Socratic s

8/13/2019 Socratic s

1/16

market size

Market

Growth 2006-07 2007-08 2008-09 2009-10

Personal carePersonal wash 1% 45,000.00 45,450.00 45,904.50 46,363.55

Hair Care 15% 30,000.00 34,500.00 34,845.00 35,193.45

Oral care 8% 25,000.00 27,000.00 27,270.00 27,542.70

Skin care 15% 13,000.00 14,950.00 15,099.50 15,250.50

Male grooming 20% 2,000.00 2,400.00 2,424.00 2,448.24

Feminine hygiene 20% 2,000.00 2,400.00 2,424.00 2,448.24

Household Care

Fabric Wash 4% 50,000.00 52,000.00 52,520.00 53,045.20

Household Cleaners 15% 11,000.00 12,650.00 12,776.50 12,904.27

Dish wash 7% 5,000.00 5,350.00 5,403.50 5,457.54

Food and Beverage

Edible oil 5% 120,000.00 126,000.00 127,260.00 128,532.60

Bakery 2% 80,000.00 81,600.00 82,416.00 83,240.16

Tea 8% 80,000.00 86,400.00 87,264.00 88,136.64

Dairy Products 5% 55,000.00 57,750.00 58,327.50 58,910.78

Soft Drinks 5% 45,000.00 47,250.00 47,722.50 48,199.73

Coffee 10% 6,000.00 6,600.00 6,666.00 6,732.66

Culinary Product 20% 15,000.00 18,000.00 18,180.00 18,361.80

Mineral Water 5% 10,000.00 10,500.00 10,605.00 10,711.05Chocolates 6% 10,000.00 10,600.00 10,706.00 10,813.06

Heath foods and drinks 10% 25,000.00 27,500.00 27,775.00 28,052.75

Branded Wheat Flour 8% 5,000.00 5,400.00 5,454.00 5,508.54

1) Investments required for setting up the

manufacturing facitlity

2)Operational expenses- COGS and logistics

3) Turnover that can be achieved

4) growth


2/16

target 52000

total 38,642.83

2010-11 2011-2012

already

present

should

enter money req in crores

% market

share to be

gained value46,827.18 47,295.45 7% 3,310.68 xxx traditional soaps/ sach

35,545.38 35,900.84 6% 2,154.05 x

27,818.13 28,096.31 - toothpaste/tooth pow

15,403.00 15,557.03 9% 1,400.13 x

2,472.72 2,497.45 11% 274.72 xx skin whitening/male s

2,472.72 2,497.45 6% 149.85 xx

-

-

53,575.65 54,111.41 8% 4,328.91

13,033.31 13,163.64 11% 1,448.00 x

5,512.11 5,567.23 -

-

-

129,817.93 131,116.11 9% 11,800.45

84,072.56 84,913.29 -

89,018.01 89,908.19 -

59,499.88 60,094.88 17% 10,216.13 xxx

48,681.72 49,168.54 -

6,799.99 6,867.99 412.08

18,545.42 18,730.87 6% - 55 by acquisation of Gard

10,818.16 10,926.34 -10,921.19 11,030.40 -

28,333.28 28,616.61 11% 3,147.83 28 by acquisation of MAA

5,563.63 5,619.26 -


3/16

et body wash in sachet/ focus on rural markets

der

ampoo/male soap/face wash/shaving cream

en namkeen

brand


4/16

Ratios 31-Mar-08 31-Mar-07

Quick ratio = (current assets - inventories)/Laibilities 0.54 0.45

current ratio = currents assets/current liabilities 0.95 0.84

debt to equity ratio

PER UNIT OF PRODUCTION

Electricity (Kwh/Tonne) 195.72 270.72 31.21 35.35

Furnace Oil (Lts/Tonne) 27.61 49.91

snacks dairy

investement (rs in cr) 160 100

investement (rs in billion) 1.6 1

turnover (rs in cr) 100 800

turnover (rs in billion) 1 8

growth rate 20% 5%

Category Subcategory Brand

Personal care Hair care

Chik

shampoo

Nyle herbal

shampooMeera

Badam

shampoo

Meera hair

wash

powder

Karthika

hair wash

powder

Meera

herbal hair

oil

Indica hair

colorant

Skin care Fairever


5/16

Spinz talc

Spinz

deodorants

Nyle cold

cream and

lotion

Home care

Tex toilet

cleaners

Foods Pickles Ruchi

Chinnis

Masala Chinnis

Vermicelli Chinnis

Ready to cook

Ruchi

Gulab

Jamun

Mix/Asafoe

tida

Dates and

Candies Health Plus


6/16

1E+11

10000

personal care (personal

wash, hair care, oral care)

220

2.2

1260

12.6

7.5%

Target market Positioning

Girls and women in rural

and semi-urban India Softness and manageability of hair

Women in the age group of

1835 years Herbal shampoo that nourishes the hairRural and urban women in

the age group of 1835

years

Strong and healthy hair using a

combination of flowers and herbs

Rural and urban women in


years

Traditional method of taking oil bath

once a week



years

Combination of herbs to provide soft,

lustrous and healthy hair



years

Herbs nourishing the oil, in a packaging

that makes the herbs visible in the oil

Men in late 20s and mid-30s Forever young

Contemporary women of

today

Natural ingredients including Kashmir-

saffron and milk; triple sunscreens


7/16

1826-year-old girl from

SEC A and B Mild lasting

1826year-old girl from

SEC A and B

Mild lasting fragrance that keeps you

fresh all day

Women of all age groups

and SEC classes

Nourish the skin from deep within, andreduce winter dryness, leaving the skin

smooth, flexible, and glowing even in

the harshest winters

Housewives of all age

groups Extra thick and cleans completely

Premium packs

Highest levels of taste and quality with

a South Indian tradition

Healthy alternative to

locally packed pickles

Quality, nutrition, value-for-money and

convenience pickle as a side-dish with

a meal

Key ingredients sourced

from prime locations

Highest quality ingredients used to

make the masalas and foods taste finger-

licking good

Affordable, convenient

option

Hygienic packaging and competitive

price

Affordable, convenient

option

Hygienic packaging and competitive

price

Products that stand for

health and energy

Nutritious, tasty snacks that arehygienically packed and can be

consumed whenever, wherever


8/16

100 42 75 15 275

0.0001 42 100

1 420000

30000 126000000001260

Indian QuotatiAmount> International Quotation

1 Lakh 100,000.00 100 Thousands

10 Lakhs 1,000,000.00 1 Million

1 Crore 10,000,000.00 10 Million

10 Crores 100,000,000.00 100 Million

100 Crores 1,000,000,000.00 1 Billion

Inherent within this is the unstated equation which says 1 million = 0.1 Crore (Rs 5 Cr


9/16


10/16

115

0.418182

/ 0.1) / 50 = Rs 5 Cr / 5 = 1 million


11/16

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2011-12

400 500 764 908 980

36 -18.5 13.3


12/16

as at 31 mar 08 as at 31 mar 07

sources of fundsshareholders funds:

share capital 0.98 0.98

reserve and surplus 23.78 15.00

24.76 15.98

loan funds:secured loans 11.59 11.41

unsecured loans

11.59 11.41

deferred tax liability

total funds 36.35 27.40

application of fundsfixed assets:

gross block 37.23 31.98

less:accumulated depreciation and amortization 8.64 6.55net block 28.59 25.43

add :capital work in progress including advances 0.58 1.95

29.17 27.38

Investments 7.98 2.36

Deferred Tax asset 0.32 0.32

current assets,loans and advances

Inventories 8.50 6.72

sundry debtors 2.61 2.93

cash and bank balances 0.18 0.86

other currrent asset 0.19 0.11

loan and advances 8.44 3.79

19.92 14.41

Less : Current liabilities and provision

Current liabilities 20.60 16.58

provisions 0.45 0.49

21.05 17.07

Net current assets (1.13) (2.66)

Total assets 36.34 27.40


13/16

-

8.95


14/16

31-Mar-08 31-Mar-07 31-Mar-08

Income

actual (in Rs

million)

Sales 112.39 100.00 5619.50

other income 0.35 0.48 17.50

112.74 100.48 5637.00Expenditure

Material cost and other expenses 99.72 93.61 4986.00

Interest 1.65 1.49 82.50

Depreciation and amortization 2.59 2.46 129.50

sum expenditure 103.96 97.56 5198.00

Profit/(Loss) before taxation 8.78 2.92 439.00

Provision for taxation

Current Tax 0.65 0.00

Fringe benefit tax 0.22 0.00

Deferred tax charge/credit (0.37) 0.00

0.50 0.00

Profit/(Loss) after taxation 8.78 2.42 439.00

Balance brought forward from previous year 0.71 0.00

Dividend

Proposed final dividend on equity shares 0.09 0.00

Proposed dividend on prefernce share 0.00 0.00

Corporate dividend tax

Equity 0.02 0.00Preference 0.00 0.00

Balance carried forward 8.78 3.02 439.00

EPS 0.98 0.27


15/16

31-Mar-07 2011-12

actual (in Rs

million)

items as %

of sales

100.00% 5000.00 100.00% 9800

0.31% 24.00 0.48%

100.31% 5024.00 100.48%

88.73% 4680.50 93.61% -11.27%

1.47% 74.50 1.49%

2.30% 123.00 2.46%

92.50% 4878.00 97.56%

7.81% 146.00 2.92%

0.00% 32.50 0.65%

0.00% 11.00 0.22%

0.00% (18.50) -0.37%

0.00% 25.00 0.50%

7.81% 121.00 2.42%

0.00%

0.00% 35.50 0.71%

0.00%

0.00%

0.00% 4.50 0.09%

0.00% 0.00 0.00%

0.00%

0.00% 1.00 0.02%0.00% 0.00 0.00%

7.81% 151.00 3.02%


16/16

estimated

growth

rate 20%

WACC 12%

terminal rat 5%

values in millions Rs

year 2007 2008 2009 2010 2011 2012

revenue 5000 6000 7200 8640 10368 12441.6

Material cost and other expenses 4680.5 4986 5760 6739.2 7879.68 9455.616

Interest 74.5 82.5 105.84 127.008 152.4096 182.8915

Depreciation and amortization 123 129.5 165.6 198.72 238.464 286.1568

sum expenditure 4878 5198 6031.44 7064.928 8270.554 9924.664

taxes 25 30 36 43.2 51.84 62.208

Profit/(Loss) after taxation 97 772 1132.56 1531.872 2045.606 2454.728

change in working capital 0 0

FCF 220 901.5 1298.16 1730.592 2284.07 2740.884

Terminal Value (gordon growth

model) 41113.267

EBITDA 319.5 1014 1440 1900.8 2488.32 2985.984

EV/EBITDA ratio 20

EV 6390 20280 28800 38016 49766.4 59719.68

Documents

Socratic s