MIRA INFORM REPORT

 

 

Report Date :

06.05.2013

 

IDENTIFICATION DETAILS

 

Name :

GODREJ CONSUMER PRODUCTS LIMITED

 

 

Registered Office :

Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai – 400 079, Maharashtra

 

 

Country :

 India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

29.11.2000

 

 

Com. Reg. No.:

11-129806

 

 

Capital Investment / Paid-up Capital :

Rs.340.300 millions

 

 

CIN No.:

[Company Identification No.]

L24246MH2000PLC129806

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in the manufacture of Personal and Household Care Products.

 

 

No. of Employees :

Information declined by the Management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (75)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 100960000

 

 

Status :

Excellent

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having an excellent track record. It is a major player in the Indian FMCG Market.

 

Financial position of the company appears to be sound. Directors are reported to be experienced and respectable businessmen. There appears continuous growth in the share price of the company.

 

Trade relations are trustworthy. Business is active. Payments are reported to be regular and as per commitment.

 

The company can be considered excellent for normal business dealings at usual trade terms and condition.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Long Term Rating: AA

Rating Explanation

High degree of safety and very low credit risk.

Date

November, 2012

 

 

Rating Agency Name

ICRA

Rating

Short Term Rating: A1+

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

November, 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

INFORMATION DECLINED

 

Management non-cooperative

(Contact No.: 91-22-25188010)

 

LOCATIONS

 

Registered Office/ Branch Office 1 :

Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai – 400 079, Maharashtra, India

Tel. No.:

91-22-25188010, 25188020, 25188030

Fax No.:

91-22-25188040

E-Mail :

investor.relations@godrejcp.com

Website :

http://www.godrejcp.com

 

 

Factory 1 :

U - 30, Industrial Area, Malanpur, District Bhind – 477 116, Madhya Pradesh, India

Tel. No.:

91-7539-83113/ 83419

Fax No.:

91-7539-283421

 

 

Factory 2 :

Shed No.9 - 12, Byelane #1, Bamunimaidan Industrial Estate, Guwahati – 781 021, Assam, India

Tel. No.:

91-361-2653437/ 2654186

Fax No.:

91-361-2653597

 

 

Factory 3 :

Plot Nos.85-88, EPIP, Phase-II, Village Thana, Tehsil Nalagarh, District Solan – 173 205, Himachal Pradesh, India

Tel. No.:

91-1795-274298/ 274235

Fax No.:

91-1795-274233

 

 

Factory 4 :

APDC Complex, CITI, Kalapahar, Guwahati – 781 016, Assam, India

Tel. No.:

91-361-2477174/ 2476765

 

 

Factory 5 :

Shed No. A3, A4 and A8 Part, Mini Industrial Estate, Kalapahar, Guwahati – 781 016, Assam, India

Tel. No.:

91-361-2491358

 

 

Factory 6 :

Shed No.A12 and B2, Mini Industrial Estate, Kalaphar, Guwahati – 781 016, Assam, India

Tel. No.:

91-361-2478294/ 2478261

 

 

Factory 7 :

15th Mile, National Highway No.41, G.S. Road, Byrnihat, Rebhoi District, Meghalaya, India

Tel. No.:

91-3638-263706/ 263768

 

 

Factory 8 :

Lalunggaon, Lokhra, Guwahati – 781 034, Assam, India

Tel. No.:

91-361-2236729/ 2236730/ 2236750/ 2236752

 

 

Factory 9 :

C/o Filpak India Private Limited, 46/47 Pileme Industrial Estate, Pileme, Brdez, Goa – 403 511, India

Tel. No.:

91-832-2407090/ 2407193

 

 

Factory 10 :

Chak Pratap Sigh, National Highway - 1A, Hatli More, Kathua – 184 102, Jammu and Kashmir, India

Tel. No.:

91-1922-203425

 

 

Factory 11 :

R.S. No.74/4, 74/5 and 74/6, Nallur Village, Mannadipet Commune -- 605 107
Pondicherry, India

Tel. No.:

91-413-2640711/ 712

 

 

Factory 12 :

R.S. No.131, 131/1-4, Cuddalore Road, Kattukuppam Manpet Post – 607 402, Pondicherry, India

Tel. No.:

91-413-3291972/ 2611463/ 464

Fax No.:

91-413-2611260

 

 

Factory 13 :

Re-survey No.239/3, 239/4, 240/5, 240/6, Kurumbakaram Nedungadu  Commune, Karaikal – 609 603, Pondicherry, India

Tel. No.:

91-4368-262147/ 262148

 

 

Factory 14 :

Re-survey, No.245/1A, 245/3, 245/4 and 246/2a, Sethur Village, Thirunallar Commune, Karaikal – 609 601, Pondicherry, India

Tel. No.:

91-4368-236696/ 236697

 

 

Factory 15 :

E-5, Industrial Estate, Marai Malai Nagar - 603 209, Tamilnadu

Tel. No.:

91-44-67455533

 

 

Branch Office :

Also located at:

 

·         Chennai

·         Delhi

·         Kolkata

 

 

International Operations :

Located at:

 

• Africa: South Africa, Nigeria, Mozambique

• Asia: Indonesia, Bangladesh, Sri Lanka

• Europe: United Kingdom

• Latin America: Argentina, Uruguay, Brazil

• Middle East: UAE

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. Adi Godrej

Designation :

Chairman

Qualification :

B.S, M.S, Massuchusetts Institute of Technology, U.S.A.

 

 

Name :

Mr. A. Mahendran

Designation :

Managing Director

Qualification :

ACA

 

 

Name :

Mr. Narendra Ambwani

Designation :

Director

 

 

Name :

Mr. D. Shivakumar

Designation :

Director

 

 

Name :

Mr. Bharat Doshi

Designation :

Director

 

 

Name :

Mr. Nadir Godrej

Designation :

Director

 

 

Name :

Ms. Tanya Dubash

Designation :

Director

 

 

Name :

Mr. Jamshyd Godrej

Designation :

Director

 

 

Name :

Ms. Nisaba Godrej

Designation :

Director

 

 

Name :

Mr. Bala Balachandran

Designation :

Director

 

 

Name :

Mr. Aman Mehta

Designation :

Director

 

 

Name :

Dr. Omkar Goswami

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Rakesh Sinha

Designation :

COO (Global Supply Chain, Manufacturing and IT)

Qualification :

B. Tech (Mech) P.G.D.I.E. A I C W A, CFA

 

 

Name :

Mr. Shashank Sinha

Designation :

President (International Business)

Qualification :

BE, MBA

 

 

Name :

Mr. P. Ganesh

Designation :

Executive Vice President (Finance and Commercial) and Company Secretary

Qualification :

B.Com, ACA, ACS, Grad CWA

 

 

Name :

Mr. Rahul Gama

Designation :

Executive Vice President (HR)

Qualification :

MBA

 

 

Name :

Mr. Sundar Nurani Mahadevan

Designation :

Executive Vice President (R & D)

Qualification :

PHDM, MSC, BSC

 

 

Name :

Mr. Sunil Kataria

Designation :

Executive Vice President (Sales and Marketing)

Qualification :

MBA

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2013

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

18913647

5.56

http://www.bseindia.com/include/images/clear.gifBodies Corporate

197221435

57.95

http://www.bseindia.com/include/images/clear.gifSub Total

216135082

63.51

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

216135082

63.51

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

1614078

0.47

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

81409

0.02

http://www.bseindia.com/include/images/clear.gifInsurance Companies

2253992

0.66

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

96057142

28.22

http://www.bseindia.com/include/images/clear.gifSub Total

100006621

29.39

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4783649

1.41

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 million

18754128

5.51

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 million

647445

0.19

http://www.bseindia.com/include/images/clear.gifSub Total

24185222

7.11

Total Public shareholding (B)

124191843

36.49

Total (A)+(B)

340326925

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

340326925

0.00

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Promoter and Promoter Group

 

Name of the Shareholders

Details of Shares held

No. of Shares held

As a % of

Adi Barjorji Godrej

500

0.00

Freyan Vijay Crishna

1909744

0.56

Godrej And Boyce Mfg Co Limited

123561815

36.31

Godrej Industries Limited

73659620

21.64

Hormazd Nadir Godrej

1028728

0.30

Nadir Barjorji Godrej

1732765

0.51

Navroze Jamshyd Godrej

1895049

0.56

Nisaba Adi Godrej

1263339

0.37

Nyrika Vijay Crishna

1909740

0.56

Parmeshwar Adi Godrej

4

0.00

Pirojsha Adi Godrej

1263353

0.37

Raika Jamshyd Godrej

1895048

0.56

Rati Nadir Godrej

1028728

0.30

Rishad Kaikhushru Naoroji

3723317

1.09

Tanya Arvind Dubash

1263332

0.37

Total

216135082

63.51

 

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category Public and holding more than 1% of the total number of shares

 

Name of the Shareholder

No. of Shares held

Shares as % of Total No. of Shares

Aberdeen Global Indian Equity Fund Mauritius Limited

13230000

3.89

Aberdeen Global Emerging Markets Smaller Companies Fund

4190203

1.23

Arisaig Partners Asia PTE Limited A/c Arisaig India Fund Limited

9294996

2.73

Baytree Investments ( Mauritus) PTE Limited

16707317

4.91

Total

43422516

12.76

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in the manufacture of Personal and Household Care Products.

 

 

Products :

Item Code No. (ITC Code)

34.01*

Product Description

Soaps

Item Code No. (ITC Code)

33.07*

Product Description

Cosmetics

Item Code No. (ITC Code)

3808.1*

Product Description

Insecticides

 

* Represents Heading No. of the Hormonised Commodity Description and Coding System

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity*

 

Actual Production

Soaps

M.T.

159000

88872

Hair Colour and Other Toiletries

M.T.

17880

1763

Fatty Acids

M.T.

97500

5189

Glycerine

M.T.

2300

4726

Detergents

M.T.

12000

5410

Repellents

Nos. (Million)

342

235

 

* As certified by the management and relied on by the Auditors, being a technical matter.

Notes:

1. The licensed capacities are not applicable in view of the exemption from licensing granted under Notification SO 477 (E) dated July 25, 1991, issued under Industries (Development and Regulation) Act, 1951.

2. Actual production excludes production for captive consumption.

3. Actual production excludes items processed for the Company by third parties, viz. Hair colour and other toiletries 5,075 MT.

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the Management

 

 

Bankers :
  • Central Bank of India
  • Citibank N.A.
  • HDFC Bank Limited
  • State Bank of India
  • The Hongkong and Shanghai Banking Corporation Limited

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

Deferred Sales Tax Loan

(Deferred sales tax loan is interest free and will be paid in balance 28 monthly installments. It is secured by Bank Guarantee in favour of Sales Tax authorities.)

0.800

1.400

SHORT -TERM BORROWINGS

 

 

Loans Repayable on Demand

Cash Credit from Bank

(Cash Credit from Bank is secured by Hypothecation of Inventories and Book debts.)

21.900

97.500

Total

22.700

98.900

 

Notes:

 

LONG-TERM BORROWINGS

The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.

 

SHORT -TERM BORROWINGS

The Company does not have any default as on the Balance Sheet date in repayment of any loan and interest.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Kalyaniwalla and Mistry

Chartered Accountants

Address :

Mumbai, Maharashtra, India

 

 

Enterprise having control over reporting enterprise :

Godrej and Boyce Mfg. Company Limited

 

 

Subsidiaries :

i) Godrej Household Products Lanka (Private) Limited

ii) Godrej Household Products (Bangladesh) Private Limited

iii) Godrej Consumer Products Bangladesh Limited

iv) Rapidol (Proprietary) Limited

v) Godrej Global Mid East FZE

vi) Godrej Hygiene Products Limited

vii) Godrej Consumer Products Nepal Private Limited

viiii) Godrej Netherlands B.V.

Godrej Consumer Products (UK) Limited

   Keyline Brands Limited

        Inecto Manufacturing Limited

ix) Godrej Consumer Products Mauritius Limited

Godrej Kinky Holdings Limited

    Kinky Group (Proprietary) Limited SA

Godrej Nigeria Holdings Limited

    Godrej Nigeria Limited

Godrej Argentina Dutch Cooperatief U.A

    Godrej Netherlands Argentina Holding B.V.

Godrej Netherlands Argentina B.V.

    Laboratoria Cuenca S.A

        Deciral S.A.

        Issue Group Uruguay S.A

        Issue Group Brazil Limited

        Consell S.A

Argencos S.A

Panamar Produccioness Srl

x) Godrej Consumer Products Holding (Mauritius) Limited

Indovest Capital Limited, Labuan

Godrej Consumer Products Dutch Cooperatief U.A.

    Godrej Indonesia Netherlands Holding B.V.

    Godrej Consumer Products (Netherlands) B.V.

   Godrej Consumer Holdings (Netherlands) B.V.

         PT Simba Indosnack Makmur

         PT Indomas Susemi Jaya

         PT Intrasari Raya

          PT Megasari Makmur

          PT Ekamas Sarijaya

          PT Sarico Indah

xi) Godrej Mauritius Africa Holdings Limited

Godrej Weave Holdings Limited (w.e.f. September 1, 2011)

    DGH Mauritius Private Limited (w.e.f. September 1, 2011)

    Weave Business Holding Mauritius Private Limited (w.e.f. September 1, 2011)

          Subinite Pty Limited

          Lorna Nigeria Limited

          Weave IP Holding Mauritius Private Limited

          Weave Mozambique Limitada

Weave Trading Mauritius Private Limited (w.e.f. October 13, 2011)

   Hair Trading (Offshore) S. A. L.

 

 

Enterprises under common control with whom transactions have taken place during the year :
  • Godrej Industries Limited
  • Godrej Agrovet Limited
  • Godrej Tyson Foods Limited
  • Godrej Infotech Limited
  • Godrej Properties Limited
  • Godrej Oil Palm Limited
  • Natures Basket Limited
  • Godrej Vikhroli Properties LLP

 

 

Enterprise over which Key Management Personnel exercise significant influence :
  • Godrej Hershey Limited
  • Godrej Investments Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

410000000

Equity Shares

Re.1/- each

Rs.410.000 millions

10000000

Preference Shares

Re.1/- each

Rs.10.000 millions

 

Total

 

Rs.420.000 millions

 

 

 

 

 

Issued Capital :

No. of Shares

Type

Value

Amount

340328585

Equity Shares

Re.1/- each

Rs.340.300 millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

340297461

Equity Shares

Re.1/- each

Rs.340.300 millions

 

 

 

 

 

Notes:

a) During the year, the Company issued 16707317 equity shares of Re.1 each at a premium of Rs.409 per equity share to Baytree Investments (Mauritius) Pte. Limited on preferential basis. The issue proceeds aggregating to Rs.6849.900 millions have been utilized to retire debt and for general corporate purpose.

 

b) 31124 Right Issue Shares (i.e. difference in issued capital and Paid-up capital) are kept in abeyance due to various suits filed in courts / forums by third parties for which final order is awaited.

 

c) Terms / rights attached to equity shares

 

The Company has issued only one class of equity shares having a par value of Re.1 each. Each equity shareholder is entitled to one vote per share.

 

During the year ended March 31, 2012, the amount of per share dividend recognised as distribution to equity shareholders was Rs.4.75

 

The reconciliation of number of equity shares outstanding and the amount of share capital:

 

 

No. of Shares

Amount

(Rs. In millions)

Shares outstanding at the beginning of the year

323590144

323.600

Add: Shares Issued during the year

16707317

16.700

Less: Shares bought back during the year

--

--

Shares outstanding at the end of the year

340297461

340.300

 

Shareholders holding more than 5% shares in the Company:

 

Name of the Shareholder

 

No. of Shares

% held

Godrej and Boyce Manufacturing Company Limited

125231815

36.8%

Godrej Industries Limited

71989620

21.2%

 

Aggregate no. of Equity shares during the five years immediately preceding the date of Balance Sheet:

 

Particulars

 

No. of Shares

Allotted as fully paid-up pursuant to contract without payment being received in cash

51236136

Shares Bought Back

1122484

 

Shares Reserved for issue under options

 

The Company has 94966 equity shares reserved for issue under Employee Stock Grant Scheme as at March 31, 2012.

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

340.300

323.600

308.190

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

24898.900

15013.400

7966.463

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

25239.200

15337.000

8274.653

LOAN FUNDS

 

 

 

1] Secured Loans

22.700

98.900

123.980

2] Unsecured Loans

2352.400

595.000

0.000

TOTAL BORROWING

2375.100

693.900

123.980

DEFERRED TAX LIABILITIES

108.600

85.300

63.212

 

 

 

 

TOTAL

27722.900

16116.200

8461.845

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

11814.100

12297.000

1655.579

Capital work-in-progress

121.900

75.500

8.372

 

 

 

 

INVESTMENT

11934.600

3620.600

5218.817

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4330.400

3063.700

1680.482

 

Sundry Debtors
942.700

1032.900

331.495

 

Cash & Bank Balances
3696.300

806.200

1857.041

 

Other Current Assets
35.800

11.300

60.442

 

Loans & Advances
2917.400

2362.400

1055.430

Total Current Assets
11922.600

7276.500

4984.890

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
5310.100

2481.500

1006.988

 

Other Current Liabilities
2502.400

4437.200

2261.283

 

Provisions
257.800

234.700

137.542

Total Current Liabilities
8070.300

7153.400

3405.813

Net Current Assets
3852.300

123.100

1579.077

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

27722.900

16116.200

8461.845

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from Operations (Net)

29800.800

24689.000

12678.812

 

 

Other Income

630.500

371.400

495.879

 

 

TOTAL                                     (A)

30431.300

25060.400

13174.691

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Raw Materials including Packing Material Consumed

13270.600

9703.200

10009.153

 

 

Purchases of Stock-in-Trade

2357.200

1956.800

 

 

 

Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

(867.400)

(314.600)

 

 

 

Employee Benefits Expenses

1567.400

1335.700

 

 

 

Other Expenses

7930.200

7056.000

 

 

 

Exceptional Items

(1809.500)

(403.100)

 

 

 

TOTAL                                     (B)

22448.500

19334.000

10009.153

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

7982.800

5726.400

3165.538

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

133.900

57.000

36.622

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

7848.900

5669.400

3128.916

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

258.300

219.800

137.494

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

7590.600

5449.600

2991.422

 

 

 

 

 

Less

TAX                                                                  (H)

1546.700

1100.000

510.258

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

6043.900

4349.600

2481.164

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4079.100

1742.000

981.458

 

 

 

 

 

 

ADDITION ON AMALGAMATION

--

604.400

--

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

1566.300

1632.000

1258.572

 

 

Tax on Distributed Profits 

254.100

333.900

213.894

 

 

Transfer to General Reserve

604.400

651.000

248.200

 

BALANCE CARRIED TO THE B/S

7698.200

4079.100

1741.956

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods on FOB Basis

1477.700

1324.200

247.326

 

 

Royalty, Know-how and Technical Fees

390.500

280.600

72.358

 

 

Interest and Dividends

193.800

9.800

77.900

 

 

Guarantee Commission from Subsidiary

0.000

1.300

0.000

 

 

License Agreement Termination Compensation

1659.500

403.100

0.000

 

TOTAL EARNINGS

3721.500

2019.000

397.584

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2789.900

1455.600

1507.523

 

 

Spares Parts and Components

0.300

0.000

1.173

 

 

Capital Goods

12.100

2.200

1.159

 

 

Goods for resale

0.000

0.000

36.803

 

TOTAL IMPORTS

2802.300

1457.800

1546.658

 

 

 

 

 

 

Earnings Per Share (Rs.)

18.58

13.62

8.28

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

(1st Quarter)

30.09.2012

(2nd Quarter)

31.12.2012

(3rd Quarter)

31.03.2013

(4th Quarter)

Net Sales

7896.200

9111.700

9391.000

9411.300

Total Expenditure

6730.100

7501.300

7728.500

7559.200

PBIDT (Excl OI)

1166.100

1610.400

1662.500

1852.100

Other Income

111.700

99.400

217.000

88.000

Operating Profit

1277.800

1709.800

1879.500

1940.100

Interest

29.700

47.200

19.400

58.600

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

1248.100

1662.600

1860.100

1881.500

Depreciation

83.100

83.200

80.000

76.400

Profit Before Tax

1165.000

1579.400

1780.100

1805.100

Tax

245.600

312.800

359.300

302.500

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

919.400

1266.600

1420.800

1502.600

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

919.400

1266.600

1420.800

1502.600

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
19.86

17.36

18.83

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
25.47

22.07

23.59

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
31.98

27.84

45.05

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.30

0.36

0.36

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
0.09

0.05

0.01

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.48

1.02

1.46

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

 

 

 

- Dues to Micro, Small and Medium Enterprises
--

--

68.819

- Others
5310.100

2481.500

938.169

Total
5310.100

2481.500

1006.988

 

 

Check List by Info Agents

Available in Report (Yes / No)

1) Year of Establishment

Yes

2) Locality of the firm

Yes

3) Constitutions of the firm

Yes

4) Premises details

No

5) Type of Business

Yes

6) Line of Business

Yes

7) Promoter’s background

No

8) No. of employees

No

9) Name of person contacted

No

10) Designation of contact person

No

11) Turnover of firm for last three years

Yes

12) Profitability for last three years

Yes

13) Reasons for variation <> 20%

--

14) Estimation for coming financial year

No

15) Capital in the business

Yes

16) Details of sister concerns

Yes

17) Major suppliers

No

18) Major customers

No

19) Payments terms

No

20) Export / Import details (if applicable)

No

21) Market information

--

22) Litigations that the firm / promoter involved in

--

23) Banking Details

Yes

24) Banking facility details

Yes

25) Conduct of the banking account

--

26) Buyer visit details

--

27) Financials, if provided

Yes

28) Incorporation details, if applicable

Yes

29) Last accounts filed at ROC

Yes

30) Major Shareholders, if available

Yes

31) Date of Birth of Proprietor/Partner/Director, if available

No

32) PAN of Proprietor/Partner/Director, if available

No

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

Yes

 

 


 

Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG-TERM BORROWINGS

 

 

DEBENTURES

 

 

a) 2,250 Unsecured, Redeemable, Zero Coupon, Non-Convertible Debentures of Rs.1.000 million each

2250.000

0.000

b) Premium on Redemption thereon

(During the year, the Company had issued 2250 zero-coupon, unsecured, redeemable, non-convertible debentures on private placement basis, redeemable at a premium, which will yield 10.75% p.a. at maturity. These debentures are redeemable on November 14, 2014 with call options on November 14, 2012 at a call option premium of 0.25% and November 14, 2013 without any call option premium.)

102.400

0.000

SHORT -TERM BORROWINGS

 

 

Short Term Loan from Bank

0.000

595.000

Total

2352.400

595.000

 

COMPANY OVERVIEW

 

The Company was incorporated on November 29, 2000, to take over as a going concern the consumer products business of Godrej Soaps Limited (subsequently renamed as Godrej Industries Limited), pursuant to a Scheme of Arrangement as approved by the High Court, Mumbai. The Company is a focused fast moving consumer goods company, manufacturing and marketing toilet soaps, hair colour, household insecticides, liquid detergents, toiletries and others.

 

SCHEME OF AMALGAMATION

 

a) The Hon’ble High Court of Judicature at Bombay has vide order dated April 26, 2011, sanctioned a Scheme of Amalgamation of the wholly owned subsidiaries of the Company viz. Naturesse Consumer Care Products Limited (NCCPL) and Essence Consumer Care Products Limited (ECCPL), with Godrej Consumer Products Limited (GCPL). The Appointed Date as per the Scheme is December 3, 2010 and the Effective Date is May 18, 2011. Accordingly, the standalone results of the Company for the year ended March 31, 2012, includes the results of the erstwhile ECCPL and NCCPL for the period April 1, 2011, up to May 18, 2011.

 

b) In accordance with the Scheme of Amalgamation, all the assets and liabilities of ECCPL and NCCPL have been taken over at their respective book values as on December 3, 2010. The difference between book value of assets and liabilities taken over amounting to Rs.376.600 millions, after giving effect to the adjustments proposed in the Scheme, has been debited to General Reserve in accordance with the Scheme of Amalgamation.

 

c) Since the entire issued, subscribed and paid-up share capitals of NCCPL and ECCPL were held by the Company, upon the Scheme of Amalgamation becoming effective, no shares of the Company have been allotted in lieu or exchange of its holding in NCCPL and ECCPL, and the share capitals of NCCPL and ECCPL stand cancelled.

 

d) Since the aforesaid Scheme of Amalgamation, which is effective from December 3, 2010, has been given effect to in these accounts, the figures for the current year, to that extent, are not comparable with those of the previous year.

 

ACQUISITIONS

 

The Company acquired a 51% stake in the Darling Group’s business in South Africa, Nigeria and Mozambique, which represents about 45% of the Group’s business. The acquisition of the balance stake will be completed in phases spread over the next 3 to 5 years.

 

Kinky will leverage Darling’s efficient production facilities to considerably lower their costs while hair extensions including artificial hair, wigs adn braids manufactured by Darling have a readymade consumer interface through the Kinky outlets.

 

During the year, the Company also entered into an agreement for acquisition of 60% stake in Cosmetica Nacional, a leading hair colourant and cosmetics company based in Chile and with important presence in Panama and Costa Rica as well. The Company also has a strong presence in the colour cosmetics segment - “Pamela Grant” is the second largest brand in the colour cosmetics market. Cosmetica Nacional also has popular heritage brands including “Illicit” and “U2”. The Company exports to 7 countries in Latin America – this acquisition will enable the Company to strengthen its foothold in the LatAm region. The acquisition has been completed in April 2012.

 

TERMINATION OF LICENSES

 

The Kiwi Manufacturing and Distribution license for the use of Kiwi Shoe Care and Kiwi Kleen Brands in India and Sri Lanka, granted to the erstwhile Godrej Household Products Limited by Sara Lee Corporation, USA, has been terminated with effect from April 3, 2011. The Company received Rs.1560.000 millions and its wholly owned subsidiary Godrej Household Products Lanka (Private) Limited received Rs.190.000 millions as a one-time exit compensation.

 

The license for the use of Brylcreem brand in India and Sri Lanka granted to the erstwhile Godrej Household Products Limited by Sara Lee Corporation, USA has been terminated with effect from March 31, 2012. This is consequent to the sale of global rights of the Brylcreem brand by Sara Lee Corporation to Unilever. As a result of the termination, the Company received Rs.247.600 millions and its wholly owned subsidiary

Godrej Household Products Lanka (Private) Limited received Rs.2.400 millions.

 

OVERVIEW

 

Fiscal year 2012 began on a weak note with the debt crisis in the Eurozone and consequent challenges faced by economies across the world created further uncertainty and led to erosion of investor risk appetite globally. As developed economies struggle to revive their growths, it is becoming increasingly clear that emerging market economies will continue to play a vital role in the revival of the world economy and be greater influencers on policy going forward. According to the Indian Economic Survey, the global economy is expected to grow by 3.3%, while emerging economies are expected to grow by 6.2% in 2012.

 

India however continues to face its own internal challenges. High inflation, driven primarily by supply chain bottlenecks, combined with relatively slow policy actions are all playing their role in slowing down growth. Revenues of the Centre have been lesser than expected and reflect weak manufacturing activity and rising costs and, with higher than budgeted expenditure outgo, an expanding slippage on the fiscal side is evident. The Indian economy is predicted to grow at 6.5% in the year 2011-12 as compared to 8.5% in 2010-11.

 

The FMCG sector is the fourth fastest growing segment in the country with a CAGR of 11% over the last decade led by strong domestic consumption. FMCG companies continue to pursue expansion into rural India. The recent budget has proposed increasing allocation to the Bharat Nirman Programme, from Rs.100000.000 millions to Rs.580000.000 millions – a move that can be expected to further drive rural growth and in turn, boost FMCG companies. Overall, this sector is expected to maintain its robust growth rate.

 

In line with the pattern of growing consumption, they have expanded volumes across all their businesses. Their growth has been a mix of organic and inorganic. On the organic front, their performance has been driven by innovations and a number of effective marketing, sales and supply chain initiatives. They have also leveraged accretive opportunities to enhance their scale and presence through inorganic growth.

 

They have also invested prudently to build on leadership in their core categories. Today, they are the leaders in hair colour, home insecticides and liquid detergents and the number two player in toilet soaps in the Indian market, while also being the market leaders in air fresheners and wet tissues in Indonesia, in hair colours in many countries in Africa and Latin America and in hair extensions in Africa. In addition to this, they are also the number two player in home insecticides in Indonesia and in medicated soaps in Nigeria. Several of their brands are leaders or among the top 3 in their category globally.

 

Home Care

They continue to gain and enjoy market leadership positions across all three formats of coils, aerosols and electrics. Higher growth is being driven by innovative product launches, continuous brand building and distribution gains resulting from the GCPL-GHPL merger. Their home insecticides business grew by 31% as opposed to 10% for the category as a whole.

 

Goodknight, their iconic home care brand remains a leader in the Indian Home Insecticides category. It is also the fastest growing refill brand and enjoys a dominant market share. The Goodknight Advanced Range comprises three products–Goodknight Active Plus (which was voted ‘Product of the Year’ in 2009 in the Home Insecticide category), Goodknight Advanced Low Smoke Coil (the world’s first low smoke coil that emits 80% less smoke while being 25% more effective) and Goodknight Naturals. Their mosquito repellent is enriched with moisturizing and skin care benefits and is available in 50 ml and 125 ml packs. Goodknight Silver Mats has been developed in the mat format and is packaged in quantities of 30 mats and 100 mats. Hit remains the leader in the aerosol format. This brand, which envisions ‘building a happy and safe home’ has grown impressively due to enhanced visibility and focused marketing initiatives. Jet, another well regarded brand, today enjoys high market share in the coil category in Andhra Pradesh.

 

Personal Wash

Personal Wash contributed 33% of their business this year. The toilet soaps business delivered a growth of 27%, against the market category growth of 10%. They also maintained their position as the second largest soap player in India. Godrej No. 1 remains India’s leading Grade 1 soap. Today it is a leading soap brand, with strong market positions in both urban and rural markets and is backed by excellent brand building and brand activation. During the year, the portfolio was expanded to include one more variant, Godrej No.1 Saffron and Milk Cream, which has been one of the most successful new variants in recent years in the Personal Wash category. They have been significantly strengthening the equity of this brand with the ‘Prakriti ka Sparsh’ campaign and see further opportunities to drive penetration.

 

Godrej FairGlow, their fairness specialist soap is the first of its kind in India and continues to grow. Their renowned Cinthol brand also continues to perform exceptionally well. Cinthol stands for activeness and re-energizing freshness. It holds a strong position in key states in the North, West and South. It is available in the following variants – Cinthol Deodrant and Complexion Soap, Cinthol Deo Soap – Aqua, Classic, Cologne, Musk, and

Sport; and Cinthol Fresh - Lime. They are also present in the fast growing deodorant segment in six variants – Sport, Cologne, Classic, Musk, Unleash and Rainstorm. Cinthol talcum powder is also available in five perfumed variants – Sport, Classic, Cologne, Musk and Lime.

 

Hair Care

They are leaders in the hair colour category in India and also the world’s largest manufacturer of powder hair colour. They grew by 14% this year. Godrej Expert Powder Hair Colour and Nupur Natural Mehendi led this healthy growth. They recently launched a new communication campaign for the Godrej Expert range of powder hair colours, which creatively communicates the brand positioning while highlighting the functional benefits of the new variants. Godrej Expert Original continues to be the category recruitment driver and the new variants, Godrej Expert Care Powder Hair Colour and Godrej Expert Advanced Powder Hair Colour, both of which were introduced during the year, are also becoming increasingly popular. The brand set a new benchmark by entering the Limca Book of 2012 when 1,511 people created history by colouring their hair with Godrej Expert within a span of 12 hours. Godrej Expert Care was also voted Product of the Year 2012, based on an independent survey by AC Nielsen amongst 30,000 people across India. Nupur Mehendi continued with strong growth, much ahead of the category and garnered the largest household base among henna users in India. Other products like Kali Mehendi have also performed encouragingly.

 

Their premium offerings, namely Renew and Colour Soft have faced some headwinds, but they are focused on strengthening their value proposition in this category and look forward to a better year going forward.

 

INTERNATIONAL BUSINESSES

 

Their 3 X 3 strategy concentrates on three categories (Personal Wash, Hair Care and Home Care) in three emerging geographies (Asia, Africa and Latin America).

 

Their capabilities across these categories is well established, they have a strong understanding of the dynamics of these business and are well positioned to leverage their distribution and supply chain efficiencies as well as their strengths in terms of brand management, technology and manufacturing to create immense value.

 

Their key international businesses include Rapidol, Kinky, Darling Group, Tura in the African continent, Godrej Global Mideast FZE in UAE, Megasari Makmur Group in Indonesia, Issue Group and Argencos in Argentina and Keyline Brands in the United Kingdom.

 

Indonesia

The Indonesian economy is one of the largest in South East Asia, with a large middle class population that accounts for the major FMCG spends in the country. The FMCG sector in the country is expected to maintain its double-digit growth and consumers across classes have increased their spend significantly over the year. Overall though, the Indonesian consumer is a focused ‘Value for Money’ buyer, an attribute that fits in nicely with their strategy. Indonesia has been upgraded to the investment grade by leading international agencies and received strong FDI over the last year, which translated into improved market buoyancy.

 

The Megasari Makmur Group has performed extremely well as a result of a strong focus on innovation and impactful marketing. Megasari manufactures and distributes a wide range of household and personal care products, including home insecticides, wet tissues and air fresheners in Indonesia. It ranks first in Air Freshners and Baby Wipes and is number two in the Home Insecticides market in Indonesia. Their major brands, Hit and Stella have delivered strongly during the year. They believe that this business has tremendous potential and look forward to building it further in the coming years.

 

Africa

The African continent has a population of over 1 billion and the expected GDP growth rates for the next decade is over 5%. Inflation has also witnessed a declining trend in the continent. Most of their core businesses grew ahead of their categories. They have done well in both the Caucasian and Ethnic hair colour markets. In fact, Rapidol is the market leader in the ethnic hair colour market in South Africa. Their Inecto hair colour range has also grown strongly during the year. The introduction of Renew in 2011 has enabled the brand to further expand its presence in the African market with a Caucasian hair colour offering. The business has also imbibed considerable learning from their Argentinian hair colourant business.

 

They have acquired a 51% stake in the Darling Group’s business in South Africa, Nigeria and Mozambique, which represents about 45% of the Group’s business. This partnership enables them to access major countries in sub-Saharan Africa and build other portfolio categories.

 

Their Kinky brand will leverage Darling’s efficient production facilities to considerably lower their costs while hair extensions manufactured by Darling have a readymade consumer interface through the Kinky outlets.

 

Latin America

Proactive measures like controls on fiscal spends and a reduction in subsidies will help cement the future of the Argentinian economy, though there will be near-term pressures. In addition to this, government directives controlling imports have led to difficult manufacturing and trade environment for many businesses. Their Argentine businesses however see this as an opportunity, since many MNCs import their finished goods. Their performance here has been good, with 30% of the turnover comprising exports in the continent.

 

The combined businesses of Issue and Argencos have provided them with a strong entry and presence in South American markets, particularly in Argentina, Uruguay, Paraguay, Bolivia, Peru, Ecuador and Chile.

 

They have also acquired a 60% stake in Cosmetica Nacional, a leading hair colourant and cosmetics company based in Chile, with an important presence in Panama and Costa Rica as well. The company also has popular heritage brands like Illicit and U2. It exports to 7 countries in Latin America and this will help them to strengthen their foothold in the region.

 

Chile has the highest GDP per capita on PPP basis and is among the five most populated countries in Latin America and is expected to grow the fastest in Latin America in the next 5 years. It has also been rated as the country with best business environment in Latin America (EIU 2009).

 

United Kingdom

Their UK business has performed very well in an economy that has just entered a double dip recession, with challenges from high unemployment to low consumer confidence. This must be credited to their innovative sales and marketing efforts. Provoke Touch of Silver, their hair care range for blonde and grey consumers has nearly doubled in size in the last year and they continue to expand, by taking the brand to Canada, South Africa and other Caucasian markets. Cuticura, their hand sanitiser and skincare brand has also grown strongly. They are very optimistic about growth in the UK and the potential of future innovations and strong marketing plans, across their well-regarded brand portfolio.

 

Middle East

Godrej Global Mideast FZE (GGME) continues to perform well, distributing soaps, hair colours, and toiletries in the UAE and other GCC countries.

 

PROMOTIONAL ACTIVITIES

 

They have supported their new initiatives with extensive promotional activities. The Goodknight Soorya Festival, which has been successfully running for the last 35 years, included dance and theatre performances by renowned artists and movie screenings of regional feature films at various locations across India. Well-known artists Shobana, K. J. Yesudas and Pandit Ramesh Narayan performed at this one-of-a-kind cultural festival. It has been recognized by the Limca Book of as the cultural programme with the longest duration run (of 111 days). They also partnered with Shah Rukh Khan to launch Cinthol’s special edition Ra One Deo spray at Filmcity. The special edition can showed pictures of Shah Rukh in his superhero character G One. Cinthol fans also had a chance to win exciting prizes like bikes, iPads, mobiles and mp3 players.

 

AWARDS AND RECOGNITION

a) Brand Equity’s Most Trusted Brand Survey 2011.

• GoodKnight ranked 2nd in Household Care.

• Cinthol ranked 9th in Personal Care.

• Godrej No.1 ranked 16th in Personal Care.

• Godrej Powder Hair Colour ranked 25th in Personal Care.

• 3 of GCPL’s Brands viz. Cinthol, GoodKnight and Godrej No.1 ranked in 100 Most Trusted Brands.

 

b) Godrej Expert Care Powder Hair Colour – voted Product of the year 2012 in powder hair colour category.

 

c) Malanpur factory won the famous Bhamashah Award in 2011 by the M. P. Govt.

 

d) Malanpur factory won 14 awards at the 25th National Convention of Quality Circle 2011, held at Hyderabad.

 

e) Malanpur factory won the prestigious National Level Knowledge Test on Quality Circle concepts and tools organised by NCQC.

 

f) At a Legal Risk Assessment conducted by Chess Management Services, Malanpur factory was awarded the ‘Best legally complied factory.’

 

g) Godrej Consumer Products awarded NDTV Profit Business Leadership Awards 2011 in ‘Consumer Product Goods’ category

 

OUTLOOK

 

The coming year provides us with tremendous opportunity and they are motivated by the thought of building a stronger GCPL. While there will undoubtedly be challenges, they believe that they have a sound strategy and strong management team to lead this change.

 

DEMERGER: COMPUTATION OF ACQUISITION COST FOR CAPITAL GAINS:

 

With effect from April 1, 2001, the consumer products division of Godrej Soaps Limited (GSL) was de-merged and transferred to Godrej Consumer Products Limited (GCPL), and Godrej Soaps Limited was renamed Godrej Industries Limited (GIL). As a consequence, the face value of each equity share of GIL was reduced from Rs.10 to Rs.6, and each equity shareholder in GSL was allotted one share of GCPL with a face value of Rs.4 (which has been subdivided into shares of face value of Re.1 each with effect from September 1, 2006).

 

In respect of shares of GCPL allotted to erstwhile shareholders of GSL, for the purpose of computing capital gains, the date of acquisition will be the same as the date of acquisition of GSL shares. Thus, the cost of acquisition of GCPL shares will differ with respect to each shareholder, and is equal to: cost of acquisition of GSL shares x (net book value of assets transferred to GCPL, i.e. Rs.456.000 millions) / (net worth of GSL immediately before de-merger i.e. Rs.2869.000 millions). i.e. 15.89% of the cost of acquisition of GSL shares.

 

BASIC DETAILS ABOUT THE BUSINESS

 

The Company is promoted by Godrej and Boyce Manufacturing Company Limited, Godrej Industries Limited and Godrej family members. The shareholding of promoter/promoter group constitute 63.97% of the paid up capital of the Company as at March 31, 2012.

 

The Consumer Products business was part of the erstwhile Godrej Soaps Limited (GSL) and was demerged into Subject in April 2001, pursuant to a scheme of demerger approved by the Hon’ble High Court of Judicature, Mumbai, dated March 14, 2001. Subsequently, Godrej Soaps Limited was renamed as “Godrej Industries Limited”. They are listed on the BSE and the NSE since 2001. With effect from April 2010 Godrej Household Products Limited was merged into GCPL pursuant to a scheme of arrangement sanctioned by the High Court of Judicature at Bombay. GCPL is a leader among India’s Fast Moving Consumer Goods (FMCG) companies, with leading Household and Personal Care Products. Their brands, which include Goodknight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and Snuggy, among others, are household names across the country. They are one of the largest marketers of toilet soaps in the country and are also leaders in hair colours and household insecticides. Three of their brands have been placed in 100 most trusted brands in the country.

 

They are driven by their mission to continuously enhance the quality of life of consumers in high-growth markets with superior-quality and affordable home care, personal care and hygiene products.

 

They also have a strong emerging presence in markets outside India. As part of increasing their global footprint, they recently acquired 51% rights in the Darling group in Africa.

 

With acquisitions of Tura, a leading medicated brand in West Africa, Megasari Group, a leading household care company in Indonesia and Issue Group and Argencos, two leading hair colorant companies in Argentina, Keyline Brands in the United Kingdom, Rapidol and Kinky Group, South Africa and Godrej Global Mideast FZE, they own international brands and trademarks in Asia (ex. India), Latam, Africa, Europe, Australia, Canada and the Middle East.

 

CONTINGENT LIABILITIES

 

Particulars

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

a) Claims for Excise duties, taxes and other matters

 

 

i) Excise duty demands aggregating Rs.39.500 millions (previous year Rs.18.500 millions) against which the Company has preferred appeals (net of tax).

26.700

12.300

ii) Customs Duty claims in respect of Classification

38.700

--

iii) Excise duty claims in respect of non-payment of education cess for the period January 2005 to March 2008 at the Guwahati Factory amounting to Rs.11.800 millions (previous year Rs.11.800 millions) (net of tax).

8.000

7.900

iv) Sales tax demands aggregating Rs.280.700 millions (previous year Rs.208.000 millions) against which the Company has preferred appeals (net of tax).

189.600

138.900

v) Income-tax matters

Demand notices issued by Income-tax Authorities.

78.300

83.700

vi) Other matters - Rs.30.000 millions (previous year Rs.30.000 millions) (net of tax).

20.300

20.000

b) Guarantees

 

 

i) Guarantees issued by banks [secured by bank deposits under lien with the bank Rs.73.200 millions (previous year Rs.55.800 millions)]

102.100

86.500

ii) Guarantees amounting to USD Nil (previous year USD 95 million) given by the Company towards loans provided by HSBC, Hongkong to Godrej Consumer Products Mauritius Limited

--

4302.100

iii) Guarantee amounting to USD 297 million (previous year USD 365 million) given by the Company towards loan provided by banks to Godrej Consumer Products Holding (Mauritius) Limited

15111.500

16416.000

iv) Guarantee of AED 1.4 million (previous year AED 1.4 million) given by the Company to guarantee principal amount of credit facilities extended by HSBC Bank Middle East Limited to Godrej Global Mideast FZE.

19.400

17.300

v) Guarantee given by the Company to guarantee principal amount of credit facilities extended by the Royal Bank of Scotland to Godrej Hygiene Products Limited.

50.000

50.000

vi) Guarantee given by the Company to guarantee principal amount of credit facilities extended by Citibank Sri Lanka and Citibank Bangladesh to Godrej Household Products (Lanka) Private Limited and Godrej Household Products (Bangladesh) Private Limited respectively.

75.600

75.600

vii) Guarantee amounting to USD 10 million (previous year Nil) given by the Company to HSBC, Hongkong towards swap /derivative facilities provided to Godrej Consumer Products Holding (Mauritius) Limited

508.800

--

viii) Guarantee amounting to USD 121 million (previous year Nil) given by the Company to DBS Bank, Singapore towards loan provided to Godrej Mauritius Africa Holdings Limited for acquisition of 51% stake in Darling Group operations at South Africa, Nigeria and Mozambique

6155.900

--

ix) Guarantee given by the Company to HSBC Bangladesh towards credit facilities provided by the Bank to Godrej Household Products (Bangladesh) Private Limited

47.600

--

c) Claims against the company not acknowledged as debt:

 

 

i) Claims by various parties on account of unauthorized, illegal and fraudulent acts by an employee.

242.400

242.400

ii) Claims pertaining to litigations filed against the erstwhile Godrej Household Products Limited.

2.500

2.500

 

STATEMENT OF AUDITED RESULTS FOR THE QUARTER AND THE YEAR ENDED MARCH 31, 2013

 

(Rs. in millions)

PART-I

Sr. No.

Particulars

Standalone

Quarter Ended

Year Ended

31.03.2013

31.12.2012

31.03.2013

(Audited)

(Unaudited)

(Audited)

1

Income from Operations

 

 

 

 

a)   Net Sales (Net of Excise Duty)

9254.100

9215.900

35209.300

 

b)   Other Operating Income

157.200

175.100

600.900

 

Total Income from Operations (Net)

9411.300

9391.000

35810.200

2

Expenses

 

 

 

 

a) Cost of Raw Materials including Packing Material Consumed

3554.300

4103.600

15170.100

 

b) Purchase of Stock in Trade

735.500

822.600

2964.500

 

c) Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade

(80.700)

(687.400)

(1169.100)

 

d) Employee Benefits Expenses

457.200

476.200

1655.600

 

e) Depreciation and Amortisation Expenses

76.400

80.000

322.700

 

f) Advertisement and Publicity

757.600

1072.800

3355.800

 

g) Other Expenses

2135.300

1921.100

7412.500

 

Total Expenses

7635.600

7788.900

29712.100

3

Profit from Operations before Other Income, Finance Cost and Exceptional Items (1-2)

1775.700

1602.100

6098.100

4

Foreign Exchange Gain / (Loss)

2.100

(19.600)

(120.100)

5

Other Income

85.900

217.000

506.500

6

Profit before Finance Cost and Exceptional Items (3+4+5)

1863.700

1799.500

6434.500

7

Finance Cost

58.600

19.400

154.900

8

Profit after Finance Cost but before Exceptional Items (6-7)

1805.100

1780.100

6329.600

9

Exceptional Items

-

-

-

10

Profit Before Tax (8+9)

1805.100

1780.100

6329.600

11

Tax Expense

302.500

359.300

1220.200

12

Net Profit after Tax but before Minority Interest (10-11)

1502.600

1420.800

5109.400

13

Minority Interest

-

-

-

14

Net Profit for the period (12-13)

1502.600

1420.800

5109.400

15

Paid-up Equity Share Capital (Face value per share: Re.1/-)

340.300

340.300

340.300

16

Reserves excluding Revaluation Reserves

-

-

27270.700

17

Debenture Redemption Revaluation Reserves (included in 16 above)

-

-

212.500

18

Earning per share (of Re.1 each) (Not Annualised)

 

 

 

 

a)     Basic (Rs.)

4.42

4.17

15.01

 

b)    Diluted (Rs.)

4.41

4.17

15.01

19

Debt Equity Ratio

-

-

-

20

Debt Service Coverage Ratio (DSCR)

-

-

41.45

21

Interest Service Coverage Ratio (ISCR)

-

-

41.45

 

PART-II SELECT INFORMATION FOR THE QUARTER AND THE YEAR ENDED MARCH 31, 2013

 

Sr. No.

 

Particulars

Standalone

Quarter Ended

Year Ended

31.03.2013

31.12.2012

31.03.2013

(Audited)

(Unaudited)

(Audited)

A

PARTICULARS OF SHAREHOLDING

 

 

 

1

Public Shareholding

 

 

 

 

- Number of shares

124191843

124190949

124191843

 

- Percentage of Shareholding

36.49%

36.49%

36.49%

2

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

0

0

0

 

- Percentage of Shares (as a % of total shareholding of promoter and promoter group)

0.00%

0.00%

0.00%

 

- Percentage of Shares (as a % of the total share capital of the company) b)      Non Encumbered

0.00%

0.00%

0.00%

 

-Number of Shares

216135082

216135082

216135082

 

- Percentage of Shares (as a % of total shareholding of promoter and promoter group)

100.00%

100.00%

100.00%

 

- Percentage of Shares (as a % of the total share capital of the company)

63.51%

63.51%

63.51%

 

 

 

 

Quarter ended March 31, 2013

B

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

0

 

Received during the quarter

40

 

Disposed of during the quarter

40

 

Remaining unresolved at the end of the quarter

0

 

 

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in millions)

Sr. No.

Particulars

As of March 31, 2013

(Audited)

1.

EQUITY AND LIABILITIES

 

1.

Shareholder's Funds

 

 

(a) Share Capital

340.300

 

(b) Reserves and Surplus

27270.700

 

 

27611.000

2. 3.

Minority Interest Non Current Liabilities

-

 

(a) Long-term Borrowings

2602.200

 

(b) Deferred Tax Liabilities (Net)

45.900

 

(c) Other Long-term Liabilities

44.200

 

(d) Long-term Provisions

49.000

4.

Current Liabilities

2741.300

 

(a) Short-term Borrowings

6.000

 

(b) Trade Payables

6665.300

 

(c) Other Current Liabilities

3584.900

 

(d) Short-term Provisions

275.300

 

 

10531.500

 

TOTAL

40883.800

II.

ASSETS

 

1.

Non-Current Assets

 

 

(a) Fixed Assets

12669.300

 

(b)        Goodwill on Consolidation

(c)        Non-Current Investments

14500.500

 

(d) Deferred Tax Assets (net)

-

 

(e) Long-term Loans and Advances

1675.000

 

(f) Other Non-Current Assets

-

2.

Current Assets

28844.800

 

(a) Inventories

5363.700

 

(b) Trade Receivables

1221.300

 

(c) Cash and Bank Balances

4605.500

 

(d) Short-term Loans and Advances

820.500

 

(e) Other Current Assets

28.000

 

 

12039.000

 

TOTAL

40883.800

 

1. Summary of Standalone Financial Results:

(Rs. in millions)

 

 

31.03.2013

31.12.2012

31.03.2013

 

 

(Audited)

(Unaudited)

(Audited)

a)

Turnover (Net Sales)

9254.100

9215.900

35209.300

b)

Profit Before Tax

1805.100

1780.100

6329.600

c)

Profit After Tax

1502.600

1420.800

5109.400

 

2. The above results which are published in accordance with Clause 41 of the Listing Agreement have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on April 30, 2013. These results have been subjected to a limited review / audit by the Statutory Auditors of the Company.

 

3. In accordance with the Scheme of Amalgamation of the erstwhile Godrej Household Products Limited with the Company which was sanctioned by the High Court of Judicature at Bombay in April 2011, an amount of Rs.130.100 millions for the quarter ended and Rs.527.500 millions for the year ended on March 31, 2013, equivalent to the amortisation of the Goodknight and Hit Brands is directly debited to the General Reserve instead of being debited to the Statement of Profit and Loss.

 

4. During the year, the Company completed the acquisition of 51% stake in Darling group operations in Kenya and 60% stake in Cosmetica Nacional in Chile.

 

5. The Company has exercised the option to accumulate the exchange differences in "Foreign Currency Monetary Item Translation Difference Account" and an amount of Rs.37.400 millions remains to be amortized as at March 31, 2013.

 

6. During the quarter, certain overseas subsidiaries of the Company completed the divestment of its non-core foods business together with the associated Brands at a value of about USD 35 million.

 

7. Formula used for calculation of Debt-Equity Ratio, DSCR and ISCR:

Debt-Equity ratio = (Long Term Borrowings - Cash and Bank Balances excluding Dividend Accounts - Liquid Investments) / Net Worth

DSCR = EBITDA / (Finance Cost + Principal Payment due on Long Term Borrowing during the year) ISCR = EBITDA / Finance Cost

EBITDA = "Earnings Before Depreciation, Interest and Tax"

 

8. The Board has declared the fourth interim dividend for the year 2012-13 at the rate of Rs.2 per share (200% on the face value of Re.1 each). The record date for the same has been fixed as May 9, 2013 and the dividend shall be paid on May 22, 2013.

 

9. The Company has only one business segment in which it operates viz. Household and Personal Care.

 

10. The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the respective financial year.

 

11. Previous period's figures have been regrouped and reclassified wherever necessary.

 

FIXED ASSETS:

 

TANGIBLE ASSETS

·         Freehold Land

·         Leasehold Land

·         Leasehold Improvements

·         Buildings

·         Plant and Equipments

·         Furniture, Fixtures and Fittings

·         Office Equipment

·         Vehicles

·         Computers

Assets under Finance Lease:

·         Leased Vehicles

INTANGIBLE ASSETS

·         Goodwill

·         Trademarks and Brands

·         Computer Software

·         Technical Knowhow

 

WEBSITE DETAILS:

 

NEWS/ PRESS RELEASES:

 

MOTILAL OSWAL NEUTRAL ON GCPL; TARGET RS.800

 

February 06, 2013

Motilal Oswal has maintained a neutral rating on Godrej Consumer Products (GCPL) with a target price of Rs.800, in its February 01, 2013 research report.

 

(GCPL) consolidated results for 3QFY13 were below expectations. Sales grew 26% to INR16.9b (est of INR17.6b), EBITDA margin declined 310bp to 16.6% (est of 19.3%), while adjusted PAT grew 3% to INR1.7b (est of INR2.18b). Consolidated organic sales growth of 19% was driven by household insecticides (HI), toilet soaps and Megasari, which posted a growth of 28%, 20% and 30%, respectively. Standalone sales grew 20% to INR9.2b. International business grew 34% (16% organic), led by Megasari and integration of Darling and Chile business.

 

Gross profit grew 31% to INR9.3b, with margin expanding 200bp on account of correction in palm oil prices as well as product price hikes. However, EBITDA margin declined 310bp to 16.6%, led by higher ad spends (up 400bp) and other expenses (up 170bp). Standalone gross margin expanded 250bp and EBITDA margin declined 260bp to 16.4%. While Soap volumes grew 2%, Hair Colors and HI posted 17% and 27% growth, respectively, led by continued brand spends and good traction in new launches in Hair Colors. HI volumes were up 23-24%. International sales grew 34% to INR7.58b, driven by 16% organic growth. EBITDA grew 4.5% and EBITDA margin declined 490bp to 16.2%.

 

We cut our earnings estimate by ~7% for FY13 to incorporate the lower than expected EBITDA for the quarter. While we expect margins to improve in 4Q, 190bp EBITDA margin contraction in 9M precludes our earlier forecast of flat margins for FY13. The stock trades at 26.6x FY14E EPS of INR26.6 and 21.8x FY15E EPS of INR32.5. We like GCPL's sustained share gains in HI category in India and its continued robust performance in Indonesia (45% of international business). As expected, the decline in PFAD prices is providing a tailwind. However, valuations reflect the positives, in our view. Maintain Neutral with a target price of INR800 (25x FY15E EPS)," says Motilal Oswal research eport.

 

Public holding more than 90% in Indian cos

 

BUY GODREJ CONSUMER PRODUCTS: VENTURA SECURITIES

 

February 05, 2013

Ventura Securities is bullish on Godrej Consumer Products  (GCPL) and has recommended buy rating on the stock in its February 04, 2013 research report. According to the research firm, the company is expected to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends, continued distribution synergies and its focus in crème format.

 

"GCPL continued its strong growth momentum during Q3FY13 by recording 25.8% YoY growth in revenues to Rs16913.000 millions led by robust 20.4% YoY growth in its domestic business (HI 28% YoY; Soaps 20% YoY with volume growth of ~2% and Hair Colors 17% YoY), which contributes ~55.5% to the consolidated revenues. Inflationary pressures and higher A&P expenses (+61% YoY) led to a contraction of GCPL's EBITDA margins to 16.8% (-320 bps YoY). However, the margins expanded on QoQ basis (v/s 15.6%; +120 bps QoQ).

 

As stated earlier, domestic business grew by 20.4% YoY led by robust growth in its key segments - Home Insecticides (~1.3x category growth) and Hair Colors (17% YoY). Household Insecticides segment witnessed growth on the back of continued distribution synergy benefits and launch of ‘Goodknight Advanced colour play'. The category also benefited due to high incidence of dengue and malaria. On the other hand, GCPL's soaps segment witnessed growth of 20% YoY primarily led by price hikes. The volume growth was lower at 2% as compared to category growth of 8%. Hair colors segment reported encouraging performance during the quarter (17% v/s 21% category growth) owing to positive response from crème format (recent entry).

 

Given the fact that domestic business is the mainstay of its operations, Godrej Consumer Products Limited (GCPL) has displayed its consistency by clocking double digit revenue growth (in its core product categories) over the past several quarters. Also, GCPL enjoys a high operating profit margin of 15%+ due to its superior product profile especially in household insecticide segment. We continue to await the launch of HIT Magic paper (cross pollination from Indonesia), the innovative paper form of mosquito repellant, in India which we believe can be a game changer in the category. We expect GCPL to post robust set of numbers in its domestic business going ahead on the back of new launches and increased A&P spends (Cinthol and ‘aer' air refreshener), continued distribution synergies and its focus in crème format (under hair colours category). In the international business, integration of operations in Africa and Argentina is expected to bring synergies over the next few quarters. Also, we remain positive on the Indonesian operations on the back of regular innovations and distribution expansions. Given the fact that GCPL has a large number of brands under its umbrella (across emerging market geographies), we expect cross-pollination to play out over the next 2-3 years and add further scale to GCPL's operations. At a CMP of Rs 748, GCPL trades at a PE multiple of 33.6x and 26.9x its estimated earnings for FY13 and FY14 and we reiterate a BUY on the stock.

 

In the international business, integration of operations in Africa and Argentina is expected to bring synergies over the next few quarters. Also, we remain positive on the Indonesian operations on the back of regular innovations and distribution expansions. Given the fact that GCPL has a large number of brands under its umbrella (across emerging market geographies), we expect cross-pollination to play out over the next 2-3 years and add further scale to GCPL's operations. At a CMP of Rs 748, GCPL trades at a PE multiple of 33.6x and 26.9x its estimated earnings for FY13 and FY14 and we reiterate a BUY on the stock," says Ventura Securities research report.

 

Bodies Corporate holding more than 50% in Indian cos

 

GODREJ CONSUMER Q3 CONS NET UP 3% AT RS.1720.000 MILLIONS

 

February 01, 2013

Godrej Consumer Products  ' third quarter consolidated net profit rose just 3 percent year-on-year to Rs.1720.000 millions, sending its shares down 2 percent in afternoon trade.

 

The fast moving consumer goods major's consolidated net sales in Oct-Dec were up 26 percent at Rs.16910.000 millions.

 

EBITDA (earnings before interest, taxes, depreciation and amortization) rose 6 percent to Rs.2850.000 millions.

 

"Over last two quarters, we have had several major launches, which were backed with strong marketing investments. The launch response has been very encouraging. Due to the upfront marketing investments on these launches, our EBITDA growth has lagged sales growth during the quarter," Adi Godrej, Chairman said on Thursday.

 

The company's advertising and publicity expenses rose 61 percent last quarter, which impacted EBITDA margins by 240 bps, it said.

 

Godrej is optimistic of continuing strong sales growth going ahead and expects the company's profits to also improve on the back of stronger traction from its launches and favourable input costs.

 

In the Indian sub-continent, the maker of Cinthol soaps and Renew hair colours reported a net profit of Rs.1320.000 millions, up 11 percent from a year ago, while net sales were up 20 percent to Rs.9380.000 millions.

 

Its Africa sales stood at Rs.2260.000 millions and Latin America sales were at Rs.1500.000 millions in the three-month period, Godrej Consumer said.

 

Its Indonesian arm Megasari saw over 30 percent sales growth at Rs.3240.000 millions.

 

HOLD GODREJ CONSUMER: WAY2WEALTH

 

February 06, 2013

Way2Wealth has recommended hold rating on Godrej Consumer Products, in its February 5, 2013 research report.

 
“Godrej Consumer Products, consolidated topline grew by 83% to Rs.16910.000 millions. Consolidated business organic constant currency sales growth also was very robust at around 20%. Consolidated sales growth was driven by the integration of Darling Group and the Chilean acquisition. Currency also played a role in growth of the subsidiaries. Subsidiary sales went up from Rs.5670.000 millions to Rs.7580.000 millions. Indonesia grew at 31% on a constant currency basis. Organic growth for the subsidiaries on a constant currency basis stood at 18%. Indonesia grew at 30% on a constant currency basis. This is on the back of success of Hit Magic Paper and new launches under the Mitu brand. The company plans to disinvest the non core food business from Megasari. Like-to like sales growth in Africa slowed to mid single digit YOY. Management attributes it to a sales mix change where this quarter was more towards braids vs. corresponding quarter last year where mix was more of extensions. Company’s focus on innovation, re-launches, and better supply chain has enabled the company to grow at faster than the market and continue leadership in its category.”

 
“GCPL is present in 3 segments namely soaps, household insecticides and hair colours. In each of these segments the company is a market leader or at No. 2 position. The company has been continuously investing in its brands to gain ground over competition and has created super brands over the decade. The company’s 3x3 strategy (presence in 3 continents and 3 categories) shows its clear focus on using its strengths rather than diversifying into the unknown. Cross synergies from continents will enable growth across geographies and segments and help the company achieve its target of 20%+ topline growth for the next 2-3 years. The company initiated launch of insecticides in Africa with entry into Nigera last quarter.”

 
“The company is on a healthy growth trajectory for the next few years on the back of its inorganic growth, cross launches across geographies, and product innovation. Profitability is expected to improve as the company moves to premiumise its portfolio and implement cost synergies. We like the vision of the management to grow the business while investing in emerging economies. It plans to focus on it 3 mainstay segments where it commands market leadership. At the current market price of Rs.748.1 the stock trades at 39x and 29x its expected EPS of Rs.19 it and Rs.26 for FY13E and FY14E respectively. We recommend the investors to HOLD the stock,” says Way2Wealth research report.

 

Public holding more than 90% in Indian cos

 

TEMASEK ARM TAKES 5% STAKE IN GODREJ CONSUMER

 

Mumbai, January 21:  

Temasek, the investment arm of the Singapore government, has picked up about 5 per cent stake in Godrej Consumer Products Limited (GCPL) for Rs.6850.000 millions. The acquisition is being made by Baytree Investments (Mauritius) Pte Limited, indirectly owned by Temasek, at Rs.410 a share.

 

Godrej will invest part of these proceeds to acquire a 60 per cent stake in Cosmetica Nacional, a Chilean hair colours and cosmetics company, for an undisclosed amount. In its spate of acquisitions, this is first time that GCPL has roped in a private-equity player for funding a buyout. Temasek's investment has been routed through its subsidiary Baytree Investments (Mauritius) Pte Limited.

 

With heritage brands such as Ilicit, U2, and Pamela Grant, Cosmetica Nacional is the market leader in the $110-million Chilean hair-colour business with a market share of 30 per cent.

 

Godrej Consumer is already present in South America through past acquisitions such as Issue and Argencos in Argentina (Godrej Argentina). This is the Godrej group's third acquisition on the continent and 10th international buyout in the past six years.

 

Mr Adi Godrej, Chairman, Godrej Consumer, said, “Cosmetica Nacional is a natural addition to our earlier acquisitions in Latin America. The Chilean business will strengthen our presence in the region and set us on a firm footing to achieve our plans for Latin America.'' Currently, Godrej Argentina, after the integration of Issue and Argencos, is a market leader in Argentina with a 28 per cent volume share in the hair-colour market. It exports to over 30 countries and almost 80 per cent of its sales are to South American countries. The stock of Godrej Consumer closed at Rs.401.70 in Friday's trade.

 

BL Research Bureau reports: Given its many acquisitions in South Africa and Latin America in the last few years, the stock market may not be too excited by Godrej Consumer Products' latest foray into Chile. That the company has not yet disclosed the purchase price is also unlikely to go down well with the market.

 

From a long term perspective, with most Indian FMCG companies already established in South Africa, Latin America may be a less contested market to add to the portfolio.

 

However, what could stir up interest in the Godrej Consumer stock on Monday is news of Temasek picking up around 5 per cent stake in the company to infuse Rs.6850.000 millions.

 

This suggests that Temasek is willing to value the Indian FMCG company at about Rs.137000.000 millions. That is a 5 per cent premium to its Friday closing market capitalisation of Rs.130430.000 millions, providing room for marginal upside.

 

KEYLINE BRANDS LIMITED ACQUIRES

SOFT AND GENTLE BRAND IN THE UK

 

Mumbai, December 31, 2012: Godrej Consumer Products Limited (GCPL) announced today that Keyline Brands Limited, its subsidiary in the United Kingdom, has acquired the Soft and Gentle brand from Colgate-Palmolive. Invoiced sales for the brand in calendar year 2011 were £21m.

 

Soft and Gentle is the UK’s 4th largest female deodorant brand (by market share) and retains strong brand equity with retailers and consumers in the UK. The brand offers a truly ‘feminine’ position in the market on an innovative fragrance platform.

 

Commenting on the acquisition, Mr. Adi Godrej, Chairman, GCPL said:

 

“The acquisition of Soft and Gentle by Keyline Brands will add profitable scale to our UK business. Over the last few years, Keyline Brands has delivered good performance and grown in double digits in a very tough market environment that is witnessing little to no growth.

 

Our UK business has historically had a higher mix of distributed brands than owned brands. Strategically, we have been working on changing the mix towards owned brands and building more scale in the business. With the Soft and Gentle acquisition, the salience of owned brands will become greater than that of distributed brands. We expect this acquisition to be accretive in year one.

 

We have a strong team in the UK that will work on leveraging the synergies from the acquisition and driving the future growth of the Soft and Gentle brand. I am optimistic that our UK business will continue to outperform the market.

 

Our primary thrust continues on executing our 3 by 3 strategy. For the Keyline business, we look to selectively bolt on brands that are strategic, financially accretive and provide significant synergies. Over the last few years, we have clearly demonstrated the results from our focused 3 x 3 approach and are confident that we will be able to further accelerate our performance trajectory in the future.”

 

Anand Rangaswamy, Managing Director of Keyline Brands, added:

 

“As the number 4 female deodorant brand in the UK (by market share), Soft and Gentle enjoys strong latent brand equity. The brand was launched for the UK market in 1976 as the first “non-sting” anti-perspirant for women with consumer loyalty built over 3 decades.

 

We believe we can use the strong latent brand equity combined with updating the fragrance technology, developing further range extensions within the female personal care category and creating an integrated above the line support campaign to engage consumers and drive strong growth for the brand.

 

The brand also enjoys excellent distribution and will provide synergies for the other brands in our portfolio. Our UK team looks forward to harnessing the synergies and driving the business to full potential.”

 

The acquisition is being funded by low cost debt and the impact on GCPL’s consolidated Debt/Equity ratio is 0.03.

 

About Keyline Brands:

 

Established in 1990 in the UK, Keyline Brands was acquired by GCPL in October 2005. Keyline operates in the household and personal care space and its portfolio includes a number of important niche brands like Cuticura, Aapri, Inecto and Touch of Silver.

 

About GCPL:

 

Godrej Consumer Products Limited (GCPL) is a major player in the Indian FMCG market, with leading Household and Personal Care Products. Our brands, which include GoodKnight, Cinthol, Godrej No. 1, Expert, Nupur, aer, Hit, Fairglow, Ezee and Protekt are household names across the country. We are one of the largest marketers of toilet soaps in the country and are also leaders in hair colours and household insecticides. Four of our brands (GoodKnight, Cinthol, Godrej No.1 and Godrej Expert Hair Colour) are ranked among the ‘100 Most Trusted Brands’ in the country by Economic Times - Brand Equity 2012.

 

We are driven by our mission to continuously enhance the quality of life of consumers in high-growth markets with superior-quality and affordable home care, personal care and hygiene products. We also have a strong emerging presence in markets outside India. As part of increasing our global footprint, we recently acquired 60% rights in Cosmetica Nacional, a Chilean hair colour company. The acquisition of the pan-African Darling Group, and Rapidol and Kinky in South Africa have given GCPL leading positions in the fast growing African ethnic hair care market. With acquisitions in West Africa, the Megasari Group, a leading household care company in Indonesia and Issue Group and Argencos, two leading hair colorant companies in Argentina, Keyline Brands in the United Kingdom, and Godrej Global Mideast FZE, we own international brands and trademarks in Asia (ex. India), Latam, Africa, Europe, Australia, Canada and the Middle East.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.83.80

Euro

1

Rs.70.50 

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

75

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.