Emami Touches Consumers the World Over
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‘Main Zandu Balmhui, darling tereliye!’ Emami touches consumers the world over | Annual report 2010-11 Corporate information Chairman Registrar & Transfer Agent Shri R.S. Agarwal M/s Maheswari Datamatics Private Limited Managing Director 6, Mangoe Lane, Kolkata-700001 West Bengal, India Shri Sushil Kr. Goenka Tel: 91-33-2243 5029 ‘Main Directors Fax No 91-33-2248 4787, Shri R.S. Goenka Email: [email protected] Shri Viren J. Shah Shri K.N. Memani Registered office Shri Y.P. Trivedi Emami Tower Shri S.K. Todi 687, Anandapur, EM Bypass Zandu Shri Amit Kiran Deb Kolkata 700 107, West Bengal Shri S.B. Ganguly Phone: +91-33-6613 6264 Padmashree Vaidya S. Chaturvedi Fax: +91-33-6613 6600 Shri Mohan Goenka E-mail: [email protected] Shri A.V. Agarwal Shri H.V. Agarwal Our presence Smt. Priti Sureka Seven factories Balmhui, Six regional offices Company Secretary & AVP-Legal 31 depots Shri A.K. Joshi Five overseas subsidiaries 65 countries Auditors M/s S.K. Agrawal & Co Website darling Chartered Accountants www.emamigroup.com Bankers Canara Bank ICICI Bank Ltd. State Bank of India HDFC Bank tereliye!’ The Hongkong and Shanghai Banking Corporation Limited Emami touches con- sumers the world over | Annual report 2010-11 Emami leverages the wisdom of the ages while being driven by modern scientific processes. It provides value-for-money products and is focused on enhancing investment returns. The Company is deeply Indian in its orientation but truly international as well, marketing products to 65 countries. The result: Emami is one of the fastest-growing Indian FMCG companies in the country’s health, personal and beauty care sector. Contents Emami touches consumers 01 Founders’ statement 12 Corporate identity 16 Snapshots 18 Awards and accolades 19 Emami’s competitive advantage 20 Performance highlights 22 Emami brands 24 Directors and profiles 34 MD’s review 38 Our strategy 40 Brand ambassadors 42 Directors’ Report & Management discussion and analysis 44 Corporate Governance Report 66 Auditors’ Report 85 Balance Sheet 88 Profit & Loss account 89 Cash Flow statement 90 Schedules 92 Balance sheet abstract 108 Consolidated accounts 109 Section 212 128 Note: For a better understanding of our business, references and comparisons have been made with consolidated financial numbers in the Annual Report, unless mentioned otherwise. Emami leverages the wisdom of the ages while being driven by modern scientific processes. It provides value-for-money products and is focused on enhancing investment returns. The Company is deeply Indian in its orientation but truly international as well, marketing products to 65 countries. The result: Emami is one of the fastest-growing Indian FMCG companies in the country’s health, personal and beauty care sector. Contents Emami touches consumers 01 Founders’ statement 12 Corporate identity 16 Snapshots 18 Awards and accolades 19 Emami’s competitive advantage 20 Performance highlights 22 Emami brands 24 Directors and profiles 34 MD’s review 38 Our strategy 40 Brand ambassadors 42 Directors’ Report & Management discussion and analysis 44 Corporate Governance Report 66 Auditors’ Report 85 Balance Sheet 88 Profit & Loss account 89 Cash Flow statement 90 Schedules 92 Balance sheet abstract 108 Consolidated accounts 109 Section 212 128 Note: For a better understanding of our business, references and comparisons have been made with consolidated financial numbers in the Annual Report, unless mentioned otherwise. Emami touches consumers the world over through innovative products, global footprint, effective communication, compassion & humanity, and healthy returns. We understand unmet consumer needs and deliver relevant products. We market these products through impactful communication, endorsements and jingles. We service growing consumer needs, whether in India, Africa or Europe. We touch the everyday lives of consumers through innovative and effective products (cool oil rather than ordinary oil or specialised men's fairness cream rather than just any fairness cream). We satisfy their every need through varying packaging options. We touch a wide consumer diversity - whether a rickshaw puller or farmer or artisan or businessmen or officer or industrialist or professional. We touch life. Emami touches consumers through... innovative pro IF IT IS EMAMI, IT MUST BE DIFFERENT. IF IT IS EMAMI, IT MUST BE SAFE. IF IT IS EMAMI, IT MUST BE EXACTLY WHAT WE WANT. THESE THREE SENTENCES ENCAPSULATE WHAT EMAMI STANDS FOR IN THE MINDS OF THOUSANDS OF OUR CONSUMERS – ACROSS CATEGORIES, PRODUCTS AND GEOGRAPHIES. The whisper is official: We don’t just create Investment in modern laboratory standards products; we create complete categories. In a and certifications (ISO 9001:2000, ISO 14001 and WHO-GMP). number of other instances, we ventured into Modern packaging standards, making categories, re-defined them through innovative products attractive on the one hand and practices and extended into adjacent product tamper-proof on the other. segments. Product endorsements by celebrities. Emami reconciled ayurvedic science and The result of these initiatives: Created a modern technology through an institutionalised wide product portfolio (personal care, hair commitment to the following: care, ayurvedic health supplements, Consistent investment in R&D across the rubificient, and ayurvedic medicine decades, combining practical experience with segments) and extended product lines. The knowledge. Company introduced new categories (men’s Periodic launch of new products in India and fairness cream, petroleum jelly with perfume, across the world through a respect for cold cream with ayurvedic elements and regulatory discipline. cooling agents in normal talcum powder). Co-ordinated working between Emami’s The Company also introduced gold and silver R&D team, Himani Ayurvedic Science elements in a product as traditional as Foundation and Zandu Foundation for Health chyawanprash to enhance effectiveness. Care. Baar baar dekho... haazar baar dekho... yeh dekhne ki cheez hai... 2 Emami Limited oducts Annual Report 2010-11 3 Emami touches consumers through... global footp IF IT IS EMAMI, IT MUST BE NATIONAL. IF IT IS EMAMI, IT MUST BE INTERNATIONAL. THESE TWO SENTENCES EXEMPLIFY WHAT EMAMI STANDS FOR – A PERFECT COMBINATION OF AN ANCIENT SOUL AND MODERN CHARACTER; AN INDIAN ORIGIN AND AN INTERNATIONAL PRESENCE. EMAMI products enjoy a wide appeal – distributors with direct reach to over in India and the world over - wherever 450,000 retail outlets in India. benign personal care products are Promotions through media (TV, radio needed. Emami products leverage a and print), advertisements on the one number of positives – high efficacy, hand and mass activities (van operations, quality consistency and consumer e-shop activities, sampling in factories relevance - emerging from a resurgent and saloons) on the other. Indian brand. Growing international focus, with Emami addresses a growing preference exports rising from ` 137 crore in 2009-10 to ` 174 crore in 2010-11, for ayurvedic products through the coupled with a proposed manufacturing following initiatives: presence overseas, starting from 2012. Presence in 65 countries, helping The result is that if there is a consumer wider and deeper product circulation from those locations. need, there is every possibility that there will be an Emami product to A strong distribution network of address it across various categories. 3,500 distributors and 2,500 sub- Yahaan wahan saare jahan mein mera raj hai..... 4 Emami Limited rint Annual Report 2010-11 5 Emami touches consumers through... effective com IF IT IS EMAMI, IT MUST BE TRANSPARENT. IF IT IS EMAMI, IT MUST BE EFFECTIVE. THESE TWO SENTENCES EMBODIES WHAT EMAMI STANDS FOR – PROMINENT AND EASILY RECOGNISABLE. 6 Emami Limited munication Meri aawaz hi pehchaan hai... EMAMI is positioned as everyone’s brand, fulfilling consumer needs through a combination of consumer research and transparent communication. Emami understands latent consumer needs, reflected in the introduction of pathbreaking products. For instance, the Company created an entire category (men’s fairness cream) where none existed and now accounts for a major market share of the segment. Emami leverages diverse media (print, television, digital and outdoor) to enhance product visibility. Emami enlisted national celebrities (Amitabh Bachchan, Shahrukh Khan, Mahendra Singh Dhoni, Kareena Kapoor and Virendra Sehwag) to endorse its products, cutting through the competitive clutter, emerging as the leading company in the country’s rubefacient, chyawanprash, balm and ayurvedic segments to utilise national celebrities. It also enlisted regional film stars like Suriya, Rituparna Sengupta, Prosenjit, Chiranjeevi, Junior NTR and Mahesh Babu to enhance its local visibility. Emami endeavours to offer the best products - in India and across world. The result is that Emami possesses a global base of millions of everyday consumers. Annual Report 2010-11 7 Emami touches consumers through... compassiona IF IT IS EMAMI, IT MUST BE RESPONSIBLE. IF IT IS EMAMI, IT MUST BE PHILANTHROPIC. THESE TWO SENTENCES EPITOMISES WHAT EMAMI STANDS FOR IN SOCIETY. 8 Emami Limited nd humanity Kisi ki muskurahato pe ho nisar, kisi ka dard mil sakey to le udhar, kisi ke vaaste ho tere dil mein pyaar.... jeena isi ka naam hai... EMAMI’s CSR activities extend beyond statutory obligations to sustainable socio-economic development. Emami’s philanthropic tradition is supported by a professional outlook, reflected in the following realities: