ASSIGNMENT ON GODREJ GROUP

SUBMITTED TO Ms. Sukhjinder Baring

SUBMITTED BY: Amanpreet Kaur MBA 1C

INTRODUCTION TO CORPORATE Godrej Group consists of two corporate entities: 1. Godrej Consumer Products 2. Godrej Industries. Godrej Industries Ltd. (GIL) is India's leading manufacturer of oleo-chemicals and makes more than a hundred chemicals for use in over two dozen industries. It also has a major presence in food products such as refined oil and tetra pack fruit beverages. Besides, it operates businesses in medical diagnostics and real estate. Besides its three businesses, Godrej Industries also runs four divisions Corporate Finance, Corporate HR, Corporate Audit and Assurance and Research and Development which operate on behalf of the entire Godrej Group. GIL has built a strong manufacturing base capable of delivering international quality products at competitive prices. It operates two plants, one at Valia in the Indian state of Gujarat and a second at Vikhroli in suburban Mumbai. The company's products are exported to 40 countries in North and South America, Asia, Europe, Australia and Africa, and it leads the Indian market in the production of fatty acids, fatty alcohols and AOS. Godrej Consumer Products (GCPL) is a leader among India's Fast Moving Consumer Goods (FMCG) companies, with leading Household and Personal Care Products like Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fair glow, Ezee, Protekt and Snuggy. It is one of the largest marketers of toilet soaps in the country and is also leaders in hair colours and household insecticides. Each company has several SBUs, divisions and factories. They are presently exporting their products to 30 countries. HISTORY OF GODREJ GROUP Started in 1897 as a lock 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. The Godrej Group The Godrej Group has interests in a wide range of businesses. Apart from GCPL, the major companies in the Group include:-

Godrej & Boyce Manufacturing Co. Ltd. a leading manufacturer of office and home Equipment including appliances, furniture, locks, security equipment, storage solutions and Industrial equipment. Godrej Industries Ltd. a leading manufacturer of oleo chemicals that are used in more than two dozen industries. The Company also has a presence in the foods business. Godrej Agro vet Ltd. the market leader in animal feeds and innovative agri products in India. The Company also has a presence in the branded poultry, rural retailing and oil palm sectors. Godrej International Ltd. engaged in international trading. Godrej Sara Lee Ltd. a joint venture with Sara Lee Corporation, USA and a leading Manufacturer of household insecticides. Geometric Ltd. a specialist in Product Lifecycle management software solutions for the Mechanical design, manufacture and industrial markets. Godrej Properties Ltd. - a leading developer of residential and commercial premises. Godrej Hershey Ltd. markets juices, fruit drinks, soya milk based drinks, edible oil and Packaged tea. In FY 2006, GBFL has acquired 100 percent stake in Nutrine Confectionery Company Pvt. Ltd. (Nutrine). In April 2007, the companies entered into a joint venture with the Hershey Company, North Americas leading chocolate and confectionery manufacturer, to Manufacture and distribute confectionery, snacks and beverages across India. Being part of the Godrej Group allows Godrej Consumer Products to draw upon the rich heritage and experience of the Group. In line with GCPLs vision and long-term business objectives, all corporate Decisions are independently taken by the Companys highly respected Board in conjunction with competent management teams, keeping in view the best interest of all its stakeholders.

Godrej and Boyce From locks to appliances. From furniture to conferencing equipment. From security solutions to material handling. There isn't a category through which Godrej & Boyce don't enrich life. They are a part of your life in many ways. Godrej Consumer Products As far as personal, hair, household and fabric care segments are concerned, Godrej is far the market leaders. And this has been possible only due to their constant endeavor of trying to provide customers with innovative, value for money solutions for their daily needs. Godrej Industries Godrej Industries Ltd. is India's leading manufacturer of oleo chemicals and makes more than a hundred chemicals used in over two dozen industries. It has a major presence in food products such as refined oil and tetra pack fruit beverages. Geometric Software Solutions Geometric Software Solutions is a CMMI Level 5 company and the leading PLM services provider with over 19 years of experience in CAD/CAM/CAE, PDM and MPM. Godrej InfoTech Godrej InfoTech is a CMM Level-4 company in the business of developing customized software solutions and implementing ERP, CRM, and SCM software. Navision, Axapta, Baan and encompass - an ERP from Godrej InfoTech, are uniquely positioned to address Industry needs. Godrej Sara lee Godrej Sara Lee is a joint venture company between the Godrej Group, India and Sara Lee Corporation, USA. They are the world's largest manufacturers of home insecticides.

The company is committed to the research and manufacture of quality household insecticides, and holds a substantial market share. Godrej Efacec Godrej Efacec provides the latest warehousing or automated storage or retrieval system solutions to the customers they give the best of - Technology from Efacec and quality from Godrej. Godrej Products

BRANCHES (SALES & SERVICE) AND BRANDED RETAIL CHAIN (GODREJ LIFESPACE) MUMBAI, Ahmadabad, Bhopal, Dombivli, Indore, Jabalpur, Pune, Raipur, Thane NEW DELHI, Chandigarh, Faridabad, Ghaziabad, Gurgoan, Jaipur, Jalandhar, Jammu, Kanpur, Luck now, Noida CHENNAI, Bangalore, Coimbatore, Hyderabad, Kochi, Secunderabad, Trivandrum, Visakhapatnam KOLKATA, Bhubaneswar, Guwahati, Ranchi, Patna The Company has a network of 48 Company-owned Godrej Lifespace Retail Stores, more than 2,200 Wholesale Dealers, and more than 18,000 Retail Outlets. The Company has Representative Offices in Sharjah (UAE), Nairobi (Kenya), Colombo (SriLanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC). CORPORATE INFORMATION BOARD OF DIRECTORS The Board of Directors of the Company comprises thirteen Directors, which includes one Managing Director : Mr. N. B. Godrej Two Whole-time Executive Directors .: Ms. T.A. Dubash and Mr. M. Eipe.

The remaining ten are Non-Executive Directors, with seven of them being Independent Directors. On NON-EXECUTIVE DIRECTORS Mr. A.B. Godrej Mr. S.A. Ahmadullah Mr. J. S. Bilimoria Mr. V.M. Crishna Mr. K.K. Dastur Mr. N.D. Forbes Mr. V.N. Gogate Mr. A.B. Choudhury Mr. K.N. Petigara Mr. F.P. Sarkari VISION Godrej is dedicated to deliver superior stakeholder value by providing solutions to existing and emerging consumer needs in the household & personal care Business. We will achieve this through enduring trust & relentless innovation Delivered with passion & entrepreneurial spirit. In conjunction with Companys vision for brighter living for all its stakeholders, it has developed a long-term vision for playing an active part in creating a more inclusive and greener India. This vision has been named Godrej Good & Green. MISSION Godrejs Mission is to operate in existing and new businesses which capitalize on the Godrej brand and our corporate image of reliability and integrity .Our objective is to delight our customer both in India and abroad.

We shall achieve this objective through continuous improvement in quality; cost and Customer service .We shall strive for excellence by nurturing, developing and empowering our employees and suppliers. We shall encourage an open atmosphere conducive to learning and team work. OBJECTIVES OF GODREJ GROUP Over the last year, through an even more strategic approach to corporate social responsibility, the Godrej Group has re-looked at how it can drive more meaningful impact and further its commitment through shared value initiatives that create both social and business benefits. The Group aspires by 2020:1. To create a more employable Indian workforce 2. A greener India 3. Innovate for good and green products. Specifically, goals for 2020 as part of Godrej Good & Green vision are: Training 1 million rural and urban youth in skilled employment Achieving zero waste, carbon neutrality, positive water balance and a 30% renewable energy source Having a third of portfolio revenues comprising of good and/or green products and services defined as products that are environmentally superior or address a critical social issue (e.g., health, sanitation, disease prevention) for consumers at the bottom of the income pyramid The Good and Green vision and continued execution towards that vision will be a strong focus for the Company going forward. Objectives of Godrej Consumer Products Limited

1. Leverage and enhance the Godrej brand name and that of our brands. One of our key strengths is being part of the Godrej group of companies and the strong brand equity generated by the Godrej brand name. We believe that the Godrej brand commands a recall amongst the consumers in India due to its image and goodwill established over the years. We intend to leverage the brand equity that we enjoy as a result of our relationship with the Godrej group of companies. Also, we plan to leverage our existing brands, which have good recall with customers to introduce a wider range of products. For example, we have leveraged our Cinthol soaps brand to manufacture and sell Cinthol deodorants and Cinthol talcum powder. 2. Focus on enhancing our sales and distribution network within the domestic market The Company has been focusing on consolidating its network of distributors in bigger towns. We have a distributor in almost every major town in India. We believe that this helps us to increase the availability of our products which in turn creates more awareness for the products and improve the acceptance of new products. The Company has created a network of super stockists and sub-stockists to tap the opportunity in smaller towns and villages. Certain products like Godrej Powder Hair Dye sachet, 50 gram variants of soaps fulfill the needs of consumers in such territories very well and in turn strengthen the distribution network in such areas. We intend to increase our penetration in the Personal and Household Care segment. We plan to achieve this through growth of our customer base and enlargement of our product portfolio. We already sell certain products under different brand names which enables us to target different socio-economic consumer segments. We also aim to provide an improving level of service to our network of dealers and distributors, for example by providing more frequent deliveries in order to reduce the dealers' inventory levels and therefore their costs and incentivise them to promote our products. 3. To grow and expand our market share through organic growth Our toilet soaps category has been outperforming the industry consistently and it grew by 21.00% in FY 09-10 (industry growth at 7.70%) during the same period the market share

of toilet soaps increased to 9.10% in FY 06-07 from 8.50% in the previous year. Currently, the market share of toilet soaps is at 10.20% (2010-2011). The hair color and toiletries categories grew by 12% and 20% respectively in FY 10-11 as compared to the previous year. Towards this end we intend to focus on: a. Value for money offerings; and b. Unique variants of soaps like Godrej No 1 in papaya and lotus variant. 4. To accelerate growth and expand our international presence through strategic acquisitions and partnerships While continuing to maintain growth momentum in the current territories, we intend to explore expansion into new markets as well. We plan to continue to acquire companies/businesses in the personal and household care segment in India and internationally. We have gained experience through our previous acquisitions and joint ventures with established operators in foreign markets. We will evaluate any business opportunities that arise in Indian and international markets and aim to harness our experience of acquiring and integrating new markets with our current operations. We intend to use a part of the proceeds towards entering into certain strategic acquisitions. 5. Continue to upgrade and modernize our plants and facilities to manufacture and supply products at a low cost. We currently operate five manufacturing facilities in India at Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha (Himachal Pradesh) and Sikkim. Further, our manufacturing facilities located abroad at South Africa produce a range of personal care products and hair color products. We will continue to maintain efficient manufacturing facilities for a consistent the quality of our products and to reduce our operational costs. We focus on management of our logistics, supply chain and distribution functions, which enables us to service our customers better.

Objectives Godrej Properties Limited The following are the key objectives of business: 1. Enhance and leverage the Godrej brand and the group resources We believe that our customers and consumers perceive the Godrej brand to be that of a quality provider of products and services. We believe that the strength of the Godrej brand and its association with quality and reliability help us in many aspects of our business, including land sourcing, expanding into new cities, entering into business associations, and providing relationships with our service providers, investors, lenders and customers. In addition, our association with the Godrej group helps us leverage group resources and initiatives across functions, such as human resources and marketing. For example, we are actively involved in a group-wide branding initiative currently being conducted by Interbrand, a London-based brand consultant, in which our Company has been identified, along with personal grooming, furniture and aerospace divisions, as one of the hero businesses of the group. We intend to leverage the brand equity that we enjoy as a result of our relationship with the Godrej group of companies to expand our business. 2. Expansion across India We currently have a presence in 11 cities across India. We intend to expand our operations in these cities, as well as into other cities in India, which we believe have the potential for growth. The economic growth in these cities will result in higher disposable incomes in the middle and higher income groups, which, in turn, will result in increased demand for residential housing, as well as high quality retail and commercial space. We recognize that continuing to build on our land reserves in our existing markets is critical to our growth strategy. Additionally, we have either acquired or are in the process of acquiring development rights in various cities such as Mangalore, Chennai, Ahmedabad, Chandigarh, Kochi and Greater Noida, for residential, commercial and integrated township projects. We also,

from time to time explore new development opportunities. For example, we have submitted expressions of interest, as a part of a consortium, for the redevelopment of certain land in the Mumbai Metropolitan region. We cannot assure you that we will procure this bid on terms acceptable to us or at all. 3. Selective outsourcing We intend to increase the scale of our operations while ensuring quality and efficiency in our operations. Selective outsourcing enables us to undertake more developments and source best-inclass service providers, while optimally utilizing our resources. We intend to continue to outsource activities such as design, architecture and construction. We also consider turnkey contracts for project execution and partnering with international property consultants to market our IT parks. We intend to enhance and leverage our existing relationships with leading real estate service providers. 4. Focus on our execution We have expanded the scope and scale of our operations. We recognize the importance of delivering quality projects on a timely basis and within the estimated budget. We have implemented several initiatives and processes to enhance our execution capabilities including by engaging Goldratt Consulting in implementing their Theory of Constraints along with CCPM. See Our Strengths Execution methodology above for details on CCPM. We have also entered into a memorandum of understanding with Larsen & Toubro Limited for its appointment as a contractor for the development of some of our future projects and we will continue to work with other leading third party service providers for activities related to design, project management, cost and quality control and contracting. Godrej Industries runs four divisions

1. Corporate Finance 2. Corporate HR 3. Corporate Audit and Assurance 4. Research and Development ACCOUNTING POLICY 1 Accounting Convention The financial statements are prepared under the historical cost Convention, on the accrual basis of accounting, in accordance with the generally accepted accounting principles in India, the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956. 2 Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities as of the date of the financial statements and reported amounts of income and expenses during the period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Actual results could differ from the estimates. 3 Fixed Assets Fixed Assets are stated at cost or as revalued as the case may be, less accumulated depreciation. Cost includes expenses related to acquisition and any directly attributable cost of bringing the assets to its intended working condition. Fixed Assets acquired under finance lease are capitalized at the lower of their face value and present value of the minimum lease payments. 4 Intangible Assets

Intangible assets are stated at cost of acquisition less accumulated amortization. The cost of acquisition of trade marks is amortized equally over a period of ten years. Computer software is amortized over a period of six years on the straight line method. 5. Impairment of Assets The Company reviews the carrying amounts of tangible and intangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. Impairment loss, if any, is recognized in the period in which impairment takes place. 6 Borrowing Costs Borrowing costs that are directly attributable to the acquisition / construction of the qualifying asset are capitalized as a part of the cost of such asset, up to the date of acquisition / completion of construction. 7 Investments Investments are classified into long-term and current investments. Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognize a decline, other than of a temporary nature. The fair value of a long term investment is ascertained with reference to its market value, the investors assets and results and the expected cash flows from the investment. Current investments are stated at lower of cost and fair value. 8 Inventories Inventories are valued at lower of cost and net realisable value. Cost is computed on weighted average basis and is net of cenvat. Finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Provision is made for the cost of obsolescence and other anticipated losses, wherever considered necessary.

9 Provisions and Contingent Liabilities Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated. Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company. 10 Foreign Exchange Transactions (i) Transactions in foreign currency are recorded at exchange rates prevailing on the day of the transaction. Monetary assets and liabilities denominated in foreign currency, remaining unsettled at the period end are translated at closing rates. The difference in translation of monetary assets and liabilities and realized gains and losses on foreign currency transactions are recognised in the Profit and Loss Account. (ii) Forward exchange contracts other than those entered into to hedge foreign currency risk of firm commitments or highly probable forecast transactions are translated at period end exchange rates. Premium or discount on such forward exchange contracts is amortized as income or expense over the life of the contract. (iii) Realized gain or losses on cancellation of forward exchange contracts are recognized in the Profit and Loss Account of the period in which they are cancelled. (iv) Exchange differences in respect of other unexpired foreign currency derivative contracts, which have been entered into to hedge foreign currency risks are marked to market and losses, if any, are recognized in the Profit and Loss Account. 11 Revenue Recognition Sales are recognized when goods are supplied and are recorded net of returns, trade discounts, rebates, sales taxes and excise duties. Income from processing operations is recognised on completion of production / dispatch of the goods, as per the terms of contract.

Export incentives receivable under the Duty Entitlement Pass Book Scheme and Duty Drawback Scheme are accounted on accrual basis. Dividend income is recognised when the right to receive the same is established. Interest income is recognised on a time proportion basis. Income on assets given on operating lease is recognised on a straight line basis over the lease term. 12 Research and Development Expenditure Revenue expenditure on Research & Development is charged to the Profit and Loss Account of the year in which it is incurred. Capital expenditure incurred during the year on Research & Development is included under additions to fixed assets. 13 Depreciation Leasehold land and Leasehold improvements are amortized equally over the lease period. Depreciation is provided on the straight line method at the rates specified in Schedule XIV to the Companies Act, 1956, except for computer hardware which is depreciated over its estimated useful life of 4 years. Depreciation on assets acquired during the year is provided for the full accounting year and no depreciation is charged on the assets sold/discarded during the year, except in case of major additions and deductions exceeding rupees one crore in which case, proportionate depreciation is provided. Depreciation on the revalued component is provided on the straight line method based on the balance useful life of the assets as certified by the valuers. Such depreciation is withdrawn from Revaluation Reserve and credited to Profit and Loss Account. 14 Employee Benefits Liability is provided for the retirement benefits of provident fund, gratuity, leave encashment and pension benefit in respect of all eligible employees of the Company. (i) Defined Contribution Plan

Employee benefits in the form of Provident Fund and Family Pension which are paid to EPFO are considered as defined contribution plans and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. (ii) Defined Benefit Plan Retirement benefits in the form of Provident Fund which are paid to PF Trust, Gratuity and Pension plan for eligible employees are considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. (iii) Other Long-Term Benefits Long-term Compensated Absences and Long Service Awards are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Actuarial gain/losses comprising of experience adjustments and the effects of changes in actuarial assumptions are immediately recognized in the Profit and Loss Account. 15 Incentive Plans The Company has a scheme of Performance Linked Variable Remuneration (PLVR) which rewards its employees based on Economic Value Addition (EVA). The PLVR amount is related to actual improvement made in EVA over the previous year when compared with expected improvements. 16 Hedging The company uses forward exchange contracts to hedge its foreign exchange exposures and commodity futures contracts to hedge the exposure to oil price risks. Gains or losses on settled contracts are recognized in the profit and loss account. Futures contracts not settled as on the Balance Sheet date are marked to market and losses, if any, are recognized in the profit and loss account, whereas, the unrealized profit is ignored. Gains

or losses on the commodity futures contracts is recorded in the profit & loss account under cost of materials consumed. 17 Taxes on Income Tax expense comprises both current and deferred tax. Current tax is the amount of tax payable on the assessable income for the year determined in accordance with the provisions of the Income tax Act, 1961. Deferred tax is recognized on timing differences; being the differences between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed tax losses and tax depreciation are recognized only when there is virtual certainty of their realization and on other items when there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The tax effect is calculated on the accumulated timing differences at the year end based on the tax rate and laws enacted or substantially enacted on the balance sheet date. 18 Segment Reporting The Accounting Policies adopted for segment reporting are in line with the Accounting Policies of the Company. Segment assets include all operating assets used by the business segments and consist principally of fixed assets, debtors and inventories. Segment liabilities include the operating liabilities that result from the operating activities of the business. Segment assets and liabilities that cannot be allocated between the segments are shown as part of unallocated corporate assets and liabilities respectively. Income / Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated corporate income /expenses.

PLANNING POLICY The costs of Human Resource planning are kept minimal as each plant/ profit centre has its own Personal Department which provides all the respective plant 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 department 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. HUMAN RESOURCE POLICIES 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 organization 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 departments of organization define the quality needed in employee and after this the HR department posts 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. MARKETING POLICY Godrej Group is expected to increase its market share in various products by increasing capacity, introducing new products and entering new markets. Our FMCG business is expected to grow by 50% in the current financial year. Bulk soaps and property will grow by 15%. The group is actively tapping the export market with its varied and good quality beverage. Finally, we are looking for a strategic alliance to import and market products related to our activities using our vast and experienced sales and distribution infrastructure. GCPL has a widespread distribution network across India. It has a presence in both the urban and rural markets, enabling it to benefit from the opportunities in both segments. It has a sales team which comprise of over 250 staff spread across the country. It has a network of 33 C&F agents and as on February 29, 2008. It had 1,273 distributors, 142 super stockiest and 3,175 sub stockiest to support the sales team in India. Its distributors and sub stockiest cover around 650,000 retailers in India. GCPL has linked its major distributors in India through a system called Sam park, a collaborative planning, forecasting and replenishment system with its ERP system leading to reduced inventory levels, which would translate into better returns for them. The following is the Marketing Strategy of Godrej Industries:

Relaunching products across categories to revive demand and enhance customer recall (repackaging or brand extension to new product categories) Shifting emphasis on non-traditional media for personal care products- Consumer offers (to lure buyers to the doorsteps of any retail outlet), trade schemes to motivate dealers across the country Revitalizes Master Brand strategy and identity for greater synergies across business and brand portfolio Creates new Marketing and Branding strategy geared to supporting the groups revenue growth target of 25-30% annually Outlines a new portfolio management strategy to maximize the value of the Godrej brand and associated businesses Brand valuation and identifying the demand drivers 3*3 strategy to penetrate deeper into Asia, Africa and South America, with three product segments- personal wash, hair care and insecticides RESEARCH AND DEVELOPMENT POLICY The research and development activities broadly comprise of various processes for developing new products, standardizing new analytical methods and identifying substitutes for key raw materials. Through this research and development centre, GCPL continuously interact with consumers to obtain feedback on its products and information obtained is leveraged to complement new product development activities. The Godrej Research & Development Centre is recognised by the Department of Science and Technology, New Delhi. Godrej Industries Limited believes in leveraging technology to help it gain a competitive edge in the market place. PRODUCTION POLICY GCPL currently operates five manufacturing facilities in India at Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha

(Himachal Pradesh) and Sikkim. Further, its manufacturing facilities located abroad at South Africa produce a range of personal care products and hair color products. GCPL continues to maintain efficient manufacturing facilities for a consistent the quality of the products and to reduce operational costs. It focuses on management of logistics, supply chain and distribution functions, which enables GCPL to service customers better. Its widespread manufacturing base helps to manufacture quality products at a low cost. These facilities follow the Total Quality Management (TQM) management philosophy at the manufacturing facilities. This involves focused attention on product quality and manufacturing processes. Many of the GCPLs production facilities are ISO certified for Quality Management System, Environmental Management System, and Occupational Health & Safety Management Systems. Internationally, GCPL has manufacturing facilities in South Africa, to manufacture personal care and hair care products. BCG Matrix of Godrej Industries:

1. STAR: GCPL enjoys an off-take of 22.29 per cent in toilet soaps. Godrej Expert has market growth of 19% with market share at 29.4% A liquid detergents account for RS 42.9 Cr for the 2010-2011.Ezee is having large share in market. Ezee the market leader with an overwhelming 81.90% market share by value Home insecticides (market share: 36.6%) and there is more sale of Godrej Good Knight The brand has also emerged market leader, which is growing at about 30 per cent per annum, with a market share of 37.9 per cent 2. CASH COW: Soaps contribute 70 per cent to Godrejs total turnover. With market share of 10.2 per cent, GCPL is the second largest player in the soap market in India. Cinthol soap recorded sales of Rs 80 crore last year, which the company plans to double by year-end. Cinthol has a market share of 2 per cent. Fair Glow soap has high market share and low market demand Godrej No.1 brand is the best-selling Grade 1 soap and the market leader across north India. Market brand Godrej No 1 has a 7 per cent share Hair colours (market share: 29.4%) and best selling product is Godrej Nupur Mehndi 3. QUESTION MARK: Evita Soap is launched in India. Customers in their late twenties and early thirties are targeted for this soap for which fine lines of age start appearing. The soap is priced at Rs

14 for a 75 gram pack and Rs 24 for a pack of two soaps. It is in question mark stage whether it will become a star or dog 4. DOG: Ganga Soap and Godrej Tea are dogs as there market share and market growth is almost zero and there operations are closed down. CONCLUSION Godrej continues its efforts for the betterment of the environment and conservation of scarce natural resources. They say they touch more consumers than any other Indian company- its not just with soaps, locks and cupboards. It is because of their determination towards the helping hand to society and commitment to serve better every time through their CORPORATE GOVERNANCE & its CORPORATE SOCIAL RESPONSIBILITIES.