Vision : Godrej in Every Home and Work Place
Mission : Enriching Quality of Life Everyday Everywhere
Values : Integrity | Trust | To Serve | Respect | Environment
Various Types of Steel – 2011-12
Sr.
No.
G&B Unit
Type of Steel
Specifications
Size in mm
Thickness
Annual
Qty. (M/t)
End Use
1.
CR / GP Coils / Electrical Steel
a.
Furniture, Mumbai
C.R. Coils
IS 513 Gr. D or JIS G
3141 SPCC SD
0.60 – 2.00
28320
Furniture
b.
Godrej Overseas
- Do -
- Do -
- Do -
20000
Furniture
c.
SSG, Chennai
- Do -
- Do -
- Do -
4000
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 2.00
4000
Security Equipments.
e.
Furniture, Mumbai
Pattern coils
Pre-painted
0.60
f.
Appliance Div., Shirwal/Moholi
G.P. Coils /
IS 277 Gr. D/EDD or
JIS G 3302, JIS G 3141
SPCC SD, IS 649
0.35/0.45/0.5
Electrical Steel
450
12000
5400
SUB – TOTAL (A)
Furniture
Refrigerator sides &
doors, Hermetic motors
for compressors
(captive & external)
74170
2.
H.R. / M.S. Plates
a.
Security Equipments, Mumbai
H.R. Coils
Is 2062, Gr. A/B or IS
5986 Fe 410
5 / 10
13500
Security Equipments
b.
Process Equipment, Mumbai
B.Q. Plates
ASTM 515/516 Gr.60/70
8 to 250
19000
Pressure Vessels
c.
Storage Solutions, Chennai
High Strength
H.R.
IS 800 Fe 460
IN 17100 St 46
1.60/1.80/
2.00
15600
4200
Storage Solutions
d.
Appliance div., Moholi
HRPO –
EDD/DD
IS 2062 / 5986
2.80
SUB – TOTAL
3.
Tor Steel Rounds
a.
Construction
SUB – TOTAL
TOTAL
5400
Compressor Cover &
shells
57700
CRS / TMT
Fe 500
8 to 32 mm
7500
7500
139370
Construction
Current Trends
 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.
Image
Image
Image
Image
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 2009-10 price levels.
6th 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
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.
Macro trends – Economic Development
Favourable Economy Trends
Economist Intelligence Unit
Economist
Intelligence Unit
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
High Economy and Infrastructure growth
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
Retail Trend
Rapid Retail transformation
Journey of Organized Retail
Indian retail industry – Large but
highly unorganized
End to end
supply chain
mngmnt,
back end
Range, portfolio operations
format options technology
processes
120
100
80
Traditional
60
Organised
40
Per capita
Retail space
Entry, Growth,
Expansion,
Top line focus
20
In
di
a
hi
na
C
M
al
ay
si
a
Th
ai
la
nd
In
do
ne
si
a
an
Ta
iw
U
S
0
M&A
Shakeout,
Consolidati
on, High
investment
2000
2005
2008
2011
Retail Trend
Consumer Durable Retail trends
Consumer Durable retail – Overall a small segment but
Big within organized
Total retail industry
Breakdown of Organised Retail
Retail Sector by Category
Food & Grocery
30%
9%
Pharmaceuticals
7%
9%
54%
7%
7%
2%
Consmumer
Durables
Apparel
11%
12%
3%
2%
39%
Source: Marketing White book 2010
3%
3%
Others
US $281 bn
7%
3%
3%
1%
Ready made garments
Food & Grocery
Footw are
Consumer Durables
Furniture & Furnishings
Food & Beverages
Jw ellery
Watches
Mobiles
Books, Music,Gifts
Entertainment
Pharmaceuticals
Health & Beauty
Source: Marketing White book 2010
Retail Trend
Consumer Durable Retail trends
ACCOUNT
Next
Big Bazaar
E zone/Home Town
Croma
Reliance Digital
Reliance Mart
Aadhar
ITC
Spencers
Bharti Walmart
Star Bazar
Aditya Birla
Hypercity
Metro
Food Exp
Max Hyper
Carrefour
Hariyali
Shoprite
Yaas
V.mega
Singer
Regional retail
chain stores
Total
2009-10
384
112
51
43
19
42
48
23
20
3
4
4
5
5
4
3
0
150
1
7
13
0
2010-11
500
116
51
65
30
42
48
23
18
11
9
9
9
6
5
4
1
150
1
7
13
0
471
1412
563
1681
19% growth
Consolidation in the industry happening at a rapid pace with 19% growth
in organized retail consumer durable outlets
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
Applaince Industry
Industry Perspective
Indian Durable industry* Market: 2010-11
Refrigerators
Units: 87 Lakhs
Value: 9770Crores
Growth
Over 2009-10
Units: 15%
Value: 14%
Washing Machines
Air Conditioners
MWO
Units: 36 Lakhs
Value: 3400 Crores
Units: 35 Lakhs
Value: 7650 Crores
Units: 12.5 Lakhs
Value: 875Crores
Growth
Over 2009-10
Units: 8%
Value: 6%
Growth
Over 2009-10
Units: 21%
Value: 27%
Growth
Over 2009-10
Units: 26%
Value: 28%
Television
Units: 135 Lakhs
Value: 12875 Crores
Growth
Over 2009-10
Units: 6%
Value: 11%
Major growth being witnessed in Air conditioner and MWO categories, where
product penetration is still low while moderate growth in Refrigerator category
* Godrej Categories
The future trend
– Categories poised for further growth
Domestic Industry
2010-11
2014-15
Ref
Ref, 9769
TV, 12874
WM, 3381
MWO, 875
AC, 7650
2010-11 : 34549 Cr.
Ref
Ref, 16900
TV, 21361
Ref
WM
WM
AC
AC
MWO
TV
WM, 7600
MWO, 1300
AC, 19300
MWO
TV
2014-15 : 66461 Cr.
CAGR : Refrigerators : 12%; Washing Machines : 18%
Air Conditioners : 26%; Microwaves : 12%; TV : 13%
2.22
GAD-Performance 10-11&Business Outlook 2011-12
Refers
Air Conditioners
Godrej Product Mix movement
100%
1475 cr
39
22%
38%
50
90%
80%
70%
279
2045 cr
3%
3%
17%
11%
215
57
386
182
12%
66%
58%
40%
43%
17%
TV
MWO
50%
30%
3%
262
60%
Washers
10%
AC
WM
925
1125
20%
Ref
•Category value in Cr.
10%
•Category mix in %
0%
2010-11
MWO
2011-12
CTV
45%
334%
Value in Rs. Cr.
New businesses to drive growth
2.22
ESTIMATED STEEL CONSUMPTION
2010-11
M/t
10.0 Million Refrigerators :
4.0 Million Washing Machines :
4.2 Million Air Conditioners
1,80,000
48,000
42,000
-----------2,70,000
=======
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 5th 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.
THANK YOU