Presentation on

Joint Venture

ABOUT GODREJ CONSUMER PRODUCTS

Godrej Consumer Products Ltd (GCPL) is a major player in the Indian FMCG market with leadership in the hair color and fabric care categories.

It is also one of the largest marketers of toilet soaps in the country with leading brands, such as Cinthol, Godrej Fairglow and Godrej No.1.

The recent acquisition of Rapidol and Kinky in South Africa has given GCPL leading positions in the fast growing South African ethnic hair care market.

ABOUT SARA LEE CORPORATION

Each and every day, Sara Lee delights millions of consumers and customers around the world.

The company has one of the world’s best-loved and leading portfolios with its innovative and trusted food, beverage, household and body care brands, including Ambi Pur, Ball Park, Douwe Egberts, Hillshire Farm, Brylcreem, Jimmy Dean, Kiwi, Sanex, Sara Lee and Senseo

Collectively, these brands generate almost $13 billion in annual net sales covering approximately 180 countries. The Sara Lee community consists of 41,000 employees worldwide.

THE JOINT VENTURE

Joint Venture between Godrej Group, India And Sara Lee Corporation, USA with 49:51 Shareholding respectively in the year 1991

Became Market Leader In the Indian Household Insecticides Category

Dominant Presence In The Air Care, Shoe Care And Male Hair Care Categories

Strong Brands Like Good Knight, Hit, Jet, Ambipur, Brylcreem and Kiwi

STRATEGIES ADOPTED

Acquired Chinese household insecticide company (2007)

Acquired Trans Elektra domestic products ltd i.e. makers of good knight and hit) in year 1994

Acquired kiwi shoe polish

Adopted segmented channel approach-breaking retail points into rural space channel, shoe mart, cosmetic store etc

Increase dependence on IT- to get real time data on inventory and sales.

Moved 70% of distributors to electronic payments

ACHIEVEMENTS

Super Brand Award : Good knight ,Brylcreem

Good knight : No. 1 household care brand in Brand Equity survey

Good knight : Featured as the 14th Most trusted brand in Brand Equity survey in FMCG industry

Bagged President’s Award from Sara Lee worldwide for its excellence in management and record performance for 3 times in a row from 2000 to 2003

END OF JOINT VENTURE

Sara Lee Corporation announced May 12, 2010 that it has agreed to sell its

51 percent stake in the Godrej Sara Lee Ltd. joint venture to Godrej

Consumer Products Ltd. for €185 million bring to an end to 15 year old

alliance

Ever since Sara Lee started selling its consumer care businesses in pieces,

the joint venture has been under question. Sara Lee sold its air fresheners

brand Ambi Pur to P&G, while Unilever bought the household businesses,

including the Brylcreem

The sale of our stake in the Godrej Sara Lee joint venture, combined with the

previously announced binding offers with P&G and Unilever, underscore the

significant value of our Household and Body Care portfolio,

said Brenda C. Barnes, CEO, Sara Lee

Corporation

GODREJ BENEFITTED OUT OF SPLIT

If Sara Lee sold its consumer products business to a competitor, Godrej

would have then exercise its right to buy it out in the joint venture

The agreement had a clause that in case of ownership change of one

partner, the other partner can buy it out

Also, in case Sara Lee had sold the business, the Indian company will

retain the rights to sell its brands like Ambipur, Brylcream and Kiwi.

However, it will need to pay a royalty to the new owner

Godrej Consumer became largest Indian owned FMCG

THANKYOU