Emami Limited · NSE:EMAMILTD
Emami — Investor Presentation (February 2017)
33 slides from Emami's investor presentation, February 2017
Slide 1: Company Overview February 2017
Company Overview February 2017
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 Benchmark Indices back to GDP grew by 7.3% in Industrial Output grew CPI eases to 3.4% while pre-demonetization levels Q2FY17. GDP growth by 5.7% in Nov’16 WPI inches higher at 3.4% in Jan’17. Nifty & Sensex expected to slow down despite demonetization. in Dec’16 grew by 9% and 7% t
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 2nd highest among 61 global markets 1% 1% 3% 6% 134 25% 131 131 131 129 130 128 46%
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. Listed on NSE Launched Fair & Handsome Acquired Hair & S
Slide 7: Shareholding Pattern as on 31.12.2016
Shareholding Pattern…as on 31.12.2016 Others 8.1% Listed on the NSE, BSE and Kolkata stock exchanges FII & MF's Market capitalization of more than ` 230 bn (US$ 3.4 bn) 19.1% Major Institutional Investors Matthews Aberdeen Promoters BMO 72.7% SBI Others T. Rowe Price ~43x 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 8.6 bn 128 mn 54% 60% BoroPlus Cream Antiseptic Cream 4.3 bn 64 mn 75% 72% Zandu & Mentho Balms 8.5 bn 128 mn 56% 60% Plus Balms Fair & Handsome Men's Fairness Cre
Slide 10: Navratna Oil
Navratna Oil Growing at a CAGR of 12% in last 5 years Market Size ` 8.6 bn ($ 128 mn) Navratna Brand has been ranked 3rd among India’s most Market Share 60% trusted brands in hair oil category by Brand Equity Survey, 2015 Commissioned some of the most visible brand ambassadors (Amitabh Bachchan, Sha
Slide 11: BoroPlus
BoroPlus Antiseptic Cream growing at a CAGR of 10% in last 5 years Market Size ` 4.3 bn ( $ 64 mn) Largest selling antiseptic cream not only in India but also in Ukraine, Market Share 72% Russia and Nepal Boroplus Brand ranked 18th among India’s most trusted brands in Personal care category by Brand
Slide 12: Fair & Handsome
Fair & Handsome Fairness cream growing at a CAGR of 15% in last 5 years Market Size ` 3.9 bn ( $ 58 mn) Market Share 59% 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. Fair
Slide 13: Navratna Cool Talc
Navratna Cool Talc Growing at a CAGR of 18% over last 5 years. Market Size ` 4.9 bn ($ 73 mn) An innovative launch in the talcum powder category; with Market Share 27% 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 ` 6.4 bn ( $ 96 mn) Herbal Shampoo and Ayurvedic Capsules for complete hair scalp Market Share 36% treatment. Superior Gross & EBIDTA Margins. Launched 60ml SKU of Kesh Ki
Slide 15: HE Deodorants and 7 Oils in One
HE Deodorants Relaunched HE Deodorants with an easy to use premium packaging Introduced a new fragrance “HE Respect” Forayed into “No-Gas” Category”– Passion & Hypnotic fragrances. ICY Collection- Offering cooling effect on users along with long lasting fragrance Advantage for Emami over competitors
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 Growing at a CAGR of 12% over last 5 years Market Size ` 8.5 bn ($ 128 mn) Zandu, a dominant player in pain management category, Market Share 60% ranked 3rd among India’s most trusted brands in OTC Personal care category by Brand Equity Survey, 2015 Zandu Balms re-launc
Slide 18: New Launches
New Launches HE Deo ‘No Gas’ Range, ‘Icy Cool’ Collection and HE ‘Respect’ Navratna i-Cool Talc Navratna Almond Cool Oil Launched in March & Apr’16 Launched in Apr’16 Launched in Apr’16 Powered by an A value added cool oil ‘Intelligent Sweat providing nourishing Sense’ technology, the goodness of 9
Slide 19: Domestic Distribution
Domestic Distribution Domestic Sales Split Factory South North 20% 32% Mother Depots West 29% East Depots 19% Modern Trade Rural Super Project Swadesh Distributors Secondary Sales Stockist Distributors Stockists Automation Process- “Outreach” Direct Coverage in Wholesalers Sub Stockists 13,300+ vill
Slide 20: International Business
International Business CAGR of 16% over last 5 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 14% of the total consolidated revenues. Presence in International Ma
Slide 21: 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. Increased marketing inputs with improved Apart from Russia, increasing focus on distribution. Ukraine, Kaz
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 7 manufacturing facilities; 2 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 State of the art new
Slide 25: Growing Robustly
Growing Robustly Revenues ` in crores EBIDTA 684 2,394 2,068 543 1,610 1,728 447 1,381 350 296 2011-12 2012-13 2013-14 2014-15 2015-16 2011-12 2012-13 2013-14 2014-15 2015-16 Cash Profits* Market Capitalization 617 22,800 516 21,900 509 377 445 8,808 9,917 6,101 2011-12 2012-13 2013-14 2014-15 2015-
Slide 26: A&P Expenses as a % to sales
A&P Expenses Rs. in Million % to sales 18.0% 5,000 20.0% 4,500 15.9% 18.0% 15.6% A&P Expenses as a % to sales 15.2% 4,000 14.7% 16.0% 3,500 14.0% ` in Mn. 3,000 12.0% 4,305 2,500 10.0% 2,000 8.0% 2,101 2,510 2,547 1,500 3,292 6.0% 1,000 4.0% 500 2.0% - 0.0% 2011-12 2012-13 2013-14 2014-15 2015-16 Ne
Slide 27: Dividend (%)
Dividends 900% Special Dividend Dividend Payout(%) 60% 800% 54% 46% 50% 700% 43% 46% 45% 600% 400% 40% 35% 39% Dividend (%) Pay-Out (%) 31% 500% 27% 31% 30% 400% 800% 700% 700% 700% 300% 20% 50% 200% 400% 350% 300% 10% 250% 225% 225% 100% 0% 0% 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Slide 28: Summarized Balance Sheet
Summarized Balance Sheet ₹ in Lacs S.N. ASSETS As at 30.09.16 As at 31.03.16 S.N. EQUITY AND LIABILITIES As at 30.09.16 As at 31.03.16 1 Non Current Assets Equity (a) Property, Plant and Equipment 42,838 41,405 (a) Equity Share capital 2,270 2,270 (b) Capital work-in-progress 16,886 6,164 (b) Other
Slide 29: 9MFY17 Performance
9MFY17 Performance ` in Million 19,549 4,893 5,810 4,467 17,932 5,003 9MFY16 9MFY17 9MFY16 9MFY17 9MFY16 9MFY17 SALES EBIDTA CASH PROFIT* However, PAT at ₹ 2,571 mn was lesser compared to 9MFY16 because of amortization of Kesh King intangibles by ₹ 1,994 mns against ₹ 1373 mns in the corresponding p
Slide 30: 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 31: 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 32: 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 33: Thank you
Thank you Now. émami Making people Healthy & Beautiful, Naturally