The Indian FMCG Industry

Dinodia Capital Advisors September 2012

Index
I. II. Executive Summary Market Overview
Industry Overview Evolution of the Indian FMCG Sector Porters Five Forces Model S
WOT Analysis Key Challenges Trends in the Industry Growth Drivers Government Pol
icies Major Segments
III.
Industry Analysis

IV. Investments in the Sector
Recent M&A Deals Recent Private Equity Deals
V.
Major Players
Major Players Common Stock Comparison
1

Index
VI. Profiles of the Major Players
ITC HUL Nestle Dabur Godrej Consumer Colgate-Palmolive Marico GSK Consumer
nnia
VII. Corporate Profile (Dinodia Capital Advisors)
2

Executive Summary (1/2)

The Fast Moving Consumer Goods (FMCG) sector in India has been growing at a heal
thy CAGR of 11% over the last decade Riding on the back of increasing demand and
changing consumer preferences, thanks to higher disposable incomes and the reta
il revolution, the sector has been posting double-digit growth over the past cou
ple of years The industry is volume driven and is characterized by low margins.
The products are branded and backed by skilled marketing, heavy advertising, sli
ck packaging and strong distribution networks. Also, raw material prices play an
important role in determining the pricing of the final product Modern retail fo
rmats too have contributed in a major way in pushing the growth in the FMCG sect
or. With rising income levels and the spread of modern retail, the FMCG industrys
future prospects look bright which is expected to further boost sales
Growth in the sector is led by higher urban and rural demand. Going forward , th
e governments growing support to agriculture will drive long-term growth in consu
mption from the rural sector
In our view, amongst all the FMCG segments, the food segment will outperform ove
r the coming years
3

Executive Summary (2/2)

The Indian food industry is a significant part of the Indian economy,(food const
itutes about 36% of the consumer wallet) The Indian food industry is poised to g
row by a whopping 63.5% from Rs 788,100crs now to Rs.1,288,900crs in next 5 year
s and by 137.8% to Rs. 1,874,100crs in next 10 years, throwing up huge opportuni
ties for investments across the entire value chain1 India faces contrasting prob
lems of having one of the highest malnutrition cases and also being the diabetes
capital of the World.In our view, both of these are an opportunities for Food c
ompanies. The Health foods segment is likely to see one of the highest growth in
the Food segment To exploit this trend many companies have launched health base
d products viz. Britannia launched Nutrichoice biscuits, Danone launching probio
tic yogurt, Dabur introduced a juice with fiber and HUL introduced Soya and mult
igrain atta, iodized salt, energy drinks We believe that the demand for these pr
oducts is going to outpace the overall Food Category growth for the years to com
e
Source:
1
India Food Guide, Edelweiss Feb12
4

Market Overview
MARKET OVERVIEW
Industry Overview Evolution of Indian FMCG Sector Porters Five Forces Model SWOT
Analysis
5

Industry Overview
Fast Moving Consumer Goods (FMCG) goods, popularly named as consumer packaged go
ods, play a vital role as a necessity and as an inelastic product
The Indian FMCG sector is the fourth largest sector the economy with a total mar
ket size of Rs. 167,100crs1
The market is estimated to grow to US$ 100 billion by 2025, according to market
research firm Nielsen In the last decade the FMCG sector has grown at an average
of 11% a year; in the last five years, annual growth accelerated to 17% The FMC
G Industry is characterized by a well established distribution network, low pene
tration levels, low operating cost, lower per capita consumption and intense com
petition between the organized and unorganized segments FMCGs are slowly and gra
dually positioning and deeply penetrating in the fast growing rural market. The
Rural mindset is open to consumption of newer, more contemporary food categories
and as a result, drive consistent growth
6
Source: 1 Dabur Corporate Presentation March12

Industry Overview
Urban Vs. Rural
FMCG Industry Size (in Rs bn) 1,671
FMCG Industry Urban (in Rs bn)
1,111 960
1,451
CY 10
CY 11
CY 10
CY 11
FMCG Industry Rural (in Rs bn)
559 491
The FMCG sector in India continues on a strong growth path with both Urban and R
ural India contributing to its growth. Rural India contributes one third of FMCG
sales in India
CY 10
CY 11
Growth driven by increasing consumption led by rise in incomes, changing lifesty
les and favorable demographics
Source: 1 Dabur Corporate Presentation March12
7

Industry Overview
Rural India accounts for more than 700 Million consumers or 70% of the Indian po
pulation and accounts for 40% of the total FMCG market The Rural market is a lar
ge market space with very low organized player penetration. Across the globe, th
e Indian rural market is probably the single largest unit of opportunity
Also with changing lifestyle and increasing consumer demand, the Indian FMCG mar
ket is expected to cross $80 billion by 2026 in towns with population of up to 1
0 lakh
The sector has a tremendous opportunity for growth in India, with the growing po
pulation, the rising incomes, education and urbanization, the advent of modern r
etail, and a consumption-driven society
# According to Nielsen, FMCG growth was 10.7% in the rural market and 10.8% in t
he urban market during the quarter ended December 2011; for the quarter ended Ma
rch 2012, while growth in the urban market improved to 16.5%, it rose even highe
r, to 17.2%, in the rural market*
Source: *Business Standard May12
8

Industry Overview
The following matrix shows the room for growth in various categories of the FMCG
products:
There is ample room for growth in various categories of FMCG products
100% 90% 80% 70%
Rural penetration (%)
Edible oil Washing pow eders Hair oil T oilet soap Detergent bar Tea
Biscuits 60% 50% Shampoo 40% Toothpow der Talcum Pow der 20% 10% Coffee Skin cre
am Soft drinks Utensil clearners Insencticides Vanaspati Balms Toothpaste
Milk pow der Health Ice Cream Mints Chocolates Baby oil T oilet cleaners Noodles
Floor cleaners 0% Ketchup Deodorants
Urban penetration (%)
Source: HSBC Global Research December 2011
9

Evolution of the Indian FMCG Sector

# The industry is volume driven and is characterized by low margins
10
Source: IBEF

Porters 5 Forces Model

Threat of new entrants: Moderate
Low regulatory barriers High competitive intensity requires large investments in b
rand building which deters small players
Threat of Substitutes : High
Multiple brands positioned with narrow product differentiation
Companies entering a category / trying to gain market share compete on pricing w
hich increases product substitution
Bargaining power of consumers: Low
High brand loyalty for some products, thereby discouraging customers product shift
Low switching costs
Overall: Moderately Attractive FMCG Industry
Bargaining power of Suppliers: Moderate
Prices are generally governed by international commodity markets, making most FM
CG companies price takers
Rivalry
Aggressive marketing strategies among competitors: High Due to the long term rela
tionships with suppliers etc., FMCG companies induce customers to switch More MN
Cs entering the country negotiate better rates during times of between products
high input cost inflation Advertising spends continue to grow and marketing budg
ets as well as strategies are becoming more aggressive 11

SWOT Analysis
Moderate operating costs Presence of established distribution networks in both u
rban and rural areas Presence of well-known brands in FMCG sector Favorable gove
rnment policies
Strengths
Weaknesses
Lower scope of investing in technology and achieving economies of scale, especia
lly in small sectors Low exports levels Counterfeit Products
Untapped rural market Rising income levels, i.e. increase in purchasing power of
consumers Large domestic market- a population of over one billion Export potent
ial High consumer goods spending
Opportunities
Threats
Removal of import restrictions resulting in replacement of domestic brands Slowd
own in rural demand Tax and regulatory structure
12

Industry Analysis
INDUSTRY ANALYSIS
Key Challenges Trends in the Industry Growth Drivers Opportunities in the Sector
Government Policies Segment Overview
13

Key Challenges
Commodity prices fluctuate, which make it difficult to finalize raw material pri
ces, affecting the final price of the product
Price of inputs
Indian consumers are very price-sensitive and value conscious, making it difficu
lt for FMCG firms to pass on the increased costs
Private labels serve to lower the consumers price points, particularly at the mas
s level Conflicts of interest when a retail chain has its own label whose packag
ing looks like category leaders and stocks brands of other manufacturers, (in ter
ms of display space, promotions etc) These products narrow the scope of FMCG pro
ducts in rural and semi-urban market The spurious pass off products affect large
, high quality brands which have actually invested money in research and develop
ment to create their products and build brand equity
Emergence of Private Labels
Counterfeit and Pass-offs
Infrastructural Bottlenecks
Power Costs Transportation Infrastructure Agricultural Infrastructure
14

Industry Trends
Consolidation Indian FMCG companies are consolidating their existing business po
rtfolios Several companies have started innovating by launching or customizing t
heir existing product portfolios for new consumer segments Lifestyle and premium
range products are the current hot target product segments among Indian FMCG pl
ayers
Product innovation
Lifestyle products
Expanding horizons
A number of companies are exploring the business potential of overseas markets a
nd several regional markets
Backward integration
Backward integration is becoming the preferred strategy for increasing profit ma
rgins
Expanding distribution networks
Companies are now focused on improving their distribution networks to expand the
ir reach in rural India
15

Industry Trends
Third-party manufacturing FMCG players often outsource manufacturing or processi
ng of a certain range of products to small vendors. This approach has helped com
panies focus on front-end marketing Companies are increasingly introducing small
er stock keeping units at reduced prices. This helps them sustain margins, maint
ain volumes from price-conscious customers and expand their consumer base Small
towns are emerging as significant hiring zones. FMCG companies are hiring field
staff from areas such as Kalpa (Himachal Pradesh), Mangaliya (Madhya Pradesh), K
ota (Rajasthan), and Shirdi (Maharashtra) to sell diverse products FMCG companie
s entering Africa as it helps to be close to consumption markets within Africa.
Such foreign investments are encouraged by local governments, as they offer ince
ntives to enter the markets
Rising importance of smaller-sized packs
Increased hiring from tier II/III cities
Focus on enhancing presence in Africa Reducing carbon footprint
FMCG players in India are focusing on reducing their carbon footprint. They gene
rate the required energy from renewable sources and earn CER credits for the sam
e
16

Growth Drivers
Large Market
Spending Pattern
FDI Support
Growth Drivers
Rise of rural consumers
Increasing per capita income of urban population
Growing popularity of organized retail
Changing Profile and Mind Set of Consumer
17

Opportunities in the Sector

Untapped Rural Market
The fragmented and untapped huge rural market, which houses 2/3rd of the total I
ndian population, is vital for the growth of FMCG sector as a whole
In order to
reduce the marketing costs and raise efficiency through van sales or by creating
rural supermarkets, the FMCG companies should join forces in targeting the frag
mented and broken rural market
Food-Processing Industry
Penetration level as well as per capita consumption in most product categories l
ike jams, toothpaste, skin care, hair wash etc in India is low, indicating the u
ntapped market potential
With 200 million people expected to shift to processed
and packaged food, India needs around US$ 30 billion of investment in the foodpr
ocessing industry
Lack of Infrastructure and storage facilities
Huge shortage of infrastructure facilities and storage facilities in rural areas
of the country, which makes its difficult for FMCG companies to market their pr
oducts
Huge investments in developing rural infrastructure and efficient utiliza
tion of resources like our coast line, solar energy and vast human resources is
imperative for FMCGs overall growth in India 18

Government Policies & Regulatory Framework

Investment Approval: Automatic investment approval up to 100 per cent foreign eq
uity for NRI and overseas corporate bodies. These investments are allowed in foo
d processing segments such as coffee and tea FDI in organized retail: India curr
ently allows 100 per cent FDI in Cash & Carry segment and 51% in single-brand re
tail, which is expected to be further increased to 100%. India is also expected
to allow 51% FDI in multi-brand retail, which will boost the nascent organized r
etail market in the country Priority Sector: The Government of India recognizes
food processing and agro industries as priority sectors Relaxation of license ru
les: Industrial licenses are not required for almost all food and agro-processin
g industries, barring certain items such as beer, potable alcohol and wines, can
e sugar, and hydrogenated animal fats and oils as well as items reserved for exc
lusive manufacturing in the small-scale sector Statutory Minimum Price: In Octob
er 2009, the government amended the Sugarcane Control Order, 1966, and replaced
the Statutory Minimum Price (SMP) of sugarcane with Fair and Remunerative Price
(FRP) and the StateAdvised Price (SAP)
19

Segment Overview
Market Segments
The food and beverages segment is the highest contributor to the FMCG sector
The FMCG market has three major segments
20

Segment Overview
Household Care
The detergents segment dominates the household care segment and has been growing
at an annual growth rate of 10-11% in the past five years Local and unorganized
players account for a major share of the total volume of the detergent market T
he Household care segment is plagued by intense competition and high level of pe
netration. With rapid urbanization, emergence of small pack sizes and sachets is
picking up
In the washing powder segment, HUL is the leader and other major players like Ni
rma, Henkel and Proctor & Gamble continue to provide stiff competition/innovatio
n
21

Segment Overview
Personal Care
The Personal care segment includes personal washing products, hair care products
, oral care products, cosmetics, skin care etc
The hair care market can be segmented into hair oils, shampoos, hair colorants &
conditioners, and hair gels. The coconut oil market accounts for 72% share in t
he hair oil market
The skin care market is at a primary stage in India. With the change in life sty
les, increase in disposable incomes, greater product choice and availability, pe
ople are becoming more alert about personal grooming The oral care market can be
segmented into toothpaste 60%; toothpowder 23%; toothbrushes 17%
The Indian personal care segment is set to change significantly in the coming ye
ars as consumption habits, fuelled by rising disposable income and changing life
styles, align themselves with global trends. E.g. bath soaps are likely to be re
placed by shower gel or liquid soap variants and there will be growing use of ha
ir conditioners and electronic tooth brushes
22

Segment Overview
Food and Beverages
The Food and Beverages segment comprises of the food processing industry, health
beverage industry, bread and biscuits, chocolates & confectionery, Mineral Wate
r and ice creams The three largest consumed categories of packaged foods are pac
ked tea, biscuits and soft drinks The Indian hot beverage market is dominated by
tea and the major share of the tea market is dominated by unorganized players I
ndia is one of the fastest growing branded restaurants markets in the world, whe
re the organized eating-out market is currently estimated at US$ 2 billion and g
rowing at a CAGR of 25% Sahara India reportedly plans to enter into dairy produc
tion business by opening the world s biggest dairy on April 1, 2013 and could be
a serious threat for Anand based Amul

23

Investments in the Sector

INVESTMENTS IN THE SECTOR
Recent M&A Deals
Recent Private Equity Deals
24

Recent M&A Deals

Announced Date
December 3, 2010
Target
Acquirer
Details
GCPL has acquired a 100% stake in NC and EC for an undisclosed amount in order t
o extend its leadership in the specialty liquid detergent category Marico bought
an 85% stake in the maker of Vietnam s top malegrooming brand X-Men in a deal e
stimated at US$55-60mn in order to strengthen the presence in the male grooming
space

Naturesse Consumer Care Products (NC) and Essence (GCPL) Consumer Care Products
Ltd (EC) International Consumer Products Corporation
February 19, 2011
March 3, 2011
Soft drink and fruit based beverages business along with the brand, Fruitnik f
rom Siva s Soft Drink Pvt Ltd

Amrutanjan With the deal size of US$ Health Care 5.70mn, AHCL diversified its Lt
d (AHCL) business into 2 beverages business
25

Recent M&A Deals

Announced Date
March 17, 2011
Target
Acquirer
Details
Jyothy Laboratories acquired a 14.9% stake in Henkel India for US$ 13.20mn in an
all-cash deal in order to strengthen its urban distribution network, as Henkel
has a strong presence in the modern retail formats
March 28, 2011
SweekarMarico Ltd s brand

With the deal size of US$ 13.04mn, for Marico, the move was in line with its dec
ision to focus on its flagship brand Saffola
Jyothy Laboratories Ltd Jyothy Laboratories increased its stake to 50.97% in Hen
kel India from Henkel AG & Co for US$ 25.80mn

Henkel India
26

May 6, 2011

Recent M&A Deals

Announced Date
June 1, 2011
Target
Acquirer
Details
Godrej Consumer Products Ltd acquired 51% stake in African hair care firm Darlin
g Group Holdings in order to scale up its operations in the region and to streng
then its position in the hair care market
Darling Group Godrej Holdings Consumer Products Ltd
June 6, 2011
VVF LtdAramusk and Moloy brands
Wipro Consumer With the undisclosed deal size, Care Wipros move was to strengthen
its position in the increasingly competitive soap market in the country
September 15, 2011
Blue park sea foods Pvt. Ltd
Omega Seeds Ltd
Ag- Omega Ag-Seeds (Punjab) Punjab acquired a 15% shareholding in Blue Park Sea
Foods for a total consideration of US$ 1.63mn
December 1, 2011
Agro Tech Foods Ltd
ConAgra Foods North American food Inc giant ConAgra Foods Inc acquired 3.66% sta
ke Agro Tech Foods US$ 11.27mn which increased its stake in the company to 51.77
%
27

Recent M&A Deals

Announced Date
December 21, 2011
Target
Amrit Banaspati Company Ltd edible oil business
Acquirer
Details
New York based food company Bunge Limited acquired the edible oils and fats busi
ness of Amrit Banaspati Company Limited for US$ 78mn
February 16, 2012
Paras Marico Ltd Pharmaceutical s- personal care business
Henkel India Ltd Jyothy Laboratories Ltd
Marico Limited is acquiring personal care business of Paras Pharmaceuticals from
Reckitt Benckiser for an undisclosed amount
Consumer goods company Jyothy Laboratories Ltd is merging Henkel India Ltd with
itself to consolidate its personal care products business under a single umbrell
a American Furniture company HNI Corp has acquired 95% stake in office furniture
company BP Egro for~ Rs.200 crores
June 15, 2012
August 13, 2012
BP Egro Ltd
HNI Corporation
28

Recent Private Equity Deals

Announced Date
February 1, 2011 March 28, 2011
Investee
Milk Mantra Dairy Pvt Ltd Hector Beverages Pvt Ltd Bush Foods Overseas Prakash S
nacks Capital Foods
Investor
Aavishkaar Venture Management services Pvt Ltd Catamaran Investment Pvt Ltd, Foo
tprint Ventures, and four angel investors Standard Chartered PE Sequoia Capital
Future Ventures India Ltd
% Stake
NA
Investment Value (US$ mn)
5
NA
1.30
April 6, 2011 June 27, 2011 August 12, 2011 August 19, 2011 October 18, 2011
NA NA 3%
25 30 NA
Manpasand SAIF Partners India Beverages Pvt Ltd VVF Ltd Reliance Equity Advisors
NA
10
NA
29.57
29

Recent Private Equity Deals

Announced Date
November 14, 2011 December 6, 2011
Investee
VKS Farms Pvt Ltd Sresta Natural Bioproducts Ltd Godrej Consumer Ltd Marico Ltd
Adiga sfast food chain

Investor
Ventureast Life Fund Peepul Capital
% Stake
NA
Investment Value (US$ mn)
5.43
NA
15
January 23, 2012 April 10, 2012 April 25, 2012
Temasek through Baytree Investments GIC and Baring Private Equity Partners India
New Silk Route Partners
4.9%
136.45
5%
100
NA IncuCapital Saif Partners
NA
May 24, 2012 July 13,2012
STEAMMO (F&B Chain)
Blue Star Ltd
NA NA
0.07 8.57
30

Major Players
MAJOR PLAYERS
Strong FMCG Brands
31

Common Stock Comparable Analysis

Strong FMCG Brands

32

Common Stock Comparison

(Rs. In Crs)
S no. 1 2 3 4 5 6 7 8 9 Company Name ITC (standalone) HUL (consolidated) Nestle
(Consolidated)* Dabur (consolidated) Godrej (consolidated) Colgate (Standalone)
Marico (consolidated) GSK Consumer* Britannia (Consolidated) Financials as on . 3
1-Mar-12 31-Mar-12 31-Dec-11 31-Mar-12 31-Mar-12 31-Mar-12 31-Mar-12 31-Dec-11 3
1-Mar-12 Share Price 226.85 409.90 4,602.85 106.40 479.65 1,116.00 174.50 2,541.
10 592.50 Shares Outstandi ng March 12 781.84 216.15 9.64 174.21 34.03 13.60 61.
49 4.21 11.95 Market Cap Net Debt 2012 EV

Rs. 177,360.96 88,600.40 44,378.71 18,535.95 16,322.37 15,176.80 10,730.61 10,68

6.73 7,077.46
(Rs. 2,739.84) Rs. 174,621.12 (1,978.13) 798.20 629.19 924.17 (309.80) 606.92 (1
,200.10) 119.57 86,622.27 45,176.91 19,165.14 17,246.54 14,867.00 11,337.53 9,48
6.63 7,197.03
Sales S no. 1 2 3 4 5 6 7 8 9 Company Name ITC (standalone) HUL (consolidated) N
estle (Consolidated)* Dabur (consolidated) Godrej (consolidated) Colgate (Standa
lone) Marico (consolidated) GSK Consumer* Britannia (Consolidated) 2012 Rs. 24,7
98.00 22,987.73 9,125.40 5,305.42 4,850.94 2,623.85 3,996.81 3,118.30 5,460.75 2
013E Rs. 29,183.40 25,826.40 11,124.70 5,960.30 5,646.10 3,051.30 4,850.99 3,643
.30 6,355.70 2012
EBITDA 2013E Rs. 10,621.80 3,500.40 2,311.20 1,044.90 1,010.70 691.30 642.76 580
.40 412.60
Net Income 2012 Rs. 6,162.37 2,790.66 1,187.10 644.11 726.72 446.47 317.11 413.2
0 199.55 2013E Rs. 7,277.70 3,025.20 1,429.10 759.40 662.00 514.50 432.01 498.50
264.60
Rs. 8,474.00 3,034.96 1,871.60 890.17 840.18 509.14 474.09 477.90 286.25
33
Source: As per research reports available from leading brokers like Goldman Sach
s, Citi Group etc.

Common Stock Comparison

(Rs. In Crs)
EV/Sales S no. 1 2 3 4 5 6 7 8 9 Company Name ITC (standalone) HUL (cons olidate
d) Nes tle (Cons olidated)* Dabur (cons olidated) Godrej (cons olidated) Colgate
(Standalone) Marico (cons olidated) GSK Cons um er* Britannia (Cons olidated) M
ean Median Maximum Minimum EBITDA PAT Margin Margin 34.17% 24.85% 13.20% 12.14%
20.51% 13.01% 16.78% 12.14% 17.32% 14.98% 19.40% 17.02% 11.86% 5.24% 7.93% 3.65%
15.33% 13.25% 17.09% 13.22% 2012 7.04x 3.77 4.95 3.61 3.56 5.67 2.84 3.04 1.32
3.98x 3.61x 7.04x 1.32x 2013E 5.98x 3.35 4.06 3.22 3.05 4.87 2.34 2.60 1.13 3.40
x 3.22x 5.98x 1.13x EV/EBITDA 2012 20.61x 28.54 24.14 21.53 20.53 29.20 23.91 19
.85 25.14 23.72x 23.91x 29.20x 19.85x 2013E 16.44x 24.75 19.55 18.34 17.06 21.51
17.64 16.34 17.44 18.79x 17.64x 24.75x 16.34x 2012 28.78x 31.75 37.38 28.78 22.
46 33.99 33.84 25.86 35.47 30.92x 31.75x 37.38x 22.46x P/E 2013E 24.37x 29.29 31
.05 24.41 24.66 29.50 24.84 21.44 26.75 26.26x 24.84x 31.05x 21.44x
34
Source: As per research reports available from leading brokers like Goldman Sach
s, Citi Group etc.

Profiles of the Major Players

PROFILES OF THE MAJOR PLAYERS
35

Indian Tobacco Company

Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1910 FMCG Cigarettes Chairman Exe
c. Director Exec. Director Board of Directors Yogesh Chander Deveshwar N Anand P
V Dhobale
Exec. Director Director
K N Grant A Baijal
Company Overview ITC is an outstanding market leader in its traditional business
es of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports It is the lead
ing cigarette manufacturer based out of Kolkata with a 67% share of the market b
y volume and 83% by value The company is rapidly gaining market share even in it
s nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Persona
l Care and Stationery ITC s Agri-Business is one of India s largest exporters of
agricultural products ITC is one of the eight Indian companies to figure in For
bes A-List for 2004, featuring 400 of "the world s best big companies". Forbes h
as also named ITC among Asia s Fab 50 and the World s Most Reputable Companies

36

Indian Tobacco Company

Product Portfolio
Products Snapshot
37

Indian Tobacco Company

Product Portfolio
Products Snapshot
38

Indian Tobacco Company

Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
39

Indian Tobacco Company

Financial Performance
Financial Summary
40

Hindustan Unilever
Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1933 Household Care Cosmetics, to
iletries, soaps & detergents Chairman MD & CEO Exec. Director Exec. Director Exe
c. Director Board of Directors Harish Manwani Nitin Paranjpe Sridhar Ramamurthy
Gopal Vittal Pradeep Banerjee
Company Overview HUL, a 51% subsidiary of Unilever Plc, is the largest Indian FM
CG company (excluding cigarettes) based out of Mumbai It has a portfolio of over
50 brands across categories such as soaps, detergents, foods, ice cream and wat
er purifiers The key strengths of the company are an extensive distribution netw
ork (its products are available in over 6mn outlets), powerful brands (most of i
ts brands are market leaders and straddle price segments), strong balance sheet,
and high-quality management
41

Hindustan Unilever
Product Portfolio
Company Snapshot
42

Hindustan Unilever
Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
43

Hindustan Unilever
Financial Performance
Financial Summary
44

Nestle India
Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1959 Food & Bevrages Dairy produc
ts Chairman & MD Director Director Board of Directors Antonio Helio Waszyk Shobi
nder Duggal Christian Schmid
Director Director
Pradeep Baijal Rakesh Mohan
Company Overview Nestle, a 62.8% subsidiary of its parent Nestl S.A. of Switzerla
nd, is Indias third largest consumer goods company after HUL and ITC Nestl India m
anufactures products of truly international quality under internationally famous
brand names such as NESCAF, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID an
d NESTEA Nestle enjoys leadership position in its core categories such as baby f
oods, instant noodles, and instant coffee It enjoys a distinct advantage over co
mpetitors in the F&B space on account of its strong focus on developing products
around the nutrition, health, and wellness platform, and a culture of renovatio
n and innovation in its offerings, backed by strong parent support
45

Nestle India
Product Portfolio
Company Snapshot Category Category
46

Nestle India
Financial performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Nestle India, a subsidiary of Nestle SA, the Swiss major in food and beverages,
plans to invest nearly Rs 5 billion in a Maggie noodles and confectionerymanufac
turing plant in Gujarat
Source: Annual Report * Financial Year Ends in December
47

Nestle India
Financial performance
Financial Summary
48

Dabur
Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1975 Personal Care Diversified Ch
airman Vice Chairman Exec. Director Board of Directors Anand Burman (Dr.) Amit B
urman Pradip Burman
Exec. Director Director
P D Narang Mohit Burman
Company Overview Dabur is one of Indias most trusted names and the worlds largest
Ayurvedic and Natural Health Care Company and is the second largest FMCG company
in India, in terms of Product portfolio Dabur has three divisions in India apar
t from its international operations : o First, The Consumer care division (CCD)
offers a wide range of products in hair care, oral care, health supplements, dig
estives and candies, and baby and skin care products, based on ayurveda o Second
, The consumer health division (CHD) includes overthecounter(OTC) products, Asavs,
and branded ethical, and classic products. The CHD division has been merged wit
h CCD to leverage the companies distribution networks o The third, Dabur Foods L
td produces fruit juices, cooking pastes, sauces, and items for institutional fo
od purchases
49

Dabur
Product Portfolio
Company Snapshot
50

Dabur
Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
51

Dabur
Financial Performance
Financial Summary
52

Godrej Consumer Products

Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 2000 Personal Care Diversified Ch
airman Director Director Board of Directors A B Godrej Jamshyd N Godrej Nadir B
Godrej
Company Overview
Additional Director Additional Director
Tanya Dubash (Ms.) Nisaba Godrej (Ms.)
Godrej Consumer is among the leading FMCG companies in India - second largest pl
ayer in soaps and largest in hair color Godrej Consumer brands, which include Go
od knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and
Snuggy, among others, are household names across the country Major brands includ
e Godrej Hair Dye (liquid and powder), Godrej Kesh Kala oil and Nupur hair dyes
in the lower end and Renew and Coloursoft in the higher segment and give stiff c
ompetition to foreign brands in the hair colour segment In June 2009, GCPL compl
eted the acquisition of 49% stake in Godrej Sara Lee Limited which had several l
eading brands such as Good Knight, JET, HIT, Brylcreem and KIWI The company empl
oys 950 people and has three state-of-the-art manufacturing facilities at Malanp
ur (M.P.), Guwahati (Assam) and Baddi (H.P.)
53

Godrej Consumer Products

Product Portfolio
Company Snapshot
Source: HSBC Global Research December 2011
54

Godrej Consumer Products

Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
55

Godrej Consumer Products

Financial Performance
Financial Summary
56

Colgate-Palmolive
Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1937 Household Care Preparations
for oral or dental hygiene Chairman Vice Chairman Deputy Chairman MD Director Bo
ard of Directors D Samuel R A Shah P K Ghosh M V Deoras P E Alton
Company Overview Colgate, 51% owned by Colgate USA, is the largest oral-care com
pany in India. Supported by a wide distribution network, it derives over 96% rev
enue from this category The company s 51% stake is owned by the foreign promoter
s (colgate-palmolive group), around 26% by individuals and around 21% by institu
tional investors. Colgate has also driven inorganic growth through acquisitions,
namely Hindustan CibaGeigy Ltd, CC Health Care Products Pvt Ltd, Professional O
ral Care Products Pvt. Ltd., Advanced Oral Care Products and SS Oral Hygiene Pro
d Colgate Palmolive is a market leader in the toothpaste segment with a market s
hare of ~50% in India, but is seeing increasing competition from domestic player
s

57

Colgate-Palmolive
Product Portfolio
Company Snapshot Product Categories
Oral Care
Toothpastes,
Toothbrushes, Further, it provides various dental care products for
Toothpowder,
Whitening products, gingivitis treatment, sensitivity treatment, t
ooth whitening, Kids products, fluoride therapy, mouth ulcer
And Mouthwashes. tre
atment, and specialty cleaning
Personal care
Body Wash
Liquid Hand Wash
Household Care
Dish washing pastes
58

Skin Care

Hair Care Products

Colgate-Palmolive
Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
59

Colgate-Palmolive
Financial Performance
Financial Summary
60

Marico
Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1988 Household Care Oils Chairman
& MD Director Director Board of Directors Harsh Charandas Mariwala Rajeev Baksh
i Atul Champaklal Choksey
Director Director
Nikhil Khatau Anand Kripalu
Company Overview Marico has evolved into one of the leading Indian FMCG companie
s from a coconut oil manufacturer over the past few years It has positioned itse
lf on the beauty and wellness platform and caters to the hair care, health care,
and skin care segments The company operates in India, the Middle East, SAARC co
untries, Egypt, Malaysia, South Africa, Singapore, and Vietnam and is headquarte
red in Mumbai, India Its manufacturing facilities are located at Goa, Kanjikode
(Kerala), Jalgaon (Maharashtra),Saswad(Maharashtra), Pondicherry, Dehradun (UP)
and Daman Marico is present in more than 25 countries across Asia and the Africa
n continent
61

Marico
Product Portfolio
Company Snapshot Category Range
62

Marico
Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
63

Marico
Financial Performance
Financial Summary
64

GSK Consumer Healthcare Ltd.

Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1958 Dairy products Malted milk f
oods Chairman MD Director Board of Directors S J Scarff Zubair Ahmed Kunal Kashy
ap
Director Director
Mukesh H Butani Naresh Dayal
Company Overview GSK Consumer Healthcare Ltd., an Indian group company of GSK pl
c UK (which holds 43% in GSK), is one of the largest players in the Indian malte
d food drinks (MFD) industry It is Indias leading health food drinks (HFD) manufa
cturer (69% market share in HFD) with growing presence in categories such as bis
cuits, noodles, snacks, sports drinks, glucose powder etc The company has manufa
cturing facilities in Nabha (Punjab), Rajamundry (Andhra Pradesh) and Sonepat (H
aryana) and has a strong marketing and distribution network in India with direct
coverage of over 700,000 retail outlets Headquartered in the UK, GSK has over 1
00,000 employees worldwide, including around 35,000 employees at 85 manufacturin
g sites in 37 countries
65

GSK Consumer Healthcare Ltd.

Product Portfolio
Company Snapshot
GSK is the undisputed dominant player in the fastgrowing underpenetrated domestic
malted health drink segment (~70% market share) with Horlicks, Boost, Maltova an
d Viva
66

GSK Consumer Healthcare Ltd.

Financial Performance
Financial Summary
Financial Highlights
(Rs. In Crs.)
Glaxo Smithkline Consumer Healthcare posted a net profit of Rs 1.31 billion for
the quarter ended March 31, 2012 as compared to Rs 1.10 billion in the same peri
od last year
Source: Annual Report * Financial Year Ends on December
67

GSK Consumer Healthcare Ltd.

Financial Performance
Financial Summary
68

Britannia
Company Profile
Company Snapshot
Incorporation Year Industry Group Main Product 1918 Household Care Bisciuts Chai
rman MD Director Board of Directors Nusli N Wadia Vinita Bali (Ms.) K K Dadiseth
Company Overview
Director Director
Avijit Deb Anil K Hirjee
Britannia Industries Limited is based in Kolkata and is famous for its Britannia
and Tiger brands of biscuits, which are popular throughout the country With an
estimated market share of ~38%, the company s principal activity is to manufactu
re and sell biscuits, bread, rusk, cakes and dairy products The Britannia brand
is the trust of almost one-third of India s one billion population CRISIL has as
signed a credit rating to Britannia Industries as AAA rating

The biscuit industry is the largest processed foods segment in India with size e
xceeding Rs.11,500crs, growing at 13-14% CAGR
Britannia has enhanced its premium cream portfolio with a launch of several diff
erentiated products including Bourbon Cappuccino, Pure Magic Praline and a new r
ange of creamy flavours for Treat
69

Britannia
Product Portfolio
Britannia Category Range
70

Britannia
Financial Performance
Britannia
Financial Highlights
(Rs. In Crs.)
Source: Annual Report * Debt includes Long term and short term borrowings
71

Britannia
Financial Performance
Britannia
72

Dinodia Capital Advisors

CORPORATE PROFILE
73

Dinodia Capital Advisors

Dinodia Capital Advisors
Corporate Profile
Dinodia Capital Advisors is a Financial Consulting firm based in New Delhi, Indi
a. It assists clients across all industries grow, both organically and inorganic
ally. The firm helps clients Raise Capital. Execute Mergers & Acquisitions oppor
tunities. Restructure, Transform and Turnaround businesses. Resolve challenging
problems. Take advantage of financial and strategic opportunities. Balance inves
tor expectations. DELIVER VALUE
74

Dinodia
Service
Dinodia
Mergers
We help
e buyer

Capital Advisors
Offerings
Capital Advisors Advice Clients on :
and Acquisitions
in conducting a robust scan of the market and selecting the most suitabl
or seller

Capital Raising
We advice clients on their capital needs and find them the right partner who bri
ngs more than just capital
Restructuring
We advise on business restructurings to help achieve financial, strategic and op
erational efficiency
India Entry Strategy
We help set up and incubate businesses in India, acting as a trusted advisors to
facilitate the India entry strategy
Organizational Transformation
We work with companies to put systems, processes and people in place to help tak
e advantage of both organic and inorganic synergies
Turnarounds
We work closely with companies to help devise and implement a turnaround strateg
y by plugging the deficiencies of management, technology, capital or partnership
s
75

Dinodia Capital Advisors Private Limited

Connaught Place , New-Delhi 110001, Website - www.dinodiacapital.com Tel No: +91
11 2341 7692, 2341 5272, Fax No: +91 11 4151 3666 Email: dinodiacapital@dinodia
capital.com
C-37,
We at Dinodia Capital Advisors believe in building long-term relationships based
on trust with our clients, providing the highest quality and timely advice, crea
ting an environment of teamwork, developing deep expertise in our areas of opera
tions, hand-holding clients from start to finish and caring deeply for every mat
ch that we make