Beruflich Dokumente
Kultur Dokumente
Presentation by,
Ms. Pramita A
Ms. Suvarna G
Ms. Kajal C
Topics to be covered
Company History of Godrej
Winds of Change at Godrej
Moving towards EVA
Training for EVA at Godrej
EVA Calculations and Adjustments
EVA Incentive program
Initial experience with EVA
Conclusion
Company History
Started in 1897 as a locks manufacturing company, the Godrej Group is today
one of the most accomplished and diversified business houses in India.
In 1930, Godrej became the first company in the world to develop the
technology to manufacture soap with vegetable oils; that spirit of innovation
has continued throughout the organization's history.
GCPL came into existence after the de-merger of the consumer products
division of the erstwhile Godrej Soaps Limited (GSL) on April 01, 2001.
The group has more recently entered the real estate and information
technology sectors, and management views these as avenues for enormous
growth.
Company History
2001-02 to
2008-09
Continuing
Strong
Domestic
Presence
Company History
2005-06
Entry into
the UK
Key line
Brands
Limited
April 2008
Expanding presence in S
Africa
Acquisition of Kinky Group
(Proprietary) Ltd
Operations…..
Manufacturing facilities both in India and abroad
• Malanpur (M.P.) – 45,000 tonnes of soap
• Guwahati (Assam) – hair colourants and toiletries
• Baddi (H.P.) – 30,000 tonnes of soap
• Katha (H.P.) – 45,000 tonnes of soap
• Sikkim – hair colourants and toiletries
• South Africa
– Rapidol – range of hair colour products
– Kinky – diversified hair products portfolio
Capital Employed
• Net Fixed Assets + Investment +Current Assets – (NIBCLs +
Miscellaneous Expenditure not written off + Intangible Assets +
Cumulative Non-Recurring Losses + Capital Expenditure on R&D) –
Revaluation reserve – Cumulative Non-Recurring Gains.
WACC
• (weight of equity Capital+ free reserve) + (weight of long-term Debt)
Technical Adjustments to ROI & EVA
A survey made by Dodd & Johns identified significant
inconsistencies in the measurement of EVA. Although a
consistent philosophy has been applied, none of the
companies measure EVA the same way.
GCPL reported an EVA of Rs. 0.137 bn for the six months ended
September 30, 2001.
On June 18, 2001, GCPL was listed on the BSE quoting at Rs 48.50 while
GIL traded at Rs 16. By August 2002, the share price of GCPL rose to
Rs. 120 while that of GIL remained stagnant at Rs. 20
EVA Incentive program
Features :
Bonuses are linked to changes in EVA and not to
absolute EVA or Profit Before Tax (PBT).
Bonuses paid out are budgeted for before EVA
targets are met.
No caps and no floors in pay-off profile.
Multi-year targets, de-linked from annual budgets.
Bonus “bank”.
EVA drivers and individual performance factored in
bonus distribution to the team.
Bonuses for meeting EVA expectations
Unlimited upside
potential, but with
corresponding
downside risk
• Bonuses are
“decoupled” from
budgets
• Bonus banking
system
BENEFITS :