International Operations

Quarterly Update: Q2 & HY 2008-09

SoapsHair

ColoursLiquid

DetergentsToiletries

Contents

• Performance Highlights - Consolidated

• Business Review - Domestic

• GCPL Financials & Ratios - Stand Alone

• International Operations.

Performance Highlights

Consolidated

PAT (Rs. Crore)

34.7 37.1

73.8 75.4

0

25

50

75

Q2 0809 Q2 0708 H1 0809 H1 0708

PBT (Rs. Crore)

42.8 43.7

91.5 87.9

0

25

50

75

Q2 0809 Q2 0708 H1 0809 H1 0708

PBDIT (Rs. Crore)

42.751.5

95.8103.6

0

25

50

75

100

Q2 0809 Q2 0708 H1 0809 H1 0708

Financial Highlights - Consolidated

Net Sales (Rs. Crore)

346.5274.0

708.1

560.3

75

175

275

375

475

575

675

775

Q2 0809 Q2 0708 H1 0809 H1 0708

EPS (Annualised Rs.)

5.4

6.6

5.9

6.7

4.5

5.5

6.5

7.5

Q2 0809 Q2 0708 H1 0809 H1 0708

EVA (Rs. Crore)

19.6

29.9

45.5

59.9

0

10

20

30

40

50

60

Q2 0809 Q2 0708 H1 0809 H1 0708

Financial Highlights - Consolidated

Ratios - Consolidated

Consolidated Q2 0809 Q2 0708 H1 0809 H1 0708

A&P / Sales 7% 8% 8% 8%

PBDIT / Sales 12% 19% 14% 18%

PBT / Sales 12% 16% 13% 16%

PAT / Sales 10% 14% 10% 13%

Net Profit / Sales 10% 14% 10% 13%

Business Review - Domestic

Q2 FY 2008-09

Q2 FY 2008-09 Scenario: Domestic• Industry Scenario

– FMCG sector growth continues to be satisfactory– Strong GDP growth & good economic fundamentals – Vegetable oil prices high but show declining trend– Rupee weakened versus the USD

• The Company has one business segment in which it operates viz. Personal & Household Care

• GCPL Performance

Industry Growth(AC Nielsen Off Take)

GCPL Standalone(Sales Growth)

Q2 ‘0809 Q2 ‘0809

Toilet Soaps 17% 26%

Hair Colours 17% (6%)

*Off take in value terms @ MRP

Sales Growth (Standalone)

Toilet Soaps (Rs. Crore)

183.4145.3

359.6308.1

050

100150200250300350400

Q2 0809 Q2 0708 H1 0809 H1 0708

Hair Colour (Rs. Crore)

41.9 44.5

104.196.8

0

25

50

75

100

Q2 0809 Q2 0708 H1 0809 H1 0708

Liquid Detergents (Rs. Crore)

4.4

2.8

6.0

3.9

012345678

Q2 0809 Q2 0708 H1 0809 H1 0708

Toileteries (Rs. Crore)

14.7 13.7

34.7

29.3

0

5

10

15

20

25

30

35

Q2 0809 Q2 0708 H1 0809 H1 0708

Q2 Highlights

Key initiatives during Q2 FY 0809• Soaps

– Market share for Q2 FY 0809 is 9.5 %.– Cinthol Deo Musk Soap Launched– Price Increase effected

• Hair Colours– Market share for Q2 FY 0809 is 33.7%.– Godrej Expert Hair Powder Hair Colour launched in 4 shades -

Burgundy, Gentle black, Natural Brown & Dark Brown

• Liquid Detergents– Market share for Q2 FY 0809 is 77.1%.– Ezee Bright & Soft Liquid Detergent launched with Colour Guard

Technology for non woolen clothes

New Launches

Burgundy, Gentle Black, Natural Brown & Dark Brown

Ezee Bright & Soft

Cinthol Deo Musk Soap

Soaps - Revenue & Market Share

162.8

1

117.9

106.7

124

145.3

1

134.0

8

124.4

2

183.2

9

183.3

7

10.210.0

9.49.29.2

9.7

9.1 9.1

9.5

45

65

85

105

125

145

165

185

Q2 FY07 Q3 FY07 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09

Reve

nue R

s. C

rore

5

6

7

8

9

10

11

Mar

ket

Shar

e (

%)

Revenues Market Share

Source: AC Nielsen data % for All India value MS

Market Share is % for Q2 08-09

Hair Colours - Revenue & Market Share

52.4

39.7

47.2

47.7

44.5

50.1

57.8

62.2

41.9

37.6

33.736.2

35.9

34.9

34.9 35.1 34.2

38.0

0

10

20

30

40

50

60

70

Q2 FY07 Q3 FY07 Q4 FY07 Q1 FY08 Q2 FY08 Q3 FY08 Q4 FY08 Q1 FY09 Q2 FY09

Rev

enue

(Rs.

Cro

re)

20

22

24

26

28

30

32

34

36

38

40

Mar

ket Sh

are

(%)

Revenues Mkt share

Market Share is % for Q2 08-09

Source: AC Nielsen data % for All India value MS

Liquid Detergents - Revenue & Market Share

3.14.42

2.83.9

27.9

28.7

31.2

1.561.11

4.4

5.36.68

80.2

85.481.078.5

77.175.6

82.080.781.879.8

70.668.1

80.1

0

5

10

15

20

25

30

35

Q2

FY06

Q3

FY06

Q4

FY06

Q1

FY07

Q2

FY07

Q3

FY07

Q4

FY07

Q1

FY08

Q2

FY08

Q3

FY08

Q4

FY08

Q1

FY09

Q2

FY09

Rev

enue

(Rs.

Cro

re)

0

10

20

30

40

50

60

70

80

90

100

Mar

ket Sh

are

(%)

Revenues Mkt share

Market Share is % for Q2 08-09

Source: AC Nielsen data % for All India value MS

Financials & Ratios

GCPL Standalone

PAT (Rs. Crore)

32.3 33.7

66.5 69.5

0

25

50

75

Q2 0809 Q2 0708 H1 0809 H1 0708

PBT (Rs. Crore)

37.6 38.7

77.0 79.0

0

25

50

75

100

Q2 0809 Q2 0708 H1 0809 H1 0708

PBDIT (Rs. Crore)

34.044.9

74.6

91.7

0

25

50

75

100

Q2 0809 Q2 0708 H1 0809 H1 0708

Financial Highlights - Standalone

Net Sales (Rs. Crore)

259.0210.3

536.7

446.1

75

175

275

375

475

575

Q2 0809 Q2 0708 H1 0809 H1 0708

Q1 FY 08-09 Sales Mix (Standalone)

Soaps71%

By-Prod's5%

Hair Colour16%

Toileteries6%

Liq. Dets2%

Dividend – Q2 FY 08-09

• Q2 Dividend announced

Dividend per Share Re. 0.75

Dividend 75 %

Total outlay Rs 22.65crs(including tax on distributed profits)

Dividend 150% till date for 2008-09

Dividend payout 68 % YTD PAT (Standalone)

Balance Sheet (Standalone)

Liabilities (Rs. Crore)Liabilities (Rs. Crore) 30-Sep-0830-Sep-08

Net Worth 547.6

Other Liabilities 71.3

Total 618.9

Assets (Rs. Crore)Assets (Rs. Crore) 30-Sep-0830-Sep-08

Net Fixed Assets 179.3

Investment in Subsidiaries 84.1

Investment – OtherCash & Bank Balance

339.321.9

Net Current Assets (5.7)

Total 618.9

*Includes Capital Work in Progress & Capital Advances

Funds Flow (Standalone)

Q2 08-09(Rs. Crore)

SOURCESSOURCES

Internal AccrualsInvestment redemption

9.620.0

Total 29.6

APPLICATIONSAPPLICATIONS

Repayment of Loan 9.1

Working capital changes 19.5

Cash & Bank 1.0

Total 29.6

Cost Structure (Standalone)

Amount in Rs. Crore

Q2 0809

% of Sales

Q2 0708

% of Sales

H1 0809

% of Sales

H1 0708

% of Sales

Materials Cost 155.6 60% 102.8 49% 313.2 58% 225.6 51%

Staff Cost 15.1 6% 10.9 5% 30.7 6% 26.4 6%

Depreciation 3.4 1% 4.0 2% 8.0 2% 7.9 2%

Advertisement 10.7 4% 12.3 6% 32.8 6% 27.6 6%

Other Expenses 47.1 18% 40.8 19% 92.8 17% 77.8 17%

Interest & Fin. Charges

(7.1) (3%) 2.0 1% (10.5) (2%) 4.7 1%

Provision for Taxation

5.3 2% 5.0 2% 10.4 2% 9.5 2%

PAT 32.3 12% 33.7 16% 66.5 12% 69.5 16%

Net Sales 259.0 100% 210.2 100% 536.6 100% 446.1 100%

Other Total Income

3.5 1.4 7.5 2.9

Ratios - Standalone

Q2 0809 Q2 0708 H1 0809 H1 0708

A&P / SalesPBDIT / Sales

4%13%

6%21%

6%14%

6%21%

PBT / Sales 15% 18% 14% 18%

PAT / Sales 12% 16% 12% 16%

Net Profit / Sales 12% 16% 12% 16%

NWC / Sales (days) 12 days 15 days 12 days 14 days

Fixed Asset TO Ratio 5.9 3.9 6.1 4.1

ROCE 20% 59% 22% 60%

RONW 24% 84% 24% 87%

International Operations

Subsidiaries

Kinky Group Proprietary Ltd.

Godrej Consumer Products Mauritius Ltd- Performance (Holding company of Kinky Group (Pty) Ltd)

** After accounting for finance cost of acquisition

Date of Acquisition: 01-Apr-2008

Rs. Crore Q2 0809 H1 0809

Total Income

12.7 23.6

PBIT 1.8 4.1

Interest 1.4 2.7

PBT 0.4 1.4

Tax 0.7 1.5

PAT (0.3) (0.1)

“Kinky” Operations :-

• Opened a new “Kinky” Owned store in King Williams town, which became the 17th Owned Store for the Company. This was in quick succession to the 16th Owned store that was opened in the previous quarter after GCPL’s acquisition of the “Kinky” business. Owned Store model for the “Kinky” business is the driver for the  image of the “Kinky” products, service to the consumers, pricing power and execution of high standard of merchandising which differentiates “Kinky” from the rest of the brands in this category

• The Company increased prices to match up with sharp increase in input costs which were  rising in Q 1 and Q 2 and the Rand depreciating vs. US $.

• Installed new Information Technology systems, including  Syspro and upgrading hardware as well as connectivity between factories and the H.O. and between H.O. and the Owned retail stores

• Tied-up strong suppliers for raw material from China to ensure sufficient stocks to meet the growth plans

Godrej Netherlands BV- Consolidated* Performance

• The “Cuticura” Hand Hygiene range was re-launched, featuring new products such as Hand Foamer,  Kids Foamer, Kids wipes and Crackling Mousse. • The hair color brand “Hint of Tint” was launched in Canada.• Bio Oil achieved a “Signature Brand Status” in Boots – one of the highest rated qualifications for a product finding excellent consumer franchise.

** After accounting for finance cost of acquisition

Date of Acquisition: 31-Oct-2005

Rs. Crore Q2 0809 Q2 0708 H1 0809 H1 0708

Total Income

59.2 53.1 124.4 93.1

PBIT 4.9 5.1 15.5 8.7

Interest 1.0 1.0 1.9 1.9

PBT 3.9 4.1 13.6 6.8

Tax 1.4 1.3 4.5 2.1

PAT 2.5 2.8 9.1 4.6

Rapidol Pty Ltd-Performance

Rs. Crore Q2 0809 Q2 0708 H1 0809 H1 0708

Sales 11.9 11.7 23.5 23.5

PBIT 1.7 1.1 3.6 2.8

Interest 0.3 0.1 (0.4) -

PBT 2.0 1.0 4.0 2.8

Tax 0.5 0.3 1.1 0.8

PAT 1.5 0.7 2.9 2.0

# After accounting for finance cost of acquisition

Date of Acquisition: 01-Sep-2006

• “Inecto” – Super Black, the largest selling hair color sub-brand in Rapidol portfolio launched its 30 Years Birthday celebrations promotions achieving a record growth in sales during the quarter.  • Launched two new colors under the “Inecto” Powder Hair Colors (PHC) range.  The new colors Natural Brown and Auburn have been extremely successful. • “Renew” Hair Colors marketed and distributed by Rapidol in South Africa for GCPL, has found excellent support.

Godrej Global Middle East (GGME)

• New Cinthol Deo Spray launched in the previous quarter is rolling out successfully in to new markets of GCC and the Middle East and getting new listing in retail chains

Rs. Crore

Q2 0809 H1 0809

Sales 2.9 5.8

PBIT 0.1 0.2

Interest - 0.1

PBT 0.1 0.1

Tax 0.0 -

PAT 0.1 0.1

* Represents the performance of the business w.e.f October 1, 2007

Date of Acquisition: 01-Oct-2007

Thank You