Godrej Group

Introduction about the Company: Godrej Group
Type of the Company: Private
Industry: Conglomerate
Founded: 1897
Founders: Ardeshir Godrej Pirojsha Godrej
Headquarters: Mumbai, Maharashthra, India
Area served: Worldwide
Key People: Adi Godrej (Chairman)
Products: Real Estate, FMCG, Industrial Engineering, Electronic Appliances, Furniture, Security and Agri-care
Revenue: Rs 1833 crore
Employees: More than 18000
Subsidiaries: GCPL, Godrej Infotech Ltd, Godrej Industries Ltd, Godrej Properties, Godrej Agrovet
Website: www.godrej.com
Introduction to Corporate:
Godrej Group consists of 2 corporate entities:
1. Godrej Consumer Products
2. Godrej Industries
Godrej Industries Ltd. (GIL) is India’s leading manufacturer of oleo-chemicals and makes more than a hundred chemicals for use in over two dozen industries. It also has a major presence in food products such as refined oil and tetra pack fruit beverages. Besides, it operates businesses in medical diagnostics and real estate.
Besides its three businesses, Godrej Industries also runs 4 divisions- Corporate Finance, Corporate HR, Corporate Audit and Assurance and Research & Development- which operate on behalf of the entire Godrej Group.
GIL has built a strong manufacturing base capable of delivering international quality products at competitive prices. It operates two plants, one at Valia in the Indian state of Gujarat and a second at Vikhroli in suburban Mumbai. The company’s products are exported to 40countries in North and South America, Asia, Europe, Australia and Africa, and it leads the Indian market in the production of fatty acids, fatty alcohols and AOS.
Godrej Consumer Products (GCPL) is a leader among India’s FMCG companies, with leading Household and Personal Care Products like Good Knight, Cinthol, Godrej No 1, Expert, Hit, Jet, Fair glow, Ezee, Protekt and Snuggy. It is one of the largest marketers of toilet soaps in the country and is also leaders in hair colors and household insecticides. Each company has several SBU’s, divisions and factories. They are presently exporting their products to 30 countries.
History Of Godrej Group: Started in 1897 as a lock manufacturing company, the Godrej Group is today one of the most accomplished and diversified business houses in India. Godrej’s success has been driven by the company’s commitment to delivering innovation and excellence. Through the consistent application of this commitment and a century of ethical business conduct, Godrej has earned an unparalleled reputation for trust and reliability.
In 1930, Godrej became the first company in the world develop the technology to manufacture soap with vegetable oils; that spirit of innovation has continued throughout the organization’s history. Today Godrej is delivering consumers exciting innovations across a spectrum and enduring. In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose contents were unharmed; and equal level of product quality continues to be expected from every product bearing the Godrej brand name. Godrej management understands that the company’s greatest asset is the trust and faith that consumers have reposted in it, and recognizes that the company must continue to earn this trust. This translates to the organization delivering outstanding quality and value in everything it does.
Godrej’s ethical and visionary practices have allowed the company to successfully expand into a number of businesses. Today Godrej is a leading manufacturer of goods and provider of services in a multitude of categories: home appliances, consumer durables, consumer products, industrial products, and agri products to name a few. A recent estimate suggested that 350 million people across India use Godrej products. The group has more recently entered the real estate and information technology sectors, and management views these as avenues for enormous growth.
The Godrej Group stands in a strong position today. With annual sales is excess of $1 billion, a workforce of approximately 18000 and a strong diversified portfolio, Godrej has proven its ability to deliver strong financial performance.
Achievements:
1. In 1897, Godrej introduced the first lock with lever technology in India.
2. In 1902, Godrej made the first Indian safe.
3. In 1920, Godrej made soap using vegetable oil, which was a huge hit with Vegetarian Community.
4. In 1955, Godrej produced India’s first indigenous typewriter.
5. 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:
1. GCPL, the Highest Ranked Indian FMCG in Asia’s Hot Growth Companies’ List by Business Week.
2. 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.
3. Godrej Consumer Products Ranks 6th in ET-Hewitt Best Employers of India survey.
4. GCPL ranked 15th in Great Places to Work in 2006 Survey.
5. The Corporate Citizen of the Year Award given by Economic Times.
6. Flagship brands Goodknight, Cinthol and Ezee selected Superbrands by the Superbrands Council.
7. Godrej Sara Lee, the JV between the Godrej Group and Sara Lee Corporation, USA is acknowledged the World largest mar manufacturers and South Asia’s largest manufacturers of Coils.
8. Godrej Consumer Products was awarded the “Best Managed Workforce” award given Hewitt Associates and CNBC TV18
9. Godrej Consumer Products freautes in the Top 25 list of Great Places to Work.
10. The Brand Trust Report published by Trust Research Advisory ranked Godrej in 22nd position.
And Godrej has been awarded various other Lifetime Achievement Awards.

Chapter 1:
Strategy:
CREATE approach
3*3 Matrix strategy
Articles

Chapter 2:
Strategy Formulation:
Vision:
Godrej is dedicated to deliver superior stakeholder value by providing solutions to existing and emerging consumer needs in the household & personal care business. “We will achieve this through enduring trust & relentless innovation delivered with passion & entrepreneurial spirit”.

“Godrej in Every Home and Work Place”

In conjunction with Company’s vision for ‘Brighter living’ for all its stakeholders, it has developed a long-term vision for playing an active part in creating a more inclusive and greener India. The vision has been named “Godrej Good & Green”.

Mission:
Godrej’s mission is to operate in existing and new businesses which capitalize on the Godrej brand and our corporate image of reliability and integrity.
Godrej’s objective is to delight our customer both in India and abroad.
Godrej shall strive for excellence by nurturing, developing and empowering it’s employees and suppliers.
Godrej encourages an open atmosphere, conducive learning and team work.
Accelerate the growth of Indian household insecticides market.
To globalize the business rapidly.
Enriching the Quality of Life Everyday Everywhere.

Motto: We care the quality of your life.

Values:
• Commitment to quality
• Customer orientation
• Dedication and commitment
• Discipline
• Honesty and integrity
• Openness and transparency
• Respect/care and concern for people
• Teamwork
• Trust
Objectives:
Over the last year, through an even more strategic approach to corporate social responsibility, the Godrej Group has re-looked at how it can drive more meaningful impact and further its commitment through share value initiatives that create both social and business benefits.
The Group aspires by 2020:
1. To create a more employable Indian Workforce
2. A greener India
3. Innovate for good and green products
Specifically, goals for 2020 as part of “Godrej Good & Green” vision are:
1. Training 1 million rural and urban youth in skilled employment.
2. Achieving zero waste, carbon neutrality, positive water balance and a 30% renewable energy source.
3. Having a third of portfolio revenues comprising of good and/or green products and services- defined as products that are environmentally superior or address a critical social issue (e.g., health, sanitation, disease prevention) for consumers at the bottom of the income pyramid. The Good and Green vision and continues execution towards that vision will be a strong focus for the Company going forward.
Objectives of Godrej Consumer Products Limited:
1. Leverage and enhance the Godrej brand name and that of our brands
2. Focus on enhancing our sales and distribution network within the domestic market
3. To grow and expand our market share through organic growth
4. To accelerate growth and expand our international presence through strategic acquisitions and partnerships
5. Continue to upgrade and modernize our plants and facilities to manufacture and supply products at a low cost
Objectives Godrej Properties Limited:
1. Enhance and leverage the Godrej brand and the group resources
2. Expansion across India
3. Selective outsourcing
4. Focus on out execution
Chapter 3:
Analyzing Godrej’s External Environment:
Factors affecting Godrej:
Porter’s Five Force Model:
Key Success Factors:
1. Core Category Leadership
2. International Growth
3. Renovation and Innovation
4. Future ready sales system
5. Best in class supply chain
6. Agility and professional entreneurialism

Chapter 4:
Analyzing Godrej’s Resources and competitive positions:
SWOT Analysis:
Strengths:
1. Godrej has been competitive player in the market for more than a Century.
2. Godrej has got various flagship products.
3. Godrej is widely diversified itself into various fields and sectors.
4. Godrej is associated with Trust and Loyalty.
5. Godrej has got a strong supply chain management.
6. Godrej has good reputation and brand image in the minds of the customers.
7. Godrej has got millions of customers across the country.
8. Godrej has wide range of product line.
9. Godrej is having better Sales after services.
10. Company is having large number of customer with higher satisfaction.
11. The management is trained and efficient and the network of service centers is good in all states.
12.
13. Godrej’s financial performance throughout is outstanding and is also a market leader in various segments.
14. Superior execution. Weakness:
1. Godrej does not go for advertising and hence is one of the biggest weaknesses as it is not been able to attract the new young generation.
2. New in many of the sectors such as BPO and Real Estate
3. Limited presence in rural areas, which can be a huge market. Reach is limited to a few metro cities.
4. Lack of global tie ups and this affects the exporting and foreign reach.

Opportunities:
1. With RBI’s rate cut there will be boom on real estate sector. Godrej can focus on big project like construction where there is a great demand for security equipment’s.
2. There are large untapped markets in tier 2 and 3 cities.
3. Tie-ups with hotel chains, resorts.
4. Mergers-Acquisitions for strengthening its distribution tie-ups. Threats:
1. Current economic situation may have adverse effect on construction industry.
2. Infrastructure safety always a risk.
3. The growing competition in the security sector.
4. Consumer price sensitivity is a potential external threat to the company.
5. Competitors are emerging by leaps and bounds.
6. Popularity of other brands
7. High customer brand switching for FMCG brands.

Conclusion from the SWOT Analysis: The SWOT analysis is a powerful tool for understanding the internals and externals strengths and weaknesses of the the company.
Value Chain Analysis:

Chapter 5:
Generic Differenciation
Mergers and Acquistions and Joint Ventures
Chapter 6
BCG matrix
Innovation and diversification
GE 9 cell grid planning
Chapter 7
Social responsibility

If we look on year on year end trend..Thewc is coming down and it is in negative in the year 2011-12.
This shows there are very low current assets and there is less day to day liquidity. They are spending without having money.
To reduce the cost down.
To increase working capital
To reduce the sunk cost.
Reserves and surplus is drastically coming down. Reserves are being used in the working capital