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Tag: Zandu Balm

  • Q1-2016: Emami spends Rs 142.06 crore towards marketing

    Q1-2016: Emami spends Rs 142.06 crore towards marketing

    BENGALURU: Emami Limited spent 38.1 per cent more towards Advertisement and Sales Promotion (ASP, marketing) in Q1-2016 (quarter ended 30 June, 2015) at Rs 142.06 crore (24.1 per cent of Total Income from Operations or TIO) as compared to the Rs 102.84 crore (21.3 per cent of TIO) in the corresponding quarter of the previous year. Emami’s Q1-2016 ASP was 72.3 per cent more than the Rs 82.47 crore (14.9 per cent of TIO) in the immediate trailing quarter (Q4-2015).

    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 ChandiChyawnprash Plus, Zandu Kesari Jivan,etc. 

    Emami director Mohan Goenka said, “The first quarter of 2015 has been challenging with subdued economic environment and unfavourable weather, which is expected to continue. Notwithstanding such hurdles, Emami has ensured a good performance to deliver a profitable growth during the quarter. Strong performance by all our power brands in key categories coupled with growth in International business has helped us to register a 22.4 per cent top line growth.”

    Please refer to Fig A below for ASP during the 17 quarter period starting Q1-2012 until the current quarter. ASP in Q1-2016 has been the highest by the company in terms of absolute rupees and in terms percentage of TIO at Rs 142.06 crore and 24.1 per cent. Historically, as is evident from the figure below, Emami’s ASP has been the highest in Q3 of a financial year (the festival season in India) and the next highest in Q1, with the company spends the lowest towards marketing in Q4.

    During the 17 quarter period under consideration in this report, Emami has spent the lowest towards ASP in terms of absolute rupees and percentage of TIO in Q4-2012 at RS 36.60 crore and 9.2 per cent of TIO. The broken blue and maroon trend lines indicate that the company’s ASP shows a linear increasing trend in terms of absolute rupees and percentage of TIO.

    Also historically, Q3 of a financial year has been the best quarter for Emami in terms of TIO and PAT, which peaked 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. Please refer to Fig B below.
    In Q1-2016, Emami reported TIO of Rs 589.87 crore, which was 22.4 per cent more than the Rs 481.73 crore in Q1-2015 and was 6.5 per cent more than the Rs 553.66 crore in Q4-2015..
    During the 17 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 broken brown trend line shows that the company’s TIO is increasing linearly.
    PAT in Q1-2016 at Rs 87.75 crore (14.9 per cent of TIO) was 23.9 per cent more than the Rs 70.80 crore (14.7 per cent of TIO) in Q1-2015 but was 36.6 per cent lower than the Rs 138.33 crore (25 percent of TIO) in Q4-2015.

    Company Speak
    Domestic business in the first quarter grew steadily to achieve a healthy topline growth of 23.4 per cent. Despite prevailing macro-economic challenges and not very favourable weather, both the consumer care and the health care segments have performed considerably well.
    New brands such as Fair and Handsome Instant Fairness Facewash, Emami 7 Oils in One, Zandu Balm Ultra Power and ‘HE’ Deodorant continue to contribute to the growth during the first quarter.
    The quarter also witnessed the launch of a brand extension – Zandu Gel Balm Junior, the first ever gel based balm for kids in the country. The company also scaled up its spend on both advertisement and brand building during the quarter. Despite the high increase in ad spends, the company’s EBIDTA during the quarter rose by 32.9 per cent, bettering industry average.
    Aggressive marketing campaigns, both ATL and BTL delivered rich dividends in terms of growth of most of Emami’s Power Brands. Navratna Oil, Navratna Cool Talcum Powder, Zandu Balm, MenthoPlus Balm, Fair & Handsome and Zandu HCD Range grew in healthy double digits and enhanced their respective market shares.
    With increased emphasis, improved visibility and focused execution, the Modern Trade business and Direct Rural business continued to grow at a steady pace.
    Emami director Harsha V Agarwal said, “Prudent approach, efficient cost management and robust business model have helped us to meet the challenging environment to remain competitive and profitable. For the long term, we will continue to focus on cost efficiencies and invest in R&D and brands to further grow our market share. As part of our aggressive growth strategy, we acquired the Kesh King business during the first quarter FY-2016 and forayed into the Ayurvedic Hair & Scalp care segment. The Kesh King business is being integrated with Emami’s existing business and it has already started contributing to the growth. We plan to make Kesh King a pan-India brand soon.”
    Emami acquired hair and scalp care business under the ‘Kesh King’ and allied brands for Rs 1684 crores. The company raised around Rs 950 crore debt to partially fund the acquisition. The balance was funded by internal accrual.

  • 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 q-o-q ad and sales promo spend down 44 per cent in Q4-2014

    Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014

    BENGALURU:  In keeping with its norms, Indian personal and healthcare company Emami Limited (Emami) Advertisement and Sales Promotion (Ad & SP) spend during the last quarter of FY-2014 was the lowest during the year. In Q4-2014, Emami Ad & SP at Rs 49.53 crore was  down (–43.64) per cent as compared to the Rs 87.85 crore in the immediate trailing quarter Q3-2014 and just a meagre 1.18 per cent more than the Rs 48.95 crore in the year ago quarter – Q4-2013.

    Notes: (1) 100,00,000 = 100 lakh = 1 crore = 10 million.

    (2) All trends mentioned in this report are linear trends based on data across nine quarters starting Q4-2012 and ending Q4-2014 and across FY-2012 to FY-2014.

    At 11.11 per cent of net sales, Emami’s Q4-2014 Ad & SP percentage of net sales was the third lowest over a nine month period starting Q4-2012 and ending Q4-2014. The lowest corresponding figure over the nine quarters was in Q4-2012 at 9.19 per cent of net sales (Rs 36.60 crore). During Q3-2014, Ad & SP as percentage of net sales was 15.03 per cent and during Q4-2013 it was 10.85 per cent (second lowest).

    In terms of absolute rupee value terms, Emami’s Ad & SP Exp trends upwards, while in terms of percentage of net sales, it shows a downward trend. Also, in Q1-2013, and Q1-2014, Emami’s Ad& SP Exp was 18.72 per cent (second highest over nine quarters) and 18.85 per cent (highest over nine quarters) respectively of net sales.  If the company follows these norms, Q1-2015 should see a substantial increase in Ad & SP Exp as percentage of net sales. Please refer to Fig 1 and Fig 1A below.

     

    Emami’s PAT and net sales across the quarters under consideration and the three financial years FY-2012 to FY-2014 trends upwards as per Fig 2 and Fig 2A below.

    Among the brands in the company’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.

  • Rediffusion-Y&R bags creative mandate for Emami’s Mentho Plus and Fast Relief

    MUMBAI: Rediffusion-Y&R has won the creative duties of Emami‘s Mentho Plus and Fast Relief.

    With these two account wins, Rediffusion-Y&R gets creative duties for the FMCG giant‘s complete pain management portfolio because it already handled Zandu Balm‘s account.

    Emami general manager – marketing Vilien Dengle said, “Rediffusion-Y&R has been working closely with Emami for over four years now.

    hroughout, they have continued to exhibit an intimate level of engagement with our brands, the category, and our markets, which, coupled with their strong creative capabilities, have made our brands salient in the minds of our consumers. Hence, we are happy to entrust them with the creative duties for our entire pain management solution.”
    Rediffusion-Y&R also manages the marketing communication for the BoroPlus brand.

    Rediffusion-Y&R president D. Rajappa added, “We are delighted to contribute to the development and growth of such iconic brands of the Emami family. We partner with our clients to make brands important in the lives of its consumers through strategically sound and innovative creative ideas.”

  • Malaika, Suriya, Junior NTR named brand ambassadors of Zandu Balm

    Malaika, Suriya, Junior NTR named brand ambassadors of Zandu Balm

    MUMBAI: Emami has roped in Tamil star Suriya, Telugu actor Junior NTR and Malaika Arora Khan as the new brand ambassadors for Zandu Balm.

    Said Emami Limited director Mohan Goenka, “We feel consumers will enjoy the film and the campaign will evoke a strong response. We are confident that the ad-film will generate popularity for the brand amongst the generation next consumers adding to its mass appeal as it has already done with the ‘Munni Badnaam‘ song.”
     
    The new advertisement will attempt to reincarnate the hit song from the movie Dabbang, ‘Munni Badnaam‘. The ad will be shot in Tamil and Telugu along with Hindi by Prahlad Kakkar in Mumbai.

    Averred Malaika Arora, “It‘s like déj?vue. I‘m thrilled to be dancing to Zandu balm all over again, it brings back memories. It is a fun song and I am very pleased to be associated with the 100 year old brand Zandu.”
     
    Malaika is endorsing the brand in North India as the brand ambassador. The new advertisement with Malaika, NTR and Suriya is targeted for the regional consumers and will be aired from December last week.

    Emami has also bought all the rights for the ‘Munni Badnaam Song‘ from T-series. The company with this TVC has come up with an evolved strategy to capture and connect with the younger consumers. 
     
    Said Adman Pralhad Kakkar, “With Munni dancing to Zandu balm we will connect with the younger generation and reinforce the brand name once again.”