Emami Limited · NSE:EMAMILTD
Emami — Investor Presentation (August 2023)
56 slides from Emami's investor presentation, August 2023
Slide 1: Company Overview
Company Overview August 2023
Slide 2: Disclaimer
Disclaimer Some of the statements made in this presentation may look forward looking information that involves number of risks and uncertainties. Such statements are based on certain assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties and cont
Slide 3: About us
About us
Slide 4: Background
Background One of the leading and Promoted and Flagship fastest growing Commenced company of the founded by RS commercial personal and Agarwal and RS Emami Group healthcare operations in Goenka 1974 businesses in India Lead by the Experienced founders and the eminent Category creator 2nd generation
Slide 5: Key Numbers
Key Numbers 3,406 cr. 6 450+ 140+ Revenues generated Power Brands enjoying Portfolio of Products Products sold every in FY23 market leadership across brands second across the world 70 9.4 lac 4.9 mn 6.5 cr Countries where Emami Outlets under Emami’s Outlets where Emami’s Households where Emami Produ
Slide 6: Milestones
Milestones Issued 1:1 Bonus. Public issue. NSE Started with a Acquired Launched Launched Listed on Launched Navratna Stock Split from ₹ Listing, Launched meagre capital Himani Ltd BoroPlus Navratna BSE Cool Talc 10 to ₹ 2/- Fair & Handsome 1974 1978 1982 1989 1995 2004 2005 2007 Acquired Zandu Raise
Slide 7: Board of Directors
Board of Directors R.S. Agarwal R.S. Goenka H.V. Agarwal Mohan Goenka S.K Goenka A.V. Agarwal Priti A Sureka Prashant Goenka Chairman Emeritus & Non Executive Vice Chairman & Vice Chairman & Executive Director Non Executive Director Executive Director Executive Director Non Executive Director Chairm
Slide 8: Shareholding Structure
Shareholding Structure Shareholding break-up* Major institutional investors* Public 7.36% DSP Blackrock Others Mirae Asset Promoters Institutional 54.84% 37.80% HDFC AMC Vanguard Birla Sunlife Kotak MF Franklin HSBC MF Templeton HDFC Life Insurance *As on 21st July’23 8
Slide 9: Revenue Split
Revenue Split Business wise revenue split Business wise revenue split (FY19) (FY23) International International 13% 17% Domestic Domestic 83% 87% 9
Slide 10: Key Brands
Key Brands ₹750 crore+ ₹750 crore+ ₹550 crore+ ₹300 crore+ Cool Oils and Cool Talc Pain Balms, Healthcare products Antiseptic Creams, Body Lotions, Ayurvedic Medicinal Oils, Shampoos, in OTC, Generics & Ethicals Hygiene Range, Aloe Vera gel, Petroleum Conditioner & Capsules Jelly & Prickly Heat Powd
Slide 11: Market Leadership across Power Brands
Market Leadership across Power Brands 80% #1 70% #1 #1 60% #1 50% #1 40% #1 30% 20% 10% 0% BoroPlus Antiseptic Navratna Cool Oils Fair and Handsome Zandu & Mentho Navratna Talc & Kesh King Oil Cream Fairness Cream Plus Balms Dermicool* Source: AC Nielsen MAT Dec’21 *AC Nielsen MAT Sep’19 11
Slide 12: Navratna
Navratna ▹ Market leader in a niche Cool oil and Cool Talc category with no significant competitors ▹ Extended to Extra Thanda oil, Gold oil, Therapy range and Cool talc ▹ Endorsed by Salman Khan & Varun Dhavan ▹ Navratna Cool Oil used by 3.2 cr households and Cool Talc used by 1.3 cr households acr
Slide 13: Pain Management range
Pain Management range ▹ Zandu - largest pain balm brand in India ▹ Extensions in Ultra power Balm, pain relief oil & roll on ▹ Mentho Plus positioned as headache specialist ▹ Zandu Fast Relief, India’s only pain relief brand endorsed by The Indian Association of Physiotherapists ▹ Endorsed by Sonu S
Slide 14: BoroPlus
BoroPlus ▹ India’s trusted multipurpose No.1 Antiseptic Cream ▹ Extensions in Soft Cream, Moisturizing Lotions, Prickly Heat Powder, Aloe Vera gel, Petroleum Jelly & Hygiene range ▹ Endorsed by Akshay Kumar, Ayushmann Khurrana & Nushrratt Bharuccha ▹ BoroPlus Antiseptic Cream used by 6.5 cr househol
Slide 15: Kesh King
Kesh King ▹ India's no. 1 Hairfall Expert ▹ Complete range of products from Ayurvedic medicinal oil, shampoo, conditioner, capsule and Onion Range ▹ Internationally Certified for superior product efficacy and comprises 21 rare ayurvedic herbs made by using Tel Pak Vidhi. ▹ Endorsed by Shilpa Shetty
Slide 16: Male Grooming Range
Male Grooming Range ▹ Fair and Handsome- first brand to revolutionize men’s grooming segment in India ▹ Successfully extended into face wash ▹ Endorsed by Salman Khan ▹ Fair and Handsome Radiance cream used by 65 lac households across India ▹ HE Deodorants, launched in 2014, available in aerosol & a
Slide 17: Zandu Healthcare Range
Zandu Healthcare Range ▹ Health expert offering ayurvedic solutions for lifestyle-related health problems ▹ OTC Range- Major products include Zandu Pancharishta, Zandu Nityam, Zandu Kesari Jivan, Zandu Chyawanprash etc ▹ Generics and Ethicals Range - Wide range of ayurvedic generic and ethical produ
Slide 18: Dermicool
Dermicool ▹ One of the leading brands in the Prickly Heat and Cool Talc Segment ▹ Acquired in March 2022 from Reckitt Benckiser for ₹432 crore (excluding taxes & duties) ▹ Iconic brand with a strong brand equity- High consumer connect through its vastly popular jingle, ‘Aaya Mausam Thande Thande Der
Slide 19: Domestic Presence
Domestic Presence ▹ Headquartered in Kolkata, West Bengal Pantnagar Pacharia, Amingaon ▹ State-of-the-art R&D centre in Kolkata New & Abhoypur ▹ 4 Regional offices Delhi ▹ 26 depots across India Vapi & Silvassa Kolkata Dongari Hyderabad Mumbai Head Office Domestic Manufacturing Unit Emami’s Corporat
Slide 20: Global Presence
Global Presence CIS c.14% MENAP c. 37% SAARC c. 37% AFRICA & Others c. 12% SAARC South Asian Association for Regional Cooperation (Major countries – Bangladesh, Nepal, Sri Lanka etc.) MENA Middle East & North Africa (Major countries – KSA, UAE, Qatar, Oman, Kuwait, Bahrain etc.) CIS Commonwealth of
Slide 21: Manufacturing Strengths
Manufacturing Strengths ▹ 7 manufacturing units in India ▹ 2 units in Guwahati enjoying fiscal benefits ▹ WHO-GMP certified manufacturing units ▹ State-of-the-art plants with high degree of automation ▹ International manufacturing unit in Bangladesh State-of-the-art manufacturing unit in Pacharia, G
Slide 22: R&D Strengths
R&D Strengths ▹ 30,000 sq. ft. state-of-the-art ultra-modern R&D centre in Kolkata ▹ Modern laboratory with cGMP practices ▹ Focus on product innovation, differentiation, cost control and superior quality R&D centre in Kolkata ▹ Team comprises qualified ayurvedacharyas and specialized ayurveda scien
Slide 23: Inorganic Growth Strategy
Inorganic Growth Strategy Key Attributes Key acquisitions ▹ Market leadership/ high consumer connect Creme 21, ▹ Presence in Niche 2008 Zandu 2019 Germany Category in the Personal & Healthcare space ▹ High Margins 2015 Kesh King 2022 Dermicool ▹ Low competitive intensity 23
Slide 24: Strategic investments in startups
Strategic investments in startups Fur Ball Story 50.40% 95.36% 20.65% 30.00% Stake Stake Stake Stake 24
Slide 25: Celebrity Endorsements
Celebrity Endorsements ▹ Emami is a pioneer in engaging celebrities to endorse its brands. ▹ Emami brands have been associated with more than 60 celebrities over the years. ▹ Bollywood icons like Amitabh Bachchan, Shah Rukh Khan and Salman Khan have endorsed Emami brands Emami past & present brand a
Slide 26: Growth Drivers
Growth Drivers
Slide 27: Re-energizing Power Brands
Re-energizing Power Brands Cumulatively Introduction generate of Relevant ~80% of ▹ Emami’s brands are in niche extensions revenues categories for mass consumers, a rare interplay of volume and value ▹ Being niche, brands are relatively Adequate Building on Marked by protected from competition room
Slide 28: Low Penetration levels… Continuous Growth opportunity
Low Penetration levels… Continuous Growth opportunity 47.1% Category Brand penetration penetration 25.3% 24.6% 20.3% 14.7% 12.7% 10.1% 7.9% 6.2% 2.6% 2.4% 2.0% Zandu & MenthoPlus BoroPlus Antiseptic Navratna Cool Oil Navratna Cool Talc & Kesh King Oil Fair and Handsome Balms Cream Dermicool** Cream
Slide 29: Navratna
Navratna ▹ Strengthened presence in core markets (UP, Bihar and Jharkhand) ▹ To drive brand recall through integrated 360° campaigns ▹ Developed new markets (Gujarat, Maharashtra, AP, Telangana and Bengal) ▹ To drive trials by undertaking large scale activities like salon development program, partic
Slide 30: Pain Management Range
Pain Management Range ▹ Core markets: Deepen presence in Maharashtra & Andhra Pradesh Telangana, and Karnataka ; ▹ Developing markets: Deepen Zandu relevance via regional media and increase purchase intention with multiple pain indications ▹ Key focus on Chemist channel and Consumer touchpoints at p
Slide 31: BoroPlus
BoroPlus ▹ Drive multi-purpose usage specially promoting the moisturising benefit ▹ Launched new communication with Akshay Kumar showcasing multipurpose usage by the all the members of the family ▹ Leveraging the digital platform ▹ Extension of the brand to youth through Aloe Vera Gel and Soft Antis
Slide 32: Kesh King
Kesh King ▹ Strengthened Kesh King as a complete Ayurvedic solution for hair fall and allied problems ▹ Rejuvenated Kesh King Shampoo (to arrest hair fall) with new packaging, communication and market mix ▹ Deepening focus across target audience (25-45) ▹ Effectively communicating the provenness by
Slide 33: Fair and Handsome
Fair and Handsome ▹ Refreshed packaging with high efficacy claims across cream and face washes ▹ Introduced new packaging design in line with Men’s Face Wash category ▹ New communication planned to strengthen brand positioning and provide tangible competitive benefit superiority ▹ NPDs planned to re
Slide 34: Healthcare range
Healthcare range ▹ Focus on Pain, Digestion, Geriatrics and Feminine care etc. ▹ Relaunched Pancharishta with new campaign featuring Amitabh Bachchan & launched PET bottles to prevent breakage ▹ Extend penetration among a wider consumer base for laxatives ▹ Focus on sustained product launches and ne
Slide 35: Dermicool
Dermicool ▹ Imagery revamp with Superior Brand repositioning ▹ New TVC with 360 degree media deployment - Industry benchmark claims in communication ▹ Launch of LUP to drive trials & increase penetration ▹ Deployment of compelling consumer promos ▹ Geography & Footprint expansion drive ▹ Launch of 4
Slide 36: International Business
International Business ▹ Working on globalizing Indian Herbal & Natural products ▹ Focus top 15 countries (~ 85% of global revenues) where key brands. are achieving leadership position ▹ Innovating portfolio to offer wider range to discerning customers in different cultures ▹ Tapping available poten
Slide 37: Strengthening Distribution
Strengthening Distribution Increased Focus on MT & Healthcare Direct Reach eCom Channels outlet expansion ( Contribution to ( outlets in lacs ) ( outlets in lacs ) Domestic Sales) 9.4 1.27 18.6 6.4 % 0.78 7.1% FY16 FY23 FY21 FY23 FY19 FY23 Result: Dependency on wholesale channel reduced to ~35% from
Slide 38: Initiatives in Sales & Distribution
Initiatives in Sales & Distribution Strengthening rural coverage Beat Optimization & Geo Tagging Upsell & Cross Sell Roll-out through Project KHOJ – Target to double rural coverage in 3 years Beat Optimisation tool initiated to from 32k towns to 60k towns ▹ Minimise travel distance of the MRs 60,000
Slide 39: Driving Digitalization & Analytics
Driving Digitalization & Analytics Focus on new age e- channels Integration of analytical tools with the for better reach and insights hand held devices to capture accurate Strategic investments in geographic location, store level e-B2B & start-ups to develop information and intervene during the D2C
Slide 40: Focus on Modern Trade
Focus on Modern Trade Accelerating MT Focus on Standalone Modern RESULT Growth with Trade (SAMT) Outlets by creating Increase in contribution from thrust in B2C, & separate structure and activation Modern Trade JBPs with chains programs for 10-12k SAMT stores (to Domestic Sales) 9.3% 6.7% 7.1% Using
Slide 41: Riding e-Commerce
Riding e-Commerce Products available at all Launched Digital first RESULT major online marketplaces, products under Grocery, beauty & Zandu, Navratna & Increase in contribution from e- pharmaceutical platforms Kesh King brands commerce (to Domestic Sales) Focus on D2C- 9.3% Launched websites for Add
Slide 42: Zanducare
Zanducare • Created a Digital Healthcare ecosystem and launched e-commerce portal for Zandu Healthcare products • Catering existing products as well as newly launched e-commerce specific products. • Contributing 8% to Healthcare range sales • 11.4 mn unique visitors in FY23 • Average order value of
Slide 43: Digital first launches
Digital first launches 43
Slide 44: Key Financials
Key Financials
Slide 45: 5 year performance
5 year performance Revenues EBIDTA ( Rs. in crore ) ( Rs. in crore ) 3,187 3,406 2,881 883 952 863 2,695 2,655 727 691 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23* PAT before MAT Credit entitlement of Reported PAT previous years ( Rs. in crore ) ( Rs. in crore ) *Impact of 839 unprecedented 60
Slide 46: Margin Profile
Margin Profile Gross Margins EBIDTA Margins ( %) ( %) 67.0% 67.7% 66.3% 30.7% 30.1% 65.7% 27.0% 26.0% 25.3% 26.9% 64.7% 65.0% FY19 FY20 FY21 FY22 FY23 FY23 w/o FY19 FY20 FY21 FY22 FY23 FY23 w/o TMC & TMC & Brillare Brillare Impact of unprecedented Higher margins on account of inflation higher salien
Slide 47: Key Ratios
Key Ratios Debt Equity Ratio ROE ROCE* On Adjusted PAT*( %) On Adjusted PAT*(%) 0.13 40.5% 0.12 38.9% 36.6% 46.3% 41.0% 38.1% 28.1% 25.5% 31.4% 27.1% 0.05 0.05 0.03 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 *On Adjusted PAT and excluding MAT Credit availed for earlie
Slide 48: Rewarding Shareholders
Rewarding Shareholders Dividends paid Share Buyback (Rs. in crore) Rs. In crore Dividend Payout* 400.0 100% 192.0 355.6 355.6 355.6 350.0 90% 185.3 78% 80% 300.0 60% 60% 70% 250.0 60% 59% 57% 200.0 181.6 181.6 50% 161.2 150.0 40% 30% 100.0 20% 50.0 10% - 0% FY19 FY20 FY21 FY22 FY23 2020 2022 2023 *O
Slide 49: Key Investment Rationale
Key Investment Rationale High gross margins of ~65% Strong management; mix of promoters and EBIDTA margins of >25% professionals; qualified despite one of the highest and experienced Board A&P spends of >16% Debt-free company Growth + cost reduction = despite acquisitions Increased topline and worth
Slide 50: ESG initiatives & Awards
ESG initiatives & Awards
Slide 51: Environmental Initiatives
Environmental Initiatives Minimizing fossil fuel use Water Conservation Plastic Management 8% 15% 13% 10,204 MT 50% Reduction in energy Increase in Reduction in water consumption in renewable energy consumption in FY23 Waste processed via Usage of Post-Consumer EPR, accounting for Recycled Low Densi
Slide 52: Sustainable Sourcing
Sustainable Sourcing Farmer engagement & Rare Herb Cultivation 60% 29% Input materials Inputs sourced sourced from directly from within or MSMEs/ small proximate districts producers Cultivation of Chirayta (left) and Kutki (right) in high Kapur Kachri cultivated at altitude regions of western Himala
Slide 53: CSR Initiatives
CSR Initiatives Key Focus areas Enhancing Promoting Providing clean Promoting Social Sanitation vocational healthcare water education upliftment facilities in skills programs rural areas 41.1 cr 70,000 CSR spends in last Community lives 5 years touched in FY23 53
Slide 54: Strengthening our Governance
Strengthening our Governance Reduction of Pledge Experienced 3 women 90.5% eminent Directors - Independent Non Executive Among the Directors with Chairman highest in 40.1% diverse 32.4% industry. backgrounds Jun'20 Mar'23 Jul'23 A defined Digitalization of Promoter debt 96% compliance controls & and
Slide 55: Major Awards & Accolades
Major Awards & Accolades Featured in Forbes India’s Super 50 List (2017) Featured in Limca Book of Company of the Iconic Brands of India ET Bengal Corporate Awards by Records, for Navratna’s year– FMCG – BoroPlus by Economic Times (2022 & 2018) “Saarthi 2.0” campaign by CNBC-Awaaz Economic Times (20
Slide 56: Thank you
Thank you Contact Us Emami Limited Emami Tower Contact : +91-33-66136264 687, Anandapur, E.M. Bypass Email: investors@emamigroup.com Kolkata, 700107, West Bengal, India Website: www.emamiltd.in ~15% 56