Godrej Industries & Associates: Adi & Nadir Godrej businesses (listed Opco

and Holdco for Godrej Agrovet)

Segment wise total Income- Godrej Industries Limited

Business Verticals of Godrej Industries Limited

Godrej Consumer Products

GCPL’s India branded business delivered strong growth of 16% for year ended Mar-23. As GCPL
centralizes and leverages synergies for R&D and marketing, it is also setting up Godrej International,
a dedicated team to scale up global exports and serve world class product mixes.

Godrej Chemicals

Chemicals business had an outstanding year ended Mar-23. The Total revenue of the business stood at
Rs. 4,173 Crore and recorded a growth of 36%, operating profit of the business stood at Rs. 706 Crore
and recorded growth of 207% over the previous year.

Godrej Properties

GPL continues to be ranked #1 for the third consecutive year amongst residential developers by
Global Real Estate Sustainability benchmark (GRESB). It achieved collections of Rs. 8,991 Crore for
FY 23, representing a growth of 40% over the previous year.

Godrej Agrovet

In FY23, GAVL’s consolidated revenues from operations increased to 9,374 Crore from Rs. 8,306
Crore, a growth of 13% year-on-year. The growth was primarily driven by market share gains in
Animal Feed and robust volume growth in branded products in food businesses i.e. Dairy and Poultry.

Godrej Capital

Godrej Capital Limited (GCL), is a Non-Banking Finance Company. GCL is the holding company of
Godrej Housing Finance Limited (GHFL), a Non-Banking Finance Company – Housing Finance
Company and Godrej Finance Limited (GFL), a Non-Banking Finance Company which have Rs.3500
crores and Rs.1400 crores of AUM as on March 31, 2023.

Balance Sheet Key pointers

Godrej Industries Limited- Highlights
As on Sep 2023, Cash available with GIL is around 1950 crores.

Shareholding pattern of Godrej Agrovet -

Entity/Particulars % Stake
Promoter and promoter Group 74.05
 Individuals 0.59
 Godrej Industries limited 64.88
 Other Promoter trust group including Rishad Naoroji, Pheroza Godrej and 8.58
others

Public Holding 25.95

 Mutual Funds 2.58
 LIC and other Insurance companies 2.91
 Foreign Institutions 9.44
 Others 11.02
Total 100

Godrej Agrovet Limited- Highlights

Incorporated in 1991, Godrej Agrovet Limited (GAVL) is a diversified agribusiness Group with
operations across 5 business verticals comprising of –
 Animal feed,
 Oil palm,
 Crop protection,
 Dairy, and
 Poultry and processed foods.
As of Sep 2023, reported figures, Cash lying the balance sheet is around Rs. 27 crores.

Godrej Agrovet financial snapshot

Financials:

₹ Crores
Particulars FY23 FY22
Total Income 9,481 8,386
EBITDA 564 723
Profit Before Tax 280 487
Profit After Tax 239 409

Segment wise revenues

₹ Crores
Particulars FY23 % FY22 %
Animal feed 4,951 53% 4,346 31%
Vegetable Oil 1,294 14% 8,386 60%
Crop Protection 1,189 13% 723 5%
Dairy 1,500 16% 487 4%
Poultry and processed food 1,003 11% 409 3%
Other business 53 1% 30 0%
Inter segment elimination -637 -7% -503 -4%

Crop protection business

(INR mn) Crop Protection business

Particulars FY 22 FY 23 H1 FY 24
Revenue 5,449 5,957 5,240
EBIT 1,015 741 1,620

Biostadt Financials snapshot (Last 5 years- Standalone) INR Mn

 Year-end FY 23 FY 22 FY 21 FY 20 FY 19
Net Sales 8,302.6 8,305.9 8,125.7 7,819.9 7,230.8
Total Income 8,491.8 8,534.2 8,349.5 7,935.7 7,333.3
Total Expenditure 7,683.2 7,650.6 7,083.0 7,253.7 6,895.1
EBITDA 808.6 883.6 1,266.5 682.0 438.2
EBIT 691.3 784.0 1,180.9 636.6 395.4
PBT 680.6 774.8 1,172.5 636.6 395.4
PAT 488.7 573.6 882.0 477.2 257.8
SOURCES OF FUNDS
Equity Paid up 33.0 33.0 33.0 33.0 33.0
Reserves and Surplus - - 3,061.6 2,317.9 2,116.8
Net Worth 3,964.2 3,470.8 3,094.6 2,350.9 2,149.8
Total Debt / Total Borrowing - 0.3 1.1 1.1 2.2
APPLICATION OF FUNDS
Net Block 797.3 740.1 570.3 480.8 496.1
Investments - - 1,455.8 842.8 640.1
Cash and Bank Balance 316.7 306.5 199.8 110.0 321.9
Net Current Assets - - 5,102.1 816.5 1,003.3
Total Current Liabilities 3,090.0 3,160.4 2,925.7 2,459.8 2,539.8
Total Assets 7,393.9 6,992.0 6,563.4 2,814.3 2,604.5
CASH FLOW
Cash Flow from Operations 41.8 367.4 748.2 472.2 569.5
Cash Flow from Investing -48.7 -77.5 -527.9 -422.3 -555.4
Cash Flow from Financing 4.2 -192.4 -135.3 -271.9 -114.4
KEY RATIOS
Current Ratio 1.77 1.64 1.74 1.33 1.40
ROCE (%) 17.44 22.59 38.15 27.07 15.35
EBITDA Margin (%) 9.52 10.35 15.17 8.59 5.98
PAT Margin (%) 5.75 6.72 10.56 6.01 3.52
Asset Turnover Ratio 1.12 1.19 1.24 2.78 2.78
Working Capital Turnover Ratio 1.93 2.17 2.23 22.06 111.69
Operating Profit Margin (%) 8.33 9.44 14.53 8.14 5.47

Godrej Agrovet : Sum of the parts approach valuation (MOFSL)

Godrej Agrovet : Sum of the parts approach valuation (Prabhudas Lilladher)

Valuations-

 Godrej Agrovet’s Crop protection business is valued at an EV/EBITDA multiple of

11-13X by analysts, taking a mean of 12 times, we have arrived at the value of crop
protection business at Rs. 2160 crores (FY25E Consol EBITDA*12= 180 cr*12).
 Using the same EV/EBITDA multiple for Biostadt, Value lies in the range of 900-
1100 crores (85*12).
 Conclusion- Thus, we can say that value of Biostadt from the perspective of –
o Godrej Industries- 4-5% of current market cap,
o Godrej Agrovet- 10-12% of market cap
o Crop Protection business- 50% for value of the crop protection business of
Godrej Agrovet.

Sources
1. Motilal Oswal report on Godrej Agrovet-
https://www.motilaloswal.com/site/rreports/638349442648512118.pdf (Refer exhibit
11)

2. Prabhudas Lilladher report on Godrej Agrovet

https://www.plindia.com/samplereports/goagro-11-5-23-pl.pdf

3. https://www.hindustantimes.com/business/godrej-family-begins-formal-division-of-
group-will-start-divestments-soon-report-101713501932496.html

4. ICICI Securities report on Godrej Agrovet (refer Exhibit 4)