Godrej Consumer Products Limited

Q1 Financial Update

Quarterly update Quarterly update

Q1 Q1 2001-022001-02

Godrej Consumer Products LimitedGodrej Consumer Products Limited

Analysts MeetAnalysts Meet

26 July 200126 July 2001

2Godrej Consumer Products Limited

Q1 Financial Update

We’ve (d)emerged

3Godrej Consumer Products Limited

Q1 Financial Update

AgendaAgenda

• Godrej Consumer Products Ltd. – The CompanyGodrej Consumer Products Ltd. – The Company

• Business InitiativesBusiness Initiatives

• Q1 ResultsQ1 Results

• Key FinancialsKey Financials

4Godrej Consumer Products Limited

Q1 Financial Update

The CompanyThe Company• GCPL is a result of the demerger of the GCPL is a result of the demerger of the

Consumer Products Division of Godrej Soaps Consumer Products Division of Godrej Soaps Limited (now renamed Godrej Industries Ltd.)Limited (now renamed Godrej Industries Ltd.)

• Focused FMCG companyFocused FMCG company

• Presence in Personal, Hair, Fabric & Presence in Personal, Hair, Fabric & Household care market segmentsHousehold care market segments

• Market Leadership in Hair Colour & Liquid Market Leadership in Hair Colour & Liquid DetergentsDetergents

• High Standards of Corporate GovernanceHigh Standards of Corporate Governance

• Owns all its BrandsOwns all its Brands

5Godrej Consumer Products Limited

Q1 Financial Update

Godrej Consumer Products LtdGodrej Consumer Products Ltd

Board of Directors• Adi Godrej - Chairman & Managing Director

• Jamshyd Godrej

• Nadir Godrej

• Bala Balachandran

• Rama Bijapurkar

• Bharat Doshi

• Anupam Puri

• Hoshedar Press - Executive Director & President

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Q1 Financial Update

Shareholding PatternShareholding Pattern

Public26.7%

Promoters68.2%

Banks, FIs, MFs

4.5%

FIIs0.6%

As on June 30, 2001

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Q1 Financial Update

Shareholder Information Shareholder Information

• GCPL shares are traded on the Bombay Stock GCPL shares are traded on the Bombay Stock

Exchange, National Stock Exchange and stock Exchange, National Stock Exchange and stock

exchanges at Chennai, Kolkata, Delhi and Ahmedabad.exchanges at Chennai, Kolkata, Delhi and Ahmedabad.

• Listed on BSE on 18-June-01 Listed on BSE on 18-June-01

• Listed on NSE on 20-June-01Listed on NSE on 20-June-01

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Q1 Financial Update

Facilities & NetworkFacilities & Network

Manufacturing FacilitiesManufacturing Facilities --

22

BranchesBranches --

44

C & F AgentsC & F Agents -- 3232

DistributorsDistributors -- 17001700

Retail Outlets coveredRetail Outlets covered -- 4.5 lac4.5 lac

Retail Coverage of any Godrej Soap Retail Coverage of any Godrej Soap --

16.0 lac16.0 lac

Retail Coverage of any Godrej Hair Dye-Retail Coverage of any Godrej Hair Dye-

11.9 lac11.9 lac

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Q1 Financial Update

Key BrandsKey Brands

Fabric & Fabric & Household CareHousehold Care

Hair CareHair CarePersonal CarePersonal Care

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Q1 Financial Update

Market SharesMarket Shares

Q1 01-02 Q1 00-01Toilet Soaps 5.9 5.3Hair Colour 44.5 41.8Liquid Detergent 73.9 78.8Shaving Cream 9.8 10.8Fairness Cream 3.6 - Talcum Powder 1.5 2.2

Source : ORG DataAll figures shown are % for All India Value MS

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Q1 Financial Update

25%

0%

20%

7%48%

Sales Mix Sales Mix Q1 01- 02Q1 01- 02

Godrej Brand Soaps

(Rs.66.4 cr)

Contract Mfg

(Rs.35.5 cr)

Liquid Detergents

(Rs.0.3 cr)

Hair Colour

(Rs.27.9 cr)

Toiletries

(Rs.10.3 cr)

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Q1 Financial Update

Category-wise TurnoverCategory-wise Turnover

Q1 01-02 Q1 00-01** Growth%

Soaps 66.4 54.0 23%Hair Colour 27.9 21.9 27%Detergents 0.3 0.8 -58%Toiletries 10.3 6.6 55%Total Godrej Brands 104.9 83.3 26%

Contract Manufacturing 35.5 20.6 72%

Total Sales 140.4 103.9 35%

Rs. Crore

** As a part of Godrej Soaps Limited

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Q1 Financial Update

54.0

21.9

6.60.8

20.6

66.4

27.9

10.3

0.3

35.5

0. 0

1 0. 0

20. 0

30. 0

40. 0

50. 0

60. 0

70. 0

Godrej

Brand

Soaps

Hair

Colour

Other

Toiletries

Liquid

Detergent

Contract

Mfg

Q1 00-01 Q1 01-02

Category-wise TurnoverCategory-wise TurnoverRs.Crore

23%

27%

55%

72%

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Q1 Financial Update

Off-take GrowthOff-take GrowthQ1 ‘01 vs Q1 ‘00Q1 ‘01 vs Q1 ‘00

Godrej IndustryToilet Soaps 10% -10%Hair Colour 34% 20%Detergents -26% -20%Toiletries 87% 14%All figures are %age of Value Offtake growth

Source : ORG DataAll figures shown are % for All India Value MS

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Q1 Financial Update

Marketing/Sales InitiativesMarketing/Sales Initiatives

• Focus on Personal, Hair & Fabric care Focus on Personal, Hair & Fabric care

segmentssegments

• Large number of Marketing initiativesLarge number of Marketing initiatives

• Restructuring of Distribution System - Restructuring of Distribution System -

Super & Sub Stockists appointedSuper & Sub Stockists appointed

• Increased rural penetration with more Increased rural penetration with more

than 1 million outlets reached for than 1 million outlets reached for

some brandssome brands

• SKU RationalisationSKU Rationalisation

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Q1 Financial Update

Category HighlightsCategory Highlights

Personal CarePersonal Care

• FAIRGLOW continues on its success path FAIRGLOW continues on its success path

• Re-launch of GODREJ NO1 with improved Re-launch of GODREJ NO1 with improved packaging has started showing results – packaging has started showing results – growth of 318% by volume in Q1.growth of 318% by volume in Q1.

• CINTHOL being re-launchedCINTHOL being re-launched

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Q1 Financial Update

Category Highlights Category Highlights (contd . . )(contd . . )

Hair CareHair Care

• Colour Soft Liquid Hair Colour has shown Colour Soft Liquid Hair Colour has shown strong growth (2.7% MS) aided by launch of 4strong growth (2.7% MS) aided by launch of 4thth variantvariant

• GODREJ Powder Hair Dye sachet has become GODREJ Powder Hair Dye sachet has become the best selling rural brand in the hair dyes the best selling rural brand in the hair dyes market market

• GODREJ Kesh Kala has grown in the smaller GODREJ Kesh Kala has grown in the smaller towns (3.1% MS)towns (3.1% MS)

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Q1 Financial Update

Business InitiativesBusiness Initiatives

• Implementation of EVA Implementation of EVA

• Red & Blue Team Project to chalk out a three Red & Blue Team Project to chalk out a three

year strategic planyear strategic plan

• Think TankThink Tank

• Young Executive BoardYoung Executive Board

• E-enabling of the organisationE-enabling of the organisation

• Web enabled ERPWeb enabled ERP

• SCM project SCM project

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FinancialsFinancials

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Highlights Q1 01-02Highlights Q1 01-02

Sales Growth (own Brands)Sales Growth (own Brands) 26 % 26 % (Q1 01-02 vs Q1 00-01)(Q1 01-02 vs Q1 00-01)

PATPAT Rs. 9.2 CroreRs. 9.2 Crore

EVAEVA Rs. 6.5 CroreRs. 6.5 Crore

Reduction in DebtReduction in Debt Rs.34.4CroreRs.34.4Crore

Improvement in Debt Improvement in Debt

Equity RatioEquity Ratio 1.43 to 0.601.43 to 0.60

Achieved Negative Working CapitalAchieved Negative Working Capital

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Balance Sheet Balance Sheet

LiabilitiesLiabilities AssetsAssets 1-4-01 30-6-01 1-4-01 30-6-01

Equity Capital 23.9 23.9 Net Fixed Assets 99.1 97.1

Reserves 24.8 34.0 Net Current Assets 19.1 (4.1)

Debt 69.5 35.1

Total 118.2 93.0 Total 118.2 93.0 Total 118.2 93.0 Total 118.2 93.0

Rs.Crore

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Funds FlowFunds FlowRs.Crore Q1 01-02

Sources

Internal Accruals

11.2

W.Capital Reduction

23.2

Total

34.4

Application

Debt reduction

34.4

Total

34.4

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Q1 Financial Update

Summarised Profit & Loss AccountSummarised Profit & Loss Account

Rs Crore

SalesSales 140.4 140.4 Other IncomeOther Income 2.7 2.7 ExpenditureExpenditure 125.5 125.5 PBDITPBDIT 17.6 17.6DepreciationDepreciation 2.3 2.3InterestInterest 1.5 1.5PBTPBT 13.8 13.8

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Q1 01-02 % of Sales

Material Cost 65.1 46.4%

Staff Cost 4.5 3.2%

Excise Duties 16.1 11.5%

Advertising & Sales Promotion 20.4 14.5%

Other Expenditure 19.4 13.8%

Interest & Financial Charges 1.5 1.1%

Depreciation 2.3 1.6%

Provision for Taxation 4.6 3.3%

PAT 9.2 6.5% Sales 140.4 100.0% Other Income 2.7 1.9%

Cost StructureCost Structure

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Key RatiosKey Ratios

Q1 01-02

PBDIT/ Sales 12.5%

PBT/ Sales 9.8%

PAT/ Sales 6.5%

Interest/ Sales 1.1%

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Q1 Financial Update

Q1 01-02

Net Working Capital / Sales (no. of days) -2.7

Fixed Asset Turnover Ratio 5.8

Total Asset Turnover Ratio 6.0

ROCE 65.8%

RONW 63.4%

EPS on share of Rs.4 each 6.1

Key Ratios Key Ratios contd..contd..

All figures are annualised

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Strategic ThrustStrategic ThrustMarketingMarketing

• Grow faster than the market/categoryGrow faster than the market/category

• Re-invest margins to grow volumesRe-invest margins to grow volumes

• Look at EVA positive acquisitionsLook at EVA positive acquisitions

FinanceFinance

• Maximise EVAMaximise EVA

• Maintain negative working capitalMaintain negative working capital

ManufacturingManufacturing

• Reduce fixed costsReduce fixed costs

• Increase manufacturing in excise/tax exempt areasIncrease manufacturing in excise/tax exempt areas

Godrej Consumer Products Limited

Q1 Financial Update

Thank YouThank You