Slide 1: Cover letter to stock exchanges: Chairman's Speech at 40th AGM
23rd August, 2023 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: EMAMILTD Scrip Code: 531162
Slide 2: 40th Annual General Meeting: Chairman's address, Introduction
40TH ANNUAL GENERAL MEETING EMAMI LIMITED 23rd August, 2023 | Kolkata Address by Shri R S Goenka, Chairman INTRODUCTION: ADAPTING TO CHALLENGES As Swami Vivekananda once said, “In a day, when you don’t come across any problems – you can be sure that you are travelling in a wrong path.” Problems, obs
Slide 3: The Indian FMCG Perspective
Indian growth story forecast. We stand by our conviction and today, we see that the consumption trend pattern for personal care and healthcare products is once again gaining momentum and ayurveda based solutions are increasingly becoming the trusted way of life while more and more Indians are gettin
Slide 4: Digital transformation in FMCG
Digital transformation is also shaking up the FMCG business landscape significantly. As we know, it has made ‘shopping from home’ possible offering convenience with an array of wider range of products and competitive pricing. Today, not only the big players but even small businesses across India are
Slide 5: Emami's Performance Amidst Macro Economy
inflation during the last financial year also affected disposable incomes. Further, with the waning of the pandemic, a sharp decline in the offtake of pain management and immunity-based healthcare products was also registered. By the close of the last financial year though, inflation had begun to mo
Slide 6: Rewarding Shareholders
Dermicool, our newly acquired brand contributed to the overall growth along with Navratna Cool Talc, validating the Company’s leadership in the Prickly Heat & Cool Talc categories. Most of your Company’s major brands increased their household penetration levels during the last financial year. Sustai
Slide 7: Invested Towards Future Growth
years. As a result, an initial shareholder who invested Rs.1,000 for 100 shares of Emami and thereafter invested Rs. 4,000 in the Rights Issue, would presently own shares worth Rs. 9 crores – in other words, initial investment attracted a return of 22,617 times over years. Shareholder’s wealth also
Slide 8: Analytics tools for sales and e-commerce growth
Your Company integrated analytical tools with the handheld devices to capture accurate geographic location, store level information and intervene during the call at the point of purchase. Your Company launched a Beat Optimization tool to minimize travel distance of the MRs within a beat, reduce over
Slide 9: New launches and digital-first brands
products in the domestic business in 2022-23 with a majority being digital-first launches on our D2C portal Zanducare. The Company introduced digital-first brands like 7 Oils in One Organic Oils, Kesh King Organics Shampoo, Zandu Seniorz Range, Zandu Wellness Juices, Zandu Infusions Range, Zandu App
Slide 10: The Beginning of a New Year; Sustainability and Community Initiatives
and communication or even last mile delivery – we are on track to make technological integration in every aspect of our operations. Our international business seems to have stabilized and we are optimistic of a healthy double-digit growth. We have focused on strengthening our core and we look to the
Slide 11: Sustainability at Emami
partners and the local community for a healthy and sustainable future. Sustainability at Emami is integrated into what we do and embedded within the core of our corporate strategy. Our efforts are committed towards environment protection addressing the need to grow the business with a lower carbon f
Slide 12: Sustainability in R&D, packaging and sourcing
To reduce carbon footprint in our R&D initiatives, Emami has undertaken various other steps to drive sustainability. To moderate environment and social impact, the R&D team is constantly engaged in product innovation and technology improvement. In packaging, your Company introduced significant recyc
Slide 13: Investing in Human Capital
various flagship CSR projects like Padho India Padho in education, Badhte Kadam in skill development, Padhenge Hum Padhane Ke Liye in Teachers’ Training, Janakalyan in Social Upliftment and Swashthya in Healthcare. These initiatives touched the lives of more than 70,000 individuals during the year.
Slide 14: Conclusion
CONCLUSION As I conclude, I would like to take this opportunity to repose my faith once again in our current leadership team comprising the second- generation Promoter Directors, who have well ingrained themselves in the Company’s operations and are currently leading the organization to charter its
Slide 15: Pushing the frontier; Thank You
In the coming days, Emami will continuously keep pushing the frontier, keep exploring new categories and territories, keep launching new and innovative products, keep revisiting existing brands’ positioning with evolving market landscape and keep scouting for acquisitions / investments in new-age bu
Slide 16: 40th Annual General Meeting
40th Annual General Meeting 23rd August 2023
Slide 17: Challenges are actually the opportunities that keeps one on the right path
“Challenges are actually the opportunities that keeps one on the right path” 2
Slide 18: Changing FMCG landscape in India
Changing FMCG landscape in India Ayurveda based solutions Indians are getting comfortable with are increasingly becoming seamless omni-channel shopping the trusted way of life experience 3
Slide 19: Emami- embracing change while remaining rooted
Emami- embracing change while remaining rooted Deepening Bridging gaps investments between in Analytics channels Rooted in the rich legacy of Ayurveda Blended with modern science 4
Slide 20: Indian FMCG Industry – Strong Opportunities ahead
Indian FMCG Industry – Strong Opportunities ahead FMCG market Ever-growing Active Internet in India awareness of health Users in India (US$ billion) and healthy lifestyle (users in mn) 28% 19% CAGR 616 900 759 110 2020 2027e 2023 2025e Source: IEBF Source: IAMAI/ Kantar 5
Slide 21: Navigating through macro challenges
Navigating through macro challenges Rural inflation highest in 9 Sharp seasonal disruptions, with Decline in the offtake of years impacting consumer summers and winters becoming COVID contextual products wallet significantly irregular with the waning of pandemic Source: The Economic Times Source: Th
Slide 22: FY23 performance amidst challenges
FY23 performance amidst challenges Consolidated Growth excl. International Revenue COVID Contextual Business Growth in FY23 products* Growth in FY23 +7% +17% +20% *Pain Management Range & Healthcare Range 7
Slide 23: Increasing penetration levels
Increasing penetration levels Flat +30 bps +140 bps +30 bps +30 bps Increase in Household Increase in Household Increase in Household Increase in Household Increase in Household Penetration Penetration Penetration Penetration Penetration +2% +13% +19% +18% +19% Increase in no. of Increase in no. of
Slide 24: Leveraging the Celebrity Appeal
Leveraging the Celebrity Appeal 9 Emami past & present brand ambassadors
Slide 25: Margins back to pre-COVID levels
Margins back to pre-COVID levels Gross Margins EBIDTA Margins ( %) ( %) 67.7% 30.7% 30.1% 67.0% 27.0% 26.9% 26.0% 25.3% 66.3% 65.7% 65.0% 64.7% FY19 FY20 FY21 FY22 FY23 FY23 FY19 FY20 FY21 FY22 FY23 FY23 without without Strategic Strategic Investment Investment Subsidiaries Subsidiaries 10
Slide 26: Rewarding Shareholders
Rewarding Shareholders 22,617 x 46x 10x QIP Public Issue Maiden Issue 2009 2005 1980 Basis closing market price as on 22nd August 2023 11
Slide 27: Rewarding Shareholders: dividends and buyback
Rewarding Shareholders Dividends paid Rs. In crore Dividend Payout* Share Buyback (Rs. in crore) 400.0 100% 355.6 355.6 352.9 90% 350.0 192.0 80% 300.0 78% 70% 185.3 60% 60% 250.0 59% 60% 56% 200.0 181.6 181.6 50% 40% 150.0 30% 161.2 100.0 20% 50.0 10% - 0% FY19 FY20 FY21 FY22 FY23 2020 2022 2023 *O
Slide 28: Strengthening rural coverage through Project KHOJ
Strengthening rural coverage through Project KHOJ Target to double rural coverage in 3 years from 32k towns to 60k towns 60,000 51,837 40,006 32,000 FY21 FY22 FY23 FY24e Rural expansion getting digitized and geocoded giving insights into rural retail level behaviour and buying patterns to ensure hig
Slide 29: Beat Optimization & Geo Tagging
Beat Optimization & Geo Tagging Non-Optimum Beats before Optimisation Minimises travel distance of the MRs within a beat Reduces over-lapping of Beats Ideal Beats post Optimisation Optimises the Sales Beat area with proper outlet mapping & sequencing. 14
Slide 30: Upsell & Cross Sell Roll-out
Upsell & Cross Sell Roll-out Tool generates customized assortment Uses a Arrives at the combination of SKUs that have individual store the highest level purchase probability of behavior as well being bought by as peer group the store. clustering 15
Slide 31: Increasing salience of new age channels
Increasing salience of new age channels MT contribution to Domestic Business eCommerce contribution to Domestic Business 9.3% 9.3% 6.9% 6.9% 7.1% 6.7% 5.3% 2.7% 0.3% 0.4% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 16
Slide 32: New launches in FY23
New launches in FY23 New Launches in Domestic Markets New Launches in International Markets 17
Slide 33: Strategic Investments in startups
Strategic Investments in startups Fur Ball Story 50.40% 95.36% 20.65% 30.00% Stake Stake Stake Stake 18
Slide 34: Technological integration in Operations
Technological integration in Operations Consumer insights Contactless manufacturing Targeted communication Ensuring last mile delivery 19
Slide 35: International Business
International Business Growth in CIS FY23 International Business Growth + 69% Growth in SAARC +20% 6% + 23% + 17% Growth in MENAP Contribution to overall Revenues 20
Slide 36: Q1FY24 Performance
Q1FY24 Performance Q1FY24 Q1FY24 Q1FY24 Q1FY24 Margin Expansion Revenues Gross Profit EBIDTA PAT Gross Margins ₹ 826 cr ₹ 540 cr ₹ 190 cr ₹ 138 cr +240 bps EBIDTA Margins Revenue Gross Profit EBIDTA PAT +60 bps Growth Growth Growth Growth PAT Margins +7% +11% +10% +87% +720 bps 21
Slide 37: Emami – A Responsible Corporate Citizen
Emami – A Responsible Corporate Citizen Constantly working to meet the changing needs of all stakeholders for a healthy and sustainable future. 22
Slide 38: ESG - Key focus areas
ESG - Key focus areas Moderation in usage Employee Health Waste of natural resources & Safety Management 23
Slide 39: Sustainability Initiatives in FY23
Sustainability Initiatives in FY23 Minimizing fossil fuel use Water Conservation Plastic Management 8% 15% 13% 10204 MT Reduction in Increase in Reduction in energy renewable energy Water Waste processed consumption usage Consumption via EPR 24
Slide 40: Usage of Recycled plastics in packaging
Usage of Recycled plastics in packaging Recyclable Multi Layered Usage of Post Consumer Recycled PET for Usage of Post Consumer Recycled Plastic for flow wrap primary and secondary packaging after robust - Low Density Polyethylene Shrink packaging stability and molding process qualification. bundlin
Slide 41: Sustainable Sourcing
Sustainable Sourcing Farmer engagement & Rare Herb Cultivation 60% 29% Input materials Inputs sourced sourced from within directly from or proximate MSMEs/ small districts producers Cultivation of Chirayta (left) and Kutki (right) in high Kapur Kachri cultivated at altitude regions of western Himala
Slide 42: CSR Initiatives – FY23
CSR Initiatives – FY23 Education & Skill Health, Water & Social Upliftment Others Development Sanitation Programs ₹ 2.60 cr ₹ 2.97 cr ₹ 4.14 cr ₹ 0.77 cr Total CSR Lives touched through Spends in FY23 ₹ 10.48 cr CSR initiatives in FY23 72,861 27
Slide 43: Investing in Human Capital
Investing in Human Capital Mission Unstoppable - Sales Team Building and recognition Innovation Leaders of the Future Workshop Emami Premier League – Indoor Cricket Tournament Wah! Awards - Employee Recognition Programme 28
Slide 44: Thanking the fellow Directors
Thanking the fellow Directors R.S. Agarwal H.V. Agarwal Mohan Goenka S.K Goenka A.V. Agarwal Priti A Sureka Prashant Goenka Chairman Emeritus & Vice Chairman & Vice Chairman & Executive Director Non Executive Director Executive Director Executive Director Non Executive Director Managing Director Exe
Slide 45: Pushing new frontiers
Pushing new frontiers Exploring new Launching innovative Revisiting positioning of Scouting for acquisitions categories products existing brands & Strategic Investments 30
Slide 46: Thanking all our stakeholders for their unwavering support
Thanking all our stakeholders for their unwavering support 31