MUMBAI: Inspired by the freedom movement and the call for Swadeshi by legendary freedom fighter Dadabhai Naoroji, Ardeshir Godrej established the Godrej Group over 100 years ago.
The first product manufactured by the group was locks. While two Godrej Group companies that manufacture soaps and edible oil are listed, the flagship company, Godrej & Boyce, is still privately held . And it is the jewel of the group with FY07 turnover close to Rs 3,000 crore and profit of over Rs 100 crore.
The real story, however, lies in the numbers behind the numbers. Godrej & Boyce was the first Indian company to manufacture refrigerators, and they still contribute the maximum to the company's turnover followed by steel furniture and its first product - locks.
Locks are still the only division utilising 100% of installed capacity. While the company's export turnover has doubled from FY06, it still constitutes barely 10% of revenue.
Godrej & Boyce also has a strong balance sheet with reserves of Rs 550 crore, and investments with a market value of over Rs 4,500 crore. Of this, Rs 3,000 crore is the current worth of its stake in its listed subsidiary - Godrej Industries. It has over a dozen unlisted subsidiaries where there could be a potential for unlocking value.
Jamshyd Godrej is the chairman & managing director of Godrej & Boyce, while his cousin and Godrej Industries chairman Adi Godrej, too, is on the board of directors.
The question for most shareholders of the Godrej group: Will Godrej & Boyce ever be listed?
Company Financials
| |
FY07 |
FY06 |
| Revenue |
Rs 2,843cr |
Rs 2,164cr |
| Net Profit |
Rs109cr |
Rs39cr |
Product lines share of revenue
| Steel Furniture |
Refrigerators |
Locks |
Industrial Goods |
| Rs 540cr |
Rs 615cr |
Rs 162cr |
Rs 647cr |
| 19% |
22% |
6% |
23% |
Other metrics
| Reserves |
Rs 554 cr |
| EPS |
Rs 1,656 |
FY07 Unit Sales
| Steel Furniture |
1.15 cr |
| Locks |
57 lakh |
| Refrigerators |
8.64 lakh |
Actual Production / Installed Capacity
Steel Furniture 57%
Locks 100%
Home Appliances 62%
Market Value - Rs 4500 crore +
Unlisted Subsidiaries - Rs 153 crore
Saraswat Co-op Bank - 1,000 shares
Zoroastrian Co-op Bank - 4,000 shares
(This exclusive series uncovers information and numbers regarding some of the biggest companies in India, but which are not in the public domain.)
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