Vision : Godrej in Every Home and Work Place

Mission : Enriching Quality of Life Everyday Everywhere

Values : Integrity | Trust | To Serve | Respect | Environment
 Various Types of Steel – 2011-12
Sr. G&B Unit Type of Steel Specifications Size in mm Annual End Use
No. Thickness Qty. (M/t)
1. CR / GP Coils / Electrical Steel
a. Furniture, Mumbai C.R. Coils IS 513 Gr. D or JIS G 0.60 – 2.00 28320 Furniture
3141 SPCC SD
b. Godrej Overseas - Do - - Do - - Do - 20000 Furniture
c. SSG, Chennai - Do - - Do - - Do - 4000 Storage Solutions
d. Security Equipment Div., G.P. Coils / C.R. IS 277 Gr. D/EDD or JIS 0.50 TO 2.00 4000 Security Equipments.
Mumbai Coils G 3302 & JIS G 3141
SPCC SD
e. Furniture, Mumbai Pattern coils Pre-painted 0.60 450 Furniture
f. Appliance Div., Shirwal/Moholi G.P. Coils / IS 277 Gr. D/EDD or 0.35/0.45/0.5 12000 Refrigerator sides &
JIS G 3302, JIS G 3141 doors, Hermetic motors
Electrical Steel SPCC SD, IS 649 5400 for compressors
(captive & external)
SUB – TOTAL (A) 74170
2. H.R. / M.S. Plates
a. Security Equipments, Mumbai H.R. Coils Is 2062, Gr. A/B or IS 5 / 10 13500 Security Equipments
5986 Fe 410
b. Process Equipment, Mumbai B.Q. Plates ASTM 515/516 Gr.60/70 8 to 250 19000 Pressure Vessels
c. Storage Solutions, Chennai High Strength IS 800 Fe 460 1.60/1.80/ 15600 Storage Solutions
H.R. IN 17100 St 46 2.00 4200
d. Appliance div., Moholi HRPO – EDD/DD IS 2062 / 5986 2.80 5400 Compressor Cover &
shells
SUB – TOTAL 57700
3. Tor Steel Rounds
a. Construction CRS / TMT Fe 500 8 to 32 mm 7500 Construction
SUB – TOTAL 7500

TOTAL 139370
 Current Trends
 Extremely price sensitive market.
Consumers demanding more value for each Rupee
Image Image
spent
No compromise on quality and after sales service.
Consumer seeking :
Experience and bonding with the product.
Are conscious of environment and seeking
eco-friendly products – Products should be
certified for 3/4/5 star rating. Image Image
Constant Innovation for :
Better Aesthetics
More Functionality
Latest technologies
 
Dealers and Retailers are required to spruce up
show rooms and offer more comfort to prospective
buyers.
Display entire range of Products.
 
 DEMAND DRIVERS
Summer Temperature Rising

With Fastest growing middle class society in Asia CAGR in excess of 20% expected during next 5 years.

As per the National Council for Applied Economic Research, MIDDLE CLASS families have an annual income between
Rs.3.4 Lacs to Rs.17 Lacs at 2009-10 price levels.
6th Pay Commission also to enhance purchasing power.

Customers are offered zero interest charges. NIL processing fees and zero down payment to woo customers.

LG and Samsung strategy of multinationals, for aggressive market penetration.

Japanese companies are bridging price gaps. They propose to encash on strong brands like Daikin, Hitachi, National, in the
air conditioning sector.
Also investing in manufacturing and R&D Centres in India.

Replacement cycle of white goods and other consumer durable sredudced from 9/10 years to about 4/5 years. Middle class
segment buying more than one unit e.g. 2/3 Acs, 2 TVs, etc.

Penetration levels :
18% Refrigerators
 6% Washing Machines
 1% Microwave
 2% Air conditioners
Shows a huge market yet to be tapped

Effective branding and advertising has lead to increased consumer awareness with a growing preference for new models with
more features at the same price point.

INNOVATION – KEY TO SUCCESS

 RAW MATERIAL - STEEL
1. QUALITY PARAMETER
* Sheets = Table Top Flatness (Bow Height max. 2 mm)
* Surface free from any surface defects
* Right angle / diagonal accuracy.

2.DELIVERY CONDITIONS & EXPECTATIONS

* Strictly on time – In the right mix of various sizes, nominal penalty on a per M/t basis – Purpose to reduce inventory to 2
days from current level of 8 days.
* Panels to be pre-inspected and certified by vendor.
* Flexibility in quantities to take care of market fluctuations. Vendors to be flexible. Fluctuation of + 25% of ordered
quantities to be accepted.

3.FUTURE TRENDS
* Door Panels for premium models – PVC on GI – mostly imported from Korea, Taiwan.
* PPGI – for new manufacturing locations.
* Plastics for side panels / door – New technology using High impact Polystyrene + ABS
* Refrigerant Gas – R134 Cooling Gas, eco friendly.
 Macro trends – Economic Development

Favourable Economy Trends

Economist Intelligence Unit

Economist
Intelligence Unit

Pvt Consn & Infrastructure to boost

economy growth. India will spend 9% of its
GDP (US$1 Trillion on Infrastructure over
the next 5 years) … Technopak

Technopak

High Economy and Infrastructure growth

 Macro trends – Economic Development
Favorable demographic trends

India to become less

poorer
•Highly affluent
households (> 10 L)
to increase from 4 mn to 12.5 mn in
urban India and from 1.4 mn to 3.6 mn
in rural India.
•The middle class is the big story in urban
and rural India

•No of individuals across general education

levels to increase from current 659 mn
to 806.5mn by 2020
•Growth in education levels to drive
consumerism
 Retail Trend
Rapid Retail transformation
Journey of Organized Retail

Indian retail industry – Large but

highly unorganized
M&A
End to end Shakeout,
120 supply chain Consolidati
mngmnt, on, High
100 back end investment
80
Traditional Range, portfolio operations
60 format options technology
Organised processes
40
Entry, Growth, Per capita
20 Retail space
Expansion,
0 Top line focus

2000 2005 2008 2011

 Retail Trend

Consumer Durable Retail trends

Consumer Durable retail – Overall a small segment but
Big within organized
Total retail industry Breakdown of Organised Retail

Retail Sector by Category

Ready made garments
Food & Grocery
Food & Grocery
30%
Pharmaceuticals 9% 7% Footw are
7%
9% 3% 3% Consumer Durables
Consmumer 3% Furniture & Furnishings
54% 3% Food & Beverages
Durables 11% 12%
7%
Apparel 3% Jw ellery
Watches
7%
Others 2%
2% Mobiles
39% 1% Books, Music,Gifts
Entertainment
Pharmaceuticals
US $281 bn
Health & Beauty

Source: Marketing White book 2010 Source: Marketing White book 2010
 Retail Trend
Consumer Durable Retail trends
ACCOUNT
2009-10 2010-11
Next 384 500
Big Bazaar 112 116
E zone/Home Town 51 51
Croma 43 65
Reliance Digital 19 30
Reliance Mart 42 42
Aa dhar 48 48
ITC 23 23
S pence rs 20 18
Bharti Walmart 3 11
S tar Bazar
Aditya Birla
4
4
9
9
19% growth
Hypercity 5 9
Metro 5 6
Food Exp 4 5
Max Hyper 3 4
Carrefour 0 1
Hariyali 150 150
S hoprite 1 1
Yaas 7 7
V.mega 13 13
S inger 0 0
Regional retail
chain s tores 471 563
Total 1412 1681

Consolidation in the industry happening at a rapid pace with 19% growth

in organized retail consumer durable outlets
 Durable Industry Perspective
Growth seen in consumer durable ownership by households fuelled by access
to electricity as well as financing to purchase and operate electric appliances
 Applaince Industry
Industry Perspective

Indian Durable industry* Market: 2010-11

Refrigerators Washing Machines Air Conditioners MWO Television

Units: 87 Lakhs Units: 36 Lakhs Units: 35 Lakhs Units: 12.5 Lakhs Units: 135 Lakhs
Value: 9770Crores Value: 3400 Crores Value: 7650 Crores Value: 875Crores Value: 12875 Crores

Growth
Growth Growth Growth Growth Over 2009-10
Over 2009-10 Over 2009-10 Over 2009-10
Over 2009-10 Units: 6%
Units: 15% Units: 8% Units: 21% Units: 26% Value: 11%
Value: 14% Value: 6% Value: 27% Value: 28%

Major growth being witnessed in Air conditioner and MWO categories, where
product penetration is still low while moderate growth in Refrigerator category

* Godrej Categories
 The future trend
– Categories poised for further growth

Domestic Industry

2010-11 2014-15
Ref

Ref, 9769 Ref Ref, 16900 Ref

TV, 21361
TV, 12874 WM WM
AC AC
MWO MWO
WM, 3381 WM, 7600
MWO, 1300
MWO, 875 TV TV
AC, 7650 AC, 19300

2010-11 : 34549 Cr. 2014-15 : 66461 Cr.

CAGR : Refrigerators : 12%; Washing Machines : 18%

Air Conditioners : 26%; Microwaves : 12%; TV : 13%
2.22
 GAD-Performance 10-11&Business Outlook 2011-12
Godrej Product Mix movement
Refers Air Conditioners 1475 cr 2045 cr
3% 10%
22% 3%
38% 17%
3%
17%
11%
12%

66% 58%

Washers
43%
•Category value in Cr.
•Category mix in %

MWO CTV
45%
334%

New businesses to drive growth 2.22

Value in Rs. Cr.
 ESTIMATED STEEL CONSUMPTION
2010-11

M/t

10.0 Million Refrigerators : 1,80,000

4.0 Million Washing Machines : 48,000
4.2 Million Air Conditioners 42,000
------------
2,70,000
=======
 GODREJ – Laurels, Credos, Awards,
Recognition
Godrej Eon Refrigerators awarded :
The “Design Excellence Aware” by Business World and Material Institute of Design.
CNBC Awaaz Consumer Award for three consecutive years.
Readers’ digest felicitated Godrej with the “Most Trusted Brand gold Award’ for four consecutive years.
FMCG Federation of India honoured Godrej Eon with the Most Preferred Frost Free Refrigerator Brand at the 5 th Consumer
World Awards.
 In 2008, the Urjavaran Foundation felicitated the company with the Best Model Impact towards Energy Efficiency

Offering 100% Green Refrigerator since 2002, when research revealed the dangers of CFC/HFC/HCFC laded refrigerants.

Product development and relevant technology done through our in-house R&D manned by more than 100 engineers and
Designers

National Readership Survey data shows that every third household in India owns a Godrej Refrigerator.

Only Godrej manufactures refrigerators which are 100% CFC, HFC and HCFC free.
THANK YOU