16 February 2011

GODREJ CONSUMER: Key TAKEAWAYS - COMPANY MEETINGS : Kotak Sec

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Key takeaways
􀁠 Category growth expectations – soaps ~8%, household insecticides ~20% and hair color
~15%. GCPL likely to grow ahead of market growth in soaps and household insecticides
and in line with market growth in hair color.
􀁠 The company is having forward covers for palm oil till April/May 2011. Full impact of
inflation in palm oil will likely be seen in 2QFY12E. Company has implemented a price
increase of 4% in soaps in January 2011.
􀁠 The company is in the process of appointing Mr. Vivek Mathur as Head of domestic
business (he has earlier worked with GHPL and Godrej Hershey’s). GCPL will also appoint
a new Head for international business.
􀁠 The company is likely to revisit the marketing mix for hair color in India in 1QFY12E.
􀁠 It is targeting organic growth of 15-20% CAGR and inorganic growth of ~10% CAGR.

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