Challenges of Implementing Economic Value Added

In this case we present the process of implementation of an economic value added (EVA) framework in Godrej Consumer Products Limited (GCPL), a leading fast moving consumer goods (FMCG) company in India, and the challenges faced by the company. It covers in detail the reasons for implementing the EVA framework in GCPL and the benefits derived by the company from it in the form of the SWOT analysis. It is shown that there is a positive link between the implementation of an EVA framework and improvement in the financial performance of a company. It ends with a debate on the effectiveness of EVA.