Significant Considerations in the Purchase of Electronic Home

Appliances









Submitted by:
Reema Jaggi
University Roll No. - 94972238218



Submitted in partial fulfilment of the MBA program 2009-2011
PUNJAB COLLEGE OF TECHNICAL EDUCATION, LUDHIANA








Acknowledgement

My training period had been a great learning experience and it wouldnt have been without
the support of various people, who helped me to accomplish my project successfully. I
express my sincere thanks to all those who had guided me in one or the other way.

I would like to thank Mr. Hemant Bhalla(Associate Manager-Marketing),Godrej &
Boyce Manufacturing Co. Ltd. for giving me an opportunity to prove my worthiness in the
Marketing Department of the company and providing me with an insight into the marketing
world. He always proved as an excellent project guide & without his guidance this training
would not have been successful. I have seen in him an exceptional leader and will try to
follow and implement some of the techniques.

I would also like to thank all members of the Marketing Department who at all times treated
me as a part of their department and not as outside trainee. I am also thankful to the various
heads of departments and their assistants for sharing their experiences and also for giving
their valuable suggestions.
I would like to thank my mentor Ms Chitwan Bhutani who was there to guide me through
out my project and helped in the completion of the final report.

Date: 9
th
August,2010
Place: Ludhiana Reema Jaggi












Declaration

I Reema J aggi of PCTE do hereby declare that this project relating to Dealers perspective
regarding appliances- Case Study on GODREJ , has been prepared by after completing my
dissertation in the same, as a part of my requirements of the MBA program of PCTE batch
2009-2011.

My guide to this project was Ms Chitwan Bhutani.



Reema Jaggi
(University Roll No.
MBA (Batch 2009-2011)
PUNJAB COLLEGE OF TECHNICAL EDUCATION























Certificate-1

This is to certify that report entitled Dealers Perspective regarding appliances- Case Study
on GODREJ submitted for the degree of MBA in subject of summer training report, is a
bonafide research project carried out by Reema J aggi, PCTE student under my supervision
and no part of this report has been submitted for any other degree.
The assistance and help received during the course of investigation have been fully
acknowledged.

Ms Chitwan Bhutani
Major Advisor


























UNIT CONTENTS Pg.No.
A Chapter-1 Corporate profile
History
Pirojsha Godrej
Incorporation
Corporate timeline
Board of Directors
Annual sales
Organisational chart
Corporate Mission
Corporate shared values
Corporate Care
Godrej Group Profile
Business Profile
Awards and Honours
Branch Locations and Godrej Group
Godrej & Boyce Mfg. Co. Ltd.
Products & services
Products of appliance division
Shareholders
Employees
Statutory auditors
1-29



































Corporate concerns
The Pirojsha Godrej foundation
The Soonabai Pirojsha Godrej foundation
The Godrej memorial trust
Naoroji Godrej center
Swot Analysis
Bankers
Human Resource
Planning

Chapter-2 Financial analysis
Ratio analysis
Trend analysis

















30-46









CONTENTS- UNIT B Pg.No.


48
49-53






54-61








62-80

81
82
83

84




(I) INTRODUCTION
(II) REVIEW OF LITERATURE
The Study
Need of Study
Research Objectives

(III) RESEARCH METHODOLOGY
Concept of marketing research
Research design
Limitations of the research
Sampling design
Limitations of Study
(IV)DATA ANALYSIS AND INTERPRETATION
CONCLUSION
SUGGESTIONS AND RECOMMENDATIONS
BIBLIOGRAPHY
ANNEXURE 1









Table No. List of tables Pg.No.
1.1
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
Trend Analysis
Experience of Dealers
Brands represented by dealers
Products represented by dealers
Factors considered while dealing with a brand
Factors influencing dealers to do more sales
Extra benefits given on bulk sales
Dealership with Godrej appliances
Godrej products dealt by dealers
Display of Godrej appliances
Products generating more sales
Reasons for low sales of least saleable item
Satisfaction with regard to companys offered services
Satisfaction with regard to promptness
Satisfaction with regard to promotional tools
Continuation of dealership with Godrej
Reasons for quitting dealership with Godrej
Dealers preference to deal with Godrej in future
45
63
64
65
66-67
68
69
70
71
72
73
74
75
76
77
78
79
80








Fig No. List of Figures Pg.No.
1.1
1.2
1.3
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
Trend of Turnover
Trend of Net profit
Trend of EPS
Experience of Dealers
Brands represented by dealers
Products represented by dealers
Factors considered while dealing with a brand
Factors influencing dealers to do more sales
Extra benefits given on bulk sales
Dealership with Godrej appliances
Godrej products dealt by dealers
Display of Godrej appliances
Products generating more sales
Reasons for low sales of least saleable item
Satisfaction with regard to companys offered services
Satisfaction with regard to promptness
Satisfaction with regard to promotional tools
Continuation of dealership with Godrej
Reasons for quitting dealership with Godrej
Dealers preference to deal with Godrej in future
45
46
47
63
64
65
66-67
68
69
70
71
72
73
74
75
76
77
78
79
80



















UNIT-A
Chapter-1
CORPORATE
PROFILE























HISTORY


Pirojsha Godrej

The Company celebrated its centenary in 1997. In 1897 a young man named Ardeshir Godrej
gave up law and turned to lock making. Ardeshir went on to make safes and security
equipment of the highest order, and then stunned the world by creating toilet soap from
vegetable oil.
His brother Pirojsha Godrej carried Ardeshir's dream forward, leading Godrej towards
becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling
industrial garden township (ISO 14001-certified) now called Pirojshanagar in the suburbs of
Mumbai. Godrej touches the lives of millions of Indians every day. To them, it is a symbol of
enduring ideals in a changing world.



Incorporation
Established in 1897, the Company was incorporated with limited Liability on March 3, 1932,
under the Indian Companies Act,1913.











Corporate Timeline
1897 - Godrej & Boyce Mfg. Co. Ltd established
1918 - Godrej Soaps Limited incorporated
1961- Godrej Started Manufacturing Forklift Trucks in India
1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps
1974 - Veg oils division in Wadala, Mumbai acquired
1990 - Godrej Properties Limited, another subsidiary, established
1991 - Foods business started
1991 - Godrej Agrovet Limited incorporated
1994 - Transelektra Domestic Products acquired
1995 - Transelektra forged a strategic alliance with Sara Lee USA
1999 - Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej
Infotech Ltd .
2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej
Soaps Limited. Godrej Soaps renamed Godrej Industries Limited
2002 - Godrej Tea Limited set up
2003 - Entered the BPO solutions and services space with Godrej Global Solutions
Limited
2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to
customers by providing professional pest management services
2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej
Beverages & Foods Limited
2007 - Godrej Beverages & Foods Limited formed a J V with The Hershey Company
of North America and the company was renamed Godrej Hershey Foods & Beverages
Limited
2008 - Godrej relaunched itself with new colourful logo and a fresh identity music










Board of Directors

Chairman & Managing Director: JAMSHYD N. GODREJ

Executive Directors:
Phiroze D. Lam : Executive Director and President of the co.
Kyamas A. Palia : Executive Director(Finance)
Vijay M. Crishna : Lawkim Motors
Anil G. Verma : Personal & Administration

Non-executive Directors
Adi B. Godrej : Chairman - Godrej Group
Nadir B. Godrej : MD Godrej Industries,
Chairman - Godrej Agrovet
Kavas N. Petigara : Chemical consultant & Businessman
Behram A. Hathikhanavala : Management Consultant
Fali P. Sarkari : Chartered accountant
Pradip P. Shah : Financial Advisor
Anita Ramachandran : HR consultant



















Sales (including excise duty)

Fiscal Year 2008-09: Rs. 43 billion (US$ 881 million)
Combined Sales of the Company and its major subsidiaries and
affiliates, for FY 2008-09: Rs. 107 billion (US$ 2.3 billion)

































Organisational Chart


















ASM ASM
ASM
ASM ASM ASM


George Menzes
(COO)
Kamal Nandi
(VP-Sales & Marketing)
Mohali
Branch
Ramandeep Singh Trehan
(GM-Sales)
19
Branches
Atin
RSM-Haryana
Bikram J it Singh
RSM-Punjab
Vijayesh Rana
RSM-Chandigarh
Ramesh Chembath
Head-Marketing
Hemant Bhalla
AM-Marketing




Corporate mission

We shall operate in existing & new businesses which capitalize on the Godrej brand
& our corporate image of reliability and integrity.
Our objective is to delight our customers, both in India and Abroad.
We shall strive for excellence by nurturing, developing & empowering our employees
& suppliers.
We shall encourage an open atmosphere conducive to learning & team work.
We shall achieve these objectives through continuous improvement in quality, cost &
customer service.








Corporate Shared Values

Commitment to quality
Dedication and commitment
Customer orientation
Honesty & integrity
Learning organization
Openness & transparency
Team work
Respect, care & concern for people
Trust









Corporate Care

As we complete our first century and enter the next one, our vision shines on with
brightness our founder intended- The concept of trusteeship of wealth.
Begun with a spontaneous donation of Rs.3 lac to the Tilak fund by Ardeshir Godrej,
this initiation of philanthropy was strengthened by Pirojsha Godrej, who made it a
corporate policy.
Along with housing, schooling, medical aid & paid leave to workers, Pirojsha was
also deeply concerned about environmental & social causes.
This vision continues to be the leading light in our lives.




























Godrej Group Profile

Started in 1897 as a locks manufacturing company, the Godrej Group is today one of the
most accomplished and diversified business houses in India. Godrej's success has been driven
by the company's commitment to delivering innovation and excellence. Through the
consistent application of this commitment and a century of ethical business conduct, Godrej
has earned an unparalleled reputation for trust and reliability.
In 1930, Godrej became the first company in the world to develop the technology to
manufacture soap with vegetable oils; that spirit of innovation has continued throughout the
organization's history. Today Godrej is delivering consumers exciting innovations across a
spectrum of businesses. The company's pursuit of excellence is equally well established and
enduring.
In the 1944 Mumbai docks blast, Godrej safes were the only security equipment whose
contents were unharmed; an equal level of product quality continues to be expected from
every product bearing the Godrej brand name. Godrej management understands that the
company's greatest asset is the trust and faith that consumers have reposed in it, and
recognizes that the company must continue to earn this trust.
This translates to the organization delivering outstanding quality and value in everything it
does.
Godrej's ethical and visionary practices have allowed the company to successfully expand
into a number of businesses. Today Godrej is a leading manufacturer of goods and provider
of services in a multitude of categories: home appliances, consumer durables, consumer
products, industrial products, and agri products to name a few. A recent estimate suggested
that 350 million people across India use Godrej products. The group has more recently
entered the real estate and information technology sectors, and management views these as
avenues for enormous growth.
The Godrej Group stands in a strong position today. With annual sales in excess of $1 billion,
a workforce of approximately 18,000, and a strong diversified portfolio, Godrej has proven
its ability to deliver strong financial performance.









Business profile

Godrej group of companies are todays one of the largest engineering and consumer products
company in the country having varied interests from engineering to personal care products
with a total sales turnover of about US$ 1.7 bn.

It is also one of the most respected corporate houses known for its philanthropy and initiation
of labour reforms besides being recognised for its values of fair, transparent and ethical
dealings.

The company has the following businesses which manufacture and market a wide range of
consumer durables and industrial products:


Chemicals
We are Indias leading manufacturers of oleo chemicals and over hundreds of different
industrial chemicals. With our global reach spreading wings across 40 countries, we were
conferred the prestigious exports award by Chemexcil for 3 consecutive years in 1998-99,
1999-00 and 2000-01.The products in our portfolio are used in a variety of applications:
cosmetics, tyres, detergents, pharmaceuticals, cigarettes, toothpaste and more.

Associate Companies
Godrej Properties
Godrej Properties was incepted in 1990 with an aim of providing ultra-modern townships to
discerning customers at affordable prices. It adheres to a simple philosophy of providing
exemplary service based on the optimal use of available resources.








Godrej Consumer Products
Godrej Consumer Products is a major player in the Indian FMCG market with a huge
portfolio of products in the form of personal, hair, and household & fabric care segments.
With 3 state-of-art manufacturing facilities at Malanpur (MP), Guwahati (Assam) and Baddi
(HP), this division employs 950 people across these industrial plants.

Godrej Household Products
Godrej Household Products Limited (GHPL) is a wholly owned subsidiary of Godrej
Consumer Products Limited. With strong brands like Good Knight, HIT, J et, Ambipur,
Brylcreem and Kiwi, GHPL is the market leader in the Indian household insecticides
category and has a dominant presence in the air care, shoe care and male hair care markets.

Godrej Hershey
Godrej Hershey is one of the most respected business conglomerates established in 2006 with
a prime focus on the food division. The range of products from the house of Godrej Hershey
covers a number of popular products in the segment of Confectionery, Non Carbonated
Beverages, Cooking Aids, Packet Tea and Edible Oil.

Godrej Agrovet
Godrej Agrovet, formerly a division of Godrej Soaps Ltd. was reformed in 1971 with a focus
on the agricultural sector. Over the years this division has developed a close relationship with
farmers with its innovative offerings in the form of animal feed, oil palm plantations,
agrochemicals and poultry.








Awards and Honours
Godrej Consumer Products Limited ranks9th in the Great Place to Work Survey for
2008 .
GCPL, the Highest Ranked Indian FMCG in Asia's Hot Growth Companies' List by
Business Week .
Godrej Consumer Products Ltd. has been ranked14th in The Best
Companies to Work For study. This study was jointly conducted by Business Today,
Mercer and Taylor Nelson Sofres (TNS)
Godrej Consumer Products Ranks6th in ET-Hewitt Best Employers of India survey .
GCPL ranked15th in Great Places to Work 2006 survey .
The Corporate Citizen of the Year Award given by Economic Times.
Flagship brands Good knight,Cinthol and Ezee selected Super brands by the Super
brands Council.
Godrej Sara Lee, the J V between the Godrej Group and Sara lee Corporation, USA is
acknowledged the World's largest mat manufacturers and South Asia's largest
manufactures of Coils.
Godrej Consumer Products Limited, adjudged as a Business Super brand by the
Super Brands Council.
The Return on Capital Employed and Return on Net Worth ratios of Godrej
Consumer Products - the highest in corporate India.
Godrej Consumer Products was awarded the "Best Managed Workforce" award given
by Hewitt Associates and CNBC TV18.
Godrej Consumer Products features in the top 25 list of Great Places to Work
(survey conducted by Grow Talent in association with Business World) for four years
in a row.
Lifetime Achievement Award for Godrej Industries from CHEMEXCIL the basic
chemical pharmaceuticals and cosmetics experts promotion council
2006 Lalji Mehrotra Foundation Award for Excellence, conferred by National Society
for Equal Opportunities for the Handicapped. Great Son of India Award given to
Sohrab Godrej by National Convention for Protection of India's Resources and
Environment.
2005BNHS Green Governance Award for the Category - Conservation & Restoration
of Habitat, awarded to Godrej & Boyce Mfg. Co. Ltd




2003Economic Times Corporate Excellence Award for Corporate Citizenship
1994 Nisarga Mitra Award from Rotary Club of Bombay, Vikhroli for
Environmental Conservation
1991 Indira Gandhi Paryavaran Puraskar awarded to Sohrabji Godrej.
1989 Institution of Economic Studies Lok Shree Award for Social Commitment
towards the societ

































New Delhi
Ghaziabad
J aipur
Lucknow
Faridabad
Chandigarh



Mumbai Kolkata
Ahmedabad Bhubneshwar
Bhopal Guwahati
J abalpur
Pune

Chennai
Bangalore
Coimbatore
Hyderabad
Kochi
Trivandrum
Vishakhapatnam










Branch
Locations




International operators
UK
Netherlands
South Africa
Kenya
Kingdom of Saudi Arabia
Bahrain
UAE
Oman
Sri Lanka
Bangladesh
Veitnam
Malaysia
Singapore























Godrej Group Structure



















Godrej and Boyce Mfg. Co. Ltd.






















Products and Services

APPLIANCES (ISO 9001/14001)
Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and DVD Players

INTERIO FURNITURE (ISO 9001/14001; OHSAS 18001)
Office Furniture - Desking, Seating, Open Plan Office Systems, Computer , furniture and
Storages; Home Furniture - Living, Dining and Bedroom furniture; Kitchen cabinets.
Laboratory furniture; Marine accommodation; Healthcare furniture; Turnkey interiors;
Carpet tiles; Mattresses

LOCKS (ISO 9001/14001; OHSAS 18001)
Padlocks, Furniture locks, Mechanical and electromechanical door locks,
Door Controls, Architectural and Glass Hardware, Customized solutions & Cartini range
of Scissors, Knives and Kitchen Accessories

SECURITY SOLUTIONS (ISO 9001/14001; OHSAS18001)
Strong Room Doors, Safe Deposit Lockers, Data/ATM Safes, Burglary and Fire Resisting
Safes; Record & Filing Cabinets, Cash Boxes, Coffers,
Electronic Safes, Hotel Safes; Currency Sorters & Cash Counting Machines; Fire Doors,
Entranza Home Doors; Marine Doors & Hatches; Premises Security Solutions;
Surveillance, Scanning and Screening Systems; Baggage Scanners, Door Frame Metal
Detectors, Access Control Systems; Fire and Burglar Alarm Systems, Video Door Phones

PRIMA VENDING AND AUDIO-VISUAL SOLUTIONS (ISO 9001)
Vending Machines and Operations (Services), Audio Visual Solutions





STORAGE SOLUTIONS (ISO 9001)
Shelving and Racking systems (Static and Mobile), Drive-in System,
Cantilever System, Mezzanine Floors, Gravity Flow System, Special




Warehousing Solutions, Tool Storage Cabinets, Work surfaces, Trolleys and Warehousing
Consultancy

MATERIAL HANDLING (ISO 9001/14001; OHSAS 18001)
Forklift Trucks (Diesel, Electric and LPG) and Attachments; Warehouse
Trucks; Tyre Handlers; Tele Handlers; Container Handling Trucks; Industrial Cleaning and
Personal Access Equipment; Spare Parts, Service and Maintenance Contracts; Trucks on
Hire, Pre-owned Trucks.

INDUSTRIAL PRODUCTS (ISO 9001/14001)
Sheet Metal Dies, Die Casting Dies, Thermo-compression Moulds, Special Purpose
Machines, J igs and Fixtures, High Precision Components/Equipment for Engineering and
allied industries, Sheet Metal
Working Machines Sales and Service

PROCESS EQUIPMENT (ISO 9001/14001; OHSAS 18001; ASME U,
U2,U3, S; NBBI R; AD Merkblatt HP0; Chinese SELO)
Heavy Walled Reactors, High Pressure Vessels, High Pressure Shell and
Tube Heat Exchangers, Reactor/Tower Internals and Trays

ELECTRICALS AND ELECTRONICS (ISO 9001/14001, OHSAS 18001)
Busbar Power Distribution Systems, Compressors and Compressed Air
Control Systems, Industrial Electronics and Automation, Energy
Conservation and Green Building Services, Turnkey Electrical and Power
Infrastructure Projects

LAWKIM ELECTRIC MOTORS (ISO 9001/14001/17025, CMRI, UL)
Motors (FHP, Custom-designed and Metric Motors for Hermetic, HVAC,
General Purpose Applications), Calibration and Testing (Electro-technical
and Thermal Calibration)
CONSTRUCTION AND REAL ESTATE
(ISO 9001/14001; OHSAS 18001)
Ready Mix Concrete, Construction Projects, Property Development, Real
Estate Leasing and Services updated




Products of the appliance division

o Refrigerators
Direct cool
Cold Gold Deluxe
Pantacool V2
Pantacool
Axis
No.1
GDC 110
Edge
Frost free
EON
Pantacool

o Air conditioners
Split AC
Mirror star series
Silver line series
Pearl series
Ivory series
Window AC
Navigator series
Maxi miser series














o Washing machines
Fully automatic
Semi automatic

o Microwave ovens
Steam
Convection
Grill/combination
Solo





























SHAREHOLDERS

Since its inception, the Company is controlled by the GODREJ family based in Mumbai,
India. Its shares are not listed on any Stock Exchange. About one-fourth of the Company's
share capital is held by Pirojsha Godrej Foundation, a public charitable trust.


EMPLOYEES
10,700 (including 2,000 in Sales and Service)




STATUTORY AUDITORS
KALYANIWALLA & MISTRY, Chartered Accountants























Corporate concerns
The concept of trusteeship of wealth. Begun by the founder Ardeshir Godrej through a
spontaneous gesture of a Rs. 3-lakh donation in 1926 to the Tilak Fund for the upliftment of
Harijans. Acknowledged by the Mahatma as the biggest contribution he had received for the
cause.

The initation of philanthropy by Ardeshir was strengthened by his brother Pirojsha, who
made it a corporate principle for the Godrej group. Anticipating labour legislation by
providing housing, schooling (epitomised today in the Godrej Udayachal Schools), medical
aid and paid leave to workers. Environment and social concerns were equally vital to his
vision. And to the vision of his sons, among whom, the yongest, Naval set up the Foundation
for Research in Community Health and the Foundation for Medical Research along with
Vasant Sheth of Great Easten Shipping Co. Ardeshir's vision is alive and throbbing. Through
organisations that have taken the trusteeship of wealth as a mission of their own.

The Pirojsha Godrej Foundation
The Pirojsha Godrej Foundation, established in 1972, owns one-third shares of the holding
company, Godrej & Boyce Mfg. Co. Ltd. The income from dividends is utilised for
promoting the objectives of the Trust, which includes providing medical relief to the poor and
critically ill, educational aid to students, and relief funds in case of natural disasters.
Apart from promoting culture and the time arts (through the Godrej Dance Academy), sea
cadets (Boating Section), libraries, school, blood banks, The Godrej Baug for low income
people, the Red Cross Disaster Center at Vikhroli and the Pirojsha Godrej Memorial Wing at
Breach Candy Hospital are born of this foundation.

Significant contribution have been made to, among others, the World Wide Fund for Nature-
India, the Bombay Environment Action Group, the Latur Earthquake Relief Fund, the Andhra
Cyclone Relief Fund, the Prime Minister Relief Fund and the Chief Minister Relief Fund.






The Soonabai Pirojsha Godrej Foundation
The Soonabai Pirojsha Godrej Foundation, founded in March, 1974, it provides fund for
education, and other worthy causes. The trust maintains large tracts of protected land for two
separate projects - the conservation of mangroves and building an integrated housing colony
for lower and middle income groups in association with the Housing Development Finance
Corporation.

The Godrej Memorial Trust
The Godrej Memorial Trust, established in 1994, the Trust is a voluntary, non-religious,
non-sectarian, non-political charitable trust which is involved in maintaining hospitals,
clinics, dispensaries and providing medical relief to the underprivileged. The Trust runs a
clinic in New Delhi which provides facilities for operations, examinations, immunization,
counseling and family welfare. The Trust has also initiated a project to establish a specialised
hospital near Delhi.

The Naoroji Godrej Center
The Naoroji Godrej Center for Plant Research, started in 1992, the Center is involved in
basic and applied research in horticulture, pisiculture, sericulture, floriculture and
preservation of endangered species. Beside this, it acquires land to conduct the above
activities on and ties up with institution/individuals to successfully execute community
projects. Its seven primary projects include the conservation of threatened plant species,
development of an ideal village and mass propagation of medical plants.










Swot analysis


Strength
Good corporate image
Experience in the line
Qualitative products

Weakness
Ineffective promotional tools
Weak branding
Inappropriate variants of products

Opportunities
Innovation in the product line

Threat
Competitors grab on the market
Competitors expansion in the market at a faster
pace




BANKERS

Central Bank of India
Union Bank of India
Citibank N.A.
ICICI Bank Ltd.
State Bank of Patiala
Axis Bank Ltd.
Export-Import Bank of India





















Human Resource


What drives Godrej Industries Limited employees is the positive outlook towards work in an
environment of change that encourages innovation and lateral thinking to harness new concepts for
increasing maximum efficiency. The Godrej Industries employee is determined, ready to learn and
committed to meeting and raising the organization's standards of quality, bringing the organisation to
the very forefront of the global FMCG and beverage industry.

Our employee is determined, loyal, committed and eager to learn and we provide this platform like
every other growing global entity. A complete teamwork is highly appreciated. Every Godrej
Industries employee works in harmony to reach higher goals and strive to take the organization
forward. Forming a team, whose sole purpose is to achieve its target under any circumstances, a team
that never compromises on quality and inner strength. The Godrej Industries Limited Human Resource
Department has initiated a metamorphosis within the organization - a phase of change to compete and
excel globally for future. HRD believes in the dynamics of change: if we always do what we had
always done, we will always get what we always got and we nurture a constant urge to achieve
something beyond the expected

To implement this change, Godrej Industries Limited is working to increase efficiency while reducing
unnecessary costs
and expenses. The HR has design a tailor-made HR roadmap, giving a new dimension to the HR
systems and processes, leading the organization towards an effective human engineering process.
HRD works towards enhancing the effectiveness and the efficiency of Godrej Industries Limited by
enriching individual maps of reality, by supporting personalized growth of the individuals, by




improving team-spirit and inter-personal communication of the organization's members.
It not only believes in harnessing internal pools of knowledge but also provides its employees a
platform for knowledge integration with internal as well as external sources. The Godrej Industries
Limited human resources department has become an eventful place with a focus towards attraction,
retention and development of talent, as it surges ahead to set higher performance thresholds. Our HR
motto states that - "We not only believe in blending Spirits into FMCG but also blending Aspirations
into Career.

Selection of any employee depends on the need in any sector. For this the particular department of
organization define the quality needed in employee and after this the HR department post the job on
different web sites, hire consultant or take placement from different colleges.
Promotion of the employee depends on the capability of employees learning means if the employee
can have ability or eagerness to learn the work of other department beside his work he will be
promoted. Also after the experience and quality of work any employee is promoted. Training and
Development is a part of any organization. Godrej Industries Limited believes in leveraging
technology to help it gain a competitive edge in the market place. Godrej has been one of the first
companies in the FMCG / Chemical industry. So they organize training program time to time
















Planning

HRP is understood as the process of forecasting an organizations future demand for, and supply of,
the right type of people in the right number. It is only after this that the HRM department can initiate
the recruitment and selection process. HRP is a sub-system in the total organization planning.
Organizational planning includes managerial activities that set the companys objectives for the future
and determines the appropriate means for achieving those objectives. .an integrated part of strategic
management HRP is variously called strategic manpower planning, or for employment planning

PLANNING IN GODREJ
The costs of Human Resource planning are kept minimal as each plant/ profit centre has its
own Personal Department which provides all the respective plants requirements. Each
personal department comprises of four members.
The short term planning is conducted by each plants personal department with each teams
respective heads.
The Long term planning is performed by superiors of each deptt. In accordance with
companys interests and objectives.
The internal detailed planning is planned by each team separately.
In this way, it is lesser time consuming, energy, economic and also effective. The decisions are
agreed upon by most of the team members so they are more focused, clear, satisfied that even they
have a say in the working and meeting the targets set.












Chapter-2
Financial
Ratios













Ratio analysis
(I) LIQUIDITY RATIOS
Liquidity ratios measure the ability of the company to meets its current obligations. It
establishes the relationship between cash and other current assets to current obligation provide a quick
measure of liquidity. It includes following ratios:-

(a) CURRENT RATIO
current assets
Current ratio =----------------------
current liabilities

Net current liability =Current Liability +Borrowing from bank

19191400
Mar09 =-------------------- =1.22:1
15787385

17792704
Mar08 =-------------------- =1.29:1
13833723

12844718
Mar07 =-------------------- =1.22:1
10495902

9736196
Mar06=-------------------- =1.29:1
7554033


Interpretation
The companys current ratio is within the rule of thumb, ie. 2:1, which means that the companys
liquidity position is quite satisfactory. The companys current assets are sufficient to pay off its current
liabilities.




(b) LIQUID ASSETS RATIO
Liquid Assets
Liquid ratio =-----------------------
Current Liabilities

10935122
Mar09 =-------------------- =0.69:1
15787385

9437695
Mar08 =-------------------- =0.68:1
13833723

6361123
Mar07 =-------------------- =0.61:1
10495902

4665899
Mar06 =-------------------- =0.62:1
7554033

Interpretation
As a convention, 1:1 liquid ratio is considered satisfactory. According to this convention, the company
has satisfactory liquidity position. It was close to rule of thumb. The overall liquidity position is
sufficient.













(c) ABSOLUTE LIQUID RATIO
Absolute Liquid Assets
Absolute liquid ratio =-----------------------------------
Current Liabilities

33234
Mar09 =-------------------- =0.002:1
15787385

40854
Mar08 =-------------------- =0.003:1
13833723
57116
Mar07 =-------------------- =0.005:1
10495902

58265
Mar06 =-------------------- =0.008:1
7554033

Interpretation
Absolute liquid ratio is calculated to know how many liquid assets are available with the firm to pay
off its liabilities, if the need to pay them arises immediately. The rule of thumb for this ratio is 0.5:1
but the company has it below the rule of thumb, thus signifying dissatisfactory liquidity position in
terms of absolute liquid assets.













(II) PROFITABILITY RATIOS
Profitability ratios are calculated to measure the operating efficiency of the company.
Besides management of the company creditors and owners are also interested in the profitability of the
company. Creditors want to get it and repayment of principle regularly; owners want to get a required
rate of return on their investment.

(A) General profitability ratios
(a) GROSS PROFIT RATIO
Gross profit
Gross profit ratio =--------------------- *100
Net sales
Gross profit =Net sales - cost of goods sold
Cost of goods sold=opening stock +purchases +direct expenses closing
stock
10464626
Mar09 =--------------------- *100 =25.93%
40351778

9995840
Mar08 =--------------------- *100 =28.80%
34711149

6968842
Mar07 =--------------------- *100 =26.18%
26614361

9041355
Mar06 =--------------------- *100 =44.73%
20212172

Interpretation
Since gross profit is decreasing from Mar06 to Mar09, it signals a bad profitability position of the
company. Since gross profit is calculated by deducting cost of goods sold from sales, it reflects that the
firm is inefficient in producing its products as cost of goods sold is increasing more than sales.




(b) OPERATING PROFIT RATIO
operating profit
operating profit ratio =--------------------- *100
Net sales
Operating profit =Net sales-( COGS +administration expenses +selling
& distribution expenses)

5826427
Mar09 =--------------------- *100 =14.44%
40351778

6033988
Mar08 =--------------------- *100 =17.38%
34711149

3707130
Mar07 =--------------------- *100 =13.93%
26614361

6423477
Mar06 =--------------------- *100 =31.78%
20212172

Interpretation
Operating profits are showing a declining trend from 2006 to 2009; it is due to ineffective cost control
in material consumption and cost reduction in manufacturing expenses. Overall as this ratio has
downward trend it indicates dissatisfactory profitability position of the company.











(c) OPERATING RATIO
Operating cost
operating ratio =--------------------- *100
Net sales
Operating cost=COGS +operating expenses

34525351
Mar09 =--------------------- *100 =85.56%
40351778

28677161
Mar08 =--------------------- *100 =82.62%
34711149

22907231
Mar07 =--------------------- *100 =86.07%
26614361


13788695
Mar06 =--------------------- *100 =68.22%
20212172

Interpretation
Operating ratio indicates the percentage of net sales that is consumed by operating cost. So, a very
high operating ratio is less favourable as it would leave a small margin(operating profit) to cover
interest , income tax, dividend and reserves. A percentage of 75-85% is considered favorable, and
Godrej is having a satisfactory operating ratio.










(d) NET PROFIT RATIO
Net profit after tax
net profit ratio =--------------------- *100
Net sales

2414381
Mar09 =--------------------- *100 =5.98%
40351778

1717303
Mar08 =--------------------- *100 =4.95%
34711149

1097632
Mar07 =--------------------- *100 =4.12%
26614361



392038
Mar06 =--------------------- *100 =1.94%
20212172

Interpretation
Net profit ratio has increased over the three years. It is due to cost savings on material consumption,
which is quite satisfactory for the company.











(B) OVERALL PROFITABILITY RATIOS
(a) RETURN ON SHAREHOLDERS INVESTMENT
Net profit after tax
Return on S/Hs investment =--------------------- *100
S/Hs funds
2414381
Mar09 =--------------------- *100 =26.54%
9097425
1717303
Mar08 = --------------------- *100 =25%
6868162
1097632
Mar07 =--------------------- *100 =19.54%
5616015
392038
Mar06 =--------------------- *100 =7.87%
4982733
Interpretation
ROI is of great importance as it depicts how much the company has accomplished its objective of
maximizing its earnings. As this ratio reveals how well the resources of a firm are being used, higher
the ratio, better are the results. The companys ROI is increasing over the years which indicate a
favorable profitability position.











(b) EARNING PER SHARE
NPAT Preference dividend
EPS = --------------------- *100
No.of equity shares


2414381
Mar09 =--------------------- *100 =Rs.3.64
662910

1717303
Mar08 =--------------------- *100 =Rs.2.59
662640
1097632
Mar07 =--------------------- *100 =Rs.1.66
662640
392038
Mar06 =--------------------- *100 =Rs.0.59
662640

Interpretation
As the return on the equity capital is increasing, so the EPS is increasing over the years and it shows
increase in the earning capacity of the company.













(c) FIXED ASSETS TURNOVER RATIO
COGS
Fixed assets turnover ratio =---------------------
Fixed assets


29887152
Mar09 =--------------------- =4.58
6524423
24715309
Mar08 =--------------------- =4.79
5160322
19645519
Mar07 =--------------------- =4.22
4655390
11170817
Mar06 =--------------------- =2.61
4281291

Interpretation
Fixed assets turnover is the relationship b/w COGS and fixed assets employed in the business. The
increase in this ratio over the years shows increase in the efficiency of the company in using its capital
resources.

(d)WORKING CAPITAL TURNOVER RATIO
COGS
Working capital turnover ratio =---------------------
Net working capital
29887152
Mar09 =--------------------- =31.38
952547
24715309
Mar08 =--------------------- =53.62
460911




19645519
Mar07 =--------------------- =53.32
368432

11170817
Mar06 =--------------------- =45.59
245006

Interpretation
Working capital turnover ratio depicts the velocity of the utilization of net working capital. Although it
is increasing between the years Mar06 and Mar08, but it again comes back to 31.38% in Mar09.




























(III) Activity ratio
Stock turnover ratio= COGS
----------------
Average stock

Mar09 = 29887152
------------------ =3.60
8305643

Mar 08 =24715309
------------------ =3.33
7419302

Mar07 =19645519
---------------- =3.40
5776946

Mar06 =11170817
--------------- =2.20
5070297


Inventory conversion period

Mar09 =365
-------- =101days
3.60

Mar08 =365
-------- =110 days
3.33






Mar07 =365
--------- =107 days
3.40

Mar06 =365
-------- =166 days
2.20

Interpretation
Every firm has to maintain a certain level of inventory of finished goods so as to be able to meet the
requirements of the business, and in case of Godrej, the inventory turnover ratio holds utmost
importance. Closely associated with it is the inventory conversion period, which is imperative to know
the average time taken for clearing the stocks.
In case of Godrej, inventory conversion period is very high in all the four years, which means that the
company is not able to clear its stock in time. However, after 2006, this ratio is showing a declining
trend.




















Trend analysis

A. Turnover
B. Net profit
C. Earning per share
Table 1.1




Fig 1.1(a)



Year Turnover Trend Net profit Trend EPS Trend
2006 20212172 100 392038 100 0.59 100
2007 26614361 131.67 1097632 279.98 1.66 281.36
2008 34711149 171.73 1717303 438.05 2.59 438.98
2009 40351778 199.64 2414381 615.85 3.64 616.95
2010(projected) +33.98% 233.62 +167.93 783.78 +167.79 784.74





Fig 1.1(b)
















Fig 1.1(c)