Slide 1: Company Overview May 2017
© emami limited Making people healthy & beautiful, naturally Company Overview May 2017 MENTHO [TT = /OIUS Navratna “ORS ZANDU “ {TTS TAIN Ken win |g ae hea
Slide 2: Some of the statements made in this presentation may look forward looking information that
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 GDP grew by 7.0% in Benchmark Indices, Nifty Q3FY17 despite Industrial Output grew CPI and WPI jump to 3.8% & Sensex grew strongly by Demonetization. GDP by 2.7% in Feb’17 and by and 5.7% respectively in Mar’17 19% and 17% expected to grow by 0.4% YTD. respectively in FY17. 7.1% in
Slide 4: FMCG Sector…Key Growth Drivers
FMCG Sector…Key Growth Drivers Rural FMCG Market to grow @14% CAGR Climbing up the ladder - Per Capita Income India’s Consumer Confidence Index To reach $ 220 bn by 2025 to grow 5x in 2 decades to ` 2.7 lacs by 2030 highest among 61 global markets 1% 1% 3% 6% 136 134 133 25% 131 131131 129 130 128 4
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. Stock Split from ` 10 to ` 2/- Launched Mentho Plus Balm Public issue of 50 Lac shares. Listed on NSE Commenced operations at Launched Fair & Ha
Slide 7: Shareholding Pattern…as on 31.03.2017
Shareholding Pattern…as on 31.03.2017 Others 8.5% Listed on the NSE, BSE and Kolkata stock exchanges FII & MF's Market capitalization of nearly ` 250 bn (US$ 3.8 bn) 18.8% Major Institutional Investors Matthews Aberdeen Promoters Nomura 72.7% BMO Others Birla Sunlife ~45x returns to investors follow
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, Ex-Rajya Sabha member 3 Sri S. K. Goenka 11 Smt. Rama Bijapurkar, Eminent consumer and m
Slide 9: Snapshot of Major Brands
Snapshot of Major Brands Market Size Market Size Market Share (%) Brands Segment (` in bn.) ($ in Mn) 2011 2016 Navratna Oil Cooling oil 8.5 bn 131 mn 52% 61% BoroPlus Cream Antiseptic Cream 4.6 bn 71 mn 75% 70% Zandu & Mentho Balms 9.0 bn 139 mn 56% 59% Plus Balms Fair & Handsome Men's Fairness Cre
Slide 10: Navratna Oil
Navratna Oil Growing at a CAGR of 12% in last 6 years Market Size ` 8.5 bn ($ 131 mn) Commissioned some of the most visible brand ambassadors Market Share 61% (Amitabh Bachchan, Shahrukh Khan, and Mahesh Babu, Chiranjeevi and Upendra for South) Launched brand extension, Navratna Almond Cool Oil prov
Slide 11: BoroPlus
BoroPlus Antiseptic Cream growing at a CAGR of 11% in last 6 years Market Size ` 4.6 bn ( $ 71 mn) Largest selling antiseptic cream not only in India but also in Ukraine, Market Share 70% Russia and Nepal Boroplus Brand ranked 54th among India’s 100 most trusted brands by Economic Times Brand Equity
Slide 12: Fair & Handsome
Fair & Handsome Fairness Cream growing at a CAGR of 11% in last 6 years Market Size ` 3.9 bn ( $ 59 mn) Market Share 60% Re-launched with new formulation and packaging providing 5 Key benefits namely –Sweat Absorption, Oil Control, Sun Protection, Dark Spot Reduction and Long Lasting fairness. Launc
Slide 13: Navratna Cool Talc
Navratna Cool Talc Growing at a CAGR of 19% over last 6 years. Market Size ` 5.5 bn ($ 84 mn) An innovative launch in the talcum powder category; with Market Share 26% cooling properties. Launched new variant “Navratna i-Cool Talc” with intelligent sweat sense technology releasing instant cooling wh
Slide 14: Kesh King
Kesh King Acquired control on 12th June, 2015. Kesh King brand portfolio includes Ayurvedic Medicinal Oil, Aloe Vera Market Size ` 7.2 bn ( $ 111 mn) Herbal Shampoo and Ayurvedic Capsules for complete hair scalp Market Share 34% treatment. Superior Gross & EBIDTA Margins. Launched 60ml SKU of Kesh K
Slide 15: HE Range
HE Range Relaunched HE Deodorants with an easy to use premium packaging Forayed into “No-Gas” Category”– Passion & Hypnotic fragrances. ICY Collection- Offering cooling effect on users along with long lasting fragrance Introduced “HE-On the Go” Waterless Face Wash, in Apr ’17. With the goodness of A
Slide 16: 7 Oils in One
7 Oils in One Launched in April 2014 Combination of 7 different types of oils - almond, coconut, Amla, argan, olive, walnut and jojoba offer an expert formulation for damage repair and give superior nourishment. Brand endorsed by Bollywood actress Yami Gautam. 15
Slide 17: Health Care Range
Health Care Range Indian Healthcare Opportunity Leveraging the India Health Opportunity: Rise in chronic health issue due to unhealthy lifestyle Key health need areas identified Robust innovation funnel with breakthrough Growing consciousness that health needs to be actively products in place manage
Slide 18: Pain Management
Pain Management Balms growing at a CAGR of 10% over last 6 years Market Size ` 9.0 bn ($ 139 mn) Zandu, a dominant player in pain management category, Market Share 59% ranked among India’s most trusted brands by Brand Equity Survey, 2016 Entered high growth modern formats to strengthen Zandu’s posit
Slide 19: Domestic Distribution
Domestic Distribution Domestic Sales Split Factory South North 20% 32% Mother Depots West East 29% 19% Depots Initiated van operations Modern Trade Rural Super Project Dhanush to Distributors increase rural reach Stockist Distributors Stockists Initiated Project RACE to increase Urban reach Direct C
Slide 20: International Business
International Business CAGR of 10% over last 6 years 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 11% of the total consolidated revenues. Presence in International Ma
Slide 21: International Business
International Business MENAP CIS 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. Increased marketing inputs with improved Apart from Russia, increasing focus on distribution. Ukraine, Kazak
Slide 22: Celebrity Endorsements
Celebrity Endorsements 21
Slide 23: 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 24: Operations
Operations 8 manufacturing facilities; 3 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Overseas manufacturing facility at Bangladesh Most of the facilities are cGMP and ISO 9000 compliant Units follow highest standards of safety and environment protection New unit at Pacharia,
Slide 25: Growing Robustly
Growing Robustly Revenues ` in crores EBIDTA 759 2,533 684 2,394 2,068 543 1,610 1,728 447 350 2012-13 2013-14 2014-15 2015-16 2016-17 2012-13 2013-14 2014-15 2015-16 2016-17 Cash Profits* Market Capitalization 617 649 25,000 516 21,900 21,200 445 509 8,808 9,917 2012-13 2013-14 2014-15 2015-16 2016
Slide 26: A&P Expenses as a % to sales
A&P Expenses Rs. in Million % to sales 5,000 18.0% 17.5% 20.0% 4,500 18.0% 15.6% 15.9% A&P Expenses as a % to sales 4,000 14.7% 16.0% 3,500 14.0% ` in Mn. 3,000 12.0% 4,428 2,500 4,305 10.0% 3,292 2,000 2,510 8.0% 2,547 1,500 6.0% 1,000 4.0% 500 2.0% - 0.0% 2012-13 2013-14 2014-15 2015-16 2016-17 Mo
Slide 27: Dividend (%)
Dividends Special Dividend Dividend Payout(%) 900% 60% 54% 800% 46% 50% 700% 46% 45% Dividend (%) Pay-Out (%) 600% 400% 39% 40% 35% 31% 500% 27% 31%* 30% 29%* 400% 800% 700% 700% 700% 700% 300% 20% 200% 350% 400% 300% 10% 100% 225% 225% 0% 0% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2
Slide 28: Summarized Balance Sheet
Summarized Balance Sheet ₹ in millions Audited Audited SL. EQUITY & LIABILITIES SL. ASSETS As at 31.03.17 As at 31.03.16 As at 31.03.17 As at 31.03.16 Equity 1 Non Current Assets (a) Equity Share capital 227 227 (a) Property, Plant and Equipment 6,966 4,141 (b) Other Equity 17,320 15,889 (b) Capital
Slide 29: Awards & Accolades
Awards & Accolades Emami ranked 87th among BT-500 Most Valuable Companies of India Rankings 2015 by Business Today. Emami Limited was the proud recipient of the “Golden Peacock Innovation Management Award” for the year 2016 in the FMCG Sector. Emami featured in the “SUPER 50 Companies” listing by Fo
Slide 30: Operations
Operations Emami’s manufacturing units have received many awards in the sectors of Manufacturing excellence, Health & Safety- Received “Greentech Safety Award - 2014” in the Gold Category. Awarded, Arogya World’s - “Healthy Workplace Gold Award– 2014”. Abhoypur unit accredited with ISO 14001:2004 an
Slide 31: 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 32: Thank you
Thank you Now. émami Making people Healthy & Beautiful, Naturally