Dividend Coverage of Godrej Consumer Items Ltd

 Dividend Policy of Godrej Consumer Items Ltd Essay

Godrej Consumer Products Limited: Dividend History and Marketplace Performance Godrej group of businesses is one of the earliest corporate houses in India. The Godrej group was established in 1897. It had an overall total turnover of `. 118 billion (US$ 2 . sixty two billion) intended for the monetary year 2010. With five listed businesses with an aggregate market capitalisation of `. one hundred sixty five billion by March thirty-one 2010, 49 manufacturing locations in India and international, and procedures in 18 countries, very low significant existence in the fast paced consumer merchandise, real estate, commercial engineering, devices, chemicals, home furniture, security and agri care sectors. Godrej Consumer Products is among India‘s leading FMCG corporations, with significant presence in other developing marketplaces in Asia, Africa and South America, including Indonesia, South Africa, Nigeria and Argentina. That manufactures and sells a variety of personal rinse, hair care and home care products. The total profits and net profit pertaining to the economical year 2010 was `. 20, 885. 02 , 000, 000 and `. 3, 395. 86 mil, respectively. It is international operations contributed `. 3, 824. 70 mil, or 18. 3%, of our total income for the financial yr 2010. With this recently finished acquisitions, we expect our international operations to contribute more substantially to our total income going forward. Company's range of products in India includes toilet soaps, hair colorants, household insecticides, toiletries, hand sanitizers, hand wipes, hand flushes and liquefied detergents. For the economic year 2010, GCPL acquired the second largest value market share of 15. 3% in India inside the toilet detergent category as well as the largest curly hair value business of thirty-three. 9% in India inside the hair coloriant category. It was also the marketplace leader in liquid detergents in India, with a 76. 5% benefit market share for the similar period. Intended for the economic year 2010, our subsidiary, Godrej Home had the biggest value business of 33. 1% in India in the household insecticides category. It also has significant presence in the shoe proper care and men hair care market segments. GCPL has five manufacturing facilities in India in Malanpur (Madhya Pradesh), Guwahati (Assam), BaddiThana (Himachal Pradesh), Baddi-Katha (Himachal Pradesh) and Sikkim. In addition , Godrej Household has making facilities in Pondicherry, Chennai, Guwahati, Meghalaya, Jammu, Goa and Sri Lanka. During the past several years, we accomplished a number of purchases in India and offshore to increase the market share in selected item categories and expand our geographical reach (See Demonstrate 1). In India, GCPL sought to obtain market command in household insecticides and increase each of our market share in personal care products by acquiring 49. 0% of Godrej Household on June you, 2009. On May 28, 2010, our Company bought the remaining 51. 0% share in Godrej Household from our joint venture partner, Sara Lee Corporation. Pertaining to the year finished March 23, 2010, Godrej Household had total income and revenue after duty of `. 9, 425. 89 mil and `. 1, 371. 80 , 000, 000, respectively. FMCG Sector in India

With 12. 2 % in the world's populace living in non-urban India, the prospects to get India's FMCG sector will be bright. With regard to FMCG products like toilet soap, washing soap, detergents, toothpaste, prepared foodstuffs and batteries is definitely forecasted to enhance because of India's burgeoning midsection class. As with 2010, 66 % of India's require was urban and the leftover 34 % was countryside. Between the year 2003 and 2010 nearly 2 hundred mn persons shifted in order to processed and packaged food, indicating fast demand growth. As in 2010, India's FMCG sector can be $ 13. 1 bn in size. It truly is expected to a lot more than double to $ 33 bn simply by 2015. The sector can be poised to grow simply by 10 to 12 % for the next 10 years. The American indian FMCG sector has a lots of advantages. India is the planet's largest maker of coconuts, sugarcane, livestock, milk, seasonings and cashews. It is the second largest maker of rice, wheat and fruits & vegetables. India also produces...