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

Results communication –Q2/ H1 FY 2006-07

Mumbai, October 30, 2006

Godrej Industries announces Q2/ H1 FY 2006-07 financial results

H1 FY 2006-07 PAT up 33% to Rs. 29.2 crore

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 2006.

Highlights

ƒ H1 FY2006-07 PAT up 33% to Rs. 29.2 crore ƒ H1 FY2006-07 PBDIT up 9% to Rs. 59.4 crore ƒ H1 FY2006-07 EPS at Rs. 2.00 (annualized) ƒ Q2 FY2006-07 PAT maintained at Rs. 12.6 crore ƒ Equity Shares of face value Rs. 6 sub-divided into 6 shares of Re 1/- each w.e.f. Sep 1, 2006 ƒ EPS in Q2 FY2006-07 is at Rs 1.7 (annualized) post share split

Commenting on the Company's performance for H1 FY2006-07, Mr. , Chairman, Godrej Industries Limited said, "Godrej Industries has reported an increase of 33 percent in Profit After Tax at Rs. 29.2 crore. The Chemicals business has contributed 66% to the total revenue of the company, though the margins are under pressure owing to industry cyclicality. The major subsidiaries and associates have been performing very well with Godrej Beverages and Foods launching a slew of new products and both and Godrej Properties growing their respective businesses through JVs, strategic alliances and launch of new projects.

Going forward, I expect the major subsidiaries and associates to continue on this strong growth curve and add significant value to Godrej Industries’ portfolio.”

Business and operational perspective

Chemicals Division

• The chemicals division has shown a revenue growth of 3.5% for H1 2006- 07 at Rs. 271 crore compared to H1 2005-06 at Rs. 262 crore. • Fatty alcohol has contributed 43 percent of the total sales in Q2 FY2006-07. • Industry cyclicality, pressure on margins in Fatty Alcohol, expenditure on scheduled maintenance shutdown and absence of production for 3 weeks in Q2 has negatively impacted the financial results of the division. • Initiatives taken to strengthen international distribution, supply chain and CRM.

Overview of Major Subsidiaries and Associate Companies

Godrej Agrovet Limited (GAVL)

The company is in the business of animal feeds, agri inputs, poultry, oil palm & rural retailing.

• Q2 FY 2006-07 revenue growth is at 12%

Godrej Agrovet has committed strategic investments in Q2 2006-07:

• An agreement with the Gold Coin Group, Singapore has been formed to make a 49:51 JV named Godrej Gold Coin Aquafeed Limited. This company will handle the Godrej, Higashimaru & Gold Coin brands in • MOU has been signed with IJM Plantations, Berhad, a listed Malaysian company, to promote oil palm plantation in India.

The company’s rural retailing initiative “Aadhaar”, a complete solution for the agri sector, is increasing the number of rural stores. Two new Aadhaar centres have been set up this quarter.

Godrej Beverages & Foods Limited (GBFL)

• GBFL markets juices and fruit drinks under brands Xs and Jumpin; soyamilk based drinks under the Sofit brand; and edible oil brands like Cooklite, and packaged tea under the brand name Godrej Tea. • GBFL has acquired 100 percent stake in ‘Nutrine Confectionery Company Pvt. Ltd’ (Nutrine), the market leader in confectionery in India. • Nutrine’s portfolio includes strong sub-brands like MahaLacto, Koko Naka, Milk Eclairs, Honey Fab, Aam Ras, Aasay and Gulkand • GBFL has recorded a branded sales increase of 17% yoy. • GBFL and Nutrine have launched a slew of new products: • “Smart Cook ” tomato puree • “Maha Mahalacto” candy in pillow pack • “Super star” range of toffees

Godrej Properties Limited (GPL)

• GPL has recorded a revenue growth of 31% in H1 2006-07 • PBT growth in H1 2006-07 is 84% • GPL has declared an interim dividend of 186%

The company has launched new projects in Hyderabad and Kolkata. It is developing an IT park in Hyderabad covering an area of about 60 lac sq. feet. In Kolkata it is developing a mall of 4 lac sq. ft area.

The development of two IT Parks in Kolkata of over 35 lac Sq. ft. in the Salt Lake area is fast progressing.

Total area under development by GPL is about 2 crore sq.ft.

Godrej Global Solutions Limited (GGSL)

The company operates in the IT/ITeS sector with domain expertise in Healthcare, Finance & Accounts. It has ramped up operations at Chennai and Navi Mumbai centres. The headcount capacity has increased to 780.

Godrej Consumer Products Limited (GCPL)

• Consolidated Sales Revenue up 48% in Q2 2006-07 • Q2 FY PBDIT up 28% • Net Profit up 11% at Rs. 31 cr. • EPS (annualised) improves to Rs. 5.50 from Rs. 4.90 • H1 2006-07 Net Profit at Rs. 65 crore up 19%

GCPL completes acquisition of Rapidol, South Africa giving it an entry into the large and fast growing African Hair colour market. GCPL continues to be the second largest toilet soap manufacturer in India.

Godrej Sara Lee Limited (GSLL)

GSLL is the market leader in the Household Insecticides segment.

• For H1 2006-07 the company recorded a revenue growth of 21% and a profit growth of 32%. • In Q2 FY 2006-07 GSLL paid an interim dividend of 88%.

Keeping in line with its innovative approach, the company has launched new unique products:

• “Seek and Kill” Aerosol under the brand “HIT”. • Ambipur Home Electric perfume and Ambipur Aerosol – in the Home fragrances category.

As a responsible corporate citizen in the Household Insecticides industry, GSLL has initiated a special drive to create awareness on the viral diseases of Dengue and Chikungunya and the preventive measures, across the country.

About Godrej Industries Limited

Godrej Industries Ltd. (GIL) largely operates in the business of oleo-chemicals, veg-oils and bakery fats, finance & investments, estate and medical diagnostics. It has substantial interest in several industries including animal feeds and agri- products, poultry, rural and urban retailing, property development, household insecticides, processed foods and beverages, confectionery, 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 alcohol, and surfactants like alpha olefin sulphonate. The Chemicals Division of the Company 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 Fauzan Ahmed Godrej Industries Ltd Perfect Relations Tel.: +91 22 2519 4758 Tel.:+91 22 24367943 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.