Abstract

The case discusses the implementation of economic value added (EVA) framework in Godrej Consumer Products Limited (GCPL), a leading FMCG company in India. It covers in detail the reasons for implementing the EVA framework in GCPL and the benefits derived by the company from it. The case then examines the link between the implementation of EVA framework and improvement in the financial performance of a company. It ends with a debate on the effectiveness of EVA and highlights its limitations.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Implementation of EVA.

Keywords

Godrej Consumer Products Limited, Economic Value Added, EVA, Deployment of EVA Framework, Maximizing Shareholder's Wealth, EVA in FMCG Industry, FMCG Industry in India, Calculation of EVA, Capital Asset Pricing Model, Approaches to Calculate Capital Employed, Scorpio, Commercial Vehicles, Innovations in Road Transportation Industry