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Emami Ltd Call Transcript 2022
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Call Transcript
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cmami limited
28th March, 2022
The Manager - Listing The National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C/1, G. Block Bandra Kurla Complex, Bandra (E) Mumbai - 400 051 Scrip Code: EMAMILTD
The Manager - Listing BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400 001 Scrip Code: 531162
Dear Sirs/Madam,
Schedule of Conference Call
This is to inform you that pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Conference Call has been organized on Tuesday, 29th March, 2022, at 12:00 noon IST, on Company's recent acquisition of Dermi Cool brand. The details of the aforementioned Conference Call along with the presentation are enclosed herewith.
The aforesaid information is also disclosed on the website of the company at www.emamiltd.in.
Kindly take the same in your records.
Thanking You, Yours Sincerely, For Emami Li 'ited,
Assistant Company Secretary
Encl: a/a
Emami Limited
Conference Call
Tuesday, 29th March 2022, 12:00noon IST
We are organising a conference call with the management of Emami Limited. to discuss the acquisition of Dermi Cool brand.
| Management participants | Mr. Mohan Goenka, DirectorMr. Rajesh Sharma, President Finance & IR | |
|---|---|---|
| Date / Time | Tuesday, 29th March 2022, 12:00noon IST(HK/Singapore –2:30pm, UK –07:30am, New York –2:30am) | |
| Diamond Pass | EventLink | |
| India | ||
| Universal Access | +91 22 6280 1259 / +91 22 7115 8160 | |
| International | Toll-free number | International Toll |
| USA | 18667462133 | +1 323 386 8721 |
| UK | 08081011573 | +44 203 478 5524 |
| Singapore | 8001012045 | +65 3157 5746 |
| Hong Kong | 800964448 | +852 3018 6877 |
For further information, please contact:
Percy Panthaki | Tel: +91 91679 97661 | Email: [email protected]
Emami adds to its array of brands
Key Highlights
- ▹ Acquired "Dermicool", one of the leading brands in the Prickly Heat and Cool Talc Segment.
- ▹ Dermicool was acquired earlier by Reckitt as part of its acquisition of Paras Pharmaceuticals Ltd (Now known as Reckitt Benckiser Healthcare India Pvt Ltd.) in 2011.
- ▹ The transaction envisages purchase of the brand for a total consideration of ₹432 crore (excluding taxes & duties) which will be funded through internal accruals
- ▹ Roped in McKinsey for business and commercial diligence
- ▹ Concluded the deal in shortest possible time
Category Insights
▹ **~ ₹760 cr category* growing faster than the overall talcum powder category**
- ▸ Prickly Heat and Cool Talc category grew at a CAGR of~12% (2016-2019); whereas Talcum powder category grew at a CAGR of ~5%
- ▸ Witnessed decline during COVID but expected to bounce back with double digit growth
- ▸ ~70% sales generated from rural markets
▹ Total penetration of 11-12%;
- ▸ ~77% buyers from SEC C/D/E
- ▸ West & South India penetration 7-8% vs ~13% in North and ~18% in East
- ▸ Significant headroom given 11-12% penetration vs. 45%+ for talcum powder
About the Brand
- ▹ One of the leading brands in its segment
- ▸ Provides cooling and respite from prickly heat caused during harsh summer
- ▸ 20% market share in the high growth and low penetrated "Prickly Heat & Cool Talc'' category
- ▹ Iconic brand with a strong brand equity- High consumer connect through its vastly popular jingle, 'Aaya Mausam Thande Thande Dermicool Ka'
- ▹ Net Sales of ₹ 113 crore in CY 2021
- ▹ Pan-India brand with Direct reach of 1.25 lac outlets and an Indirect reach of ~1.8 mn outlets
- ▹ High Gross Margins at 55% and EBIDTA Margins at 38%
Dermi Cool Portfolio
- ▹ Available in 4 variants - Menthol Regular, Soothing Lavender, Radiant Sandal and Fresh Aloe
- ▹ Variants available in 3 SKUs viz. 150 gm, 90 gm & 50 gm
- ▹ Priced at ₹ 125/-, ₹ 90/- & ₹ 50/- respectively
Brand Saliency
Opportunity for Emami
- ▹ Will consolidate Emami to be the #1 player in the category with 45%+ Market Share.
- ▸ Navratna Cool Talc is the #2 player; Dermicool at #3
- ▸ Strong case for co-existence of Dermicool along with Emami's existing brands
- ▹ Found strong synergies and opportunity for growth in core as well as adjacent categories
- ▸ To leverage the Emami distribution; optimising trade, consumer & media spends
- ▹ Niche category with high margins and low MNC presence is a strong strategic fit for Emami
- ▸ High growth (Pre COVID 4 year CAGR of 11%) & low penetrated category (~12%)
- ▹ Highly profitable brand - High Gross & EBIDTA Margins
- ▸ EPS accretive in 1st year of operations
- ▹ Reasonable Valuations
Market Leadership across 6 categories, post acquisition
8 Brands with 100 crore+ revenues, post acquisition
