Company Profile Emami - Making people healthy and beautiful naturally

COMPANY PROFILE:

VISION: Making people healthy and beautiful, naturally

FOUNDERS: MR R S Agarwal & MR R S Goenka

CEO: N Venkat

• Mr N Venkat has joined Emami Ltd as Chief Executive Officer. Armed with an MBA from IIM  Ahmedabad
• Mr Venkat comes with an experience of more than 19 years in the FMCG sector and life science businesses.
• Mr Venkat brings to Emami a rare combination of competencies, like leadership and team building skills, along with strategic planning and new business development skills.

HISTORY

• 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.
• While Emami Limited is on lookout for acquisitions in India and abroad for inorganic growth in FMCG sector, it has also identified ‘Realty’ as another potential business opportunity.
•  A wholly owned subsidiary, Emami Realty Pvt. Limited, has been formed in May, 2007 to take up this business.
•  Apart from utilization of Emami’s war chest, it would also give Realty business an independent and separate focus since it would be a 100 per cent subsidiary of Emami Ltd. While aggressive growth in FMCG business would continue, Realty would further enhance profitability and shareholders’ wealth.

With in three decades, the company has grown into a huge Rs. 600 crore Emami Ltd under the flagship company of the Rs.1600 crore Emami Group.

Today, Emami Limited is lead by Mr. R S Agarwal and Mr. R S Goenka with the help of the second generation Promoter Directors from the two families

SALES AND DISTRIBUTION

Emami covers all the states with 28 depots across India and enjoys a wide distribution network comprising 2500+ distributors and a direct coverage of 4 lacs outlets. Apart from the distribution strength, Emami has 1200+ strong and motivated Sales Force including both direct & indirect manpower operating in the market. 

PRODUCTS:

Emami Limited is one of the major health and personal care FMCG companies in India with its brand presence globally.

NAVARATNA OIL
NAVARATNA LITE
NAVARATNA EXTRA THANDA
NAVARATNA COOL TALC
BOROPLUS ANTI SEPTIC CREAM
NAVARATNA PRICKLY  HEAT POWDER
FAIR & HANDSOME
HIMAMI FAST RELIEF
MENTO PLUS
Sona Chandi Chyawanprash
Sona Chandi Amrithprash
Malai Kesar Cold Cream
Hair life
Baby Massage Oil

NEW PRODUCTS: 

BUSINESS IDEA:

FOUNDERS: MR R S Agarwal & MR R S Goenka

Founders message

·         Our perception of health is changing dramatically. In the past, health was a state of ‘no-illness’; today it is defined holistically and is a function of lifestyle, diet, fitness, physical, emotional and even spiritual well-being.

·         The consumer is looking for a health and wellness quotient in each aspect of his/her life and this is a deciding factor influencing consumer choice: from the food they eat to, where they live to the products they use.

·         This preoccupation with wellness is especially witnessed within the personal care space, where health and beauty are now coming together. People are no longer satisfied with products that just make them look good or feel good, but also want them to ‘do-good’. Moreover, the do-good aspect is understood in terms of a health rather than a cosmetic benefit. Another trend signaling the merging of health and beauty is the emergence of herbal, natural and organic products within personal care, which are considered safe, sensitive to the skin and free of side-effects by consumers. 

Industry and the economy- 

In the Indian FMCG sector, rural India accounts for more than 40% of the country’s consumption. It is our understanding that as prosperity percolates across the lower levels of India’s income pyramid, the FMCG industry will outperform its earlier annual growth average. As the Indian economy is reporting highest ever growth, there are a number of pockets of optimism:

•	Urban demand: We feel that a 10% annual growth will continue to drive FMCG sector growth.
•	Rural demand: A huge proportion of India’s population lives in rural villages; the per capita consumption in these pockets is among the lowest. In our opinion, we have reached the tipping point and annual demand is now soaring.
•	Infrastructural development: We feel that planned infrastructure development – roads, ports, railways and airports – will accelerate FMCG growth.
•	Low manufacturing base:We foresee that India’s low-cost manufacturing base will enable it to address the growing FMCG demand in Bangladesh, Sri Lanka, Middle East, Pakistan and similar countries; besides, non-resident Indians in the UK and the USA represent a prospective market.
•	Brand consciousness: We perceive increasing brand consciousness as consumers gradually move away from loose and unbranded alternatives.
•	Favourable tax structure: We sense that the introduction of VAT will reduce longstanding tax ambiguities; Companies in tax exemption zones will benefit. The fringe benefit tax rationalization on brand ambassadors, celebrity endorsement as well as tours and travels will strengthen the FMCG sector.
•	Modern retail formats: We see modern retail stores accelerating FMCG off take and leading to a greater proportion of the growth of branded and value-added products.

Emami’s initiatives

We must inform our shareholders that Emami stands to capitalize on these industry opportunities through the following initiatives:

•	Aggressive marketing and distribution: Emami continues to market its products aggressively. While huge resources are spent on new launches, existing power brands are marketed through endorsements from celebrities like Amitabh Bachchan, Shah Rukh Khan, Chiranjeevi, Kareena Kapoor, Govinda and Dharmendra. Distribution is also being strengthened and new channels of sales are being established to take care of rural markets and emerging new retail stores.
•	New product launches: The Company continues to launch new products like Fair and Handsome fairness cream for men, Navratna cool talc, Boroplus light cream and lotion, Mr. and Mrs. Black kesh kala, Malai Kesar Cold Cream and Ayurvedic OTC products like Good Morning (an Ayurvedic laxative churna), Sardi Ja (a cough syrup and Vaporub) and Memo-plus (a memory booster).
•	Continuous innovation:Emami’s strong R&D and aggressive marketing capabilities enable it to identify emerging needs and aspirations of consumers and convert them into opportunities. Fairness cream for men, the first of its kind in India and the branding of Chyawanprash as ‘Sona Chandi’ Chyawanprash are results of such innovative R&D and marketing efforts.
•	Entry into new segments: Emami forayed into hair care and baby care segments through the introduction of products like Mr. and Mrs. Black kesh kala and hair dye powder, and Sona Chandi baby massage oil. It plans to come out with a full range of male grooming products as well as enter the baby range category.
•	Fresh capacity being commissioned: The Company is in the process of commissioning another state-of-the-art factory in north-east India, enjoying economic benefits.
•	Wider international footprint: The Company will widen the presence of its Fair and Handsome fairness brand in Asia and Africa; it will expand the global reach of its Naturally Fair brand in the Middle East and Asia. It has initiated efforts to globalize its power brands. Boroplus Antiseptic cream is the largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal. Fair and Handsome is also recently launched in GCC countries and is the number 1 selling whitening cream for men.
•	Emami Realty - another business opportunity: While Emami Limited is on the lookout for acquisitions in India and abroad for inorganic growth in the FMCG sector, it has identified realty as a potential business opportunity leveraging its resources. A wholly-owned subsidiary, Emami Realty Pvt. Limited, was formed in May 2007 to drive this business through an independent focus since it would be a 100% subsidiary of Emami Ltd. While aggressive growth in the FMCG business will continue, the realty segment will enhance profitability and shareholders wealth. We must conclude on a note of unmistakable optimism. As a result of increased capacity, upcoming launches, product extensions, wider geographic coverage and growing service station, we expect to accelerate our topline growth and strengthen our margins. In widening our revenue spread and climbing the value-chain, we expect to enhance value for our shareholders as well as other stakeholders in a more emphatic way over the foreseeable future.