ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Godrej Half-Year Results up 10 Per Cent

by 5m Editor
29 October 2008, at 7:49am

INDIA - During the first half of this financial year (FY), revenues registered a growth of 10% to 7.51 billion rupees (INR) from INR6.8 billion and PBIT turned positive to INR360 million from a loss of INR60 million.

Godrej Industries Ltd (GIL), a corporate with a diverse range of businesses and products, has announced its results for the second quarter and half year ended 30th September 2008.

Commenting on the performance for Q2 and H1 FY09, chairman of Godrej Industries Limited, A.B. Godrej, said, "Godrej Industries' performance and growth during the first half of this year has maintained its trajectory and pace despite an uncertain economic environment.

"Godrej Industries' financial performance reflects the strength of its well balanced corporate model that includes a mix of strong operating businesses and its equity holding in entities that have the potential to create value over a sustained period of time.

The performance of our subsidiaries and joint ventures is in line with expectation and is proof of the ability to leverage our powerful brand equity. Our brand launches in key categories will aim to harness this potential to its fullest.

Godrej Industries' commitment to building a brighter future for our shareholders and societal stakeholders remains unstinting. Given our multi-dimensional model that has businesses with visible growth outlook we remain confident of our performance going forward," said Mr Godrej.

Godrej Marketing and Branding Strategy – Investing in a Brighter Future

Godrej group has charted a new marketing and branding strategy that aims at revitalising the Godrej master brand. The group has unveiled its new corporate identity recently. The group intends to invest significantly in its Master Brand as part of a systematic plan for creating a strong Godrej brand franchise through strategies for product and brand development, retail channel strategy, communication and talent management. The initial phase of the initiative will build the Godrej Master Brand in tandem with the four businesses of personal grooming, furniture, property and aerospace.

The Chemicals division is a market leader in India in oleo–chemicals and surfactants.

Overview of Major Subsidiaries and Associate Companies

Godrej Agrovet Limited (GAVL)

GAVL is in the business of animal feeds, agricultural inputs, poultry, palm oil and rural retailing. GAVL saw revenue growth of 10% to INR3.95 billion in Q2 FY09 up from INR3.61 billion in Q2 FY08. PBIT turned positive to INR40 million from a loss of INR30 million. During H1 FY09, revenues registered a growth of 10% to INR7.51 billion from INR6.8 billion and PBIT turned positive to INR360 milion from a loss of INR60 million.

Integrated Poultry Business

The poultry division covers the entire value chain from breeding, hatching and rearing of broilers to processing of chilled and ready to eat chicken.

Recently, the Company formed a joint venture with Tyson Foods, world's largest meat processor and marketer for processing and marketing poultry products. Tyson Foods owns 51% in the JV Godrej Tyson Foods Ltd. and 49% is held by GAVL. This JV focuses on processing and marketing chilled chicken through the brand 'Godrej Real Good Chicken' and marketing of ready-to-cook range through the brand 'Godrej Yummiez'.

Animal Feeds Business

Agrovet is the leader in the animal feeds industry in India and manufactures and markets a range of compound feed products for cattle, poultry, shrimp and fish.

Q2 revenues up 55% to INR3.03 bilion from INR1.96 billion.

H1 FY09 saw revenues increase 30% to INR5.54bn from INR4.24 billion and PBIT up 1% to INR960 million from INR950 million.

GIL has a 75.2% equity stake of GAVL as of September 30th 2008.

Other companies belonging to the Group are:

  • Oil Palm Plantation Business (Agrovet)
  • Godrej Consumer Products Limited
  • Godrej Sara Lee Limited
  • Godrej Hershey Limited

Further Reading

- You can view the full report by clicking here.

5m Editor