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Fmcg industry analysis of fmcg industries
- 1. INDUSTRY ANALYSIS OFFMCG INDUSTRIES SUBMITTED TO SUBMITTED BY DR PADMA K ROHIT (HOD-MBA DEPT) SCHOOL OF MANAGEMENT NIT - WARANGAL
- 2. ACKNOWLEDGEMENT I am thankfulto Padma Mam for providing us the the task of preparing the industry analysis report . For analysis we have taken the FMCG Industries . This report has cleared many concepts of ours and in future such tasks will help us to analyse the things in corporate sector in a more lucid and easy way . Thanks once again mam for providing task like this to us ROHIT KUMAR
- 3. INDEX SR. NO. PARTICULARS 1.Executive Summary 2. Introduction of Industry/Sector 3. List of 25 Industries/Sectors 4. Introduction of FMCG Industry 5. List of Companies under FMCG Industry 6. List of Three Companies Under Study 7. Analysis of Companies 8. Hindustan Unilever 9. ITC 10. Nestle India 11. Conclusion
- 4. EXECUTIVE SUMMARY Products whichhave a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. India’s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well-established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments.
- 5. INTRODUCTION OF INDUSTRY Industryis the production of a good or service within an economy. Manufacturing industry became a key sector of production and labour in European and North American countries during the Industrial Revolution, upsetting previous mercantile and feudal economies. This occurred through many successive rapid advances in technology, such as the production of steel and coal. Following the Industrial Revolution, perhaps a third of the world's economic output is derived from manufacturing industries. Many developed and many developing/semi-developed countries (People's Republic of China, India etc.) depend significantly on manufacturing industry. Industries, the countries they reside in, and the economies of those countries are interlinked in a complex web of interdependence. Classificationofindustry Industries can be classified in a variety of ways. At the top level, industry is often classified into sectors:Primary or extractive, secondaryor manufacturing, and tertiary or services. Some authors add quaternary (knowledge) or even quinary (culture and research) sectors. Over time, the fraction of a society's industry within each sectorchanges. They are- Sector Definition Primary This involves the extraction of resources directly from the Earth; this includes farming, mining and logging. They do not process the products at all. They send it off to factories to make a profit. Secondary This group is involved in the processingproducts from primary industries. This includes all factories—those that refine metals, producefurniture, or pack farm products suchas meat. Tertiary This group is involved in the delivery and sale of goods. They include truck drivers and retail workers, for example. Quaternary This group is involved in the research of science and technology and other high level tasks. They include scientists, doctors, and lawyers.
- 6. INTRODUCTION OF ACOMPANY A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take various forms such as: Voluntary associations which may nonprofit organization A group of soldiers Business entities with an aim of gaining a profit Financial entities and banks A company or association of persons can be created at law as legal person so that the company in itself can accept Limited liability for civil responsibility and taxation incurred as members perform (or fail) to discharge their duty within the publicly declared "birth certificate" or published policy because companies are legal persons, they also may associate and register themselves as companies - often known as a corporate group. When the company closes it may need a "death certificate" to avoid further legal obligations. LIST OF 25 INDUSTRIES/SECTORS INDUSTRY 5 COMPANIES LOCATION CEMENT INDUSTRY Binani Cement Ltd Kolkata, West Bengal JK Lakshmi Cement Ltd Sirohi Dist, Rajasthan UltraTech Cement Limited Mumbai, Maharashtra Ambuja Cements Limited Junagadh ,Gujarat Shree Cement Ltd. Beawar, Rajasthan PAINT INDUSTRY Kansai Nerolac Paints Ltd. Mumbai, Maharashtra Dulux India Paints Gurgaon ,Haryana Asian Paints India Santacruz (E), Mumbai Berger Paints Kolkata, West Bengal Shalimar Paints Mumbai, Maharashtra
- 7. BANKING INDUSTRY State Bank ofIndia Mumbai, Maharashtra ICICI Bank Ltd. Vadodara, Gujarat Axis Bank Ltd. Ahmedabad, Gujarat HDFC Bank Ltd. Mumbai, Maharashtra IDBI Bank Ltd Mumbai, Maharashtra AUTOMOBILE INDUSTRY Mahindra & Mahindra Limited Mumbai, Maharashtra Maruti Suzuki India Ltd New Delhi, Delhi Tata Motors Limited Mumbai, Maharashtra Swaraj Mazda Ltd Nawanshahar, Punjab Ashok Leyland Limited Chennai, Tamil Nadu PAPER INDUSTRY Agio Paper & Industries Ltd Kolkata, West Bengal Bio Green Papers Ltd. Hyderabad, Andhra Pradesh J K Paper Limited Tapi, Gujarat Rainbow Papers Ltd Ahmedabad, Gujarat Genus Paper Products Ltd. Moradabad, Uttar Pradesh POWER (ENERGY) SECTOR Krisons Electronic Systems Ltd. New Delhi, Delhi Star Delta Transformers Ltd Bhopal, Madhya Pradesh Maurya Industrial Resources Ltd. New Delhi, Delhi
- 8. Globus Power Generation Ltd. NewDelhi, Punjab Epic Energy Ltd. Mumbai, Maharashtra TELECOM SECTOR Bharti Airtel New Delhi, Delhi Tata Communications Ltd Mumbai, Maharashtra Spice Communications Ltd. New Delhi, New Delhi Reliance Communications Ltd. Mumbai, Maharashtra Idea Cellular Ltd. Gandhinagar, Gujarat COAL INDUSTRY Neyveli Lignite Coorporation Ltd. Chennai, Tamil Nadu Eastern Coalfields Limited Burdwan, W.B. Coal India ltd. Kolkata, West Bengal Singareni Collieries Company Ltd. Hyderabad Mahanadi Coalfields ltd. Brajraj Nagar, Brajrajnagar REALTY/ESTATE SECTOR DLF Limited Gurgaon, Haryana Pearl Apartments Ltd. New Delhi, Delhi Alchemist Realty Ltd Mumbai, Maharashtra Omaxe Limited Gurgaon, Haryana Phoenix Township Ltd. Panaji, Goa PHARMACEUTICAL SECTOR Cipla Ltd. Mumbai, Maharashtra Dr. Reddy's Laboratories Limited Hyderabad, Andhra Pradesh Wyeth Ltd. Mumbai, Maharashtra GlaxoSmithKline Mumbai, Maharashtra
- 9. Pharmaceuticals Limited Novartis IndiaLimited Mumbai, Maharashtra OIL & GAS SECTOR Indian Oil Corporation Ltd. New Delhi, Delhi Bharat Petroleum Corporation Limited Mumbai, Maharashtra Oil India ltd. Noida Oil and Natural gas Corporation Dehradun Gujarat State Petroleum Corporation Gandhinagar, Gujarat STEEL INDUSTRY Jindal Steel and Power Limited Hisar, Haryana Bhushan Steel Ltd. Mumbai, Maharashtra Tata Steel Limited Mumbai, Maharashtra Steel Authority of India Limited New Delhi, Delhi Steelco Gujarat Ltd Bharuch, Gujarat NON FERROUS METAL INDUSTRY EXCEPT ALUMINIUM Novelis Pune Mcreller Industry Incorporation Mumbai, Maharashtra ALCOA New Delhi, Delhi Encore Wire Corporation Mumbai, Maharashtra Olin Corporation New Delhi, Delhi IT SECTOR Infosys Technologies Ltd. Bengaluru, Karnataka TECH MAHINDRA Mumbai, Maharashtra Tata Consultancy Services Mumbai, Maharashtra Aplab Ltd. Thane, Maharashtra
- 10. HCL Technologies Ltd.New Delhi, Delhi ALUMINIUM SECTOR HINDALCO Mumbai, Maharashtra NALCO Bhubaneswar PG Foils Pali, Rajasthan Hind Aluminium Mumbai, Maharashtra Sacheta metals Mumbai, Maharashtra TYRE SECTOR Apollo Tyres Gurgaon, Haryana MRF Tyres Chennai Ceat Tyres Mumbai, Maharashtra Goodyear Faridabad Balkrishna Industry Thane, Maharashtra TEXTILE INDUSTRY Denim Fashions Ltd. Vadodara, Gujarat Kavita Fabrics Ltd. Surat, Gujarat The Birla Cotton Spinning & Weaving Mills Ltd. New Delhi, Delhi Binny Mills Ltd. Chennai, Tamil Nadu Reid & Taylor (India) Ltd Mumbai, Maharashtra FMCG SECTOR ITC Limited Kolkata, West Bengal Marico Ltd Mumbai, Maharashtra Britannia Industries Ltd Kolkata, West Bengal Nestle India Ltd New Delhi, Delhi Hindustan Unilever Limited Mumbai, Maharashtra HEALTHCARE SECTOR GlaxoSmithKline Consumer Healthcare Ltd Nabha, Punjab Piramal Healthcare Ltd Mumbai, Maharashtra Procter & Gamble Hygiene Mumbai, Maharashtra
- 11. and Health CareLimited Amrutanjan Health Care Ltd. Chennai, Tamil Nadu Cadila Healthcare Limited Ahmedabad, Gujarat CONSUMER DURABLES SECTOR Samsung India Electronics Pvt. Ltd. Gurgaon, Delhi Whirlpool Gurgaon, Delhi Philips India Limited Chennai, Tamil Nadu LG Electronics Greater Noida, U.P. Godrej Industries Limited Vikhroli, Mumbai PSU SECTOR Bengal Chemicals & Pharmaceuticals Kolkata, West Bengal Central Warehousing Corporation Hauz Khas, New Delhi Eastern Coalfields Burdwan, W.B. Bharat Earth Movers Byculla, Mumbai Central Inland Water Transport Corporation Kolkata, West Bengal AVIATION SECTOR Kingfisher Airlines Ltd Bengaluru, Karnataka SpiceJet Ltd. Gurgaon, Haryana Jet Airways (India) Ltd. Mumbai, Maharashtra Indigo/Deccan Aviation ltd. Gurgaon, Haryana Air Charter India New Delhi, Delhi HOTEL (HOSPITALITY) SECTOR Hotel Leela Venture Limited Mumbai, Maharashtra Taj GVK Hotels and Resorts Hyderabad Royal Orchid Bangalore, Karnataka Jindal Hotels Vadodara, Gujarat
- 12. INTRODUCTION OF FMCGINDUSTRY Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. Main characteristics of FMCGs: From the consumers' perspective: Frequent purchase Low involvement (little or no effort to choosethe item – products with strong brand loyalty are exceptions to this rule) Low price From the marketers' angle: High volumes Low contribution margins Extensive distribution network ITC Hotels New Delhi, Delhi ACCOUNTING COMPANY (INCLUDING BIG-4) Ernst & Young Kolkata, West Bengal KPMG Mumbai, Maharashtra Arthur Anderson Dublin, Republic of Ireland PWC Mumbai, Maharashtra Delloite Ahmedabad, Gujarat
- 13. LIST OF THECOMPANIES UNDER THE FMCG SECTOR Hindustan Unilever ITC Ltd. Pidilite Industries Amul Godrej Consumer Products Limited Dabur India Ltd. Emami Colgate Palmolive India Ltd. Zydus Wellness Britannia GlaxoSmithKline Consumer Healthcare Ltd. (India) Wipro Consumer Care & Lighting Ltd. Marico CavinKare Parle Agro Haldiram's Nirma Himalaya Healthcare Ltd Nestle India Cadbury India
- 14. 3 Companies underStudy Hindustan Unilever ITC Ltd. Nestle India ANALYSIS HINDUSTAN UNILEVER LIMITED HISTORY OF HINDUSTAN UNILEVER LIMITED PRODUCTS OF HUL – 1) BEVERAGES 2) FOOD 3) CLEANING AGENTS 4) WATER PURIFIERS 5) PERSONAL CARE NAME DESIGNATION Mr. Harish Manwani Chairman Mr. Sanjiv Mehta CEO and Managing Director Mr. P.B. Balaji Chief Financial Officer Mr. Pradeep Banerjee Chief Executive-Supply Chain Mr. Aditya Narayan Independent Director Mr. S. Ramadorai Independent Director Mr. O.P.Bhatt Independent Director Dr. Sanjeev Misra Independent Director
- 15. HINDUSTAN UNILEVER’S SHAREHOLDINGPATTERN SHARE HOLDING PATTERN (% of Shares Held) CATEGORY OF SHAREHOLDER Total Number of Shares Percentage Share Holding (%) Promoter Foreign Promoter 1,45,44,12,858 67.24 Total Promoter 1,45,44,12,858 67.24 Non Promoter Institutions Mutual Funds / UTI 44,62,582 0.21 FI/Bank/Insurance 8,41,01,967 3.88 Govt 20 0 FII 31,53,92,703 14.58 Total Institutions 40,39,57,272 18.67 Non-Institution Bodies Corporate 2,18,58,599 1.01 Individuals (upto Rs. 1 lakh) 26,80,29,610 12.39 Promoters, 52.5 Individuals, 14.17 Institutions, 10.31 FII,19.43 Govt., 0 Others, 3.59
- 16. Individuals (in excessof Rs. 1 lakh) 53,25,530 0.25 NRIs/OCBs 76,27,325 0.35 Others 27,52,51,746 12.73 Total Non-Institution 30,47,37,670 14.09 Total Non Promoter 70,86,94,942 32.76 Total 2,16,31,07,800 100 FINANCIAL RESULT BALANCE SHEET Parameters MAR'14 MAR'13 MAR'12 MAR'11 MAR'10 (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) EQUITY AND LIABILITIES Share Capital 216.27 216.25 216.15 215.95 218.17 Shareholder's Funds 3,277.05 2,674.02 3,512.93 2,659.52 2,583.52 Deferred Tax Assets / Liabilities -161.73 -204.78 -214.24 -209.66 -248.82 Other Long Term Liabilities 278.82 476.25 329.69 219.2 0 Long Term Provisions 838.69 706.34 666.95 663.87 0 Total Non-Current Liabilities 955.78 977.81 782.4 673.41 -248.82 Trade Payables 5,793.89 5,167.69 4,622.96 5,009.05 5,222.99 Current Liabilities Other Current Liabilities 852.94 616.15 546.77 554.59 68.67 Short Term Provisions 1,957.01 1,872.02 1,278.97 1,056.43 1,441.55 Total Current Liabilities 8,603.84 7,655.86 6,448.70 6,620.07 6,733.21 Total Liabilities 12,836.67 11,307.69 10,744.03 9,953.00 9,067.91 ASSETS Gross Block 4,442.85 4,134.20 3,811.68 3,759.62 3,581.96 Less: Accumulated 2,020.79 1,841.30 1,664.21 1,590.52 1,419.85
- 17. Depreciation Net Block 2,422.062,292.90 2,147.47 2,169.10 2,162.11 Capital Work in Progress 312.08 205.32 205.13 216.59 273.96 Intangible assets under development 7.7 10.32 10.32 72.17 0 Non Current Investments 636.17 548.03 186.31 120.58 99.84 Long Term Loans & Advances 605.51 384.29 401.27 400.31 0 Other Non Current Assets 0.68 296.84 0 0 0 Total Non-Current Assets 3,984.20 3,737.70 2,950.50 2,978.75 2,535.91 Total Reserves 3,018.09 2,419.50 3,261.01 2,415.03 2,362.19 Current Assets Loans & Advances Currents Investments 2,457.95 1,782.63 2,251.90 1,140.09 1,164.24 Inventories 2,747.53 2,526.99 2,516.65 2,810.77 2,179.93 Cash and Bank 2,220.97 1,707.89 1,830.04 1,628.47 1,892.21 Other Current Assets 240.05 204.53 219.69 178 16.62 Short Term Loans and Advances 369.54 514.47 296.26 273.71 607.4 Total Current Assets 8,852.47 7,569.99 7,793.53 6,974.25 6,532.00 Net Current Assets (Including Current Investments) 248.63 -85.87 1,344.83 354.18 -201.21 Total Current Assets Excluding Current Investments 6,394.52 5,787.36 5,541.63 5,834.16 5,367.76 Total Assets 12,836.67 11,307.69 10,744.03 9,953.00 9,067.91 Contingent Liabilities 896.13 768.87 743.67 748.96 468.49 Book Value (in Rs.) 14.95 0 16.08 12.18 11.82 Adjusted Book Value (in Rs.) 14.95 0 16.08 12.18 11.82
- 18. DIVIDEND SUMMARY For theyear ending March 2014, Hindustan Unilever has declared an equity dividend of 1300.00% amounting to Rs 13 per share. At the current share price of Rs 757.50 these results in a dividend yield of 1.72%. The company has a good dividend track report and has consistently declared dividends for the last 5 years. ANNUAL REPORT Results Summarised Profit and Loss Account (Rs. crores) For the year ended For the year ended 31st March, 2014 31st March, 2013 Sale of products less excise duty 27,408.29 25206.38 Other operational income 610.84 603.83 Total Revenue 28,019.13 25,810.21 (Rs. crores) For the year ended For the year ended 31st March, 2014 31st March, 2013 Revenue from operations, net of excise 28,019.13 25,810.21 Profit before exceptional items and tax 4,799.71 4,349.48 Profit for the year 3,867.49 3,796.67 Dividend (including tax on distributed profits) Transfer to General Reserve (386.75) (379.67) Profit and loss balance carried forward 743.05 535.28
- 19. Operating Costs (23,543.87)(21,806.46) Profit before Depreciation, Interest, Tax (PBDIT) 4,475.26 4003.75 Depreciation (260.55) (236.02) Profit after Interest & Tax (PBIT) 4,214.71 3767.73 Other Income (net) 585.00 581.75 Profit before exceptional items 4,799.71 4349.48 Exceptional items 228.68 608.40 Profit Before Tax (PBT) 5,028.39 4957.88 Taxation (1,160.90) (1,161.21) Profit for the year 3,867.49 3,796.67 Basic EPS (Rs.) 17.88 17.56 DIVIDEND DECLARED Announcement Effective Dividend Dividend Remarks Date Date Type (%) 28-04-14 11-06-14 Final 750 Rs.7.5000 per share(750%)Final Dividend 15-10-13 31-10-13 Interim 550 Rs.5.5000 per share(550%)Interim Dividend 29-04-13 10-07-13 Final 600 Rs.6.0000 per share(600%)Final Dividend 18-10-12 01-11-12 Interim 1,250.00 Rs.4.5000 per share(450%)Interim Dividend & Rs.8.0000 per share(800%)Special Dividend 1/5/2012 4/7/2012 Final 400 - 17-10-11 04-11-11 Interim 350 - 9/5/2011 8/7/2011 Final 350 -
- 20. 14-10-10 01-11-10 Interim300 - 25-05-10 8/7/2010 Final 350 - 15-10-09 06-11-09 Interim 300 - 11-05-09 12-06-09 Final 400 - 15-07-08 4/8/2008 Interim 350 - 13-02-08 17-03-08 Final 300 - 23-10-07 07-11-07 Interim 300 Dividend (Platinum Jubliee) 23-07-07 7/8/2007 Interim 300 - 20-02-07 20-04-07 Final 300 AGM 10-07-06 8/8/2006 Interim 300 - 14-02-06 28-04-06 Final 250 AGM 25-07-05 8/8/2005 Interim 250 - 11-02-05 7/6/2005 Final 250 AGM 20-07-04 13-08-04 Interim 250 - 17-02-04 14-05-04 Final 300 - 16-07-03 14-08-03 Interim 250 - 16-10-01 20-06-03 Final 276 Bonus issue of Debentures & Special Dividend 276% 29-01-03 4/4/2003 Final 300 AGM 10-07-02 7/8/2002 Interim 250 - BONUS SUMMARY The last bonus that Hindustan Unilever had announced was in 1991 in the ratio of 1:2.The share has been quoting ex-bonus from July 19, 1991. Bonus History Announceme nt Date Bonus Ratio Record Date Ex- Bonus Date 30-09-1991 1:02 21-08-1991 19-07- 1991
- 21. 22-06-1987 1:01 -- 22-06-1983 3:05 - - 22-06-1979 1:03 FUTURE PROSPECTS OF HUL India is a fast developing country with a huge population whose per capita income is growing rapidly and there is huge opportunity for FMCG companies. The opportunities are as follows: Increasing per capita income is driving FMCG growth in India India’s consuming class is growing rapidly Changing consumption pattern: Per capita income of Indian customer is increasing and FMCG products are relatively elastic in nature hence the expected sale should increase. FUTURE PROJECTS OF HUL: As competition is increasing day by day, it’s difficult to maintain the leader position & to further strengthen the distribution network HUL made a project called project SHAKTI which will serve the following purpose: A) To Reach: Small, scattered settlements and poor infrastructure make distribution difficult. Over 500,000 villages not reached directly by HUL. B) To Communicate: Low literacy hampers effectiveness of print media. Poor media-reach: 500 million Indians lack TV & radio. C) To Influence: Low category penetration, consumption. C) Awareness: Per capita consumption in Unilever categories is 33% of urban level.
- 22. ITC HISTORY OF ITC ITCwas incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited, ‘where ‘ITC’ is today no longer an acronym or an initialized form. CORPORATEINFORMATION Name Designation Yogesh Chander Deveshwar Chairman Pradeep Vasant Dhobale Executive Director Anil Baijal Non Executive Director Serajul Haq Khan Non Executive Director Sahibzada Syed Habib-ur-Rehman Non Executive Director S B Mainak Non Executive Director Pillappakkam Bahukutumbi Ramanujam Non Executive Director Krishnamoorthy Vaidyanath Non Executive Director Nakul Anand Executive Director Kurush Noshir Grant Executive Director Angara Venkata Girija Kumar Non Executive Director Sunil Behari Mathur Non Executive Director RobertEarl Lerwill Non Executive Director Meera Shankar Non Executive Director Anthony Ruys Non Executive Director
- 23. PRODUCTS OF ITC FMCG: 1)CIGARETTES 2) CIGARS 3) FOODS 4) LIFESTYLE RETAILING 5) PERSONAL CARE 6) EDUCATION AND STATIONARY. 7) SAFETY MATCHES. 8) AGARBATTIS 9) HOTELS
- 24. ITC’S SHAREHOLDING PATTERN SHAREHOLDING PATTERN (% OF SHARES HELD) CATEGORY OF SHAREHOLDER Total Number of Shares PercentageShareHolding (%) Institutions Mutual Funds / UTI 1,03,49,21,991 13.01 FI/Bank/Insurance 1,74,94,21,442 21.99 FII 1,53,03,23,687 19.24 Total Institutions 4,31,46,67,120 54.24 Non-Institution Bodies Corporate 32,90,28,616 4.14 Individuals (upto Rs. 1 lakh) 68,07,19,308 8.56 Promoters 0% Individuals 11% Institutions 34% FII 17%Govt. 0% Others 38% Sales
- 25. Individuals (in excessof Rs. 1 lakh) 13,34,06,576 1.68 NRIs/OCBs 4,45,21,939 0.56 Others 3,24,60,23,045 40.80 Total Non-Institution 3,61,95,73,600 45.50 Total Non Promoter 7,93,42,40,720 99.74 Depository Receipts 2,07,75,620 0.26 Total 7,95,50,16,340 100.00 FINANCIAL RESULTS BALANCE SHEET Parameters MAR'1 4 (Rs. Cr.) MAR'13 (Rs. Cr.) MAR'12 (Rs. Cr.) MAR'11 (Rs. Cr.) MAR'10 (Rs. Cr.) EQUITY AND LIABILITIES Share Capital 795.32 790.18 781.84 773.81 381.82 Shareholder's Funds 26,262.0 2 22,287.85 18,791.8 9 15,953.27 14,064.38 Unsecured Loans 51.00 66.40 77.32 86.58 107.71 Deferred Tax Assets / Liabilities 1,296.96 1,203.72 872.72 801.85 785.01 Other Long Term Liabilities 5.09 1.79 15.52 20.82 0.00 Long Term Trade Payables 0.00 1.32 0.00 0.00 0.00 Long Term Provisions 110.00 125.62 107.12 93.82 0.00 Total Non-Current Liabilities 1,463.051,398.85 1,072.68 1,003.07 892.72 Trade Payables 1,987.59 1,668.98 1,424.84 1,395.31 3,392.39 Current Liabilities Other Current Liabilities 3,631.88 3,528.62 3,371.27 3,067.77 122.03 Short Term Borrowings 0.14 0.00 1.77 1.94 0.00 Short Term Provisions 5,884.71 5,133.13 4,303.95 4,012.46 4,549.94 Total Current Liabilities 11,504.3 2 10,330.739,101.83 8,477.48 8,064.36
- 26. Total Liabilities 39,229.3 9 34,017.43 28,966.4 0 25,433.8223,021.46 ASSETS Less: AccumulatedDepreciation 6,532.13 5,735.04 5,045.16 4,420.75 3,825.46 Net Block 12,012.7 4 11,209.349,099.19 8,345.11 8,142.40 Capital Work in Progress 2,272.94 1,472.80 2,269.26 1,322.60 1,008.99 Intangible assets under development 22.79 14.99 7.49 10.80 0.00 Non Current Investments 2,512.17 2,000.86 1,953.28 1,563.30 1,356.85 Long Term Loans & Advances 1,480.02 1,727.97 1,193.61 1,146.47 0.00 Total Non-Current Assets 18,300.6 6 16,425.96 14,522.8 3 12,388.2810,508.24 Total Reserves 25,466.7 0 21,497.67 18,010.0 5 15,179.46 13,682.56 Current Assets Loans & Advances Currents Investments 6,311.26 5,059.43 4,363.31 3,991.32 4,370.02 Inventories 7,359.54 6,600.20 5,637.83 5,269.17 4,549.07 Cash and Bank 3,289.37 3,615.00 2,818.93 2,243.24 1,126.28 Other Current Assets 269.69 216.36 136.89 93.26 649.01 Short Term Loans and Advances 1,533.51 937.14 500.59 563.45 945.49 Total Current Assets 20,928.7 3 17,591.47 14,443.5 7 13,045.5412,513.22 Net Current Assets (Including Current Investments) 9,424.41 7,260.74 5,341.74 4,568.06 4,448.86 Total Current Assets Excluding Current Investments 14,617.4 7 12,532.04 10,080.2 6 9,054.22 8,143.20 Total Assets 39,229.3 9 34,017.43 28,966.4 0 25,433.82 23,021.46 Contingent Liabilities 361.50 466.54 287.08 255.17 285.13 Total Debt 66.54 77.67 89.12 99.20 107.71 Book Value (in Rs.) 32.95 0.00 23.97 20.55 36.69 Adjusted Book Value (in Rs.) 32.95 0.00 23.97 20.55 18.35
- 27. ANNUAL REPORT (Rs. inCrores) PROFITS 2014 2013 a) Profit Before Tax 12659.11 10684.18 b) Tax Expense - Current Tax 3791.13 2934.79 - Deferred Tax 82.77 331.00 c) Profit for the year 8785.21 7418.39 SURPLUS IN STATEMENT OF PROFIT AND LOSS a) At the beginning of the year 3788.10 1972.59 b) Add : Profit for the year 8785.21 7418.39 c) Less: - Transfer to General Reserve 880.00 750.00 - Proposed Dividend {Rs. 6.00(2013-Rs. 5.25) per share} 4771.91 4148.46 - Current Year 810.99 705.03 - Earlier year''s provision no longer required (28.68) (0.61) d) At the end of the year 6139.09 3788.10 DIVIDEND SUMMARY For the year ending March 2013, ITC has declared an equity dividend of 525.00% amounting to Rs 5.25 per share. At the current share price of Rs 355.65 these results in a dividend yield of 1.48%. ITC had last declared a dividend of 525.00% for the year ending March 2013. DIVIDEND DECLARED Announceme nt Effectiv e Dividen d Dividen d Remarks Date Date Type (%) 23-05-14 3/6/201 4 Final 600 Rs.6.0000 per share(600%)Dividend 17-05-13 31-05- 13 Final 525 Rs.5.2500 per share(525%)Dividend
- 28. 25-05-12 11-06- 12 Final 450- 20-05-11 10-06- 11 Final 445 Recommended a Special Dividend of Rs. 1.65 per Ordinary Share of Re. 1/- each and a Dividend of Rs. 2.80 per Ordinary Share of Re.1/- each. 21-05-10 9/6/201 0 Final 1,000.0 0 Special Centenary dividend of Re. 5.50 per Ordinary Share of Re 1/- each and a dividend of Re. 4.50 per Ordinary Share for the financial year ended March 31, 2010. 22-05-09 13-07- 09 Final 370 - 23-05-08 16-07- 08 Final 350 - 25-05-07 16-07- 07 Final 310 AGM 26-05-06 10-07- 06 Final 265 AGM 27-05-05 18-07- 05 Final 310 AGM 13-05-04 19-07- 04 Final 200 AGM 8/5/2003 14-07- 03 Final 150 - 14-05-02 12-07- 02 Final 135 AGM BONUS SUMMARY The last bonus that ITC had announced was in 2010 in the ratio of 1:1.The share has been quoting ex-bonus from August 3, 2010. Bonus History Announcement Date Bonus Ratio Record Date Ex-Bonus Date 18-06-2010 1:01 4/8/2010 3/8/2010
- 29. 17-06-2005 1:02 28-09-200521-09-2005 12-07-1994 1:01 06-10-1994 12-09-1994 30-09-1991 3:05 15-01-1992 12-12-1991 29-04-1989 1:01 - 31-08-1989 29-04-1980 1:05 - - FUTURE PROSPECTS OF ITC ITC has a tremendous growth prospectus in future. All business profiles except cigarettes, has a tremendous growth prospects in next two-three years down the line. Earlier ITC is used to be treated as a cigarette company and always Budget is used to be very bad for cigarette. Because with a blind eye, one is going to say that excise duty is going to get increase on the cigarettes. Now the company has shifted in their many other areas like retailing, paper, hotel, which are in fact contributing to a great extent. All their business profiles, minus cigarettes, has a tremendous growth prospects in time to come, maybe in two-three years down the line. On top of it, they have huge cash inflow, which they can productively deploy in the other areas. NESTLE HISTORY OF NESTLE INDIA Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA of Switzerland. The company has its headquarters at Gurgaon near Delhi and has seven factories spread all over India. It started its journey in India in 1912 by entering into the dairy business. Nestlé India, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR–ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita. Nestle has created brands like Nestlé Milkmaid, Nestlé Everyday, Maggi Noodles, Maggi Soups, Polo, Kit Kat, Nescafe & many more. As per the market–wise position Nestlé India stands first in instant noodles & ketchups, second in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category.
- 30. Nestle India continuouslyfocuses on understanding changing lifestyles in India. This helps it to foresee needs in its product offerings. The company innovates new product & renovates existing one providing high quality, safe food products at affordable prices. Milestones achieved CNBC Awaaz Consumer Awards has honoured Nescafe as the most preferred coffee brand. Business India has rated Nestlé India as No.1 on Return On Capital Employed amongst Super 100 companies. In 2006–2007 Nestlé India was awarded the ‘Best Exporter of Instant Coffee’, ‘Highest Exporter to Russia and CIS”, ‘Highest Exporter to Far East Countries’. In 2009 Nestle India Board approved Proposal To acquire Healthcare Nutrition Business of Specialist Foods. In 2010 Nestlé Inaugurates New Culinary Plant at Nanjangud. 2010–12 CNBC Awaaz Consumer Awards Business India has rated Nestle India as No.1 on Return on Capital Employed amongst Super 100 companies. The company has introduced products in milk segment for daily consumption and use such as Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita. CORPORATE INFORMATION NAME DESIGNATION Mr. Antonio Helio Waszyk Chairman and Non-Executive Director Mr. Etinne Benet Managing Director Mr. Shobinder Duggal Director-Finance & control and CFO Mr. Aristides Protonotarios Director - Technical Mr. Michael W.O. Garrett Non-Executive and Independent Director Mr. R. V. Kanoria Non-Executive and Independent Director
- 31. Mr. Ashok KumarMahindra Non-Executive and Independent Director Mr. Ravinder Narain Non-Executive and Independent Director Dr. Swati A. Piramal Non-Executive and Independent Director PRODUCTS OF NESTLE INDIA 1) MILK PRODUCTS AND NUTRITION 2) BEVERAGES 3) PREPARED DISHES AND COOKING AIDS 4) CHOCOLATES AND CONFECTIONERY NESTLE’S SHAREHOLDING PATTERN Promoters Individuals Institutions FII Govt. Others Shareholdings
- 32. SHARE HOLDING PATTERN(% of Shares Held) CATEGORY OF SHAREHOLDER Total Number of Shares Percentage Share Holding (%) Foreign Promoter 6,05,15,079 62.76 Total Promoter 6,05,15,079 62.76 Non Promoter Institutions Mutual Funds / UTI 4,97,791 0.52 FI/Bank/Insurance 43,29,328 4.49 Govt 39,045 0.04 FII 1,40,03,998 14.52 Other 0 0.00 Total Institutions 1,88,70,162 19.57 Non-Institution Bodies Corporate 22,06,799 2.29 Individuals (upto Rs. 1 lakh) 93,66,576 9.71 Individuals (in excess of Rs. 1 lakh) 49,41,841 5.13 NRIs/OCBs 5,03,030 0.52 Others 1,43,20,646 14.85 Total Non-Institution 1,70,30,475 17.66 Total Non Promoter 3,59,00,637 37.24 Total 9,64,15,716 100.00 FINANCIAL RESULTS BALANCE SHEET Parameters DEC'13 DEC'12 DEC'11 DEC'10 DEC'09 (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) EQUITY AND LIABILITIES Share Capital 96.42 96.42 96.42 96.42 96.42 Shareholder's Funds 2,368.75 1,798.41 1,273.96 855.41 581.27
- 33. Unsecured Loans 1,189.481,049.95 724.95 0 0 Deferred Tax Assets / Liabilities 215.47 162.08 50.22 33.27 32 Long Term Provisions 1,193.39 1,014.75 885.13 0 0 Total Non-Current Liabilities 2,598.34 2,226.78 1,660.30 33.27 32 Trade Payables 633.04 539.4 480.83 745.44 581.73 Current Liabilities Other Current Liabilities 500.25 558.03 528.7 16.23 5.86 Short Term Borrowings 0.01 0.24 245.92 0 0 Short Term Provisions 213.88 41.06 212.07 907.94 834.79 Total Current Liabilities 1,347.18 1,138.73 1,467.52 1,669.61 1,422.38 Total Liabilities 6,314.27 5,163.92 4,401.78 2,558.29 2,035.65 ASSETS Gross Block 4,903.16 4,427.56 2,552.21 1,854.70 1,640.79 Less: Accumulated Depreciation 1,523.91 1,216.44 976.46 841.96 744.59 Less: Impairment of Assets 9.94 6.85 0 0 0 Net Block 3,369.31 3,204.27 1,575.75 1,012.74 896.2 Capital Work in Progress 294.71 344.08 1,371.78 348.91 79.63 Non Current Investments 224.12 0 0 0 0 Long Term Loans & Advances 123.94 125.45 163.91 0 0 Total Non-Current Assets 4,012.55 3,673.80 3,111.44 1,361.65 975.83 Total Reserves 2,272.33 1,701.99 1,177.54 759 484.85 Current Assets Loans & Advances Currents Investments 626.96 364.86 134.37 150.68 203.26 Inventories 735.93 745.58 734.04 575.95 498.74 Cash and Bank 749.36 236.96 227.21 255.29 155.59 Other Current Assets 10.06 5.18 19.48 0 0 Short Term Loans and 95.14 49.97 59.82 151.44 138.05
- 34. Advances Total Current Assets2,301.72 1,490.12 1,290.34 1,196.65 1,059.81 Net Current Assets (Including Current Investments) 954.54 351.39 -177.18 -472.96 -362.57 Total Current Assets Excluding Current Investments 1,674.76 1,125.26 1,155.97 1,045.97 856.56 Total Assets 6,314.27 5,163.92 4,401.78 2,558.29 2,035.65 Contingent Liabilities 12.76 11.7 0 0 0 Total Debt 1,189.49 1,050.19 970.87 0 0 Book Value (in Rs.) 0 0 132.13 88.72 60.29 Adjusted Book Value (in Rs.) 245.67 0 132.13 88.72 60.29 ANNUAL REPORT (Rs. in Millions) 2013 2012 Net Sales 90,619.0 83,022.6 Add: Other Operating Income 391.5 322.7 Less: Operating Expenses 74,114.3 67,536.5 Less: Impairment loss on fixed assets 99.4 68.5 Less: Net provision for contingencies from operations) 413.1 339.9 Profit from operations 16,383.7 15,400.4 Add: Other Income 830.9 310.3 Less: Finance costs 365.1 266.0 Less/Add: Net provision for contingencies - others 207.4 (81.5) Profit before exceptional items and taxation 16,642.1 15,526.2 Add: Exceptional items 138.1 - Less: Tax Expense 5,608.9 4,846.9 Net Profit after tax 11,171.3 10,679.3 Add: Profit Brought Forward 10,745.5 6,568.9 Less: Interim Dividends 3,471.0 4,676.2 Less: Final Dividend Proposed 1,205.2 - Less: Dividend Distribution Tax 794.7 758.6
- 35. Less: Transfer toGeneral Reserve 1,117.1 1,067.9 Earnings per Share (Rs.) 115.87 110.76 Dividend per Share (Rs.) 48.50 48.50 DIVIDEND SUMMARY For the year ending December 2013, Nestle India has declared an equity dividend of 485.00% amounting to Rs 48.5 per share. At the current share price of Rs 6517.15 these results in a dividend yield of 0.74%. The company has a good dividend track report and has consistently declared dividends for the last 5 years. Dividend Declared Announceme nt Effectiv e Dividen d Dividen d Remarks Date Date Type (%) 3/9/2014 15-09- 14 Interim 300 Rs.30.0000 per share (300%) Second Interim Dividend 14-02-14 15-05- 14 Final 125 Rs.12.5000 per share(125%)Final Dividend 26-04-14 15-05- 14 Interim 125 Rs.12.5000 per share(125%)Interim Dividend 18-10-13 01-11- 13 Interim 180 Rs.18.0000 per share(180%)Second Interim Dividend 8/7/2013 31-07- 13 Interim 180 Rs.18.0000 per share(180%)Interim Dividend 15-02-13 25-02- 13 Interim 125 Rs.12.5000 per share(125%)Third Interim Dividend 07-12-12 12-12- 12 Interim 180 Rs.18.0000 per share (180%) Second Interim Dividend 17-07-12 1/8/201 2 Interim 180 Rs.18.00 per share(180%)Interim Dividend 14-02-12 21-03- 12 Final 125 - 24-11-11 12-12- 11 Interim 270 Second Interim Dividend
- 36. 18-02-11 21-04- 11 Final 215Declared an interim dividend of Rs. 9.00 per Equity Share for the year 2011, which shall be paid on and from May 06, 2011 along with Final Dividend for 2010 of Rs. 12.50 per Equity Share. 19-10-10 03-11- 10 Interim 270 Second Interim Dividend 19-02-10 23-04- 10 Final 215 Final Dividend Rs. 12.50 (125%) per share + Interim Dividend of Rs. 9/- (90%) per share. 15-10-09 04-11- 09 Interim 270 Second Interim Dividend 9/3/2009 29-04- 09 Final 210 210% Dividend (120% Final Div. & 90% Interim Div.) & A.G.M. 31-10-08 14-11- 08 Interim 220 (2nd Int.Div.145% & Special Div.under Sch. of Arrangement 75%) 4/3/2008 23-04- 08 Final 110 Total Dividend is Rs. 11 i.e Final Dividend for 2007 Rs. 2.50 & Interim Dividend for the year 2008 Rs. 8.50. 26-11-07 13-12- 07 Interim 240 Second Interim Dividend 5/3/2007 20-03- 07 Interim 80 (15% Third Interim Dividend for the year 2006 + 65% Interim Dividend for the year 2007) The Board has not recommended any final dividend for 2006. 21-11-06 08-12- 06 Interim 180 Second Interim Dividend 7/3/2006 19-04- 06 Final 80 AGM {interim dividend of Rs. 6/- for F.Y 2006-2007 + Rs.2/- as Final Dividend for the year 2005.) 18-11-05 09-12- 05 Interim 180 Second Interim Dividend 14-03-05 20-04- 05 Final 95 AGM & Dividend 95% (Interim Dividend for 2005 of Rs 5/- per equity share and the Special Dividend for 2004 of Rs 4.50 per equity share) 23-11-04 10-12- Interim 100 Second Interim Dividend
- 37. 04 29-06-04 20-07- 04 Interim 100Interim Dividend 10-11-03 10-12- 03 Interim 100 Second Interim Dividend 8/7/2003 5/8/200 3 Interim 100 - BONUS SUMMARY The last bonus that Nestle India had announced was in 1996 in the ratio of 1:2.The share has been quoting ex-bonus from July 15, 1996. Bonus History (Nestle India) Announcement Date Bonus Ratio Record Date Ex-Bonus Date 23-04-1996 1:02 13-08-1996 15-07-1996 30-09-1993 1:04 16-10-1993 10-09-1993 18-07-1989 3:05 - 09-10-1989 18-07-1986 1:01 - - 18-07-1983 3:05 FUTURE PROSPECTS OF NESTLE INDIA Nestle is focused on product expansion and improvement of distribution efficiency. The Dairy business is being expanded and is expected to drive growth in the long run, although short-term profitability may be impacted in the investment stage. The company’s entry into the mineral water segment is a concern, as the segment is already overcrowded and the company faces stiff competition especially from the Cola manufacturers. Acquisition of an established brand could catapult Nestlé’s position in the segment. In categories like beverages, culinary products and chocolate confectionery, the company is looking at driving growth through launch of smaller SKU’s, thus enabling affordability to a wide section of the population.
- 38. CONCLUSION This sectorwill continueto see growth as it depends on an ever-increasing internal market for consumption, and demand for these goods remains more or less constant, irrespective of recession or inflation. Hence this sectorwill grow, though it may not be a smoothgrowth path, due to the present world-wide economic slowdown, rising inflation and fall of the rupee. This sectorwill see good growth in the long run and hiring will continue to remain robust. Fast Moving Consumer Goods (FMCG)goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoepolish, packaged foodstuff, and household accessories and extends to certain electronic goods. Theseitems are meant for daily of frequent consumption and have a high return. The Indian FMCG sectoris the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most productcategories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growthis also likely to come from consumer 'upgrading' in the matured productcategories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processingindustry.