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TRANSCRIPT
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market size
Market
Growth 2006-07 2007-08 2008-09 2009-10
Personal carePersonal wash 1% 45,000.00 45,450.00 45,904.50 46,363.55
Hair Care 15% 30,000.00 34,500.00 34,845.00 35,193.45
Oral care 8% 25,000.00 27,000.00 27,270.00 27,542.70
Skin care 15% 13,000.00 14,950.00 15,099.50 15,250.50
Male grooming 20% 2,000.00 2,400.00 2,424.00 2,448.24
Feminine hygiene 20% 2,000.00 2,400.00 2,424.00 2,448.24
Household Care
Fabric Wash 4% 50,000.00 52,000.00 52,520.00 53,045.20
Household Cleaners 15% 11,000.00 12,650.00 12,776.50 12,904.27
Dish wash 7% 5,000.00 5,350.00 5,403.50 5,457.54
Food and Beverage
Edible oil 5% 120,000.00 126,000.00 127,260.00 128,532.60
Bakery 2% 80,000.00 81,600.00 82,416.00 83,240.16
Tea 8% 80,000.00 86,400.00 87,264.00 88,136.64
Dairy Products 5% 55,000.00 57,750.00 58,327.50 58,910.78
Soft Drinks 5% 45,000.00 47,250.00 47,722.50 48,199.73
Coffee 10% 6,000.00 6,600.00 6,666.00 6,732.66
Culinary Product 20% 15,000.00 18,000.00 18,180.00 18,361.80
Mineral Water 5% 10,000.00 10,500.00 10,605.00 10,711.05Chocolates 6% 10,000.00 10,600.00 10,706.00 10,813.06
Heath foods and drinks 10% 25,000.00 27,500.00 27,775.00 28,052.75
Branded Wheat Flour 8% 5,000.00 5,400.00 5,454.00 5,508.54
1) Investments required for setting up the
manufacturing facitlity
2)Operational expenses- COGS and logistics
3) Turnover that can be achieved
4) growth
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target 52000
total 38,642.83
2010-11 2011-2012
already
present
should
enter money req in crores
% market
share to be
gained value46,827.18 47,295.45 7% 3,310.68 xxx traditional soaps/ sach
35,545.38 35,900.84 6% 2,154.05 x
27,818.13 28,096.31 - toothpaste/tooth pow
15,403.00 15,557.03 9% 1,400.13 x
2,472.72 2,497.45 11% 274.72 xx skin whitening/male s
2,472.72 2,497.45 6% 149.85 xx
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53,575.65 54,111.41 8% 4,328.91
13,033.31 13,163.64 11% 1,448.00 x
5,512.11 5,567.23 -
-
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129,817.93 131,116.11 9% 11,800.45
84,072.56 84,913.29 -
89,018.01 89,908.19 -
59,499.88 60,094.88 17% 10,216.13 xxx
48,681.72 49,168.54 -
6,799.99 6,867.99 412.08
18,545.42 18,730.87 6% - 55 by acquisation of Gard
10,818.16 10,926.34 -10,921.19 11,030.40 -
28,333.28 28,616.61 11% 3,147.83 28 by acquisation of MAA
5,563.63 5,619.26 -
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et body wash in sachet/ focus on rural markets
der
ampoo/male soap/face wash/shaving cream
en namkeen
brand
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Ratios 31-Mar-08 31-Mar-07
Quick ratio = (current assets - inventories)/Laibilities 0.54 0.45
current ratio = currents assets/current liabilities 0.95 0.84
debt to equity ratio
PER UNIT OF PRODUCTION
Electricity (Kwh/Tonne) 195.72 270.72 31.21 35.35
Furnace Oil (Lts/Tonne) 27.61 49.91
snacks dairy
investement (rs in cr) 160 100
investement (rs in billion) 1.6 1
turnover (rs in cr) 100 800
turnover (rs in billion) 1 8
growth rate 20% 5%
Category Subcategory Brand
Personal care Hair care
Chik
shampoo
Nyle herbal
shampooMeera
Badam
shampoo
Meera hair
wash
powder
Karthika
hair wash
powder
Meera
herbal hair
oil
Indica hair
colorant
Skin care Fairever
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Spinz talc
Spinz
deodorants
Nyle cold
cream and
lotion
Home care
Tex toilet
cleaners
Foods Pickles Ruchi
Chinnis
Masala Chinnis
Vermicelli Chinnis
Ready to cook
Ruchi
Gulab
Jamun
Mix/Asafoe
tida
Dates and
Candies Health Plus
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1E+11
10000
personal care (personal
wash, hair care, oral care)
220
2.2
1260
12.6
7.5%
Target market Positioning
Girls and women in rural
and semi-urban India Softness and manageability of hair
Women in the age group of
1835 years Herbal shampoo that nourishes the hairRural and urban women in
the age group of 1835
years
Strong and healthy hair using a
combination of flowers and herbs
Rural and urban women in
the age group of 1835
years
Traditional method of taking oil bath
once a week
Rural and urban women in
the age group of 1835
years
Combination of herbs to provide soft,
lustrous and healthy hair
Rural and urban women in
the age group of 1830
years
Herbs nourishing the oil, in a packaging
that makes the herbs visible in the oil
Men in late 20s and mid-30s Forever young
Contemporary women of
today
Natural ingredients including Kashmir-
saffron and milk; triple sunscreens
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1826-year-old girl from
SEC A and B Mild lasting
1826year-old girl from
SEC A and B
Mild lasting fragrance that keeps you
fresh all day
Women of all age groups
and SEC classes
Nourish the skin from deep within, andreduce winter dryness, leaving the skin
smooth, flexible, and glowing even in
the harshest winters
Housewives of all age
groups Extra thick and cleans completely
Premium packs
Highest levels of taste and quality with
a South Indian tradition
Healthy alternative to
locally packed pickles
Quality, nutrition, value-for-money and
convenience pickle as a side-dish with
a meal
Key ingredients sourced
from prime locations
Highest quality ingredients used to
make the masalas and foods taste finger-
licking good
Affordable, convenient
option
Hygienic packaging and competitive
price
Affordable, convenient
option
Hygienic packaging and competitive
price
Products that stand for
health and energy
Nutritious, tasty snacks that arehygienically packed and can be
consumed whenever, wherever
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100 42 75 15 275
0.0001 42 100
1 420000
30000 126000000001260
Indian QuotatiAmount> International Quotation
1 Lakh 100,000.00 100 Thousands
10 Lakhs 1,000,000.00 1 Million
1 Crore 10,000,000.00 10 Million
10 Crores 100,000,000.00 100 Million
100 Crores 1,000,000,000.00 1 Billion
Inherent within this is the unstated equation which says 1 million = 0.1 Crore (Rs 5 Cr
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115
0.418182
/ 0.1) / 50 = Rs 5 Cr / 5 = 1 million
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2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2011-12
400 500 764 908 980
36 -18.5 13.3
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as at 31 mar 08 as at 31 mar 07
sources of fundsshareholders funds:
share capital 0.98 0.98
reserve and surplus 23.78 15.00
24.76 15.98
loan funds:secured loans 11.59 11.41
unsecured loans
11.59 11.41
deferred tax liability
total funds 36.35 27.40
application of fundsfixed assets:
gross block 37.23 31.98
less:accumulated depreciation and amortization 8.64 6.55net block 28.59 25.43
add :capital work in progress including advances 0.58 1.95
29.17 27.38
Investments 7.98 2.36
Deferred Tax asset 0.32 0.32
current assets,loans and advances
Inventories 8.50 6.72
sundry debtors 2.61 2.93
cash and bank balances 0.18 0.86
other currrent asset 0.19 0.11
loan and advances 8.44 3.79
19.92 14.41
Less : Current liabilities and provision
Current liabilities 20.60 16.58
provisions 0.45 0.49
21.05 17.07
Net current assets (1.13) (2.66)
Total assets 36.34 27.40
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8.95
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31-Mar-08 31-Mar-07 31-Mar-08
Income
actual (in Rs
million)
Sales 112.39 100.00 5619.50
other income 0.35 0.48 17.50
112.74 100.48 5637.00Expenditure
Material cost and other expenses 99.72 93.61 4986.00
Interest 1.65 1.49 82.50
Depreciation and amortization 2.59 2.46 129.50
sum expenditure 103.96 97.56 5198.00
Profit/(Loss) before taxation 8.78 2.92 439.00
Provision for taxation
Current Tax 0.65 0.00
Fringe benefit tax 0.22 0.00
Deferred tax charge/credit (0.37) 0.00
0.50 0.00
Profit/(Loss) after taxation 8.78 2.42 439.00
Balance brought forward from previous year 0.71 0.00
Dividend
Proposed final dividend on equity shares 0.09 0.00
Proposed dividend on prefernce share 0.00 0.00
Corporate dividend tax
Equity 0.02 0.00Preference 0.00 0.00
Balance carried forward 8.78 3.02 439.00
EPS 0.98 0.27
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31-Mar-07 2011-12
actual (in Rs
million)
items as %
of sales
100.00% 5000.00 100.00% 9800
0.31% 24.00 0.48%
100.31% 5024.00 100.48%
88.73% 4680.50 93.61% -11.27%
1.47% 74.50 1.49%
2.30% 123.00 2.46%
92.50% 4878.00 97.56%
7.81% 146.00 2.92%
0.00% 32.50 0.65%
0.00% 11.00 0.22%
0.00% (18.50) -0.37%
0.00% 25.00 0.50%
7.81% 121.00 2.42%
0.00%
0.00% 35.50 0.71%
0.00%
0.00%
0.00% 4.50 0.09%
0.00% 0.00 0.00%
0.00%
0.00% 1.00 0.02%0.00% 0.00 0.00%
7.81% 151.00 3.02%
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estimated
growth
rate 20%
WACC 12%
terminal rat 5%
values in millions Rs
year 2007 2008 2009 2010 2011 2012
revenue 5000 6000 7200 8640 10368 12441.6
Material cost and other expenses 4680.5 4986 5760 6739.2 7879.68 9455.616
Interest 74.5 82.5 105.84 127.008 152.4096 182.8915
Depreciation and amortization 123 129.5 165.6 198.72 238.464 286.1568
sum expenditure 4878 5198 6031.44 7064.928 8270.554 9924.664
taxes 25 30 36 43.2 51.84 62.208
Profit/(Loss) after taxation 97 772 1132.56 1531.872 2045.606 2454.728
change in working capital 0 0
FCF 220 901.5 1298.16 1730.592 2284.07 2740.884
Terminal Value (gordon growth
model) 41113.267
EBITDA 319.5 1014 1440 1900.8 2488.32 2985.984
EV/EBITDA ratio 20
EV 6390 20280 28800 38016 49766.4 59719.68