Slide 1: Company Overview
Company Overview August 2024
Slide 2: 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 3: About us
About us
Slide 4: Background
Background One of the leading Promoted and Flagship company and fastest growing Commenced of the Emami founded by RS personal and Agarwal and RS commercial Group healthcare operations in 1974 Goenka businesses in India Lead by the founders Experienced eminent Category creator and the 2nd generation
Slide 5: Key Numbers
Key Numbers ₹3,578 cr. 6 100+ 142 Revenues generated Power Brands enjoying Products generating Products sold every in FY24 market leadership revenues of > ₹ 1 crore second across the world 70 ~1 mn 5.1 mn 7.4 cr. Countries where Emami Outlets under Emami’s Outlets where Emami’s Households where Emam
Slide 6: Milestones
Milestones Issued 1:1 Bonus. Public issue. NSE Started with a Acquired Launched Launched Listed on Launched Navratna Stock Split from ₹ Listing, Launched meagre capital Himani Ltd BoroPlus Navratna BSE Cool Talc 10 to ₹ 2/- Fair & Handsome 1974 1978 1982 1989 1995 2004 2005 2007 Acquired Zandu Raise
Slide 7: Board of Directors
Board of Directors R.S. Agarwal R.S. Goenka H.V. Agarwal Mohan Goenka S.K Goenka A.V. Agarwal Priti A Sureka Prashant Goenka Chairman Emeritus & Non Executive Vice Chairman & Vice Chairman & Executive Director Non Executive Director Executive Director Executive Director Non Executive Director Chairm
Slide 8: Shareholding Structure
Shareholding Structure Shareholding break-up Major institutional investors Public DSP Blackrock 9.53% Others HDFC AMC Promoters Kotak AMC MF 54.84% Institutional 35.63% Nippon India Blackrock Vanguard Birla Sunlife Franklin Invesco Templeton Pinebridge UTI MF SBI MF As on 30th June 2024 8
Slide 9: Revenue Split
Revenue Split Business wise revenue split Business wise revenue split (FY19) (FY24) International International 13% 18% Domestic Domestic 83% 87% 9
Slide 10: Key Brands
Key Brands ₹800 crore+ ₹750 crore+ ₹550 crore+ ₹300 crore+ ₹200 crore+ Pain Balms, Healthcare products Cool Oils and Antiseptic Creams, Body Lotions, Ayurvedic Medicinal Oils, Radiance Creams and in OTC, Generics & Ethicals Cool Talc Soaps, Aloe Vera gel, Petroleum Shampoos, Conditioner etc. Face wa
Slide 11: Market Leadership across Power Brands
Market Leadership across Power Brands 80% #1 #1 70% #1 60% #1 50% #1 40% 30% #1 20% 10% 0% BoroPlus Antiseptic Fair & Handsome Navratna Cool Oils Zandu & Mentho Navratna Talc & Kesh King Oil Cream Cream Plus Balms* Dermicool** Source: AC Nielsen MAT March’24 ; *AC Nielsen MAT Jun’23 **AC Nielsen MAT
Slide 12: Navratna
Navratna ▹ Market leader in a niche Cool oil and Cool Talc category with no significant competitors ▹ Extended to Extra Thanda oil, Cool talc, Gold oil and Therapy range ▹ Endorsed by Kapil Sharma & Varun Dhavan ▹ Navratna Cool Oil used by 3.2 cr households across India 12
Slide 13: Pain Management range
Pain Management range ▹ Zandu - largest pain balm brand in India ▹ Extensions in Ultra power Balm, pain relief oil & roll on ▹ Mentho Plus positioned as headache specialist ▹ Zandu Fast Relief, India’s only pain relief brand endorsed by The Indian Association of Physiotherapists ▹ Endorsed by Sonu S
Slide 14: BoroPlus
BoroPlus ▹ India’s trusted multipurpose No.1 Antiseptic Cream ▹ Extensions in Soft Cream, Moisturizing Lotions, Prickly Heat Powder, Aloe Vera gel, Petroleum Jelly & Hygiene range ▹ Endorsed by Akshay Kumar ▹ BoroPlus Antiseptic Cream used by 6.6 cr households across India 14
Slide 15: Kesh King
Kesh King ▹ India's no. 1 Hairfall Expert ▹ Complete range of products from Ayurvedic medicinal oil, shampoo, conditioner, capsule and Onion Range ▹ Internationally Certified for superior product efficacy and comprises 21 rare ayurvedic herbs made by using Tel Pak Vidhi. ▹ Endorsed by Shilpa Shetty,
Slide 16: Male Grooming Range
Male Grooming Range ▹ Fair and Handsome- first brand to revolutionize men’s grooming segment in India ▹ Successfully extended into face wash ▹ Endorsed by Salman Khan ▹ Fair and Handsome Radiance cream used by 62 lac households across India ▹ HE Deodorants, launched in 2014, available in aerosol & a
Slide 17: Zandu Healthcare Range
Zandu Healthcare Range ▹ Health expert offering ayurvedic solutions for lifestyle-related health problems ▹ OTC Range- Major products include Zandu Pancharishta, Zandu Nityam, Zandu Kesari Jivan, Zandu Chyawanprash etc ▹ Generics and Ethicals Range - Wide range of ayurvedic generic and ethical produ
Slide 18: Dermicool
Dermicool ▹ One of the leading brands in the Prickly Heat and Cool Talc Segment ▹ Unique Double Action formula that is highly effective in fighting bacteria, absorbing sweat, and providing relief from prickly heat ▹ Iconic brand with a strong brand equity- High consumer connect through its vastly po
Slide 19: Domestic Presence
Domestic Presence ▹ Headquartered in Kolkata, West Bengal Pantnagar ▹ State-of-the-art R&D centre in Kolkata New Pacharia & Amingaon ▹ 4 Regional offices Delhi ▹ 26 depots across India Vapi & Silvassa Kolkata Hyderabad Mumbai Head Office Domestic Manufacturing Unit Emami’s Corporate Office in Kolkat
Slide 20: Global Presence across 70+ countries
Global Presence across 70+ countries CIS c.10% MENAP c. 44% SAARC & SEA c. 39% AFRICA & Others c. 7% SAARC & SEA South Asian Association for Regional Cooperation (Major countries – Bangladesh, Nepal, Sri Lanka etc.) & South East Asia MENA Middle East & North Africa (Major countries – KSA, UAE, Qatar
Slide 21: Manufacturing Strengths
Manufacturing Strengths ▹ 5 manufacturing units in India ▹ 2 units in Guwahati enjoying fiscal benefits ▹ WHO-GMP certified manufacturing units ▹ State-of-the-art plants with high degree of automation ▹ International manufacturing unit in Bangladesh State-of-the-art manufacturing unit in Pacharia, G
Slide 22: R&D Strengths
R&D Strengths ▹ 30,000 sq. ft. state-of-the-art ultra-modern R&D centre in Kolkata ▹ Modern laboratory with cGMP practices ▹ Focus on product innovation, differentiation, cost control R&D centre in Kolkata and superior quality ▹ Team comprises qualified ayurvedacharyas and specialized ayurveda scien
Slide 23: Celebrity Endorsements
Celebrity Endorsements ▹ Emami is a pioneer in engaging celebrities to endorse its brands. ▹ Emami brands have been associated with more than 60 celebrities over the years. ▹ Bollywood icons like Amitabh Bachchan, Shah Rukh Khan and Salman Khan have endorsed Emami brands Emami past & present brand a
Slide 24: Growth Drivers
Growth Drivers
Slide 25: Evolving Business Landscape
Evolving Business Landscape Contribution of Domestic Revenues Contribution of Domestic Revenues from organized channels from seasonal products 26% 49% 22% 46% 12% 44% FY20 FY23 FY24 FY20 FY23 FY24 Includes Modern Trade, eCommerce, eB2B, D2C and Institutional sales 25
Slide 26: Inorganic Growth Strategy
Inorganic Growth Strategy Key Attributes Key acquisitions Share of sales of ▹ Market leadership/ high 2008 Acquired brands to consumer connect overall Revenues ▹ Presence in Niche Category in the Personal 2015 & Healthcare space ~45% ▹ High Margins 2019 ▹ Low competitive intensity 2022 Includes sale
Slide 27: Strategic investments in startups
Strategic investments in startups Fur Ball Story 50.40% 100% 20.65% 30.00% 26.00% Stake Stake Stake Stake Stake 27
Slide 28: Strengthening Distribution
Strengthening Distribution Increased Healthcare Focus on MT & Direct Reach outlet expansion eCom Channels ( outlets in lacs ) ( outlets in lacs ) ( Contribution to Domestic Sales) 1.27 1.41 9.4 ~ 10.0 21.9% 0.78 18.6% 6.4 7.1% FY16 FY23 FY24 FY21 FY23 FY24 FY19 FY23 FY24 Result: Dependency on wholes
Slide 29: Initiatives in Sales & Distribution
Initiatives in Sales & Distribution Strengthening rural coverage Beat Optimization & Geo Tagging Upsell & Cross Sell Roll-out through Project KHOJ – Rural Coverage expanded by >20k towns - Beat Optimisation tool initiated to ~75k Rural outlets added ▹ Minimise travel distance of the MRs 52,000 withi
Slide 30: Driving Digitalization & Analytics
Driving Digitalization & Analytics Focus on new age e- channels Integration of analytical tools with the for better reach and insights hand held devices to capture accurate Strategic investments in geographic location, store level e-B2B & start-ups to develop information and intervene during the D2C
Slide 31: Focus on Modern Trade
Focus on Modern Trade Accelerating MT RESULT Growth with Increase in contribution from thrust in B2C, & Enhanced on-shelf availability and Modern Trade JBPs with chains manned store coverage (to Domestic Sales) 10.1% 9.0% 6.7% Using latest tools to drive high fill rates within store on the store she
Slide 32: Riding e-Commerce
Riding e-Commerce Products available at all Launched Digital first RESULT major online marketplaces, products under Grocery, beauty & Zandu, Navratna & Increase in contribution from e- pharmaceutical platforms Kesh King brands commerce (to Domestic Sales) Focus on D2C- Launched websites for Addressi
Slide 33: Zanducare
Zanducare • Created a Digital Healthcare ecosystem and launched e-commerce portal for Zandu Healthcare products • Catering existing products as well as newly launched e-commerce specific products. • Contributing 10% to Healthcare range sales • 11.5 mn unique visitors in FY24 • Average order value of
Slide 34: Digital first launches
Digital first launches Navratna Gold Navratna Therapy Kesh King Organics Shampoo Range Kesh King Organic Onion Hair Mask Kesh King Organics Oil Shots Kesh King Organic Rosemary Range Zandu A2 Desi Zandu Lean & Slim, Pollution shield Zandu Zandu Zandu Pain Zandu Zandu Zandu Cow Ghee and Hair Growth V
Slide 35: Digital first launches
Digital first launches Zandu Apple Cider Vinegar Zandu Aroma Therapy Spray Zandu Tulsi & Haldi Drops Zandu Energizers Zandu Livital Zandu Pain Relief Patches Zandu Value Added Honey Zandu Herbal Infusions Zandu Health Juices Zandu Pure Herbs Range Zandu DiaBts Range Zandu Seniroz Range 35
Slide 36: Re-energizing the core
Re-energizing the core
Slide 37: Re-energizing Power Brands
Re-energizing Power Brands Cumulatively Introduction generate of Relevant ~80% of ▹ Emami’s brands are in niche extensions revenues categories for mass consumers, a rare interplay of volume and value ▹ Being niche, brands are relatively Adequate Building on Marked by protected from competition room
Slide 38: Low Penetration levels… Continuous Growth opportunity
Low Penetration levels… Continuous Growth opportunity 36.6% Category Brand penetration penetration 25.1% 25.1% 20.1% 14.1% 12.6% 9.9% 7.8% 3.6% 2.6% 2.2% 1.9% Zandu & MenthoPlus BoroPlus Antiseptic Navratna Cool Oil Navratna Cool Talc & Kesh King Oil Fair and Handsome Balms Cream Dermicool** Cream P
Slide 39: Navratna
Navratna ▹ Strengthened presence in core markets (UP, Bihar and Jharkhand)- To drive brand recall through integrated 360° campaigns ▹ Developed new markets (Gujarat, Maharashtra, AP, Telangana and Bengal) ▹ Roped in Kapil Sharma and his team to endorse the brand ▹ To drive trials by undertaking larg
Slide 40: Pain Management Range
Pain Management Range ▹ Core markets: Deepen presence in Maharashtra & Andhra Pradesh Telangana, and Karnataka ; ▹ Developing markets: Deepen Zandu relevance via regional media and increase purchase intention with multiple pain indications ▹ Key focus on Chemist channel and Consumer touchpoints at p
Slide 41: BoroPlus
BoroPlus ▹ Drive multi-purpose usage specially promoting the moisturising benefit ▹ Launched communication with Akshay Kumar showcasing multipurpose usage by the all the members of the family ▹ Leveraging the digital platform ▹ Extension of the brand to youth through Soft Antiseptic Cream and Aloe V
Slide 42: Kesh King
Kesh King ▹ Strengthened Kesh King as a complete Ayurvedic solution for hair fall and allied problems ▹ Deepening focus across target audience (25-45) ▹ Effectively communicating the provenness by International and medical/ doctor certificates ▹ Expanded portfolio to Onion Range and Organic Shampoo
Slide 43: Fair and Handsome
Fair and Handsome ▹ Refreshed packaging with high efficacy claims across cream and face washes ▹ Introduced new packaging design in line with Men’s Face Wash category ▹ Strengthening brand positioning and provide tangible competitive benefit superiority ▹ Launched Fair and Handsome Nature F1rst rang
Slide 44: Healthcare range
Healthcare range ▹ Focus on Pain, Digestion, Geriatrics and Feminine care etc. ▹ Relaunched Pancharishta in PET bottles to prevent breakage ▹ Extend penetration among a wider consumer base for laxatives ▹ Focus on sustained product launches and new category creation- Introducing a series of products
Slide 45: Dermicool
Dermicool ▹ Imagery revamp with Superior Brand repositioning ▹ Industry benchmark claims in communication ▹ Launched LUP to drive trials & increase penetration ▹ Launched ‘Dermicool Her’ variant with silky smooth feel for women consumers ▹ Deployment of compelling consumer promos and engagement prog
Slide 46: International Business
International Business ▹ Working on globalizing Indian Herbal & Natural products ▹ Focus top 15 countries (~ 85% of global revenues) where key brands. are achieving leadership position ▹ Innovating portfolio to offer wider range to discerning customers in different cultures ▹ Tapping available poten
Slide 47: Key Financials
Key Financials
Slide 48: FY24 Performance
FY24 Performance Margins Gross Margins FY24 FY24 FY24 FY24 FY24 Revenues Gross Profit A&P Spends EBIDTA PAT +290 bps ₹ 3,578 cr ₹ 2,418 cr ₹ 652 cr ₹ 950 cr ₹ 724 cr A&P Spends +170 bps Revenue Gross Profit A&P Spends EBIDTA PAT EBIDTA Margins Growth Growth Growth Growth Growth +120 bps +5% +10% +16
Slide 49: 5 year performance
5 year performance Revenues 5 year CAGR : 6% EBIDTA 5 year CAGR : 6% ( Rs. in crore ) ( Rs. in crore ) 3,406 3,578 3,187 952 950 2,655 2,881 883 863 691 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Profit Before Taxes 5 year CAGR : 14% Reported PAT 5 year CAGR : 19% ( Rs. in crore ) ( Rs. in cr
Slide 50: Margin Profile
Margin Profile Gross Margins EBIDTA Margins ( %) ( %) 67.7% 67.6% 67.0% 66.3% 30.7% 30.1% 26.0% 25.3% 26.5% 64.7% FY20 FY21 FY22 FY23 FY24 FY20 FY21* FY22* FY23 FY24 *Higher margins on account of higher salience of COVID contextual products, lower A&P and admin costs 50
Slide 51: Key Ratios
Key Ratios Debt Equity Ratio ROE ROCE On Adjusted PAT ( %) On Adjusted PAT (%) 46.3% 0.13 41.0% 0.12 46.3% 31.4% 33.1% 32.1% 41.0% 31.4% 34.3% 33.1% 0.05 0.03 0.03 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Notes: Adjusted PAT= Reported PAT + Amortisation of all Intan
Slide 52: Rewarding Shareholders
Rewarding Shareholders Dividends paid Share Buyback (Rs. in crore) Rs. In crore Dividend Payout* 400.0 100% 192.0 355.6 355.6 355.6 349.2 350.0 90% 185.3 80% 300.0 70% 250.0 60% 49% 200.0 181.6 50% 42% 45% 42% 161.2 150.0 32% 40% 30% 100.0 20% 50.0 10% - 0% FY20 FY21 FY22 FY23 FY24 2020 2022 2023 *O
Slide 53: Q1FY25 Performance
Q1FY25 Performance Margins Gross Margins Revenues Gross Profit A&P Spends EBIDTA PAT +230 bps ₹ 906 cr ₹ 613 cr ₹ 184 cr ₹ 216 cr ₹ 153 cr A&P Spends +190 bps Revenue Gross Profit A&P Spends EBIDTA PAT EBIDTA Margins Growth Growth Growth Growth Growth +90 bps +10% +14% +21% +14% +11% PAT Margins +10
Slide 54: Key Investment Rationale
Key Investment Rationale High gross margins of ~65% Strong management; mix of promoters and EBIDTA margins of >25% professionals; qualified despite one of the highest and experienced Board A&P spends of >16% Debt-free company Growth + cost reduction = despite acquisitions Increased topline and worth
Slide 55: ESG initiatives & Awards
ESG initiatives & Awards
Slide 56: Key Sustainability Initiatives
Key Sustainability Initiatives 1,39,619 12% 17% reduction 2,54,718 reduction Energy 1,28,486 Water 2,21,477 2,11,586 Consumption 1,23,382 Consumption (GJ) (KL) FY22 FY23 FY24 FY22 FY23 FY24 Renewable Energy (FY24) Plastic Recycled (FY24) Inputs directly sourced from MSME/ small producers (FY24) 19%
Slide 57: Social Initiatives: Farmer engagement, training & Rare Herb Cultivation programs
Social Initiatives: Farmer engagement, training & Rare Herb Cultivation programs 19 Rare herbs cultivated 1,200+ farmers 300+ Acre cultivation area 57
Slide 58: CSR Initiatives
CSR Initiatives Key Focus areas Enhancing Promoting Providing clean Promoting Social Sanitation vocational healthcare water education upliftment facilities in skills programs rural areas ₹46 cr 5.7 lac CSR spends in last Community lives 5 years touched in FY24 58
Slide 59: Strengthening our Governance
Strengthening our Governance Reduction of Promoter pledge 90.5% Experienced 3 women eminent Directors - Independent Non Executive Among the 40.1% Directors with Chairman highest in diverse industry. 13.1% backgrounds 9.5% Jun'20 Mar'23 Mar'24 Jul'24 Promoter debt A defined Digitalization of and pled
Slide 60: Major Awards & Accolades
Major Awards & Accolades Featured in Featured in Fortune Next 500 ranking Forbes India’s securing 1st position for FMCG Super 50 List (2017) sectoral leadership (2024) Featured in Limca Book of Company of the Iconic Brands of India ET Bengal Corporate Awards by Records, for Navratna’s year– FMCG – B
Slide 61: Thank you
Thank you Contact Us Emami Limited Emami Tower Contact : +91-33-66136264 687, Anandapur, E.M. Bypass Email: investors@emamigroup.com Kolkata, 700107, West Bengal, India Website: www.emamiltd.in 61