indian cosmetic industry

MARKETING MANAGEMENT

PROWESS ASSIGNMENT

INDIAN COSMETIC INDUSTRY

BELLI P K

S2 MBA

04/02/2013

Table of Contents Brief introduction .................................................................................................................................... 3

Market capitalization ........................................................................................................................... 4

Size of the industry .............................................................................................................................. 4

Domestic and Export Share .................................................................................................................. 4

Top leading Companies ........................................................................................................................... 5

Latest developments .............................................................................................................................. 6

Industry Analysis .................................................................................................................................... 7

Major players ....................................................................................................................................... 14

Emami Ltd ........................................................................................................................................ 14

Executive summary ........................................................................................................................ 15

Distribution of costs ....................................................................................................................... 17

Source of growth in profits ............................................................................................................ 18

Colgate Palmolive Ltd ........................................................................................................................ 19

Major competitors ......................................................................................................................... 20

Milestone ...................................................................................................................................... 21



Lakme ................................................................................................................................................ 25




Ponds ................................................................................................................................................ 28




Procter & Gamble .............................................................................................................................. 32



Sources of growth in profits ........................................................................................................... 36

Summary .............................................................................................................................................. 38

Brief introduction

The Indian Cosmetics Industry is defined as skin care, hair care, color cosmetics, fragrances and

oral care segments which stood at an estimated $2.5 billion in 2008 and is expected to grow at

7%, according to an analysis of the sector. Today herbal cosmetics industry is driving growth in

the beauty business in India and is expected to grow at a rate of 7% as more people shun

chemical products in favor of organic ones.

The emphasis of the herbal cosmetic has been on the spectacular growth of the herbal and

ayurvedic beauty products business as conveyed by beauty expert Shahnaz Husain who was the

first to introduce the concept of ayurvedic cosmetics to the world when she launched her

products way back in 1970. Today, the Indian cosmetics industry has a plethora of herbal

cosmetic brands like Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur

and Lotus and many more. The Indian cosmetics industry has emerged as one of the unique

industries holding huge potential for further growth. In 2009, the cosmetics industry registered

sales of INR 356.6 Billion (US$ 7.1 Billion) despite the global economic recession. Indian

cosmetics Industry has mainly been driven by improved purchasing power and rising fashion

consciousness of the Indian population and industry players spending readily on the promotional

activities to increase consumer awareness and develop their products.

According to a new research report, the Indian Cosmetics Industry is expected to witness

impressive growth rate in the near future owing to rising beauty concern of both men and

women. Today the industry holds promising growth prospects for both existing and new players.

The baseline is that there has been a rise in variety of products offered by the industry players in

the country. The companies have started going for rural expansion and are offering specialized

products to generate revenues from all the corners of the country. Improvement and

strengthening of the Indian economy in the coming years will also pave the way for the Indian

cosmetics market over the forecast period and develop the Cosmetic Industry.

The Indian Cosmetic market which traditionally a stronghold of a few major Indian players like

Lakme, and Ponds has seen a lot of foreign entrants to the market within the last decade. India is

a very price sensitive market and the cosmetics and personal care product companies, especially

the new entrants have had to work out new innovative strategies to suit Indian preferences and

budgets to establish a hold on the market and establish a niche market for them.

Market capitalization

According to analysis and figures given by the Confederation of Indian Industries (CII), the total

Indian beauty and cosmetic market size currently stands at US$950 million and showing growth

between 15-20% per annum. The overall beauty and wellness market that includes beauty

services stands at about US$2,680 million, according to CII estimates.

Size of the industry

The size of Indian Cosmetics Industry globally is $ 274 billion, while that of the Indian cosmetic

industry is $ 4.6 billion. The current size of the Indian Cosmetic Industry is approx US$ 600

million. Among these fastest growing segment is color cosmetics, accounting for around US$ 60

million of the market. Industry sources estimate a rapid growth rate of 20% per annum across

different segments of the cosmetics industry reflecting with an increasing demand for all kinds of

beauty and personal care product. Growth in the Indian Cosmetic Industry has come mainly from

the low and medium-priced categories that account for 90 % of the cosmetics market in terms of

volume.

Domestic and Export Share

Costs for importing other products are much higher than producing it in the country. India

usually allows the entry of imported cosmetics without any restrictions but the average import

tariff on cosmetics products is currently very high at 39.2%.

Top leading Companies

Lakmé is the Indian brand of cosmetics, owned by Unilever. It started as a 100%

subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it is named after the French

opera Lakmé, which itself is the French form of Lakshmi, the goddess of wealth who has

is also renowned for her beauty.

Colgate Palmolive India Ltd., a subsidiary of Colgate Palmolive Company, USA was

incorporated in 1937. It is a bluechip company engaged in the FMCG business.

Emami Limited is an Indian producer of fast moving consumer goods (FMCG), such as

cosmetics and health and baby products. The company is based in Kolkata.

Pond's Cream is a brand of beauty and health care products that is produced by the

Ponds Institute which is owned by the multinational company Unilever.

Procter & Gamble (P&G) is a Fortune 500 American multinational

corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range

of consumer goods.

Revlon is an American cosmetic for skin care, fragrance, and Personal Care Company

founded in 1932.

Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in

Sweden by the brothers Jonas AF Jochnick and Robert AF Jochnick.

The L’Oréal Group is the world’s largest cosmetics and Beauty Company. It

concentrates on hair colour, skin care, sun protection, make-up, perfumes and hair care.

Maybelline is a makeup brand sold worldwide and owned by L’Oréal.

Chambor cosmetic line is a blend of the finest traditions in terms of radiant color, soft

texture and skin accentuator.

Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140

countries across the world.

Make-up Art Cosmetics or MAC Cosmetics, is a manufacturer of cosmetics which was

founded in Toronto, Canada by Frank Toskan and Frank Angelo in 1984

ColorBar cosmetics are one of the leading brands of color cosmetics in India.

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Multinational_corporation

http://en.wikipedia.org/wiki/Unilever

http://en.wikipedia.org/wiki/Fortune_500




http://en.wikipedia.org/wiki/Downtown_Cincinnati

http://en.wikipedia.org/wiki/Cincinnati

http://en.wikipedia.org/wiki/Ohio


Street Wear is a young, funky and hip brand which globally is positioned at the young

and trendy shopper and the range consists of about 30 SKUs covering categories like nail

enamel, lipsticks, lip gloss, face make-up kits and eye shadows.

Latest developments

According to Indian Cosmetic Sector Analysis (2009-2012), the Indian cosmetics

industry is expected to witness fast growth rate in the coming years on the back of an

increase in the consumption of beauty products. Owing to growing disposable income of

the middle class households and changing lifestyle.

A study even shows that affordability and rising consumer base were the main drivers

behind the high cosmetic sales of around INR 356.6 Billion (US$ 7.1 Billion) in 2009.

Market players are getting lucrative and good opportunities as people have become more

beauty conscious due to changing lifestyle and spreading consumer awareness.

According to ASSOCHAM the size of India's cosmetics market will rise by almost a half

to 1.4 billion dollars in the next two-three years as people get fashion conscious and more

brands are launched. With increased awakening about cosmetics brands, which is evident

even in rural India, the industry size will grow to around 1.4 billion dollars from current

level of 950 million. It is projected to grow at a CAGR of around 7% during the forecast

period.

Indian Cosmetics Industry is set for a significant growth depending on the capability of

the manufacturers to market their products. Products that claim to renew cells, minimize

pores, and restore hydration have created an $83 billion worldwide market.

Due to the optimistic assessment the domestic cosmetic and toiletries industry show that

with increased awakening which is growing even in rural India, its size will grow in next

2-3 years to around US$ 1400 million from current level of US$ 950 million. Till then

India’s per capita consumption of cosmetic and toiletries products could be on par with

that of China which currently is US$ 1.5, says ASSOCHAM analysis.

Industry Analysis

The size of Indian Cosmetics Industry globally is $ 274 billion, while that of the Indian cosmetic

industry is $ 4.6 billion. According to analysis and figures given by the Confederation of Indian

Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950

million and showing growth between 15-20% per annum. Industry sources estimate a rapid

growth rate of 20% per annum. The overall beauty and wellness market that includes beauty

services stands at about US$2,680 million, according to CII estimates.

The cosmetics companies in India is listed below

1. A V T Natural Products Ltd.

2. Absolute Aromatics Ltd.

3. Ador Multiproducts Ltd.

4. Ajanta India Ltd.

5. Ajay Home Products Ltd.

6. Allied Perfumers Pvt. Ltd.

7. Amar Remedies Ltd.

8. Associated Biscuit Co. Ltd.

9. Bajaj Corp Ltd.

10. Basil Chemicals & Additives Ltd.

11. C C Health Care Products Pvt. Ltd. [Merged]

12. Coimbatore Flavors & Fragrances Ltd.

13. Colgate-Palmolive (India) Ltd.

14. Dongguan Unza Consumer Products Ltd.

15. Emami Ltd.

16. Floral Aroma Ltd.

17. Galaxy Surfactants Ltd.

18. Henkel India Ltd.

19. Hindustan Polyamides & Fibres Ltd.

20. Hindustan Unilever Ltd.

21. Hipolin Ltd.

22. Indfrag Ltd.

23. J H S Svendgaard Dental Care Ltd.

24. J H S Svendgaard Hygiene Products Ltd.

25. J H S Svendgaard Laboratories Ltd.

26. Jyothy Laboratories Ltd.

27. Kamakhya Cosmetics & Pharmaceuticals Pvt. Ltd.

28. Kancor Ingredients Ltd.

29. Karnataka Soaps & Detergents Ltd.

30. Kaya Ltd.

31. Kukar Sons (Indo-French) Exports Ltd.

32. Lakme Lever Pvt. Ltd.

33. Naturite Agro Products Ltd.

34. Nirma Ltd.

35. Novo Agritech Ltd.

36. Oriental Aromatics Ltd.

37. Paramount Minerals & Chemicals Ltd.

38. Parikh Herbals Ltd.

39. Pee Cee Cosma Sope Ltd.

40. Power Soaps Ltd.

41. Privi Organics Ltd.

42. Procter & Gamble Home Products Ltd.

43. Procter & Gamble Hygiene & Health Care Ltd.

44. R K S Agrotech Ltd.

45. Reckitt Benckiser (India) Ltd.

46. Rhodia Specialty Chemicals India Ltd.

47. Sharp Menthol India Ltd.

48. Shingar Ltd.

49. Shree Cosmetics Ltd.

50. Shreeji Dye-Chem Ltd.

51. Sivalik Cellulose Ltd.

52. Sonal Cosmetics (Exports) Ltd.

53. Standard Surfactants Ltd.

54. Sunehari Exports Ltd.

55. Surya Vinayak Inds. Ltd.

56. Synthite Industries Ltd.

57. Tamilnadu Forest Plantation Corpn. Ltd.

58. Ultra International Ltd.

59. Unza International Ltd.

60. Unzafrica Ltd.

61. Utkal Soap Products Ltd.

The executive summary of the cosmetic industry is shown below.

Growth in Executive Summary (%)

Cosmetics, Toiletries, Soaps & Detergents

Currency: Rs. Million (Annualized) Mar-09 Mar-10 Mar-11

Total income 19 12.1 11.6

Sales 20.2 11.9 11.8

Income from financial services -12.6 27.5 9.7

Total expenses 21.5 11.2 15

Raw materials, stores & spares 26.5 5.5 15.8

Power, fuel & water charges 30.4 0.8 21.5

Compensation to employees 23.5 17.8 -1.6

Indirect taxes 5.8 -26.5 29.4

Selling & distribution expenses 22.5 18.9 21.2

Other operational exp. of industrial ent. -10.8 1,337.20 45.6

Other operational exp. of non-fin. services ent. 32.3 32.8 31.7

Interest paid 62 5.3 -4.6

Depreciation 15.1 36.2 12.7

Profits

PBDITA (Operating profit) 8.1 28.5 -8.1

PBDITA net of P&E 13 27.7 -6.1

Profit after tax (PAT) 2.1 24.8 -11.8

PAT net of P&E 8.7 23.4 -8.7

Total liabilities 20.7 12.7 10

Net worth 16.3 19.1 9.7

Paid up equity capital (net of forfeited equity cap.) 0.4 4.3 2.2

Reserves and funds 17.7 20.9 10.4

Borrowings 72.1 -2.9 14.3

Fixed deposits 9.7 100.6 19.9

Current liabilities & provisions 11.4 15.5 10.5

Total assets 20.7 12.7 10

Net fixed assets 16 12.4 0.5

Investments -37.8 89.6 19.2

Current assets 34.3 11.4 14.7

Loans & advances 11.1 4.2 9

Gross fixed assets 15.9 13.5 6.8

No of companies 69 75 61

The executive summary of different companies in the concerned year is shown below.

Executive Summary


Currency: Rs. Million (Non-Annualised) Year Total Total Profit Net

income expenses after tax (PAT)

worth

A V T Natural Products Ltd. Mar-

11 1394 1226.5 108.1 557.9

Absolute Aromatics Ltd. Mar-

10 0 -278.7

Ador Multiproducts Ltd. Mar-

11 119.6 117.7 2.2 48.7

Ajanta India Ltd. Mar-

10 484.5 484.7 -62.7 35

Ajay Home Products Ltd. Mar-

10 2.8 3.6 -0.8 26.4

Allied Perfumers Pvt. Ltd. Mar-

10 2920.1 4042.1 95.5 527.8

Amar Remedies Ltd. Jun-

11 5790.3 5469.6 380.5 2124.7

Associated Biscuit Co. Ltd. Mar-

10 90.9 77.6 13.3 65.7

Bajaj Corp Ltd. Mar-

11 3769.8 2945.9 841 3762.7

Basil Chemicals & Additives Ltd. Mar-

10 0.6 -0.6 51.7

C C Health Care Products Pvt. Ltd. [Merged] Mar-

10 366.7 306.5 60.6 56.6

Coimbatore Flavors & Fragrances Ltd. Mar-

10 1.7 3.1 -1.4 8.8

Colgate-Palmolive (India) Ltd. Mar-

11 24242 20516.8 4025.8 3840.5

Dongguan Unza Consumer Products Ltd. Mar-

10 985.2 978.4 6.8 136.7

Emami Ltd. Mar-

11 12779.3 11836 1254 6830.2

Floral Aroma Ltd. Mar-

10 1.5 1.5 0 9

Galaxy Surfactants Ltd. Mar-

11 9063.5 8766.6 615.2 2024.7

Henkel India Ltd. Dec-

10 4731.1 4701.1 11.3 1435.5

Hindustan Polyamides & Fibres Ltd. Mar-

10 2665.7 2521.1 200.5 1000.5

Hindustan Unilever Ltd. Mar-

11 211355.3 191246.4 23059.7 26332.5

Hipolin Ltd. Mar-

11 321.3 319.8 -5.2 94

Indfrag Ltd. Mar-

11 383.5 371 49.2 303.5

J H S Svendgaard Dental Care Ltd. Mar-

11 2.9 3.5 -0.6 -2.2

J H S Svendgaard Hygiene Products Ltd. Mar-

10 12.7 12.4 0.3 110.8

J H S Svendgaard Laboratories Ltd. Mar-

11 873.4 830.5 60.1 761.8

Jyothy Laboratories Ltd. Mar-

11 6934.4 6082.4 802.7 6527.2

Kamakhya Cosmetics & Pharmaceuticals Pvt. Ltd.

Dec-10 210.4 144.5 4.2 55.1

Kancor Ingredients Ltd. Mar-

10 1996.3 1879.1 79.1 226.8

Karnataka Soaps & Detergents Ltd. Mar-

11 2004.6 1913.3 66.6 709.7

Kaya Ltd. Mar-

11 1103.6 1523.5 -412.6 -416.4

Kukar Sons (Indo-French) Exports Ltd. Mar-

10 1.6 -1.6 12.2

Lakme Lever Pvt. Ltd. Mar-

11 308.8 464.9 -132 -28.1

Naturite Agro Products Ltd. Mar-

10 2.2 6.3 -0.1 -8

Nirma Ltd. Mar-

11 35593.1 35185.5 740.4 28319.7

Novo Agritech Ltd. Mar-

10 48.9 14.5 32 42.9

Oriental Aromatics Ltd. Mar-

10 671.1 616 65.8 1012.8

Paramount Minerals & Chemicals Ltd. Mar-

10 796.9 752 36.6 135.8

Parikh Herbals Ltd. Mar-

11 5.6 5.5 0.2 88.9

Pee Cee Cosma Sope Ltd. Mar-

11 297.1 296.9 -1.1 110.5

Power Soaps Ltd. Mar-

10 2175.6 2107.9 106.3 352.5

Privi Organics Ltd. Mar-

11 3875.5 3625 231.3 1003.4

Procter & Gamble Home Products Ltd. Mar-

11 29331.6 33243.7 -3335.8 3186

Procter & Gamble Hygiene & Health Care Ltd.

Jun-11 11226.3 9724 1508.8 6006.2

R K S Agrotech Ltd. Mar-

10 0.1 49.8 -49.7 54.5

Reckitt Benckiser (India) Ltd. Dec- 22315 19431.7 3385.7 1700.6

10

Rhodia Specialty Chemicals India Ltd. Dec-

10 1809.9 1905 -36.9 445.4

Sharp Menthol India Ltd. Mar-

10 8652.5 8722.5 260 2389.9

Shingar Ltd. Mar-

10 437.3 441.2 5.3 156.4

Shree Cosmetics Ltd. Mar-

11 16 35 -18.5 21.5

Shreeji Dye-Chem Ltd. Mar-

11 3 -3 28.2

Sivalik Cellulose Ltd. Mar-

10 5 -5 4.3

Sonal Cosmetics (Exports) Ltd. Mar-

11 0.2 0.2 0 198.5

Standard Surfactants Ltd. Mar-

11 557.8 567.2 1 136.3

Sunehari Exports Ltd. Mar-

10 183.9 182.3 -6.6 292.5

Surya Vinayak Inds. Ltd. Mar-

10 43295.3 47761.3 1198.1 3825.6

Synthite Industries Ltd. Mar-

10 4495.1 4198.4 367.3 4041.3

Tamilnadu Forest Plantation Corpn. Ltd. Mar-

10 522.7 433.8 86.1 734.7

Ultra International Ltd. Mar-

10 325.3 274.3 17.5 74.3

Unza International Ltd. Mar-

10 350.4 93 257.4 1237.2

Unzafrica Ltd. Mar-

10 4.5

Utkal Soap Products Ltd. Mar-

10 3.4 1.4 2 5.3

Operating expenses and compensation to employees by different companies is shown

below.

Distribution of Costs (%)


Currency: Rs. Million (Non-Annualised) Year Operating expenses

Compensation to employees

A V T Natural Products Ltd. Mar-11 88.63 11.3

Absolute Aromatics Ltd. Mar-10 0 0

Ador Multiproducts Ltd. Mar-11 97.79 8.86

Ajanta India Ltd. Mar-10 82.67 13.95

Ajay Home Products Ltd. Mar-10 8.33 0

Allied Perfumers Pvt. Ltd. Mar-10 97 0.21

Amar Remedies Ltd. Jun-11 91.36 2.61

Associated Biscuit Co. Ltd. Mar-10 74.61 26.08

Bajaj Corp Ltd. Mar-11 85.79 6.43

Basil Chemicals & Additives Ltd. Mar-10 100 50

C C Health Care Products Pvt. Ltd. [Merged] Mar-10 84.7 8.67

Coimbatore Flavors & Fragrances Ltd. Mar-10 74.19 17.39

Colgate-Palmolive (India) Ltd. Mar-11 92.66 10.16

Dongguan Unza Consumer Products Ltd. Mar-10 97.82 11.88

Emami Ltd. Mar-11 85.29 6.54

Floral Aroma Ltd. Mar-10 53.33 12.5

Galaxy Surfactants Ltd. Mar-11 93.53 4.37

Henkel India Ltd. Dec-10 95.06 3.79

Hindustan Polyamides & Fibres Ltd. Mar-10 87.49 4.33

Hindustan Unilever Ltd. Mar-11 95.68 5.26

Hipolin Ltd. Mar-11 97.81 5.15

Indfrag Ltd. Mar-11 92.94 9.31

J H S Svendgaard Dental Care Ltd. Mar-11 102.86 55.56

J H S Svendgaard Hygiene Products Ltd. Mar-10 60.48 24

J H S Svendgaard Laboratories Ltd. Mar-11 84.85 5.01

Jyothy Laboratories Ltd. Mar-11 95.42 12.69

Kamakhya Cosmetics & Pharmaceuticals Pvt. Ltd. Dec-10 85.12 5.04

Kancor Ingredients Ltd. Mar-10 90.76 6.22

Karnataka Soaps & Detergents Ltd. Mar-11 97.49 19.56

Kaya Ltd. Mar-11 81.69 19.68

Kukar Sons (Indo-French) Exports Ltd. Mar-10 0 0

Lakme Lever Pvt. Ltd. Mar-11 94.77 29.71

Naturite Agro Products Ltd. Mar-10 76.19 20.83

Nirma Ltd. Mar-11 88.54 4.27

Novo Agritech Ltd. Mar-10 278.62 21.78

Oriental Aromatics Ltd. Mar-10 94.61 3.07

Paramount Minerals & Chemicals Ltd. Mar-10 91.82 1.97

Parikh Herbals Ltd. Mar-11 98.18 11.11

Pee Cee Cosma Sope Ltd. Mar-11 97.64 5.17

Power Soaps Ltd. Mar-10 95.78 1.93

Privi Organics Ltd. Mar-11 89 4.19

Procter & Gamble Home Products Ltd. Mar-11 97.24 4.64

Procter & Gamble Hygiene & Health Care Ltd. Jun-11 94.51 9.37

R K S Agrotech Ltd. Mar-10 0.2 100

Reckitt Benckiser (India) Ltd. Dec-10 94.48 5.58

Rhodia Specialty Chemicals India Ltd. Dec-10 93.62 5.51

Sharp Menthol India Ltd. Mar-10 94.33 0.65

Shingar Ltd. Mar-10 93.45 9.43

Shree Cosmetics Ltd. Mar-11 62.57 39.73

Shreeji Dye-Chem Ltd. Mar-11 3.33 0

Sivalik Cellulose Ltd. Mar-10 14 0

Sonal Cosmetics (Exports) Ltd. Mar-11 100 100

Standard Surfactants Ltd. Mar-11 96.05 2.51

Sunehari Exports Ltd. Mar-10 89.14 7.38

Surya Vinayak Inds. Ltd. Mar-10 96.98 0.12

Synthite Industries Ltd. Mar-10 85.82 6.17

Tamilnadu Forest Plantation Corpn. Ltd. Mar-10 87.76 42.05

Ultra International Ltd. Mar-10 92.67 6.29

Unza International Ltd. Mar-10 54.52 16.96

Unzafrica Ltd. Mar-10 0 0

Utkal Soap Products Ltd. Mar-10 0 0

Major players

Emami Ltd Emami Limited is an Indian producer of fast moving consumer goods (FMCG), such as

cosmetics and health and baby products. The company is based in Kolkata. The inception of

Emami Group took place way back in mid seventies when two childhood friends, Mr. R.S.

Agarwal and Mr. R.S. Goenka left their high profile jobs with the Birla Group to set up Kemco

Chemicals, an Ayurvedic medicine and cosmetic manufacturing unit in Kolkata in 1974. It was

an extremely bold step in the early seventies when the Indian FMCG market was still dominated

by multinationals.

But against all odds with a vision of combining the age old wisdom of Ayurveda with modern

manufacturing techniques for creating winning brands the company was started with a meager

amount of Rs. 20,000. A dream of reaching out to the Indian middle class; a target audience who


http://en.wikipedia.org/wiki/Kolkata

they thought will have increasing potential for consumption, the company started manufacturing

cosmetic products as well as Ayurvedic medicines under the brand name of Emami from a small

factory in Kolkata. In 1978, Mr. Agarwal acquired Himani Ltd. Ten years after commencement

of the company, it launched their first flagship brand Boroplus Antiseptic Cream under the

Himani umbrella in 1984. Many additional brands followed Boroplus including Boroplus Prickly

Heat Powder which came as a brand extension of the mother brand. Today Boroplus is not only

the largest selling Antiseptic Cream in India but also in Russia, Ukraine, and Nepal.

Nineties was very eventful for Emami. The next flagship brand of the company Navratna Cool

Oil came in the nineties under the Himani Umbrella. In 2005 Emami created a marketing history

in India by launching Fair and Handsome, the first fairness cream for men. Among the brands

created by the company, today Navratna brand is Rs.300 crore followed by Boroplus brand

standing at Rs.250 crore and Fairness family standing at Rs.100 crore. Sona Chandi

Chyawanprash, Menthoplus and Fast Relief also among the top brands in their respective

categories. In 2006, J B Marketing & Finance Ltd., the erstwhile marketing company of the

Emami Group merged with Emami Ltd. and the total turnover of Emami including sales in

domestic and export market stood at Rs 516 crores at the end of the fiscal year 2006-07.

Emami Limited with an investment of Rs 700 crore has acquired major stake in Zandu

Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and Emami.

Post the acquisition of Zandu Pharmaceuticals a century old household name in India, some of its

prominent brands like Zandu Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu

Pancharishta, Sudarshan and Nityam Churna are also under Emami’s basket of brands. Within

three decades, the company has grown into a huge Rs. 1000 crore Emami Ltd under the flagship

company of the Rs.3000 crore Emami Group.

Executive summary

Executive Summary

Emami Ltd. Mar-08 Mar-09 Mar-10 Mar-11

Currency: Rs. Million (Non-Annualised) 12 mths 12 mths 12 mths 12 mths

-

Total income 6,049.80 7,591.90 10,488.90 12,779.30

Sales 5,830.20 7,407.90 10,081.50 12,223.60

Income from financial services 198.3 145.7 357.5 418.9

Total expenses 5,117.10 6,929.00 9,830.80 11,836.00

Raw materials, stores & spares 1,033.50 1,466.00 1,457.80 3,491.30

Power, fuel & water charges 12.9 34.2 55.3 60.9

Compensation to employees 301.8 447.2 609.2 659.9

Indirect taxes 413.8 470.3 682.2 832.8

Selling & distribution expenses 1,452.40 1,556.40 2,061.80 2,460.60

Other operational exp. of industrial ent.

Other operational exp. of non-fin. services ent.

Interest paid 54.4 315.7 547.1 154.9

Depreciation 72.8 178.9 1,174.90 1,160.30

Profits

PBDITA (Operating profit) 1,176.50 1,418.30 2,757.80 2,966.70

PBDITA net of P&E 1,169.40 1,390.00 2,732.00 2,873.60

Profit after tax (PAT) 927.5 778.7 633.1 1,254.00

PAT net of P&E 920.4 750.4 607.3 1,160.90

Total liabilities 4,538.30 9,070.00 11,048.50 11,753.10

Net worth 2,890.10 2,991.80 6,193.80 6,830.20

Paid up equity capital (net of forfeited equity cap.) 124.3 124.3 151.3 151.3

Reserves and funds 2,765.80 2,860.50 6,042.50 6,678.90

Borrowings 352 4,400.90 2,532.50 2,238.70

Fixed deposits

Current liabilities & provisions 1,241.50 1,587.10 2,189.00 2,496.30

Total assets 4,538.30 9,070.00 11,048.50 11,753.10

Net fixed assets 778.2 6,125.90 5,608.50 4,824.60

Investments 1,029.60 398.9 620.8 70.8

Current assets 1,566.20 2,096.90 4,060.00 5,587.60

Loans & advances 996.2 50.6 633.4 1,154.40

Gross fixed assets 1,057.10 7,064.50 7,634.80 7,969.70

Growth (%)

Total income 12.7 25.5 38.2 21.8

Total expenses 8.8 35.4 41.9 20.4

PBDITA 41.9 20.6 94.4 7.6

PAT 40.7 -16 -18.7 98.1

Net worth 26 3.5 107 10.3

Total assets 35.8 99.9 21.8 6.4

Profitability ratios

PBDITA net of P&E as % of Total inc net of P&E 19.4 18.4 26.1 22.7

PAT net of P&E as % of Total income net of P&E 15.3 9.9 5.8 9.2

PAT net of P&E as % of Avg. net worth 35.5 25.5 13.2 17.8

PAT as % of Avg. net worth 35.8 26.5 13.8 19.3

PAT net of P&E as % of Avg. total assets 23.4 11 6 10.2

PAT as % of Avg. total assets 23.5 11.4 6.3 11

Liquidity ratios (times)

Quick ratio 0.9 0.6 1.1 1.2

Current ratio 2 1.1 1.6 1.5

Debt to equity ratio 0.1 1.5 0.4 0.3

Interest cover 20.2 3.8 2.8 11.1

Debtors (days) 25.3 21.2 22.5 24.6

Creditors (days) 38.8 63.1 43.8 31.2

Average cost of Funds 18.8 13.3 15.8 6.5

Efficiency ratios (times)

Total income / Avg. total assets 1.5 1.1 1 1.1

Total income / Compensation to employees 20 17 17.2 19.4

Distribution of costs




-

Distribution of total expenses 100 100 100 100

Operating expenses 95 89.1 78.3 85.3

Financial charges 1.1 6.2 5.6 1.3

Provisions 0 0 0 0

Non-cash charges 1.4 2.6 12.5 9.8

Prior period and extra-ordinary expenses 0.2 0.1 0.1 0.2

Provision for direct tax 2.4 2.1 3.6 3.4

Distribution of operating expenses 100 100 100 100

Raw materials, stores & spares 21.3 23.8 18.9 34.6

Raw material expenses 21.2 23.6 18.8 34.4

Stores, spares, tools consumed 0.1 0.1 0.2 0.2

Purchase of finished goods 22 20.6 16.8 19.3

Packaging and packing expenses 5.6 7.7 13.7 0



Indirect taxes 8.5 7.6 8.9 8.3

Excise duty 1.9 2.8 2.1 1.9

Royalties, technical know-how fees, etc. 0 0 0 0

Rent & lease rent 0.3 0.3 0.3 0.3

Repairs & maintenance 0.8 1 1.2 1

Insurance premium paid 0.2 0.2 0.2 0.2

Outsourced manufacturing jobs 0 0 0 0

Outsourced professional jobs 0.9 2 1.2 1.5

Non-executive directors' fees 0.2 0.2 0.3 0.3

Advertising expenses 21.2 20.8 22.2 20.1

Marketing expenses 5.7 1.4 1.5 0.7

Distribution expenses 3.1 3 3 3.6

Travel expenses 1.4 1.4 1.3 1.3

Communications expenses 0 0 0 0

Printing & stationery expenses 0 0 0 0

Miscellaneous expenditure 2.5 2.3 1.7 1.7

Other operational exp. of industrial ent. 0 0 0 0

Other operational exp. of non-fin. services ent. 0 0 0 0

Source of growth in profits

Sources of Growth in Profits



-

Levels in each year

Sales 5,830.20 7,407.90 10,081.50 12,223.60

PBDIT 965.4 1,239.90 2,356.80 2,439.80

Profitability (times) 0.2 0.2 0.2 0.2

Change in each year

Change in PBDIT 302.2 274.5 1,116.90 83

Change in sales 629.5 1,577.70 2,673.60 2,142.10

Incremental profitability (Change in PBDIT /

change in income) (times) 0.5 0.2 0.4 0

Causes of change in PBDIT

Change in sales 80.3 261.2 447.5 500.8

Change in profitability 198 10.4 491.9 -344.6

Change in profitability on change in income 24 2.8 177.5 -73.2

Causes of change in PBDIT (% share)

Change in sales 26.6 95.2 40.1 603.3

Change in profitability 65.5 3.8 44 -415.1

Change in profitability on change in income 18 4 18.4 25.1

Levels in each year

Total income 6,034.20 7,558.00 10,456.70 12,657.40

PAT net of P&E 920.4 750.4 607.3 1,160.90


Change in each year

Change in PAT net of P&E 257.7 -170 -143.1 553.6

Change in total income 664.2 1,523.80 2,898.70 2,200.70


change in income) (times) 0.4 -0.1 0 0.3

Causes of change in PAT net of P&E

Change in total income with no chg. in profitability 82 232.4 287.8 127.8

Change in profitability with no chg. in income 156.4 -321.3 -311.4 351.8

Change in profitability on change in income 19.3 -81.1 -119.4 74

Causes of change in PAT net of P&E (% share)

Change in total income with no chg. in profitability 31.8 -136.7 -201.1 23.1

Change in profitability with no chg. in income 60.7 189 217.6 63.5

Change in profitability on change in income 7.5 47.7 83.5 13.4

Colgate Palmolive Ltd

Colgate Palmolive India Ltd., a subsidiary of Colgate Palmolive Company, USA was

incorporated in 1937. It is a bluechip company engaged in the FMCG business. The company's

51 per cent stake is with the promoters, around 26 per cent are with individuals and around 21

per cent is with institutional investors. Currently Mr. Fabian T Gracia is the Chairman of the

company. Colgate-Palmolive is Rs1,300 crore company started in year 1937.In Rs2,400 crore

domestic market it enjoys 50% of market share. It spread across 4.5 million retails outlets out of

which 1.5 million are direct outlets.

The Company is having four wholly owned subsidiaries namely Colgate-Palmolive (Nepal)

,Multimint Leasing & Finance and Jigs Investments and Passion Trading & Investment

Company. In November 2007, it acquired a 75% equity interest in Advanced Oral Care Products,

Professional Oral Care Products and SS Oral Hygiene Products, the company is the fastest

growing and one of the oldest company catering to the personal care products. The company is

regularly coming up with new products and has been a consistent financial performer. In July

2009, the Bombay High Court sanctioned the amalgamation of both subsidiaries of the company

- Advanced Oral Care Products, Goa and Professional Oral Care Products, Goa. In March 2010,

Colgate Palmolive (India) has acquired the remaining 25% of stake in CC Health Care Products

from the local shareholders at an aggregate price of Rs 69.07 lakh. Colgate already has 75%

stake in CC Health, which is engaged in the manufacture of toothpowder at Hyderabad.

It primarily manufactures and markets oral care products, which account for around 90 per cent

of its revenues. Over the years it has also diversified into personal care and household care

products. Its oral care segment includes tooth pastes/brushes/powder and whitening product. It

also has a specialised range of dental therapies under the banner of Colgate Oral

Pharmaceuticals. Personal care products include shower creme/gel, soaps, liquid hand wash,

shave preparations, skin care, talcum powder, hair oils, shampoos etc. Its house-hold care

segment has Axion dish washing paste. It markets its products under the brand names Colgate,

Palmolive, Halo, Charmis and Axion.

The registered office of the company is in Mumbai. The Company's original plant is located at

Sewri in Mumbai, which manufactures toothpaste, shaving cream and charmis cream. It has also

set up a plant at Waluj in Aurangabad for manufacturing toilet soaps and tooth powder with

backward integrated facilities for manufacturing fatty acid for its toilet soaps and Di-calcium

phosphate, a key ingredient for toothpaste. It has also set up a toothpaste manufacturing facility

at Baddi in the Solan district of Himachal Pradesh. It has a wide distribution network spread

across the country with warehousing facilities in Mumbai, Chennai and Kolkata.

Major competitors

Company Sales

(Rs.Million) Current

Price Change (%) P/E Ratio

Market Cap.(Rs.Million)

52-Week High/Low

Hindustan Unilever 194011.10 405.10 -1.17 33.57 886003.97 420/266

Dabur India 32643.70 106.50 0.09 36.73 185359.53 122/92

Godrej Consumer

Prod 23951.63 494.00 2.99 29.33 163223.68 494/363

Colgate Palmol. (I) 22205.58 1145.55 2.65 35.31 151767.98 1130/818

Marico 23468.70 171.05 -1.98 28.19 107306.05 177/127

Godrej Industries 10588.30 269.75 4.33 45.43 82121.92 269/168

Gillette India 10568.60 2550.00 1.21 133.21 82098.45 2543/1760

P&G Hygiene 10018.99 2190.15 -2.01 43.05 72549.74 2270/1600

Emami 12023.80 396.90 -1.56 25.12 61008.90 545/321

Nirma 32466.50 255.50 0.00 31.66 40684.72 259/214

Bajaj Corp 3586.73 117.15 1.25 15.11 17065.75 132/95

Jyothy Laboratories 6455.14 165.80 2.95 16.69 12985.78 252/125

Reckitt Benckiser 17901.19 246.25 0.00 2.78 8104.87 0/0

Amar Remedies 5780.12 154.00 2.36 9.42 3936.40 158/86

Fem Care Pharma 1074.71 980.05 0.00 18.50 3458.99 1010/980

Rayban 585.42 136.35 0.00 16.15 3336.88 137/135

Henkel India 4501.72 24.25 0.21 8.74 2818.19 44/20

Parikh Herbals 5.57 198.35 1.98 0.00 1945.00 195/50

JHS Svendgaard 854.15 44.10 9.02 0.00 689.67 88/27

JL Morison India 1009.54 365.00 1.39 132.81 491.41 398/266

MFL India 759.47 9.30 4.26 61.45 321.38 14/8

GKB Ophthalmics 253.82 34.65 5.00 11.21 137.07 50/25

Pee Cee Cosma Sope 268.21 38.75 0.00 162.77 102.54 92/37

Paramount

Cosmetics 430.73 15.17 0.00 4.65 73.65 27/10

Guj. Meditech 2.82 18.45 3.07 0.00 73.57 70/6

Ador Multiprod 106.81 15.61 4.07 62.22 39.20 31/13

Muller & Phipps (I) 122.01 58.40 -4.89 0.00 38.38 103/56

Velvette Intl. Phar 9.21 3.10 0.00 0.00 15.29 0/0

Synergy Cosmetics NA 1.16 -4.92 8.39 13.84 2/1

Ideal Optics 34.30 2.67 0.00 55.13 12.13 3/3

Milestone

In 2003 Colgate was ranked as India’s Most Trusted Brand across all categories by Brand

Equity’s Most Trusted Brand Survey for four consecutive years from 2003 to 2007.

Colgate was also rated as the number one brand by the A&M – MODE Annual Survey

for India’s Top Brands for eight out of nine years during the period 1992 to 2001.

In 2011 Colgate-Palmolive (India), the market leader in oral care, in association with the

Indian Dental Association (IDA) achieved the Guinness World Records™ for ‘maximum

number of dental check-ups’ in a single day (multiple venues).

Executive summary

Executive Summary

Colgate-Palmolive (India) Ltd. Mar-07 Mar-08 Mar-09 Mar-10


-

Total income 14,523.80 16,380.00 18,659.20 21,237.10

Sales 14,212.50 15,973.00 18,106.60 20,794.80


Total expenses 12,967.30 14,070.40 15,767.40 17,143.30


Power, fuel & water charges 76.3 77.4 111 140.3

Compensation to employees 1,699.30 1,182.80 1,434.00 1,596.80

Indirect taxes 1,010.50 908.2 705.2 746.6




Interest paid 9.8 14.4 11 15

Depreciation 152.6 198.5 225.8 375.7

Profits


PBDITA net of P&E 2,093.80 2,978.80 3,532.70 5,124.30

Profit after tax (PAT) 1,601.70 2,317.10 2,902.20 4,232.60

PAT net of P&E 1,517.00 2,162.50 2,745.00 4,118.20


Net worth 2,805.30 1,622.10 2,163.00 3,261.10

Paid up equity capital (net of forfeited equity cap.) 1,359.90 136 136 136


Borrowings 42.8 46.9 46.9 45.9

Fixed deposits


Total assets 7,196.90 7,164.40 7,897.20 9,014.60

Net fixed assets 1,676.90 1,905.60 1,739.30 2,469.40

Investments 1,333.40 725.9 383.3 210

Current assets 2,391.20 2,543.60 3,669.30 5,056.00

Loans & advances 1,153.00 1,481.80 1,707.80 851.5


Growth (%)

Total income 14.9 12.8 13.9 13.8

Total expenses 15.9 8.5 12.1 8.7

PBDITA 4.7 43.8 17.8 42

PAT 16.4 44.7 25.3 45.8

Net worth 3.5 -42.2 33.3 50.8

Total assets 13 -0.5 10.2 14.1



PAT net of P&E as % of Total income net of P&E 10.5 13.3 14.8 19.5

PAT net of P&E as % of Avg. net worth 55 97.7 145 151.8


PAT net of P&E as % of Avg. total assets 22.4 30.1 36.5 48.7

PAT as % of Avg. total assets 23.6 32.3 38.5 50.1


Quick ratio 0.3 0.3 0.5 0.7

Current ratio 0.6 0.5 0.7 0.9

Debt to equity ratio 0 0 0 0

Interest cover 198.1 193.1 300.6 316.6

Debtors (days) 2 2.1 2 1.8

Creditors (days) 90.1 94 95.1 94.8

Average cost of Funds 22.7 32.1 23.5 32.3


Total income / Avg. total assets 2.1 2.3 2.5 2.5

Total income / Compensation to employees 8.5 13.8 13 13.3





-


Operating expenses 94.1 94.5 94.3 92.7


Provisions 0 0 0 0

Non-cash charges 1.4 1.3 2 1.5

Prior period and extra-ordinary expenses 0 0 0 0



Raw materials, stores & spares 13 26.9 39.5 39.4

Raw material expenses 12.7 26.5 39 38.9


Purchase of finished goods 26.8 23.5 9.8 8.5

Packaging and packing expenses 8.5 0 0 0




Excise duty 5.9 4 4 5.1

Royalties, technical know-how fees, etc. 3.2 4 5.4 5.9

Rent & lease rent 0.9 0.9 0.8 0.7

Repairs & maintenance 0.9 0.7 0.7 0.5


Outsourced manufacturing jobs 0.1 0.1 0.2 0.2

Outsourced professional jobs 1.9 2 1.9 1.6

Non-executive directors' fees 0 0 0 0


Marketing expenses 0 0 0 0

Distribution expenses 2.7 3 3.1 3.8






Lakme Lakmé is an Indian brand of cosmetics, owned by Unilever and run by CEO Himanshu Jani.

Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was

named after the French opera Lakmé, which itself is the French form of Lakshmi, the goddess of

wealth, also renowned for her beauty. Indian cosmet Lakme was started in 1952, famously

because the then Prime Minister, Jawaharlal Nehru, was concerned that Indian women were

spending precious foreign exchange on beauty products, and personally requested JRD Tata to

manufacture them in India. Simone Tata joined the company as director, and went on to become

its chairman. In 1996 Tata sold off their stakes in Lakmé Lever to HLL, for Rs 200 Crore (45

million US$), and went on to create Trent and Westside. Even today, when most multinational

beauty products are available in India, Lakme still occupies a special place in the hearts of Indian

women

Lakme also started its new business in the beauty industry by setting up Lakme Beauty Salons all

over India. Now HUL (Hindustan Unilever Limited) has about 110 salons all over India

providing beauty services. Lakme' has been ranked as 47th most trusted brand in India by The

Brand Trust Report

Executive summary

Executive Summary

Lakme Exports Ltd. [Merged] Mar-95 Mar-96 Mar-97 Dec-97


-

Total income 119.2 121.2 103.1 101.3

Sales 102.5 50.4 84.3 81.3


Total expenses 126.7 92.4 82.2 82.3





Selling & distribution expenses 20.2 13.7 0.2 0.1



Interest paid 1.8 2.5 2 1.9

Depreciation 3.9 3.3 2.9 2

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Cosmetics


http://en.wikipedia.org/w/index.php?title=Tata_Oil_Mills&action=edit&redlink=1

http://en.wikipedia.org/wiki/Tata_Group

http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Opera

http://en.wikipedia.org/wiki/Lakm%C3%A9

http://en.wikipedia.org/wiki/Lakshmi

http://en.wikipedia.org/wiki/Jawaharlal_Nehru

http://en.wikipedia.org/wiki/JRD_Tata

http://en.wikipedia.org/wiki/Simone_Tata

http://en.wikipedia.org/wiki/Trent_(Westside)

http://en.wikipedia.org/wiki/The_Brand_Trust_Report



Profits

PBDITA (Operating profit) 18.6 39.9 35.3 36.2

PBDITA net of P&E 18.3 -15 34.4 36

Profit after tax (PAT) 8.8 18.6 18.9 21.3

PAT net of P&E 8.5 -36.3 18 21.1

Total liabilities 221.6 208.2 229.4 244.1

Net worth 170.5 174.1 178 199.3

Paid up equity capital (net of forfeited equity cap.) 15 15 15 15

Reserves and funds 155.5 159.1 163 184.3

Borrowings 21.4 40

Fixed deposits

Current liabilities & provisions 29.7 34.1 11.4 44.8

Total assets 221.6 208.2 229.4 244.1

Net fixed assets 31.9 28.9 27.9 26.8

Investments 102.5 102.5 102.5 102.5

Current assets 75.5 64.6 45.8 64.8

Loans & advances 10.6 12.2 52.9 50

Gross fixed assets 50.8 49.1 50.9 51.8

Growth (%)

Total income -3.1 1.7 -14.9 43.3

Total expenses 12.8 -27.1 -11 47

PBDITA -10.1 114.5 -11.5 51.8

PAT -10.2 111.4 1.6 72.1

Net worth 1.7 2.1 2.2 16.3

Total assets 9 -6 10.2 8.6





-




Provisions 0 1.6 0 0


Prior period and extra-ordinary expenses 0 0.2 0.2 0

Provision for direct tax 3.2 16.8 14 13.4



Raw material expenses 50.7 3.9 8.2 9.2


Purchase of finished goods 1.9 7.4 0 0

Packaging and packing expenses 0 17 47.3 59.3


Compensation to employees 11.5 20 15.1 10.5

Indirect taxes 1 6.8 7 3.3

Excise duty 0.9 5.1 6.4 3.3


Rent & lease rent 3 4.2 0.6 0.3

Repairs & maintenance 1.9 1.7 2.6 1

Insurance premium paid 1 1.3 0.8 0.6


Outsourced professional jobs 0 0 0 0


Advertising expenses 5.4 11.3 0.2 0

Marketing expenses 7 5.2 0 0

Distribution expenses 4.9 3.3 0.2 0.1

Travel expenses 0 0 0 0










-

Levels in each year

Sales 102.5 50.4 84.3 81.3

PBDIT 1.9 -30.7 16.7 16.2

Profitability (times) 0 -0.6 0.2 0.2

Change in each year

Change in PBDIT -1.5 -32.6 47.4 -0.5

Change in sales -3.2 -52.1 33.9 -3


change in income) (times) 0.5 0.6 1.4 0.2


Change in sales -0.1 -1 -20.6 -0.6

Change in profitability -1.4 -64.3 40.7 0.1

Change in profitability on change in income 0 32.7 27.4 0


Change in sales 6.9 3 -43.6 118.9

Change in profitability 96 197.3 85.8 -19.6

Change in profitability on change in income -0.2 -66.7 86.3 0

Levels in each year

Total income 118.9 66.1 102 101.1

PAT net of P&E 8.5 -36.3 18 21.1

Profitability (times) 0.1 -0.5 0.2 0.2

Change in each year

Change in PAT net of P&E -1 -44.8 54.3 3.1

Change in total income -3.8 -52.8 35.9 -0.9


change in income) (times) 0.3 0.8 1.5 -3.4


Change in total income with no chg. in profitability -0.3 -3.8 -19.7 -0.2

Change in profitability with no chg. in income -0.7 -73.8 48 3.3

Change in profitability on change in income 0 32.8 26.1 0


Change in total income with no chg. in profitability 29.4 8.4 -36.3 -5.1

Change in profitability with no chg. in income 72.8 164.7 88.3 106.1

Change in profitability on change in income -2.3 -73.1 48 -0.9

Ponds

Pond's Cream is a brand of beauty and health care products that is produced by the Ponds

Institute which is owned by the multinational company Unilever. Pond's Cream was invented in

the United States as a medicine by scientist Theron T. Pond (1800–1852) in 1846. Mr. Pond

extracted a healing tea from witch hazel, with which he discovered he could heal small cuts and



http://en.wikipedia.org/wiki/Theron_T._Pond

http://en.wikipedia.org/wiki/Witch-hazel

other ailments. The product was named "Golden Treasure", after Theron died, it would be known

as "Pond's Extract".

By the twentieth century, the company's main strategy was geared towards selling cosmetics

products, and so the "Pond's Vanishing Cream" and the "Pond's Cold Cream" were created,

marking the entrance of Pond's products into the facial care industry. Today Ponds is sold around

the world. Its strengths are in Spain, India, Japan and Thailand. Pond's Company was merged in

1955 with the Chesebrough Manufacturing Company, which had a good percentage of brands in

the facial care field. With this merger, "Pond's Creams" would become sisters with the Cutex nail

polish brand and the Matchabelli perfumes. In 1987, the Chesebrough Manufacturing Company

by most known as "Chesebrough-Ponds", was acquired by Anglo-Dutch company Unilever,

giving "Pond's Creams" a more international reach. Then 14% of the company was subsequently

traded privately to Bhosle Group of Industries for an undisclosed amount of money. The Brand

Trust Report, India Study, 2011, conducted by the Trust Research Advisory included Pond's in

the list of the most trusted brand in India.

Executive summary

Executive Summary

Pond'S (India) Ltd. [Merged] Dec-94 Dec-95 Dec-96 Dec-97


-

Total income 2,614.50 3,221.10 3,999.70 4,753.80

Sales 2,577.40 3,171.30 3,952.20 4,696.90


Total expenses 2,350.40 2,846.30 3,651.20 4,164.90

Raw materials, stores & spares 840.4 1,108.10 1,454.90 1,946.20



Indirect taxes 39.3 29 28.7 30.8

Selling & distribution expenses 287.9 366 505.8 671.7



Interest paid 25.4 14.5 15.7 3.7

Depreciation 21.1 26 33.8 40.2

Profits

PBDITA (Operating profit) 482.5 582 688.1 834.3

http://en.wikipedia.org/w/index.php?title=Vanishing_Cream&action=edit&redlink=1

http://en.wikipedia.org/wiki/Cold_Cream

http://en.wikipedia.org/wiki/Chesebrough_Manufacturing_Company

http://en.wikipedia.org/wiki/Cutex

http://en.wikipedia.org/wiki/Prince_Matchabelli

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Netherlands


http://en.wikipedia.org/w/index.php?title=Bhosle_Group_of_Industries&action=edit&redlink=1



PBDITA net of P&E 490.1 578.7 690.9 852.8

Profit after tax (PAT) 300.5 377.9 459.6 611.2

PAT net of P&E 308.1 374.6 462.4 629.7


Net worth 837.5 1,008.20 1,176.80 1,987.10

Paid up equity capital (net of forfeited equity cap.) 140 140 140 298.6

Reserves and funds 707.3 875.4 1,041.40 1,690.60

Borrowings 47.6 46.9 1.8 1.5

Fixed deposits 43.7 25.2

Current liabilities & provisions 540.6 666 931.3 1,005.80

Total assets 1,435.50 1,728.30 2,114.50 2,996.50

Net fixed assets 314.4 404.6 484.3 540.3

Investments 146 128 149.1 194.8

Current assets 853.2 966.3 1,384.00 2,145.10

Loans & advances 71.9 178.7 23.7 49.9

Gross fixed assets 427 541.8 652.5 744.8

Growth (%)

Total income 18.7 23.2 24.2 18.9

Total expenses 15 21.1 28.3 14.1

PBDITA 25.2 20.6 18.2 21.2

PAT 33.7 25.8 21.6 33

Net worth 21.4 20.4 16.7 68.9

Total assets 12.3 20.4 22.3 41.7





-




Provisions 0.1 0.1 0 0.1

Non-cash charges 1 1 1 1

Prior period and extra-ordinary expenses 0.3 0 0.3 0.4



Raw materials, stores & spares 39.2 42.2 43.1 50

Raw material expenses 39 42 42.9 49.9



Packaging and packing expenses 0 0 0 0




Excise duty 0 0 0 0


Rent & lease rent 0.5 0.5 0.3 0.4

Repairs & maintenance 1.1 1 1 0.9



Outsourced professional jobs 0 0 0 0




Distribution expenses 0 0 0 0

Travel expenses 0 0 0 0



Miscellaneous expenditure 5.8 4.7 4.6 4







-

Levels in each year

Sales 2,577.40 3,171.30 3,952.20 4,696.90

PBDIT 453 533.4 650.5 795.9


Change in each year

Change in PBDIT 109.6 80.4 117.1 145.4

Change in sales 417.7 593.9 780.9 744.7




Change in sales 66.4 104.4 131.3 122.6

Change in profitability 36.2 -19.5 -11.4 19.2

Change in profitability on change in income 7 -4.5 -2.8 3.6


Change in sales 60.6 129.8 112.2 84.3

Change in profitability 33 -24.2 -9.8 13.2

Change in profitability on change in income 8.5 -10.4 -3.9 3.4

Levels in each year

Total income 2,614.50 3,216.60 3,992.60 4,753.80

PAT net of P&E 308.1 374.6 462.4 629.7


Change in each year

Change in PAT net of P&E 97.9 66.5 87.8 167.3

Change in total income 427.3 602.1 776 761.2




Change in total income with no chg. in profitability 41.1 71 90.4 88.2




Change in total income with no chg. in profitability 41.9 106.7 102.9 52.7



Procter & Gamble Procter & Gamble Hygiene and Health Care Ltd was incorporated in the year 1964, as

Richardson Hindustan Ltd (RHL). The company initially manufactured menthol, dementholised

peppermint oil and Vicks range of products. RHL was acquired by Procter & Gamble, USA in

the year 1985 consequent to which its name was changed to Procter & Gamble India Ltd. In the

year 1999, the company got its present name.

The company manufactures and markets two types of products - healthcare products and female

hygiene products which are sold under the famous brands 'Vicks' and 'Whisper' respectively.

There are variants under each of these two brands. But the two brands dominate the offerings.

P&GHH has sold a number of non-core businesses and brands. The company divested its

laundry and detergent business to its sister concern P&GHP in 1992--93 even as it continued to

contract manufacture detergents for it. In October 2005, the company completely exited the

detergent business after transferring its manufacturing facility to P&GHP.

The company divested Medikar anti-lice shampoo business to Marico Industries in 1998--99.

Another manufacturing tie-up for shampoo, formed with P&GHP, was terminated in 1999--2000

after a formulation change of the product had necessitated huge capital investment. In 2000--01,

the company divested one of its earlier brands, Clearasil. Old Spice brand of products, which the

company started marketing in the year 1993 was licensed (trademark & business) to Menezes

Cosmetics Pvt. Ltd in December 2002. After the various disinvestments, the company is left with

its 'Vicks' and 'Whisper' businesses. The former accounts for about 40 per cent of the revenues

and the latter about 60 per cent.

The company's plant is located at Kundaim in Goa with capacity for cream and formulations at

4,213 tonnes per annum and that for cosmetics, perfumes and toilet preparations at 10,133 tonnes

per annum. The company's capacity utilisation is low at 24 per cent for healthcare products and

42 per cent for cosmetics, perfumes and toilet preparations.

The company purchases personal products and toilet preparations from outside. But over the past

five years, the purchases have declined drastically and in 2005-06 they formed 4.8 per cent of

total raw material cost. The company also outsources manufacture of healthcare products.

The company has set up two new plants for healthcare products in Baddi, Himachal Pradesh. The

plants commenced commercial production during March 2007 quarter. The company exports

Vicks Vaporub to Asean countries, Japan and Australia. However, the exports turnover

contribute a meagre one per cent to the overall sales revenue of the company.

The foreign promoters of the company Procter and Gamble and Rosemount Corporation own

around 68.7 per cent of the total stake. Institutional Investors and the Indian public hold stakes

of 8.4 per cent and 17.5 per cent, respectively.

Executive summary

Executive Summary

Procter & Gamble Hygiene & Health Care Ltd. Jun-08 Jun-09 Jun-10 Jun-11


-

Total income 6,944.60 8,518.30 9,857.40 11,226.30

Sales 6,555.70 7,756.70 9,171.20 10,401.80


Total expenses 5,762.30 6,770.80 8,055.00 9,724.00



Compensation to employees 542 619.7 747.1 860.7

Indirect taxes 232.4 153.4 185 437.3



Other operational exp. of non-fin. services ent. 66.8 88.4 101 122.5

Interest paid 0.3 0.3 0.3

Depreciation 121.2 143.7 193.9 221.6

Profits


PBDITA net of P&E 1,931.50 2,361.90 2,497.20 2,008.60

Profit after tax (PAT) 1,314.20 1,788.50 1,797.70 1,508.80

PAT net of P&E 1,318.50 1,690.10 1,764.50 1,528.00


Net worth 3,466.40 4,400.30 5,346.30 6,006.20

Paid up equity capital (net of forfeited equity cap.) 324.6 324.6 324.6 324.6


Borrowings

Fixed deposits


Total assets 7,356.80 8,741.50 11,078.40 11,944.10

Net fixed assets 1,230.80 1,322.80 1,303.80 1,903.90

Investments

Current assets 2,806.90 2,133.40 3,854.60 3,183.40

Loans & advances 3,116.40 4,976.60 5,177.50 6,701.20


Growth (%)

Total income 15 22.7 15.7 13.9

Total expenses 11.7 17.5 19 20.7

PBDITA 34 27.7 2.8 -21.4

PAT 46.3 36.1 0.5 -16.1

Net worth 19 26.9 21.5 12.3

Total assets 25 18.8 26.7 7.8



PAT net of P&E as % of Total income net of P&E 19 20.1 18.1 13.6

PAT net of P&E as % of Avg. net worth 41.3 43 36.2 26.9


PAT net of P&E as % of Avg. total assets 19.9 21 17.8 13.3

PAT as % of Avg. total assets 19.8 22.2 18.1 13.1


Quick ratio 0.6 0.3 0.6 0.4

Current ratio 0.7 0.5 0.7 0.5

Debt to equity ratio 0 0 0 0

Interest cover 6,034.30 7,677.70 5,956.70

Debtors (days) 7.8 8.4 10.2 10.7

Creditors (days) 92.2 68.8 99.8 72.1

Average cost of Funds 0


Total income / Avg. total assets 1 1.1 1 1

Total income / Compensation to employees 12.8 13.7 13.2 13





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Financial charges 0.4 0.3 0.2 0

Provisions 0 0 0 0.1


Prior period and extra-ordinary expenses 0.2 0.3 0.8 0.2



Raw materials, stores & spares 26.4 29 25.5 23.3

Raw material expenses 25.7 28.5 25 22.8



Packaging and packing expenses 10.7 10.4 8 9.8




Excise duty 1.7 0 1.8 3.8

Royalties, technical know-how fees, etc. 6.7 6.9 8.1 5.6

Rent & lease rent 0.4 0.2 0.3 0.2

Repairs & maintenance 0.8 0.6 0.7 0.5

Insurance premium paid 0.1 0.1 0 0

Outsourced manufacturing jobs 4 2.3 1.4 2.5

Outsourced professional jobs 2.6 1.5 1.7 1.8

Non-executive directors' fees 0.1 0.1 0 0



Distribution expenses 6.1 7 5.8 4.5


Communications expenses 0.5 0.5 0.5 0.5




Other operational exp. of non-fin. services ent. 1.3 1.5 1.4 1.3

Sources of growth in profits




-

Levels in each year

Sales 6,555.70 7,756.70 9,171.20 10,401.80

PBDIT 1,547.40 1,718.30 1,906.60 1,184.10


Change in each year

Change in PBDIT 481.9 170.9 188.3 -722.5

Change in sales 995.5 1,201.00 1,414.50 1,230.60




Change in sales 190.8 283.5 313.3 255.8

Change in profitability 246.9 -95.2 -105.8 -862.6

Change in profitability on change in income 44.2 -17.4 -19.3 -115.7


Change in sales 39.6 165.9 166.4 -35.4

Change in profitability 51.2 -55.7 -56.2 119.4

Change in profitability on change in income 2,763.10 8.2 4.2 8.8

Levels in each year

Total income 6,939.80 8,400.30 9,761.80 11,226.30

PAT net of P&E 1,318.50 1,690.10 1,764.50 1,528.00


Change in each year

Change in PAT net of P&E 312.2 371.6 74.4 -236.5

Change in total income 899.3 1,460.50 1,361.50 1,464.50




Change in total income with no chg. in profitability 149.8 277.5 273.9 264.7

Change in profitability with no chg. in income 141.3 77.8 -171.7 -435.8

Change in profitability on change in income 21 16.4 -27.8 -65.4


Change in total income with no chg. in profitability 48 74.7 368.2 -111.9

Change in profitability with no chg. in income 45.3 20.9 -230.8 184.3

Change in profitability on change in income 6.7 4.4 -37.4 27.6

Summary

Size of the Industry The size of Indian Cosmetics Industry globally is $ 274 billion, while

that of the Indian cosmetic industry is $ 4.6 billion.

Market Capitalization

According to analysis and figures given by the Confederation of Indian

Industries (CII), the total Indian beauty and cosmetic market size

currently stands at US$950 million and showing growth between 15-

20% per annum.

Output per annum Industry sources estimate a rapid growth rate of 20% per annum

Percentage in World

Market The overall beauty and wellness market that includes beauty services

stands at about US$2,680 million, according to CII estimates.

Bearing a long glowing heritage of cosmetic and beauty, aesthetic makeup products is being used

since olden days and nowadays it appear like a booming economy in India which would be the

largest cosmetic consuming country in a next few decades. While the demand of beautifying

substances are growing day by day, a large number of local as well as international

manufacturers gradually extend their ranges and products in different provinces of India.

Since 1991 with the liberalization along with the crowning of many Indian women at

international beauty pageants, the cosmetic industry has come into the limelight in a bigger way.

Subsequently their has been a change in the cosmetic consumption and this trend is fueling

growth in the cosmetic sector. Indian cosmetic Industry had rapid growth in the last couple of

years. While this is due to the improving purchasing power and increasing fashion

consciousness, the industry is expected to maintain the growth momentum during the period

2009-2012. In the Indian Cosmetic Industry both electronic as well as print media are playing an

important role in spreading awareness about the cosmetic products and developing fashion

consciousness among the Indian consumers.

Due to the development of satellite television and a number of television channels as well as the

Internet in the modern day, the Indian consumers are constantly being updated about new

cosmetic products, translating into the desire to purchase them. Additionally, the flourishing

Indian fashion/film industry is fueling growth into the Cosmetic industry in India by making

Indians to realize the importance of having good looks and appearances. Today most of the

cosmetics manufacturers in India cater to the domestic market but they are gradually establishing

their footholds in overseas markets. In recent years, cosmetic manufactures in India have

received orders from overseas markets; for example - Indian herbal cosmetic products have a

tremendous demand in the international market.

indian cosmetic industry

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