Godrej Industries Ltd., a diversified Indian company with several business interests ranging from chemicals, processed foods and beverages, animal feeds, poultry, rural retailing, pest management services, property development, agri-products to branded tea, confectionery, household insecticides and BPO among others, today announced its financial results for the quarter ended 31st December 2007.

Announcing the results, Mr. Adi Godrej, Chairman, Godrej Industries Limited said, “The results for the quarter and nine months reflect the company’s ability to deliver and sustain growth. GIL successfully placed an equity issue of Rs. 600 crore with QIBs which would help accelerate the growth plans of the company and its subsidiaries.

Our Oleo Chemicals business continued to register an impressive performance in the third quarter of the current year. Our subsidiary, Godrej Properties continues its accelerated growth in the real estate market and is fast developing multiple projects in cities like Mumbai, Bangalore, Pune, Kolkata, Hyderabad and Mangalore. Godrej Properties has also entered into MOUs with group companies to develop their real estate holdings.

I am pleased to note that GIL has been ranked as the 9th fastest wealth creator and 65th biggest wealth creator for the period 2002-2007 in the 12th Annual Wealth creation study by Motilal Oswal Securities.

We will continue the focus on our businesses and strategic investments and I expect them to considerably add to shareholder value, going forward.”

Business overview and operational perspective

The company successfully placed about 279 lac equity shares with Qualified Institutional Buyers and raised Rs. 600 crore. The shares were priced at Rs. 215, a premium of over 9% on the floor price of Rs. 197 per share calculated in accordance with SEBI guidelines.

GIL was ranked 9th amongst the fastest wealth creators with a CAGR of 127% and 65th amongst the biggest wealth creators with wealth accretion of over Rs. 4600 crore. over the period 2002-2007 in the 12th Wealth Creation Study report published by Motilal Oswal Securities Limited.

The company sold its medical diagnostics business as a going concern to RFCL Limited, one of the leading life sciences and laboratory solutions company, effective close of business hours on December 31, 2007. We believe that this transfer would unlock significant potential and enable the business to grow much faster and is thus, in the best interests of all the stakeholders.

Chemicals Division

The Chemicals division continues to be the market leader in India in Oleo – chemicals and Surfactants. In Q3 FY 2007-08, Chemicals division contributed 82% of the total revenue of the company. The division has shown a revenue growth of 25% for Q3 2007-2008 at Rs. 179.2 crore as against Rs. 143.4 crore in the corresponding previous period and a PBIT growth of 1090% for Q3 2007-08. The division has registered a growth of 20% in revenue for 9M 2007-2008 at Rs. 498.5 crore as against Rs. 414.2 crore in the corresponding previous period and a PBIT growth of 953% for 9M 2007-08.The division exports to more than 60 countries in the world and its export sales grew by 42% in Q3 2007-08 and by 57% in 9M 2007-08.

Overview of Major Subsidiaries and Associate Companies

Godrej Agrovet Limited (GAVL)

GAVL is in the business of animal feeds, agri inputs, poultry, oil palm & rural retailing. The company recorded revenue growth of 24 % in Q3 2007-08 & 30% in 9M 2007-08.

GAVL launched 14 new rural retailing “Aadhaar” stores in this quarter, taking the total to 61 stores. “Aadhaar” stores retail agri products, food & grocery items, FMCG products, consumer durables, apparels, etc. Under the Aadhaar initiative, GAVL has launched a festive promo campaign – “Chak de – Jeet le” in October 2007 with Tata Motors, TVS Capital and Nokia as strategic partners. The Company got good footfalls during the campaign period. GAVL revamped its Lokhandwala & World Trade Centre “Nature’s Basket” outlets by positioning them as “Authentic World Food” stores. These stores have introduced new product categories like wine, cheese, cold-cuts, processed foods in addition to its existing portfolio of fresh fruits, vegetables & herbs and specialty foods taking the total count of new format “Authentic World Food “ stores to three.

Godrej Properties Limited (GPL)

GPL is India’s first ISO certified real estate developer. It has recorded a revenue growth of 85% in Q3 2007-08 and its PBT grew by 127% during the period. Revenue for 9M 2007-08 increased by 66% and PBT grew by 110%. GPL specializes in developing residential and commercial properties, malls and IT parks and is rapidly extending to major cities and regions across India.

During the quarter, GPL has entered into an agreement for development of residential/commercial units at Mangalore (6 acres) and at Bangalore (9 acres).

It has also signed an MOU with Lawkim Ltd. (a Godrej Group Company) for development of IT project on approx 3.5 acres of land at Thane. It has signed MOUs with the major Godrej Group Companies to develop their real estate holdings in different regions.

Godrej Global Solutions Limited (GGSL)

The ISO-27001 and ISO-9001 ITES company remains focused largely on the Healthcare, Finance & Accounts BPO domains and has a headcount capacity of more than 850 in its centres at Navi Mumbai and Chennai. Revenue for the quarter 2007-08 has increased by 8% and 9M 2007-08 has increased by 4%.
Godrej Hershey Foods & Beverages Limited (GHFBL) (formerly Godrej Beverages & Foods Limited)

GHFBL markets juices and fruit drinks under brands Xs and Jumpin; soyamilk based drinks under the Sofit brand; edible oil brands like Cooklite, packaged tea under the brand name Godrej Tea and Nutrine confectionery brands like Mahalacto, Aasay, Superstar, Aamras, Gulkand, etc. GHFBL forayed into Milk Food Drinks category by rolling out the first made in India Hershey innovation – “Hershey’s Nourishing Milkmix” in Tamil Nadu. Hershey Milkmix is fortified chocolate syrup in easy-to-squeeze bottles and makes great tasting hot chocolate milk. GHFBL has introduced a new mix for Nutrine éclairs and launched special packs for candy and beverages segment during the festive season. The company has ramped up the sales of new candy “Super Mahalacto” through high decibel media campaign and distribution drives.
Godrej Consumer Products Limited (GCPL)

GCPL continues to be the second largest toilet soap manufacturer in India. GCPL has reported a revenue growth of 15% in Q3 2007-08, PBIDT growth of 9% and PAT growth of 9% in Q3 2007-08 on consolidated basis. GCPL has also declared a third interim dividend of 100%. GCPL has reported a revenue growth of 18% in 9M Q3 2007-08, PBT growth of 14% and PAT growth of 15% in 9M Q3 2007-08 on consolidated basis. During the quarter, GCPL launched Godrej Expert powder – hair dye, Godrej Renew powder hair colour, Godrej No. 1 Almond shampoo. Its subsidiary Godrej SCA Hygiene Ltd. launched baby diapers under the brand name Libero.
Godrej Sara Lee Limited (GSLL)

GSLL has brands Goodknight, Jet, Hit under household insecticides, Ambi Pur range under air care segment, Brylcreem under hair care segment, Kiwi under shoe care segment and Kiwi Kleen under surface care segment. GSLL maintains its position as the market leader in the Household Insecticides category. GSLL has reported a revenue growth of 20% in Q3 2007-08 and PAT growth of 30% in Q3 2007-08. Revenue for 9M 2007-08 increased by 23% and PAT grew by 45%. Cost control and Efficiency improvement initiatives have yielded good results in terms of profitability during the quarter. Company has distributed an interim dividend of 187.5% during the quarter.

Sourced From: Perfect Relations Limited

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