Slide 1: Company Overview
Company Overview November 2015
Slide 2: Forward-looking statements 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 contingencies t
Slide 3: Economy Overview
Economy Overview Q1FY16 GDP grows by 7%. RBI lowers FY16 Disinflation continues. WPI slips to -4.5% in Sep’15 GDP estimate to 7.4% (from 7.6% earlier) CPI WPI 8.4% 7.5% 5.4% 5.2% 5.4% 7.0% 5.1% 4.9% 5.0% 6.7% 6.6% 4.4% 3.7% 3.7% Jan'15 Feb'15 Mar'15 Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Q1FY15 Q
Slide 4: FMCG Sector…Key Growth Drivers
FMCG Sector…Key Growth Drivers Rural FMCG Market to grow @18% CAGR Climbing up the ladder - Per Capita Income India’s Consumer Confidence Index To reach $ 100 bn by 2025 to grow 5x in 2 decades to ` 2.7 lacs by 2030 at a 4 year high 1% 1% 3% 6% 25% 131 130 46% 129 128 Rural 126 Rural 40% 93% Urban 7
Slide 5: Company Overview
Company Overview Flagship company of the Category creator with a Established in 1974, the Emami Group and one of differentiated niche Entered mainstream Company was promoted the leading & fastest positioning thereby categories to reach out to by Mr. R.S. Agarwal and growing personal and gaining mark
Slide 6: The Journey
The Journey Emami started with Launched Boroplus meagre capital Antiseptic cream Launched Navratna Oil Listed on BSE Acquired Himani Ltd. Issued 1:1 Bonus. Launched Stock Split from ` 10 to ` 2/- Mentho Plus Balm Public issue of 50 Lac shares. Acquired controlling stake in Listed on NSE Fravin PTY L
Slide 7: Shareholding Pattern…as on 30.09.2015
Shareholding Pattern…as on 30.09.2015 Others 9.7% Listed on the NSE, BSE and Kolkata stock exchanges FII & MF's Market capitalization of nearly ` 240 bn (US$ 3.7 bn) 17.6% Major Institutional Investors Smallcap World Fund Promoters Others 72.7% Matthews ~45x returns to investors following the public
Slide 8: Board of Directors
Board of Directors S.N. Promoter Directors S.N. Independent Directors 1 Sri R. S. Agarwal 9 Sri K. N. Memani, ex-Country Head of E&Y, India 2 Sri R. S. Goenka 10 Sri Y. P. Trivedi, eminent tax expert & advocate, Rajya Sabha member 3 Sri S. K. Goenka 11 Smt. Rama Bijapurkar, Eminent consumer and mark
Slide 9: Consumer Care Range
Consumer Care Range Snapshot of Major Brands Market Size Market Size Market Share (%) Brands Segment (` in bn.) ($ in Mns) 2010 2015 Navratna Oil Cooling oil 7.5 bn 114 mn 49% 65% Boroplus Cream Antiseptic Cream 4.4 bn 67 mn 74% 76% Fair & Handsome Men's Fairness Cream 3.8 bn 58 mn 60% 59% Navratna
Slide 10: Navratna Oil
Navratna Oil Sales grew by 18% in FY15 Market Size ` 7.5 bn ($ 114 mn) Navratna Brand has been ranked 3rd among India’s most Market Share 65% trusted brands in hair oil category by Brand Equity Survey, 2014 Commissioned some of the most visible brand ambassadors (Amitabh Bachchan, Shahrukh Khan, and
Slide 11: Boroplus Antiseptic Cream
Boroplus Antiseptic Cream Sales grew by 11% in FY15 Market Size ` 4.4 bn ( $ 67 mn) Largest selling antiseptic cream not only in India but also in Ukraine, Market Share 76% Russia and Nepal Boroplus Brand ranked 18th among India’s most trusted brands in Personal care category by Brand Equity Survey,
Slide 12: Fair & Handsome
Fair & Handsome Sales grew by 15% in FY15 Market Size ` 3.8 bn ( $ 58 mn) Market Share 59% Launched in October 2005; first fairness cream for men in India Fair and Handsome ranked 22nd among India’s most trusted brands in Personal care category by Brand Equity Survey, 2014 Growing at CAGR of 15% in
Slide 13: Navratna Cool Talc
Navratna Cool Talc Sales grew by 32% in FY15 Market Size ` 4.4 bn ($ 67 mn) An innovative launch in the talcum powder category; with Market Share 27% cooling properties. Introduced attractive “twisted pack” Launched new Variant “Orangy Blast” - Shruti Haasan joins the Navratna Cool Talc endorsers’ c
Slide 14: Kesh King Range
Kesh King Range Acquired control on 12th June, 2015. Launched in 2009, Kesh King brand portfolio includes Ayurvedic Medicinal Oil, Aloe Vera Herbal Shampoo and Ayurvedic Capsules for complete hair scalp treatment. No. 1 player in the category with 32% Value Market Share (MAT Mar’15) with a presence
Slide 15: HE Deodorant and SHE Comfort
HE Deodorant Largest and fastest growing category in the male grooming segment as the level of penetration level is very low. Advantage for Emami over competitors, with brand endorsement by Bollywood superstar Hrithik Roshan No brand having a substantial leadership in the cluttered Deodorant segment
Slide 16: Health Care Range
Health Care Range Indian Healthcare Opportunity Leveraging the India Health Opportunity: Key health need areas identified Rise in chronic health issue due to unhealthy lifestyle Robust innovation funnel with breakthrough products in place Growing consciousness that health needs to be actively manage
Slide 17: Zandu Balm & Mentho Plus Balm
Zandu Balm & Mentho Plus Balm Sales grew by 16% in FY15 Zandu, a dominant player in pain management category, ranked 3rd among India’s most trusted brands in OTC Personal care category by Brand Equity Survey, 2014 Launched extension Zandu Balm Ultra Power a strong formulation fortified with potent a
Slide 18: Domestic Distribution
Domestic Distribution Initiated Secondary Factory Sales Automation Process- “Outreach” Mother Depots 1,100+ Installations Depots contributing 97% of Sales. Modern Trade Rural Super Direct Coverage in Distributors Stockist Distributors Stockists ~12,100 villages with population less than 50,000. Whol
Slide 19: International Business
International Business Sales grew by 44% in FY15. Divided into four clusters, which are : Middle East, North Africa & Pakistan (MENAP), SAARC & South East Asia (SSEA), CIS and Eastern Europe (CISEE) and AFRICA Contributes around 14% of the total consolidated revenues. Presence in International Marke
Slide 20: International Business
International Business MENAP CISEE Targeting Arab consumers along with Indian diaspora Launch of new products are on track to boost with relevant products and increased media spends. the sales. New product launch planned till Increased marketing inputs with improved 2016-17. distribution. Apart from
Slide 21: Celebrity Endorsements
eee Celebrity Endorsements
Slide 22: Research & Development
Research & Development Focus: Product innovation, product differentiation, cost control and maintaining excellent product quality Team comprises qualified Ayurvedacharyas and specialized Ayurveda scientists; advisory panel comprising top Ayurvedic experts A modern fully equipped laboratory with cGMP
Slide 23: Operations
Operations 7 manufacturing facilities; 2 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Set up first overseas manufacturing facility at Bangladesh Most of the facilities are cGMP and ISO 9000 compliant Units follow highest standards of safety and environment protection Land acq
Slide 24: Growing Robustly
Growing Robustly ` in crores 2,217 486 1,821 402 1,699 1,454 315 1,247 259 229 2010-11 2011-12 2012-13 2013-14 2014-15 2010-11 2011-12 2012-13 2013-14 2014-15 Revenues PAT 540 ~ 24,000 441 17,930 347 297 253 10,763 9,098 5,143 31.12.2011 31.12.2012 31.12.2013 31.12.2014 Nov-15 2010-11 2011-12 2012-1
Slide 25: A&P Expenses as a % to sales
A&P Expenses Rs. in Million % to sales 4,500 17.7% 18.0% 17.6% 4,000 17.5% A&P Expenses as a % to sales 3,500 17.0% 16.4% 3,000 16.5% ` in Mns. 15.8% 2,500 3,919 16.0% 15.2% 2,000 2,790 15.5% 2,194 1,500 2,290 15.0% 2,774 1,000 14.5% 500 14.0% - 13.5% 2010-11 2011-12 2012-13 2013-14 2014-15 Nearly `
Slide 26: Dividend (%)
Dividends 900% 60% Special Dividend Dividend Payout 54% 800% 45% 46% 50% 700% 600% 400% 40% Dividend (%) Pay-Out (%) 39% 500% 27% 30% 400% 800% 700% 700% 300% 20% 200% 400% 350% 10% 100% 0% 0% 2010-11 2011-12 2012-13 2013-14 2014-15 26
Slide 27: Summarized Balance Sheet
Summarized Balance Sheet ` in Mns As at As at As at As at S.N. LIABILITIES S.N. ASSETS 31.03.2015 31.03.2014 31.03.2015 31.03.2014 1 Shareholders Fund 12,306 9,321 1 Non-Current Assets 5,320 4,566 a. Share Capital 227 227 Net Fixed Assets 4,776 4,078 b. Reserves and Surplus 12,079 9,094 Goodwill On
Slide 28: Key Highlights…FY15
Key Highlights…FY15 Working Capital (holding period) Average Inventory holding decreased from 28 days to 21 days Average collection period increased from 16 days to 17 days Average Payment Period increased from 29 to 32 days Average Advance period decreased from 20 to 11 days Net working Capital imp
Slide 29: H1FY16 Performance
H1FY16 Performance ` in Millions + 19.9% + 33.9% + 37.2% 11,645 2,520 2,428 1,882 1,770 9,713 H1FY15 H1FY16 H1FY15 H1FY16 H1FY15 H1FY16 SALES EBIDTA CASH PROFIT* However, PAT degrew by 8.9% on account of Amortization of Kesh King Intangible assets for ` 756.4 mns. *Cash Profits = PAT+ Depreciation &
Slide 30: Awards & Accolades
Awards & Accolades Corporate Emami ranked 84th among BT-500 Most Valuable Companies of India Rankings 2015 by Business Today Emami featured in the maiden “SUPER 50 Companies” listing by Forbes India with knowledge support from PwC, India. Emami ranked 112th in “Business India’s Super 100 Companies”
Slide 31: Awards & Accolades
Awards & Accolades Brands The 2015 Brand Trust Report, India, of TRA (formerly Trust Research Advisory) comparing the 'trust' held in brands, ranks Emami’s brands as the most trusted in the Diversified FMCG category Zandu Balm ranked 58th and Boroplus ranked 85th among the Top 100 Brands in the Bran
Slide 32: Operations
Operations BT Road unit received “Greentech Safety Award - 2014” in the Gold Category. Abhoypur unit accredited with ISO 14001:2004 and ISO 18001:2007 accreditation signifying compliance with Environment management system and Occupational health and safety management system Abhoypur unit received GO
Slide 33: Key Investment Highlights
Key Investment Highlights One of the fastest growing FMCG company Niche category player + innovator – in Therapeutic and Ayurvedic segment - strong entry barriers for the competition Key brands are strong market leaders in their respective categories Bigger basket of power brands and entry in new se
Slide 34: Thank you
Thank you No, emami Making people Healthy & Beautiful, Naturally