Slide 1: Investor Presentation May 2015
Investor Presentation May 2015
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: Economy Overview
Economy Overview GDP expected to grow at 7.4% in FY15. GDP grew by 6.5%, 8.2% & 7.5% respectively in the Q1, 8.2% 7.5% 7.4% Q2 & Q3FY15. Economy expected to grow at 7.4% in 6.5% FY15 Capital markets grew by ~25% in FY15 on account of Q1FY15 Q2FY15 Q3FY15 FY15e stable government and strong positive s
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 leads the Nielsen’s Consumer To reach $ 100 bn by 2025 to grow 5x in 2 decades to ` 2.7 lacs by 2030 Confidence Index for the 3rd 1% 1% 3% Consecutive Quarter 6% 25% 46% 129 128 126 Ru
Slide 5: Company Overview
Company Overview Flagship company of the Category creator with a Emami Group and one of Established in 1974, the differentiated niche Entered mainstream the leading & fastest Company was promoted positioning thereby categories to reach out to growing personal and by Mr. R.S. Agarwal and gaining mark
Slide 6: The Journey
The Journey Launched Boroplus Emami started with Antiseptic cream meagre capital Launched Navratna Oil Merged with Himani Acquired Himani Ltd. Issued 1:1 Bonus. Launched Stock Split from ` 10 to ` 2/- Mentho Plus Balm Listed on BSE Acquired controlling Merged JB Public issue of 50 Lac shares. stake
Slide 7: Shareholding Pattern…as on 31.03.2015
Shareholding Pattern…as on 31.03.2015 Others 9.3% Listed on the NSE, BSE and Kolkata stock exchanges FII & MF's Market capitalization of over ` 220 bn (US$ 3.4 bn) 18.0% Major Institutional Investors Smallcap World Fund Promoters Others 72.7% Matthews ~40x returns to investors following the public i
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 Sri P. K. Khaitan, Advocate & Sr. Partner of Kh
Slide 9: Consumer Care Division
Consumer Care Division 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 118 mn 49% 65% Boroplus Cream Antiseptic Cream 4.4 bn 69 mn 74% 76% Fair & Handsome Men's Fairness Cream 3.8 bn 60 mn 60% 59% Navrat
Slide 10: Navratna Oil
Navratna Oil Sales grew by 18% in FY15 Market Size ` 7.5 bn ($ 118 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 ( $ 69 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 ( $ 60 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 ($ 69 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: Health Care Division
Health Care Division 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 man
Slide 15: Zandu Balm & Mentho Plus Balm
Zandu Balm & Mentho Plus Balm Sales grew by 16% in FY15 Zandu, a dominant player in pain management category Zandu Balm 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 wit
Slide 16: New Launches
New Launches HE Deodorants She Comfort Category Size ` 21.6 bn ($ 340 mn) Category Size ` 24.2 bn ($ 380mn) * Growth Rate 11% Growth Rate 15% *MAT Dec’14 Largest and fastest growing category in the male Forayed in the feminine hygiene category with grooming segment as the level of penetration level
Slide 17: New Launches
New Launches Fair & Handsome Zandu Balm Emami Instant Fairness Face Wash Ultra Power 7 Oils in One Category Size ` 60.6 bn ($950 mn) Category Size ` 2.0 bn ($ 31 mn) Category Size ` 7.4 bn ($113 mn) Growth Rate 4% Growth Rate 62% Growth Rate 7% Launched to leverage the strong A safe & effective reme
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 Marketing Division
International Marketing Divison 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 Internatio
Slide 20: International Marketing Division
International Marketing Divison MENAP CISEE Growing aggressively at a 3 year CAGR of 50% Launch of new products are on track to boost Targeting Arab consumers along with Indian diaspora the sales. New product launch planned till with relevant products and increased media spends. 2016-17. Increased m
Slide 21: Acquisition
Acquisition Acquired 66.67% controlling stake in Fravin Pty Ltd., in Australia through Dubai subsidiary. Promoted by leading Trichologist and world master hairdresser Peter Francis, Fravin Group manufactures a full range of hair & skin care products that are certified organic by various Internationa
Slide 22: Celebrity Endorsements
eee Celebrity Endorsements
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 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 25: 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 23,000 441 17,930 347 297 253 10,763 9,098 5,143 31.12.2011 31.12.2012 31.12.2013 31.12.2014 14.05.2015 2010-11 2011-12 2012
Slide 26: 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 27: 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 27
Slide 28: 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 29: 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 30: FY15 Performance
FY15 Performance Q4 Q4 5,537 24% 1,403 19% Q4 1,383 25% 4,457 1,180 1,112 Q3 Q3 20% Q3 6,923 18% 2,115 22% 5,847 1,837 1,768 1,507 Q2 Q2 Q2 30% 4,896 20% 16% 4,067 1,133 928 873 800 Q1 Q1 Q1 3,837 4,817 27% 26% 592 750 606 708 17% FY14 FY15 FY14 FY15 FY14 FY15 SALES EBIDTA PAT 30
Slide 31: Awards & Accolades
Awards & Accolades Corporate Emami among Asia's 'Best Under A Billion' 2010 list of companies compiled by the Forbes magazine Emami featured among the “Top 10 Companies as High Earners” and ranked 120th among BT-500 Most Valuable Companies of India in private Sector by Business Today Emami ranked 11
Slide 32: 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 33: 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 34: 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 35: Thank you
Thank you © emami Making people Healthy & Beautiful, Naturally