hair
dye / hair colour category for the third consecutive year in the
Readers Digest Asia Trusted Brands survey.

• ICRA reaffirms SCG1 rating to the Stakeholder Value & Governance

practices of GCPL. The rating implies that in ICRA’s current opinion,
the company belongs to the Highest Category on the composite
parameters of stakeholder value creation and management &
corporate governance practices.

• ICRA reaffirms CGR 2+ rating to the Corporate Governance practices

of GCPL.
Acquisition of 49% stake in Godrej Sara Lee Limited
• In May 2009, the Board of directors of Godrej Consumer Products approved the
proposed acquisition of 49% stake in Godrej Sara Lee Limited

• The proposed acquisition will be through the merger of Godrej ConsumerBiz

Private Limited (GCBPL) and Godrej Hygiene Care Private Limited (GHCPL)
[100% subsidiaries of Godrej & Boyce Manufacturing Co. Ltd & Godrej
Industries Limited respectively] into Godrej Consumer Products Limited.

• Currently, GCBPL and GHCPL hold 29% and 20% respectively in Godrej Sara Lee
Limited (‘GSL’).
• Appointed date of the merger will be June 1, 2009 and pursuant to the
merger, assets and liabilities of GCBPL and GHCPL will be transferred to GCPL.

• Upon merger, GCPL will issue its 10 shares to the shareholders of GCBPL for
every 11 shares and 10 shares to the shareholders of GHCPL for every 11
shares.
• The proposed merger is subject to approval of the Court & other authorities.
Godrej SCA Hygiene – 100% subsidiary of GCPL

• GCPL has acquired the foreign JV partner’s share w.e.f 1st

April 2009. Godrej SCA Hygiene Limited is now a 100%
subsidiary of GCPL.

• Godrej SCA Hygiene will continue to own and distribute the

profitable “Snuggy” brand

• Q1 2009-10: Net Sales is Rs.3.1 crore; PAT is Rs.(0.4) crore

Financials & Ratios

GCPL Standalone
Financial Highlights - Standalone

22 % 70 %
78.6
400 339.8 80
277.7
300 60 46.2

200 40

100 20

0 0
Q1 0910 Q1 0809 Q1 0910 Q1 0809

Net Sales (Rs. Crore) PBDIT (Rs. Crore)

73.0
85 % 76 %
80 80
60.3
60 60
39.4
34.3
40 40

20 20

0 0
Q1 0910 Q1 0809 Q1 0910 Q1 0809

PBT (Rs. Crore) PAT (Rs. Crore)

Q1 FY 09-10 Sales Mix (Standalone)

Liq. Dets By-Prod's

Toileteries 1% 2%
6%

Hair Colour
22%

Soaps
69%
Dividend – Q1 FY 09-10
• Q4 Dividend announced
 Dividend per Share Re.1

 Dividend % 100%

 Total outlay (including tax on distributed profits) Rs.30.07 crore

 Dividend % till date for 2009-10 100%

 Dividend payout % YTD PAT (Standalone) 49.87%

Balance Sheet (Standalone)
Liabilities (Rs. Crore) 30-Jun-09
Net Worth 597.17
Other Liabilities 14.72
Total 611.89

Assets (Rs. Crore) 30-Jun-09

Net Fixed Assets 169.08
Investment in Subsidiaries 95.26
Investment – Other 50.04
Cash & Bank Balance (including Rights investment of Rs.309.84 318.07
crore)
Net Current Assets (20.56)
Total 611.89
Funds Flow (Standalone)
Q1 09-10
(Rs. Crore)
SOURCES
Internal Accruals 94.03
Cash & Bank 26.50
Working capital changes 9.79
Total 130.32

APPLICATIONS
Borrowing from Banks 52.85
Investment in subsidiaries 4.87
Investment in Mutual Funds 42.54
Dividend payout 30.06
Total 130.32
Cost Structure (Standalone)
Amount Q1 % of Q1 % of
in Rs. Crore 0910 Sales 0809 Sales
Materials Cost 152.7 44.9% 157.6 56.8%

Staff Cost 30.5 9.0% 15.6 5.6%

Depreciation 3.9 1.1% 4.6 1.7%

Advt & Publicity 28.7 8.5% 22.1 7.9%

Other Expenses 59.8 17.6% 45.7 16.5%

Interest & Fin. Charges 1.7 0.5% 2.2 0.8%

Provision for Taxation 12.7 3.7% 5.1 1.8%

PAT 60.3 17.7% 34.3 12.3%

Net Sales 339.8 100.0% 277.7 100.0%

Other Income 10.5 3.1% 9.5 3.4%

Ratios - Standalone
Q1 0910 Q1 0809
A&P / Sales 8% 8%
PBDIT / Sales 23% 17%
PBT / Sales 21% 14%
PAT / Sales 18% 12%
NWC / Sales (days) (19) (18)
Fixed Asset TO Ratio 8.0 5.2
ROCE 49% 25%
RONW 40% 24%
 Godrej Global
Mid-East FZE

Kinky Group
Proprietary Ltd.

International Operations
Key Highlights
• International business continues to do well under a challenging
environment – contributes 21% to topline.
• Kinky sales grew by 22%, Rapidol by 11% & Keyline by 18% over Q1
FY09 (in Foreign Currency )
Godrej Consumer Products Mauritius Ltd- Performance
(Holding company of Kinky Group (Pty) Ltd)

Date of Acquisition: 01-Apr-2008

Rs. Crore Q1 0910 Q1 0809

Net Sales 16.2 10.8
PBIT 2.8 2.3
Interest 1.6 1.3
PBT 1.2 1.0
Tax 0.9 0.8
PAT 0.3 0.2

• Opened 2 new “Kinky” Owned stores, taking the total number of stores to 24
Godrej Netherlands BV- Consolidated* Performance
Date of Acquisition: 31-Oct-2005

Rs. Crore Q1 0910 Q1 0809

Net Sales 66.9 61.2
PBIT 10.9 10.7
Interest 0.4 0.9
PBT 10.5 9.8
Tax 3.3 3.2
PAT 7.2 6.6

• Business grew at 18% (in Foreign Currency) despite recession in the UK economy
Rapidol Pty Ltd-Performance
Date of Acquisition: 01-Sep-2006
Rs. Crore Q1 0910 Q1 0809
Net Sales 13.9 11.6
PBIT 3.4 1.8
PBT 3.5 2.0
Tax 1.0 0.6
PAT 2.5 1.4

• Successful launch of Inecto Semi Permanent range of colours

Godrej Global Mid-East (GGME)
Date of Acquisition: 01-Oct-2007

Rs. Crore Q1 0910 Q1 0809

Net Sales 4.0 2.9
PBIT 0.2 0.1
PBT 0.2 0.1
Tax - -
PAT 0.2 0.1

• Business grew at 17% (in Foreign Currency) over Q1 FY 2008-09

Thank You