Training and Development at Godrej

            
 
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Case Details:

Case Code : HROB065
Case Length : 11 Pages
Period : 1997-2004
Pub Date : 2005
Teaching Note :Not Available
Organization : Godrej
Industry : Diversified
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note

The Godrej story started in 1897, when Ardeshir Burjorji Godrej (Ardeshir) gave up his legal practice and started manufacturing locks in a small shed at Lalbaug near Mumbai. Thus was GBML born. His brother, Phirozshah Godrej (Phirozshah), carried on the pioneering work and in 1905 GBML built its first safe, thus entering the security equipment business.

GBML expanded its range of products by manufacturing office equipment, typewriters, tool-room equipment, etc. In the early 1920s, GBML started making soaps from vegetable oils and incorporated GSL in 1928.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

In 1958, GBML started manufacturing refrigerators, its first home appliance product. GSL ventured into animal feed in 1971 to help dairy and poultry farmers rear healthier livestock. Godrej Pacific commenced operations in 1982 as the Electronic Business Equipment (EBE) Division of GBML.

In 1985, GBML ventured into Computer Aided Designing services as part of its EBE division. In 1990, Godrej Properties & Investments Limited (GPIL) was incorporated to provide meticulously planned townships. In 1991, the Godrej group entered the processed food and edible oil segment by incorporating Godrej Foods Ltd (GFL).

The animal feed division was spun off into a distinctly focused animal- feed and agricultural input company in 1991-92 and was named Godrej Agrovet Limited (GAVL). In 1993, GBML entered into a joint venture with General Electric (GE), US and Godrej-GE Appliances was formed.

It went on to manufacture washing machines and air conditioners. GE exited from the joint venture in 2001 and the appliances business became a division of GBML. In 1993, Godrej entered into a manufacturing and marketing alliance with Proctor & Gamble (P&G). A new company P&G-Godrej Ltd, with each company holding 50%, was incorporated.

The entire distribution network of Godrej was transferred to this company and the joint venture was entrusted with the task of marketing both Godrej and P&G's toilet soap and detergents brands.

The EBE division was spun off into Geometric Software Solutions Ltd in 1994 to offer complete solutions to customers. In 1994, Godrej ventured into the insecticide market through GSL, which bought 75% stake in Transelektra Domestic Products Pvt Ltd (TDPL), the manufacturer of the "Good Knight" brand.

In 1995, Godrej entered into a joint venture with the US multinational, Sara Lee and the new concern was called Godrej-Sara Lee. The venture was the world's largest manufacturer of mosquito repellents. In August 1996, P&G-Godrej Ltd, terminated the arrangement and Godrej re-took charge of marketing its soap & detergent brands but without a distribution network of its own.

In 1999, GSL sold 22.5 per cent of its shareholding in Godrej-Sara Lee to the group holding company GBML for Rs 994.7 million. Godrej Infotech Ltd was incorporated in 1999 to offer software solutions. In March 2001, GSL got de-merged and its consumer products division came to be known as Godrej Consumer Products Ltd (GCPL)...

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