No Slide Title · Segment-wise Contribution to Financials – 9M FY2009 616.4 447.8 842.3 137.5 127 62.3 263.2 178.7 CHEMICALS ANIMAL FEEDs VEGOILS ESTATE & PROPERTY DEVELOPMENT

Industries Limited

Q3 & 9M FY2009 Investor Update 27th January 2009

1/24GIL – Q3 & 9M FY2009 Investor Update


Contents• Key Corporate & Business Updates

• Consolidated Results

Financial Overview

Balance Sheet

• Business Structure

Investments

Performance highlights – Subsidiaries, JVs and Associates


Key Corporate & Business Highlights

Corporate Highlights

• Godrej Industries Limited has debuted 12th in the “Best Companies to work for in India” survey done by Mercer Consulting and Business Today. This survey ranks companies in India across various industries on how well they manage their Human capital.

• As per the Thematic Research – Great, Good and Gruesome survey done by Motilal Oswal – 13th Wealth Creation Study 2003-2008, Godrej Industries Limited has been :

– Ranked 8th in the top 10 Fastest Wealth Creators.

– Ranked 64th in the top 100 Biggest Wealth Creators

• Godrej Consumer Products Limited has launched a soap for the first time with a combination of strawberry, walnut and milk cream in a new variant of “Godrej No.1” - ‘Strawberry and Walnut’.


Corporate Highlights

• Godrej Hershey Limited has launched a new candy “Maha Choco”. The product has met with good consumer response with M S Dhoni on board as brand ambassador.

• Godrej Agrovet Limited launched a new premium high fat, high milk yielding compound feed re-launched under the Brand “Bovino” and a 10% starter and 10% finisher concentrate introduced in broiler feed for small broiler integrators under the name “HPBC”.

Corporate Social Responsibility

• GIL has contributed and supported various causes and initiatives in the areas such as health, medical care and treatment, education, social awareness on health, environment and social welfare.


Consolidated Results


Q3 & 9M FY2009 Highlights

Particulars Q3 Q3 FY2009FY2009

Q3 Q3 FY2008FY2008

% Shift 9M 9M FY2009FY2009

9M 9M FY2008FY2008

% Shift

Total Income # 803 668 20% 2609 2,075 26%

PBDIT * 39 67 (42)% 204 181 13%

Depreciation 13 13 36 37

Interest 26 18 71 56

PBT * 0.2 36 (99)% 97 88 9%

PAT 5 28 (81)% 77 59 31%

* - Incl. exceptional items but excl. prior period and extraordinary items

# Incl. other income

Rs. crore


Balance Sheet(Consolidated)

Rs. crore


Liabilities Assets31-12-08 30-09-08 31-12-08 30-09-08

Capital* 170 163 Net Fixed Assets** 1,016 1,009

Reserves 1,413 1,418 Investments 603 590

Debt 1,521 1,401 Net Current Assets 1,381 1,310

Def. Tax Liability 55 54 Cash & Bank bals. 159 127

Total 3,159 3,036 Total 3,159 3,036

* - Capital includes Minority Interest

** - Net Fixed Assets includes Goodwill on Consolidation

Key Ratios(Consolidated)


Q3 FY2009(%)

Q3 FY2008 (%)

9M FY2009 (%)

9M FY2008 (%)

PBDIT Margins 4.9 10.0 7.8 8.7

PBT Margins ** 0.0 ^ 5.4 3.7 4.2

PAT Margins 0.6 4.0 3.0 2.8

ROCE* 3.4 10.6 7.8 10.0

* On Average Capital Employed

** Incl. exceptional items but excl. prior period and extraordinary items

^ Less than 0.05%

Segment-wise Contribution to Financials – Q3 FY2009

172

288.6135.2

50.7

42.7

45.861.2

46.7

Revenue (Rs. crore)

C HEMIC ALS ANIMAL FEEDs VEGO ILS ESTATE & PRO PERTY DEVELO PMENTHO USHO LD INSEC TC IDES BEVERAGES & FO O DS FINANC E & INVESTMENTS O THERS

PBIT

Particulars Rs. croreEstate & Property development

9.4

Household Insecticides 9.0Finance & Investments 45.8Chemicals -24.4Animal Feeds 5.0 Beverages & Foods -2.3Veg Oils -1.0Others -8.8


Segment-wise Contribution to Financials – 9M FY2009

616.4

842.3447.8

137.5

12762.3

263.2

178.7

CHEMICALS ANIMAL FEEDs VEGO ILS ESTATE & PRO PERTY DEVELO PMENTHO USHO LD INSECTCIDES BEVERAGES & FO O DS FINANCE & INVESTMENTS O THERS

Revenue (Rs. crore) PBIT

Particulars Rs. croreEstate & Property development

98.9

Household Insecticides 20.8Finance & Investments 62.3Chemicals -11.3Animal Feeds 14.6 Beverages & Foods -3.7Veg Oils 0.5Others 28.0



Performance HighlightsMajor Subsidiaries, JVs and Associates

Business Structure

GIL

Own business

Chemicals, Estate Mgmt. Vegoils, Finance & Invt.

Shareholding %

Godrej Agrovet

75.2%

Godrej Consumer

20.0%

Godrej Hershey

43%

Godrej Properties

80.3%

Nutrine

100%

Godrej Sara Lee

20%

Godrej Gokarna Oil Palm

48%

Golden Feed

Products Ltd. 100%

Other Investments

KeylineRapidol

Godrej SCA

Godrej Hicare

76.8%

Godrej Tyson

Foods Ltd. 49%

Various SPVs

Nature’s Basket

Ltd. 100%

Godrej Oil Palm

Plantation Ltd. 80%

100% subsidiaries in

India, Bangladesh

and Sri Lanka


InvestmentsCompany Business Investment at

cost (Rs. Crore)

Holding(%)

Godrej Consumer Products

FMCG, Personal and Household Care Products

447 20.1

Godrej Properties Real Estate and Property Development 185 80.3

Godrej Agrovet Animal Feed, Agri-inputs, Poultry, Oil Palm & Rural & Urban Retailing

164 75.2

Godrej Sara Lee Household Insecticides 47 20.0

Godrej Hershey Food, Beverages and Confectionary 177 43.0

Godrej International International Trading 17 100.0

Godrej Hicare Pest Management Services 3 76.8%

Others (CBay, Avesthagen, Verseon, Compass etc)

- 98 -

Total 1138 -


Other Investments (major)

Company Business Investment at cost (Rs.

Crore)

Holding(%)

CBaySystems Holdings Limited

Medical transcription, Accounts Processing and Patient Financial Services

38 5.3

Verseon Corporation Computer Aided Drug Discovery 15 8.7

Avesthagen Limited Bio – Technology 11 4.4

Boston Analytics Inc KPO 7 18.6

Compass BPO Limited

BPO 2 20.7

Others 25


Overview: The chemicals division is the market leader in India in Oleo – Chemicals and Surfactants. It exports to over 65 countries and supplies to a wide range of industries including cosmetics, rubber, PVC, pharmaceuticals, etc.

Key Highlights• Specialty Fatty Acid business for the Q3 & 9M up by 430% & 337% respectively.

• Sales of higher end surfactants (SLS/SLES) for Q3 & 9M increased by 343% & 401% respectively.

• Exports increased by 25% for 9M 2008-09

• Exporting to more than 65 countries.

• Exports account for 44% of the division’s turnover.

Financial Performance

Revenue growth of 23% (9M 2008 – 09 : Rs. 616 cr.; 9M 2007 – 08 : Rs. 503 cr.)

The performance of the business was significantly affected both on cost and margin front by unforeseen fluctuations in the commodity prices and rupee-dollar exchange rate, curtailment in the supplies of natural gas to the factories, and depressed demand owing to global recession and economic downturn.

Godrej Chemicals Division (Oleo-chemicals & Surfactants)


Overview: Diversified agribusiness including animal feeds, oil palm plantation, poultry and agricultural inputs.

Financial Performance

Consolidated 9M revenue growth of 15% from Rs. 953 Crore to Rs. 1099 Crore.

Animal Feed: GAVL is the leading manufacturer of animal feeds in India.

Highlights of the Business

• This business includes the production and sale of compound feed for cattle, poultry, shrimp and fish.

• New products launched :

– premium high fat high milk yielding compound feed re-launched under the Brand “Bovino”.

– 10% starter and 10% finisher concentrate introduced in broiler feed for small broiler integrators under the name “HPBC”.

• GAVL operates through 40 production units across India.

• This business undertakes R&D at its dedicated centre. Innovative animal feed products include “Godrej Crumbro” and “Godrej Bypro”.

Godrej Agrovet (GAVL) (Animal Feeds, Agri Inputs, Poultry, Oil Palm & Rural Retailing)


Oil Palm: GAVL is India’s largest crude palm oil producer. The Oil Palm business operates on a command area model, with State Governments allocating specific territories to corporates for the development of oil palm plantations. Growers are required to sell the entire production of fresh fruit bunches at a pre-determined price linked to output price set by the Government.

Highlights of the Business

• Currently GAVL have been allocated territories with a potential of over 100,000 hectares of palm plantations and have recently been awarded additional areas in Gujarat. GAVL also has operations in Andhra Pradesh, Goa, Mizoram, Orissa, Tamil Nadu, and Karnataka.

• The size of the allotments reflects the strengths of GAVL, including a strong brand, reputation amongst farmers and excellent service.

• An integrated process: GAVL makes complete use of the fruit bunch. Waste from the oil extraction process is used as fuel to power plants and factories.

• Oil palm plantations have a three year gestation period. Currently multiple projects have been initiated and are at different stages of development. As greater acreage under development achieves production maturity, the business is expected to grow exponentially.




Poultry: GAVL has a fully integrated poultry business that covers the entire value chain from breeding, hatching, and rearing of broilers. GAVL is also involved in a joint venture with Tyson foods which focuses on the front end of the production process including processing and marketing chilled chicken. This is delivered through the brand “ Godrej Real Good Chicken” and marketing of ready to cook range through the brand “Godrej Yummiez”.

Agri inputs: GAVL has a well established Agri inputs business covering plant growth promoters, organic manure mix, pesticides and other innovative agri input products.


Overview: GPL is one of the leading real estate development companies in India. The Company focuses on residential, commercial and township developments. As per the Draft Red Herring Prospectus dated May 28th 2008 filed with SEBI, GPL has real estate development projects in 11 cities in India which are Mumbai, Pune, Bangalore, Kolkata, Hyderabad, Chandigarh, Greater Noida, Ahmedabad, Mangalore, Chennai and Kochi.

Business Strategy: GPL employs a three pronged business strategy as follows:

• Joint ventures with land owners which are either on a developable area, profit or revenue sharing basis.

• Selective buying of land, developing and selling property.

• Joint ventures with group companies. GPL has signed MOUs with group companies under which GPL shall develop their lands situated in various parts of India.

This business model enables GPL to undertake more projects without having to invest large amounts of money towards purchasing of land.

GIL currently holds 80.3% equity in GPL.Note: “GPL is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Draft Red Herring Prospectus with SEBI. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the respective websites of the BRLMs at www.icicisecurities.com andwww.kotak.com.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” of the aforementioned Draft Red Herring Prospectus.”

Godrej Properties (GPL)(Real Estate and Property Development)


Overview: Leading manufacturer of soaps and hair colour categories, and owns various well known brands, such as Cinthol, Fairglow, No. 1, Ezee, Colour Soft and Renew.

Key Highlights: GCPL continues to be the second largest toilet soap player.

• Soap sales grew by 22% to Rs. 164 crore from Rs. 134 crore during the quarter.

• Launched new range of product :

– New variant of soap “Godrej No. 1 – Strawberry and Walnut” for the first time a combination of strawberry, walnut and milk cream.

• Hair colorants sales up by 14% to Rs. 57 crore from Rs. 50 crore during the quarter.

• Third Interim dividend declared – 100% taking the total to 250% for 9M 2008-09.

• Ranked 6th in the ‘Best Companies to Work for in India’ survey conducted by Mercer Consulting and Business Today.

Financial Performance:

• Consolidated 9M 2008-09 revenue increased by 26% to Rs. 1050 crore from Rs. 833 crore.

Godrej Consumer Products (GCPL)(FMCG – personal and household care)


Godrej Hershey Limited (GHL) (Foods, Beverages, confectionery businesses)

Overview: Production and sale of fruit pulp, tomato puree, fruit juices, nectars and drinks, other beverages and confectionary products and sale of refined vegetable oils and vanaspati (hydrogenated vegetable oil).

Key Highlights:

The new 'Maha Choco’ candy was rolled out with media campaign featuring Brand Ambassador, M S Dhoni which has received good response from consumers. GHL has also upgraded the packaging and presentation of the confectionery to make it look more attractive.

Q3 & 9M FY2009 Performance Highlights:

• Confectionery business sales grew by 21% and 23% respectively.

• Juice business sales up by 183% and 109% respectively.

• Drinks business sales increased by 54% & 31% respectively.

• Sofit segment sales increased by 83% and 87% respectively.

Financial Performance:

• Q3 FY2009 revenue growth of 15%

• 9M FY2009 revenue growth of 20%


Godrej Sara Lee (GSLL)(Household Insecticides, Hair care, Air care, Shoe care & Surface care)

Overview: Household insecticides business which includes the production and sale of household insecticides, Air care, Shoe care & Surface care.

Key Highlights

• Goodknight aerosols launched during the quarter

• Aerosols segment grew by 16% in both Q3 and 9M 2008-09

• Coils segment grew by 21% in Q3 2008-09 and 12% in 9M 2007-08

• Good Knight Brand sales up by 18% & 9% in Q3 & 9M respectively.

Financial Performance :

• Q3 & 9M 2008-09 revenue growth of 17% and 21% respectively.



Thank You

Some of the statements in this communication may be 'forward looking statements' within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include changes in industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.

Documents

No Slide Title · Segment-wise Contribution to Financials – 9M FY2009 616.4 447.8 842.3 137.5 127 62.3 263.2 178.7 CHEMICALS ANIMAL FEEDs VEGOILS ESTATE & PROPERTY DEVELOPMENT