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Tag: Emami

  • FY-2015: Emami marketing spends up 41%, PAT up 21%

    FY-2015: Emami marketing spends up 41%, PAT up 21%

    BENGALURU: Emami Limited spent 41.3 per cent more towards its Advertisement and Sales Promotion (ASP) in FY-2015 (year ended 31 March, 2015, current year) at Rs 391.19 crore (17.7 per cent of Total Income from Operations or TIO) as compared to the Rs 277.41 crore (1.5 per cent of TIO) in the previous year.

    The company’s profit after tax (PAT) increased 20.6 per cent in the current year to Rs 485.45 crore (21.9 per cent of TIO) from Rs 402.27 crore (22.1 per cent of TIO) in FY-2014. Emami’s TIO in FY-2015 at Rs 2217.25 crore increased 2.18 per cent from the previous year’s TIO of Rs 1820.77 crore.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Among the brands in Emami’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.

    Historically, Q3 (the festival season in India) of a financial year has been the best quarter for Emami in terms of TIO and PAT, which peak in Q3. The next best quarter has been the fourth quarter of a financial year before sales and profits dip to the lowest in a year in Q1 (the summer and the beginning of the educational holiday season in India) followed by a rise in Q2.

    Refer to Fig A below for ASP during the 16 quarter period starting Q1-2012 until the current quarter.ASP in Q4-2015 was 66.5 per cent more at Rs 82.47 crore (14.9 per cent of TIO) as compared to the Rs 49.53 crore (11.1 per cent of TIO) spent in the corresponding year ago quarter but 30.8 per cent lower than the Rs 119.25 crore (17.2 per cent of TIO ) in the immediate trailing quarter.

    During the 16 quarter period under consideration in this report, Emami’s ASP was the highest in absolute rupees in the immediate trailing quarter (Q3-2105) at Rs 119.25 crore (17.2 per cent of TIO), while in terms of percentage of TIO, it was 21.3 per cent (Rs 102.84 crore) in Q1-2015. The lowest ASP by Emami in both in absolute rupees terms and as percentage of TIO was in Q4-2013 at Rs 36.6 crore and 9.2 per cent respectively during the period under consideration.

    In Fig A, the slope of the graph represented by the broken maroon line indicates that ASP in terms of percentage of TIO shows a slight increasing trend, and intercepts the Q4-2015 ordinate at 16.26 per cent, as opposed the 14.9 per cent actually spent by the company. The slope of the broken maroon line indicates that the ASP in terms of absolute rupees intercepts the Q4-2015 ordinate at Rs 94.3336 crore as compared to the Rs 82.47 crore actually spent by the company.

    As mentioned above, the company’s TIO is generally the highest in Q3 and lowest in Q1 of a financial year. In Q4S-2015, Emami reported TIO of RS 553.66 crore, which was 24.2 per cent higher y-o-y as compared to Rs 445.71 crore, but declined 20 per cent as compared to the Rs 692.26 crore in Q3-2015. Please refer to figure B below, in which the quarter on quarter percentage change of TIO is indicated by the red line with yellow markers.

    During the 16 quarter period under consideration, Emami TIO was highest in Q3-2015 at Rs 692.26 crore and lowest in Q1-2012 at Rs 299.91 crore. The black broken trend line shows that the company’s TIO is increasing linearly. The slope of the trend line intercepts the Q4-2015 ordinate at Rs 574.948 crore, indicating that the company’s performance at 553.36 crore was lower than that indicated by the trend line.

    The company’s PAT follows the same trend of being the highest in Q3 and the lowest in Q1 during the period under consideration in this report. PAT in Q4-2015 at Rs 138.33 crore (25 per cent of TIO) was 21.9 per cent more than the Rs 111.15 crore (24.9 per cent of TIO) in Q4-2014, but declined 24.7 per cent from Rs 183.70 crore (26.5 per cent of TIO) in Q3-2015. Please refer to Fig C below.

    During the 16 quarter period under consideration, the highest PAT both in terms of absolute rupees as well as percentage of TIO was in the previous quarter at Rs 183.7 crore and 26.5 per cent respectively.The lowest PAT in terms of absolute rupees and percentage of TIO was in Q1-2012 at Rs 41.5 crore and 13.8 per cent respectively.

    The slope of the pink broken trend line indicates its intercept of Q4-2015 at 23.52 per centof TIO as compared to the actual 25 per cent of TIO achieved by Emami. The slope of the broken blue line shows its intercept with Q4-2015 atRs 134.6008 crore as compared to the Rs 138.33crore PAT actually achieved by the company. Both trend lines inclinedlinear increments. 

  • Q3-2015: Emami q-o-q marketing expenses up 16 per cent; PAT doubles

    Q3-2015: Emami q-o-q marketing expenses up 16 per cent; PAT doubles

    BENGALURU: Over the past 12 quarters, Q3 of a financial year has traditionally been a good quarter for Emami Limited (Emami). The company’s advertisement and sales promotional spends have been highest during the period under consideration. Following its past convention, Emami increased its advertisement and sales promotion (ASP) spends in Q4-2015 by 16 per cent to Rs 119.25 crore (17.2 per cent of Total Income from Operations or TIO) from Rs 102.84 crore (21 per cent of TIO) in the immediate trailing quarter (Q2-2015) and 35.7 per cent more than the Rs 87.85 crore (15 per cent of TIO) in the corresponding year ago quarter (Q3-2014). During 9M-2015 (YTD), the company’s ASP was up 37 per cent to Rs 312.19 crore (18.8 per cent of TIO) from Rs 227.88 crore (16.6 per cent of TIO) in 9M-2014.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    During a 12 quarter period starting Q4-2013 until the current quarter, Emami’s Q3-2015 ASP is the highest so far in terms of absolute rupees – Rs 119.25 crore (17.2 per cent), but Q2-2015 ASP in terms of per centage of TIO was highest at 21 per cent (Rs 102.84 crore). Fig A below indicates a steep upward linear trend for ASP in terms of absolute rupees and an upward linear gradient for ASP in terms of per centage of TIO. Traditionally, during the last three financial years (FY-2012, FY-2013, FY-2014), Emami’s ASP has been lowest in the fourth quarter and if the company follows the same trend, a drop in ASP for Q4-2015 can be expected.

    Among the brands in Emami’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.

    PAT and Income

    Emami’s PAT in Q3-2015 almost doubled (grew by 98 per cent) to Rs 183.70 crore (26.5 per cent of TIO) from Rs 92.76 crore (18.9 per cent of TIO) in Q2-2015 and was 21.9 per cent more than the Rs 150.68 crore (25.8 per cent of TIO) in Q4-2014. During 9M-2015, PAT at Rs 347.28 crore (20.9 per cent of TIO) was 19.2 per cent more than the Rs 291.32 crore (21.2 per cent of TIO) in 9M-2014.

    Pease refer to Fig B below. In terms of absolute rupees and percentage of TIO, PAT shows an upward linear trend during the 12 quarter period under consideration.

    Emami’s TIO in Q3-2015 at Rs 692.26 crore was 41.4 per cent more than the Rs 489.60 crore in Q2-2015 and 18.4 per cent more y-o-y from Rs 584.67 crore. During 9M-2015, TIO at Rs 1663.59 crore was 21 per cent more than the Rs 1375.06 crore in 9M-2014. TIO shows an increasing linear trend during the 12 quarters under consideration.

  • Emami acquires controlling stake in Australia-based personal care company

    Emami acquires controlling stake in Australia-based personal care company

    KOLKATA: Kolkata-heaquartered fast moving consumer goods (FMCG) major Emami Ltd has acquired a controlling stake of 66.67 per cent in Australia-based personal care products firm Fravin.

     

    The stake in the Australian firm has not only opened the market further for the Emami group’s flagship FMCG firm Emami, but has also given it access to a range of organic and natural personal care products.

     

    The partial acquisition was done through one of its UAE-based subsidiary Emami Overseas FZE. Post this acquisition, Fravin and its three subsidiary companies have become subsidiaries of Emami.

     

    “The Fravin acquisition is in sync with the company’s strategy to grow aggressively through both organic and inorganic routes in India and overseas. This is a significant step for the organisation as the acquisition marks Emami’s entry into organic personal care products, where we were not present earlier,” said company director Harsh Agarwal.

     

    Agarwal said that the market for organic personal care products, which was around $ 7.6 billion in 2013, was expected to double in six years.

     

    It is learnt that Fravin will be a part of Emami’s international business division, which contributes around 14 per cent to the FMCG business.

     

    “Rising concerns for health safety, increasing green consciousness and growing awareness of the consumers about the hazards of using products with synthetic chemicals have fuelled the demand for organic personal care products,” he said.

     

    Promoted by Peter Francis, Fravin Group manufactures hair care and skin care products that are certified organic by various certification bodies in Australia and US. The firm has research and development (R&D) and manufacturing plant at Adelaide, the capital city of South Australia.

     

  • Foreseegame targets 500 brand tie-ups by FY16 end

    Foreseegame targets 500 brand tie-ups by FY16 end

    KOLKATA:Kolkata-headquartered Foreseegame.com, a digital media company for consumer engagement, which has tie ups with more than 70 brands like Emami, Rupa, Spencer’s, Airtel, and Citibank among others, is aiming to partner approximately with 500 brands by the end of next fiscal (2015-16).

     

    The engagement media company, which is a wholly owned subsidiary of Microsec Enterprises, allows brands to integrate with advertisements on TV, radio, newspapers, on-ground promotional activities, direct communication and most importantly, social media and mobile platforms.

     

    Foreseegame.com chairman BL Mittal said, “Through our platform and engagement games like opinions and surveys question and answer sessions, the brand can engage with people in the age group of 18 – 45 years. By registering the brands in the minds of people, companies can see tremendous growth in online sales. Some of the major brands have already partnered with us and we are eyeing 500 brands by the end of next fiscal.”

     

    “It is the media, which covers the full cycle of engagement by providing solution of rich engagement, testing the product and ultimately making the consumers emotionally connected persons with the brand. Our platform provides a focused consumer engagement. Brands stand to gain undiluted consumer attention towards its products and offerings by the way of fun-filled interaction,” Mittal added.

     

    At Foreseegame.com people can play games of prediction and get rewarded. Through such engagement programmes, the brands can see these people converting into customers sooner. “The constant engagement with brands excites consumers to test the product and ultimately become the customer of the brand,” Mittal said.
     
    “Brand engagement is required, but that shouldn’t just be interacting with the customers. It should be more like a long-term affair with the consumers, wherein key consumer insights should also be taken into account,” opines Abhishek Sengupta, a city-based advertising expert.
     
    When asked if the company takes consumer insights into account, Mittal said, “Brand ideas are often the culmination of consumer insight and the brand offer.”

  • Emami ropes in Kangana Ranaut as brand ambassador

    Emami ropes in Kangana Ranaut as brand ambassador

    MUMBAI: The FMCG major, Emami, has taken a relook at the competitive body lotion category, with the launch of the all-new BoroPlus Total Results Moisturising Lotion. The body lotion is expected to drive the winter sales and bolster the growth momentum of Rs 400 crore BoroPlus portfolio which contributes significantly to the company’s overall turnover.

     
    The company has signed actor Kangana Ranaut for the new product. The company believes that the actor with the rare combination of mass and niche appeal epitomises an independent-minded modern woman and essentially a beauty with brains—a trait which resonates with the TG of the brand.   

    Talking about her association with the brand, Ranaut said, “I am thrilled to be associated with BoroPlus, an iconic brand that is synonymous with protection. Hailing from a small-town in Himachal Pradesh, I am well aware  of the havoc which winters can create to one’s skin. After all these years, I have finally got a body lotion which combats 8 signs of dryness effectively making the skin look luminous and glowing. BoroPlus Total Results Moisturising Lotion is now my answer to all my winter woes.”

    Emami director Priti A Sureka said, “Winter Lotion is a category on a high growth path, both in urban and rural centres, with more than 800 crore in value sales in 2013-14. The category being populated with many players, competition is cut-throat. We have reworked on the overall capability by infusing new advanced product formulations, packaging etc which will deliver heightened customer satisfaction. The all-new BoroPlus Total Results Moisturizing Lotion differentiates itself through its efficacy of treating 8 signs of dryness, thus offering total results.  Kangana, with her rare combination of mass and niche appeal across urban and semi urban cities gels well with our brand persona and is a perfect choice as one of our brand ambassadors…”

    The brand endorsers’ list of brand BoroPlus has a legacy of star power of legendary actor Amitabh Bachchan, Kareena Kapoor Khan, Sonakshi SInha and Bipasha Basu.

    The launch of BoroPlus Total Results Moisturising Lotion would be supported by a 360 degree integrated communication, including digital media.  Directed by White Light Moving Pictures,   a TVC featuring Kangana Ranaut will go on air soon this month.  The campaign would be supplemented by a formidable modern trade and point of sales approach to connect with customers nationally along with print, outdoor and digital promotions.

     

  • Fairness products can’t show dark skinned people as unattractive or unhappy

    Fairness products can’t show dark skinned people as unattractive or unhappy

    MUMBAI: For all those who are tired of watching fairness cream advertisements and the way they portray people with dark skin, some relief is here. The self-regulatory body for the advertising industry of the country, Advertising Standards Council of India (ASCI) released a set of final guidelines for the advertising of skin lightening and fairness products.

    Adding to the earlier draft, after seeking industry and public feedback, ASCI’s new guidelines will ensure that advertisements of skin whitening products do not depict people with dark skin as somehow inferior to fairer people.

    The guidelines that are to be used while creating and assessing advertisements in this category include:

    • Advertising should not communicate any discrimination as a result of skin colour. These ads should not reinforce negative social stereotyping on the basis of skin colour. Specifically, advertising should not directly or implicitly show people with darker skin as unattractive, unhappy, depressed or concerned. These ads should not portray people with darker skin as, at a disadvantage of any kind, or inferior, or unsuccessful in any aspect of life.

    • In the pre-usage depiction of product, special care should be taken to ensure that the expression of the model/s in the real and graphical representation should not be negative in a way which is widely seen as unattractive, unhappy, depressed or concerned.

    • Advertising should not associate darker or lighter colour skin with any particular socio-economic strata, caste, community, religion, profession or ethnicity.

    • Advertising should not perpetuate gender based discrimination because of skin colour.

    Commenting on the new guidelines, ASCI Chairman Partha Rakshit said, “Setting up these new guidelines for the skin lightening and fairness products will help advertisers comply with ASCI code’s Chapter III 1 b which states that advertisements should not deride any race, caste, colour, creed or nationality. Given how widespread the advertising for fairness and skin lightening products is and the concerns of different stakeholders in society, ASCI saw the need to set up specific guidelines for this product category.”

    “As a self-regulating body, it is important to have the advertisers’ buy-in to the guidelines, and we are happy to note that both the industry and the consumer activists’ groups have welcomed these guidelines” he added.

    Currently brands like ‘Fair & Lovely’, ‘Fair & Handsome’, ‘Clean and Clear Fairness Cream’, ‘Olay Natural White’, ‘Lakme Perfect Radiance’, ‘Pond’s White Beauty’, ‘Loreal Paris Pearl Perfect’ etc are advertising for skin lightening products.

  • Emami urges men to be interesting with ‘He’

    Emami urges men to be interesting with ‘He’

    MUMBAI: Metrosexuals have busted what was once a predominantly female bastion – cosmetics. Reason why more and more such companies are entering the Indian market; deodorant manufacturers being one of them.

     

    Joining comparatively new entrants like ITC’s Engage and Vini Cosmetics’ Fogg and veterans including Axe and Park Avenue is the Rs 1821 crore FMCG major Emami’s brand new deodorant ‘He’.  With the pan-India rollout of ‘He’ currently underway, in the initial phase, the deodorant will  be available across all markets with a special focus on 23 top cities including metros, mini metros and tier I and tier II cities in the north, west and east. ‘He’ will be introduced in Hyderabad and Bangalore in the second phase.

     

    So what made Emami enter an already crowded turf? “It is a big and growing category and hence, has the potential for differentiated offerings. We don’t believe in entering any category or launching any product just for being there. We only enter a category when we are able to get the right mix for the launch of any product and have the strategy in place to attain success,” says Emami director Harsha V Agarwal.

     

    Agarwal argues that the deodorant segment has dynamic prospects as the level of penetration is very low. Also, in this category, not too much brand loyalty is exhibited by consumers as there is a multitude of me-too brands to choose from. Importantly, ‘He’ makes a differentiated promise to the customer of ‘being interesting’ as opposed to ‘being normal’ which is ‘boring’. Adding to the appeal is an unique fibre mould packaging which is sure to attract customers’ attention.

     

    ‘He’ will be launched in six variants—Smart, Confident, Extrovert, Recharge, Ruler and Magician. What’s more, actor Hrithik Roshan has been roped in as brand ambassador. “Hrithik is the youth icon, popular amongst the youth and teenagers both.  He is different from the run-of-the mill actors and has never hesitated to take up interesting and challenging roles, resulting in many blockbuster films,” says Agarwal about the choice of ambassador. As for the name ‘He’, he says, “It is short, synonymous to masculine, so an apt name.”

     

    Emami is undertaking an extensive social media marketing campaign #WhoisHe in the pre-launch phase. The launch is supported by 360 degree integrated communication including digital media. The campaign featuring Hrithik has been conceived and developed by Leo Burnett.

     

    According to a brand consultant, there is enough space in the market. Pricing will play a factor if people will pick it up from the shelf.

  • Zandu Sona relaunches with Bheem-stein

    Zandu Sona relaunches with Bheem-stein

    MUMBAI: Emami has rolled out a new campaign for its Chyawanprash brand, Zandu Sona Chandi.

     

    The campaign is created by Scarecrow Communications. The agency’s founder director Raghu Bhat said, “Our communication had to establish the dual benefits and product superiority of the brand in a mother’s mind. We used the insight that a mom wants to make her child’s dream come true and also a creative device of ‘Bheem-stein’ to drive home the functionality. The use of a child as a fighter pilot in the opening sequence is another visual that adds to recall of the ad.”

     

    On the new campaign, Emami director Harsha V Agarwal said, “This year post revamping the entire marketing mix, we launched Zandu Sona Chandi Chyawanprash Plus. The objective of the re-launch is to offer the consumer a completely differentiated and relevant offering that keep’s up with today’s needs.  Immunity is a generic offering by the Chyawanprash category, by fortifying our product with natural nootropic agents, our product offers the added benefit of mind power which is a category first and relevant in today’s competitive space. We expect the re-launch to reposition the age old category and give Emami a far larger role in the wellness space”

     

    The TV campaign is supported with press, outdoor and cinema advertisingScarecrow Communications founder director Arunava Sengupta added, “It was very important for us to deliver the product promise of ‘Plus’ in an emotional yet hard hitting manner. Something that sticks with the viewer.”

     

    Apart from Zandu Sona Chandi, Scarecrow Communication handles four other brands from the Emami portfolio.

  • The Flying Sikh to endorse Emami’s chawyanprash

    The Flying Sikh to endorse Emami’s chawyanprash

    MUMBAI: He has been the perfect symbol of youthfulness and vigour — on the race track and even in his life. And thus Emami has roped in former sprinter Milkha Singh to endorse its health supplement Zandu Kesari Jivan.

    This is the first endorsement deal that the “Flying Sikh” has signed almost after five decades of his last race for the country.

    The new television commercial of Zandu Kesari Jivan featuring Milkha Singh is scheduled to air this month. The TVC, created by Scarecrow Communications and directed by Shivendra Singh Dungarpur, reflects the core brand proposition of youthfulness and elaborates on the benefits of Kesar.

    Emami director Harsha V. Agarwal said, “We are honoured to have the great Milkha Singh as the brand ambassador for Zandu Kesari Jivan, one of our premium Zandu OTC products.  Our brand Zandu Kesari Jivan which promotes good health, youthful vigour and energy found a perfect fit in Milkha Singh, who even at the age of 84 is a symbol of youthfulness and vigour.”

    The health brand is positioned as a ‘saffron enriched revitaliser’ that promotes health, youthful vigour and energy through its unique composition of herbs coupled with benefits of Kesar.   Chyawanprash is a growing health supplement category in India worth Rs 400 crore which is spurred by the increasing interest in Ayurveda and ancient sciences.

    Speaking about his association, Milkha Singh said in a release, “Through my association with Zandu Kesari Jivan, I urge all people, young and old, to pay attention to their health and fitness. A healthy mind, body and spirit are the key to a youthful life.”

    The product is also endorsed by Pandit Shri Birju Maharaj, who epitomises youthful vigour and energy. Emami’s past and present brand endorsers include people like Mahendra Singh Dhoni, Sachin Tendulkar, Virendra Sehwag, Sushil Kumar, Mary Kom, Saina Nehwal, Gautam Gambhir, Amitabh Bachchan, Shahrukh Khan, Madhuri Dixit, Kareena Kapoor Khan and Bipasha Basu.

  • Emami wins the Greentech Safety awards

    Emami wins the Greentech Safety awards

    Mumbai: Emami Limited and Emami Paper Mills were awarded the prestigious 12th Annual Greentech Safety Awards by Greentech Foundation for both the company’s Abhoypur & Balasore Units’ excellent performance in maintaining health, safety and environment standards.

    The Abhoypur Unit of Emami Ltd and the Balasore Unit of Emami Paper Mills Ltd won the coveted awards in Gold & Silver categories respectively. The award ceremony was held at Goa on 2 September and was attended by the who’s who of industry.  While Abhoypur Unit manager – operations Sanjay Tarsolia collected the award from minister of State for Labour P T Parmeshwara Naik in the presence of Greentech Foundation president Kamleshwar Saran on behalf of Emami Limited, Balasore Unit director – operations MBS Nair collected the award on behalf of Emami Paper Mills.

    Speaking on this occasion, Emami Limited MD SK Goenka said, “We feel immense pride and satisfaction in the fact that the manufacturing units of two of our Group Companies, at Abhoypur and Balasore have made this mark.  It is all the more special since this was a very tight competition and we came out with flying colors. This just goes on to prove our commitment to the high level of safety maintained in our units, and we hope to surpass excellence in the future’.

    The Annual Greentech Safety Awards celebrate excellence, best practice and innovation in Fire Safety Management. It covers all sectors of industry and services who demonstrate highest level of commitment and best practices in reduction of incidents and accidents.

    The evaluation of nominations for Greentech Awards is an intensive process and follows a method of rigorous assessment of reports and presentation of queries in front of the board members. Nominations are evaluated by experts from Government, Academia and Industry.