1

INVESTOR PRESENTATION

GODREJ CONSUMER PRODUCTS

acquisitions established
a platform for a leading

soap

leading market
share
in core
categories

among FMCG companies in India

value
creation

excellent track record of

hair colours
household insecticides
liquid detergents

India
business

revenues come from

international businesses

47%
emerging markets
FMCG company

internationally

strong positions
home care
in core categories hair care

in sales in FY 15

US $1.4 billion

largest home grown HPC company

GODREJ CONSUMER PRODUCTS SNAPSHOT

FY14

FY13

REVENUE

International

53%

55%

India

47%

45%

FY15

53%

47%

International

EBITDA

India

FY14

FY15

61%

64%
63%

FY13

39%

36%

37%

INTERNATIONAL BUSINESS IS CONTRIBUTING NEARLY

HALF OF OUR CONSOLIDATED REVENUES NOW

household
insecticides

soaps

air fresheners
wet tissues

1
2
INDONESIA

hair colours
household insecticides
liquid detergents

INDIA

1
2
4

sun care
female deodorants

sanitisers

stretch marks skin

treatment

hair colours
(Bangladesh)
household insecticides
(Sri Lanka & Bangladesh)

hair colours (Sri Lanka)

UK

SAARC

WE HAVE LEADING MARKET POSITIONS IN MOST OF

OUR GEOGRAPHIES

hair colours*
(Argentina, Uruguay,
Paraguay, Bolivia)

hair colours &

colour cosmetics
(Chile)

LATIN AMERICA

2
3

hair extensions
(1 country)

caucasian hair colours

(South Africa)

ethnic hair colours

(14 countries)
hair extensions
(10 countries)

SUB SAHARAN AFRICA

* Volume Share

WE HAVE LEADING MARKET POSITIONS IN MOST OF

OUR GEOGRAPHIES

FY13

15%

20%

India HPC

FY14

8%

14%

GCPL

FY15

6%

9%

INDIA NET SALES GROWTH*

FY13

13%

FY15

12%

* Nielsen data for India HPC growth

EBITDA growth

FY14

17%

EBITDA GROWTH (%)

IN INDIA, WE HAVE DELIVERED CONSISTENT, HEALTHY

AHEAD OF THE CATEGORY SALES GROWTH

Hair
colour/dye/henna

Insecticides

Toilet soaps

37%

44%

PENETRATION - % OF HOUSEHOLDS

99%

Source: Nielsen

THERE IS SIGNIFICANT HEADROOM FOR GROWTH IN HAIR

COLOURS AND HOUSEHOLD INSECTICIDES

Urban

Rural
26%

HAIR COLOURS

60%

Urban

Rural

28%

HOUSEHOLD INSECTICIDES

PENETRATION - % OF HOUSEHOLDS

Source: Nielsen

77%

PARTICULARLY A LOT OF POTENTIAL TO INCREASE PENETRATION

IN RURAL FOR HAIR COLOURS AND HOUSEHOLD INSECTICIDES

0.3

0.2

Indonesia

India

0.2

China

Malaysia

Thailand

HAIR COLOURS

1.1

1.1

India

China

Indonesia

Thailand

Malaysia

0.5

1.0

1.5

1.6

3.9

Source: Euromonitor, Nielsen

HOUSEHOLD INSECTICIDES

CONSUMPTION / CAPITA (USD)

SIGNIFICANT UPSIDE IN DRIVING CONSUMPTION

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7%

FY14

18%

GCPL

Category

7%

FY15

9%

VALUE GROWTH (%)

Source: Nielsen for category growth

OUR HOUSEHOLD INSECTICIDES BUSINESS CONTINUES TO

PERFORM WELL AHEAD OF THE MARKET

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GCPL

3%

FY14

6%

2%

Source: Nielsen for category growth

Category

FY15

10%

VALUE GROWTH (%)

OUR SOAPS BUSINESS TOO, OUTPERFORMED

THE MARKET

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8%

FY14

27%

GCPL

Category

6%

FY15

11%

VALUE GROWTH (%)

Source: Nielsen for category growth

Nielsen
Breakthrough
Innovation
Report 2014

Godrej Expert
crme hair
color features in

NEW INNOVATIONS IN HAIR COLOURS ARE DRIVING GROWTH

AHEAD OF THE CATEGORY

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Q4FY14

Q3FY14

Q2FY14

Q1FY14

13.7%

17.8%

21.3%

India

International

Q2FY15

Q1FY15

Consolidated

Q3FY15

IMPROVEMENT IN EBITDA MARGINS

Q4FY15

14.6%

18.6%

21.9%

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FY13

49%

FY14

24%

FY15

9%

INTERNATIONAL NET SALES GROWTH

LATAM
16%

UK
13%

Africa
30%

Others
4%

Indonesia
37%

* FY15

INTERNATIONAL SALES BREAKUP*

OUR INTERNATIONAL BUSINESS IS SCALING

UP WELL

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Air
Fresheners

Household
Insecticides

Hair Colour

Aer air fresheners

(Indonesia)

INDIA

Hit Magic, paper based mosquito

repellent
(Indonesia)

INDIA

Hair colour creme in sachet

(Argentina)

INDIA

Good knight coils & aerosols

(India)

NIGERIA

Renew hair colour

(India)

SOUTH
AFRICA

WE ARE ACTIVELY CROSS POLLINATING THE PORTFOLIO

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becomes INR 100

crore brand in
less than a year

Good knight
Fast Card

the highest selling

crme color by
units within 20
months of its
launch

Godrej Expert
crme hair
color becomes

OUR INNOVATION PIPELINE CONTINUES TO REMAIN

ROBUST

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GCPL FORAYS INTO FACE WASH CATEGORY WITH

INNOVATIVE PACKAGING AT DISRUPTIVE PRICES

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An Oil based hair colour with Henna in a crme format

PREMIUMISING OUR HAIR CARE PORTFOLIO

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Hair colour and hair extensions. for makeovers,

short-term, long-term or just a few hours.

TRANSFORM

Shampoo-conditioner systems for every hair type.

Prepare your hair for great styling.

PREP

Styling products and tools bringing salon smarts into

your hands. Switch up your look - do it your way.

STYLE

BBLUNT: OUR FORAY IN PREMIUM HAIR CARE IN INDIA

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Future ready
sales system

Core category
leadership

Best in class
supply chain

International
growth

OUR SIX KEY PRIORITES

Agility and
high
performance
culture

Innovation
and
renovation

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

19.1

FY05

107

563

FY06

150

700

FY07

182

952

19.8

FY08

219

1,103

EBITDA CAGR: 29%

Sales CAGR: 31%

19.0

21.4

Sales

FY09

211

1,393

15.1

FY10

411

2,041

20.1

EBITDA

FY11

653

3,676

17.8

FY12

876

4,851

18.1

FY14

1,184

15.6

7,583

FY15

1,369

16.6

8,242

Note: Values in INR crs

FY13

1,015

15.9

6,391

EBITDA margin (%)

WE HAVE CONSISTENTLY DELIVERED

STRONG PERFORMANCE

5.0

10.0

15.0

20.0

25.0

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4Q FY2015 SNAPSHOT

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13%
12%
15%

12%

EBITDA

EBITDA Organic**

EBITDA - Organic constant currency**

Net profit

13%

13%

13%

13%

10%

10%

10%

India

12%

20%

11%

15%

14%

6%

7%

International

* Excludes inorganic sales of INR 9.1 crores from Ghana and Frika for 4QFY15
** Excludes - Darling trademark licensing fees, Ghana and Frika profitability aggregating to INR 4.4 crores for 4QFY15

12%

8%

Net Sales Organic*

Net sales - Organic constant currency*

8%

Consolidated

Net Sales

Growth

4Q FY2015

4Q FY2015 PERFORMANCE OVERVIEW

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categories

driving penetration in relatively underpenetrated

New launches witnessing good success and

efficiencies

Continue to drive premiumisation strategy and cost

across three categories

Growth well ahead of the category

STRONG RECOVERY IN DOMESTIC BUSINESS

ALONG WITH EXPANSION IN MARGINS

BUSINESS SNAPSHOT

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of distributed brands

our owned brands along with some improvement in the sales

UK business recovers driven by competitive performance of

holding up market share amidst tough competition

Significant margin improvement in Latin America; business

care products to leverage existing distribution capabilities

new product rollouts such as household insecticides, wet hair

Africa business strong outperformance in Darling business;

macro headwinds

Indonesia business continues its strong growth despite

INTERNATIONAL BUSINESS PERFORMANCE

REMAINS STRONG AND ON TRACK

BUSINESS SNAPSHOT

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1,134
639

56.4%

248
21.9%
188
16.6%

1,033
534

51.7%

220
21.3%
167
16.2%

Sales

Gross Profit

Net Profit Margin (%)

Net Profit

EBITDA Margin (%)

EBITDA

Gross Margin (%)

4Q FY15

4Q FY14

India

40 bps

13%

60 bps

13%

470 bps

20%

10%

Y/Y

12.3%

236

17.8%

342

52.0%

1,001

1,924

4Q FY14

12.8%

266

18.6%

387

55.3%

1,151

2,083

4Q FY15

Consolidated

50 bps

12%

80 bps

13%

330 bps

15%

8%

Y/Y

4Q FY2015 REPORTED PERFORMANCE SNAPSHOT

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Currency volatility ZAR, IDR, Argentine Peso

Macro environment headwinds in few of the countries we operate in

Benign commodity cost environment to aid margin expansion

businesses

Expect competitive, consistent and ahead of the category growth rate across

WAY AHEAD

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FII, 29%

DII, 2%

Others, 6%

LIC

MAJOR INVESTORS

GIC
Vanguard
Blackrock ADIA

Others

Promoter,
63%

STOCKHOLDING PATTERN

Temasek

First State

As on March 31, 2015

Arisaig

Aberdeen

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Cinthol Ranked 11th

Godrej No. 1 Ranked 15th
Godrej Expert Powder Hair Colour Ranked 26th
Goodknight Ranked 1st
HIT Ranked 8th
Godrej Aer Ranked 11th
Jet Ranked 12th

PERSONAL CARE

HOUSEHOLD CARE

- Goodknight
- Cinthol
- Godrej No.1

3 of our brands ranked in 100 Most Trusted Brands 2014 by

Brand Equity

THREE OF OUR BRANDS FEATURED IN THE MOST TRUSTED

BRANDS 2014

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in India overall

#7

GCPL ranked
Among Best Employers In India - 2015

Among 25 best work places in Asia

in India FMCG

#1

GCPL ranked

WE HAVE BEEN CONSISTENTLY RECOGNISED AS A GREAT

PLACE TO WORK

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saving initiatives and better product mix

Drive margin improvement through cost

Expand into adjacencies

international business and cost

in core categories

technology strengths

harness distribution and product

Cross pollination initiatives to

saving initiatives

Drive margins through scale up of

International
Business

Drive penetration and consumption

Domestic
Business

OPPORTUNITIES GOING FORWARD

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for more details please visit http://www.godrejcp.com

TAPAN JOSHI
Email: tapan.joshi@godrejcp.com
Tel: +91 22 2519 7202

SAMEER SHAH
Email: sa.shah@godrejcp.com
Tel: +91 22 2519 4467

V SRINIVASAN
Email: v.srinivasan@godrejcp.com
Tel: +91 22 2519 4316

CONTACT US @

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THANK YOU FOR YOUR TIME AND CONSIDERATION