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
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