Mumbai, May 7, 2001

Godrej Industries Limited (GIL), formerly known as Godrej Soaps Limited (GSL), has reported strong results for the year ended March 31, 2001. With more than 150 per cent growth in net profit before tax and 21 per cent growth in turnover, the company has recommended a dividend of 30 per cent to its shareholders. These results are the combined results for the consumer products division and chemicals and other businesses of the erstwhile GSL.

With effect from April 1, 2001, the consumer products division has been 'de-merged' into Godrej Consumer Products Limited, which will be a focussed FMCG company. Godrej Industries retains the industrial chemicals, medical diagnostic equipment, and investments in group companies portfolios.

Announcing the results, Mr Adi B Godrej, the GIL chairman, said, "The excellent results for the year lay a strong foundation for the continued success of the two companies formed as a result of the de-merger. Godrej Consumer Products, the new and focussed FMCG company, and Godrej Industries, the residual company, will continue to build value for their shareholders."

GIL's net profit before tax before exceptional items is Rs 77.97 crore as against last year's figure of Rs 30.52 crore. The company has made a one-time provision / write-off of Rs 33.81 crore during the year 2000-01, representing provision for depletion in the value of long-term investments / write-offs of certain deposits / loans in view of the non-recovery of principal amounts and the interest thereon.

Accordingly, the company's net profit after tax for the year 2000-01 is Rs 40.65 crore. The results for 1999-2000 included net exceptional income of Rs 36.88 crore and, thereby, net profit after tax last year was Rs 60.99 crore.

For the quarter ended March 31, 2001, the company's net profit before tax before exceptional items is Rs 22.53 crore, compared with Rs 3.29 crore in the same period last year. The company recorded a turnover of Rs 240.79 crore for the quarter ended March 31, 2001 as compared with Rs 180.76 crore in the same period the year before.

The company's consumer products division performed very well, with turnover for the year growing by 22 per cent in value, well ahead of category growth. It recorded a sales turnover of Rs 468.41 crore as against Rs 382.48 crore in the previous year. During the year, sales of Godrej brands grew by 25 per cent in value terms. For the quarter ended March 31, 2001, the consumer products division recorded a growth of 27 per cent in value terms, with a sales turnover of Rs 125.04 crore as against Rs 98.14 crore over the same period the year before.

During this period the company extended its Fairglow Fairness Cream sachet pack to the entire country, helping the brand become the third largest player in the fairness cream market in India. New brands such as Fairglow, Nikhar and Allcare, boosted by various sales initiatives, improved the market share of Godrej brands in the toilet soap and hair colour segments.

The consumer products division, now de-merged into Godrej Consumer Products Limited, plans to focus on four FMCG categories: personal care, hair care, fabric care and household care. Growth is planned through increasing market share in existing products and launching innovative, value-added products.

The chemicals division has also shown good performance during the year, with sales growing by 26 per cent in value terms as compared to the year before. The division recorded a sales turnover of Rs 366.29 crore as against Rs 290.57 crore in the previous year. This was boosted by a high level of exports, which touched Rs 98 crore. For the quarter ended March 31, 2001, the division recorded a growth of 43 per cent in value terms with sales turnover of Rs 103.25 crore as against Rs 71.99 crore in the same period last year.

The board of directors of the company has, in its meeting held on May 7, 2001, recommended a final dividend of Rs 3 per share (30 per cent on shares of the face value of Rs 10) as compared to a dividend of Rs 2.70 per share last year.