` Godrej Consumer Products Ltd. August 19, 2016 Dear Sirs, Sub ...

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` Godrej Consumer Products Ltd. Regd. Office: Godrej One, 4th Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (E), Mumbai - 400 079, India. Tel : +91 Fax : +91 Website : www.godrejcp.com CIN : L24246MH2000PLC129806 August 19, 2016 The Bombay Stock Exchange Limited Corporate Relations Department 1st Floor, Rotunda Bldg., P.J. Towers, Dalal Street, Mumbai 400 023. Scrip Code : 532424 Fax Nos : 22723121/ 22722037 / 22722041/ 22722061/ 22722039 /2272 3719 The National Stock Exchange of India Ltd Exchange Plaza, 4 th Floor, Bandra-Kurla Complex, Mumbai 400 050 Fax No 26598237/38 Dear Sirs, Sub: Presentation to Investors We enclose herewith a presentation which is self-explanatory. For Godrej Consumer Products Limited Ramesh Iyer Dy Company Secretary `

Transcript of ` Godrej Consumer Products Ltd. August 19, 2016 Dear Sirs, Sub ...

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`

Godrej Consumer Products Ltd. Regd. Office: Godrej One,

4th Floor, Pirojshanagar,

Eastern Express Highway,

Vikhroli (E), Mumbai - 400 079, India.

Tel : +91

Fax : +91

Website : www.godrejcp.com

CIN : L24246MH2000PLC129806

August 19, 2016

The Bombay Stock Exchange Limited Corporate Relations Department 1st Floor, Rotunda Bldg., P.J. Towers, Dalal Street, Mumbai 400 023.

Scrip Code : 532424 Fax Nos : 22723121/ 22722037 / 22722041/ 22722061/ 22722039 /2272 3719

The National Stock Exchange of India Ltd Exchange Plaza, 4th Floor, Bandra-Kurla Complex, Mumbai 400 050

Fax No 26598237/38

Dear Sirs,

Sub: Presentation to Investors

We enclose herewith a presentation which is self-explanatory.

For Godrej Consumer Products Limited

Ramesh Iyer Dy Company Secretary

`

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GCPL AFRICA

August 2016

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Disclaimer

This release / communication, except for the historical information, may contain statements, including the words or phrases

such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal,

projects, should’ and similar expressions or variations of these expressions or negatives of these terms indicating future

performance or results, financial or otherwise, which are forward looking statements. These forward looking statements are

based on certain expectations, assumptions, anticipated developments and other factors which are not limited to risk and

uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market,

consumption level, ability to maintain and manage key customer relationship and supply chain sources and those factors which

may affect our ability to implement business strategies successfully, namely changes in regulatory environments in India and

overseas, political instability, change in international oil prices and input costs and new or changed priorities of the trade. The

Company, therefore, cannot guarantee that the forward looking statements made herein shall be realised. The Company, based

on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such

forward looking statement contained herein or make written or oral forward looking statements as may be required from time to

time on the basis of subsequent developments and events. The Company does not undertake any obligation to update forward

looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances

after the date hereof.

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Overview

Dry Hair Extensions

Wet Hair Care

Household Insecticides

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GCPL Africa

Dry Hair Extensions

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Types of dry hair extensions

Braids Weaves Dreads WigsPonytail

Drawstrings

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*Source: Internal assumption based on size of female population, penetration and usage frequency

3%

16%

22%

37%

Braids Weaves Curls Human Hair Wigs

Dry Hair Extensions market overview

Salience

22%

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Deep Dive – GCPL Dry Hair Extensions

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Leading pan-African brand with astrong, trusted heritageand deep understanding of ethnic hairculture

Used by over 100 millionAfrican consumers

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How did we

do it?

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Upfront

investments and

strong

in-market execution

Focus on

innovation

led growth

Leveraging

digital

Operational

excellence

and agility

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Fashion inspiration Trade Support Salon Engagement Brand Building

• Brand exposure to over 6

major media incl. influencers

and consumers: +1000

people in 4 days

• R1.2m free media coverage

(PR)

OBJECTIVE:

Build mega brand effect and

credible fashion inspiration

• Quarterly promos in +200

traditional retailers nationwide

• Activations create hype to

engage with consumers and

stylists

OBJECTIVE:

Create brand awareness and

drive sales

OBJECTIVE:

Build professional advocacy

OBJECTIVE:

Build brand awareness

Upfront investments and strong in-market execution

• 600+ stylists upskilled and

empowered in workshops

• Branded salons

• Branded 450 salons in

Gauteng and KZN

• Branded taxis and delivery

vehicles

• Media and digital initiatives

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Upfront investments and strong in-market executionCompetitive investments in brand building

Soweto Fashion Week

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• Mercedes Benz Fashion Shows

• Ethnic Hair Shows

• Cape town Fashion Show

• Durban Fashion Show

Upfront investments and strong in-market execution

FRIKA – fashion focussed

Competitive investments in brand building

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Upfront investments and strong in-market executionInnovative, cost effective mass communication and brand building

Branded truck and trailers create mobile billboards covering almost 200,000 km annually

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Upfront investments and strong in-market executionExcellence in in-store execution

In-store programmes

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Upfront investments and strong in-market executionLeading on ground consumer engagement

On ground activations – workshops, product demos

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Upfront investments and strong in-market executionStrengthening salon engagement

Academy programmes

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Upfront investments and strong in-market executionStrengthening salon engagement

Workshops and product demos

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Upfront investments and strong in-market executionEffective communication

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Focus on NPD

Michelle O

Mpume Galaxy

FRIKA Ombre FRIKA Grey Braids

Focus on innovation led growth

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Human Hair Blend

Focus on innovation led growth

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FRIKA Ombre FRIKA Grey Braids

Iris Weave Rose Weave

Yaki Ombre Styles

Focus on innovation led growth

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Leveraging digital

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Social strategy - Facebook

Leveraging digital

25Social strategy - Twitter

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New look sneak preview

Leveraging digital

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Partnering with

external consultants

on TCO Project

Identifying the

distribution Synergies

by integrating the

businesses

Implementation of

S&OP process

helped in inventory

reduction and fill

rate

Value

engineering on

product packaging

Manpower

optimization in RSA

and Mozambique

factories

Productivity

improvement

& wastage

reduction in

factories

Alternate sourcing

of flexible

packaging material

Cost savings (USD m)

FY15 FY16

1.1

1.75

Improvement in customer fill rates

April-15 Mar-16

Δ~10%

Making our global supply chain best-in-class

Operational excellence and agility

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PP fibre manufacturing facility with best in class productivity and yield per kg of PP resin

Good infrastructure for road transport and sea ports

Well connected to Sub Saharan African countries by sea

Stable source and availability of PP resin

Backward integration

Operational excellence and agility

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Plans to further expand capacities

Operational excellence and agility

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Hair care for women of African origin - the opportunity

GCPL Africa

Wet Hair Care

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The world has about 1 billion people of African origin, predominantly

located in Sub Saharan Africa, US and the Caribbean

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The hair care category for women of African descent can be divided

into two broad segments - Dry Hair Care and Wet Hair Care

Kinky

Unmanageable

Weak

Solution Desired

Transform looks

Prevent damage to hair

Nourishment for scalp

and hairRelaxers

Maintenance

Styling

Shampoos*

Natural Hair

Dry Hair Care

Wet Hair Care

Braids Weaves

Note: *Shampoos includes only brands specifically targeted to ethnic hair

Value Added Categories

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The Hair Care category for women of African origin holds significant

potential - unique, fragmented, but estimated to be $ 4.5 billion, globally

$0.6bn

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The Wet Hair Care category

Relaxers are used to make curly

hair more manageable through

chemically straightening

Styling products nurture hair and

create new textures, construct

shapes and provide flexible hold

and shine

African hair, which is fragile by

nature, requires extensive

maintenance; maintenance

products (including conditioners

and special treatment) keep hair

hydrated and the scalp well

nourished

African women use both

mainstream shampoos, as well

products specifically designed for

their hair

Image Source: Google Images

Relaxers Styling Maintenance Shampoos

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Key markets (Nigeria, Kenya, SA)

contribute to ~40% of the total category

Value/Mass segment is dominated by local players

Premium space is dominated by imported players

Relaxers and maintenance are the biggest sub categories

Africa

13%

20%

32%

35%

Relaxers Maintenance Shampoo Styling

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The average age of consumer using wet

hair products is steadily coming down

More consumers are coming into the category

than exiting fuelling organic growth

African consumer in getting younger and growing in size

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SON portfolio gives us a wide variety of choices to adapt to

African consumer

Premium brands

Salon brand

Kids brands

Value brand

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GCPL Africa

Household Insecticides

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The problem of pests is more serious in Sub-Saharan Africa

644,000 deaths due to Diarrhoea

568,000 deaths due to Malaria (2012)

Source : BBC, World Malaria Report, WHO 2012

Diarrhoeal diseases & Malariaare among top 5 killers in Africa

28,575 reported cases

11,313 deaths due Ebola (Oct 2015)Vs.

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And their impact beyond just spreading diseases…

Mosquitoes Roaches Rats

Causes malaria and even death

Disturb sleep & peace of mind

Bites causes itch & allergies

Filthy, leave faeces everywhere, causes

diseases

Indiciate unclean house and

surroundings, causes social

embarrassment

Considered most difficult to get rid off

Causes diseases

Destroy food, clothes & furniture

Indicate poor living conditions

leading to social embarrassment

Source : U&A study, Nigeria (quantitative research)

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None of existing formats solve consumers’ concerns of

safety and convenience

Format Positives Limitations How is it used

Instant Action

Affordable

Lasts for 8 hrs

Mostly sold loose

Distributes free/

at very low cost

Toxic smell forcing people to stay out

Cause cough, irritation

Inconvenient regimen

Expensive

Smoke, ash

Work only against mosquitoes

Suffocating

Limited coverage

1-2 times a week

Stay out for at least 30 mins post spraying

Supplemented with nets/coils

In evenings – daily or once in 2 days

May leave room for some time

Supplemented with nets

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OUR HI PLANS

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Drive mosquito category consumption

develop and own the non mosquito market

Innovation

–products developed

for African markets

Distribution

–build on our existing,

strong infrastructure

Supply Chain

–enable competitive

cost structure

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Innovation – products developed for African markets

Affordable

– lower cost per night relief

Effective yet safe

–new gen actives

Profitability

– differentiated high margin formats

– innovative formats

Easy to use

– innovative formats

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Distribution – build on our exisiting, strong infrastructure

Build distribution & penetration

beyond port cities

Drive direct coverage of key trade

channels : groceries, OTC

Leverage our salon reach program

for low-cost sampling and cross-

sell

Strong in market execution

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Supply chain – enable competitive cost structure

Localised

manufacturing hubs

Leveraging scale to derive

procurement cost synergies

Building on our existing

supplier relationships

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Thank You