PROJECT REPORT ON

Consumer product limited

CONTENTS
Introduction to FMCG History of FMCG products Major players internationally Major players Indian Sector profile Company profile Vision and Mission Current events Financial Overview Marketing Strategy H policy Market S!are Swot analysis "wards and recognition CS #Corporate Social esponsi$ility% ecommendations Our overview

"C&'O()*+G*M*',
Our deep sense of gratitude to all our seniors and for their support and guidance. Thanks and appreciation to the helpful people at INDIRA INSTIT T! O" #ANA$!#!NT % N!& for their support. 'e (ould also like to thank m) Institution and m) facult) mem*ers (ithout (hom this pro+ect (ould ha,e *een a distant realit). I also e-tend our heartfelt thanks to our all (ell (ishers.

I', O+-C,IO' OF FMCG

Fast Moving Consumer Goods /FMCG0 are products that are sold 1uickl) at relati,el) lo( cost !-amples include non2dura*le goods such as soft drinks& toiletries& grocer) items etc. Though the a*solute profit made on "#C$ products is relati,el) small& the) generall) sell in large 1uantities& so the cumulati,e profit on such products can *e large.

SCO.*
The term "#C$ refers to those retail goods that are generall) replaced or full) used up o,er a short period of da)s& (eeks& or months& and (ithin one )ear. This contrasts (ith dura*le goods or ma+or appliances such as kitchen appliances& (hich are generall) replaced o,er a period of se,eral )ears. "#C$s ha,e a short shelf life& either as a result of high consumer demand or *ecause the product deteriorates rapidl). Some "#C$s 3 such as meat& fruits and ,egeta*les& dair) products and *aked goods 3 are highl) perisha*le. Other goods such as alcohol& toiletries& pre2packaged foods& soft drinks and cleaning products ha,e high turno,er rates. The follo(ing are the t)pical characteristics of "#C$s "rom the consumers4 perspecti,e5 "re1uent purchase 6o( in,ol,ement /little or no effort to choose the item 22 products (ith strong *rand lo)alt) are e-ceptions to this rule0 6o( price "rom the marketers4 angle5 7igh ,olumes 6o( margins

!-tensi,e distri*ution net(orks

8

 7igh stock turno,er

S*C,O

. OFI)*

The Indian "#C$ sector is the fourth largest in the econom) and has a market si9e of S:1..1 *illion. 'ell2esta*lished distri*ution net(orks& as (ell as intense competition *et(een the organi9ed and unorgani9ed segments are the characteristics of this sector. "#C$ in India has a strong and competiti,e #NC presence across the entire ,alue chain. It has *een predicted that the "#C$ market (ill reach to S: ...8 *illion in 2;1< from S : *illion 11.= in 2;;.. The middle class and the rural segments of the Indian population are the most promising market for "#C$& and gi,e *rand makers the opportunit) to con,ert them to *randed products. #ost of the product categories like +ams& toothpaste& skin care& shampoos& etc& in India& ha,e lo( per capita consumption as (ell as lo( penetration le,el& *ut the potential for gro(th is huge. The Indian !conom) is surging ahead *) leaps and *ounds& keeping pace (ith rapid ur*ani9ation& increased literac) le,els& and rising per capita income. The *ig firms are gro(ing *igger and small2time companies are catching up as (ell. According to the stud) conducted *) AC Nielsen& =2 of the top 1;; *rands are o(ned *) #NCs& and the *alance *) Indian companies. "ifteen companies o(n these =2 *rands& and 2> of these are o(ned *) 7industan 6e,er. %epsi is at num*er three follo(ed *) Thums p. ?ritannia takes the fifth place& follo(ed *) Colgate /=0& Nirma />0& Coca2Cola /@0 and %arle /A0. These are figures the soft drink and cigarette companies ha,e al(a)s shied a(a) from re,ealing. %ersonal care& cigarettes& and soft drinks are the three *iggest categories in "#C$. ?et(een them& the) account for .< of the top 1;; *rands.

<

,H* ,O. /0 COM."'I*S I' FMCG S*C,O

S1 'O1 1. 2. .. 8. <. =. >. @. A. 1;. Companies 7industan nile,er 6td. ITC /Indian To*acco Compan)0 NestlB India $C##" /A# 60 Da*ur India Asian %aints /India0 Cad*ur) India ?ritannia Industries %rocter C $am*le 7)giene and 7ealth Care #arico Industries

The companies mentioned a*o,e& are the leaders in their respecti,e sectors. The personal care categor) has the largest num*er of *rands& inclusi,e of 6u-& 6ife*uo)& "air and 6o,el)& Dicks& and %onds. There are 11 766 *rands in the 21& aggregating Rs. .&>AA crore or <8E of the personal care categor). Cigarettes account for 1>E of the top 1;; "#C$ sales& and +ust *elo( the personal care categor). ITC alone accounts for =;E ,olume market share and >;E *) ,alue of all filter cigarettes in India. The foods categor) in "#C$ is gaining popularit) (ith a s(ing of launches *) 766& ITC& $odre+& and others. This categor) has 1@ ma+or *rands& aggregating Rs. 8&=.> crore. Nestle and Amul slug it out in the po(ders segment. The food categor) has also seen inno,ations like softies in ice creams& chapattis *) 766& read) to eat rice *) 766 and pi99as *) *oth $C##" and $odre+ %ills*ur). This categor) seems to ha,e faster de,elopment than the stagnating personal care categor). Amul& India4s largest foods compan)& has a good presence in the food categor) (ith its ice2 creams& curd& milk& *utter& cheese& and so on. ?ritannia also ranks in the top 1;; "#C$ *rands& dominates the *iscuits categor) and has launched a series of products at ,arious prices. In the household care categor) /like mos1uito repellents0& $odre+ and Reckitt are t(o pla)ers. $ood knight from $odre+& is (orth a*o,e Rs 21>
=

crore& follo(ed *) Reckitt4s #ortein at Rs 18A crore. In the shampoo categor)& 7664s Clinic and Sunsilk make it to the top 1;;& although %C$4s 7ead and Shoulders and %antene are also tr)ing hard to *e positioned on top. Clinic is nearl) dou*le the si9e of Sunsilk. Da*ur is among the top fi,e "#C$ companies in India and is a her*al specialist. 'ith a turno,er of Rs. 1A *illion /appro-. S: 82; million0 in 2;;<22;;=& Da*ur has *rands like Da*ur Amla& Da*ur Ch)a(anprash& Datika& 7a+mola and Real. Asian %aints is en+o)ing a formida*le presence in the Indian su*2continent& Southeast Asia& "ar !ast& #iddle !ast& South %acific& Cari**ean& Africa and !urope. Asian %aints is India4s largest paint compan)& (ith a turno,er of Rs.22.= *illion /around SD <1. million0. "or*es $lo*al maga9ine& SA& ranked Asian %aints among the 2;; ?est Small Companies in the 'orld. Cad*ur) India is the market leader in the chocolate confectioner) market (ith a >;E market share and is ranked num*er t(o in the total food drinks market. Its popular *rands include Cad*ur)4s Dair) #ilk& < Star& !clairs& and $ems. The Rs.1<.= *illion / SD .@; #illion0 #arico is a leading Indian group in consumer products and ser,ices in the $lo*al ?eaut) and 'ellness space. The main segments of this sector are personal care /oral care& hair care& soaps& cosmetics& toiletries0& household care /fa*ric (ash and household cleaners0& *randed and packaged food& *e,erages /health *e,erages& soft drinks& staples& cereals& dair) products& chocolates& *aker) products0 and to*acco. The Indian "#C$ sector is an important contri*utor to the countr)4s $D%. It is the fourth largest sector in the econom) and is responsi*le for <E of the total factor) emplo)ment in India. The industr) also creates emplo)ment for . m people in do(nstream acti,ities& much of (hich is dis*ursed in small to(ns and rural India. This industr) has (itnessed strong gro(th in the past decade. This has *een due to li*erali9ation& ur*ani9ation& increase in the disposa*le incomes and altered lifest)le. "urthermore& the *oom has also *een fuelled *) the reduction in e-cise duties& de2reser,ation from the small2scale sector and the concerted efforts of personal care companies to attract the *urgeoning affluent segment in the middle2class through product and packaging inno,ations.

>

The Indian "#C$ sector is the fourth largest sector in the econom) (ith a total market si9e in e-cess of S: 1..1 *illion. The "#C$ market is set to tre*le from S: 11.= *illion in 2;;. to S: ...8 *illion in 2;1<. %enetration le,el as (ell as per capita consumption in most product categories like +ams& toothpaste& skin care& hair (ash etc in India is lo( indicating the untapped market potential. ?urgeoning Indian population& particularl) the middle class.

O-,)OO&
There is a huge gro(th potential for all the "#C$ companies as the per capita consumption of almost all products in the countr) is amongst the lo(est in the (orld. Again the demand or prospect could *e increased further if these companies can change the consumer4s mindset and offer ne( generation products. !arlier& Indian consumers (ere using non2*randed apparel& *ut toda)& clothes of different *rands are a,aila*le and the same consumers are (illing to pa) more for *randed 1ualit) clothes. It4s the 1ualit)& promotion and inno,ation of products& (hich can dri,e man) sectors.

HIS,O 2 OF FMCG
In India& companies like ITC& 766& Colgate& Cad*ur) and Nestle ha,e *een a dominant force in the "#C$ sector (ell supported *) relati,el) less competition and high entr) *arriers /import dut) (as high0. These companies (ere& therefore& a*le to charge a premium for their products. In this conte-t& the margins (ere also on the higher side. 'ith the gradual opening up of the econom) o,er the last decade& "#C$ companies ha,e *een forced to fight for a market share. In the process& margins ha,e *een compromised& more so in the last si- )ears /"#C$ sector (itnessed decline in demand0.

COM."'2 . OFI)* Godrej Group

The $odre+ $roup is an Indian conglomerate founded *) Ardeshir and %iro+sha $odre+ in 1@A>& 6al*aug& #um*ai. !sta*lished in 1@A>& the $odre+ group has gro(n in India from the da)s of the charkha to nights at the call centres. Our founder& Ardeshir $odre+& la()er2turned2locksmith& (as a persistent in,entor and a strong ,isionar) (ho could see the spark in the future. 7is in,entions& manufactured *) his *rother %iro+sha $odre+& (ere the foundation of toda)Fs $odre+ empire. One of IndiaFs most trusted *rands& $odre+ en+o)s the patronage and trust of o,er 8;; million Indians e,er) single da). Our customers mean the (orld to us. 'e are happ) onl) (hen (e see a delighted customer smile. $odre+ $roup is one of the largest conglomerates *ased in #um*ai& India& in,ol,ed in ,arious industries that include appliances& precision e1uipment& machine tools& furniture& healthcare& interior solutions& office e1uipment& food2processing& securit)& materials handling and industrial storage solutions& construction and information technolog). Its products include securit) S)stems and Safes& T)pe(riters and 'ord processors& Rocket 6aunchers& Refrigerators and "urniture& Outsourcing Ser,ices& #achine
A

Tools and %rocess !1uipment& Cosmetics and Detergents& !ngineering 'orkstations& #edical Diagnostics and Aerospace !1uipment& !di*le Oils and Chemical& #os1uito Repellents& Car perfumes& Chicken and Agri2 products& #aterial 7andling !1uipments 6ike "ORG6I"T Trucks& Stackers& T)re handlers& S(eeping machines& access e1uipments etc. The $roup is headed *) Adi $odre+ and Hamsh)d $odre+. Traditionall)& Dikhroli& a su*ur* to the Northeast of #um*ai has *een $odre+4s manufacturing *ase& *ut increasingl) the group ha,e mo,ed significant production facilities a(a) from #um*ai. The $odre+ group also o(ns ,ast land in Dikhroli& occup)ing .<;; acres /18 s1 km0 of land on *oth sides of the Dikhroli section of the 6?S marg. That makes the $odre+ group the *iggest pri,ate land o(ner in #um*ai *) far. Such ,ast land can& in theor)& *e used to create at least 1<;; acres of residential floor space& (hich& at ,er) modest rates /Rs.1;;;;Is1 ft0& can *e sold for SD 1= *illion . Thus& the $odre+ group is sitting on an in,isi*le cash pile that is en,) of other Indian conglomerates.

Godrej Consumer .roducts )td

M1+ 3Ma!endram
400/ 2 $odre+ Consumer %roducts 6td /$C%60 is setting up a parallel *oard of directors kno(n as the Joung !-ecuti,e ?oard. 4004 2$odre+ Consumer %roducts 6td has informed ?S! that it (ould *u)*ack its o(n full) paid up e1uit) shares of face ,alue of Rs.8 each from the open market. 2$C%6 has entered into the deodorants categor) (ith the launch of Cinthol International %erfumed deodrant. 2$odre+ has entered the traditional po(dered 4henna4 market (ith the launch of po(dered henna under the *rand 4Nupur4& (hich is priced at Rs.12 for an @;gm pack.

1;

2'hirlpool of India and $odre+ Appliances ha,e filed complaints (ith #RT%C against 6$ !lectronics India alleging that compan) (as o,er2 claiming the liter2capacit) of its frost2free refrigerators. 2$C%6 has relaunched $odre+ "air $lo(& India4s first and largest selling fairness soap& (ith an impro,ed product *lend. 2$C%6 has classified its *usiness into t(o groups5 soaps and personal care. 2As per OR$2$"G figures& 'hirlpool and $odre+ are in the top 2 positions among refrigerator *rands during the festi,al season. 4005 2ICRA has assigned SD$2 C C$R2 ratings to $odre+ consumer products 6td. 2$odre+ Consumer %roducts 6td test2launched for the Southern region a ne( soap under its Rs.@;cr "air $lo( *rand& the "air $lo( Saffron Toilet soap. 2Contract Ad,ertising4s #um*ai office has (on the creati,e duties for $odre+ Sha,ing cream and $odre+ Sha,ing gel. 2$C%6 has entered into an agreement (ith Shogun Diapers 6td. for ac1uisition of trademark and cop)right relating to the *rand 4snugg)4. 2$odre+ consumer products has re launched its sha,ing cream range and introduced four ne( ,ariants including Rich "oam& 6ime fresh& #enthol #ist and %rotect plus. 2$C%l has un,eiled ne( A)ur,edic soap in Gerala under the $odre+ No.1 ?rand. 2$odre+ Consumer %roducts has launched $odre+ !9ee Silk 6i1uid detergent in Gerala& (hich is speciall) formulated li1uid detergent (ith a ne( p7 *alance technolog). 2Recei,ed intimation from Citi*ank NA on #arch ;.& 2;;8 that their client R?S Ste(art I,or) Asia %acific (as holding .1&@2&@11 shares of the compan) and the same has *een transferred to a ne( entit)& "irst State Asia %acific "und. The date of ac1uisition is "e*ruar) 2=& 2;;8 and the mode of ac1uisition is *) (a) of 5 Off market transaction. The shareholding of "irst State Asia %acific "und after the said ac1uisition is .1&@2&@11 shares amounting to <.<A.E of the total paid up capital of $odre+ Consumer %roducts 6imited. 2Dlist from the Ahmeda*ad Stock !-change /AS!0 (ith effect from Octo*er 1<& 2;;8.

11

4006 2$C%6 launches 4Cinthol Deo Soap4 2$odre+ Consumer mulls to *u)2*ack e1uit) shares from open market 2$C%6 to tap rural market (ith *rand ne( soap 4Nimin4 4007 2Delist e1uit) shares from The Calcutta Stock !-change Association 6td /CS!0 (.e.f. #arch .;& 4007. 2 $odre+ Consumer %roducts 6td /$C%60& ropes in #ona Singh of Hassi Haissi Goi Nahin /a popular serial on the Son) channel0 to *e the *rand am*assador for $odre+ No.1 soaps. 2$odre+ Consumer ac1uires "#C$ compan) Ge)line ?rands 6td& .G. 4008 2$C%6 ac1uires hair2colour *i9 in S. Africa 2$C%6 rolls out !DITA age control soap 2$C%6 +oins other "#C$ ma+ors for o,erseas ac1uisitions 4009 2$odre+ Consumer 2 Ac1uisition of 1;;E o(nership interest in $odre+ $lo*al #ideast "K!& Shar+ah 2$odre+ +oins hand (ith S(edish co 2$C%6 C SCA 7)giene %roducts A?& S(eden form <;5<; +oint ,enture 400: 2The compan) has issued rights in the ratio of 15> at a premium of Rs.122I2%er Share. $C%6 is an Indian "#C$ compan). $ro(ing at a fast rate. The #arket leader in 7air colours and the second *iggest compan) in Toilet soaps categor) (ith *rands like $odre+ No 1& Cinthol and "airglo(. $odre+ No 1 is the .rd largest selling soap *rand in the countr)& a market leader in North and in the states of %un+a*& 7ar)ana and %.?ranch Offices in #um*ai& Delhi& Golkata and Chennai ensure pan2India co,erage& (hile factories located at #alanpur /#adh)a %radesh0& Thana /7imachal %radesh0& Gatha /7imachal %radesh0& $u(ahati /Assam0 and Sikkim cater to the di,erse re1uirements of our product portfolio. 'ith the ac1uisition of Ge)line ?rands in the nited Gingdom& Rapidol and Gink) $roup& South Africa and $odre+ $lo*al #ideast "K!& a 1;;E su*sidiar) of $odre+ International& $C%6 no( o(ns international *rands and trademarks in !urope& Australia& Canada& Africa and the #iddle !ast. At $C%6& (e are dri,en *) our mission to continuousl) enhance the 1ualit) of life of consumers in high2gro(th markets (ith superior21ualit) and afforda*le personal care and h)giene products.

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VISIO'
Our ,ision is to *e a leader in the Indian "ood and *e,erage space *) *reaking into the e-clusi,e league of top ten "#C$ food companies in India. $odre+ in !,er) 7ome and 'ork place

MISSIO'
$odre+ #ission is to operate in e-isting and ne( *usinesses (hich capitali9e on the $odre+ *rand and corporate image of relia*ilit) and integrit). $odre+ o*+ecti,e is to delight itFs customer *oth in India and a*road. $odre+ shall stri,e for e-cellence *) nurturing& de,eloping and empo(ering itFs emplo)ees and suppliers. $odre+ encourageFs an open atmosphere& conduci,e to learning and team (ork $odre+ mission is to do sales of Rs. 1;;; Crores *) 2;12& profita*l) at margins that are *est in class in "#C$ goods. 'e (ill achie,e it through unparalleled *usiness inno,ations and consumer satisfaction.

1.

GO+ *; . O+-C,
$odre+ Consumer %roducts& leading "#C$ ma+or has reported a handsome gro(th of >@E in its net profit for the first 1uarter ended Hune .;& 2;;A.During the reporting period& the compan) has recorded a net profit of Rs =A crore. In a communi1uB to ?om*a) Stock !-change /?S!0& the compan) said that it has clocked a much higher profit in the latest 1uarter compared to a net profit of Rs .A crore in the same period last )ear

$ODR!H CONS #!R %ROD CTS 6TD has launched Cinthol Deo Soap2 Sport& (hich is said to offer the user *enefit of a deodorant (ith the con,enience of soap. It is a,aila*le at Rs 1. /><g0 and Rs 2; /12<g0& (ith an offer of L?u) . $et 1 "ree.4

18

CO'S-M* . OFI)*

1<

M";O
1. nile,er

.)"2* S I',* '",IO'")

2. Colgate C %almoli,e .. Cad*ur) 8. $illette <. Nestle =. Da*ur India >. $eneral mills @. Reckitt ?enckiser4s A. %arle

1=

M";O .)"2* S +OM*S,IC

1.7industan 2. ITC .. Nestle india 8. $C##" /Amul0 <. Da*ur India ltd =. Asian %aints >. Cad*ur) @. ?ritannia Industries A. #arico Industries ltd 1;.Nirma ltd 11.Rasna ltd 12.#odi Re,lon nile,er 6.T.D.

1>

M" &*, SH" *

$C%6 e)eing 2<E market share in hand saniti9er segment. "#C$ ma+or $odre+ Consumer %roducts /$C%60 is targeting a 2< per cent market share in the hand saniti9er segment this fiscal& a top compan) official said. The compan) has launched se,eral products& including saniti9ers& (et2(ipes and hand2(ash under its *rand %rotekt& (ith an aim to get a grip on the hand h)giene market. MThe saniti9er market is o,er Rs 2< crore...'e are e)eing a 2< per cent share in this fiscal&M $C%64s !-ecuti,e Dice2%resident #arketing Tarun Arora told reporters here toda)& after launching 4"reedom to Touch4 campaign for its product. $odre+ Consumer %roducts 6td /$C%60 had organi9ed an anal)st meet to discuss "J;@ results and its future strategies. The ke) highlights of the meet are listed *elo(5 $C%6 2 the second largest toilet soap pla)er in the countr)& recorded 1<.AE )o) gro(th in net sales at Rs11*n during "J;@& dri,en *) strong 1A.@E )o) gro(th in toilet soaps and 21.8E in hair color segment. A*out 2<E of the compan)4s turno,er is from international *usiness& (hich includes its past ac1uisitions& e-ports& and +oint ,enture 2 $odre+ SCA 7)giene 6td. Segmental $reak3up Segments N8 "J;@ N8 "J;> )o) /E0 "J;@ "J;> )o) /E0 Soaps 1&2=; 1&1>A =.A <&=A; 8&><1 1A.@ 7air Colour =A> <.< .;.8 2&<1@ 2&;>8 21.8 Toiletries =28 =12 1.A 2&2.; 2&18A ..@ 6i1uid Detergents => <. 2= .@< .@@ 21 $odre+ ?rands 2&=8@ 2&.>A 11.. 1;&@2. A&.=2 1<.= ?) products sale >; .A @;.= 2;. 1<. .2.A Total 2&>1@ 2&81@ 12.8 11&;2= A&<1< 1<.A

1@

C!anging revenue mi<

1.

Operating margins e-panded *) =;*ps to 1A.<E aided *) drop in ra( material cost /1=;*ps0. $C%6 mitigated the impact of higher ra( material prices *) increasing soap prices and *etter procurement management. The compan) had recei,ed an e-traordinar) income of RsAAmn during "J;> /ta- ad+ustment of Rs8@.1mn and profit of Rs<;.>mn from sale of Snugg) *rand to $odre+ SCA 7)giene 6td.0 Ad+usted net profit for the )ear rose *) 1;.=E )o) to Rs1.=*n. $C%6 had taken a price hike of <2@E in its soap *rands during N1 "J;@ and N. "J;@ to mitigate the impact of firm ,egeta*le oil prices. $C%6 is likel) to undertake one more price hike in the soap categor) if ,egeta*le oil prices continue to rise. The compan) has no plans to undertake price hike in an) other categor). The management e-pects its add spend to *e higher *) O<;E /from O=2>E of net sales to OAE of net sales0 on )o) *asis in the first and second 1uarter of current fiscal. During "J;@& $C%6 relaunched its po(der hair d)e as $odre+ !-pert 7air D)e (ith perfume and conditioner. It has also introduced Rene( %o(der 7air Colour and relaunched flagship *rand Cinthol in a range of soaps& talc and deo spra)s.

1A

$C%6 has incurred a cape- of Rs1.1*n for capacit) e-pansions during "J;> and "J;@. $C%6Ps Gatha plant *ecame operational from Decem*er 2;;=& (hile Sikkim facilit) *ecame operational from #arch 2;;>. $C%6Ps #alanpur plant /fatt) acid and soap noodles0 has commenced operations from #a) 2;;@. Of distri*uting $odre+ "#C$ products in the #iddle !ast. $C%6 is soaps shipments registered a strong 1A..E gro(th (ell ahead of categor) gro(th of A.=E during "J;@. $C%6 has achie,ed a A.1E market share in the domestic soap market and its $odre+ No. 1 soap has *ecome the largest selling $rade 1 soap in the countr). SO".S= V")-* G O(,H

Source= Company> India Infoline esearc!

$C%6 is hair colour segment gre( *) 12E (hile the categor) gre( *) 1...E during "J;@. $C%6 is the market leader in the hair colour market (ith a strong .<.1E market share. %o(der hair colour accounts for <8E of ,olumes in this categor).

2;

Hair Colorants= value growt!

Source= Company> India Infoline esearc!

!-ports currentl) account for O2<E of $C%6Ps total re,enues. $C%6 has added four ne( countries P Curacao& 6i*eria& 6i*)a and Tan9ania during the )ear. The compan) no( e-ports to .@ countries. During the )ear& $C%6 has made its first shipment of its products to Ge)line ?rands 6td /po(der hair d)e in *ottles and "air$lo( soap0 and Rapidol %t). 6td /$odre+ No. 1 soap& Rene( hair colour0.

,rend in e<ports

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Source= Company> India Infoline esearc! .erformance of &eyline ?rands )td /Rs mn0 "J;@ "J;> )o) /E0 Total income 1&=@; 1&=>< ;.. %?IT 1@1 2.> /2..=0 Interest .A .A 2 %?T 182 1AA /2@.=0 Ta8A <A /1=.A0 %AT A. 1.A /...10 !DAQ ;.< .2.; 2 Source5 Compan)& India Infoline Research. /Date of ac1uisition 2 Septem*er ;1& 2;;=0 During April 2;;@& $C%6 ac1uired 1;;E stake in the Gink) $roup /%roprietar)0 6td& South Africa /Gink)0 for O2=<mn South African Rand. Gink) offers a ,ariet) of products like hair& hair *raids& hair pieces& (igs& (efted pieces and hair accessories like st)ling gels& hair spra)s and oil free shampoo. Gink) has a market share of 1;E in the South African market. Gink) recorded re,enues of @<2A;mn South African rand in "J;@ (ith a profit2to2sales ratio at .;2.<E. Gink) has *een gro(ing *) 2;ER and has a higher gro(th potential. $C%6 e-pects the Gink) *rand to register strong gro(th post e-pansion to more geographies (ith its portfolio of natural and artificial hair products. $C%6 is strengthening its hair care product portfolio and is looking to *u) such companies o,erseas. On Octo*er ;1& 2;;>& $C%6 ac1uired $odre+ glo*al #ideast "K!& a 1;;E su*sidiar) of $odre+ International 6td. It (as esta*lished in Shar+ah (ith the o*+ecti,e.

22

FI'"CI") OV* VI*(

"inancials Rs /in Crores0 For t!e year Operating Income Net %rofit Net 'orth No. of Shares /in crore0 Ad+usted !%S /Rs0 ?ook ,alue per Share /Rs0 D,dnd per Share /Rs0 Net %rofit #argin /E0 Current Ratio 6t De*t !1uit) 0:@05 @A2 18@ 18= 2. > > 8 1= 1 1 09@05 >=1 122 1;A 2. < < 8 1= 1 1 08@05 =<= 121 >< = 21 1. 18 1@ 1 ; 07@05 <=. @= 8@ = 1< A 12 1< 1 ;

2.

H .O)ICI*S

Development/management of human resource policies of the company Ensuring compliance of human resource policies of the company to relevant legislation applicable to the sphere; Development of training programs for the personnel of the company; Training of personnel; Execution of HR management, including recruitment process, employment and further retention of personnel; Development/management of compensation and benefits policies and schemes; Development of salary policy and support to the accountant in payment processes; Identification of the needs of the personnel and development of programs to meet the needs for ensuring higher efficiency; Reporting to the eneral !anager and provision of support in all HR related issue"

C-

*', *V*',

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?usiness Ne(s $odre+2SCA HD 7e(itt ?est !mplo)ers A(ard $reat %laces to 'ork A(ard Nupur Hagruti2A ,oice against Do(r) Ne( Gochi $odo(n $C%6 and SCA 7)giene %roducts A?& S(eden form <;5<; +oint ,enture $odre+ Consumer %roducts Ranks =th in !T27e(itt ?est !mplo)ers of India sur,e). $C%6 ranked 1<th in $reat %laces to 'ork 2;;= sur,e) $C%65 ?ack To Class AT $odre+ Consumer %roducts 6td /$C%60& the) make sure learning ne,er stops. Three )ears ago& the compan) *egan a 2;2month e-ecuti,e #?A programme for its emplo)ees& (ith 2< people on *oard. Toda)& the num*er is four times that. In addition& 'e*2*ased learning is made possi*le through $O6D /$odre+ Organi9ation for 6earning and De,elopment0. It has signed up (ith G2*ased Net$ to distri*ute e2learning modules among its (orkforce. $odre+ Nupur Hagruti 2MA Doice Against Do(r)M launched in #um*ai On the occasion of 'omen4s Da) on #arch @th& $odre+ Nupur& the #ehendi *rand of $odre+ Consumer %roducts 6imited launched 4Nupur Hagruti2Dahe+ Ge Ghilaf !k A(a94 an initiati,e to Stand against Do(r). Citi9ens pledged their support to this anti2do(r) campaign *) forming a human chain in a *id to e-press their stance at the $ate(a) of India& #um*ai. !9ee 2Ad+udged a Consumer Super *rand *) the Super *rand Council $odre+ !9ee (as conferred the Consumer Super *rand a(ard at a glittering function at Ta+ 6ands !nd on April 12th 2;;>. %roduct Ne(s 6aunch of "air$lo( in a *rand ne( pack 6aunch of Digil $rade I health soap $C%6 launches SDigilF& the first $rade 1 7ealth Soap in India

2<

I',* '",IO'") M" &*,

'ith the ac1uisition of Ge)line ?rands in the nited Gingdom& Rapidol and Gink) $roup& South Africa and $odre+ $lo*al #ideast "K!& a 1;;E su*sidiar) of $odre+ International 6td.& $C%6 no( o(ns international *rands and trademarks in !urope& Australia& Canada& Africa and the #iddle !ast.

2=

S(O, "'")2SIS
S, *'G,HS
1. The Compan) has got (ide range of *ranches (ithin the countr). 2. The Compan) has (ide range of product line. .. $odre+ is ha,ing *etter Sales after ser,ices. 8. The Compan) has there respecta*le and *elie,a*le *rand name. <. Compan) is ha,ing large num*er of customer (ith higher satisfaction. =. The management is trained and efficient C the net(ork of ser,ice centers is good in all states.

(*"&'*SS
1. The Compan) does not go for ad,ertising& (hich is one of the *iggest disad,antage of $odre+. 2. Its emphasis more on the ad,ertising of office automation C prime di,ision. .. The compan) is focusing man) securit) products at a same time. 8. The effecti,e selling schemes are not a,aila*le like pa)ment on installment.

O..- ,-'I,I*S=
1. $odre+ has more opportunities to gro( as it has earned good name in securit) sector. 2. Technical up gradation time to time is also one of the opportunities. .. $odre+ can focus on *ig pro+ect like construction. 'here there is a great demand of securit) e1uipments

,H *",
2>

The gro(ing competition in the securit) sector is threat for all manufacturing companies so it is also threat for $odre+ to stand in the market (ith the higher position.

"(" +S A *COG'I,IO'
2@

 In 1@A>& $odre+ Introduced the first lock (ith le,er technolog) in India. In 1A;2& $odre+ made the first Indian safe. In 1A<<& $odre+ produced India4s first indigenous t)pe(riter In 1A@A& $odre+ *ecame the first compan) to introduce % " / %ol)urethane "oam0 Introduced India4s first and onl) 1;;E C"C& 7C"C& 7"C free refrigerators. $C%6& the 7ighest Ranked Indian "#C$ in Asia4s 7ot $ro(th Companies4 6ist *) ?usiness 'eek $odre+ Consumer %roducts 6td. has *een ranked 18th in The ?est Companies to 'ork "or stud). This stud) (as +ointl) conducted *) ?usiness Toda)& #ercer and Ta)lor Nelson Sofres /TNS0 $odre+ Consumer %roducts Ranks =th in !T27e(itt ?est !mplo)ers of India sur,e) $C%6 ranked 1<th in $reat %laces to 'ork 2;;= sur,e) The Corporate Citi9en of the Jear A(ard gi,en *) !conomic Times. "lagship *rands $ood knight& Cinthol and !9ee selected Super*rands *) the Super *rands Council $odre+ Sara 6ee& the HD *et(een the $odre+ $roup and Sara lee Corporation& SA is ackno(ledged the 'orld4s largest mat manufacturers and South Asia4s largest manufacturers of Coils. $odre+ Consumer %roducts 6imited& ad+udged as a ?usiness Super *rand *) the Super ?rands Council. The Return on Capital !mplo)ed and Return on Net 'orth ratios of $odre+ Consumer %roducts 2 the highest in corporate India.

$odre+ Consumer %roducts (as a(arded the M?est #anaged 'orkforceM a(ard gi,en *) 7e(itt Associates and CN?C TD1@. $odre+ Consumer %roducts features in the Top 2< list of $reat %laces to 'ork /sur,e) conducted *) $ro(Talent in association (ith ?usiness 'orld0 for four )ears in a ro(.
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 6ifetime Achie,ement A(ard for $odre+ Industries from C7!#!TCI6& the ?asic Chemicals %harmaceuticals and Cosmetics !-ports %romotion Council.

CS #C .O ",* SOCI") *.O ,%

The) *elie,e that en,ironment& safet) and health are important components of an) (ell2 run *usiness and (ould like e,er) mem*er of the $odre+ 4pari,ar4& and the e-tended famil)& to inculcate these ,alues. $odre+ Compan) has a green imageU the credit goes to $odre+ founders. ntil 1AA< $odre+ had not pu*lici9ed their efforts. The) (ere doing things for the +o) it ga,e them. It (as in 1AA= that the) adopted the S)stem4s approach and then the entire *usiness (as in,ol,ed in changing processes and setting procedures to gi,e due consideration to the mangro,es. As a matter of fact& some of the *usinesses found that the conser,ation of mangro,es actuall) helped them in strengthening *usiness relationships (ith clients& go,ernment and customers. #AN$ROD! D!D!6O%#!NT5 #angro,es are essential to the ecolog) of the coast and the island. The) pro,ide fertile ground for fish to feed and *reed in and nurture a large ,ariet) of *irds. #angro,e conser,ation has *een the ke) focus of the !n,ironment Cell. The !n,ironment Cell has a *road mandate to mentor and monitor all their acti,ities so as to ensure high standards. The residential to(nship and communit) around the compan) is also a focus of their !n,ironment Cell. /#AN$ROD! AR!A DIG7RO6I0 ?N7S and the Soona*ai %hiro+sha $odre+ "oundation made efforts to replant mangro,es in Dikhroli2$hatkopar in the earl) A;4s

.;

*COMM*'+",IO'S
The Compan) should ad,ertise its Securit) e1uipment. Toda) %rice *ased competition is sk)rocketing so if it is possi*le that Compan) should cut do(n its securit) e1uipments price. Compan) should promote its securit) e1uipment through canop). Compan) should do mall acti,ities once in a (eek *ecause it is necessar) to promote the high in,ol,ement securit) product.

O- OV* VI*(
The $odre+ $roup stands in a strong position toda). 'ith annual sales in e-cess of :1 *illion& a (orkforce of appro-imatel) 1@&;;;& and a strong di,ersified portfolio& $odre+ has pro,en its a*ilit) to deli,er strong financial performance. The philanthropic acti,ities *) the chairman #r.ADI $ODR!H and other famil) mem*er se,en *efore the (ord CSR (as kno(n has made the $odre+ group one of the most trusted *usiness house in India. Toda) the group holds an e-ample of ethical and most transparent group of *usiness (ho is concerned not onl) to ma-imi9e shareholders ,alue *ut at the same time in,ests responsi*l) in social and en,ironmental (elfare. The $odre+ $roup is toda) one of the most accomplished and di,ersified *usiness houses in India. $odre+Fs success has *een dri,en *) the compan)Fs commitment to deli,ering inno,ation and e-cellence. Through the consistent application of

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this commitment and a centur) of ethical *usiness conduct& $odre+ has earned an unparalleled reputation for trust and relia*ilit)

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