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Vision :Godrej in Every Home and Work Place Mission : Enriching Quality of Life Everyday Everywhere Values : Integrity | Trust | To Serve | Respect | Environment.

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Presentation on theme: "Vision :Godrej in Every Home and Work Place Mission : Enriching Quality of Life Everyday Everywhere Values : Integrity | Trust | To Serve | Respect | Environment."— Presentation transcript:

1 Vision :Godrej in Every Home and Work Place Mission : Enriching Quality of Life Everyday Everywhere Values : Integrity | Trust | To Serve | Respect | Environment

2 Sr. No. G&B UnitType of SteelSpecificationsSize in mm Thickness Annual Qty. (M/t) End Use 1.CR / GP Coils / Electrical Steel a.Furniture, MumbaiC.R. CoilsIS 513 Gr. D or JIS G 3141 SPCC SD 0.60 – Furniture b.Godrej Overseas- Do Furniture c.SSG, Chennai- Do Storage Solutions d.Security Equipment Div., Mumbai G.P. Coils / C.R. Coils IS 277 Gr. D/EDD or JIS G 3302 & JIS G 3141 SPCC SD 0.50 TO Security Equipments. e.Furniture, MumbaiPattern coilsPre-painted Furniture f.Appliance Div., Shirwal/MoholiG.P. Coils / Electrical Steel IS 277 Gr. D/EDD or JIS G 3302, JIS G 3141 SPCC SD, IS /0.45/ Refrigerator sides & doors, Hermetic motors for compressors (captive & external) SUB – TOTAL (A) H.R. / M.S. Plates a.Security Equipments, MumbaiH.R. CoilsIs 2062, Gr. A/B or IS 5986 Fe / Security Equipments b.Process Equipment, MumbaiB.Q. PlatesASTM 515/516 Gr.60/708 to Pressure Vessels c.Storage Solutions, ChennaiHigh Strength H.R. IS 800 Fe 460 IN St /1.80/ Storage Solutions d.Appliance div., MoholiHRPO – EDD/DD IS 2062 / Compressor Cover & shells SUB – TOTAL Tor Steel Rounds a.ConstructionCRS / TMTFe 5008 to 32 mm7500Construction SUB – TOTAL7500 T O T A L Various Types of Steel –

3 Extremely price sensitive market. Consumers demanding more value for each Rupee spent No compromise on quality and after sales service. Consumer seeking : Experience and bonding with the product. Are conscious of environment and seeking eco-friendly products – Products should be certified for 3/4/5 star rating. Constant Innovation for : Better Aesthetics More Functionality Latest technologies Dealers and Retailers are required to spruce up show rooms and offer more comfort to prospective buyers. Display entire range of Products. Current Trends Image

4 DEMAND DRIVERS Summer Temperature Rising With Fastest growing middle class society in Asia CAGR in excess of 20% expected during next 5 years. As per the National Council for Applied Economic Research, MIDDLE CLASS families have an annual income between Rs.3.4 Lacs to Rs.17 Lacs at price levels. 6 th Pay Commission also to enhance purchasing power. Customers are offered zero interest charges. NIL processing fees and zero down payment to woo customers. LG and Samsung strategy of multinationals, for aggressive market penetration. Japanese companies are bridging price gaps. They propose to encash on strong brands like Daikin, Hitachi, National, in the air conditioning sector. Also investing in manufacturing and R&D Centres in India. Replacement cycle of white goods and other consumer durable sredudced from 9/10 years to about 4/5 years. Middle class segment buying more than one unit e.g. 2/3 Acs, 2 TVs, etc. Penetration levels : 18%Refrigerators 6%Washing Machines 1%Microwave 2%Air conditioners Shows a huge market yet to be tapped Effective branding and advertising has lead to increased consumer awareness with a growing preference for new models with more features at the same price point. INNOVATION – KEY TO SUCCESS

5 RAW MATERIAL - STEEL 1. QUALITY PARAMETER * Sheets = Table Top Flatness (Bow Height max. 2 mm) * Surface free from any surface defects * Right angle / diagonal accuracy. 2.DELIVERY CONDITIONS & EXPECTATIONS * Strictly on time – In the right mix of various sizes, nominal penalty on a per M/t basis – Purpose to reduce inventory to 2 days from current level of 8 days. * Panels to be pre-inspected and certified by vendor. * Flexibility in quantities to take care of market fluctuations. Vendors to be flexible. Fluctuation of + 25% of ordered quantities to be accepted. 3.FUTURE TRENDS * Door Panels for premium models – PVC on GI – mostly imported from Korea, Taiwan. * PPGI – for new manufacturing locations. * Plastics for side panels / door – New technology using High impact Polystyrene + ABS * Refrigerant Gas – R134 Cooling Gas, eco friendly.

6 Economist Intelligence Unit High Economy and Infrastructure growth Macro trends – Economic Development Favourable Economy Trends Pvt Consn & Infrastructure to boost economy growth. India will spend 9% of its GDP (US$1 Trillion on Infrastructure over the next 5 years) … Technopak Technopak

7 Macro trends – Economic Development Favorable demographic trends India to become less poorer Highly affluent households (> 10 L) to increase from 4 mn to 12.5 mn in urban India and from 1.4 mn to 3.6 mn in rural India. The middle class is the big story in urban and rural India No of individuals across general education levels to increase from current 659 mn to 806.5mn by 2020 Growth in education levels to drive consumerism

8 Retail Trend Rapid Retail transformation Indian retail industry – Large but highly unorganized Journey of Organized Retail Entry, Growth, Expansion, Top line focus Range, portfolio format options End to end supply chain mngmnt, back end operations technology processes M&A Shakeout, Consolidati on, High investment Per capita Retail space

9 Retail Trend Consumer Durable Retail trends Consumer Durable retail – Overall a small segment but Big within organized Total retail industry US $281 bn Source: Marketing White book 2010 Breakdown of Organised Retail Source: Marketing White book 2010

10 Consolidation in the industry happening at a rapid pace with 19% growth in organized retail consumer durable outlets Consolidation in the industry happening at a rapid pace with 19% growth in organized retail consumer durable outlets Retail Trend Consumer Durable Retail trends 19% growth

11 Durable Industry Perspective Growth seen in consumer durable ownership by households fuelled by access to electricity as well as financing to purchase and operate electric appliances

12 Indian Durable industry* Market: RefrigeratorsWashing Machines Units: 87 Lakhs Value: 9770Crores Units: 36 Lakhs Value: 3400 Crores Units: 12.5 Lakhs Value: 875Crores Growth Over Units: 15% Value: 14% Growth Over Units: 8% Value: 6% Growth Over Units: 26% Value: 28% Air Conditioners Units: 35 Lakhs Value: 7650 Crores Growth Over Units: 21% Value: 27% Major growth being witnessed in Air conditioner and MWO categories, where product penetration is still low while moderate growth in Refrigerator category Applaince Industry Industry Perspective Growth Over Units: 6% Value: 11% Units: 135 Lakhs Value: Crores MWO Television * Godrej Categories

13 Domestic Industry Ref : Cr : Cr The future trend – Categories poised for further growth CAGR : Refrigerators : 12%; Washing Machines : 18% Air Conditioners : 26%; Microwaves : 12%; TV : 13% CAGR : Refrigerators : 12%; Washing Machines : 18% Air Conditioners : 26%; Microwaves : 12%; TV : 13%

14 % Value in Rs. Cr. 22% MWO CTV 43% 38% 334% Air ConditionersRefers Washers New businesses to drive growth Godrej Product Mix movement GAD-Performance 10-11&Business Outlook % 11% 17% 3% 58% 12% 17% 3% 10% Category value in Cr. Category mix in % 1475 cr2045 cr

15 ESTIMATED STEEL CONSUMPTION M/t 10.0 Million Refrigerators :1,80, Million Washing Machines : 48, Million Air Conditioners 42, ,70,000 =======

16 GODREJ – Laurels, Credos, Awards, Recognition Godrej Eon Refrigerators awarded : The Design Excellence Aware by Business World and Material Institute of Design. CNBC Awaaz Consumer Award for three consecutive years. Readers digest felicitated Godrej with the Most Trusted Brand gold Award for four consecutive years. FMCG Federation of India honoured Godrej Eon with the Most Preferred Frost Free Refrigerator Brand at the 5 th Consumer World Awards. In 2008, the Urjavaran Foundation felicitated the company with the Best Model Impact towards Energy Efficiency Offering 100% Green Refrigerator since 2002, when research revealed the dangers of CFC/HFC/HCFC laded refrigerants. Product development and relevant technology done through our in-house R&D manned by more than 100 engineers and Designers National Readership Survey data shows that every third household in India owns a Godrej Refrigerator. Only Godrej manufactures refrigerators which are 100% CFC, HFC and HCFC free.

17 THANK YOU


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