EMAMI LIMITED 

1.1 Background and History: 

The company has 1 overseas unit in Bangladesh. Emami Ltd was incorporated on
March 11 1983 with the name AMP Udyog Viniyog Ltd. Initially R S Agarwal and R
S Goenka set up a cosmetic manufacturing unit in Kolkata in 1974 under the name
of Kemco Chemicals a partnership firm.
 
Emami limited is one of India's leading FMCG companies engaged in manufacturing
& marketing of personal care & healthcare products.Emami limited sells over 300
diverse products. Emami's portfolio includes brands like 
  Navratna BoroPlus Fair  
 Handsome Zandu Balm Kesh King  
 Mentho Plus 

The company's product categories consist hair care skin creams soaps and lotions
talcum powder and ayurvedic healthcare products includes 
Navratna Oil Boroplus Antiseptic Cream Fair  
Handsome Navratna Cool Talc Sona Chandi Chyawanprash Zandu Balm
Himani Fast Relief Emami Healthy  
Fair Emami Malai Kesar Cold Cream Lalima Sardi Ja 
  Zandu Pancharishta.

Emami products are available in over 8.5 lac retail outlets across India through its
network of 3150 distributors and its global footprint spans over 60 countries including
GCC Europe Africa CIS countries & the SAARC. Emami has 8 manufacturing units
across India. The company has ultra-modern manufacturing facilities at 
Kolkata (West Bengal)  
Guwahati (Assam) 
Pantnagar (Uttarakhand) 
 Vapi (Gujarat) 
Silvassa (Dadra & Nagar Haveli)  
Talasari (Maharashtra) 
They have adopted the Total Quality Management system and all their manufacturing
facilities have received cGMP and ISO 9001:2000 certifications.  
The cosmetic products as well as Ayurvedic medicines manufactured by the unit were
marketed under the brand name of Emami. In the year 1978 Himani Ltd a sick unit
was taken over by the Group and the new management decided to produce different
types of health care items and toiletries with Ayurvedic preparation. In the year 1994
Himani Ltd was then merged with AMP Udyog Viniyog Ltd and the name was
changed to Himani Ltd with effect from May 5 1994.

 In the year 1995 Kemco Chemicals the partnership firm was converted into a public
limited company under the name and style of Emami Ltd with effect from April 1
1995. In the year 1998 Emami Ltd was then merged with Himani Ltd and the name
was changed to Emami Ltd with effect from September 1 1998.In the year 2000 the
company's investment undertaking was de-merged into Pan Emami Cosmed Ltd with
a view to concentrate on their core FMCG business.
 
In the year 2005-06 the company started a third-party manufacturing unit in Baddi in
Himachal Pradesh. They set up a wholly owned subsidiary company namely Emami
International FZE in UAE to expand their foreign market. In response to the
marketplace reality the company launched 'Navratna' cool talc an extension of its
hugely popular 'cool' oil Brand  In the year 2006-07 the company launched  
Fair and Handsome Fairness Cream for men Fair  
Ageless Fairness Cream Boroplus Antiseptic Light Cream 
Body Lotion  
Mr. Black and Mrs. Black herbal Hair Dye Powder 
  Malai Kesar Cold Cream 
 
They launched Chandi Healthy and Fair Baby Massage Oil Good Morning an
Ayurvedic laxative Churna Sardi Ja a cough syrup and Vaporub and Memo-plus a
memory booster Sanjeevan Dhara - a digestive in the market. In May 2007 the
company formed a wholly owned subsidiary company namely Emami Realty Pvt Ltd.
The company ventured into the realty business through this wholly owned subsidiary
company.  In November 2008 the company acquired 68.9% stake
in Zandu Pharmaceutical Works Ltd at a consideration of Rs 713 crore and de-
merged Zandu's FMCG business into the company. 

During the year 2009-10 the company launched new products namely  
Boroplus Winter Lotion  
Emami Malai Kesar Soap  
Navratna Oil 
Zandu Balm in a new bicolour plastic container. 

They opened a new depot in Coimbatore to widen South India sales. Also they

commenced operations in Bangladesh. In 2010 the company's net sales crossed of Rs
1000 crore milestone. During the year the company carried out a stock split from Rs 2
to Re 1 per share.  During 2011-12 the company increased its direct rural reach. The
direct retail coverage increased to 5 lac outlets. During the year the company-initiated
Bangladesh and Egypt units which are expected to become operational in 2012-13.
During the year the company completed integration of the southern distribution
channel of Zandu with Emami.
  
The company also enhanced focus on the marketing activities of healthcare products
of Zandu. In 2013 the company launched BoroPlus Face wash. 
On 8 August 2016 Emami announced the reintroduction of its pain solution
balm Zandu Balm with a new and advanced formulation offering a more effective and
faster pain solution.  Emami's 3rd manufacturing unit at Pacharia Assam was formally
inaugurated on 14 November 2017. Located at Pacharia in the Kamrup district of
Assam and spread over 34 acres of land the new plant of the company is the largest
production facility of Emami in India.  

Helios owns the fast-growing male grooming brand 'The Man Company'. The
products are currently sold online majorly through the company's own website
- www.themancompany.com. 

1.2 Vision & Mission: 

Our Company Vision:
Making people healthy and beautiful, naturally. 
Our Company Mission:  
To contribute whole heartedly towards the environment and society integrating all our
stakeholders into the Emami family 
To make Emami synonymous with natural beauty and health in the consumers mind 
To drive growth through quality and innovation in products and services. 
To strengthen and foster in the employees, strong emotive feelings of oneness with
the company through commitment to their future 
To uphold the principles of corporate governance 
To encourage decision making ability at all levels of the organization 
1.3 Goals & objectives:
The Ememi ltd is for growth both organic and inorganic expansion
1. Enhance product recall through aggressive promotion via celebrities
2. Expand distribution to reach rural pockets
3. Differentiated valve for money products
4. Innovate and enter new product categories
5. Undertake brand extensions
6. Wider international footprint,entry in new geograghies-drive exports
7. Leverage existing distribution network
1.4 SWOT analysis: 
Strengths 
1. High Piotroski Score - Companies with strong financials  
2. Company with high TTM EPS Growth 
3. Growth in Net Profit with increasing Profit Margin  
4. Company with Low Debt 
5. Increasing profits every quarter for the past 3 quarters 
6. Increasing Revenue every quarter for the past 2 quarters 
7. Company with decreasing Promoter pledge 
Weakness  
1. MFs decreased their shareholding last quarter  
2. Poor cash generated from core business - Declining Cash Flow from Operations
for last 2 years  
3. Declining Net Cash Flow: Companies not able to generate net cash  
4. Annual net profit declining for last 2 years 
 5. Book Value Per Share deteriorating for last 2 years 
Opportunities 
1. Rising Delivery Percentage Compared to Previous Day and Month, Strong
Volumes 
2.Brokers upgraded recommendation or target price in the past three months 
3.Highest Recovery from 52 Week Low 
4.RSI indicating price strength 
5.High Volume, High Gain 
Threats 
1. Stocks with high P/E (Price-to-Earnings)
1.5 Product profile:
 For more than 35 years Emami has been innovating and launching brands meeting
multiple consumer needs, spanning across various income groups, for young to old and
everyone in - between. We are passionate about creating best in class and affordable
brands in health and personal care markets. We invite you to discover our brands.
BoroPlus.
Kesh King.
Mentho plus balm.
Emami Golden Beauty.
Emami Naturally Fair.
Emami Emasol.

1.6 Market share: 

1.7 Present status:

1. Improving outlook,lower promoter pledge positive for emami stock.
2. FMCG(Fast moving consumer goods) stocks come back on bulls rader after
nearly 4 months on sidelines.
3. Emami gains 3% hits 52-week high in an otherwise subdued market
4. Emami looks to tap to shift homegrown brands after Atmanirbhar campaigh

1.8 Future plans: 

 1. Emami group is engaged in the business of personal and health care products,
paper, hospitals, edible oils, bio- diesel, cement, real estate, retail chains, power
and art.
2. There had been a recent downgrade in the ratings in one of the unlisted group
companies.
3. "We are fully covered to meet all repayment obligations in the group companies.
In the last 4 months, we had repaid ₹2,800 crore. The group promoters' debt is
now at ₹2600 crore.

2.1 Origin of the industry in india:

The inception of Emami Group took place way back in mid-seventies, in West
Bengal, when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their
high profile corporate jobs with the Birla Group to set up Kemco Chemicals, a
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 for creating winning brands, the Company started
its journey with a meagre amount of Rs. 20,000. A dream of reaching out to the
Indian middle class consumers, a target audience, with a potential of increased
consumption, the Company started manufacturing cosmetic products under the brand
name of Emami from a small office (still retained) in Kolkata's business district of
Bada Bazar. This business philosophy is reflected today in the mission statement of
Emami Limited: "Making people healthy and beautiful naturally". From the days of
hand pulled rickshaws to a network of over 3200 distributors.

2.2 Growth and present status:

Our company emami ltd present the Integrated Annual report. Our believe that the
time has come to extend beyond the conventional appraisal of corporate performance.
This appraisal needs to be not as much about our topline and bottom-line but all
factors influencing these visible indices. The result is that our annual report has
analysed all factors that have translated into our sustainability: Manufacturing capital,
Natural capital, financial capital intellectual, social and relationship and human
capital. The interplay of these capitals has translated into a sustained growth in net
worth and other stakeholder-centric measures. Even as the indian economy was
affected by the slowdown, emami prioritised research, product introduction,cost
optimisation, footprint expansion, direct reach and modern trade expansion and
digitalisation. We believe that our business model will be more relevent in a new
world facing the challenge of COVID-19 as consumers invest more in hygine,
healthcare and wellness. Emami is positioned to capitalise and resume its multi-year
growth journey

2.3 Global Scenario:

Our company Emami ltd would focus on th international markets in the current fiscal
through differently positioned products, MD Sushil Goenka has said “We will deepen
our focus on the international markets… We are launching a differently positioned
product and revamped the logistics system to distribute them wider an deeper,” he
said in the company’s latest annual report. He said the FMCG major would continue
to strengthen the promoter-professional framework. “While the promoters help chart
out a strategic direction, the professional will address day-to-day operations,” Goenka
said Emami said it is optimistic on the outlook for 2019 20. “With trade channels
regaining vitality in the wake o GST implementation, the global trade scenario
showing improvement… the company was poised to capitalise in th current fiscal,” it
said in the report. The company is keen grow revenues from key global markets and
expects to capitalise on the Sri Lankan market through a manufacturing facility,
Emami said.
2.4 Keyplayers in the industry:

1. FMCG - Emami Limited is one of the leading and fastest growing personal and
healthcare businesses in India, with an enviable portfolio of household brand names
such as BoroPlus, Navratna, Fair and Handsome, Zandu balm, Mentho Plus balm and
Kesh King.
2. Edible oil - The brand Healthy and Tasty is one of the most admired edible oil
brands in the country manufactured and marketed by Emami Agrotech Ltd. The
Company's vision is to pursue aggressive growth to become prominent edible oil
player offering healthy and high quality consumer products.
3. Bio diesel - Emami Agrotech Ltd. is the largest manufacturer of Biodiesel in
Eastern India and a key exporter of biodiesel to Europe and other South East Asian
Countries.
4. Paperboard and Newsprint - Emami Paper enjoys the position of being the largest
manufacturer of newsprint in India, and the only manufacturer in eastern India with
units in Kolkata and Balasore. The Company has shifted its focus into paperboard
manufacturing and has already become a rising star in the premium paperboard
segment.
5. Real estate - Emami also has large presence in real estate in West Bengal. It has
successfully executed more than 24 prestigious residential and commercial
construction projects, mainly in Kolkata. The existing projects span across the states
of West Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and Maharashtra and Sri
Lanka.
6. Healthcare - AMRI Hospitals, a multi-specialty healthcare facility in Eastern India
with specialization in Oncology, Neuro Sciences, Cardiac Sciences, Orthopaedics,
Emergency & Trauma care, Gynaecology & Childcare is the largest player in private
sector with its existing strength of around 1000 beds. It has 4 units in Kolkata and one
in Bhubaneswar.Eastern India. The first Frank Ross store was set up in 1906. An
ambitious plan of having a network of the pharmacy retail chain with over 300 outlets
all over India has been taken up by the Group.

8. Retail - Starmark -retailing books, stationeries and gift items. It is one of the largest
leisure retail store in India with 5 stores in Kolkata and 2 in Chennai and has plans for
further expansion. Recently launched in Kolkata, 'Studio by Starmark' is a new format
store, featuring an eclectic collection of lifestyle products & stylish home accessories.

2.5 Market Analysis:

2.6 PESTLE Analysis:
Political:
1. Raw materials-Agriculture-Environment laws
2. Waste management
3. Import-export laws

Economic:

1. Shifting of headquartes-Rent-Earning

2. Excise tax and sales tax

3. Domestic currency fluctuation

4. New policies are being adopted by the government and RBI to control inflation
rate

Social:

1. Loyal customer base

2. Increasing population-Increase in market size

3. Pollution free working

4. Global trend-Decline expected

Technological:

1. Modern equipments

2. Investments in RnD

3. Safety measures

4. Technoloy has been made available in india and is also imported from foreign
countries

Legal factors:

1. Employee protection laws

2. Consumer protection laws

3. Intellectual property laws

Envinomental factors:

1. Recycling and waste management

2. Renewable technologies

3. Weather and climatic conditions

4. Attitude towards eco-friendly products

5. Environmental regulations to aviod resource depletion

2.7 Porters’s Five Forces:

hreat of competitors: Threat of competitors are high due to a lot of players being
there in the market. As mentioned earlier products like Garnier fairness, Fair &
Lovely menz active and Nivea are present in the market.
Bargaining power of suppliers :If the supply of Emami product is sufficient with
respect to the demand of the market then there will be Low bargaining power of
suppliers.

Threat of substitutes:Threat of substitute product is High like there are many

substitutes Ayurvedic product from Himalaya and other women fairness creams still
serve as threat to F&H as men has not been able to distinguish between genders
specific fairness creams.

Bargaining power of buyers :The bargaining power of buyers is Low since they
cannot influence the prices to such a great deal. Emami made many broadcasting
through advertising on television that kept on increasing sales regardless of the
increase in price of F&H

Threat of new entrants :Threat of new entrants is High because the exit barriers are
low and there by firm can and exit easily

3.1 Marketing
3.1.1 Identify segments and target markets:
Fair and Handsome (Face wash):

Fairness cream targeted at urban young men from middle and upper middle class

First mover’s advantage in men’s fairness cream segment

Growing interest in personal grooming amongst indian men will create a demand for
more similar products

Frequent travellers & adventure seeking segment

Navratna cool oil (Thanda Thanda cool cool)

Traditional therapeutic cool oil that turned refreshingly modern, addresses stress and
headaches

Masses, especially young and middle aged men who suffer from a day to day stressful
life

From rural working class to now upwardly mobile sachetization to penetrate rural
market

Packaging that addresses individual needs rather than a family pack

Focus on positioning it as a stress reliever in life-style consumer product segment

Product bundling to boost sales of Navaratna extra Thanda & Navratna cool Talc

Boroplus Antiseptic Cream (Healthy skin):

Herbal skin cream targeted at all age groups for skin-care

Positioned as an antiseptic cream and a protector from minor skin diseases and harsh
weather conditions

Ideal against cuts, rashes & bruises

Focus on smaller SKUs (stock keeping unit)

More innovative products in skin care segment

Target on youth, sports-persons, school going children

Zandu Balm (ultra power):

Gives instant relief from Headache, Cold & Body-pains

Unique, trusted formulation of ‘Pain Management’ balm focussed towards middle

aged and Old age population

Growing sedentary lifestyle will create more demand for such products.

Focus upon targeting Housewives & Children 

Introduce ointment, Spray & Gel products in Pain Management category 

Avoid possible cannibalization with Menthoplus

Mentho plus:

Pain relief balm

Middle aged and elderly individuals suffering from stress

Quick and effective remedy against headaches, cold, backaches, sprains and muscular
pain.

3.1.2 Range of Products/service:

3.1.3 Promotion Strategies:
Emami is one of the highest spenders on advertising and promotions in its category.
India is a market of over a billion people and a majority of this market is rural, at the
bottom of the pyramid. It is price sensitive and emotional. This segment responds to
the pull of a visible celebrity. They pioneered the concept of endorsements and in-film
advertising with the objective to create aspirational aura and recall. The promotions
were directed at arresting the attention. The brand ambassadors were signed on the
basis of the brand need and the fit between the particular brand and the star. Till date,
Emami has been endorsed by more than 60 celebrities like Amitabh Bachchan, Shah
Rukh Khan, Rekha, Kangana Ranaut, Juhi Chawala, Sourav Ganguly, Sunny Deol
etc. It promotes using healthy mix of print, television and digital medium.
Advertisements are shown on television channels like Star Plus, Zee Cinema, Sony
TV, Colors and many more along with sports channel for maximum coverage. Emami
was also involved in sponsorship activities with beauty pageants like Kolkata Fashion.
The company also provides various offers and discounts to promote and create
customer loyalty. Also, these offers provide huge sales and high volumes of revenue.

3.1.4 Market share and comparison to competition: