Godrej Industries Limited Regd Office: Pirojshanagar, Eastern Express Highway, Vikhroli, 400 079

Results communication –Q2 FY 2007-08 Mumbai, October 26, 2007

Q2 FY 2007- 08 PBDIT up 45%; PBT up 68%; PAT grows 78% Fast Forward into the future.

Godrej Industries Ltd., a diversified Indian company with several business interests ranging from chemicals, processed foods and beverages, animal feeds, poultry, rural retailing, pest management services, property development, agri-products to branded tea, confectionery, household insecticides and BPO among others, today announced its financial results for the quarter ended 30th September 2007.

Highlights Q2 FY 2007-08

• PBDIT higher at Rs. 27.6 crore; up 45% • PBT increases by 68% to Rs. 21.9 crore • Net Profit at Rs. 22.6 crore; higher by 78% • EPS Q2 FY 2007-08 at Rs.3.1 (annualized)

Announcing the results, Mr. , Chairman, Godrej Industries Limited said, ‘‘The results for the quarter and half year reflect the company’s ability to deliver and sustain growth. Our Oleo Chemicals business has registered an impressive performance in the second quarter of the current year.

Our subsidiary, Godrej Properties continues its accelerated growth in the real estate market and is fast developing multiple projects in cities like Mumbai, Bangalore, Pune, Kolkata and Hyderabad. Godrej Properties has also entered into MOUs with many group companies to develop their real estate holdings.

We will continue the focus on our businesses and strategic investments and I expect them to considerably add to shareholder value, going forward.’’

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Business and operational perspective

Chemicals Division

The Chemicals division continues to be the market leader in India in Oleo – chemicals and Surfactants. In Q2 FY 2007-08, the chemicals division contributed 87% to the total revenue of the company. The division has shown a revenue growth of 26% for Q2 2007- 2008 at Rs. 167 crore as against Rs. 133 crore in the corresponding previous period and a PBIT growth of 879% for H1 2007-08. The division exports to more than 60 countries in the world and its export sales grew by 94%.

Overview of Major Subsidiaries and Associate Companies

Godrej Agrovet Limited (GAVL)

GAVL is in the business of animal feeds, agri inputs, poultry, oil palm & rural retailing. The company recorded revenue growth of 25% in H1 2007-08.

GAVL launched two new rural retailing ‘‘Aadhaar” stores in this quarter, taking the total to 49 stores. ‘‘Aadhaar’’ stores retail agri products, food & grocery items, FMCG products, consumer durables, apparels, etc. GAVL also opened its second petro format Aadhaar Express in Kashti , . GAVL revamped its Warden Road ‘‘Nature’s Basket’’ outlet by positioning it as ‘‘Authentic World Food’’. This store has introduced new product categories like wine, cheese, cold-cuts, processed foods in addition to its existing portfolio of fresh fruits, vegetables & herbs and specialty foods.

Godrej Properties Limited (GPL)

GPL is India’s first ISO certified real estate developer. It has recorded a revenue growth of 55% in H1 2007-08 and its PBT grew by 99% during the period. GPL specializes in developing residential and commercial properties, malls and IT parks and is rapidly extending to major cities and regions across India. It now has a total area of over 2.3 crore sq. ft. under development.

It acquired a Kolkata based Company --- Happy Highrises Ltd, giving it a potential of developing 3.3 million sq. ft. for residential and commercial properties. It has also singed an MOU with Lawkim Ltd. (a Company) for development of IT project on

2 approx 3.5 acres of land at Thane. It has signed MOUs with the major Godrej Group Companies to develop their real estate holdings in different regions.

Godrej Global Solutions Limited (GGSL)

The ISO-27001 and ISO-9001 ITES company remains focused largely on the Healthcare, Finance & Accounts BPO domains and has a headcount capacity of more than 800 in its centres at Navi Mumbai and Chennai.

Godrej Hershey Foods & Beverages Limited (GHFBL) (formerly Godrej Beverages & Foods Limited)

GHFBL markets juices and fruit drinks under brands Xs and Jumpin; soyamilk based drinks under the Sofit brand; edible oil brands like Cooklite, packaged tea under the brand name Godrej Tea and Nutrine confectionery brands like Mahalacto, Assay, Superstar, Aamras, Gulkand, etc. GHFBL launched a premium variant ‘‘Super Mahalacto. Post the joint venture with the Hershey Company, USA, GHFBL expects to launch some of the Hershey products in India and leverage their technological and marketing capabilities.

Godrej Consumer Products Limited (GCPL)

GCPL continues to be the second largest toilet soap manufacturer. GCPL has acquired Godrej Global Mideast FZE which will strengthen their presence in the UAE and other GCC countries and provide them with a ready platform to introduce their products in those markets. GCPL has reported a revenue growth of 18% in Q2 2007-08, PBIDT growth of 21% and PAT growth of 20% in Q2 2007-08. GCPL has also declared a second interim dividend of 75%. Its consolidated EPS is 6.6 (annualized).

Godrej Sara Lee Limited (GSLL)

GSLL maintains its position as the market leader in the Household Insecticides category. GSLL has reported a revenue growth of 36% in Q2 2007-08 and PAT growth of 79% in Q2 2007-08. Efficiency improvement initiatives started in the previous year have yielded results during the quarter.

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The company acquired 100% of the equity shares of independent business units of JV partner Sara Lee Corporation – Sara Lee Household & Body Care India Pvt. Ltd and Sara Lee Household & Body Care Lanka Pvt. Ltd. This acquisition gives GSLL an entry into the Hair care, Shoe care and Surface care categories with strong brands viz. “Brylcreem”, “Kiwi” and “Kiwi Kleen”.

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About Godrej Industries Limited

Godrej Industries Ltd. (GIL) largely operates in the business of oleo-chemicals, edible-oils, fats, processed foods, finance & investments and medical diagnostics. It has substantial interest in several industries including animal feeds and agri-products, poultry, rural retailing, property development, household insecticides, pest management services, branded tea, IT and BPO etc. through its subsidiaries and associate companies.

The Chemicals Division of Godrej Industries Ltd. is a leading manufacturer of oleo chemicals like fatty acids, glycerin and fatty alcohols, and surfactants like alpha olefin sulphonate. The Chemicals Division has manufacturing facilities at Vikhroli, Mumbai and Valia, Gujarat.

The Veg Oils division of Godrej Industries manufactures edible oils, vanaspati and bakery fats. The division has a state-of-the-art manufacturing facility at Wadala in Mumbai. The plant is equipped with the best of modern equipment for the processing and packaging of a wide variety of food products.

For further Information please contact: Anuradha Roy Chowdhury Anil Mathews Godrej Industries Ltd Perfect Relations Tel.: +91 22 2519 4758 Tel.:+91 9820480317 Fax: +91 22 2518 8040 Fax: +91 22 24384564 e-mail: [email protected] e-mail: [email protected]

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.

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