Slide 1: Company Overview
Company Overview August 2020
Slide 2: 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: Company Overview
Company Overview 3
Slide 4: Key Facts
Key Facts Flagship More than 130 products 28x returns company of the sold every second since Public Issue Emami Group across the globe in 2005* 5 Power brands with market Reach in 4.5 mn leadership Retail Outlets Established in 1974. Promoted by Presence in 60+ Market Cap of Mr. R.S. Agarwal & Count
Slide 5: Business Highlights
Business Highlights One of the fastest growing personal and healthcare businesses in India- FY20 Revenue Split • Revenues growing at a 10 year CAGR of 10%. CSD 4% • EBIDTA growing at a 10 year CAGR of 11%. Int'l Business • Cash Profits growing at a 10 year CAGR of 13%. 16% Superior gross margins
Slide 6: The Journey
The Journey Issued 1:1 Bonus. Public issue. Emami started Launched Acquired Launched Launched Listed on NSE. with a meagre Listed on BSE Stock Split from Navratna Cool Himani Ltd BoroPlus Navratna Launched Fair & capital ₹ 10 to ₹ 2/- Talc Handsome 1974 1978 1982 1989 1995 2004 2005 2007 Launched Fa
Slide 7: Ownership Structure
Ownership Structure As on 7th August 2020 Shareholding Breakup Major Institutional Investors L&T MF DSP BLACKROCK MF Institutional 36.94% OTHERS Promoters PREMJI 53.86% INVEST Others HDFC TRUSTEE 9.20% SBI MF UTI MF BIRLA SUNLIFE MF HDFC LIFE MIRAE ASSET MF INSURANCE 7
Slide 8: Board of Directors
Board of Directors Promoter Directors Mr. R.S. Agarwal Mr. R.S. Goenka Mr. S.K Goenka Mr. Mohan Goenka Mr. A.V. Agarwal Mr. H.V. Agarwal Ms. Priti A Sureka Mr. Prashant Goenka Executive Chairman Whole Time Director Managing Director Whole Time Director Non Executive Director Whole Time Director Whol
Slide 9: Returns to Investors
Returns to Investors As on 14th August 2020 13,700x 28.1x 6.3x QIP Public Issue Maiden Issue 2009 2005 1980 9
Slide 10: Brand Overview
Brand Overview 10
Slide 11: Snapshot of Major Brands
Snapshot of Major Brands ₹ 700 cr + ₹ 550 cr + ~₹ 450 cr Therapeutic Cooling Oils & Antiseptic Creams, Body Lotion, Balms & Ayurvedic Cool Talc Prickly Heat Power & Hygiene Range Healthcare Products ~ ₹ 250 cr ₹ 200 cr + ₹ 150 cr + ~ ₹ 100 cr Ayurvedic Hair and Pain Balm Light Hair Oil Fairness Crea
Slide 12: Snapshot of Major Brands
Snapshot of Major Brands Market Size Market Size Market Brands Segment (₹ in bn.) ($ in mn.) Share (%)* Navratna Oil Cooling oil 10.3 136.1 66% Zandu & Mentho Plus Balms Balms 12.6 167.5 55% BoroPlus Antiseptic Cream Antiseptic Cream 6.5 85.6 74% Fair and Handsome Fairness Men's Fairness Cream 4.0 5
Slide 13: Navratna
Navratna Brand Snapshot Product Portfolio Penetration 15% (Cool Oils) Navratna Cool Oil - India’s No. 1 Therapeutic Cool Oil levels Navratna Extra Thanda Cool Oil - With extra cooling effect those Endorsed by Salman Khan, Varun Dhawan consumers who prefer to have a stronger experience. Jr. NTR
Slide 14: BoroPlus
BoroPlus Brand Snapshot Product Portfolio Penetration 24% (Antiseptic Cream) BoroPlus Antiseptic Cream- Largest selling antiseptic cream levels not only in India but also in Ukraine, Russia and Nepal. Endorsed by Amitabh Bachchan, Kangana Ranaut BoroPlus Doodh Kesar Moisturizing Lotion- Effectiv
Slide 15: Pain Management Range
Pain Management Range Brand Snapshot Product Portfolio Penetration 37% (Balms) Zandu Balm- Largest selling balm in the world. levels Most Trusted Zandu, ranked among Zandu Balm Ultra Power- Safe & effective remedy for severe Brand India’s 100 most trusted pain and aches.. brands by Economic Time
Slide 16: Male Grooming Range
Male Grooming Range Brand Snapshot Product Portfolio Penetrati 4% (Men’s Fairness Fair and Handsome Cream- A category creator in the male grooming on levels Cream) space in India. Endorsed Shah Rukh Khan, by Kartik Aryan Fair and Handsome Laser 12 An advanced whitening and multi benefit Vidyut J
Slide 17: Kesh King
Kesh King Brand Snapshot Product Portfolio Penetration 9% (Ayurvedic Medicinal Oil) Kesh King Ayurvedic Medicinal Oil- Proprietary levels medicinal preparation offering a complete solution for Relaunch Relaunched Kesh King in new hair related problems especially hair fall. Certified to be 2x premi
Slide 18: Healthcare Range
Healthcare Range Brand Snapshot Major products Leveraging Extending the goodness of Digestives & Laxatives- Zandu Pancharishtha, Zandu Nityam the Indian Ayurveda in scientifically- Churna & Tablets. Healthcare proven effective products by Opportunity providing long-term relief Immunity & Lifesty
Slide 19: Other Brands
Other Brands 7 Oils in One - Launched in April 2014, it combines 7 different types of oils - almond, coconut, Amla, argan, olive, walnut and jojoba offering an expert formulation for damage repair and give superior nourishment. Endorsed by Bollywood actress Yami Gautam. Diamond Shine Luxury Crèm
Slide 20: New Launches
New Launches BoroPlus Advanced Anti- BoroPlus Antiseptic BoroPlus Zandu Ayurvedic Germ Hand Sanitizer Moisturizing Soap Aloe Vera Gel Hand Sanitizer Zandu Ayush Kwath 20 Zandu Single Herb Range Powder
Slide 21: International Business Overview
International Business Overview 21
Slide 22: International Presence
International Presence Cluster Wise Revenue Contribution Presence in CIS 60+ Countries OTHERS AFRICA 5% 7% MENAP CIS SAARC 12% 42% SAARC MENAP 34% AFRICA SEA SAARC South Asian Association for Regional Cooperation (Major countries – Bangladesh, Nepal, Sri Lanka etc.) SEA South East Asia (Major countr
Slide 23: International Brand Portfolio
International Brand Portfolio Leadership in International Markets #1 Cooling Oil in Bangladesh, UAE and Saudi Arabia #1 Antiseptic & Healing topical Cream in Russia #1 Men’s Fairness Cream in UAE #2 Men’s Fairness Cream in Saudi Arabia & Bangladesh 23
Slide 24: International Business
International Business MENAP SAARC CIS AFRICA • Targeting Arab • Having its own • Launch of new • Huge potential and consumers along manufacturing products are on special focus given with Indian unit in Bangladesh track to boost the to grow the brands diaspora with and a 3P unit in Sri sales. in the
Slide 25: Business Overview
Business Overview 25
Slide 26: Domestic Footprint
Domestic Footprint As on 31st March 2019 Direct Reach increased from 6.4 Domestic Reach lac in FY16 to at 9.4 lac outlets Outlets in Lacs 3,200+ 3,300+ Distributors Sales Force 9.4 9.4 8.5 7.3 6.4 6.4 250+ 9.4 lac + 6.0 6.3 Super Stockists Direct Retail reach 5.0 6,500+ 4.5 mn Sub Stockists Indirect
Slide 27: Domestic Distribution Network
Domestic Distribution Network Factory Region wise Sales Split Mother Depots Depots South 20% North 32% Modern Trade Rural Super Distributors Stockist Distributors Stockists West 29% Sub East Wholesalers Stockists 19% Retail Trade Rural Trade 27
Slide 28: Operations
Operations Fiscal Benefits Key Recognitions 3 units in Guwahati and 1 Uttaranchal enjoying fiscal benefits Abhoypur unit accredited with ISO 14001:2004 and ISO 18001:2007 Best in Class accreditation Most of the facilities are cGMP and ISO 9000 compliant and follow Received “Health & Safety awards” h
Slide 29: Operations
Operations Manufacturing Units Domestic International Business Business Amingaon, Dongari, Guwahati Maharashtra Abhoypur, Gazipur Guwahati Bangladesh Pacharia Unit Pantnagar, Uttarakhand Pacharia, Guwahati Vapi, Gujarat 300 UPM Fully Abhoypur Unit Automatic Bottle Masat, Packing Line from 29 Silvass
Slide 30: Research & Development
Research & Development Focus: Product innovation, product differentiation, cost control and maintaining excellent product quality Advisory panel Team comprises qualified comprising top Ayurvedic Ayurvedacharyas and specialized experts Ayurveda scientists; Set up a 30,000 sq. ft. State- A modern full
Slide 31: Research & Development
Research & Development Awarded the Sustained Investments “Golden Peacock Innovation Management Award” in Research & Development for the year 2016 in the FMCG Sector and “Golden Peacock Innovative Product/Service Award” for the year 2019 for “Kesh King Oil Applicator” INR in Mns 231.0 234.2 222.0 217
Slide 32: A&P Spends
A&P Spends ₹ in Mns % of Sales 4,800 18.5% 18.6% 4,696 4,702 4,711 18.4% 4,700 18.2% 4,600 18.0% 18.0% Nearly 4,500 17.7% 17.8% ₹23 bn 4,428 invested in 4,400 17.6% A&P in last 5 4,305 17.5% 17.4% years 4,300 17.4% 17.2% 4,200 17.0% 4,100 16.8% FY16 FY17 FY18 FY19 FY20 32
Slide 33: Celebrity endorsements
Emami is a pioneer in engaging celebrities to endorse its brands. These comprise renowned names from India’s film industry, sportspersons and performing artists. Emami has more than 60 celebrities associated with its brands. Every year, Emami invests ₹ 50-150 mn to engage new celebrities. Bollywood
Slide 34: Growing Robustly
Growing Robustly ₹ in Millions Revenues CAGR of EBIDTA CAGR of Cash Profit* CAGR of 10% in last 10 years. 11% in last 10 years. 13% in last 10 years 26,549 6,905 6,392 11,887 2,544 2,437 FY11 FY19 FY11 FY20 FY11 FY20 *Cash Profit = PAT + Depreciation & Amortization 34
Slide 35: Dividend History
Dividend History Special Dividend Dividend Payout(%) 900% 60% 54% 800% 45% 46% 50% 700% Dividend (%) Pay-Out (%) 39% 600% 400% 40% 500% 35% 34% 27% 31% 31% 30% 29% 400% 800% 700% 700% 700% 700% 700% 300% 20% 200% 350% 400% 400% 400% 10% 100% 0% 0% FY11 FY12 FY13 FY14 FY15 FY16* FY17* FY18* FY19* FY2
Slide 36: Summarized Balance Sheet
Summarized Balance Sheet ₹ in Millions As at As at As at As at Sl. ASSETS Sl. EQUITY AND LIABILITIES 31.03.2020 31.03.2019 31.03.2020 31.03.2019 1 Non -Current Assets Equity (a) Property, Plant and Equipment 7,685 7,490 (a) Equity Share capital 453 454 (b) Capital work-in-progress 69 352 (b) Other E
Slide 37: Key Sustainability Initiatives
Key Sustainability Initiatives Minimising Fossil Fuel Usage Reduction in usage of Plastics Initiated use of renewable energy sources Reduced plastic usage by adopting paper tray and energy efficient techniques to minimize technology, foil modification, PVC film fossil fuel usage. modification and Co
Slide 38: CSR Initiatives
CSR Initiatives Enhancing Promoting Vocational Skills Education Promoting Social Upliftment Healthcare Programs Providing Clean Sanitation facilities Water in rural areas ₹ 417 mn contributed towards CSR initiatives in the last 5 years 38
Slide 39: Major Awards & Rankings
Major Awards & Rankings Awarded by the Economic Times Bengal Corporate Awards for its ‘Best Financial Navratna’s “Saarthi 2.0” performance - 2018’ campaign, created a Awarded the “Golden Peacock Innovation record and featured in Management Award” for the prestigious Limca the year 2016 in the Book o
Slide 40: Ratings & Accreditations
Ratings & Accreditations Accreditations Credit Ratings Internal Audit Division accredited with ISO 9001:2008 certification. Rated A1+ for short-term debt by CRISIL signifying high levels of safety. Abhoypur unit Enterprise accredited Risk with ISO Management 14001:2004 system is ISO and ISO 31000 :
Slide 41: Key Investment Highlights
Key Investment Highlights Niche category player + innovator – in Therapeutic and Ayurvedic segment Strong entry Production from barriers for the tax free zones competition Key brands are Superior gross strong market margins in the leaders in their industry respective categories Focus on each Brand w
Slide 42: Thank you
Thank you Contact us Emami Limited Contact - +91-33-66136264 Emami Tower Fax - +91-33-66136600 687, Anandapur, E.M. Bypass Email- investors@emamigroup.com Kolkata, 700107, West Bengal, India Website- www.emamiltd.in