PPT on Emami Fair and Handsome Report By: - RAHUL RAI

1. PRESENTED BY: - RAHUL RAI
MBA:- 2
ROLL NO.- MBA19K51

2. Fast-moving consumer goods
(FMCG) sector is the 4th largest
sector in the Indian economy with
Household and Personal Care
accounting for 50% of FMCG sales in
India.
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in
2017.
Revenues of FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to
reach US$ 103.7 billion in 2020.
FMCG Sector Overview

3. Company Overview
Emami Limited is one of the leading and fastest growing personal and healthcare
businesses in India, with an enviable portfolio of household brand names such as
BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Fast Relief and
Kesh King.
Established in 1974, Emami a portfolio of over 300 + products based on ayurvedic
formulations. Our current operations comprise more than 60+ countries including.
SAARC, MENAP, SEA, Africa, Eastern Europe and the CIS countries. Over 130 Emami
products are sold every second somewhere around the world.

4. STRENGHT WEAKNESSES
1. Low operational cost.
2. Presence of established distribution networks in
both urban and rural areas.
3. Presence of well-known brands in FMCG
sector.
4. Deep roots in local culture & great
understanding of consumer needs.
1. Lower scope of investing in technology and
achieving economies of scale, especially in small
sectors.
2. Low exports levels.
3. Counterfeit Products. These products narrow the
scope of FMCG products in rural and semi-urban
market.
OPPORTUNITIES THREATS
1. Untapped rural market.
2. Rising income levels, i.e. increase in purchasing
power of consumers.
3. Large domestic market- a population of over
one billion.
4. Export potential.
5. High consumer goods spending.
1. Removal of import restrictions resulting in
replacing of domestic brands.
2. Slowdown in rural demand.
3. Tax and regulatory structure
Sector’s SWOT Analysis

5. Product Overview

6. Industry
Competitors
Rivalry among
existing firms
Potential
Entrants
Threat of new
entrants
Buyers
Bargianing
Power of
Buyers
Substitute
Threat of
substitute
product or
services
Suppliers
Bargaining
power of
suppliers
Poters Five Analysis Bargaining Power of Buyer
• Strong bargaining power of buyers puts downward
pressure on pricing and induces Emami Limited the Fair
and Handsome Challenge to offer the high quality
product at discounted pricing.
• Strong bargaining power makes it easier for Emami
Limited the Fair and Handsome Challenge’ customers
to switch to other alternatives.
• There are three major reasons for strong buyer
bargaining power:
• High substitute availability.
• A wide number of alternatives.
• Low economic and psychological switching costs.
Bargaining Power Of Seller
• Weak bargaining power of supplier makes it
comparatively less important strategic issue for Emami
Limited the Fair and Handsome Challenge as suppliers
cannot dictate the prices and have to accept the Emami
Limited the Fair and Handsome Challenge’ terms and
conditions.
• Three factors result in moderate to weak supplier
power:
o A large number of suppliers
o High overall supply
o Suppliers’ weak control over their distribution network.

7. Competitive Rivalry
• Currently, the rivalry among
competitors is high, which makes it
difficult for Emami Limited the Fair
and HandsomeChallenge to
achieve its market growth
objectives.
• The product differentiation is low
and setting the differentiation basis
has become increasingly
challenging.
• Intense competitive rivalry is a
major reason for Emami Limited
the Fair and Handsome Challenge’
declining profitability.
Threat Of Substitute
• The technological advancement
has raised the threat of substitutes
for Emami Limited the Fair and
Handsome Challenge.
• Changing trends towards healthy
products also raises the
consequences of this threat for
Emami Limited the Fair and
Handsome Challenge.
• Overall, the threat of substitutes is
strong for the following reasons:
 High performance/cost ratio of
substitute products.
 High availability of substitute
products.
 Low switching cost.
Threat Of New Entrant
• Emami Limited the Fair and
Handsome Challenge faces
moderate new entrant threat,
which means new entrants do not
have a significant influence on
Emami Limited the Fair and
Handsome Challenge’ market
share.
• High level marketing know-how
with huge expenditure on
marketing activities is required to
enter the industry.
• Emami Limited the Fair and
Handsome Challenge faces a
moderate threat of new entrants
for the following reasons:
• High brand development cost
weakens the threat.
• Low switching cost increases the
threat.
• High capital cost weakens the
threat.

8. Strengths:
 Strong brand name.
 Leverage brand equity to enter new markets.
 Market leadership position.
 Favourable reputation at the global stage.
 Large customer base.
 Investment in R&D activities.
 Pro-innovative culture.
 Good financial health.
Weaknesses:
 Poor customer-oriented services.
 Decreasing per unit revenue.
 Retention issues due to high job stress.
 Lack of flexibility in the supply chain.
Opportunities:
 Growing customer base in the low-end market.
 Opportunities to collaborate with local players
to expand business operations.
 The increasing trend of consuming high-end
products.
 Strict government regulations are making it
difficult for new entrants to enter the market.
Threats:
 Growing criticism by environment protection
groups.
 The talent shortage in the market.
 Rural market stagnation and urban market
saturation.
 Growing health consciousness of customers.
Product’s SWOT Analysis

9. Product Life Cycle
Introduction Growth
 In 2005 Emami created a marketing
history in India by launching Fair and
Handsome, the first fairness cream for
men. In a tropically harsh country like
India, a fairness cream for men
represented an unexplored
opportunity. Emami created a
completely new market segment by
introducing India’s first fairness cream
customized for men.
 Fair and Handsome is a Rs 200 crore
brand now. Emami has 58% market
share followed by Lever (28%) and
Garnier (8%). since 2005 it has seen
enormous growth in the sales figures.
The sales have not been consistent due
to which it has not been able to see
itself at a maturity stage.

10. BCG Matrix
H
I
G
H
L
O
W
LOW HIGH
• NAVRATAN OIL
• FAIR AND HANDSOME
• EMAMI DIAMOND
SHINE(CRÈME HAIR
COLOUR)
• ZANDU BALM
• KESH KING
• BORO PLUS • 7 OILS IN ONE

11. Human Resource Development
The success of Emami Limited is a direct result of the commitment and talents of the members who work
with them. They are dedicated to finding, developing and retaining the best people for our company.
PRAGATI is the performance Management System of Emami Ltd.
PRAGATI aims to lay greater emphasis on performance, reviews and development of employees with an
overall objective of improving organizational performance through individual development. It’s a two-
way process which enables all the employees to PLAN, PERFORM, REVIEW AND DEVELOP.
PRAGATI as an HR intervention endeavors giving performance management system an extremely
meaningful dimension for every employee and there-by hastens PRAGATI – both for the organization
and the employee.

12. Market Share

13. No. of Months Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 25,305 26,929 6.4%
Other income Rs m 195 366 87.6%
Total Revenues Rs m 25,500 27,295 7.0%
Gross profit Rs m 7,182 7,233 0.7%
Depreciation Rs m 3,109 3,253 4.6%
Interest Rs m 343 214 -37.6%
Profit before tax Rs m 3,926 4,132 5.3%
Tax Rs m 863 1,009 17.0%
Profit after tax Rs m 3,063 3,025 -1.2%
Gross profit margin % 28.4 26.9
Effective tax rate % 22.0 24.4
Net profit margin % 12.0 11.1
EMAMI LTD Income Statement Analysis
 Operating income during the year rose 6.4% on a year-on-year (YoY) basis.
 The company's operating profit increased by 0.7% YoY during the fiscal. Operating profit
margins witnessed a fall and stood at 26.9% in FY19 as against 28.4% in FY18.
 Depreciation charges increased by 4.6% and finance costs decreased by 37.6% YoY, respectively.
 Other income grew by 87.6% YoY.
 Net profit for the year declined by 1.2% YoY.
 Net profit margins during the year declined from 12.0% in FY18 to 11.1% in FY19.
EMAMI LTD Income Statement 2018-19
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14. No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.0 1.2
Debtors’ Days Days 22 29
Interest coverage x 12.4 20.3
Debt to equity ratio x 0.0 0.0
Return on assets % 12.2 11.5
Return on equity % 15.2 14.6
Return on capital
employed
% 21.2 20.5
Financial Ratios

15. Company News
• Emami reports 16% rise in Q2 consolidated net profit.
• Emami soars on reporting 48% rise in Q1 consolidated net profit.
• Emami Group promoters divest 10% stake in Emami for Rs 1,230 crore.
• Emami’s arm to invest Rs 700 crore as capex for expansion of edible oil capacity.
• Emami aiming 15% revenue growth in haircare segment in FY20.
• Emami planning to pare Rs 2,600 crore debt at group level.