I am extremely pleased to share with you the events and developments of
your Company during the course of 2011-12. Strong operating results
have been achieved across all our core businesses despite a challenging
macro-economic environment. The year gone by is representative of the
value that Godrej Industries has and would endeavor to create for all
the stakeholders. Though the economic slow-down and uncertainty
particularly in the developed countries can impact emerging nations, we
are confident of navigating this turbulent environment through
well-defined strategies adapted to match the dynamics of a changing
As a multi-business group with diverse business interests, growth at
the consolidated level is pursued through competitively growing our
core businesses, building an environment to enable transformation while
also nurturing and investing in emergent businesses of the future.
This approach is captured in our approach called CREATE which stands
Let me summarize the year at GIL for each dimension of our CREATE
C Consumer and Chemicals
Godrej Consumer Products, in FY2012, has not only maintained leadership
position in India in the three core categories Home Care, Hair Care
and Personal Wash, but has also recorded significant traction on the
international front. As we focus on integrating the acquisitions made
during the year, we have witnessed meaningful growth in the emerging
geographies in Asia, Africa and Latin America. While we recognize the
challenges posed by an uncertain global market environment, we are
confident that consistent efforts at innovating to cater to the
changing consumer needs and strengthening our brands, will translate
into improved performance in the future as in the past.
During the year, our Chemicals business enhanced the top-line and
stable margins with increasing contribution from exports and specialty
chemicals. Our strong distribution network and differentiated
manufacturing process make us the preferred supplier to key players
across industries we cater to, enabling us to capture value from
healthy demand in the domestic and international markets. Our
diversified end-user industries and concerted efforts at moving towards
specialty chemicals give us confidence in maintaining our performance
in the future as well.
RE Real Estate (GPL)
Despite a challenging environment for the real estate sector, Godrej
Properties recorded the highest number of Joint Development Agreements
in its history, thereby significantly augmenting its development
portfolio. In a significant development during the year, Godrej
Properties entered into a landmark deal with Godrej and Boyce for all
future development on the Vikhroli land parcel. This will prove to be a
highly value accretive deal, and is expected to generate significant
risk free cash flow for Godrej Properties. With a pan-India presence
and a business model that provides down-side protection while enabling
capture of upside potential, we firmly believe that in the coming years
we will be able to achieve bigger milestones to take GPL to the next
I would like to take this opportunity to discuss the change in
leadership at Godrej Properties. The Board has appointed Pirojsha
Godrej as the Managing Director and Chief Executive Officer of GPL with
effect from April 1, 2012. Pirojsha has played an integral part in the
growth of GPL since he first joined the Company in 2004 and the Board
is very confident that he will successfully lead the Company through
its next phase of growth. In addition, the Board has appointed Mr. V.
Srinivasan as an Executive Director at GPL with effect from April 1st,
2012. Mr. Srinivasan has played several leadership roles across various
Godrej companies and the Board believes that he will add tremendous
value to GPL.
I am also glad to share with you that in March 2012, GPL successfully
concluded the first IPP in India and raised ~ Rs. 4.71 billion in the
midst of a capital scarce market environment.
A Agri Business (GAVL)
We have come a long way since we started operations with the animal
feed segment and have progressed to a diversified agri-business Company
with interests in animal feed, oil palm plantations, agri-inputs and
poultry. The Company concluded the year on a strong note with robust
performance delivered across verticals. Further, the outlook for
oil-palm and agri-input segments remains extremely optimistic. During
the year, we successfully launched Godrej Seeds and Genetics Limited
(GSGL) to give shape to our plans of venturing into the seeds business.
Given encouraging business prospects and a solid execution framework,
we believe that our endeavor will contribute significantly to both the
top-line and bottom-line in the years to come.
T - Transformation
As a group we believe in inclusive growth that aims at enhancing the
competitiveness of our businesses while simultaneously advancing the
economic and social conditions of the communities in which we operate.
This focus is implemented Group wide through the shared value
initiative called ''Godrej Good and Green''. As part of Good & Green, the
Group aspires by 2020, to create a more employable Indian workforce, a
greener India and innovate for products that are greener or cater to
the bottom of the income pyramid. I am pleased to tell you that we have
as a Group made good progress on this vision in the last fiscal year.
Building on our human capital has always been a priority and during the
year we undertook various activities that assisted in enhancing
leadership capabilities through specially designed programs. To help us
objectively understand the progress made, in FY2012, we conducted a
survey across both domestic and international businesses in association
with Aon Hewitt, a leading HR consultancy firm. I am delighted to
share with you that GILAC India (including the Consumer Product, Real
Estate, Agrovet and Chemicals businesses of the group) employee
engagement level is high (68%) and falls within the Aon Hewitt Best
E - Emergent Businesses
Through the years, we have incubated businesses successfully. Godrej
Agrovet is one such example which today is contributing meaningfully to
the consolidated performance and has tremendous future potential.
Natures Basket, our gourmet food retailing business, has been ramping
up very well with a spread of 20 stores across 5 key metros in India. I
am pleased to share with you that a select portfolio is now available
for online sale as well.
Before I conclude, I would like to say that as we enter into the next
fiscal year, we stay committed to improving operational efficiencies,
building and strengthening alliances, deriving value from group
synergies and continuing to reward stakeholders with a shared
commitment towards profitability and sustainability.
Finally, I would like to express my appreciation to all our employees,
for their contributions towards the performance of Godrej Industries. I
would also like to extend my gratitude towards our business partners
and associates, vendors, and also the Central and the State governments
for their continued support. And to all of our shareholders, I would
like to express my sincere appreciation for their continued faith,
trust, encouragement and support.