Adi Godrej Project

8/11/2019 Adi Godrej Project

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SYNERGY INSTITUTE OF TECHNOLOGY (BBSR)

2014

Satya Prakash

B.Tech 7th semester

8/8/2014

PROJECT ON ADI GODREJ

SUBMITTED TO: M s Akankasha K Jhingan

Name SATYA PRAKASH Roll No 11EEE05

Reg No 1101335060


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SYNERGY I NSTI TUTE OF

TECH NOLOGY (BBSR)

PROJECT ON ADI GODREJ

Name SATYA PRAKASH

Roll No 11EEE05

Reg No 1101335060

Submitted to Ms Akankasha K Jhingan


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Adi Godrej Biography

INTRODUCTION Adi Godrej was born on 3 April, 1942 in Mumbai. He is an

Indian industrialist and the present Chairman of theGodrej Group, which includes many Indian companies. He

is also the Chairman of 2 international companies; KeylineBrands, U.K and Rapidol, South Africa; as well as theChairman of the Board of Trustees of the Dadabhai

Naoroji Memorial Prize Fund.

FAMILY Adi Godrej hails from a business family. His father was Mr

Burjorji Godrej who was a successful businessman and hismother was Mrs Jai Godrej who spent her life as a teacher at

one of the Godrej schools.

He is married to Parmeshwar Godrej and the couple has 2

daughters and a Son.

His eldest daughter, Tanya, is the Executive Director andPresident, (Marketing) of the Godrej Industries Ltd. His second

daughter, Nisa Godrej has joined the group after completing her

studies from the Harvard Business School, USA.


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His son, Pirojsha Godrej finished his management studies from

abroad and has now joined Godrej Properties.

GROWING UP

At the age of 17, Adi Godrej left India and got enrolled at theMassachusetts Institute of Technology (MIT) in the United

States. Initially, he planned to study mechanical engineering

but ended up studying management. He received his

Bachelors and Masters degrees in management from the

Sloan School, MIT in 1963.

THE BEGINNING/CAREER

After completing his graduation, Adi Godrej returned to Indiaand joined the family business The Godrej Group. The

management had high expectations from him as he was the

first business graduate to join the company.

The Godrej Group was started more than a century ago and

since then it manufactured locks and vegetable based soapswhich displaced many foreign brands.

The Godrej Group continued to function with an inflexible


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style of management which it followed under the controlled

era of British rule, even after India's independence. Hence

when Adi Godrej joined the group, he faced the challenge of

modernizing the management structures and making them

more flexible and systematic. Adi started the group's movement away from familyhegemony that inflicted many family businesses of that time

in India.

Adi instilled new business processes at a time when

companies perceived change to be disruptive and

threatening.

He created an emotional connect of both his personal and the

group's brand image with people by maintaining traditional

middle class core values have remained middle class.

Under his leadership, the Godrej Group kept overhaulinggrowth targets and reached great heights of success . Under Adi Godrej's leadership, the group is also involved in philanthropic activities. Godrej is major supporter of the

World Wildlife Fund in India, it has developed a green

business campus in the Vikhroli township of Mumbai, which

includes a 150-acre (0.61 km2 ) mangrove forest and a school

for the children of company employees. He is the chairman of

the Indian School of Business since April 2011. He was elected

as the president of Confederation of Indian Industry (CII) for
http://en.wikipedia.org/wiki/Indian_School_of_Businesshttp://en.wikipedia.org/wiki/Confederation_of_Indian_Industryhttp://en.wikipedia.org/wiki/Confederation_of_Indian_Industryhttp://en.wikipedia.org/wiki/Indian_School_of_Business


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the year 2012-13. In April 2013 Godrej was awarded the

Entrepreneur of the Year Award at The Asian Awards. He was

awarded the Padma Bhushan, India's third highest civilian

award, in 2013. He was awarded the prestigious Ernst &

Young Entrepreneur of the Year Award in February 2013

VENTURES

Usually, JVs have been successful. They are very clear that JVs are short-term arrangements and almost never long-termones, whether it is globally or in India. Both the foreign and

Indian partner may need it strategically or tactically forcertain purposes and once that is served, one moves on.

They acquired the GE Appliances shareholding (in the early2000s) because GE did not want to be in a business wherethey were not among the top two. At that time, they werenumber one in India in consumer appliances, but they (GE)defined Asia as their market geography. Our JV with Procterand Gamble (P&G) was in the soap business, but P&Gdecided in the 1990s that soaps was not an area of focus forthem. The winding up was amicably sorted out.

Their JV with Pillsbury Ltd was for marketing wheat flour,which wasnt our area of focus. They requested us torestructure the JV, which we did. Similarly, Sara Lee was

getting out of the household business and personal care products segments globally to concentrate on food products.
http://en.wikipedia.org/wiki/The_Asian_Awardshttp://en.wikipedia.org/wiki/Ernst_%26_Young_Entrepreneur_of_the_Year_Awardhttp://en.wikipedia.org/wiki/Ernst_%26_Young_Entrepreneur_of_the_Year_Awardhttp://en.wikipedia.org/wiki/Ernst_%26_Young_Entrepreneur_of_the_Year_Awardhttp://en.wikipedia.org/wiki/Ernst_%26_Young_Entrepreneur_of_the_Year_Awardhttp://en.wikipedia.org/wiki/The_Asian_Awards


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They saw this as an opportunity to buy out their shareholding.They did and merged it with Godrej Consumer Products Ltd(GCPL). And they have benefited from that move.

The Godrej group didnt have a very auspicious beginning. Ardeshir Burjorji Godrej started off as a lawyer in Zanzibarbut wasnt too successful; he returned to India in 1894 andbecame a pharmacy assistant. The following year, with aloan of Rs 3,000 from his fathers friend, he set out to makesurgical equipment but that business was stillborn when

Ardeshir insisted on putting a Made in India stamp on thescalpels and forceps he made. Finally, in 1897, after reading anewspaper article on rising crime in the city, he set aboutmaking locks from a 20-sq m room at Parel in centralBombay. That took off and Godrej Brothers, as Ardeshir andhis brother Pirojsha named their venture, was in business.(Incidentally, the Godrej logo is based on Pirojshas

signature.)

ABG agrees the JVs have all ended after some years but says JVs are meant to be medium-term arrangements, in India andoutside. Besides, he adds, We partnered with some of thegreatest companies in the world. We were insiders and learnta lot from these companies, in HR practices, marketing and

logistics.


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FUTURE PROJECT

If we look at the older family-owned groups, they are one ofthe fastest-growing. Over 500 million consumers use their

products every day. Thats more than any other gr oup in India. If we talk in terms of financialleverage, They have been and will continue to be conservative.

Not surprisingly, the consumer goods business will account for the bulk of the growth. There are still only three branded

packaged consumer goods categories that are fully

penetrated in India soaps, detergents and matchsticks. So,

increasing penetration of other categories will mean

tremendous growth,

They feel Godrej Properties will be the fastest growing part oftheir business we have already been growing by 50-100

per cent. Thats because unlike our other businesses, they donot have to be concerned about competition, market share


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or size in properties, as no company even has a 5 per centmarket share. GCPL is growing fast, but there is a limitation.

It cant suddenly double its sales as t here is huge competition.

It has to sacrifice a lot of its profit if it wants to growrapidly. There is no such problem with Godrej Properties.

He says that they are in too many businesses already. Theyhave good growth opportunity in the existing business, so theywill stick

to them. They started a

BPO business but got out of it. Same with foods business. Sothey want to stick to businesses where they are doing

extremely well and invest more in those businesses .

SWOT ANALYSIS OF THE COMPANY

St rengths

Cost advantageAsset leverageEffective communicationOnline growth

Loyal customersMarket share leadershipStrong management teamStrong brand equity


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Strong financial positionSupply chain

PricingReputation management Weaknesses

Lack of capital invrestent r &dLack of innovationLack of Mnc culture

Hierarchial structure Oppor tun i t i es

AcquisitionsAsset leverageEmerging markets and expansion abroadOnlineProduct and services expansionTakeovers

Threats

CompetitionCheaper technologyEconomic slowdownExternal changes (government, politics,taxes, etc)Exchange rate fluctuations


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Lower cost competitors or importsMaturing categories, products, or services

Price warsProduct substitution


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Documents

Adi Godrej Project