Slide 1: Cover letter to stock exchanges
* cmami limited ernarm Date: 1st June, 2022 The Manager Listing - The Manager - Listing The National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Plot No. C/1, G. Block Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E) Dalal Street Mumbai - 400 051 Mumbai - 400 001 Scrip Code: E
Slide 2: Refuelling Its Growth Spirit - Company Overview June 2022
REFUELLING ITS GROWTH SPIRIT EMAMI LIMITED COMPANY OVERVIEW JUNE 2022
Slide 3: Disclaimer
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 cont
Slide 4: This presentation is segregated into three parts
THIS PRESENTATION IS SEGREGATED INTO THREE PARTS FOR EASY READING 3 PART ONE. About Emami Ltd. PART TWO. Review of Emami’s performance in 2021-22 PART THREE. How are we transforming Emami
Slide 5: Part One: About Emami Ltd
PART ONE 4 ABOUT EMAMI LTD
Slide 6: What you need to know about our company before you proceed
WHAT YOU NEED TO KNOW ABOUT OUR COMPANY BEFORE YOU PROCEED Background 5 Promoted and Headed by the founded by RS founders and the Experienced eminent Agarwal and RS second generation Independent Directors Goenka; commenced promoters; supported on the Board with commercial by a team of diverse backgr
Slide 7: Key Facts
KEY FACTS Category 5 Power brands Flagship creator with a enjoying company of the differentiated market Emami Group niche leadership positioning 6 ~150 products Reach in 4.9 sold every Presence in mn retail second across 60+ countries outlets the world Entered mainstream 38x returns Market categorie
Slide 8: Board of Directors
BOARD OF DIRECTORS PROMOTER DIRECTORS R.S. Agarwal R.S. Goenka S.K Goenka Mohan Goenka A.V. Agarwal H.V. Agarwal Priti A Sureka Prashant Goenka Chairman Emeritus & Non Executive Executive Director Vice Chairman & Non Executive Director Vice Chairman & Executive Director Executive Director Non Execut
Slide 9: Business Structure
BUSINESS STRUCTURE Revenue split in % 3% 3% 16% 15% 8 81% 82% FY21 FY22 Domestic: 81% Domestic: 82% International business: 16% International business: 15% Institutional business: 3% Institutional business: 3%
Slide 10: Key Brands
KEY BRANDS ₹800 crore+ ₹700 crore+ ₹500 crore+ ₹300 crore+ Pain Balms, Healthcare Cool Oils and Cool Talc Antiseptic Creams, Body Ayurvedic Medicinal Oils, products in OTC, Generics & Lotions, Hygiene Range, Aloe Shampoos, Conditioner & Ethicals Vera gel, Petroleum Jelly & Capsules Prickly Heat Powd
Slide 11: Market Leadership Across Categories
MARKET LEADERSHIP ACROSS CATEGORIES Antiseptic Creams Cool Oils Men’s Fairness Creams Balms Others Others 32% Others Zandu & 34% 36% Mentho Plus Fair and Others 55% BoroPlus Navratna Handsome 46% 68% 66% 64% 10 Prickly Heat and Ayurvedic Cool Talc* Medicinal Oils Kesh King Navratna & 29% Others Derm
Slide 12: Locations, manufacturing strengths, global footprint, people
Locations Manufacturing Global footprint People strengths Headquartered in Seven manufacturing Products sold in 60+ Professionals having Kolkata, West Bengal units in India; one in countries across the deep experience in State-of-the-art R&D Bangladesh globe respective centre in Kolkata
Slide 13: Emami's Journey Down the Years
EMAMI’S JOURNEY DOWN THE YEARS Issued 1:1 Bonus. Public issue. Emami started Launched Acquired Himani Launched Launched Listed on NSE. with a meagre Listed on BSE Stock Split from ₹ Navratna Cool Ltd BoroPlus Navratna Launched Fair & capital 10 to ₹ 2/- Talc Handsome 1974 1978 1982 1989 1995 2004 20
Slide 14: Business Highlights
BUSINESS HIGHLIGHTS • One of the fastest • Superior Industry • Production in tax-free growing personal and Margins- zones. healthcare businesses Gross Margins at 66.2% in India • Direct Reach at 9.4 lac EBIDTA Margins before Revenues growing at a outlets. A&P at 46.2% 10-year CAGR of 9% • Best
Slide 15: Ownership Structure
OWNERSHIP STRUCTURE Shareholding break-up Major institutional investors Others DSP BLACKROCK 8.69% MF OTHERS HDFC AMC 14 MIRAE ASSET Institutional Promoters 37.04% 54.27% SBI MF L&T MF KOTAK AMC HDFC LIFE INSURANCE NORGES BANK INVESCO FRANKLIN BIRLA SUNLIFE TEMPLETON KOTAK AMC MF MF VANGUARD As on 3
Slide 16: Power Brands
POWER BRANDS 15
Slide 17: Navratna
NAVRATNA Leading player in Cool oil category the niche cool oil penetration at and cool talc 13% category 16 Navratna Cool Oil’s market Extended to share at 66.4% Extra thanda oil, Gold oil, and Cool Talc Therapy range market share at and cool talc 25.9%* *MAT September 2019
Slide 18: BoroPlus
BOROPLUS India’s trusted Antiseptic Cream multipurpose category No.1 Antiseptic penetration at Cream 26% 17 Extensions in BoroPlus lotions, prickly Antiseptic Cream heat powder, market share at aloevera gel, 68.1% petroleum jelly & hygiene range
Slide 19: Zandu & Mentho Plus
Zandu - largest Balm Balm’s balm brand in category volume ZANDU & India penetration at 39% market share at MENTHO 54.5% PLUS Balms 18
Slide 20: Zandu
ZANDU Health expert for a Offering ayurvedic OTC Range- Major products include Generics and Ethicals Range - Healthcare Range changing solutions for Zandu Pancharishta, Wide range of lifestyle lifestyle- Zandu Nityam, Zandu ayurvedic related health Kesari Jivan, Zandu generic and problems Chyawanpra
Slide 21: Fair and Handsome
FAIR AND HANDSOME First brand to Men's Fairness revolutionize cream category men’s grooming penetration at segment in India 2% 20 Successfully Market share extended into 63.8% face wash
Slide 22: Kesh King
Leading brand Category penetration Market share Revamped brand KESH in the ayurvedic oil at only 7% for ayurvedic oils. at 29.3% and re-launched brand extension- KING space ayurvedic shampoo 21
Slide 23: Market Size and Market Shares
MARKET SIZE AND MARKET SHARES Brands Segment Market Market Vol. Size (₹ bn) Size (US$ Market in mn) share (%) Zandu & Mentho Plus Balms Balms 15.1 200 55% Navratna Oil Cooling oil 9.7 127 66% BoroPlus Antiseptic Cream Antiseptic Cream 6.8 90 68% 22 Kesh King Oil Ayurvedic Medicinal Hair and 9.2 121
Slide 24: Global Presence
GLOBAL PRESENCE CIS c.10% MENA SAARC c.34% c.44% 23 Africa & Ors. c.12% Presence in 60+ Countries SAARC South Asian Association for Regional Cooperation (Major countries – Bangladesh, Nepal, Sri Lanka etc.) MENA Middle East & North Africa (Major countries – KSA, UAE, Qatar, Oman, Kuwait, Bahrain etc
Slide 25: Celebrity Endorsements
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 brands have been associated with more than 60 24 celebrities over the years. • Invested ~₹ 2400 cr in Adv
Slide 26: Emami's Research and Development
30,000 sq. ft. state- of-the-art ultra- modern R&D centre in Kolkata Focus on product Advisory panel innovation, comprising top differentiation, cost ayurvedic experts EMAMI’S control and superior quality RESEARCH AND 25 DEVELOPMENT Team comprises Modern laboratory qualified with cGMP ayurvedacharya
Slide 27: Inorganic Growth Strategy
INORGANIC GROWTH STRATEGY Key Attributes • Market leadership/ high consumer connect • Presence in Niche Category in the Personal & Healthcare space • High Margins • Low MNC Presence/ competitive intensity 26 2008 Zandu 2019 Creme 21, Germany Kesh 2022 Dermi 2015 King cool
Slide 28: Strategic Investments in Startups
STRATEGIC INVESTMENTS IN STARTUPS Key Attributes • Presence in categories like Natural or Organic Personal Care, Ayurveda, Baby Care, Nutraceutical/ Healthcare, Male grooming, Healthy/ Nutritious Food etc. • Unique Product idea • Proof of Concept Current investments in- 27 49.53% 57.36% 20.65% Stake
Slide 29: Part Two: Review of Emami's Performance in 2021-22
PART TWO REVIEW OF 28 EMAMI’S PERFORMANCE IN 2021-22
Slide 30: Challenging FMCG Times; Emami's Performance in FY22
CHALLENGING FMCG TIMES High inflationary levels 2nd and 3rd wave of Industry witnessed leading to a COVID pandemic an all-time high rise deceleration in impacted consumer in input costs due to consumer demand and sentiment and sales geopolitical tensions rural slowdown EMAMI’S PERFORMANCE IN FY22 DE
Slide 31: FY22 Highlights
FY22 HIGHLIGHTS BRAND GROWTH Global Distribution Acquisitions & Strategic Investments Pain Management International revenues E-Commerce grew by Acquired ‘‘Dermicool”, Range grew by 18% grew BY 5% 117%. Contributes 5.5% from Reckitt Benckiser to domestic business Healthcare India Pvt Ltd Ke
Slide 32: Increased Profitability
INCREASED PROFITABILITY 66.2% 65.7% +50 bps Gross Gross margin Gross margin increase in margin %, 2021-22 %, 2018-19 gross margin One of the highest gross margins in the FMCG Industry 31 29.8% 27.0% +280 bps EBIDTA margin EBIDTA margin increase in EBIDTA %, 2021-22 %, 2018-19 EBIDTA margin margin EB
Slide 33: Emami's Segmental Presence Has Wide Room for Growth
EMAMI’S SEGMENTAL PRESENCE HAS WIDE ROOM FOR GROWTH Emami’s products are Being niche, the in niche categories for The Company focused on Company is relatively mass consumers, a rare remunerative product segments protected from interplay of volume and competition value 32 Low penetration – Increased
Slide 34: Part Three: How Are We Transforming Emami
PART THREE HOW ARE WE 33 TRANSFORMING EMAMI
Slide 35: Transforming Emami
TRANSFORMING EMAMI Focus on 1 Revamping Power Brands 2 traditional and 3 Enhanced focus on Health and Hygiene emerging Channels 34 Aggressively driving Optimizing costs - 4 International 5 Investing on brands Business
Slide 36: What a Transforming Emami Intends to Achieve
WHAT A TRANSFORMING EMAMI INTENDS TO ACHIEVE 1 2 3 4 5 Grow existing Expand to Enter new Plough back Increase the brands adjacent categories cost reductions proportion of categories to brand International investments for Business in aggressive overall revenues growth 35 Introduce Blend product Stren
Slide 37: 9 Engines to Re-energise Emami
9 ENGINES TO RE-ENERGISE EMAMI Deepening Re- energizing our Establishing cost 1 research 2 leadership 3 healthcare & hygiene relevance 36 4 Building on brands 5 Driving digitalization 6 Riding e-commerce 7 Widening distribution 8 Deepening governance culture 9 Leveraging financials strong
Slide 38: Building on Power Brands
BUILDING ON POWER BRANDS Introduction Cumulatively of Relevant generate nearly extensions 80% of our revenues 37 Adequate Marked by room for Re-energising our leadership growth Power Brands positions Reinvestment Address to enhance growth market share opportunities
Slide 39: Navratna
Navratna Navratna NAVRATNA Navratna COOL TALG ACTIVE DEO Navratna COOL TALC
Slide 40: Navratna: Strengths, shifts and initiatives
Market leader in a Available in more Successful niche category than 4.9 mn brand Strengths with no significant retailers across extensions competitors the country 4 subtle shifts Initiatives Outcomes From standalone to Introduced premium range (Navratna Gold, Strengthened extensions Therapy Ra
Slide 41: Pain Management
40 PAIN MANAGEMENT
Slide 42: Zandu Balm: Strengths, shifts and initiatives
Zandu Balm as all-round Cumulatively Available in solution provider whereas account for 57% over 2.0 mn Strengths Mentho Plus is positioned of India’s balm retailers across as headache specialist market by value the country 4 subtle shifts Initiatives From single use to • Core markets: Deepen pres
Slide 43: BoroPlus
42 BOROPLUS
Slide 44: BoroPlus: Strengths, shifts and initiatives
Anti-septic Combination of Availability in Gained share in leadership ayurveda and more than 3.2 mn the emollient Strengths positioning boro is effective retail outlets pan- category against yet benign on skin India MNC players 7 subtle shifts Initiatives Desired outcomes From anti-septic to Pro
Slide 45: Healthcare Range
HEALTHCARE RANGE 44
Slide 46: Healthcare Range: Strengths, initiatives, outcomes
Deep knowledge in Products Tie-up with A strong team of ayurveda with a backed by sectoral think- brand Strengths cutting-edge R&D scientific tanks for new representatives for centre accredited by studies for product promotions with AYUSH and NABL efficacy development ayurveda doctors Initiatives Ou
Slide 47: Kesh King
46 KESH KING
Slide 48: Kesh King: Strengths, initiatives, going ahead
Strong Availability in ~9 Leading volume ayurveda lac retail outlets market share of Strengths positioning 29.3% Initiatives Going ahead Strengthened Kesh King as a complete Counter inflationary pressure through consumer Ayurvedic solution for hair fall and allied promos, giving more value to co
Slide 49: Fair and Handsome
emami FAIR ANE HANDSOM I emami FAIR AND Mn FAIR AND HANDSOME
Slide 50: Fair and Handsome: Strengths, initiatives, outcomes
Expert in High brand Market leader Availability in Men’s awareness with 63.8% more than 1.3 mn Strengths Grooming volume market retail outlets pan- for 15 years share India Initiatives Outcomes Going ahead Initiatives Refreshed packaging with ’radiance’ promise on all • Campaign to strengthen the
Slide 51: Dermicool
PRICKLY HEAT row) SOOTHING LAVENT ary. rcaraeayee ; MENTHOL REGULAR DERMICOOL
Slide 52: Dermicool acquisition: background and outcomes
One of the 20% market share in the Pan-India brand with leading high growth and low Direct reach of 1.25 lac Strengths brands in penetrated “Prickly Heat outlets and an Indirect its segment & Cool Talc’’ category reach of ~1.8 mn outlets Background Outcomes Opportunity for Emami Initiatives Acquir
Slide 53: International Business
52 INTERNATIONAL BUSINESS
Slide 54: International Business: strengths and initiatives
Presence Contributing 15% 3 year revenue Strengths in 60+ to overall CAGR of 10% countries Revenues Subtle shifts Key Initiatives Going ahead Acquisitions in • Working on globalizing Indian Herbal & Natural products • Tapping available addition to • Focus top 15 countries (~ 85% of global revenues
Slide 55: Distribution Focus
DISTRIBUTION FOCUS Expanding Rural Footprint – Focus on Project KHOJ Standalone Modern Trade 54 Leveraging the Chemist e commerce Outlet channel Outreach
Slide 56: Driving Digitalization & Analytics
DRIVING DIGITALIZATION & ANALYTICS Focus on new age e- channels for better reach and insights Implemented sales Strategic investments in force automation e-B2B & start-ups to develop (increased D2C digital capabilities productivity) Strategic SFA Investments Graduated the Distributor Multi brand Ret
Slide 57: Strengthening Our Distribution
STRENGTHENING OUR DISTRIBUTION ~50 42 How we have %, erstwhile %, existing strengthened in dependence on dependence on this area wholesale wholesale channel channel 56 Growth in 6.4 9.4 Lacs, outlets, Lacs, outlets, outlets FY16 FY22 4 13 %, contribution %, contribution E-com + from modern from mode
Slide 58: Riding E-commerce
RIDING E-COMMERCE Overview Access Initiatives Goal Created a mix of in- Products available Ensuring on-time Reach ~9-10% of house experts hired across all major availability of stocks, total sales from Ecommerce platforms – faster processing industry along with Marketplaces: purchase order
Slide 59: Strengthening Our Governance
STRENGTHENING OUR GOVERNANCE Principal investor concerns Possibility of pledged High promoter debt shares being revoked 58 How we are addressing investor concerns Promoter debt and pledge reduced substantially upon Committed to pare repayments done promoter debt by sale from the proceeds of of other
Slide 60: Key Investment Rationale
KEY INVESTMENT RATIONALE EBIDTA margins of Debt-free company ~30% despite one of despite acquisitions 1 High gross margins over 66% 2 the highest A&P 3 worth Rs. 3000 cr+ spends of ~16% in 13 years. 59 4 High dividend payout of >40% 5 Rating of A1+ by CRISIL and CARE 6 Strong past performance Strong
Slide 61: Key Sustainability Initiatives
Minimising fossil fuel use Initiated use of renewable energy sources and energy efficient techniques Giving back to the society Reduction in water Emami promotes healthcare, consumption education, rural development and Installed new social upliftment programmes technologies; treated effluent dischar
Slide 62: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 61 Enhancing Promoting Providing Promoting Social Sanitation vocational healthcare clean water education upliftment facilities in skills programs rural areas
Slide 63: Major Awards & Rankings
MAJOR AWARDS & RANKINGS Awarded the ‘Golden Peacock Awarded by the Economic Navratna’s ‘Saarthi 2.0’ campaign, Innovation Management Award’ for the Times Bengal Corporate created a record and featured in the year 2016 in the FMCG Sector and Awards for its ‘Best Financial prestigious Limca Book Of Re
Slide 64: Thank You
Thank You