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Investor PresentationJanuary 2010

Confidential

1

DisclaimerThis Confidential Presentation (CP) contains proprietary and confidential information regarding Emami Limited (or EMAMI). ( ) The CP is prepared by Emami Limited based on the published information available and has not independently verified any of the information contained herein. The sole purpose of the CP is to enable the recipients to evaluate the Company for any investment decisions. The CP may not contain all the information that recipients may desire or need. Recipients must rely solely on its own judgment, review and business analysis in investigating and evaluating the information contained herein. Consequently, Emami Limited and any of their directors, employees, shareholders, affiliates or agents shall not be liable for any loss or damage (direct or indirect) suffered as a result of reliance upon any statements contained in, or any omission from the CP and any such liability is expressly disclaimed. The CP does not constitute an offer for sale of or an invitation to purchase the equity interest in the Company and the information contained herein will not form the basis of any contract. It is merely a solicitation of interest with respect to the investment in the Company. The CP is furnished strictly on confidential basis to the recipient and the circulation and copying of the information embodied herein is restricted. Emami Limited reserves the right to request the return of the CP and any other information made available either along with it or separately at its own discretion and will.Confidential 2

Table of ContentsSection I II III IV V VI VII

Company Overview y Current Situation Analysis Restructuring Business Strategy B i St t Financials Key Investment Highlights Annexure

4 16 21 24 26 37 39

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Section: I Company Overview

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Company OverviewEmami Limited, the flagship company of the Emami Group, is a leading FMCG player in India The Company is promoted by Kolkata-based industrialists, Mr. R.S. Agarwal and Mr. R.S. Goenka Emami has been in the health, beauty and personal care products space since the last 30 years and has sustained its prominent position in Ayurveda products With an extensive research and development cell, it has developed strong brands like Navratna, cell Navratna BoroPlus and Fair and Handsome Prudent and effective management has ensured that ~80% of its production is in tax exempt zones Listed on BSE and NSE with a market capitalization of over Rs 40 bn ($904mn) Gross revenue of Rs 7.5 bn ($163mn) in FY 2009 with a revenue CAGR of 20% over last 5 years

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Business PhilosophyIdentify niche segments which are o Mass market categories o With high gross margin o Where competition is not much active1000 800 600 400 200 0 2005-6 2008-9 333 800

3yr CAGR +34%

FairandHandsome

Continuously invest and build the category and grow it largeRs in Million s. ns2000 1500 1000 500 0 1997-98 2008-9 110 1779 1600 1433 600 500 400 300 200 100 0 510

11yr CAGR +28%

1200 800 400 0 390

11yr CAGR +13%

9yr CAGR +35%35 1999-00 2008-9

NavratnaOilConfidential

BorpolusCream

1997-98

2008-9

MenthoplusBalm6

Snapshot of power brandsPower BrandNavratna Oil Boroplus Cream Zandu & Mentho Plus Balm Fair & Handsome Boroplus Powder Fast Releif Sona Chandi & ZanduSource: Industry Reports

Segment gCooling oil Antiseptic cream Headache balm Men's fairness cream Prickly heat powder Pain reliever Chyawanprash

Market Size(INR in Millions)

Market Size(USD in Millions)

Emamis Market Share in % 200548 65 54 -23 7 16

200851 73 61 63 18 13 15

3,970 2,237 3,507 # 1,648 2,027 2,117

85.4 48.1 75.4 # 35.4 43.6 45.5

# 30% of Fairness Cream market, i.e., Rs. 4089 mn (USD 88 mn)

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Domestic reachStrong foothold in rural India Nation-wide domestic distribution network 2800+ distributors, 400 000+ retail outlets 400,000+ outlets, Brand reach 2.6mn outlets Domestic Sales on Cash Sales channels are divided into rural and urban sales territories Strategic tie-ups with IOC Petrol Pumps ITC E - Choupal With the acquisition of Zandu the network has further strengthened in western India

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Distribution channel architectureRural Urban

Tie up with ITC e-chaupal

Tie- up with District IOC Petrol Pumps

Emami Mobile Traders and Small village shops

Modern trade channel

Retail network

Coverage of g four states

Coverage of 200 petrol pumps

Coverage of 780 thousand households

Coverage of g 2200 outlets

Coverage of 400 thousand outlets

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Global reachInternationalbusinesscontributesto14%ofthetotalbusinessCIS CIS

EUROPE

Europe, 2%AFRICA AMERICA GULF ASIA

Others, 6%

CIS, 19% Africa, Africa 24% SAARC, 20%AUSTRALIA

Middle East, 29% East

Region Share %Internationally, products available in 60 countries - strong presence in CIS, GCC, SAARC and African countriesConfidential 10

Research capabilitiesFocus: New product introduction, cost control and product differentiation Team comprises qualified doctors and specialized Ayurveda scientists; advisory panel comprising A i i Ayurvedic experts lik di t like Padmashree Vaidya Suresh Chaturvedi, Dr. Hari Shankar Sharma (former Dean of Jamnagar University and Ayurvedacharya), Dr. Hiroe Inamura (Director of Ayurvedic Research Society, Osaka, Japan) and Dr. S. K. Mishra (ex-commissioner, Indian System of Medicines and Homeopathy) A modern fully equipped laboratory with cGMP practices State-of-the-art Himani Ayurvedic Science Foundation in Kolkata

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Emami vs IndustryCategory-wise Performance30%

27.4% 23.9% 19.2%

Industry

Emami

25%

20%

17.2% 13.8% 11.4% 11.9% 14.7%

15%

10%

6.2%5%

0.3% 0 3%0%

0.8% Rubificient Prickly Heat Powder

Thick Oil-5%

Antiseptic Cream

Chyawanprash -3.2%

Balm

Source: Industry Reports

Industry - beating performance in almost all categories with wide margins12

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Low penetration: Big opportunity100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

91.5% 86.1% 86 1% 88.6% 71.0%

48.6% 38.0% 22.0% 22 0% 2.1% 28.0% 6.6% 30.0%

1.0%

Company reports, Industry

Low penetration of major segments indicates long term g p j g g growth story. yConfidential 13

New launches

Ayurvedic OTC

Personal Care

Strong pipeline of new products gConfidential 14

Current shareholding patternShareholding Pattern (As on 30th Sep 2009) List of Institutional ShareholdersHSBC Global I Gl b l Investment F d t t Fund T Rowe Price International HDFC DSP Blackrock IDFC Templeton MF Morgan Stanley MF Blackrock India Equities BNP Paribas Sampo Fund Management Genesis Asset Managers G i A tM KB India Growth Fund

Raised Rs 3100 mn ($66 74 mn) in July 2009 by issuing 10 mn fresh equity shares to QIBs Rs. ($66.74 JulyConfidential 15

Section: II Current Situation Analysis

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The Zandu acquisitionCentury old household name in India and a leading Ayurveda healthcare company It is a strategic fit for Emami with a strong research and development base in Ayurveda Leadership position in pain balm (rubificient) category Zandu was ranked 29th in the All India Brand Equity survey as per The Economic Times (ET) ACN survey across all survey, categories. Its brands have regularly figured in the ET survey of Most Popular brands in India Some of its prominent brands include India, Zandu Balm Zandu Chyawanprash Kesri Jeevan K iJ Pancharishta Nityam Churna17

Emami acquired 68.91% 68 91% stake in Zandu for Rs. 7130 Mn (USD 153 Mn) The acquisition was completed in November 2008 and since then Emami has taken over management control of Zandu

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Zandubrands Zandu brands

Core brand growing steadily more than the industry average18

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Strategicinitiatives Strategic initiativesVarious strategic initiatives undertaken to enhance value Effective April 2009 production commenced at Pantnagar unit in the tax free zone of 2009, Uttaranchal Increase in Sales relaisations at Zandu for reduction in trade margins by around 10%. More focus on the core business, residual non core investments including Zandu Chemicals business was hived off SAP initiative - streamlining Zandu operations and support systems Hired global consulting firm E&Y to recommend synergetic benefits in Supply Chain, Logistics and CFA arrangements Post acquisition integration process underway Streamlining of sales channels New marketing strategies to drive penetration and consumption

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Marketinginitiatives Marketing initiativesCross promotions started Zandu Balm introduced in new packaging to counterfeit duplicates rejuvenated

An aggressive electronic media campaign launched recently Hired Evolve Creations, UK to enhance and develop new packaging for Zandu brands Marketing experts like Mr. Alyque Padamsee are being consulted Initiated Active Marketing Research th I iti t d A ti M k ti R h through h ORG

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Section: III Restructuring

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RestructuringRevisedStructure

Emami Infrastructure Tobelisted

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Restructuring (Contd.)Share Swap Details Shareholders of Emami will receive 1 (one) share of Rs. 2/- each of Emami Inf