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.



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)
Total income
Sales
Income from financial services

Mar-09

Mar-10

Mar-11

19
20.2
-12.6

12.1
11.9
27.5

11.6
11.8
9.7

Total expenses
Raw materials, stores & spares
Power, fuel & water charges
Compensation to employees
Indirect taxes
Selling & distribution expenses
Other operational exp. of industrial ent.
Other operational exp. of non-fin. services ent.
Interest paid
Depreciation

-8.1
-6.1
-11.8
-8.7

12.7
19.1

10
9.7

4.3
20.9
-2.9
100.6
15.5

2.2
10.4
14.3
19.9
10.5

20.7
16
-37.8
34.3
11.1
15.9

12.7
12.4
89.6
11.4
4.2
13.5

10
0.5
19.2
14.7
9
6.8

69

No of companies

28.5
27.7
24.8
23.4

0.4
17.7
72.1
9.7
11.4

Total assets
Net fixed assets
Investments
Current assets
Loans & advances
Gross fixed assets

15
15.8
21.5
-1.6
29.4
21.2
45.6
31.7
-4.6
12.7

20.7
16.3

Total liabilities
Net worth
Paid up equity capital (net of forfeited equity
cap.)
Reserves and funds
Borrowings
Fixed deposits
Current liabilities & provisions

11.2
5.5
0.8
17.8
-26.5
18.9
1,337.20
32.8
5.3
36.2

8.1
13
2.1
8.7

Profits
PBDITA (Operating profit)
PBDITA net of P&E
Profit after tax (PAT)
PAT net of P&E

21.5
26.5
30.4
23.5
5.8
22.5
-10.8
32.3
62
15.1

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

A V T Natural Products Ltd.
Absolute Aromatics Ltd.
Ador Multiproducts Ltd.
Ajanta India Ltd.
Ajay Home Products Ltd.
Allied Perfumers Pvt. Ltd.
Amar Remedies Ltd.
Associated Biscuit Co. Ltd.
Bajaj Corp Ltd.
Basil Chemicals & Additives Ltd.
C C Health Care Products Pvt. Ltd. [Merged]
Coimbatore Flavors & Fragrances Ltd.
Colgate-Palmolive (India) Ltd.
Dongguan Unza Consumer Products Ltd.
Emami Ltd.
Floral Aroma Ltd.
Galaxy Surfactants Ltd.
Henkel India Ltd.
Hindustan Polyamides & Fibres Ltd.
Hindustan Unilever Ltd.
Hipolin Ltd.

Mar11
1394
Mar10
Mar11
119.6
Mar10
484.5
Mar10
2.8
Mar10
2920.1
Jun11
5790.3
Mar10
90.9
Mar11
3769.8
Mar10
Mar10
366.7
Mar10
1.7
Mar11
24242
Mar10
985.2
Mar11 12779.3
Mar10
1.5
Mar11
9063.5
Dec10
4731.1
Mar10
2665.7
Mar11 211355.3
Mar11
321.3

expenses

1226.5

after
tax
(PAT)

worth

108.1

557.9

0

-278.7

117.7

2.2

48.7

484.7

-62.7

35

3.6

-0.8

26.4

4042.1

95.5

527.8

5469.6

380.5

2124.7

77.6

13.3

65.7

2945.9

841

3762.7

0.6

-0.6

51.7

306.5

60.6

56.6

3.1

-1.4

8.8

20516.8

4025.8

3840.5

978.4

6.8

136.7

11836

1254

6830.2

1.5

0

9

8766.6

615.2

2024.7

4701.1

11.3

1435.5

2521.1

200.5

1000.5

191246.4
319.8

23059.7 26332.5
-5.2

94

Indfrag Ltd.
J H S Svendgaard Dental Care Ltd.
J H S Svendgaard Hygiene Products Ltd.
J H S Svendgaard Laboratories Ltd.
Jyothy Laboratories Ltd.
Kamakhya Cosmetics & Pharmaceuticals Pvt.
Ltd.
Kancor Ingredients Ltd.
Karnataka Soaps & Detergents Ltd.
Kaya Ltd.
Kukar Sons (Indo-French) Exports Ltd.
Lakme Lever Pvt. Ltd.
Naturite Agro Products Ltd.
Nirma Ltd.
Novo Agritech Ltd.
Oriental Aromatics Ltd.
Paramount Minerals & Chemicals Ltd.
Parikh Herbals Ltd.
Pee Cee Cosma Sope Ltd.
Power Soaps Ltd.
Privi Organics Ltd.
Procter & Gamble Home Products Ltd.
Procter & Gamble Hygiene & Health Care
Ltd.
R K S Agrotech Ltd.
Reckitt Benckiser (India) Ltd.

Mar11
Mar11
Mar10
Mar11
Mar11
Dec10
Mar10
Mar11
Mar11
Mar10
Mar11
Mar10
Mar11
Mar10
Mar10
Mar10
Mar11
Mar11
Mar10
Mar11
Mar11
Jun11
Mar10
Dec-

383.5

371

49.2

303.5

2.9

3.5

-0.6

-2.2

12.7

12.4

0.3

110.8

873.4

830.5

60.1

761.8

6934.4

6082.4

802.7

6527.2

210.4

144.5

4.2

55.1

1996.3

1879.1

79.1

226.8

2004.6

1913.3

66.6

709.7

1103.6

1523.5

-412.6

-416.4

1.6

-1.6

12.2

308.8

464.9

-132

-28.1

2.2

6.3

-0.1

-8

35593.1

35185.5

48.9

14.5

32

42.9

671.1

616

65.8

1012.8

796.9

752

36.6

135.8

5.6

5.5

0.2

88.9

297.1

296.9

-1.1

110.5

2175.6

2107.9

106.3

352.5

3875.5

3625

231.3

1003.4

29331.6

33243.7

-3335.8

3186

11226.3

9724

1508.8

6006.2

0.1
22315

49.8
19431.7

-49.7
3385.7

54.5
1700.6

740.4 28319.7

Rhodia Specialty Chemicals India Ltd.
Sharp Menthol India Ltd.
Shingar Ltd.
Shree Cosmetics Ltd.
Shreeji Dye-Chem Ltd.
Sivalik Cellulose Ltd.
Sonal Cosmetics (Exports) Ltd.
Standard Surfactants Ltd.
Sunehari Exports Ltd.
Surya Vinayak Inds. Ltd.
Synthite Industries Ltd.
Tamilnadu Forest Plantation Corpn. Ltd.
Ultra International Ltd.
Unza International Ltd.
Unzafrica Ltd.
Utkal Soap Products Ltd.

10
Dec10
Mar10
Mar10
Mar11
Mar11
Mar10
Mar11
Mar11
Mar10
Mar10
Mar10
Mar10
Mar10
Mar10
Mar10
Mar10

1809.9

1905

-36.9

445.4

8652.5

8722.5

260

2389.9

437.3

441.2

5.3

156.4

16

35

-18.5

21.5

3

-3

28.2

5

-5

4.3

0.2

0.2

0

198.5

557.8

567.2

1

136.3

183.9

182.3

-6.6

292.5

43295.3

47761.3

1198.1

3825.6

4495.1

4198.4

367.3

4041.3

522.7

433.8

86.1

734.7

325.3

274.3

17.5

74.3

350.4

93

257.4

1237.2
4.5

3.4

1.4

2

5.3

Operating expenses and compensation to employees by different companies is shown
below.
Distribution of Costs (%)

A V T Natural Products Ltd.

Year

Mar-11

Operating
expenses

Compensation to
employees

88.63

11.3

Absolute Aromatics Ltd.
Ador Multiproducts Ltd.
Ajanta India Ltd.
Ajay Home Products Ltd.
Allied Perfumers Pvt. Ltd.
Amar Remedies Ltd.
Associated Biscuit Co. Ltd.
Bajaj Corp Ltd.
Basil Chemicals & Additives Ltd.
C C Health Care Products Pvt. Ltd. [Merged]
Coimbatore Flavors & Fragrances Ltd.
Dongguan Unza Consumer Products Ltd.
Emami Ltd.
Floral Aroma Ltd.
Galaxy Surfactants Ltd.
Henkel India Ltd.
Hindustan Polyamides & Fibres Ltd.
Hindustan Unilever Ltd.
Hipolin Ltd.
Indfrag Ltd.
J H S Svendgaard Dental Care Ltd.
J H S Svendgaard Hygiene Products Ltd.
J H S Svendgaard Laboratories Ltd.
Jyothy Laboratories Ltd.
Kamakhya Cosmetics & Pharmaceuticals Pvt.
Ltd.
Kancor Ingredients Ltd.
Karnataka Soaps & Detergents Ltd.
Kaya Ltd.
Kukar Sons (Indo-French) Exports Ltd.
Lakme Lever Pvt. Ltd.
Naturite Agro Products Ltd.
Nirma Ltd.
Novo Agritech Ltd.
Oriental Aromatics Ltd.
Paramount Minerals & Chemicals Ltd.
Parikh Herbals Ltd.
Pee Cee Cosma Sope Ltd.
Power Soaps Ltd.
Privi Organics Ltd.
Procter & Gamble Home Products Ltd.

Mar-10
Mar-11
Mar-10
Mar-10
Mar-10
Jun-11
Mar-10
Mar-11
Mar-10
Mar-10
Mar-10
Mar-11
Mar-10
Mar-11
Mar-10
Mar-11
Dec-10
Mar-10
Mar-11
Mar-11
Mar-11
Mar-11
Mar-10
Mar-11
Mar-11

0
97.79
82.67
8.33
97
91.36
74.61
85.79
100
84.7
74.19
92.66
97.82
85.29
53.33
93.53
95.06
87.49
95.68
97.81
92.94
102.86
60.48
84.85
95.42

0
8.86
13.95
0
0.21
2.61
26.08
6.43
50
8.67
17.39
10.16
11.88
6.54
12.5
4.37
3.79
4.33
5.26
5.15
9.31
55.56
24
5.01
12.69

Dec-10
Mar-10
Mar-11
Mar-11
Mar-10
Mar-11
Mar-10
Mar-11
Mar-10
Mar-10
Mar-10
Mar-11
Mar-11
Mar-10
Mar-11
Mar-11

85.12
90.76
97.49
81.69
0
94.77
76.19
88.54
278.62
94.61
91.82
98.18
97.64
95.78
89
97.24

5.04
6.22
19.56
19.68
0
29.71
20.83
4.27
21.78
3.07
1.97
11.11
5.17
1.93
4.19
4.64

Procter & Gamble Hygiene & Health Care Ltd.
R K S Agrotech Ltd.
Reckitt Benckiser (India) Ltd.
Rhodia Specialty Chemicals India Ltd.
Sharp Menthol India Ltd.
Shingar Ltd.
Shree Cosmetics Ltd.
Shreeji Dye-Chem Ltd.
Sivalik Cellulose Ltd.
Sonal Cosmetics (Exports) Ltd.
Standard Surfactants Ltd.
Sunehari Exports Ltd.
Surya Vinayak Inds. Ltd.
Synthite Industries Ltd.
Tamilnadu Forest Plantation Corpn. Ltd.
Ultra International Ltd.
Unza International Ltd.
Unzafrica Ltd.
Utkal Soap Products Ltd.

Jun-11
Mar-10
Dec-10
Dec-10
Mar-10
Mar-10
Mar-11
Mar-11
Mar-10
Mar-11
Mar-11
Mar-10
Mar-10
Mar-10
Mar-10
Mar-10
Mar-10
Mar-10
Mar-10

94.51
0.2
94.48
93.62
94.33
93.45
62.57
3.33
14
100
96.05
89.14
96.98
85.82
87.76
92.67
54.52
0
0

9.37
100
5.58
5.51
0.65
9.43
39.73
0
0
100
2.51
7.38
0.12
6.17
42.05
6.29
16.96
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

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.
Total income
Sales

Mar-08
Mar-09
Mar-10
Mar-11
12 mths 12 mths 12 mths
12 mths
6,049.80 7,591.90 10,488.90 12,779.30
5,830.20 7,407.90 10,081.50 12,223.60
198.3
145.7
357.5
418.9

Total expenses
Indirect taxes
Interest paid
Depreciation
Profits
PBDITA net of P&E
PAT net of P&E

5,117.10 6,929.00
1,033.50 1,466.00
12.9
34.2
301.8
447.2
413.8
470.3
1,452.40 1,556.40

54.4
72.8

315.7
178.9

547.1
1,174.90

154.9
1,160.30

1,176.50 1,418.30
1,169.40 1,390.00
927.5
778.7
920.4
750.4

2,757.80
2,732.00
633.1
607.3

2,966.70
2,873.60
1,254.00
1,160.90

Total liabilities
Net worth
cap.)
Reserves and funds
Borrowings
Fixed deposits

4,538.30
2,890.10

Total assets
Net fixed assets
Investments
Current assets
Loans & advances
Gross fixed assets
Growth (%)
Total income
Total expenses
PBDITA
PAT
Net worth
Total assets
Profitability ratios

9,830.80 11,836.00
1,457.80
3,491.30
55.3
60.9
609.2
659.9
682.2
832.8
2,061.80
2,460.60

9,070.00 11,048.50 11,753.10
2,991.80 6,193.80
6,830.20

124.3
124.3
2,765.80 2,860.50
352 4,400.90

151.3
6,042.50
2,532.50

151.3
6,678.90
2,238.70

1,241.50

1,587.10

2,189.00

2,496.30

4,538.30
778.2
1,029.60
1,566.20
996.2
1,057.10

9,070.00 11,048.50 11,753.10
6,125.90 5,608.50
4,824.60
398.9
620.8
70.8
2,096.90 4,060.00
5,587.60
50.6
633.4 1,154.40
7,064.50 7,634.80
7,969.70

12.7
8.8
41.9
40.7
26
35.8

25.5
35.4
20.6
-16
3.5
99.9

38.2
41.9
94.4
-18.7
107
21.8

21.8
20.4
7.6
98.1
10.3
6.4

PBDITA net of P&E as % of Total inc net of P&E
PAT net of P&E as % of Total income net of P&E
PAT net of P&E as % of Avg. net worth
PAT as % of Avg. net worth
PAT net of P&E as % of Avg. total assets
PAT as % of Avg. total assets

19.4
15.3
35.5
35.8
23.4
23.5

18.4
9.9
25.5
26.5
11
11.4

26.1
5.8
13.2
13.8
6
6.3

22.7
9.2
17.8
19.3
10.2
11

Liquidity ratios (times)
Quick ratio
Current ratio
Debt to equity ratio
Interest cover
Debtors (days)
Creditors (days)

0.9
2
0.1
20.2
25.3
38.8

0.6
1.1
1.5
3.8
21.2
63.1

1.1
1.6
0.4
2.8
22.5
43.8

1.2
1.5
0.3
11.1
24.6
31.2

Average cost of Funds

18.8

13.3

15.8

6.5

1.5
20

1.1
17

1
17.2

1.1
19.4

Efficiency ratios (times)
Total income / Avg. total assets
Total income / Compensation to employees

Distribution of costs
Emami Ltd.
Distribution of total expenses
Operating expenses
Financial charges
Provisions
Non-cash charges
Prior period and extra-ordinary expenses
Provision for direct tax
Distribution of operating expenses
Raw material expenses
Stores, spares, tools consumed
Purchase of finished goods
Packaging and packing expenses

Mar-08 Mar-09 Mar-10 Mar-11
12 mths 12 mths 12 mths 12 mths
100
95
1.1
0
1.4
0.2
2.4

100
89.1
6.2
0
2.6
0.1
2.1

100
78.3
5.6
0
12.5
0.1
3.6

100
85.3
1.3
0
9.8
0.2
3.4

100
21.3
21.2
0.1
22
5.6

100
23.8
23.6
0.1
20.6
7.7

100
18.9
18.8
0.2
16.8
13.7

100
34.6
34.4
0.2
19.3
0

Indirect taxes
Excise duty
Royalties, technical know-how fees, etc.
Rent & lease rent
Repairs & maintenance
Insurance premium paid
Outsourced manufacturing jobs
Outsourced professional jobs
Non-executive directors' fees
Advertising expenses
Marketing expenses
Distribution expenses
Travel expenses
Communications expenses
Printing & stationery expenses
Miscellaneous expenditure

0.3
6.2
8.5
1.9
0
0.3
0.8
0.2
0
0.9
0.2
21.2
5.7
3.1
1.4
0
0
2.5
0
0

0.6
7.2
7.6
2.8
0
0.3
1
0.2
0
2
0.2
20.8
1.4
3
1.4
0
0
2.3
0
0

0.7
7.9
8.9
2.1
0
0.3
1.2
0.2
0
1.2
0.3
22.2
1.5
3
1.3
0
0
1.7
0
0

0.6
6.5
8.3
1.9
0
0.3
1
0.2
0
1.5
0.3
20.1
0.7
3.6
1.3
0
0
1.7
0
0

Source of growth in profits
Sources of Growth in Profits
Emami Ltd.
Levels in each year
Sales
PBDIT
Profitability (times)
Change in each year
Change in PBDIT
Change in sales
Incremental profitability (Change in PBDIT /
change in income) (times)
Causes of change in PBDIT
Change in sales
Change in profitability
Change in profitability on change in income
Causes of change in PBDIT (% share)

Mar-08
Mar-09
Mar-10
Mar-11
12 mths

5,830.20 7,407.90 10,081.50 12,223.60
965.4 1,239.90
2,356.80 2,439.80
0.2
0.2
0.2
0.2
302.2
274.5
629.5 1,577.70

1,116.90
2,673.60

83
2,142.10

0.5

0.2

0.4

0

80.3
198
24

261.2
10.4
2.8

447.5
491.9
177.5

500.8
-344.6
-73.2

Change in sales
Levels in each year
Total income
PAT net of P&E
Change in each year
Change in PAT net of P&E
Change in total income
Causes of change in PAT net of P&E
Change in total income with no chg. in
profitability
Change in profitability with no chg. in income
Causes of change in PAT net of P&E (% share)
profitability

26.6
65.5
18

95.2
3.8
4

40.1
44
18.4

603.3
-415.1
25.1

6,034.20 7,558.00 10,456.70 12,657.40
920.4
750.4
607.3 1,160.90
0.2
0.1
0.1
0.1
257.7
-170
664.2 1,523.80

-143.1
2,898.70

553.6
2,200.70

0.4

-0.1

0

0.3

82
156.4
19.3

232.4
-321.3
-81.1

287.8
-311.4
-119.4

127.8
351.8
74

31.8
60.7
7.5

-136.7
189
47.7

-201.1
217.6
83.5

23.1
63.5
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
Hindustan Unilever
Dabur India
Godrej Consumer

Sales
(Rs.Million)

Current
Change (%)
Price

P/E Ratio

Market
Cap.(Rs.Million)

52-Week
High/Low

194011.10

405.10

-1.17

33.57

886003.97

420/266

32643.70

106.50

0.09

36.73

185359.53

122/92

23951.63

494.00

2.99

29.33

163223.68

494/363

22205.58

1145.55

2.65

35.31

151767.98

1130/818

Prod
Colgate Palmol. (I)

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

585.42

136.35

0.00

16.15

3336.88

137/135

4501.72

24.25

0.21

8.74

2818.19

44/20

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

430.73

15.17

0.00

4.65

73.65

27/10

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

34.30

2.67

0.00

55.13

12.13

3/3

Rayban
Henkel India
Parikh Herbals

Paramount
Cosmetics
Guj. Meditech

Ideal Optics

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
Total income
Sales
Total expenses
Indirect taxes
Interest paid
Depreciation
Profits
PBDITA net of P&E
PAT net of P&E
Total liabilities
Net worth
cap.)
Reserves and funds
Borrowings
Fixed deposits

Mar-07
Mar-08
Mar-09
Mar-10
12 mths
12 mths
12 mths
12 mths
14,523.80 16,380.00 18,659.20 21,237.10
14,212.50 15,973.00 18,106.60 20,794.80
187.8
214.5
357.3
281.2
12,967.30 14,070.40 15,767.40 17,143.30
1,446.90
1,722.50 4,005.80
6,374.80
76.3
77.4
111
140.3
1,699.30
1,182.80 1,434.00
1,596.80
1,010.50
908.2
705.2
746.6
2,364.60
2,918.70 3,159.50
3,497.60

9.8
152.6

14.4
198.5

11
225.8

15
375.7

2,178.50
2,093.80
1,601.70
1,517.00

3,133.40
2,978.80
2,317.10
2,162.50

3,689.90
3,532.70
2,902.20
2,745.00

5,238.70
5,124.30
4,232.60
4,118.20

7,196.90
2,805.30

7,164.40
1,622.10

7,897.20
2,163.00

9,014.60
3,261.10

1,359.90
1,445.40
42.8

136
1,486.10
46.9

136
2,027.00
46.9

136
3,125.10
45.9

4,206.50

5,342.00

5,513.40

5,520.80

Total assets
Net fixed assets
Investments
Current assets
Loans & advances
Gross fixed assets

7,196.90
1,676.90
1,333.40
2,391.20
1,153.00
4,114.70

7,164.40
1,905.60
725.9
2,543.60
1,481.80
4,464.90

7,897.20
1,739.30
383.3
3,669.30
1,707.80
4,252.60

9,014.60
2,469.40
210
5,056.00
851.5
5,345.30

Growth (%)
Total income
Total expenses
PBDITA
PAT
Net worth
Total assets

14.9
15.9
4.7
16.4
3.5
13

12.8
8.5
43.8
44.7
-42.2
-0.5

13.9
12.1
17.8
25.3
33.3
10.2

13.8
8.7
42
45.8
50.8
14.1


14.5
10.5
55
58.1
22.4
23.6

18.4
13.3
97.7
104.7
30.1
32.3

19.1
14.8
145
153.3
36.5
38.5

24.3
19.5
151.8
156.1
48.7
50.1

Quick ratio
Current ratio
Interest cover
Debtors (days)
Creditors (days)

0.3
0.6
0
198.1
2
90.1

0.3
0.5
0
193.1
2.1
94

0.5
0.7
0
300.6
2
95.1

0.7
0.9
0
316.6
1.8
94.8


22.7

32.1

23.5

32.3

2.1
8.5

2.3
13.8

2.5
13

2.5
13.3


Emami Ltd.
Operating expenses
Financial charges
Provisions
Non-cash charges
Indirect taxes
Excise duty
Rent & lease rent
Marketing expenses
Travel expenses

Mar-08 Mar-09 Mar-10 Mar-11
100
94.1
0.2
0
1.4
0
4.3

100
94.5
0.6
0
1.3
0
3.5

100
94.3
0.1
0
2
0
3.6

100
92.7
0.2
0
1.5
0
5.7

100
13
12.7
0.3
26.8
8.5
0.6
8.9
6.9
5.9
3.2
0.9
0.9
0.1
0.1
1.9
0
19.4
0
2.7
1.7
0
0
4.6
0

100
26.9
26.5
0.3
23.5
0
0.7
9.6
4.7
4
4
0.9
0.7
0.1
0.1
2
0
18.2
0
3
1.3
0
0
4.3
0

100
39.5
39
0.5
9.8
0
0.9
9.9
4.6
4
5.4
0.8
0.7
0.1
0.2
1.9
0
18.5
0
3.1
1.3
0
0
3.3
0

100
39.4
38.9
0.5
8.5
0
0.8
10.2
5.8
5.1
5.9
0.7
0.5
0.1
0.2
1.6
0
18.4
0
3.8
1.3
0
0
2.9
0

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]
Total income
Sales
Total expenses
Indirect taxes
Interest paid
Depreciation

Mar-95 Mar-96 Mar-97
Dec-97
119.2
102.5
11.2

121.2
50.4
13.8

103.1
84.3
14.6

101.3
81.3
16.6

126.7
59.1
1.6
13.4
1.2
20.2

92.4
2.8
1.3
13.8
4.7
13.7

82.2
5.5
1.5
9.9
4.6
0.2

82.3
6.3
1.3
7.1
2.2
0.1

1.8
3.9

2.5
3.3

2
2.9

1.9
2

Profits
PBDITA net of P&E
PAT net of P&E

18.6
18.3
8.8
8.5

39.9
-15
18.6
-36.3

35.3
34.4
18.9
18

36.2
36
21.3
21.1

Total liabilities
Net worth
cap.)
Reserves and funds
Borrowings
Fixed deposits

221.6
170.5

208.2
174.1

229.4
178

244.1
199.3

15
155.5
21.4

15
159.1

15
163
40

15
184.3

29.7

34.1

11.4

44.8

Total assets
Net fixed assets
Investments
Current assets
Loans & advances
Gross fixed assets

221.6
31.9
102.5
75.5
10.6
50.8

208.2
28.9
102.5
64.6
12.2
49.1

229.4
27.9
102.5
45.8
52.9
50.9

244.1
26.8
102.5
64.8
50
51.8

Growth (%)
Total income
Total expenses
PBDITA
PAT
Net worth
Total assets

-3.1
12.8
-10.1
-10.2
1.7
9

1.7
-27.1
114.5
111.4
2.1
-6

-14.9
-11
-11.5
1.6
2.2
10.2

43.3
47
51.8
72.1
16.3
8.6

Operating expenses
Financial charges
Provisions
Non-cash charges

Dec-97
100
91.9
1.8
0
3.1

100
74.6
3.2
1.6
3.6

100
79.7
2.6
0
3.5

100
81.9
2.3
0
2.4

Indirect taxes
Excise duty
Rent & lease rent
Marketing expenses
Travel expenses

0
3.2

0.2
16.8

0.2
14

0
13.4

100
50.8
50.7
0.1
1.9
0
1.4
11.5
1
0.9
0
3
1.9
1
0
0
0
5.4
7
4.9
0
0
0
10.1
0
0

100
4.1
3.9
0.1
7.4
17
1.9
20
6.8
5.1
0
4.2
1.7
1.3
0
0
0
11.3
5.2
3.3
0
0
0
15.7
0
0

100
8.4
8.2
0.2
0
47.3
2.3
15.1
7
6.4
0
0.6
2.6
0.8
0
0
0
0.2
0
0.2
0
0
0
15.6
0
0

100
9.3
9.2
0.1
0
59.3
1.9
10.5
3.3
3.3
0
0.3
1
0.6
0
0
0
0
0
0.1
0
0
0
13.5
0
0

Levels in each year
Sales
PBDIT
Change in each year

Dec-97

102.5
1.9
0

50.4
-30.7
-0.6

84.3
16.7
0.2

81.3
16.2
0.2

Change in PBDIT
Change in sales
Change in sales
Change in sales
Levels in each year
Total income
PAT net of P&E
Change in each year
profitability
profitability

-1.5
-3.2

-32.6
-52.1

47.4
33.9

-0.5
-3

0.5

0.6

1.4

0.2

-0.1
-1.4
0

-1
-64.3
32.7

-20.6
40.7
27.4

-0.6
0.1
0

6.9
96
-0.2

3
197.3
-66.7

-43.6
85.8
86.3

118.9
-19.6
0

118.9
8.5
0.1

66.1
-36.3
-0.5

102
18
0.2

101.1
21.1
0.2

-1
-3.8

-44.8
-52.8

54.3
35.9

3.1
-0.9

0.3

0.8

1.5

-3.4

-0.3
-0.7
0

-3.8
-73.8
32.8

-19.7
48
26.1

-0.2
3.3
0

29.4
72.8
-2.3

8.4
164.7
-73.1

-36.3
88.3
48

-5.1
106.1
-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

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]
Total income
Sales
Total expenses
Indirect taxes
Interest paid
Depreciation
Profits

Dec-94
Dec-95
Dec-96
Dec-97
2,614.50 3,221.10 3,999.70 4,753.80
2,577.40 3,171.30 3,952.20 4,696.90
30.7
38.7
31.3
49.1
2,350.40 2,846.30 3,651.20 4,164.90
840.4 1,108.10 1,454.90 1,946.20
37.7
43.2
46.8
45.8
124.5
148.5
173.3
210.6
39.3
29
28.7
30.8
287.9
366
505.8
671.7

25.4
21.1

14.5
26

15.7
33.8

3.7
40.2

482.5

582

688.1

834.3

PBDITA net of P&E
PAT net of P&E

490.1
300.5
308.1

578.7
377.9
374.6

690.9
459.6
462.4

852.8
611.2
629.7

Total liabilities
Net worth
cap.)
Reserves and funds
Borrowings
Fixed deposits

1,435.50 1,728.30
837.5 1,008.20

Total assets
Net fixed assets
Investments
Current assets
Loans & advances
Gross fixed assets

1,435.50 1,728.30 2,114.50 2,996.50
314.4
404.6
484.3
540.3
146
128
149.1
194.8
853.2
966.3 1,384.00 2,145.10
71.9
178.7
23.7
49.9
427
541.8
652.5
744.8

Growth (%)
Total income
Total expenses
PBDITA
PAT
Net worth
Total assets

140
707.3
47.6
43.7
540.6

18.7
15
25.2
33.7
21.4
12.3

2,114.50 2,996.50
1,176.80 1,987.10

140
140
298.6
875.4 1,041.40 1,690.60
46.9
1.8
1.5
25.2
666
931.3 1,005.80

23.2
21.1
20.6
25.8
20.4
20.4

24.2
28.3
18.2
21.6
16.7
22.3

18.9
14.1
21.2
33
68.9
41.7

Operating expenses
Financial charges
Provisions
Non-cash charges

Dec-94
Dec-95
Dec-96
Dec-97
100
91.2
1.8
0.1
1
0.3
5.6

100
92.2
0.9
0.1
1
0
5.7

100
92.5
1.4
0
1
0.3
4.8

100
93.4
0.8
0.1
1
0.4
4.2

Indirect taxes
Excise duty
Rent & lease rent
Marketing expenses
Travel expenses

100
39.2
39
0.2
30.3
0
1.8
5.8
1.8
0
0
0.5
1.1
0.3
0
0
0
5.2
8.2
0
0
0
0
5.8
0
0

100
42.2
42
0.2
28.9
0
1.6
5.7
1.1
0
0
0.5
1
0.3
0
0
0
6.4
7.5
0
0
0
0
4.7
0
0

100
43.1
42.9
0.2
28.4
0
1.4
5.1
0.8
0
0
0.3
1
0.3
0
0
0
9.6
5.4
0
0
0
0
4.6
0
0

100
50
49.9
0.2
19.6
0
1.2
5.4
0.8
0
0
0.4
0.9
0.3
0
0
0
12.1
5.2
0
0
0
0
4
0
0

Levels in each year
Sales
PBDIT
Change in each year
Change in PBDIT
Change in sales

Dec-94
Dec-95
Dec-96
Dec-97

2,577.40 3,171.30 3,952.20 4,696.90
453
533.4
650.5
795.9
0.2
0.2
0.2
0.2
109.6
417.7

80.4
593.9

117.1
780.9

145.4
744.7

Change in sales
Change in sales
Levels in each year
Total income
PAT net of P&E
Change in each year
Change in total income with no chg. in profitability

0.3

0.1

0.1

0.2

66.4
36.2
7

104.4
-19.5
-4.5

131.3
-11.4
-2.8

122.6
19.2
3.6

60.6
33
8.5

129.8
-24.2
-10.4

112.2
-9.8
-3.9

84.3
13.2
3.4

2,614.50 3,216.60 3,992.60 4,753.80
308.1
374.6
462.4
629.7
0.1
0.1
0.1
0.1
97.9
427.3

66.5
602.1

87.8
776

167.3
761.2

0.2

0.1

0.1

0.2

41.1
47.5
9.3

71
-3.6
-0.8

90.4
-2.1
-0.5

88.2
66.5
12.7

41.9
48.6
9.5

106.7
-5.4
-1.3

102.9
-2.4
-0.6

52.7
39.7
7.6

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
Total income
Sales
Total expenses
Indirect taxes
Interest paid
Depreciation
Profits
PBDITA net of P&E
PAT net of P&E

Jun-08
Jun-09
Jun-10
Jun-11
12 mths
6,944.60 8,518.30
6,555.70 7,756.70
131.1
236.4

9,857.40 11,226.30
9,171.20 10,401.80
169.5
330.1

5,762.30 6,770.80
1,353.90 1,759.60
82.6
78.4
542
619.7
232.4
153.4
1,287.20 1,771.80

8,055.00
1,838.30
61.9
747.1
185
2,179.30

9,724.00
2,143.80
61.3
860.7
437.3
2,456.10
122.5
0.3
221.6

1,989.40
2,008.60
1,508.80
1,528.00

66.8
0.3
121.2

88.4
143.7

101
0.3
193.9

1,927.20
1,931.50
1,314.20
1,318.50

2,460.30
2,361.90
1,788.50
1,690.10

2,530.40
2,497.20
1,797.70
1,764.50

Total liabilities
Net worth
Paid up equity capital (net of forfeited equity cap.)
Reserves and funds
Borrowings
Fixed deposits

7,356.80 8,741.50 11,078.40 11,944.10
3,466.40 4,400.30
5,346.30 6,006.20
324.6
324.6
324.6
324.6
3,141.80 4,075.70
5,021.70 5,681.60

Total assets
Net fixed assets
Investments

7,356.80 8,741.50 11,078.40 11,944.10
1,230.80 1,322.80
1,303.80 1,903.90

3,773.10 4,223.50

5,631.60

5,830.60

Current assets
Loans & advances
Gross fixed assets

2,806.90 2,133.40
3,116.40 4,976.60
2,030.90 2,218.20

3,854.60
5,177.50
2,429.60

3,183.40
6,701.20
3,129.00

Growth (%)
Total income
Total expenses
PBDITA
PAT
Net worth
Total assets

15
11.7
34
46.3
19
25

22.7
17.5
27.7
36.1
26.9
18.8

15.7
19
2.8
0.5
21.5
26.7

13.9
20.7
-21.4
-16.1
12.3
7.8


27.8
19
41.3
41.2
19.9
19.8

28.1
20.1
43
45.5
21
22.2

25.6
18.1
36.2
36.9
17.8
18.1

17.9
13.6
26.9
26.6
13.3
13.1

0.6
0.7
0
6,034.30
7.8
92.2

0.3
0.5
0

0.6
0.7
0
7,677.70
10.2
99.8

0.4
0.5
0
5,956.70
10.7
72.1

1
13.2

1
13

Quick ratio
Current ratio
Interest cover
Debtors (days)
Creditors (days)

8.4
68.8
0

1
12.8

1.1
13.7


Jun-08
Jun-09
Jun-10
Jun-11
100

100

100

100

Operating expenses
Financial charges
Provisions
Non-cash charges
Indirect taxes
Excise duty
Rent & lease rent
Marketing expenses
Travel expenses

88.9
0.4
0
2.1
0.2
8.5

89.5
0.3
0
2.1
0.3
7.8

89.7
0.2
0
2.7
0.8
6.7

94.5
0
0.1
2.5
0.2
2.7

100
26.4
25.7
0.7
0.1
10.7
1.6
10.6
4.5
1.7
6.7
0.4
0.8
0.1
4
2.6
0.1
13.4
5.6
6.1
1.5
0.5
0
2.9
0
1.3

100
29
28.5
0.5
0.1
10.4
1.3
10.2
2.5
0
6.9
0.2
0.6
0.1
2.3
1.5
0.1
14.8
7.4
7
1.1
0.5
0
2.4
0
1.5

100
25.5
25
0.5
5.7
8
0.9
10.3
2.6
1.8
8.1
0.3
0.7
0
1.4
1.7
0
15.6
8.7
5.8
1.2
0.5
0
1.7
0
1.4

100
23.3
22.8
0.5
9.9
9.8
0.7
9.4
4.8
3.8
5.6
0.2
0.5
0
2.5
1.8
0
12.8
9.5
4.5
1.1
0.5
0
1.9
0
1.3

Sources of growth in profits
Levels in each year

Jun-08
Jun-09
Jun-10
Jun-11

Sales
PBDIT
Change in each year
Change in PBDIT
Change in sales
Change in sales
Change in sales
Levels in each year
Total income
PAT net of P&E
Change in each year

6,555.70 7,756.70 9,171.20 10,401.80
1,547.40 1,718.30 1,906.60 1,184.10
0.2
0.2
0.2
0.1
481.9
170.9
188.3
995.5 1,201.00 1,414.50

-722.5
1,230.60

0.5

0.1

0.1

-0.6

190.8
246.9
44.2

283.5
-95.2
-17.4

313.3
-105.8
-19.3

255.8
-862.6
-115.7

39.6
51.2
2,763.10

165.9
-55.7
8.2

166.4
-56.2
4.2

-35.4
119.4
8.8

6,939.80 8,400.30 9,761.80 11,226.30
1,318.50 1,690.10 1,764.50 1,528.00
0.2
0.2
0.2
0.1
312.2
371.6
74.4
899.3 1,460.50 1,361.50

-236.5
1,464.50

0.3

0.3

0.1

-0.2

149.8
141.3
21

277.5
77.8
16.4

273.9
-171.7
-27.8

264.7
-435.8
-65.4

48
45.3
6.7

74.7
20.9
4.4

368.2
-230.8
-37.4

-111.9
184.3
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.

According to analysis and figures given by the Confederation of Indian
Industries (CII), the total Indian beauty and cosmetic market size
Market Capitalization
currently stands at US$950 million and showing growth between 1520% 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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