Godrej & Wipro
-
Upload
kriti-gupta -
Category
Documents
-
view
227 -
download
0
Transcript of Godrej & Wipro
-
8/2/2019 Godrej & Wipro
1/19
By
Kriti Gupta
MBA (Banking and Insurance)
-
8/2/2019 Godrej & Wipro
2/19
Wipro Ltd. is the flagship company of the Azim HPremji group. Wipro was incorporated in the year1945.
Wipro is a global IT services company. The companyprovides comprehensive IT solutions and services,
including systems integration, information systemsoutsourcing, software application development andmaintenance, and research and development servicesto corporations.
The company mainly operates in the US. It is
headquartered in Karnataka, India and employs morethan 108,071 people worldwide as of March 2010.
It has interests varying from information technology,consumer care, lighting, engineering and healthcarebusinesses.
-
8/2/2019 Godrej & Wipro
3/19
3325
4963
57626030
6913
652 816 880 1020 1178
0
1000
2000
3000
4000
5000
6000
7000
8000
2006-07 2007-08 2008-09 2009-10 2010-11
Revenue ($ Mn)
Net Income($ Mn)
-
8/2/2019 Godrej & Wipro
4/19
Wipro Corporation revenue at Rs.311 Billionfor 2011
IT Services contribute 76% of Revenue and
93% of PBIT Revenue growth of 16% and PBITgrowth of 12%
IT Products account for 12% of Revenue and3% of PBIT
Consumer Care and Lighting businesscontribute 9% of Revenue and 6% of PBIT
-
8/2/2019 Godrej & Wipro
5/19
2611
3647
4323 4390
5221
0
1000
2000
3000
4000
50006000
IT Services($ Mn)
IT Services($ Mn)
-
8/2/2019 Godrej & Wipro
6/19
Partner to Industry Leaders
904 active global clients as of March31, 2011
150+ Fortune 500 customers
Global footprint
Listed on NYSE in October 2000 Present in 54 countries
20,000+ employees onsite across geographies
Diverse talent pool
122,000+ employees
76 nationalities represented in workforce
-
8/2/2019 Godrej & Wipro
7/19
Particulars 2007 2008 2009 2010 2011
Revenue(Rs Mn)
136839 199575 255338 271574 310987
EPS(Rs) 19.92 22.62 26.81 31.78 21.74
PAT (Rs Mn) 29421 32829 38860 46116 53321
Debt EquityRatio
0.039 0.38 0.38 0.31 0.22
-
8/2/2019 Godrej & Wipro
8/19
STRENGTH WEAKNESS
Billionaire-founder AzimPremji's early allianceswith global leaders likeJack Welch helped thecompany establish itscredibility, among themost diversified ITconglomerates withbusinesses ranging fromsoaps to hydraulic
pumps and embeddedsoftware.
Lags peers in salesand marketing spendand initiatives, lackof articulatedstrategy and vision,strategy focused ontraditional ITcapabilities
-
8/2/2019 Godrej & Wipro
9/19
OPPURTUNITY THREAT
New CEO TK Kurien'sstrategy to create aleaner, sharperorganization couldresult in more profitsand wallet share oflarge customers, shiftfrom pure techpositioning to a morebroad-based vendorfocused on solving
business problems.
Life after Premjicontinues to be aworry, too much focus
on cost reductioncould come at cost oflong-term strategicdirection.
-
8/2/2019 Godrej & Wipro
10/19
Broad based portfolio across Verticals,Geographies, Service Lines and Customers
Strong ($1B) and Established (20+ years)
presence in some of the key growth marketsIndia & Middle East
A complete, integrated portfolio of services
Leadership in R&D worlds largest
independent 3rd party R&D shop
-
8/2/2019 Godrej & Wipro
11/19
-
8/2/2019 Godrej & Wipro
12/19
Established in 1897,by Ardeshir Godrej, whoseinventions are the foundations of todays Godrejempire
Godrej enjoys the patronage and confidence ofover 470 million Indians who come face-to-facewith it every single day
With seven major companies and interests inseveral high-growth verticals real estate,industrial engineering, appliances, furniture,security and agri care, to name a few the groupis marking annual turnover at approximately Rs.
13,500 crore 20% of the groups business is conducted
overseas in more than 60 countries
-
8/2/2019 Godrej & Wipro
13/19
Four of its brands were ranked in Brand Equitys100 Most Trusted Brands Survey of 2010
Good Knight, its iconic across-all-socio-economiccategories brand, jumped to a historic high rank oftwelve
Godrej No. 1 and Cinthol, its two highly visiblesoap brands were ranked 13th and 14threspectively in the personal care category
Godrej Expert Powder Hair Dye made its debutlisting
GCPL continues to be recognised amongst some ofthe best employers to work for in India andamongst the top 25 employers in Asia
-
8/2/2019 Godrej & Wipro
14/19
Not so long ago, the fast moving consumer goods(FMCG) category was actually a slow moving one
when liberalization was introduced, Incomesclimbed steeply and with that the needs,dormant for so long, came to the surface
It cannot come as a surprise to discover that theFMCG market is, today, a Rs. 130,000 croresbusiness that has grown at an incredible averageof 11% each year over the last decade
It is expected to continue its steep rise till atleast 2020 and has the potential to touch sales ofRs. 370,000 crores making it the third largestindustry in India after finance and food
-
8/2/2019 Godrej & Wipro
15/19
Particulars 2007 2008 2009 2010 2011
D/Eratio
1.02 .89 .12 .01 .18
EPS (Rs) 5.40 6.56 6.29 8.05 13.44
SalesTurnover(Cr)
799.41 922.78 1135.37 1301.58 2477.46
PAT 122.03 148.12 161.55 248.12 434.95
ROCE 64.27 66.03 32.65 35.73 28.43
-
8/2/2019 Godrej & Wipro
16/19
STRENGTHS WEAKNESSES
Gaining value share inhair color category withrural thrust throughsuccessful rollout ofthe partnership with
barbers across thecountry
Strong distribution
Strong R & D
High spending onAdvertisement andmarketing (20% ofcapital investment)
Skilled Labour shortage
Godrej has no soap inpremium segmentwhich its competitors
has
-
8/2/2019 Godrej & Wipro
17/19
OPPORTUNITIES THREATS
Food inflation hasstarted easing which ispositive for FMCGsector from demandperspective
Recent acquisitionspresent strongintegrationopportunities
Fast growing beautymarket (growing at 13%annually)
Growing competitionfrom private labels
Cost of raw materialsand other inputs
Sharp market sharegain by ITC in thesoaps segment
Price fluctuation in
vegetable oil is keyinput for soaps
-
8/2/2019 Godrej & Wipro
18/19
The recent merger of Godrej Household ProductsLimited with GCPL has paved the way for thecompany to have a single focal point and thusdrive expansion and growth
GCPL is now the largest home-grown householdand personal care company in India and, thesecond largest household insecticides companyin Asia
It bought out Keyline Brands in the UnitedKingdom, the Rapidol and Kinky Group in South
Africa and through Godrej Global Mideast FZE, itowns international brands and trademarks inEurope, Australia, Canada, Africa and the MiddleEast
-
8/2/2019 Godrej & Wipro
19/19