Godrej Industries Limited Regd Office: Pirojshanagar, Eastern Express Highway, Vikhroli, Mumbai 400 079 Results communication –Q1 FY 2007-08 Mumbai, July 27, 2007 Q1 FY 2007- 08 PBT up 87%; PAT grows 97% 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 June 2007. Highlights Q1 FY 2007-08 • Q1 FY 2007-08 Total Income increases by 11% • PBDIT higher at Rs. 47.2 crore; up 51% • PBT increases by 87% to Rs. 31.6 crore • Net Profit at Rs. 32.5 crore; higher by 97% • EPS Q1 FY 2007-08 at Rs.4.4 (annualized) • Ranked Fourth in delivering the greatest Total Shareholder Returns (TSR) (146% per annum) for the period 2002-07 in the large cap-segment, in a survey published by Businessworld in June 2007 Announcing the results, Mr. Adi Godrej, Chairman, Godrej Industries Limited said, ‘‘The results for the quarter reflect the company’s ability to deliver and sustain growth. Our continued focus on strategic investments in group companies and our diversified portfolio is yielding attractive returns. Godrej Industries was ranked 4th in the large cap- segment in delivering the greatest Total Shareholder Returns over the last 5 years. 1 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. This quarter our joint venture Godrej Sara Lee acquired Sara Lee Household and Body Care in India and Sri Lanka. This acquisition adds strong profitable brands like Kiwi and Brylcreem to Godrej Sara Lee’s portfolio. We will continue our focus on our businesses and strategic investments and I expect them to significantly add to shareholder value, going forward.’’ Business and operational perspective Chemicals Division The Chemicals division continues to be the market leader in India in Oleo – chemicals and Surfactants. In Q1 FY 2007-08, the chemicals division contributed 76% to the total revenue of the company. The division has shown a revenue growth of 11% for Q1 2007- 2008 at Rs. 152 crore as against Rs. 138 crore in the previous quarter. The division exports to more than 60 countries in the world and its export sales grew by 43%. The division received “Outstanding Exporter of the year” award in the Chemicals category from CNBC-TV18 and DHL. 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 50% in Q1 2007-08. GAVL launched its in-house developed and the country’s first selective Herbicide for cotton. GAVL also launched eight new rural retailing ‘‘Aadhaar” stores in this quarter, taking the total to 47 stores. ‘‘Aadhaar’’ stores retail agri products, food & grocery items, FMCG products, consumer durables, apparels, etc. GAVL also opened its first petro format Aadhaar Express in Gujarat recently. GAVL now has 8 ‘‘Nature’s Basket’’ outlets retailing fresh fruits, vegetables & herbs, speciality foods, etc., in Mumbai. Godrej Properties Limited (GPL) 2 GPL is India’s first ISO certified real estate developer. It has recorded a revenue growth of 85% in Q1 2007-08 and its PBT grew by 109% during the quarter. 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 2.4 crore sq. ft. under development. It has amongst its projects, the prestigious ‘‘Planet Godrej’’ - five 50 storeyed towers located in close proximity to Mahalaxmi race course and Willingdon Club in Mumbai, which won the Pinnacle Award (2006) of Zee Business as the ‘‘Best Upcoming Real Estate Project’’ in India. Godrej Global Solutions Limited (GGSL) The ISO-27001 and ISO-9001 ITES company remains focused largely on the Healthcare, Finance & Accounts BPO domains. The company has clocked revenue growth of 9% in Q1 2007-08. It has ramped up its Indian operations in Chennai and Navi Mumbai for all the new and existing clients. 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 recorded a revenue growth of 11% in Q1 2007-08. This joint venture with Hershey, USA provides the business a strategic long term partner with global brands & international technology. Godrej Consumer Products Limited (GCPL) GCPL continues to be the second largest toilet soap manufacturer. The company was ranked third and was the only FMCG company amongst the retail, FMCG and durable sector companies in the mid-cap space for delivering the Total Shareholder Returns (TSR) (62% per annum) for the period 2002-07, in a survey published by Businessworld in June 2007. GCPL launched various new products such as Erasmic shave gel, Godrej No. 1 shampoo, Fair Glow face wash during the quarter. 3 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 17% in Q1 2007-08 and PAT growth of 30% in Q1 2007-08. Efficiency improvement initiatives started in the previous year have yielded results during the quarter. During the quarter, 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”. -----Ends----- 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. 4 .