Wisdom from News श्रुtiप्रgya Consumer Sector Investment Banking Newsletter

A Namkeen Crunch - Glocal Journey

“We bring you an exclusive interview with Mr. Avin Agrawal, Director who has notched up his efforts in transforming Haldiram’s International Pvt. Ltd. from a promoter driven company to a promoter – led and professionally managed company” BOB CAPITAL MARKETS is a wholly owned subsidiary of March 2019 President’s Note

Inside this Edition Foreword

3 FMCG Market Overview Dear Reader,

It gives me immense pleasure to share the inaugural edition of BOBCAPS श्रुti प्रgya, Investment Banking Newsletter covering Consumer segment. श्रुti प्रgya 5 Industry Speak is an attempt at understanding what has transpired in industry during FY18-19. Our endeavour is to publish श्रुti प्रgya as a quarterly newsletter covering the industry deal dynamics, trends that could shape the future of the industry. 9 Company News This newsletter covers the following sub-segments – FMCG, Agri, Food Processing, Beverages, Consumer Durables and Home Decor. Trends such as increasing urbanization, rising rural income and a greater 15 Current Trends penetration of technology are driving consumption and fuelling the growth of consumer sector in . While traditionally this sector has been dominated by unorganized players; however, the entry of foreign and organized players in the past few years has helped in faster evolution and expansion of the entire 20 Key Deals 2018 industry. The competition seems to be increasing with new companies, many of it being start-ups coming out with niche products in the sector challenging bigger companies to expand its product portfolio or risk losing its market share. The sector is garnering interest from Private Equity, Institutional Funds and 22 Case Studies International companies. The Interim Budget 2018-19 initiatives are expected to increase the disposable income in the hands of the common people, especially in the rural area, which 25 Transactions will be beneficial for the sector. We hope that this newsletter is informative and adds value to your business and we look forward to receiving your feedback to help us improvise on our future editions. 32 Capital Expenditure Happy Reading... Warm Regards, 33 Public Market Data Avdhoot Deshpande President, Investment Banking – Equity

39 About BOBCAPS FMCG Market Overview Trends and Growth Drivers

FMCG Revenue Trends (US$ bn) Urban – Rural industry breakup (FY 17)

FMCG is the fourth largest sector in the Indian economy 103.7 The online market was US$ 20bn in 2017 and is forecasted to reach 83.3 US$ 45bn in 2020 68.4

49.0 52.8 45% Total 43.1 35.7 38.8 US$ 52.8bn 31.6 33.3 55% Rural area Urban area

2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F

Growth Drivers

Shift to organized market Increase in penetration ▪ Organised sector growth is expected to grow as the share of ▪ Low penetration levels of branded products in categories like unorganised market in the FMCG sector fell with increased level instant foods indicating a scope for volume growth of brand consciousness among customers ▪ Increasing internet penetration, rising digital maturity along with ▪ Modern retail will augment the growth of organised FMCG sector developing infrastructure has helped boost online transactions ▪ Post GST and demonetisation, modern trade share grew to 10% of overall FMCG revenue

Easy access Rural consumption ▪ Availability of products has become way more easier as internet and ▪ Total rural income, which is currently at around US$ 572bn, is different channels of sales has made the accessibility of desired projected to reach US$ 1.8tn by FY 21. India’s rural per capita product to customers more convenient at required time and place disposable income is estimated to increase at a CAGR of 4.4% to US$ 631 by 2020 ▪ Online grocery stores and online retail stores like Grofers, ▪ Demand for quality goods and services has been going up in rural Flipkart, Amazon making the FMCG products more readily areas of India, on the back of improved distribution channels of available manufacturing and FMCG companies

3 FMCG Market Overview Policy and Regulation Framework

▪ The standard deduction of ₹ 40,000 for transport allowance and reimbursement of miscellaneous Union Budget medical expenses, will increase the disposable income in the hands of the common people 2018-19 ▪ The customs duty on import of products such as shaving and after-shave preparations, fruit juices and vegetable juices, edible oils of vegetable origin are expected to boost the sector

▪ The rate of GST on services lies between 0-18% and on goods lies between 0-28% ▪ Prices of commodities in the FMCG sector, like soaps, shampoo, detergents, biscuits, savoury snacks etc. decreased after the implementation of GST, leading to a 3-8% decrease in prices of goods at modern retail stores Goods and Service ▪ The GST is expected to transform logistics in the FMCG sector into a modern and efficient model as Tax (GST) all major corporations are re-modelling their operations into larger logistics and warehousing ▪ Warehousing cost for FMCG companies is estimated to fall by 25-30% backed by the implementation of the GST. The number of warehouses will decrease from ~50 to ~35 for FMCG companies, ~30 to ~12 for Consumer durable companies and the size of warehouses will become larger

▪ FSB would reduce prices of food grains for Below Poverty Line (BPL) households, allowing them to spend resources on other goods and services, including FMCG products Food Security Bill ▪ This is expected to trigger higher consumption spends, particularly in rural India, which is an important (FSB) and SETU market for most FMCG companies Scheme ▪ Government has initiated Self Employment and Talent Utilisation (SETU) Scheme with an investment of US$ 163.7mn, to boost young entrepreneurs

▪ 51% FDI is approved by government in multi-brand retail to boost the nascent organised retail market FDI and License ▪ 100% FDI in the cash and carry segment and in single-brand retail Rules ▪ Industrial license is not required for almost all food and agro-processing industries, barring certain items such as beer, potable alcohol and wines, cane sugar and hydrogenated animal fats and oils as well as items reserved for exclusive manufacture in the small-scale sector

4 Industry Speak Haldiram’s Foods International Pvt. Ltd.

Namkeen, Sweets, Drinks and more.... in conversation with Avin Agrawal, Director taking us through their journey from Local to Global brand, the fact that their local actions are inextricably linked to a broader global context. Looking at globalized consumerism as a root cause of the acceleration in savoury snacks market, his optimism is underpinned by: ▪ New product mix ▪ Growth in untapped rural India with right distribution channel ▪ Sustainable earnings potential in international business ▪ Potent margin boosters in multiple cost rationalisation initiatives across divisions & geographies

A Namkeen Crunch - Glocal Journey

Facing the Future

▪ Haldiram’s story began seven decades ago in Bikaner, Rajasthan, where it started from a modest namkeen and sweets shop ▪ Shifted its base to Nagpur in 1970s, promoted by 2nd generation of Shri Shiv Kisan Agrawal’s descendants ▪ Offers its products through retail outlets and own restaurants in India (central, southern and western regions) and International markets ▪ The company is headquartered in Nagpur, Maharashtra with additional offices in Mumbai, Bangalore and Chennai

5 Industry Speak A Namkeen Crunch

What is your outlook on Indian savory snacks market and how is Haldiram’s has ample options for snacking; ranging from namkeens, Haldiram’s addressing the changing landscape? confectioneries, biscuits and chocolates to bakery items, western snacks and flavoured beverages. Also, the traditional Indian street food at It has undergone significant change over last two decades, with the entry ‘Haldiram’s Planet Food’ satisfies the craving of snacking for consumers in of numerous international and domestic players with their distinctive between their meals. With increasing consumer awareness about quality brands and flavours. By 2021 the snacks market size is expected to reach and nutrition our focus is on: ~INR 729,875mn. Indians are known for their taste buds due to the varied ▪ Product improvement in terms of variety, taste and ingredients in culture and region-specific flavours, so is the case with snacking. There existing SKUs. We plan to add new products and SKUs shortly has been increasing democratization of preferences and many hitherto ▪ Changing product mix by expanding in western, health food and regional snack items have found nationwide acceptance. The savoury beverages category (Aata cookies, Roasted jowar mix, Multi grain snacks market has been gaining momentum due to penetration of branded chips, Chaas, Jaljira, Aam Panna) snacks in the semi-urban and rural areas where as, branded health snacks ▪ Customer education we do lot of research to develop our unique has witnessed increasing demand from urban areas, which has been recipes, “No Preservations are Added” in all our products, offering traditionally dominated by unbranded or home-made products. The recent high shelf life of 4-9 months. One of our oldest product ‘Moong Dal’ has GST implementation created considerable short-term hiccup, but our always been manufactured keeping ‘Nutrition Fact’ under check with priority was to get in place with GST compliance and also assist the low oil content and rich in proteins. business associates to be compliant. The challenge for us is to achieve the right balance of taste, quality and price. It is the love and trust of our Namkeens contribute ~80% of our revenue. To address new age customer consumers that has got us where we are today. preferences, we are shifting to baked from fried snacks while maintaining the taste and in process of building health foods category. Increase in The business mix for Haldiram’s seems to be changing. You are consumption of snacks is also directly related to different festivals and present in savoury snacks - namkeens category - value market, but that occasions. For example, on the biggest Indian festivals (Diwali, Holi, Onam, is not your focus area. The focus area seems to be on modern snacks, Pongal, etc) it’s the sweets and savouries that are in demand whereas on health and ready to eat food. Can you walk us through your product other social occasions, it’s the combination of traditional savouries and categories and strategy? sweets that attract consumers. Products Flavours SKUs

18 grams and Namkeen Aloo Bhujia, BhujiaSev, KhattaMeetha, Moong Dal, Mixture, PhalhariChiwda, Salted / Masala Peanuts, Nimbu Masala etc. Region specific above

Sweets/ SoanPapdi, Gulab Jamun, MalaiChum , Laddoo, KajuKatli, Kaju Roll, Kalakand, Orange Burfee, Rasgulla, Rasmalai, Milk Cake, etc.. Cookies (Assorted, New flavours to 250 grams and Biscuits Coconut, Atta, Gorus be added above

Modern Western 30 grams and Banana Chips (Black Pepper, Red Chilli, Salted), Poppits (Cheese, Pink Pepper, Salted), Soya Sticks, Taka-Tak (Tomato, Noodle Masala, Chatpata) Snacks flavours above

Frozen Frozen Snacks (Kachori, Samosa, Aloo bonda /Tikki, Puri, Idly, Cutlet). Frozen Curries (Dal Tadka, Dum Aloo, Bhindi Masala, Mutter/Palak Paneer) New flavours to 30 grams and Ready to Eat Frozen Rice (Dum Biryani, Jeera Rice, Peas Rice) be added above

180 ml. 500 ml Drinks Kesar Badam Treat, KhusSharbat, Squash (Kala Khatta, Lemon, Aam Panna, Orange, Pineapple), Thandai, Rose Treat and Strawberry Crush Indian flavours and 1L

6 Industry Speak Glocal Journey

How do you define your customer segment? What is your marketing strategy?

We envisage to cater taste palate of mass customers based in central, We have adopted traditional marketing channels for existing and new western and south India across all age groups - children, young, middle- product launches; mainly print advertisement, TV-ads, radio-ads, bill aged and older adults. Our sales mantra has been - depth in the urban boards, flyers or pamphlets. So, while it is a typical traditional marketing, market (more SKUs, more pack sizes in existing outlets) and width in the the levers engaged are quite different in each region. rural market (reaching more outlets). Rural areas higher disposable income has not yet supported estimated growth due to lack of infrastructure What are the challenges addressed by the company in building the facilities. Volumes have been low in comparison to urban areas; as brand Haldiram’s? majority of demand is generated in smaller SKUs (18-150 grams, Rs 5 as starting price point), whereas urban population purchases medium to large We have addressed various challenges to convert traditional snacks SKUs (150 grams – 1Kg). (Namkeen) from unorganized sector to organized sector Like. i) Namkeens were manufactured by hand by skilled labour followed by frying in Commodity prices have major impact on your business. How do conventional batch fryer. We have standardised the process by adding manage to translate rising price trends to a better margin outlook? automation.” at different stages to maintain product texture and taste; ii) Maintaining consistency in quality; iii) Production limitations - All We have got tailwinds as far as commodities and demands are concerned. equipment’s are made to our specification as there is no standard industry Our efforts are to ensure that we generate the demand by creating configuration to manufacture Indian snacks; iv) Improved product self-life interesting options for consumers. When the commodity prices, mainly and freshness by using unique recipes and innovative packaging to daals, oil, flour and spices, etc are going upwards, we bear the cost and distribute the product widely. don’t pass on the impact to our end customers. What are Haldiram’s core business values? Are you focusing on profits or market share? Our values are based on opportunity seeking, innovation, consumer centric, We have to grow, we have to get share and we have to get profits - this business excellence, transparency and openness, forming the base of our 'golden triangle' does not happen often but our strategy has been to get unique culture and is the guiding force behind our actions. there and we have been achieving our goals.

Our management gives 14 Manufacturing plants in Nagpur tremendous support and special attention to each of our stockist ~106 Super Stockists and distributors like family ~3,100 Distributors We ensure there is no unhealthy competition amongst our distributors 1 million retail outlets

Manufacturing Facilities are ISO 9001, 2200, Kosher FSSAI, EIA certified

7 Industry Speak Facing the Future

With recent ban on plastics and trend towards eco-friendly packaging, next leadership embraces change - The second generation after taking how is your company adapting the changes? the reins of the company, brought in new ideas, enthusiasm and dynamism, charting the next leg of growth; v) Stringent management and We are working to adopt all recyclable and compostable packaging corporate governance - we are building adequate policies, systems, solutions to support the global environmental issues. Our motto is also to procedures, board, financial reporting framework (internal audit, budgeting build cost effective eco-friendly solution by maintaining product freshness, including KPIs with related monitoring controls). shelf life and the products being recognisable at the point of sale. A strong foundation here not only demonstrates that you’ve got a solid There’s a perception that promoters of the company are heavily business model in plan but that you have something that is worth involved in running the day-to-day business. How has been the exporting. Does that make it any easier to expand in international transformation journey been from ‘promoter driven’ to becoming markets after the successes you’re currently enjoying at home? ‘professionally driven’ and what are the right ingredients of this successful transformation? Going global is risky and exciting, challenging, empowering and full of opportunities. There are also hurdles aplenty to overcome. You’ll be put We are aligning our business strategy with transformation objectives, through your paces, delve way beyond your comfort zone and on occasion, improving cost measures, brainstorm on ways to re-engineer processes for venture into the unknown. Launching a brand overseas can be “hugely making the company prepared towards rapid growth. The transformation expensive” and barriers to success – such as persuading distributors and ingredients are i) Empowerment and supporting culture - We are retailers to take on a brand they may not be familiar with – can be plentiful. changing the organization structure, getting the right authority, providing Growing business to appeal to different audiences around the world is no tremendous support, independence and implementing a very strong KPI- longer wishful thinking. Sure, it’s a relative leap into the unknown, but based culture; ii) Building team - First of all, it was important for us to get that’s part of the experience. As long as we are confident that our business the right skilled people to run the business and we are building a very is in good shape, product with taste and value for money; empowers us in a talented team from the industry; iii) Approach to business issues - Even better position to embark on the adventure. today, whenever we approach a business issue, we think about these questions - what is the impact on employees, suppliers, distributors, Yet, with patience – and “perseverance”, as Mr. Avin pointed out – hard business associates? what is the impact on society at large? we believe to work and ambition, you can duplicate your successes at a local level transform in a sustainable manner, the lives of those we touch, by and establish your brand in multiple markets nurturing and empowering them to maximise their true potential; iv) Gen-

“While Haldiram’s continues its surge in market share, under the hood there has been a visible change in the work culture at the 82-year-old namkeen maker, thanks to the company's progressive management”

Disclaimer: The views and opinions expressed in this Interview are those of the Guest and do not necessarily reflect the views, opinion or recommendation of BOBCAPS. Recipients should properly check views expressed by the Guest and may not be utilize in real-world analytic products as they are based only on very limited and dated open source information.

8 Company News

Product Launch September’18 Sundrop enters the cereal market with Choco Popz Aditya Birla Fashion and Retail forays into women’s innerwear and athleisure Sundrop, a known brand under Agro Tech Foods, enters the cereal market with products their latest offering Choco Popz. As per study, pre-lunch snack is becoming a preferred meal among youngsters, on-the-go professionals and kids. Capitalizing Aditya Birla Fashion and Retail (ABFRL) has forayed into the women innerwear and on current trends and prevailing consumption patterns, the company is positioning athleisure market under its Van Heusen brand and plans to open 400 exclusive its product as a breakfast cereal as well as a sweet snack that is healthy for a guilt stores over the next 3-4 years. The company undertook an extensive study to free bite. The new product will be available across modern trade, e-commerce and identify preferences of women and incorporated it into the product designing and local kirana stores. Agro Tech Foods is one of India’s leading food companies with manufacturing. The women range will be manufactured in India and Sri Lanka. The a portfolio that includes ready to cook popcorn, tortilla chips, peanut butter and oil. company has a reach of ~9,000 multi-brand stores for men range which will be now The launch of Choco Popz is the first step towards a broader portfolio in both tapped for the women segment (80% of these outlets sell both segments). It plans breakfast cereals and the chocolates categories in India. to take the distribution network to 13,000 by end of the year and to 30,000 outlets in 4 years. ABFRL started selling the range on e-commerce platform from October Cargill India launched ‘NatureFresh Acti Heart’ cooking oil while setting up its own online brand store from November. The women innerwear Cargill India expanded its edible oil range and launched cooking oil blended equally market is valued at ₹ 160bn (organized ₹ 30bn) while men’s segment is valued at ₹ with Canola and rice bran oils. The company is expanding its offering in health and 90bn (organized ₹ 70bn), with growth rate at 18% and 10% respectively. wellness segment in edible oil category, thus targeting a market share of 10% in this premium segment within 2 years. The health oil segment – comprising of olive Vu Technologies launches 100-inch television for ₹ 2mn oil, canola oil, rice bran oil and blended oil – has a market size of about 3 lakh tonne Television maker Vu Technologies launched a 100-inch television called Vu 100 for annually. Cargill India, part of the US food major Cargill, leads the market in edible ₹ 2mn. The audio-enabled remote of the television can be used as a switch for oil selling cooking oils under Gemini, Leonardo olive oil, NatureFresh, Rath and electrical appliances, enabling the television to be connected to all existing devices Sweekar brands. Cargill’s food business in India offers wide range of food in home. It has capability to play 3D graphic games, pre-loaded applications like ingredients solutions for bakery and food manufacturers through B2B business. YouTube, Hotstar to be operated through voice control and offers Bluetooth November ‘18 connectivity so that existing devices can be seamlessly connected. The company earned revenue of ₹ 7.5bn in FY 18. PepsiCo’s Frito-Lay introduced a line of children’s snacks under the Imagine brand October’18 PepsiCo’s Frito-Lay division has been in the snacks category with Cheetos, Liberty sets foot in the lifestyle segment Tostitos and Doritos helping to boost the company’s earnings. The division has now Liberty shoes forayed into lifestyle retail under the brand “Liberty Lifestyle”, introduced children’s snacks under the Imagine brand, thus expanding in the beginning with the launch of its line of premium fragrances, with investment of snacking segment with heathy treats. Imagine’s Cheese Stars contain no artificial ₹ 100mn. The company spent significant time to launch fine fragrance segment as colours or flavours and are made with real cheese and come in parmesan and white it has a higher value proposition, higher ROI and no inventory issues. The fragrance cheddar varieties. The yogurt crisps come in mixed berry and apple cinnamon category in India is ₹ 20bn and is growing at a rate of 20-30%. The company made flavours. The new children’s snack brand fits in with PepsiCo’s recent acquisitions no investment in the plant and machinery and has tied up with a bottler who is that are repositioning the beverage giant toward a more health-oriented portfolio. doing the complete packaging. Products will be at par with international brands in Kellogg launches HI! Happy Inside – new cereal to support digestive health terms of packaging and quality at an affordable price range ₹ 2,000 – 2,500. The brand is also offering an after-shave for men. The entire product range is made Kellogg introduced a new cereal called HI! Happy Inside, featuring prebiotics, available at select Liberty outlets with high millennial footfall, e-commerce probiotics and fibre. The new product, designed to optimize digestive wellness, platforms and retail outlets. An e-commerce website has been set up to expand its could be an attractive addition to the cereal aisle for health-conscious consumers. digital presence and attract millennials and the younger generation. The cereal comes in simply strawberry, bold blueberry and coconut crunch flavours. The demand for health drinks, dairy, infant food and meat and bakery products could reach US$ 7.8bn by 2022.

9 Note: Company News period Sept 18 - Mar 19 Company News

...Product Launch Sumeru launches India’s first Michelin-star chef frozen food range The ‘Aashirvaad’ brand was set up in 2002 to sell atta and later expanded into other categories such as spices, salt, ghee, milk, and instant mix offerings. The Sumeru, heritage brand of Innovative Foods, launched its signature frozen gourmet brand has a consumer spend of ~₹ 40bn. meals in collaboration with Michelin star chef Alfred Prasad. The range includes four products – millet khichadi, roast chicken, shahi paneer and pepper chicken. January’19 The company wants to disrupt the way consumers perceive and purchase frozen Parag Milk Foods unveils Gulab Jamun, Rasgulla made from pure cow ghee food. The association with chef Alfred Prasad, a first in India within this space, reiterates the company’s commitment to bring new and better experiences in daily Parag forayed into Indian sweets category, by launching two ready-to-eat Indian food consumption. Sumeru plans to continue its focus on product innovation and desserts, Gulab Jamun and Rasgulla, under the brand Gowardhan. They are made R&D as a primary growth driver, strengthen its distribution network to 25,000 retail from pure cow ghee and cow milk. These two products have been introduced in a outlets and grow its domestic market to ~₹ 2.5bn in the 3 years. Sumeru has two small scale with the plan to further strengthen the value-added products category. manufacturing units in Kochi and Chittoor. They are currently available in 1 kg pack sizes priced at ₹ 190. The main markets for Gulab Jamun is West, North and South India, and for Rasgulla is North and East Keventers adds Sundaes to its product portfolio expands in Delhi NCR by India. The company’s cheese category has enabled it to strengthen its value added launching premium ice creams products category and made up two-thirds of its overall revenue in FY 18. The Keventers introduced Sundaes to expand its product portfolio and diversify its Indian sweets category is worth ₹ 70 – 80bn. business into complimentary verticals, thus bringing premium ice cream to the Expansion and Diversification market. It is now available in all outlets across India, priced ₹ 199-249. The ice creams will be served in reusable glass bowls that can be taken home. The September’18 company has also launched 3 outlets of Ice Creamery in Delhi NCR. Keventers, established in 1922 by Edward Keventers, is famed for its milkshakes and is India’s Patanjali forays into dairy, frozen food and bottled water first very own ‘Made in India’ brand. It was acquired by Ram Krishna Dalmia in 1940 Patanjali has tied up with ~56,000 retailers and vendors to supply milk across and was revamped in 2015 by Agastya Dalmia, Aman Arora and Sohrab Sitaram to Delhi-NCR, Mumbai, Pune and Rajasthan. They expect to produce ~1mn litres of align it with modern day consumers. Presently Keventers has over 270+ outlets in cow milk every day in 2019-20. As per company’s estimates 4 lakh litres was India and is rapidly expanding overseas. produced on the first day of operations. It plans to sell dairy products in tetra ITC’s homegrown luxury chocolate brand Fabelle introduces ruby chocolate in packs, along with flavoured milk. The company will procure milk from around 1 lakh India associate farmers and the milk will be sold for ₹ 40 per litre as opposed to ₹ 42 market price. Patanjali is also entering into frozen food market too and would sell Fabelle from ITC unveiled India’s first ever ruby Chocolate - Fabelle’s Ruby frozen greens such as peas, sweet corn, mixed vegetables and french fries. Gianduja. ITC partnered with Barry Callebaut, a globally leading manufacturer of application chocolates and cocoa products, to source the exotic Ruby chocolate Patanjali to set ₹ 6.3bn mega food park in Vizianagaram used in preparing Fabelle’s Ruby Gianduja. The limited edition box of 12 cubes is Patanjali is setting an ₹ 6.3bn mega food park, the Patanjali Food and Herbal Park, priced at ₹ 1,295. Chocolate as a product has gained good traction in popularity in on a 172.8 acre site at Chinnarapalli village in Vizianagaram district of Andhra India where it has ~₹ 90bn market and is also a part of the top 100 largest Pradesh. Core processing facilities including cold storage with blast freezer, chocolate consuming countries globally. grading packing facility for spices and grains and dry warehouse would come up in December’18 the park. An anchor unit for juice extraction with a capacity of 1,500 tpd, would also be set up with an investment of ₹ 452mn. The company is likely to setup juice, ITC enters branded rice market with Sona Masoori biscuit, noodles, frozen vegetables and spices processing units. ITC has made a quiet entry into the packaged rice segment, mainly non-basmati Avenue Supermarts plans to add 60 stores variety, piloting with the ‘Sona Masoori’ variety in Bengaluru under ‘Aashirvaad’ ~ brand, by leveraging its agri-sourcing expertise. Under the pilot, ITC is selling 25 kg Avenue Supermarts is planning to add 50-60 stores over the next 2 years, with packs offering ‘free home delivery’ at a special offer price of ₹ 1,400 per bag. 75% of the stores being located in the existing clusters. The company may also

10 Company News

...Expansion and Diversification consider lease models vs owned stores considering the stiff real estate prices. As range comprising Beard + Facewash, Wax, Oil, After-Shave + After Trim that of June 18, it has 157 stores with retail area of 5mn sq.-ft across Maharashtra, demonstrates multi-functionality and ease of use. The objective is to increase Gujarat, Daman, Andhra Pradesh etc. The expansion pace has picked up with penetration by offering an end to end male grooming solutions. Trusted by 47mn Dmart adding 24 stores in FY 18 compared to 21 stores in FY 17. In FY 18, the households, Cinthol is an ₹ 7.5bn flagship brand present in soaps, deodorants, company’s total revenue grew 26.3% to ₹ 150bn, EBITDA was up 38.8% YoY to talcum powder and shower gels. ₹ 13.4bn while net profit was up 62.6% at ₹ 7.8bn. Segment-wise revenue breakup: October’18 food- 51.5%, non-food FMCG- 20% and general merchandise/apparel - 28.4%. Dmart has best-in-class execution strategy and is amongst few players to crack the Southeast Asia to have a brush with Colgate’s herbal toothpastes grocery retail model on an average since FY 12 with ~24% SSSG (Same Store Sales Colgate Palmolive, which is enhancing its naturals’ portfolio in India, is now Growth). It plans to continue to remain a low-cost retailer and this would be exporting some of its herbal products to Southeast Asia. The company’s Vedshakti achieved by passing on cost savings to consumers. brand, first launched in India under the Cibaca umbrella, is now being exported to V-Mart Retail plans aggressive expansion in UP and Bihar Thailand - Colgate Naturals Panajved, and further expanding the portfolio in the higher price natural segment. Besides Cibaca Vedshakti, Colgate also launched V-Mart Retail after its successful stint in the cluster-based business model, is variants of its Active Salt toothpaste, pushing brands such as Colgate Herbal, planning to adopt an online-offline strategy with new stores and a warehouse, as Colgate Total (charcoal variant) and Colgate Sensitive (with clove oil). The natural the company looks at investing ₹ 1bn in next fiscal year. The company is looking at products are now available in 44 markets and would be rolled out in an additional setting up a new warehouse to service the stores in Uttar Pradesh or Bihar. It has a 32 places - China, Russia, USA, Middle East and all principal markets in the Asia- further target to invest ₹ 3bn to double store count by adding more than 200 stores Pacific region. The size of the overall toothpaste market is ₹ 80bn of which Colgate in the next 5 years. The company has a chain of ~186 stores across 153 cities in 15 has 52.4% market share. As of 2018, the size of the naturals market is estimated at states and union territories with ~5,900 employees. About 75% of stores is in Uttar ₹ 16bn. Pradesh, Uttarakhand, Jharkhand and Bihar. The retail division selling clothes, accessories, footwear and everyday staples, follows a cluster-based model, with Paytm Mall working with 100 FMCG Brands focus on tier II and III geographies. Paytm Mall backed by Alibaba, is working with 100 FMCG brands including enters consumer durables space with Acrelik and , to drive sales through its online-to-offline (O2O) model. The company claims to have registered ~2x growth in FMCG items delivered in the Voltas, partners global home appliances maker Arcelik (Turkish conglomerate KOC first quarter of this year, with 70% orders fulfilled within 48 hours. The partnered group). ₹ 10bn investment will be made to produce and sell refrigerators, washing brands have integrated Paytm Mall QR code on their products. It has played pivotal machines, microwave ovens and dishwashers. The two groups will hold 50% stake role towards driving the consumer engagement and promoting product sales. each in the venture, Voltbek Home Appliances. Products to be branded as Voltas Grocery and FMCG have become important categories for e-commerce companies Beko and will be manufactured in a plant that is coming up in Sanand, Gujarat, till as it drives customer stickiness. Paytm has spent ~US$ 25mn in the first quarter of then the products will be imported from China, Turkey and Thailand. The company this year on joint marketing activities with the FMCG brands to trigger sales. It has also plans to foray into African and Asian markets, with products either under its been aggressive on its O2O model and claims to contribute 30% of the company’s own brand, focusing mainly on entry-level appliances like direct cool refrigerators revenue. While Flipkart recently launched its grocery vertical Supermarts, Amazon and semi-automatic washing machines. The company tied up with Future Supply India sells grocery via multiple channels such as Amazon Pantry and Prime Now. Chain Solutions as its logistics partner. The company has recorded revenues of ₹ 63bn in FY 18. Jubilant begins test-run of Chinese fast food venture Jubilant Foodworks, the operator of Domino’s Pizza and Dunkin’ Donuts in India, Godrej Consumer launches Cinthol’s new male grooming range has commenced Chinese fast food venture, its third restaurant brand in the Cinthol has forayed into ₹ 55bn male grooming market by launching multi-benefit country. The ‘Chinese Kitchen’ is the working name of the food chain’s first and functionally superior 8 new variants for face, body, hair and beard applications. independent venture and is currently in test-run stage at a store in New Delhi, It is estimated that men in the age group of 18-25 spend more money and seek based on mass-priced Chinese cuisine. Jubilant is leveraging its backend synergies simple and multi-functional products that saves time. This product range meets on the same and this will be its first home-grown brand. Unlike other quick service this requirement with first of its kind Cinthol Shave + Facewash and entire beard

11 Company News

...Expansion and Diversification restaurants, one can operate pizza and Chinese models at 27-30% of the food cost master franchisee for north and east India. The company has partnered with Muvi and meet per-head consumer spend expectations. The company is seeking to Concepts Restaurants, its master franchise for south and west India, to open 50 capture a niche in a fast-growing segment that has only few national operators. restaurants over the next 3 years across 10 major cities in south and west India with focus on Bengaluru, Hyderabad and Pune, followed by Mumbai, Ahmedabad and Stovekraft expands into premium small appliances with Black+Decker Cochin. Pitapit was founded in 1995 in Ontario, Canada and now has over 650 Stovekraft is focusing on the premium segment with its licensed brand restaurants across 13 countries. The company offers customized, healthy and Black+Decker by rolling out products like blenders and juicers, breakfast nutritious Pita sandwiches and a healthy alternative to high carb, fat and fast food. appliances, water heaters and small domestic appliances. The company entered Mondelez launched state-of-art research, development and quality centre in into a partnership with US-based Black and Decker in 2017. Stovekraft’s flagship Mumbai brands Pigeon and Gilma contribute 85% to sales, with Pigeon alone contributing 80% to overall sales operating in segments like free standing hobs, LPG gas stoves, Mondelez has launched a state-of-art research, development and quality centre in induction cooktops and non-stick cookware and is sold in twelve countries. In FY Mumbai that would exclusively cater to R&D activities in the chocolate and beverage 18, revenue was ₹ 5.3bn (15% from online products). New products like fastener segment. The research facility has come up with an investment of US$ 15mn and is free glass cooktops with Pigeon Infinity, die-cast non-stick cookware called Crest, spread across more than 12,000sq.m. It houses over 150 specialists, including food stainless steel pressure cookers under the Pigeon portfolio and a complete range of scientists, engineers and analytical chemists. This is only second such research products under Black + Decker was launched. The company also manufactures centre after Bournville in the U.K. that caters to chocolates. Mondelez has 10 such products for leading brands in North America and Europe; clientele includes centres spread across Brazil. Poland, Singapore, France and Germany focusing on Walmart, Big Lots and Belk. various product segments. The facility will work closely on innovation with sites across the Asia-Pacific, Middle East West Asia and Africa (AMEA) region and global November’18 manufacturing network. The latest centre being set up in India highlights the fact Marico is using Automation and Artificial Intelligence(AI) to enhance its that it is one of the most important markets for the global major, which is valued at business prospects and that of its distributors more than US$ 61bn. Mondelez has more than 60% market share in Indian chocolate segment and has recorded the highest growth in the segment. The upgraded version Marico’s leading distributor, serving 6,000 outlets in western Mumbai, had to is a big step in the company’s strategy to invest US$ 65mn in developing a global routinely stock inventory for 4-5 days. A 25-person sales team would manually network of state-of-the art technical hubs across the world. book orders and punch in the computer’s software system taking 3-4 hours. But now with Personal Digital Assistants the entire process takes only 3-4 minutes. Tata Global Beverages plans to set a new tea packaging unit in Odisha This has helped the distributor to reduce inventory day to just 1 day and trim the Tata Global Beverages is setting up a new tea packaging unit at SEZ in staff to 20 by eliminating data entry operators. Using geotagging, part of integrated Gopalpur industry park, Odisha with an investment of ₹ 1bn. The company entered sales route optimization software, the agency can ensure that their sales use best into a Letter of Intent (LOI) with Tata Steel SEZ, a wholly-owned subsidiary of Tata routes to serve numerous outlets. Marico is moving away from just getting new Steel. The unit will be used for the operating of manufacturing and storage of tea apps to an age of getting into analytics—a stage where the world is moving beyond and will also be used as warehouse for all the products of the company, its descriptive things to diagnostics, predictive and to prescriptive. For instance, a subsidiaries, associates and JV companies. The estimated scalable capacity of the distributor could be facing financial trouble and potentially drop out of business, it new unit is expected to be 36mn kgs per annum and will be operational by 2020, post uses AI to seek patterns and predict behaviours. Marico’s exclusive launches with all statutory and regulatory clearances. e-commerce companies are helping in “predictive and prescriptive analytics" task by leveraging the real-time insights that online companies provide and run a Chai Point to start hybrid pay model, eyes expansion with BoxC campaign for only those consumers who put a product in the online shopping cart Chai Point is set to introduce a hybrid on-demand payment model for integration in but did not buy it eventually. the tea-chain’s beverage dispenser model called BoxC, currently operational across PitaPit enters south, west Indian market through MuVi concept restaurants 2,000 corporate houses and office premises in eight cities. The firm has partnered with Paytm to have a dual payment system for BoxC on a contractual basis with the PitaPit, after making its name in the north is all set to enter south Indian market corporate house or employer for a minimum amount and on-demand, where it can with its first restaurant in a new mall at Hyderabad. It has its presence in north scale through payments by consumers directly. The model allows the beverage India with 11 restaurants operated in partnership with Mentor Hospitality, its dispenser model BoxC to feature a customisable contractual, digitised payment and

12 Company News

...Expansion and Diversification invoicing facility. Chai Point’s big bet on driving its BoxC business is because the Heritage Foods launches two healthy Lassies ‘Ragi Lassi and Sabja Lassi’ model helps boost penetration in larger metros with a sizeable white collared Heritage Foods launched new range of health drinks of two new variants of Lassi of market which is the firm’s core target market. It sells about 6 lakh cups daily of Ragi and Sabja, a major step towards strengthening the company’s value-added which 4 lakh cups are contributed by BoxC dispenser mechanism alone. Chai Point products. Both the variants drinks have high calcium content and would be available ~ revenue contribution from BoxC 38-40%, delivery 25% and offline retail cafes 35%. in Heritage Parlours, Modern Trade Outlets and General Trade outlets. Livspace expanding in Pune and Chennai Dalmia Bharat to roll out fast-curing cement, first of its kind in the world Home Interiors platform Livspace is expanding its geographical presence with Dalmia Bharat Cement has come up with a chemically modified variant of cement launches in Pune and Chennai by investing ₹ 400mn. This will increase company’s which reduces the curing time from 3-4 weeks to 3 days. It will benefit infrastructure presence to 9 cities across India. The company is launching 200 designers in both companies and large-scale housing constructions to reduce completion time. It has cities and will double this by Mar 19. It is looking to deliver 100 homes in each city already been piloted in the taxiway at Chennai airport and is awaiting clearance from and is expected to achieve unit-economics profitability in these cities over 24-36 the patent authorities. The company has also rolled out a surface finish solution, months. The company sees great potential in the renovation market in Chennai as similar to wall putty, which can be applied on both wall and ceiling of a construction the city has a large number of units that are over 10 years old. The customers here, and can save up to 15% of the total painting cost. Over the past couple of years, the especially the new generation, are looking to transform their homes to reflect a company has spent ~₹ 1bn for research and development of this cement and allied more contemporary aesthetic. In Pune, the company is the only organized player in products besides putting up the production lines at 4mtpa Dalmiapuram plant in the interiors sector. It is setting up design centres in both cities, which will allow Tamil Nadu, the 2.5mtpa in Belgaum and the 4mtpa in Rajgangpur in Odisha. customers to get an actual feel of the products. Livspace operates primarily in three segments – new home interiors, interiors for rental units and renovation. The Gujarat Ambuja Exports project expansion model brings together the customer, interior designer and seller together on the Gujarat Ambuja decided to put up a greenfield plant at Malda, West Bengal for 1,000 same platform, simplifying the interior design process. Livspace will be using US$ tpd maize processing at an estimated cost of ₹ 3bn. The company has been allotted 70mn raised from TPG Growth and Goldman Sachs in September primarily towards land admeasuring 66.8acres. The project shall be executed within two years. With funding its expansion into new cities. this initiative, the company will have pan India manufacturing and marketing Nestlé India introduces India’s first Baked Noodles – Maggi Nutri-licious presence. The plant will manufacture starch, liquid glucose and sorbitol to cater the eastern part of India and export to markets in Bangladesh and South East Asian Nestlé introduced India’s first baked noodles – Maggi Nutri-Licious, using its global countries. The second phase of the company’s Chalisgaon, Maharashtra maize good expertise and understanding of local taste preferences offering a wholesome processing plant will be completed in Q4 FY 19. The first phase started commercial proposition. This is in continuation with its ongoing direction of “Kuch Acha Pakk production in Mar18 and is currently operating at 80% capacity utilization. Raha Hai”. Core business strategy is product innovation, renovation and has made some important interventions with the brand, committing to enhance the nutrition January’19 profile of products by adding ingredients and using their proprietary technology. Hindustan Sanitaryware and Industries Ltd (HSIL) expands in kitchen ensemble The objective is to offer more choices to the consumers who are seeking options for their evolving tastes. It is now available across leading supermarkets and mom- HSIL aims to strategically expand into consumer product space through the kitchen and-pop stores in Bangalore, Chennai, Hyderabad and Kochi. appliances category under the brand Hindware Kitchen Ensemble. For further expansion of the consumer products, HSIL also entered into an association with December’18 Groupe Atlantic of France bringing Hindware Atlantic water heaters. It has also Heritage Foods launches its first ‘Our Store’ in Andhra Pradesh entered into air coolers with brand name - Hindware Snowcrest, and into purifying solutions with the brand name ‘Moonbow’ offering range of well-designed air Heritage Foods opened its first ‘Our Store’ in Penamaluru and will expand their purifiers and water purifiers. HSIL entered the consumer business in 2015 and has a presence through this format. Heritage Foods has taken the lead in making growing 70% CAGR since last 3 years. Aim of this business was to leverage brand consumers life easy by making available the dairy products in one place. It has Hindware with ~60mn consumers connected, The company plans to invest on brand been following different models to distribute products range, like Heritage building and product development. 10 patents have been registered which have been Distribution Centre (HDC), company owned franchisee run model, Heritage Parlour processed by intensive R&D centre in . The company booked a total revenue (HP) and Heritage Select Store (HSS), a shop in shop model. of ₹ 22.5bn in FY 18 with consumer business contributing ₹ 2.1 bn (9%)..

13 Company News

...Expansion and Diversification February’19 for the company’s growth of flavours businesses in India. Givaudan claims to have 25% share of the world’s flavours and fragrance market and 27% share of the Indian Radico Khaitan launched three premium products market. It sources about 50% of its ingredients required for Indian operations locally. Radico Khaitan launched three premium brands—8PM Black Whisky, Morpheus KPR Mill plans to expand garment facility Black Brandy and Jaisalmer Indian Craft Gin (UK and USA)—in the first six months of this financial year. The spirit sector in India was hit in the last couple of years KPR Mill is planning to add 10mn garment capacity leading to a total garment due to demonetisation, state-level prohibitions, ban on sale of liquor on national capacity of 115mn. The company has undertaken this brownfield expansion to cater highways and the implementation of the goods and services tax. Yet, Radico to the rising demand of its garments. Recently, it has also started commercial Khaitan managed to pare its overall debt by nearly 50% to ₹ 3.8bn. All this has led production of garments in Ethiopia. The company is the largest knitted garment to a double-digit growth in volume growth and healthy cash generation. manufacturer and exporter to Europe, Australia and th US, deriving 59% revenue (₹ 25bn in FY 18) from the domestic marketing and remaining from exports. to foray into refrigerators and plans to set up greenfield unit for Lloyd air conditioners Hatsun Agro sets up 2,500th retail outlet in Kolhapur, Maharashtra Havells India is looking to strengthen its product portfolio by foraying into Company’s retail philosophy of freshness and quality, all the outlets provide unique refrigerators segment under Lloyd brand. The company has earmarked investment customer experience, service consistency, product availability and better ambience. of ₹ 10bn, funded through internal accruals of which ~₹ 4bn will go towards setting The outlets are operated by well-trained independent franchisees. In addition to the up a greenfield unit for Lloyd air conditioners in Rajasthan with a capacity of 6 lakh entire range of Arun Ice Creams, the outlets will selectively retail other products ACs a year and the remaining will be spent on brownfield expansions in several such as Arokya Milk, Hatsun - Curd, paneer, milk beverage, yoghurt tops, yoghurt Havells India plants across the country. The company will also invest ~₹ 4bn in shakes, ghee, butter, skimmed milk powder and dairy whitener in various markets. brand building exercise. Havells achieved a turnover of ₹ 82.6bn and EBITDA of Plans to set up new outlets in Maharashtra, Kerala, Odisha, Chhattisgarh and ₹ 10.5bn of in FY 18. expand its presence in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Puducherry and Goa. More women consuming alcohol in India is great news for Absolut March’19 When women have money and start going out, spirits consumption becomes egalitarian, more unisex and inclusive, that’s when brands like Absolut tend to take Reckitt Benckiser goes digital for premium products off. Absolut owned by the world’s second-largest distiller Pernod Ricard, has been Reckitt Benkiser(RB) has started its own direct-to-consumer e-commerce operation growing in double digits in India. Pernod Ricard also makes Chivas Regal Scotch, to sell some of its premium products in India through brand-specific platforms Royal Stag whisky and Havana club rum, reported a sale of ₹ 156.9bn in India for joining select firms with own sales portals, such as Mondelez and ITC. RB has signed FY 18 with a net profit of ₹ 12.3bn. Absolut’s biggest market is U.S. with India a deal with Gurgaon-based logistics and supply chain firm Cogent Transware for ranking amongst its top 20 markets. The liquor market is highly regulated in India, backend partnership. Cogent Transware follows a ‘hybrid logistics’ model, whereby it with pricing being a state subject, multiple taxation and prohibition in states such will buy products from RB, store them in their tech-driven warehouses that enable Gujarat and Bihar. The overall Indian vodka market is 7.4mn cases of 9 litre each round the clock monitoring, compliance, and then deliver the products to consumers and Absolut has 78.7% share of the premium vodka segment. According to WHO when an order is placed. The model will reduce working capital, order management report (Sept 18), alcohol consumption in India increased from 2.4 litre in 2005 to 5.7 and include single-point payment collection. litre in 2016, per capita consumption 9.4 litre - men and 1.7 litre - women. Embassy of Vietnam signs up BLS International (BLS) Givaudan expands India facility INR 4bn BLS has been signed up by the Embassy of Vietnam to accept visa applications in Givaudan is expanding its manufacturing facility in India (accounts 4% of global India and it is the only company to be authorized to handle the ‘Attestation and sales) with an investment of INR 4bn. The new 40,000 sqm facility will enable the Legalization Services’ for the Embassy. Company is opening 15 centres across India company to meet the growing demand, complimenting the company’s existing plant to facilitate the attestation and legalization services for the Embassy of Vietnam in Daman and strengthen its capabilities in liquids compounding, powder blending, exclusively. This addition to the already robust portfolio of Consular and Citizen emulsions, process flavours and spray drying for the India, Nepal and Bangladesh Services offered by BLS reflects the company’s focus on efficiency and continuous markets. Bakery products and snacking movement are the two key growth drivers excellence in its operations. BLS has been gearing up to provide innovative solutions to governments and citizens across the global.

14 Current Trends Online and Brick-Mortar

“Both online and Brick-mortar formats can continue together as the retail companies will try to reach out to consumers both through physical stores as well as online”

▪ With changing demographic profile of India, rapid urbanisation, spread of Government Policies digital payments and increasing purchasing power, the retail sector is ▪ Government has taken steps to support the sector by 100% FDI in online poised for quantum leap retail of goods and services through the automatic route ▪ Over last two decades the Indian retail industry has seen significant changes, evolving rapidly from traditional shops to large multi-format ▪ The governments move to provide a single policy framework for retail, stores offering global experience FMCG, e-commerce in order to offer a level playing field to stakeholders ▪ The growth in online retail is making India world’s fastest growing e- Policy changes and Impact on E-commerce, December 19 commerce market driven by robust investment in the sector and rapid ▪ The norms for companies offering discounts has been tightened. As a increase in the number of internet users result, online retailers cannot use their foreign capital to fund high Estimated market shares of the discounts in US$ bn FY 17 FY 20 retail formats by 2021 ▪ E-commerce entities that operate a market place model will not be allowed Consumer to exercise ownership or control over the inventory 1,824 3,600 E-Commerce Retail Traditional Expenditure ▪ Any ownership or control over the inventory will convert the business into (7%) Retail Online FMCG Market 20 45 (75%) an inventory-based model ▪ The inventory of a vendor will be deemed to be controlled by an e- Online Consumers 90 200 commerce market place entity if more than 25% of the vendor’s purchases (mn) are made through the marketplace or its group entities Organized Retail ▪ No seller can sell its products exclusively on any market place platform and (18%) that all vendors on the e-commerce platform should be provided services in a fair and non-discriminatory ▪ Amazon, Flipkart and Paytm funded by FDI cannot exercise any control over Major Deals the vendors or pricing strategy ▪ The revised guidelines are expected to benefit local entities such as Roadmap Will open and manage ▪ Given the changing scenario of Indian retail industry and growth 77% stake Deal value 5% stake Deal value the brand stores as a opportunities, domestic and foreign companies will look for investment acquired US$ 16bn acquired ₹ 1.8bn master franchisee opportunities to expand business

▪ High demand for superior for customer experience and penetration of big brands into smaller towns and cities will help business to grow and move from unorganised to organised business Plans to roll out online shopping ▪ Companies having coordinated strategy for “brick and mortar “and online 100% stake Deal value platforms to 1.2 million retailers and sales might have an edge considering psychology of Indian consumers to see acquired ₹ 42bn store owners in Gujarat and feel products before buying

15 Current Trends Eco-friendly Food Packaging

Current Scenario CompaniesCompanies Manufacturingmanufacturing Ecoeco--friendlyfriendly Foodfood packagingPackaging ▪ Indian cities generate ~26,000 tonnes of plastic waste every day, ~66% is mixed waste – polybags and pouches being used to pack foods ▪ The recycling rate in India is considerably higher than the global average of 14%, there are still over 6,100 tonnes of plastic which are either landfilled or end-up polluting streams or groundwater resources ▪ The plastic ban in Mumbai brought forward not only the glaring issue of eco- friendly packaging in forefront, but also urged various restaurants and food delivery companies to re-visit their packaging ideas ▪ About 25 Indian states/union territories now have some form of ban on polythene carry bags and other packaging materials ▪ To minimize the impact of the ban on businesses, exemptions are being offered which vary from state to state InitiativesInitiatives Takentaken

▪ Starbucks to stop using disposable plastic straws by 2020, eliminating ~1bn straws a year ▪ The company, with 28,000 stores worldwide, will use recyclable strawless lids on most of its iced drinks EcoEco--friendlyfriendly Foodfood packagingPackaging ▪ Swiggy launched ‘Swiggy Packaging Assist’ for its restaurant partners access a range of innovative packaging solutions like using packaging materials like paper and aluminium, which are then recycled ▪ Introduced meal trays made of cornstarch and bagasse at an economic rate. ▪ Sellers in the marketplace will offer restaurants trade discounts of up to 5% to aid hassle-free onboarding. The packaging material will be Sugarcane bagasse products delivered in 3-4 working days and payments can be made on delivery ▪ Ecoware and Pappco are the pioneers in manufacturing of these products on a ▪ Rolled out in Bengaluru, Mumbai and Pune and is expected to be large scale. Advantage being the raw material can be moulded into any shape accessible to rest of the cities in some time thus catering to customized large orders ▪ It is a hit with various well-known cafes, food chains and airport food outlets ▪ Zomato is encouraging its subscribers to go for its new “opt out of across the country cutlery” feature. Its delivery partners use insulated, specially designed bags that keep food fresh without any additional packaging Areca leaf cutlery – It is light-weight, easy to use and throw and inexpensive (₹ 4- layers 10 per plate). Eco Palm Leaf Plates, Verterra Dinnerware, The Magnus, Ecovision are some of the leading manufacturers ▪ Hardcastle Restaurants, master franchise for McDonald’s, in West and South India, claims to have transitioned plastic to eco-friendly and biodegradable alternatives for guest packaging Rice husk tableware – One of the most durable forms of biodegradable cutlery, it is ▪ McDonald’s now gives customers wooden cutlery, superior quality re-usable but expensive, with price range of ₹ 600-800 per plate paper cups and straws made of either paper or corn starch. It replaced products in its restaurants across key cities in Maharashtra and Karnataka Starch granule products – Made out of potato and tapioca starch granules along ▪ The company is working on alternative solutions for its delivery with other biomass, these products look like plastic but are 100% biodegradable segment to ensure safe and fresh food is delivered without spillage 16 Current Trends Kumbh Mela

TRIVENI SANGAM | Swachh Kumbh, Surakshit Kumbh (Clean Kumbh, Secure Kumbh) 50 ~200mn ₹ 42bn ₹ 1.26tn 600K Days Visitors Budget UP Rev. Generation Employment generation 2,500 5,000 199 110K 40K Allotted Land Religious Projects in 16 Toilets LED lamp (ha) Organisation govt. departments Installation 116 20K 45 1,000 Head of missions from 72 countries Make-shift towers to CCTV for better Construction of Dustbin tippers to participated during the Kumbh's provide 4G banking monitoring and internal roads collect waste inauguration services mitigating risk Brands using Kumbh Mela as an Advertising Platform Brands with Sales-oriented Stalls or just Displays

Brands using Immersive Programs to gain Consumer Attention

Brand Sampling Products

17 Current Trends Home Decor

Share of the Thesis Current Scenario Outlook unorganised

Pick-up in demand led by government projects Weak demand scenario, increased Gradual recovery in demand, slower pace 45-50% and thrust on low cost housing, and shift from competitive intensity, and reverse shift of shift from unorganised to organised, and

Tiles unorganised to organised from unorganised to organised continued competitive scenario

Pick-up in demand led by improvement in reality While there is no pick-up in demand for Tighter implementation of Eway bill and sector, strong opportunities in the medium/mass plywood, medium/mass category plywood GST will further expedite the shift towards 70-75% category plywood segment riding shift in market for have been growing at a healthy rate led organised players share from unorganised to organised players by shift from unorganised to organised Plywood players

Pick-up in demand led by improvement in reality Increased competitive intensity in domestic Weaker ₹ to push exports with gradual sector and healthy exports demand will drive as well as exports market impacting recovery in domestic demand. Price 40-45% growth in laminates industry volume growth and ₹ depreciation is increase should help companies improve

impacting margins margins Laminates Medium density fibrewood(MDF) demand was Increased competitive intensity led to ₹ to push exports, aid in faster replacement expected to grow at 15-20% led by deepening higher than expected pressure on of imports and ease domestic oversupply 5-10% penetration and rising demand for readymade realizations, margins and returns of MDF scenario MDF furniture players

The segment was expected to grow at one of the Although demand is increasing at healthy Gradual recovery in demand and continued fastest rates led by substantial investments in pace, higher competitive intensity has competitive scenario 40-45% irrigation and urban infrastructure. In the pipes & added pressure on margins

Pipes fittings space, CPVC and HDPE are expected to be the fastest-growing sub-segments

Moving further towards asset-light business model GPCB promptly acts on NGT direction; shutdown on all coal gasifiers

▪ The home décor industry boasts a high asset turnover of 2–4x on account of ▪ Gujarat Pollution Control Board (GPCB) has ordered Morbi lndustrial Green its reach and brand equity Environmental Services Co. Op. Soc. Ltd. to comply with the National Green Tribunal order with immediate effect and report to the board within seven ▪ The tile, sanitaryware and plywood companies are particularly focusing on days. outsourcing and making their business asset-light, which would allow them to focus on branding and distribution ▪ NGT order (dated Mar 19) directing GPCB to take immediate steps to dismantle all coal gasifiers industries operating and switch over to non-coal ▪ While outsourcing opportunities for tile companies have increased due to gasifiers or PNG at Morbi, Gujarat oversupply at Morbi (in Gujarat), a structural shift towards mid-end plywood is leading to higher outsourcing opportunities for plywood players ▪ In case of any failure to comply with the said order, the board would take stringent actions

▪ This development to significantly impact unorganised Morbi players in the near term. Branded players on the other hand are likely to sharpen their competitiveness aided by expected improvement in compliance by Morbi and reduction in pricing differential between branded and unbranded players

18 Current Trends Raw Materials Price Trends

Spot Price Price Change (%) YoY Price Change (%) Commodity Unit (₹) 1M 3M 6M 12M 4Q 19 3Q 19 2Q 19 1Q 19 Food Raw Material Tea - World Avg. US$/MT 2,550 -3 -7 -12 -18 -14 -17 -14 -6 Copra - India ₹/100KG 14,580 -4 12 21 12 -20 -20 16 43 Kardi (Safflower) Oil ₹/10KG 1,500 -1 23 23 6 11 4 4 25 Sugar ₹/Quintal 3,415 2 2 -4 1 -12 -12 -12 50 Crude Palm Oil ₹/10KG 515 -6 3 -13 2 -4 -4 -4 72 Tea - All India ₹/KG 213 5 5 16 -5 17 6 7 1 Coffee Robusta - Intl. US cents/Pound 83 1 -4 1 -11 -11 -12 -20 -12 Coffee Arabica - Intl. US cents/Pound 132 -5 -8 1 -9 -6 -3 -15 -6 Wheat ₹/Quintal 2,060 -2 0 2 -1 13 13 13 88 RBD Palmolein Kakinada ₹/10KG 571 -7 10 -6 6 -26 -26 -26 24 Barley ₹/Quintal 1,928 0 1 17 31 31 26 12 -2 Rice bran Oil ₹/10KG 450 6 17 25 0 1 10 17 14 Sunflower Oil ₹/10KG 760 1 -2 -4 10 6 14 22 19 Skimmed milk powder ₹/KG 205 0 17 21 17 19 -4 -21 -28 Maize ₹/Quintal 1,993 -1 21 53 59 58 17 -22 -21 Castor Seed ₹/Quintal 5,294 1 3 13 1 13 13 13 NA Linseed Oil ₹/MT 81,000 -4 -5 -10 -5 -8 -8 -8 55 Cocoa Bean US$/MT 2,247 0 -8 7 -8 2 2 2 1 Coconut Oil ₹/Quintal 15,600 13 4 -9 -20 25 25 25 200 Non-Food Raw Material Palmy Fatty Acid Distillates US$/MT 459 10 44 -6 -27 31 26 12 -2 Liquid Paraffin ₹/Liter 44 -12 -20 -9 -11 -2 21 23 12 Soda Ash ₹/50KG 1,370 4 6 -6 6 7 7 7 40 Linear Alkyl Benzene ₹/KG 101 -8 -16 -9 -3 0 15 19 11 High Density Polyethylene ₹/KG 103 -6 -19 -19 -3 -3 24 28 20 Crude – Brent US$/Barrel 67 2 25 -17 24 30 30 30 57 Mentha Oil ₹/KG 1680 5 14 NA 12 -4 -4 -4 191 Titanium Oxide – India ₹/KG 274 0 -2 4 12 13 14 6 -5 Vinyl Acetate Monomer – China US$/MT 1,022 -13 -10 -22 -18 -11 6 30 44 Styrene – domestic US$/MT 1,060 4 3 -27 -27 -26 -9 14 24 Caustic Soda US$/MT 606 -4 -11 -17 -8 12 12 12 -43 Gold India ₹/ 10 g 31,918 -4 1 5 1 11 11 11 NA Silver India ₹/1 KG 37,712 -5 -1 2 -1 -10 -10 -10 75 19 Source: Bloomberg Prices as on 28 March, 2019 Key Deals 2018 IPO, PE and M&A

July 2018 April 2018 February 2018

₹ 11.25bn ~25.6% ~₹ 10.4bn ~23.6% ~₹ 9.4bn ~17.9%

Initial Public Offering Initial Public Offering Initial Public Offering ▪ Company is engaged in manufacturing and ▪ Company owns and operates a chain of hotels ▪ The company product range include cosmetic marketing women’s wear under the brand under the brand name Lemon tree premium, ingredients, including active ingredients, name W. The firm operation both offline and Lemon tree hotels, It caters to the segment like ultraviolet protection and functional products online stores. upscale for premium and luxuries hotels ▪ The company serves skin care, hair care, oral ▪ The entire IPO proceeds will be remitted to the ▪ The entire IPO proceeds will be remitted to the care, body wash, sun care, household cleaners selling shareholders selling shareholders and fabric care segments ▪ The company was founded in 1980 and is based in Mumbai, Maharashtra ▪ The entire IPO proceeds will be remitted to the selling shareholders

January 2018 December 2018 November 2018

~₹ 6.0bn ~22.2% ~₹ 15.0bn ₹ 79.5bn 98.4% Joint Venture Initial Public Offering Acquisition ▪ Warburg to form the JV through its affiliate Ultratech to receive 6.25mt plant in Rajasthan ▪ Company is engaged in manufacturing of ▪ Magnolia Grove Investment Ltd. electronic components. It offers room air that comprises of Integrated cement unit with The JV company, Hamstede Living Pvt. Ltd. will conditioners and air conditioners components ▪ capacity of 4.85mt and 1.4mt split grinding unit construct, acquire, develop, operate and lease like heat exchanger, copper tubing, electric ▪ UltraTech has now reached a capacity of short and long stay real estate projects with ~ motors etc. The company was incorporated in 116MT and has further strengthened its primary focus on student housing and co-living 1990 and is based in Gurgaon, . presence in western market of Rajasthan working professionals ▪ The proceeds would be used for prepayment or Shareholding Pattern (Post-Transaction) repayment of all or portion of certain Warburg Pincus: 68% borrowings availed by the company and for Lemon Tree Hotels: 30% general corporate purposes Mr. Patanjali Keswani (Lemon tree Chairman): 2%

20 Key Deals 2018 IPO, PE and M&A

February 2019 December 2018 June 2018

₹ 1.8bn 77.6% ₹ 70.6bn ₹ 16.9bn ~6%

PE Investment PE Investment PE Investment ▪ True North is investing through share purchase ▪ The proceeds will be used to ▪ PremjiInvest bought the stake from Cedar agreement followed by an open offer ▪ Onboard food brands, hire talent for its Support Services, an affiliate of Bharti engineering vertical and ramp up its Enterprises technology backbone and its cloud kitchen ▪ By way of consideration, Bharti Enterprises vertical gave ₹ 5.7bn of its proceeds to Future Retail by ▪ Address gaps in its supply through way of a clawback provision delivery-only kitchens under its “Access” initiative or restaurant partners ▪ Focus on building the next generation AI- drive platform for hyperlocal discovery and on demand delivery

May 2018 April 2018

~ ₹ 52.5bn 100% ₹ 12bn 80%

PE Investment PE Investment ▪ The proceeds will be used to expanding the ▪ Deal mix of primary infusion and secondary company’s presence and adding to its product transfer assortment and maximizing supply chain ▪ It marks a complete buyout which would be efficiency executed in tranches

21 Case Study GSK giving a Boost to HUL in an all equity merger

“All-stock mergers are emerging as the preferred route for high-value and high-multiple M&A transactions in India”

Hindustan Unilever Limited (HUL) GlaxoSmithKline Consumer Healthcare (GSK CH) ▪ Incorporated in 1933, HUL is the subsidiary of Unilever, one of ▪ One of the largest players in Health food & drinks industry in India. the world’s leading supplier of Food, Homecare, Personal Care The company is an Indian associate of GlaxoSmithKline PLC UK and refreshments segment. Unilever has over 67% shareholding one of the largest consumer health care companies in HUL ▪ The company’s principal activities are to manufacture and ▪ Product segment: distribute a wide range of healthcare food, drugs pharmaceutical ✓ Personal Care products include products in category of and dairy products oral care, skin care, soaps, hair care, talcum powder and colour cosmetics ▪ The products include malted milk food, malted foods, biscuits, energy and protein foods, milk powder, ghee, milk fluids and milk ✓ Home care includes detergent bards and detergent powders cream ✓ Foods and refreshments ▪ The manufacturing plants are located in Nabha in Punjab, ✓ Water purifier Pureit Rajahmundry in Andhra Pradesh and Sonepat in Haryana ▪ Listed on both NSE and BSE with market cap of ₹ 3,646 bn* ▪ Listed on both NSE and BSE with market cap of ₹ 302bn*

Financial Snapshot (in ₹ bn) Deal Contours Synergy for HUL Particulars HUL GSK Combined GSK is of the key players in the food and ▪ GSK CH is valued at ₹ 317bn ▪ refreshment (F&R) segment with iconic brands ▪ The merger of GSK CH with HUL will be Net Worth 70.7 34.8 105.6 like “Horlicks” and “Boost” and comprises of based on exchange ratio of 4.39 HUL Revenue 357.8 46.3 404.2 shares for each GSK share wide portfolio. To build a sustainable and profitable F&R business GSK and HUL decided to ▪ GSK’s lead brand Horlicks will be acquired EBITDA 77.8 11.4 89.2 by Unilever i.e. the parent company of HUL undertake amalgamation of GSK’s business with HUL EBIT 73.1 10.8 83.8 ▪ All GSK’s shareholders will be public ▪ Significant synergies through shareholders of HUL post-merger PAT 52.4 7.0 59.4 ▪ There is a dilution in the promoter’s ✓ Supply Chain ✓ Drive penetration equity by 5.28%. Simultaneously there is opportunities ✓ Upgrade and EPS (in ₹) 24.2 166.5 25.0 ✓ Operational premiumize also an increase in public shareholding, This is a tax neutral merger under section 2(1B) of improvement Unlock North and majority being promoters of GSK ✓ Income Tax Act. However GSK may monetise these West region ▪ Its complete exit by GSK from Health ✓ Go-To-Market and shares at a subsequent stage hence tax implications food business both in India and distribution network ✓ Future ready will arise for GSK promoters internationally optimisation formats ✓ Scale efficiencies Revenue from Food and Refreshment Segment ▪ HUL will distribute GSK’s Over-the-Counter and (in ₹ bn) HUL GSK Combined Oral Health products – Sensodyne, Otrivin, Eno Foods 11.6 and Crocin - under a consignment selling 43.8 107.6 agreement (5 years) Refreshment 52.1

22 Note: Deal date: Dec 18; * as on 28th March 2019 Case Study Adds more Sugar to Zydus

Zydus Wellness Heinz India ▪ Kraft is the fifth-largest food and beverage company in the world. ▪ Zydus Wellness Limited is the listed entity of Zydus group and is Company’s iconic brands include Kraft, Heinz, ABC, Capri Sun, one of the leading companies in fast growing Indian consumer Classico, Jell-O, Kool-Ad, Lunchables, Maxwell House, Ore-Ida, health market Oscar Mayer, Philadelphia, Planters, Plasmon, Philadelphia, ▪ The company has grown over the years on the back of pioneering Planters, Plasmon, Quero, Smart Ones and Velveeta brands like Sugar-Free, EverYuth and Nutralite and innovations ▪ In India the group operated under Heinz India Private Ltd. (Heinz) offering new benefits to consumers with brands like Complain, Glucon D, Nycil, Sampriti Ghee and ▪ Sugar Free the flagship brand of Zydus Wellness launched in Ketchup 1988 is currently having with over 93% market share ▪ In 1994 Heinz acquired this product portfolio from Glaxo India Ltd. ▪ Listed on both NSE and BSE with market cap of ₹ 74bn* for ~US$ 70mn. The division that time had annual sales of ~US$ 50mn

Sugar Free with Sugar Free Natura Zydus Wellness carved Distribution revamp EY Tan Removal range & Aspartame with Sucrose out and listed on NSE Nutrilite Mayonnaise

2018 1988 1991 2005 2006 2009 2011 2014 2017 2018 -19

Everyuth Acquisition of Carnation Nutra New production facility Sugar Free Green with Stevia Launch of Sugar Lite Skincare range (CANFL) in Sikkim – Unit I and new production facility in Agreement for Acquisition Sikkim – Unit II of Heinz India Deal Contours Strategic Rationale ▪ Zydus entered into definitive agreement to ▪ Significant synergy potential across distribution, Future Roadmap acquire 100% equity shares on Heinz India supply chain and manufacturing Private Ltd., jointly with ▪ Leverage distribution channels to drive higher ▪ Omni channel strategy leveraging strengths of Limited (Cadila) revenue growth the combined entity ▪ The purchase consideration for the deal is ₹ ✓ Extensive pan India distribution network ▪ Enhancing engagement with key accounts 45.9bn. The acquisition of Heinz India 800+ distributors, 17 lakh retailers, 21 across organized trade and e-commerce brands include Complain, Glucon D, Nycil warehouses and ~1,000 field force ▪ Pan India footprint by tapping and Sampriti Ghee ✓ Complementary distribution with addition of a complementaries in urban and rural markets ▪ Combined market size for Zydus will large general trade Channel to an existing become around ₹ 110bn with a share of 15% pharmacy channel ▪ The deal will be financed partly through the ▪ Supply chain efficiencies due to complementarity Financial snapshot (in ₹ bn) surplus cash and the remaining amount of channels Zydus Heinz Combined through 1/3 debt and 2/3 equity ✓ Supply chain milk collection: 90,000+ farmers ▪ Transaction is likely to close by Q4 FY 19 with potential to add more Revenue 5.3 11.5 16.8 subject to regulatory and other customary ▪ Potential cost savings by manufacturing approvals efficiency across multiple processes EBITDA 1.3 2.3 3.5 ▪ The merged entity will have five mfg. units Revenue and EBITDA are for 12 months ended 30 June 2018 ▪ 2mn customer touchpoints

Zydus was looking for target which fits into its strategy and build war chest of ₹ 5.6bn. The acquisition will definitely be going to provide the best opportunity for Zydus to scale its operations rapidly but not without multiple challenges. Since last couple of years, growth for Complan and Glucon D is stagnant. To bring them back on double digit growth is going to be the key challenge for Zydus 23 Note: ; Deal date: Oct 18; * as on 28th March 2019 Case Study Prabhat Dairy (Milk Products Business) acquired by Groupe Lactalis

Group Lactalis Prabhat Dairy

▪ Groupe Lactalis was founded in 1933 and is headquartered in ▪ Prabhat Dairy was founded in 1998 and is based in Navi Mumbai, Laval, France India

▪ Lactalis, Europe’s biggest dairy group with a presence in over ▪ Prabhat Dairy operates as an integrated milk and dairy products 120 countries company with aggregate milk processing capacity of 1.5mn liters per day ▪ The company offers cheeses, liquid milk, yogurt and chilled dairy products, butter and cream, dairy ingredients and powder, etc. ▪ The company offers milk and milk products such as clarified butter, cheese, milk powder, lassi, ice creams, paneer, shrikhand, ▪ It has production sites in the Americas, Europe, Africa, Asia, and curd, butter, yogurt, etc. Oceania ▪ The company owns two factories, including one of the largest ▪ In India, Lactalis operates through Tirumala Milk products sweetened condensed milk plants in India, and employs 1,239 (acquired in 2014) and Indore based Anik Industries (acquired in people 2016)

Deal Contours Transaction Overview1 Strategic Rationale ▪ Total Deal Value = ₹ 17bn (US$ 239mn) ▪ Lactalis, via it’s wholly owned subsidiary • With the acquisition of Prabhat Dairy Tirumala Milk Products will buy Prabhat Lactalis will have dominance in Western ✓ Stake Sale in subsidiary Sunfresh Agro Dairy's unit Sun fresh Agro Industries India Industries: ▪ The transaction involves sale of the dairy • It would strengthen its market position Deal Value = ₹ 12.3bn • business of Prabhat Dairy (contributes making it the biggest private milk collector in Sales (FY 18) = ₹ 9.5bn • 98.24% of revenue) by way of slump sale the country EV/Sales = 1.3x • on a going concern basis, along with the sale Slump Sale – Dairy Business of Prabhat • The acquisition will also help Lactalis reduce ✓ of 100% shareholding in Sun fresh Agro Dairy: dependence on home markets within Europe Industries (a step down subsidiary of Deal Value = ₹ 4.7bn • Prabhat Industries) • Post transaction, promoters of Prabhat Dairy • Sales (FY 18) = ₹ 5.84bn intend to develop the cattle feed business as • EV/Sales = 0.8x well as expand into Animal Nutrition and Genetics

1The acquisition is subject to customary conditions precedent, including approval from the Competition Commission of India, and other conditions precedent 24 Note: Deal date: Jan 19 Transactions Private Equity Investments (1/3)

Deal Value Stake Date Company Buyer (s) Segment ($ mn) (%) Private Equity Feb-19 MedPlus Health Services PI Opportunities Fund I Drug Retail 28.7 13.16 Zomato Media Delivery Hero Holding GmbH, Shunwei Capital Partners Internet Retail 62.0 2.85 Purple Panda Fashions AT Capital Pte, IvyCap Ventures Advisors Apparel and accessories 10.0 NA Caplin Steriles Eight Roads Ventures India, F Prime. Textiles 34.1 25.29 Jan-19 Citykart Retail India SME Investments, IDFC Private Equity Fund IV Retail 14.0 NA Baazar Style Retail Haldiram Group, Individual Investors Retail 7.2 NA Faasos Evolvence, Sistema, Lightbox, Sequoia Internet software & services 30.0 NA Bloom Hotels Samena Capital Consumer Service 14.3 NA Aqualite International Finance Corporation (IFC), Lighthouse Footwear 45.9 NA Amar Chitra Katha SSG Capital Management Consumer Service NA NA Dec-18 Suminter India Organics responsAbility Investments AG Food and Beverage NA NA Delightful Gourmet 3 one 4 Capital, Bertelsmann, Vertex , ULCA, Sistema Food and Beverage 25.0 NA Zydus Wellness True North, PI Opportunities, Pioneer Investments FMCG 156.0 13.79 Sapphire Foods Edelweiss, Goldman Sachs Food and Beverage 32.0 NA Baazar Retail NR Group, O3 Capital Global Advisory, Siguler Guff India Retail 50.0 NA Nov-18 Future Retail Edelweiss Special Opportunities Retail 30.0 0.80 Wakefit Sequoia Capital Consumer Durable 9.0 31.93 Zomato Media Payme (Alibaba), Glade Brook Capital Internet software & services 245.2 NA Naturell India Rabo Equity Advisors Food and Beverage NA 20.00 Oct-18 Kooh Sports Gaja Capital Consumer service 10.0 NA Duroflex Lighthouse India Fund III, Sachin Kumar Bhartiya Home Furnishings 21.7 NA Ban Labs True North FMCG 96.0 75.00 Gemini Edibles & Fats Black River Food Food and Beverage 88.0 25.00 Sep-18 Walmark Meditech India Opportunity Fund FMCG 1.5 NA Stanley Lifestyles Oman India Joint Venture Consumer Durable 24.0 26.86 LT Foods (Nature Bio-Foods) Rabo Equity Advisors Food and Beverage 20.0 NA Aug-18 Merhaki Foods and Nutrition (&Me) Matrix Food and Beverage NA NA Srinivas Farms IFC Food and Beverage 23.0 NA Jul-18 NSPIRA Morgan Stanley, Banyan Tree Consumer Service 75.0 NA Enrich Hair and Skin Solutions Westbridge Capital FMCG 23.3 67.85 Wildcraft India FW Sports Investment Fund L.P. Apparel 11.3 7.84 Jun-18 Lenskart Solutions TR Capital, Steadview Capital, Epiq Capital Retail 75.0 NA

25 Note: Deal period: Apr 18-Mar 19 Transactions Private Equity Investments (2/3)

Deal Value Stake Date Company Buyer (s) Segment ($ mn) (%) Grover Zampa Vineyards Ausom Enterprise, VisVires Capital Asia Food and Beverage 19.1 NA Jun-18 Kishlay Foods Intensive Softshare, Norwest Venture Partners Food and Beverage 14.5 NA B9 Beverages Sofina SA, Sequoia Capital and Others Food and Beverage 50.0 NA Bikaji Foods International IIFL Special Opportunities Fund I Food and Beverage 36.9 NA Y-Cook 021 Capital, Omnivore Capital, Oikocredit Food and Beverage 5.0 36.60 May-18 Fresco Global Banyan Tree Capital FMCG 5.0 NA Future Lifestyle Fashions L Catterton Asia Apparel Retail 99.2 8.18 Wonderchef Home Appliances Amicus Capital Private Equity I Housewares & Specialties 10.3 NA Imperativ Hospitality Samena Capital Investments Hotels and Resorts 31.7 49.75 Apr-18 Mountain Trail Foods (Chai Point) Paragon Partners, Saama , Eight Road, DSG Consumer Food and Beverage 20.0 NA Cycle Pure incense sticks Motilal Oswal FMCG NA NA Venture Capital Maverix Platforms Zephyr Peacock India Fund III, Accel India V LP Food and Beverage 8.8 35.35 Feb-19 Country Delight Matrix Partners India, Orios Venture Partners Food and Beverage 10.0 NA Dec-18 High Street Essentials SAIF Advisors FMCG 9.8 NA Nov-18 Pureplay Skin Sciences (Plum) Unilever Ventures FMCG 2.0 16.35 Bright Lifecare Sequoia Capital India, IIFL Alternate Asset Advisors Retail 10.0 NA Oct-18 The Souled Store RP-Sanjiv Goenka Venture Capital Retail 3.0 NA Mukunda Foods SAR Group (Ncubate) Food and Beverage NA NA Bessemer, Jungle Ventures Asia, Goldman Sachs, Helion, Home Interior Designs E-commerce (Livspace) Retail 70.0 NA Sep-18 TPG Chotta Haazri Foods Artha Ventures Food and Beverage NA NA NetMeds Marketplace Tanncam Investment, Sistema Asia, Daun Penh Cambodia Retail 35.0 NA Clues Network GIC, Unilazer Ventures Retail 16.0 NA Aug-18 FSN E-Commerce Ventures (Nykaa.com) Lighthouse, Sequoia Retail 15.9 NA Start-ups Mar-19 Grofers Soft Bank Vision Fund Retail 60.0 NA Tangy Turmeric Fireside Fund Food and Beverage NA NA Jan-19 Supa Star Food Roots Ventures LLP Food and Beverage NA NA Arata Zero Chemicals (Slick Organics) DSG Consumer FMCG 0.5 NA Drums Food International Danone Manifesto, DSG Consumer Partners, Verinvest Food and Beverage 25.9 NA Dec-18 Generico Whiteboard Capital, Tomorrow Capital Retail 3.0 NA Ninjacart Accel, Syngenta Internet software & services 35.0 NA 26 Note: Deal period: Apr 18-Mar 19 Transactions Private Equity Investments (3/3)

Deal Value Stake Date Company Buyer (s) Segment ($ mn) (%) Nov-18 Delightful Gourmet Nichirei Logistics, 3one4 Capital Fund, Bertelsmann Food and Beverage 25.0 NA Oct-18 Universal Sportsbiz Accel Apparel and accessories 13.5 8.45 Delightful Gourmet 3one4 Capital, Mayfield India, Sistema Asia, 3one4 Capital Food and Beverage 20.0 26.98 Sep-18 Sierra Nevada and Dolomite Restaurants Hunch Ventures Food and Beverage 13.9 50.00 Raw Pressery (Rakyan Beverages) Alteria Capital Food and Beverage 5.0 NA Aug-18 Chaayos (Sunshine Teahouse) SAIF Partners Food and Beverage 12.0 28.67 Jul-18 Faraway Foods Nisaba Adi Godrej, Angel investors Food and Beverage 0.5 NA Goa Brewcrafts Saama Capital, DSG Partners Asia Pte Food and Beverage 1.1 40.00 Jun-18 DailyNinja Delivery Services Saama Capital, Sequoia Capital, Matrix India Food and Beverage 0.3 NA May-18 White Owl Breweries IIFL Select Equity, Angel Investors Food and Beverage 8.2 37.78 PIPE Deals Lux Industries Abakkus Growth Fund Textile 5.2 1.18 Mar-19 Hindustan Foods WestBridge Ventures I Food and Beverage 7.9 11.61 Feb-19 PI Opportunities Fund I Personal Products 84.0 3.72 Jul-18 Bajaj Corp. Saif Partners FMCG 5.1 0.56 Jun-18 V2 Retail India 2020 Fund Retail 1.2 NA May-18 Ganesha Ecosphere DSP Black Rock, SBI Funds and TCG Advisory Textiles 15.0 9.11 Apr-18 Gokaldas Exports L and T Investment Management Textiles 10.5 4.96 Block deal Nalanda India (Sell-off) Textile 57.5 Jan-19 Kewal Kiran Clothing Nalanda India (Sell-off) Textile 4.6 Nov-18 Future Retail Edelweiss Special Opportunities (Buy) Retail 30.0 Aug-18 Safari Industries Tano India (Sell-off) Consumer Durable 4.2 Jun-18 Kajaria Bathware Aravali Investment Holdings (Buy) Building Products 9.6

27 Note: Deal period: Apr 18-Mar 19 Transactions Mergers and Acquisitions (1/2)

Deal Value Date Company Buyer (s) Segment Stake (%) ($ mn) John Players (ITC Ltd.) Reliance Retail Apparel and Accessories NA 100.0 Nature’s Essence Samara Capital Personal Products 29.0 65.0 Sidwal Refrigeration Industries Amber Industries Consumer Durable NA 80.0 Mar-19 Leela Hotels Brookfield Asset Management Hotels and Resorts 576.0 100.0 Kama Ayurveda Puig SL Internet Retail 14.3 NA Lamba Food Products Haldiram Snacks Food and Beverage 21.2 100.0 Soktas India Textile 23.2 100.0 Digiphoto Entertainment Imaging Thomas Cook Consumer Service 20.7 51 Skechers South Asia Skechers USA Inc. Footwear 81.4 49.0 Genesis Colors Reliance Retail Ventures Apparel and Accessories 6.3 9.4 Feb-19 PepsiCo India (Franchise rights in MH and MP) Varun Beverages Food and Beverage NA 100.0 Future Consumer Products Future Consumer FMCG NA 10.0 ATC Beverages Hindustan Foods Food and Beverage 0.2 40.0 Bombay Blue (Pan India Food Solutions) Yellow Tie Hospitality Management Consumer Service NA NA Umraan, Wok This Way, Health Juice Centre Yellow Tie Hospitality Management Consumer Service NA 100.0 Jan-19 Crème 21 Emami FMCG NA NA Four Seasons Wines Grover Zampa Vineyard, Quintela Assets Food and Beverage 4.5 100.0 John Distilleries Sazerac Food and Beverage NA 20.0 NSI Infinium Global Suvidhaa Infoserve Internet Retail 69.5 100.0 Dec-18 Estima AG KDDL Apparel and Accessories 0.4 100.0 Ritvika Trading Future Enterprises Retail NA 100.0 Nirulas Corner House (Restaurant) Coldmiths Retail Services (Banyan Tree Capital) Consumer Service NA 100.0 Nov-18 Affluence Food Processors Future Consumer Food and Beverage NA 50.0 WIMWI Foods Parle Biscuits Food and Beverage 0.3 30.0 Oct-18 HB Education (Cox & Kings) Midlothian Capital Partners Consumer service 600.0 100.0 Kajaria Floera Ceramics Kajaria Ceramics Building Products 0.4 29.0 Mcleod Russel India (2 tea estates) Goodricke Group Food and Beverage 12.6 100.0 Sep-18 Nirlep Appliances Bajaj Electricals Consumer Durable 6.3 79.9 Lozalo Pet Cosmetics Rossari Biotech FMCG NA 100.0 UK JK International FMCG 44.0 100.0 Aug-18 Avadh Snacks Prataap Snacks Food and Beverage 21.1 80.0 Fonterra Co-operative Future Consumer Food and Beverage NA 50.0

28 Note: Deal period: Apr 18-Mar 19 Transactions Mergers and Acquisitions (2/2)

Deal Value Date Company Buyer (s) Segment Stake (%) ($ mn) Amar Chitra Katha Griffin Partners Consumer Service NA 100.0 Aug-18 Vijaykant Dairy and Food Products, Adityaa Milk Hindustan Unilever Food and Beverage NA 100.0 Australian Foods India (Cookie Man) Modern Food Enterprises Food and Beverage NA 100.0 Dreamcann Foods Haldiram Snacks Food and Beverage NA 100.0 Genesis Colours Reliance Brands, Reliance Retail Ventures Retail 34.8 69.1 Jul-18 Rex Polyextrusion Astral Poly Technik Building products 21.4 100.0 Godrej Consumer Products, Brand Snuggy Nobel Hygiene FMCG NA 100.0 Visage Lines Personal Care Fireside Investment Advisory, Colgate-Palmolive India FMCG 2.6 14.0 Hind Pocket Books Penguin Random House Consumer service NA 100.0 Climate Technologies Symphony Consumer durable 33.0 100.0 Loli Beauty Inc Emami FMCG 0.6 100.0 Promptec Renewable Energy Solutions Havells India Consumer durable NA 31.1 Jun-18 Arpita Agro Products, Nimyle ITC FMCG NA 100.0 Mcleod Russel India (4 tea estates) Luxmi Tea Food and Beverage 21.0 100.0 Mcleod Russel India (8 tea estates) MK Shah Exports Food and Beverage 49.4 100.0 Elica PB India Whirlpool Consumer durable 24.2 50.0 Foodworld Business (Foodworld Supermarkets) Future Retail Retail 6.0 100.0 May-18 ThinOptics Lenskart Solutions Retail 0.5 NA Apr-18 Danone (dairy facility) Parag Milk Food Consumer durable 4.6 100.0 Start-ups Lets Shave Droco FMCG NA 10.0 RainCain, Morning Star, Savis retail (Kwik24) Big Basket Retail NA 100.0 Oct-18 WakeupBasket (CrockSys Technologies) DailyNinja Delivery Services Retail NA 100.0 Holachef Foodpanda Retail NA 100.0 Magsons Network Natures Basket Retail NA NA Aug-18 Bombay Shaving Colgate Palmolive FMCG 2.6 14.0

29 Note: Deal period: Apr 18-Mar 19 Transactions Equity Capital Markets (1/2)

IPO filings

Issue Details Date Company Name Sector Issue Size (₹ mn) O/S Shares (in mn) Fresh Issue (₹ mn) Offer for sale (in mn) Oct-18 Polycab India Electrical Equipment - 141.2 5,000 24.9 Oct-18 Prince Pipes and Fittings Plastic Products 6,000 90.0 4,000 2,000 Sep-18 Stovekraft Consumer Durable - - 1,450 7.2 Sep-18 Flair Writing Industries Office Services 4,500 23.3 3,300 -

Aug-18 Mrs. Bector's Food Specialities Food and Beverage 8,000 57.3 - - Aug-18 Dodla Dairy Beverages - 55.7 1,500 9.5 Jul-18 Aakash Educational Services Educational services - 66.7 - 18.5 Jun-18 Penver Products Food and Beverage - 53.4 2,420 4.1 Jun-18 Anmol Industries Food and Beverage 7,500 61.8 - - Jun-18 Vectus Industries Building Materials - 13.1 850 3.9 May-18 P. N. Gadgil and Sons Diamond and Jewellery 5,000 33.8 - - Bonus Issue Company Name Bonus Ratio Announcement Record Ex-Bonus Cupid 1:5 24-08-2018 12-10-2018 11-10-2018 GlaxoSmithKline 1:1 24-07-2018 13-09-2018 11-09-2018 Borosil Glass 3:1 18-06-2018 03-08-2018 02-08-2018 Jyothy Labs 1:1 16-05-2018 30-06-2018 28-06-2018 Avanti Feeds 1:2 09-05-2018 27-06-2018 26-06-2018 Emami 1:1 03-05-2018 22-06-2018 21-06-2018 Jubilant Food 1:1 08-05-2018 23-06-2018 21-06-2018 Essel Propack 1:1 26-04-2018 21-06-2018 20-06-2018 GM Breweries 1:4 05-04-2018 22-05-2018 21-05-2018 La Opala RG 1:1 05-02-2018 23-03-2018 22-03-2018

30 Note: Deal period: Apr 18-Mar 19 Transactions Equity Capital Markets (2/2)

Stock Split

Company Stock Price (₹) as on Split Date Old FV (₹) New FV (₹) Split Date

Britannia 3,016 2 1 29-11-2018 DFM Foods 253 10 2 01-11-2018 Avanti Feeds 599 2 1 26-06-2018 Uniply Ind 81 10 2 25-06-2018 677 10 2 15-06-2018 Buyback of shares

Company Buyback Period Buyback Price (₹) Maximum Quantity Size (₹ mn) KPR Mills 16 Mar 2018 to 02 Apr 2018 810 13,35,000 1,081 Rights Issue

Date Company Rights Ratio FV (₹) Premium Announcement Record Ex-Rights

Shalimar Paints 3:2 2 63 23-05-2018 09-11-2018 06-11-2018 Hatsun Agro 1:16 1 554 06-12-2017 01-06-2018 31-05-2018

31 Note: Deal period: Apr 18-Mar 19 Capital Expenditure

Projects Under Execution Projects Completed

Cost Cost Date Company Segment Location Date Company Segment Location (₹ mn) (₹ mn) Dextrose Jan-19 Angd Fruit Ranch Fruit Juices 450 Shimla Nov-18 Sayaji Industries 400 Ahmedabad Monohydrate Oct-18 Devi Sea Foods Sea Food 200 West Godavari Oct-18 Mondelez India Foods Research 1,000 Thane Carbonated Fruit Sep-18 Gujarat Co-op. Milk Mkgt. Fed Dairy 2,000 Howrah Oct-18 Ghodawat Foods International NA Kolhapur Drinks Aug-18 Natures Fresh Namkeen Mixtures 200 Varanasi Sep-18 Swaraj India Agro Sugar 2,830 Satara

Jul-18 Wellcome Fisheries Shrimp & Fish 320 West Godavari Sep-18 Apex Coco & Solar Energy Soft Drinks 2,000 Coimbatore Sep-18 Gujarat Co-op. Milk Mktg. Chocolates 1,900 Anand Jun-18 Gujarat Ambuja Exports Starch 2,050 Sitarganj Sep-18 Nekkanti Sea Foods Sea Food NA Nellore Apr-18 Varun Beverages Soft Drinks 8,000 Pathankot Jul-18 Biscuits 1,700 Kamrup Apr-18 Parle Biscuits Confectioneries 1,480 Chittoor Bakery & Jul-18 Speciality Restaurants NA Kolkata Apr-18 Stellar Cold Chain Frozen Foods 220 Kashipur Confectionery May-18 Britannia Industries Biscuits 1,500 Kachchh Apr-18 Vimal Agro Products Fruit Pulp NA Surat May-18 Hangyo Icecreams Dairy Products 180 Udupi Apr-18 Sandhya Marines Fish Feed Mill NA West Godavari Apr-18 Panchmahal District Co-op. Dairy 3,000 Taloja MIDC Sai Marine Exports Shrimp 540 Visakhapatnam Mar-18 Apr-18 Devi Sea Foods Shrimp Feed 300 Prakasam

Dec-17 Bikaji Foods Biscuits NA Bikaner Apr-18 Innovative Foods Frozen Parathas NA Chittoor Biscuits & Dec-17 Dodla Dairy Dairy 700 East Godavari Mar-18 Inbisco India 8,000 Ahmedabad Confectionery Oct-17 Patanjali Ayurved Food Processing 5,000 Dhar Mar-18 Avanti Feeds Shrimp Feed 500 West Godavari Mother Dairy Fruit & Food & Jan-17 Hindustan Coca-Cola Beverages Beverages 7,500 Hoshangabad Feb-18 830 Ranchi Vegetable Vegetable Sep-16 Patanjali Ayurveda Food Processing 10,000 Nagpur Jan-18 Karnataka Co-op. Milk Powder 3,000 Dharwad

32 Public Market Data FMCG and Agro, Food Processing

Market Stock Ent. EBITDA PAT Revenue EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA Company Cap Price Value margin margin (₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%) FMCG ITC 3,677.2 300.0 3,547.8 431.2 38.3 26.2 6.9 7.5 6.8 6.1 8.2 19.4 17.2 15.4 32.4 29.4 26.2 23.6 22.81 30.18 18.76 Hindustan Unilever 3,645.1 1,683.9 3,581.8 347.8 21.6 15.1 8.1 9.1 8.0 6.8 10.3 40.6 34.4 28.4 69.9 58.5 49.4 41.5 74.65 75.03 31.19 India 727.8 412.1 730.6 76.5 21.3 17.4 7.5 8.4 7.4 6.6 8.7 40.0 34.4 29.9 53.6 47.4 40.5 34.8 25.27 53.56 16.23 Godrej Consumer 709.1 693.7 718.1 97.7 21.2 16.6 7.8 6.8 6.1 5.5 7.0 32.3 28.1 24.6 43.4 44.4 38.3 33.2 28.00 81.28 11.99 Procter & Gamble 347.5 10,706.0 341.1 24.6 25.3 15.4 13.0 12.0 10.2 NA 12.6 49.6 38.2 NA NM NA NA NA 56.91 84.23 29.31 Colgate-Palmolive IN 340.5 1,251.9 336.2 41.6 26.7 16.2 6.8 NA NA NA 7.7 NA NA NA 50.6 46.3 40.7 34.8 48.13 NA 27.63 GSK CH 303.8 7,224.9 265.3 43.2 20.5 16.2 5.1 NA NA NA 5.7 NA NA NA 43.4 32.3 30.1 27.2 21.18 21.86 13.50 Gillette India 215.3 6,606.9 213.8 16.8 22.8 13.7 12.3 11.5 10.2 NA 11.9 50.1 42.3 NA NM NA NA NA 38.34 59.82 20.75 Emami 180.6 397.8 182.4 24.9 28.9 14.5 9.8 6.7 5.9 5.3 6.8 23.8 21.0 18.5 58.8 36.6 30.8 26.0 19.16 NM 13.36 Jyothy Laboratories 67.6 184.1 69.8 17.3 15.6 9.2 4.3 3.6 3.2 2.9 NA 23.0 20.0 17.7 36.0 36.2 30.8 26.5 14.30 NM 8.34 Bajaj Consumer Care 46.1 312.8 43.1 8.1 31.4 26.4 8.2 4.8 4.3 3.8 5.3 15.6 13.7 12.1 21.9 20.0 17.8 16.0 43.25 47.75 35.65 Agro and Food Processing Nestle India 1,067.6 11,073.1 1,032.6 112.2 24.7 14.4 9.2 NA NA NA 9.2 NA NA NA 66.4 66.4 57.2 50.3 45.52 32.03 20.90 Britannia Industries 744.2 3,096.6 738.1 98.3 15.3 9.8 6.0 6.7 5.8 5.1 6.9 41.8 34.9 29.4 NM 63.4 52.7 43.9 31.63 39.29 20.77 Marico 436.8 338.4 427.1 62.9 18.1 12.5 6.6 5.8 5.1 4.6 5.9 32.5 27.0 23.5 53.5 46.2 38.2 33.1 32.32 44.15 20.40 Jubilant Foodworks 192.6 1,459.4 188.7 30.2 14.6 6.5 5.0 5.2 4.5 3.9 6.3 31.2 26.2 22.2 NM 60.5 48.9 40.3 22.13 NA 14.08 KRBL 79.8 339.2 78.5 32.5 23.9 13.4 3.5 2.1 1.9 2.0 2.1 9.2 8.3 8.3 18.4 15.9 13.9 13.4 20.71 20.82 11.96 Zydus Wellness 75.0 1,301.1 69.7 5.1 24.4 25.5 8.0 12.1 4.5 3.1 12.5 51.5 28.4 21.5 38.0 40.0 31.9 26.6 20.97 24.79 17.27 Avanti Feeds 57.4 421.3 51.9 33.9 20.1 12.7 2.9 1.4 1.2 1.0 1.5 12.2 10.0 7.6 12.9 18.8 15.3 NA 51.74 48.04 33.24 CCL Products India 38.3 288.0 41.0 11.4 21.2 13.0 3.5 3.5 2.9 2.6 3.6 15.0 12.3 10.7 25.9 22.4 18.1 15.2 21.65 19.63 14.95 Mishtann Foods 31.1 62.2 31.4 2.6 NA 0.5 NA NA NA NA NA NA NA NA NM NA NA NA NA NA NA Heritage Foods 25.1 540.9 26.1 23.7 5.9 2.7 1.5 1.0 0.9 0.8 1.1 14.3 12.2 10.2 40.0 30.0 24.5 19.4 9.29 25.30 4.71 Gujarat Ambuja 25.0 217.7 27.9 33.3 9.5 5.4 1.0 0.7 0.7 0.6 0.8 6.8 6.1 5.5 13.9 11.2 9.9 9.0 19.18 20.37 9.98 Tasty Bite Eatables 21.8 8,500.0 22.1 2.8 17.1 9.5 6.9 NA NA NA 6.7 NA NA NA NM NA NA NA 30.46 23.16 14.63 Prataap Snacks 21.4 913.4 19.5 10.2 8.6 4.4 2.8 1.7 1.3 1.2 1.7 23.8 16.9 13.5 44.1 56.3 40.4 30.7 11.77 12.60 8.26 Agro Tech Foods 14.2 580.7 13.7 8.1 8.2 3.9 1.9 1.6 1.5 1.3 NA 18.9 16.5 14.5 42.8 38.7 32.7 27.8 9.72 11.32 7.44 LT Foods 12.6 39.4 26.5 36.1 10.5 3.7 1.2 0.7 0.6 0.5 0.7 6.1 5.3 4.7 8.2 7.4 6.0 5.0 14.60 28.55 4.49 DFM Foods 10.7 212.9 10.9 4.2 11.0 5.5 3.4 NA NA NA 2.4 NA NA NA 45.7 NA NA NA 25.10 18.23 8.88 Apex Frozen Foods 10.6 340.2 11.4 10.0 11.0 7.9 1.9 NA NA NA NA NA NA NA 12.1 NA NA NA 38.42 38.44 22.35 Waterbase 6.9 167.5 7.0 3.4 16.9 8.8 3.3 NA NA NA 1.8 NA NA NA 22.1 NA NA NA 21.81 22.01 11.89 ADF Foods 4.8 241.1 4.8 2.1 14.1 8.7 1.9 2.0 1.8 NA 2.0 9.4 8.4 NA 28.3 16.1 14.3 NA 10.59 14.26 8.69

33 Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful Public Market Data Sugar and Beverages

Market Stock Ent. EBITDA PAT Revenue EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA Cap Price Value margin margin Company

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Sugar EID Parry India 36.2 204.6 79.0 126.0 10.9 1.9 0.8 NA NA NA 0.5 NA NA NA 14.1 NA NA NA 8.54 16.59 1.74 Balrampur Chini Mills 30.9 135.2 40.7 43.4 13.8 5.2 0.6 1.0 0.9 0.9 0.9 6.2 5.9 5.5 13.7 7.1 7.0 6.4 14.34 15.41 5.90 Shree Renuka Sugars 19.6 10.2 50.4 77.3 -15.6 -28.5 0.8 NA NA NA 0.7 NA NA NA NA NA NA NA NA NA -19.29 Bannari Ammn Sugars 18.8 1,500.2 23.9 14.8 14.2 5.9 1.8 NA NA NA 2.3 NA NA NA 21.6 NA NA NA 7.94 8.12 4.05 Triveni Engineering 15.4 59.8 21.1 33.6 8.7 3.6 0.7 NA NA NA 0.7 NA NA NA 12.9 NA NA NA 13.38 19.09 3.88 Dhampur Sugar Mills 15.2 229.1 22.5 33.5 10.6 4.5 0.7 NA NA NA 0.8 NA NA NA 10.0 NA NA NA 15.94 16.31 4.69 Dalmia Bharat Sugar 9.8 120.8 11.6 22.7 11.0 5.1 0.4 NA NA NA NA NA NA NA 8.0 NA NA NA 8.45 10.85 4.00 Bajaj Hind. Sugar 9.1 8.0 64.8 58.5 16.2 -8.5 1.1 NA NA NA NA NA NA NA NA NA NA NA -15.59 NA -3.52 Beverages United Spirits 386.9 532.4 413.5 83.7 14.3 5.7 5.8 4.3 3.9 3.5 4.9 29.4 25.2 21.5 59.6 50.1 40.3 32.8 22.83 50.94 5.38 United Breweries 363.5 1,374.9 364.4 56.2 16.1 7.0 4.5 5.6 5.1 4.5 5.8 29.6 26.4 23.1 NM 59.5 51.8 44.1 15.71 17.41 8.58 Varun Beverages 149.0 816.0 171.8 51.1 20.1 6.0 3.3 2.8 2.3 2.0 3.4 14.4 11.8 10.0 50.9 44.9 34.9 25.0 16.25 13.61 5.41 Tata Global Beverages 125.6 199.0 133.8 67.1 12.5 7.2 2.5 1.8 1.7 1.6 1.9 16.9 14.5 12.8 25.3 26.4 22.9 20.0 7.22 17.71 4.75 Hatsun Agro Product 108.8 715.0 118.6 42.9 8.7 2.1 2.7 NA NA NA 2.8 NA NA NA NM NA NA NA 25.20 20.78 4.86 Radico Khaitan 53.5 401.2 57.1 18.0 14.8 6.9 2.8 NA NA NA 2.8 NA NA NA 43.3 NA NA NA 11.38 18.43 5.55 Parag Milk Foods 21.6 257.2 23.6 19.5 9.9 4.5 1.2 1.0 0.9 0.8 1.1 9.9 8.5 7.2 24.8 18.8 15.7 13.0 13.02 17.03 6.52 Tata Coffee 16.8 89.9 31.3 15.0 16.9 7.1 2.2 NA NA NA 1.8 NA NA NA 15.7 NA NA NA 9.71 NA 3.81 GM Breweries 12.0 654.6 11.9 4.3 25.3 16.7 3.2 NA NA NA 2.6 NA NA NA 16.4 NA NA NA 27.62 NM 22.61 McLeod Russel India 9.0 85.8 19.3 20.6 6.9 10.1 1.3 NA NA NA 0.9 NA NA NA 3.5 NA NA NA 10.08 17.49 5.70 SOM Distilleries 4.9 157.0 5.9 3.5 16.7 7.1 2.0 NA NA NA 1.3 NA NA NA 17.1 NA NA NA 16.52 14.03 7.43 Associated Alcohols 4.4 245.0 4.6 2.9 13.9 6.0 1.1 NA NA NA NA NA NA NA 26.2 NA NA NA 19.68 19.94 10.38 Globus Spirits 4.0 138.1 6.0 9.7 9.8 0.6 0.6 NA NA NA NA NA NA NA 69.7 NA NA NA 1.52 3.93 0.72

34 Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful Public Market Data Consumer Durables and Retail

Market Stock Ent. EBITDA PAT Revenue EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA Cap Price Value margin margin Company

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Consumer Durables Havells India 475.7 760.6 459.4 81.0 12.9 7.8 3.6 4.5 3.9 3.4 NA 36.5 30.2 25.6 NM 56.0 46.0 38.5 17.93 23.28 10.67 Siemens 387.5 1,088.1 350.6 123.6 10.7 7.3 2.4 2.5 2.3 2.1 2.8 22.8 20.8 18.5 43.0 36.8 31.6 29.3 11.26 13.90 6.56 Voltas 207.2 626.3 210.1 63.6 10.4 7.8 3.1 2.9 2.6 2.3 3.0 29.6 25.3 22.1 36.2 36.7 31.4 27.0 13.83 37.81 7.23 Whirlpool of India 190.1 1,498.0 180.1 48.1 11.7 7.3 3.8 NA NA NA 3.4 NA NA NA 54.2 NA NA NA 21.42 25.49 11.51 CG Consumer Elect. 138.3 220.6 137.1 40.7 13.0 7.9 3.7 3.0 2.7 2.4 3.1 22.7 19.1 16.7 42.7 36.4 29.9 25.4 49.40 NM 14.23 TTK Prestige 98.8 8,557.1 97.1 18.7 13.2 14.1 3.8 4.5 4.0 3.4 5.2 32.4 27.3 23.0 37.6 50.5 42.6 36.0 28.13 28.80 18.44 Symphony 97.7 1,396.9 94.9 8.0 27.5 21.3 15.4 9.9 7.9 6.7 NA 51.4 37.0 30.0 50.8 64.1 47.6 39.6 31.45 43.35 24.87 V-Guard Industries 94.6 221.5 93.0 23.3 8.2 5.8 4.0 3.6 3.1 2.8 NA 43.1 30.8 28.4 NM 56.1 41.4 37.5 19.40 20.46 12.76 Blue Star 64.3 667.1 68.9 46.9 5.9 3.2 1.6 1.3 1.2 1.0 1.3 22.0 17.4 14.3 42.7 42.3 30.7 24.1 19.32 37.76 5.17 Bajaj Electricals 58.0 566.6 65.0 46.9 6.3 1.8 1.4 NA NA NA 1.4 NA NA NA 68.8 NA NA NA 9.19 24.79 2.53 IFB Industries 39.0 962.2 38.3 22.2 7.9 3.6 2.0 1.5 1.2 1.0 1.5 27.0 16.6 12.5 48.2 59.0 31.2 22.3 15.77 16.23 7.91 Orient Electric 31.8 149.9 32.9 15.7 8.7 4.1 NA NA NA NA 1.8 NA NA NA 49.6 NA NA NA NA NA NA 26.8 2,364.0 27.3 28.3 4.5 2.1 1.3 0.9 0.7 0.6 1.0 19.6 15.0 12.8 43.4 37.4 27.4 22.7 23.79 27.44 6.86 Amber Enterprises 25.3 805.2 28.5 21.7 7.8 2.9 NA 1.1 0.9 0.8 1.3 14.4 11.0 9.3 40.6 28.8 20.2 16.2 9.34 16.87 2.32 Hawkins Cookers 16.3 3,074.9 16.0 5.5 12.8 8.8 2.6 NA NA NA 2.5 NA NA NA 33.4 NA NA NA 44.97 44.12 20.24 Retail Avenue Supermarts 916.8 1,469.0 914.9 150.0 9.0 5.1 5.5 4.6 3.6 2.9 6.1 55.4 42.6 33.1 NM NM NM 55.4 17.99 17.00 13.35 Future Retail 228.7 455.1 242.7 184.8 4.5 2.4 1.6 NA NA NA 1.3 NA NA NA NM NA NA NA 15.40 25.00 5.75 Aditya Birla Fashion 171.1 221.7 184.4 71.7 6.6 1.7 1.9 NA NA NA 2.3 NA NA NA NM NA NA NA 11.61 NA 2.21 121.9 367.0 125.1 21.6 9.6 4.0 5.5 4.5 3.7 3.0 5.8 47.9 36.0 27.7 NM NM 53.0 38.7 5.53 18.89 3.82 Future Lifestyle 94.6 486.0 100.9 44.1 10.0 3.2 1.9 1.8 1.5 1.2 2.3 19.6 16.3 13.2 NM 55.3 42.2 32.3 9.72 13.96 3.82 Future Consumer 86.2 44.9 91.9 29.9 1.9 -0.9 3.7 2.3 1.7 1.3 2.5 82.9 43.5 27.9 NA NA 116.6 49.0 NM NA NM V-Mart Retail 48.9 2,695.0 48.7 12.2 10.9 6.4 2.8 NA NA NA 3.5 NA NA NA 62.8 NA NA NA 25.52 28.34 15.14 Shoppers Stop 40.9 464.9 41.9 36.3 5.8 8.4 1.3 1.1 1.0 0.9 1.2 16.0 12.9 10.6 9.3 42.5 31.1 22.9 43.94 NM 15.82 V2 Retail 9.3 273.1 9.3 4.7 8.8 8.3 1.3 NA NA NA 2.0 NA NA NA 17.4 NA NA NA 34.73 71.41 16.92

35 Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful Public Market Data Consumer Discretionary and Services

Market Stock Ent. EBITDA PAT Revenue EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA Cap Price Value margin margin Company

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Consumer Discretionary Titan Co 1,007.0 1,134.3 1,028.2 159.5 10.3 7.1 5.3 5.2 4.4 3.7 5.5 47.6 38.1 31.4 NM 68.2 54.8 45.9 24.24 27.90 12.60 3M India 270.8 24,035.7 261.3 25.6 18.8 12.2 8.3 NA NA NA 9.2 NA NA NA NM NA NA NA NA NA NA 198.2 671.3 104.8 1,876.9 1.0 0.7 0.1 0.1 0.1 0.0 0.1 5.0 4.5 3.8 15.7 14.2 12.6 10.5 19.39 33.52 5.31 Bata India 181.6 1,412.6 175.7 26.3 13.4 8.4 3.3 5.9 5.2 4.6 6.7 38.5 31.7 25.6 NM 62.0 50.8 41.5 15.84 18.25 10.91 Relaxo Footwears 94.7 763.0 95.4 19.6 15.5 8.2 4.0 NA NA NA 4.3 NA NA NA 56.9 NA NA NA 23.56 24.12 13.78 DCM Shriram 64.2 411.7 67.7 69.0 15.3 9.6 1.1 0.9 0.8 0.8 0.9 5.4 4.8 4.3 10.0 8.6 7.6 6.7 23.72 22.46 11.76 Prism Johnson 47.6 94.5 65.9 55.1 8.1 0.8 1.3 1.1 1.0 0.9 1.2 10.9 9.3 8.1 NM 27.1 19.0 14.5 4.34 8.99 0.88 PC Jeweller 32.6 82.5 41.6 96.1 10.4 5.6 1.3 NA NA NA NA NA NA NA 6.0 NA NA NA 14.40 20.41 6.53 Balmer Lawrie & Co 21.4 187.4 16.9 17.2 13.3 10.0 1.2 NA NA NA 1.0 NA NA NA 13.0 NA NA NA 12.24 14.84 8.16 Vaibhav Global 20.8 636.0 19.8 15.8 10.3 7.1 1.4 1.1 1.0 NA 1.1 8.7 7.7 NA 18.4 12.8 10.9 NA 22.66 28.19 15.51 Mayur Uniquoters 15.7 346.3 13.6 5.7 26.3 16.9 3.5 2.2 1.9 1.5 NA 9.5 7.9 7.2 16.3 16.6 14.8 13.6 23.08 23.26 19.18 Surya Roshni 14.0 257.2 24.7 48.8 7.1 2.2 0.6 NA NA NA 0.5 NA NA NA 13.0 NA NA NA 10.82 11.79 3.95 Asian Star Co 11.3 709.0 15.6 39.1 4.4 2.9 0.5 NA NA NA 0.4 NA NA NA 10.4 NA NA NA 12.42 14.84 4.89 Kesoram Industries 9.9 69.5 48.6 38.7 -1.2 -13.1 1.4 NA NA NA 1.3 NA NA NA NA NA NA NA -76.84 NA -8.85 Kokuyo Camlin 9.8 97.5 11.1 6.3 6.2 1.7 2.1 NA NA NA 1.8 NA NA NA NM NA NA NA 4.46 7.28 2.15 Andrew Yule & Co 9.2 18.9 8.9 3.7 1.5 5.9 3.6 NA NA NA NA NA NA NA 41.0 NA NA NA 6.36 12.63 3.79 Khadim India 8.8 491.4 9.8 7.4 10.4 4.9 1.8 NA NA NA 1.2 NA NA NA 22.7 NA NA NA 15.91 23.51 8.05 Mirza International 6.6 54.9 9.3 9.7 18.0 8.1 1.8 NA NA NA 0.8 NA NA NA 8.4 NA NA NA 14.74 16.64 8.98 Renaissance Jewellery 6.0 316.2 12.5 18.3 3.7 3.4 0.5 NA NA NA 0.5 NA NA NA 9.3 NA NA NA 11.68 15.59 5.36 KDDL 5.3 453.0 6.3 5.0 8.9 3.2 1.1 1.0 0.9 0.7 1.0 10.2 8.7 7.2 28.7 23.5 19.9 16.1 13.60 14.84 4.12 Timex Group India 5.1 50.6 5.2 2.1 5.1 3.6 2.2 NA NA NA 2.2 NA NA NA 67.4 NA NA NA 64.66 NM 6.90 Liberty Shoes 2.6 154.1 3.7 5.4 7.4 1.3 0.8 NA NA NA 0.7 NA NA NA 39.8 NA NA NA 4.27 9.47 1.68 Services Thomas Cook India 91.2 246.1 83.5 110.7 3.4 16.7 0.9 1.3 1.1 1.0 1.1 46.6 33.6 27.8 1.5 78.0 67.5 52.5 34.72 NA 19.27 Blue Dart Express 85.3 3,593.7 87.1 28.0 12.8 5.2 3.3 2.7 2.4 2.1 3.1 31.3 23.1 19.2 58.9 77.1 51.1 40.4 30.20 28.95 10.01 Just Dial 39.6 612.2 38.8 7.8 21.0 18.3 3.7 4.4 3.9 3.5 5.0 17.3 15.3 14.0 29.2 23.2 19.3 17.3 15.20 NA 10.70 Cox & Kings 24.6 139.6 59.1 64.1 13.8 5.8 1.1 2.4 2.4 2.4 0.9 7.1 6.8 6.9 6.5 8.9 6.6 6.6 12.72 16.30 3.79 BLS Intl. Services 11.8 115.0 11.6 7.9 20.2 12.2 1.5 NA NA NA 1.5 NA NA NA 12.2 NA NA NA 45.30 NM 25.19 36 Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful Public Market Data Hotels and Textiles

Market Stock Ent. EBITDA PAT Revenue EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA Cap Price Value margin margin Company

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Hotels Indian Hotels Co 180.7 152.0 208.4 41.0 16.4 2.4 4.4 4.7 4.3 3.9 4.7 24.5 20.8 17.4 NM 65.7 49.0 34.8 2.89 4.16 1.08 EIH 115.3 201.7 120.7 16.0 19.0 11.3 5.9 6.2 5.7 5.6 NA 28.1 25.1 25.5 64.2 49.2 45.8 49.2 6.36 9.24 4.64 Lemon Tree Hotels 63.9 80.7 78.3 4.8 28.5 3.0 NA 13.5 10.2 8.6 14.7 41.5 27.4 20.5 NM NM NM 48.5 1.75 4.41 0.61 Mahindra Holidays 32.9 246.2 35.4 22.0 15.8 5.3 1.9 1.7 1.6 1.5 1.6 16.2 14.6 13.4 24.6 32.4 27.7 23.9 17.87 6.13 2.76 ITDC 24.1 281.5 21.0 3.5 -1.6 9.0 10.3 NA NA NA 6.0 NA NA NA NM NA NA NA 10.16 10.33 4.90 TAJ GVK Hotels & 14.9 237.4 16.8 2.9 24.9 7.3 4.2 NA NA NA 5.4 NA NA NA NM NA NA NA 5.83 8.02 2.87 Resorts EIH Associated Hotels 11.6 379.7 11.1 2.6 25.9 14.6 5.4 NA NA NA 4.3 NA NA NA 30.6 NA NA NA 13.18 13.37 10.66 Oriental Hotels 8.0 45.0 11.1 3.6 15.7 1.7 2.9 NA NA NA 3.1 NA NA NA NM NA NA NA 1.45 -0.95 0.75 Hotel Leela Venture 7.0 11.1 44.6 7.2 27.1 -3.2 6.7 NA NA NA 6.2 NA NA NA NA NA NA NA -8.79 NA -0.49 Textiles Page Industries 270.5 24,248.0 267.3 25.2 21.5 13.8 10.0 NA NA NA 9.4 NA NA NA NM 62.9 52.7 43.9 45.86 47.75 27.04 Century Textiles 101.4 908.0 135.9 79.0 16.8 5.2 2.1 NA NA NA 1.9 NA NA NA 24.8 NA NA NA 15.62 16.36 3.95 Lakshmi Machine Work 64.4 6,028.8 55.6 25.7 10.7 8.1 2.5 2.0 1.8 1.7 NA 17.0 15.1 13.6 30.8 26.6 23.8 21.6 12.55 14.06 8.29 Vardhman Textiles 62.8 1,092.3 64.7 62.5 12.4 7.9 1.3 1.0 0.9 0.8 1.0 5.4 4.9 4.5 10.4 8.6 7.6 7.3 10.68 11.79 6.25 Welspun India 59.7 59.5 86.0 53.3 21.1 7.1 1.6 1.3 1.1 1.0 1.3 7.6 6.0 5.3 15.5 14.3 10.5 8.7 15.21 10.48 5.23 TCNS Clothing Co 50.4 822.0 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Raymond 48.8 795.0 68.2 59.1 8.0 2.2 1.2 1.0 0.9 0.8 1.1 11.2 9.7 8.9 36.3 28.9 21.6 16.1 7.34 14.11 2.25 KPR Mill 41.5 572.0 45.6 28.9 19.9 10.0 1.8 1.4 1.2 1.1 1.4 7.2 6.3 5.5 14.6 12.2 10.4 8.7 20.27 19.64 11.71 Trident/India 34.9 68.4 51.7 45.6 18.0 5.7 1.3 1.0 1.0 0.9 NA 5.2 4.8 4.6 12.9 8.8 7.8 7.3 9.14 7.54 4.16 LUX Industries 34.0 1,345.0 37.1 11.4 13.8 7.0 4.1 NA NA NA 3.2 NA NA NA 42.9 NA NA NA 28.00 28.50 10.16 Bombay Dyeing 28.5 138.2 53.7 26.6 22.0 1.4 2.8 NA NA NA 2.0 NA NA NA 81.3 NA NA NA 7.76 NA 0.98 Rupa & Co 27.4 345.2 28.5 11.5 13.5 7.5 2.7 2.3 2.0 NA 2.5 16.0 14.0 NA 31.8 27.6 24.3 NA 18.38 19.78 10.68 Arvind 23.8 92.0 54.1 104.1 9.3 3.1 1.3 0.6 0.5 0.6 0.6 6.4 5.2 5.3 7.7 7.8 6.2 6.0 8.88 13.33 3.45 Siyaram Silk Mills 19.5 416.7 25.0 17.3 14.2 6.4 1.9 NA NA NA NA NA NA NA 17.6 NA NA NA 17.38 18.30 8.17 Dollar Industries 16.1 283.5 17.6 9.5 13.0 6.7 2.5 1.6 1.5 1.3 1.8 12.5 10.8 9.5 24.6 21.8 18.5 15.8 23.87 23.21 10.56 Kewal Kiran Clothing 16.0 1,300.0 14.9 4.6 21.6 16.1 3.9 NA NA NA 3.3 NA NA NA 21.9 NA NA NA 18.92 30.33 13.49

37 Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful Public Market Data Plastic Products and Home Decor

Market Stock Ent. EBITDA PAT Revenue EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA Cap Price Value margin margin Company

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Plastic Products Supreme Industries 139.3 1,096.9 141.2 49.2 16.0 8.8 3.1 2.5 2.2 1.9 2.5 17.0 14.7 12.8 32.3 31.4 26.8 23.0 23.97 26.49 14.99 Astral Poly Technik 137.5 1,147.8 139.6 21.1 15.0 8.3 5.1 5.5 4.6 3.8 5.8 35.1 28.5 23.6 NM 64.6 48.8 38.1 18.66 22.11 11.09 VIP Industries 68.2 482.3 67.2 14.1 13.9 9.0 3.1 3.8 3.1 2.6 3.9 28.8 23.4 18.3 53.8 45.6 36.5 28.0 28.30 29.83 18.38 Finolex Industries 62.0 499.5 62.1 27.1 17.9 11.2 3.0 2.1 1.9 1.7 2.3 10.7 10.0 9.2 20.2 16.7 15.8 14.6 11.84 25.13 9.30 Jain Irrigation Systems 29.8 58.4 78.6 79.5 13.3 2.8 1.2 0.9 0.8 0.7 0.9 6.7 5.8 5.1 13.7 9.3 7.0 5.4 5.18 7.71 1.88 Time Technoplast 23.5 103.8 30.5 31.0 15.2 5.8 1.4 0.9 0.8 0.7 0.9 5.8 5.0 4.6 13.0 11.3 9.2 8.2 12.81 13.71 6.59 Nilkamal 21.2 1,420.2 22.9 21.2 11.4 5.8 1.1 0.9 0.9 NA NA 8.7 7.8 NA 17.2 15.6 13.7 NA 15.50 16.87 10.53 Safari Industries India 16.2 723.8 16.7 4.2 10.0 5.2 3.0 2.8 2.2 1.7 4.0 29.2 22.4 17.5 71.8 51.7 38.8 29.8 15.83 17.54 9.05 Huhtamaki PPL 14.9 197.0 17.0 21.0 10.4 3.0 1.4 0.6 0.6 NA 0.8 6.2 5.7 NA 23.4 18.6 16.8 NA 12.44 9.27 4.45 Indian Hume Pipe Co 14.1 291.9 18.6 15.5 9.8 4.3 1.2 1.2 1.0 0.9 1.2 10.3 8.6 7.1 21.4 17.8 13.7 10.5 15.47 23.79 4.69 Shaily Engg. Plastics 6.0 717.1 6.8 3.1 17.3 7.8 3.7 NA NA NA 1.9 NA NA NA 25.0 NA NA NA 20.80 22.49 9.85 Home Décor- Wood Panels Sheela Foam 61.2 1,254.4 60.2 19.7 11.0 6.8 3.6 2.7 2.4 2.2 3.7 24.9 19.8 17.6 45.8 41.1 31.8 27.8 25.21 24.06 13.64 Century Plyboards 44.8 201.6 49.5 20.2 16.4 8.0 3.9 2.2 1.9 1.7 NA 15.1 12.7 11.1 27.5 25.8 20.8 17.5 20.70 21.76 9.80 Greenlam Industries 21.9 908.4 24.1 11.4 13.1 5.6 2.7 1.9 1.7 1.5 2.0 14.9 12.6 11.0 33.9 28.1 23.1 19.2 19.75 18.00 8.01 Greenply Industries 18.6 151.7 25.4 17.1 14.7 6.7 2.6 1.4 1.2 1.0 1.5 12.9 10.5 9.3 16.8 24.6 17.7 16.6 13.93 11.77 6.24 Uniply Industries 6.6 40.2 8.9 3.9 15.8 6.4 3.1 NA NA NA 1.8 NA NA NA 14.6 NA NA NA 8.76 26.85 3.69 Stylam Industries 6.1 749.9 7.4 3.4 15.3 5.8 2.0 NA NA NA 1.7 NA NA NA 30.2 NA NA NA 17.53 15.21 6.17 Home Décor- Paints 1,435.9 1,497.0 1,434.8 166.0 19.3 11.6 6.4 7.4 6.4 5.5 7.6 38.7 32.0 27.1 NM 62.2 51.4 43.1 24.11 30.30 14.73 India 315.0 324.4 317.7 51.2 15.8 8.8 4.9 5.2 4.5 3.9 5.4 34.9 28.5 24.3 68.3 60.7 48.3 40.3 21.88 23.54 12.14 Kansai Nerolac Paints 242.4 449.8 233.9 46.4 17.1 10.6 5.7 4.3 3.8 3.3 5.0 29.9 24.4 20.7 47.1 47.7 39.0 33.4 16.59 NA 12.70 Akzo Nobel India 79.7 1,750.5 73.9 27.2 11.1 7.1 2.9 NA NA NA 2.7 NA NA NA 39.8 NA NA NA 16.76 18.10 9.36 Home Décor- Ceramics Kajaria Ceramics 91.7 576.7 91.6 27.8 16.5 8.5 3.3 3.1 2.7 2.4 3.2 19.6 16.3 13.9 39.0 37.8 30.0 25.1 18.66 16.32 11.28 Cera Sanitaryware 35.8 2,754.5 35.5 11.9 15.0 8.3 3.8 2.7 2.3 2.0 3.0 18.8 15.6 13.4 34.7 32.0 26.6 22.7 17.52 17.00 9.92 HSIL 18.0 248.4 29.3 22.2 12.2 3.3 1.7 1.1 1.0 0.8 NA 9.9 8.0 6.8 24.2 28.0 17.0 12.5 5.05 5.46 2.26 Somany Ceramics 17.8 419.9 23.1 17.1 11.1 4.2 1.9 1.3 1.2 1.0 NA 15.7 11.8 9.7 25.3 39.5 23.4 17.7 12.85 12.20 4.61 Shankara Bldg. Product 9.3 408.1 12.6 25.5 6.9 2.9 1.7 0.5 0.4 0.4 0.5 9.5 8.4 7.0 12.6 24.6 19.5 13.6 17.45 25.28 6.85

38 Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful About BOBCAPS Consumer and Building Materials Coverage Team

Avdhoot Deshpande ▪ With over 25 years of work experience in Equity Capital Markets, he has worked with marquee names in the Investment Banking space like IL&FS, Avendus Capital, HSBC InvestDirect, President, and Centrum Capital Investment Banking - ▪ Strong network of relationships with investors and the corporate community over the years has led Equity to several marquee and successful capital market mandates

Over a decade’s extensive experience in cross border M&A, Private Equity and capital markets ▪ Twinkle Shah across a wide range of industries overseeing the full spectrum of Investment Banking services including advisory and capital raising for Indian clients Vice President ▪ Prior to joining BOBCAPS, she has worked with Elara Capital and Singhi Advisors

Prerna Mundu ▪ Work experience in M&A, PE funding and Equity Capital Markets ▪ Interned at IDFC bank (Wholesale banking) Analyst ▪ Qualification: MBA (Finance) from Faculty of Management Studies, New Delhi and B.Com graduate from St. Xavier’s College, Kolkata

▪ Work experience in M&A, PE funding and Equity Capital Markets ▪ Has interned at IDFC bank in Credit Risk Boddu Santhosh ▪ Qualification: MBA (Finance) from FMS, University of Delhi and M.Tech & B.Tech in Mechanical Engineering from IIT Madras Analyst

39 About BOBCAPS Contact Details and Disclaimer

About BOBCAPS

BOB Capital Markets (BOBCAPS), SEBI registered Category-I Merchant Bank and a wholly owned subsidiary of Bank of Baroda, one of leading India’s leading banking and financial services organization with total assets of US$ 107bn. BOBCAPS is full service Investment Bank and Broking House offering integrated solutions with high-quality financial advisory services and financing with team comprising ~80 members across Investment Banking and Institutional Equities & Broking segment and are rapidly expanding. Our services portfolio is focused across: • Equity and Debt Capital • Private Equity Advisory • Project Advisory • IPO • Institutional Equities • Stressed Assets Resolutions • M&A Advisory • Brokerage Services

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