INDUSTRY ANALYSIS OF FMCG INDUSTRIES
SUBMITTED TO SUBMITTED BY
DR PADMA K ROHIT
(HOD-MBA DEPT)
SCHOOL OF MANAGEMENT
NIT - WARANGAL
ACKNOWLEDGEMENT
I am thankful to 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
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
EXECUTIVE SUMMARY
Products which have 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.
INTRODUCTION OF INDUSTRY
Industry is 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.
Classification of industry
Industries can be classified in a variety of ways. At the top level, industry is often
classified into sectors: Primary or extractive, secondary or 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 sector changes. 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 processing products from primary industries. This includes all factories—those that refine metals,
produce furniture, or pack farm products such as 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.
INTRODUCTION OF A COMPANY
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
BANKING INDUSTRY
State Bank of India 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
Globus Power Generation
Ltd.
New Delhi, 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
Pharmaceuticals Limited
Novartis India Limited 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
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
and Health Care Limited
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
INTRODUCTION OF FMCG INDUSTRY
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 choose the 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
LIST OF THE COMPANIES 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
3 Companies under Study
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
HINDUSTAN UNILEVER’S SHAREHOLDING PATTERN
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
Individuals (in excess of 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
Depreciation
Net Block 2,422.06 2,292.90 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
DIVIDEND SUMMARY
For the year 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
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 -
14-10-10 01-11-10 Interim 300 -
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
Announcement Date
Bonus Ratio
Record Date
Ex-Bonus
Date
30-09-1991 1:02 21-08-1991 19-07-1991
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.
ITC HISTORY OF ITC
ITC was 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.
CORPORATE INFORMATION
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
Robert Earl Lerwill Non Executive Director
Meera Shankar Non Executive Director
Anthony Ruys Non Executive Director
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
ITC’S SHAREHOLDING PATTERN
SHARE HOLDING PATTERN (% OF SHARES HELD)
CATEGORY OF
SHAREHOLDER
Total Number of
Shares
Percentage ShareHolding
(%)
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
Promoters0% Individuals
11%
Institutions34%
FII17%Govt.
0%
Others38%
Sales
Individuals (in excess of 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'14
(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 1,463.05 1,398.85 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 11,504.32
10,330.73 9,101.83 8,477.48 8,064.36
Total Liabilities 39,229.39
34,017.43 28,966.40
25,433.82 23,021.46
ASSETS
Less: Accumulated Depreciation 6,532.13 5,735.04 5,045.16 4,420.75 3,825.46
Net Block 12,012.74
11,209.34 9,099.19 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 12,388.28 10,508.24
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 20,928.73
17,591.47 14,443.57
13,045.54 12,513.22
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
ANNUAL REPORT
(Rs. in Crores)
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 3/6/2014
Final 600 Rs.6.0000 per share(600%)Dividend
17-05-13 31-05-
13
Final 525 Rs.5.2500 per
share(525%)Dividend
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 9/6/2010
Final 1,000.00
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
17-06-2005 1:02 28-09-2005 21-09-2005
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.
Nestle India continuously focuses 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
Mr. Ashok Kumar Mahindra 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
PromotersIndividuals
Institutions
FII
Govt.Others
Shareholdings
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
Unsecured Loans 1,189.48 1,049.95 724.95 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
Advances
Total Current Assets 2,301.72 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
Less: Transfer to General 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
18-02-11 21-04-11
Final 215 Declared 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
04
29-06-04 20-07-04
Interim 100 Interim 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.
CONCLUSION
This sector will continue to 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 sector will grow, though
it may not be a smooth growth path, due to the present world-wide economic slowdown, rising inflation and fall of the rupee. This sector will 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, shoe polish,
packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high
return. The Indian FMCG sector is 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 product categories 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. Growth is also likely to come from consumer 'upgrading' in the matured product categories. 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-processing industry.
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