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श्रुtiप्रgya

Consumer SectorInvestment Banking Newsletter

March 2019

Wisdom from News

“We bring you an exclusive interview with Mr. AvinAgrawal, Director who has notched up his effortsin transforming Haldiram’s International Pvt. Ltd.from a promoter driven company to a promoter –led and professionally managed company”

A Namkeen Crunch - Glocal Journey

Dear Reader,

It gives me immense pleasure to share the inaugural edition of BOBCAPSशु्रti प्रgya, Investment Banking Newsletter covering Consumer segment. शु्रti प्रgyais an attempt at understanding what has transpired in industry during FY18-19.Our endeavour is to publish शु्रti प्रgya as a quarterly newsletter covering theindustry deal dynamics, trends that could shape the future of the industry.

This newsletter covers the following sub-segments – FMCG, Agri, FoodProcessing, Beverages, Consumer Durables and Home Decor.

Trends such as increasing urbanization, rising rural income and a greaterpenetration of technology are driving consumption and fuelling the growth ofconsumer sector in India. While traditionally this sector has been dominated byunorganized players; however, the entry of foreign and organized players in thepast few years has helped in faster evolution and expansion of the entireindustry. The competition seems to be increasing with new companies, many ofit being start-ups coming out with niche products in the sector challengingbigger companies to expand its product portfolio or risk losing its market share.The sector is garnering interest from Private Equity, Institutional Funds andInternational companies.

The Interim Budget 2018-19 initiatives are expected to increase the disposableincome in the hands of the common people, especially in the rural area, whichwill be beneficial for the sector.

We hope that this newsletter is informative and adds value to your business andwe look forward to receiving your feedback to help us improvise on our futureeditions.

Happy Reading...

Warm Regards,Avdhoot DeshpandePresident, Investment Banking – Equity

Inside this Edition

Current Trends15

Key Deals 201820

Case Studies22

Capital Expenditure32

25 Transactions

33 Public Market Data

Foreword

FMCG Market Overview3

9 Company News

39 About BOBCAPS

President’s Note

Industry Speak5

31.6 33.3 35.7 38.843.1

49.0 52.8

68.4

83.3

103.7

2011 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F

3

FMCG Revenue Trends (US$ bn) Urban – Rural industry breakup (FY 17)

55%

45%

FMCG Market OverviewTrends and Growth Drivers

TotalUS$ 52.8bn

FMCG is the fourth largest sector in the Indian economy

The online market was US$ 20bnin 2017 and is forecasted to reachUS$ 45bn in 2020

Shift to organized market

▪ Organised sector growth is expected to grow as the share of

unorganised market in the FMCG sector fell with increased level

of brand consciousness among customers

▪ Modern retail will augment the growth of organised FMCG sector

▪ Post GST and demonetisation, modern trade share grew to 10% of

overall FMCG revenue

Increase in penetration

▪ Low penetration levels of branded products in categories like

instant foods indicating a scope for volume growth

▪ Increasing internet penetration, rising digital maturity along with

developing infrastructure has helped boost online transactions

Easy access

▪ Availability of products has become way more easier as internet and

different channels of sales has made the accessibility of desired

product to customers more convenient at required time andplace

▪ Online grocery stores and online retail stores like Grofers,

Flipkart, Amazon making the FMCG products more readily

available

Rural consumption▪ Total rural income, which is currently at around US$ 572bn, is

projected to reach US$ 1.8tn by FY 21. India’s rural per capitadisposable income is estimated to increase at a CAGR of 4.4% toUS$ 631 by 2020

▪ Demand for quality goods and services has been going up in ruralareas of India, on the back of improved distribution channels ofmanufacturing and FMCG companies

Urban areaRural area

Growth Drivers

▪ The standard deduction of ₹ 40,000 for transport allowance and reimbursement of miscellaneous

medical expenses, will increase the disposable income in the hands of the common people

▪ The customs duty on import of products such as shaving and after-shave preparations, fruit juices

and vegetable juices, edible oils of vegetable origin are expected to boost the sector

▪ The rate of GST on services lies between 0-18% and on goods lies between 0-28%

▪ Prices of commodities in the FMCG sector, like soaps, shampoo, detergents, biscuits, savoury

snacks etc. decreased after the implementation of GST, leading to a 3-8% decrease in prices of

goods at modern retail stores

▪ The GST is expected to transform logistics in the FMCG sector into a modern and efficient model as

all major corporations are re-modelling their operations into larger logistics and warehousing

▪ Warehousing cost for FMCG companies is estimated to fall by 25-30% backed by the implementation

of the GST. The number of warehouses will decrease from ~50 to ~35 for FMCG companies, ~30 to

~12 for Consumer durable companies and the size of warehouses will become larger

▪ FSB would reduce prices of food grains for Below Poverty Line (BPL) households, allowing them tospend resources on other goods and services, including FMCG products

▪ This is expected to trigger higher consumption spends, particularly in rural India, which is an important

market for most FMCG companies

▪ Government has initiated Self Employment and Talent Utilisation (SETU) Scheme with an

investment of US$ 163.7mn, to boost young entrepreneurs

▪ 51% FDI is approved by government in multi-brand retail to boost the nascent organised retail

market

▪ 100% FDI in the cash and carry segment and in single-brand retail

▪ Industrial license is not required for almost all food and agro-processing industries, barring certain

items such as beer, potable alcohol and wines, cane sugar and hydrogenated animal fats and oils

as well as items reserved for exclusive manufacture in the small-scale sector

Union Budget 2018-19

Goods and Service Tax (GST)

Food Security Bill (FSB) and SETU

Scheme

FDI and License Rules

FMCG Market OverviewPolicy and Regulation Framework

4

5

Industry SpeakHaldiram’s Foods International Pvt. Ltd.

A Namkeen Crunch - Glocal Journey

Facing Futurethe

Namkeen, Sweets, Drinks and more.... in conversation with Avin Agrawal, Director taking us through their

journey from Local to Global brand, the fact that their local actions are inextricably linked to a broader global context. Lookingat globalized consumerism as a root cause of the acceleration in savoury snacks market, his optimism is underpinned by:▪ New product mix▪ Growth in untapped rural India with right distribution channel▪ Sustainable earnings potential in international business▪ Potent margin boosters in multiple cost rationalisation initiatives across divisions & geographies

▪ Haldiram’s story began seven decades ago in Bikaner, Rajasthan, where it started from a modest namkeen and sweets shop

▪ Shifted its base to Nagpur in 1970s, promoted by 2nd generation of Shri Shiv Kisan Agrawal’s descendants▪ Offers its products through retail outlets and own restaurants in India (central, southern and western regions) and

International markets▪ The company is headquartered in Nagpur, Maharashtra with additional offices in Mumbai, Bangalore and Chennai

Industry SpeakA Namkeen Crunch

6

Products Flavours SKUs

Namkeen Aloo Bhujia, BhujiaSev, KhattaMeetha, Moong Dal, Mixture, PhalhariChiwda, Salted / Masala Peanuts, Nimbu Masala etc. Region specific18 grams and

above

Sweets/Biscuits

SoanPapdi, Gulab Jamun, MalaiChum , Laddoo, KajuKatli, Kaju Roll, Kalakand, Orange Burfee, Rasgulla, Rasmalai, Milk Cake, etc.. Cookies (Assorted, Coconut, Atta, Gorus

New flavours to be added

250 grams and above

Modern Snacks

Banana Chips (Black Pepper, Red Chilli, Salted), Poppits (Cheese, Pink Pepper, Salted), Soya Sticks, Taka-Tak (Tomato, Noodle Masala, Chatpata)Western flavours

30 grams and above

FrozenReady to Eat

Frozen Snacks (Kachori, Samosa, Aloo bonda /Tikki, Puri, Idly, Cutlet). Frozen Curries (Dal Tadka, Dum Aloo, Bhindi Masala, Mutter/Palak Paneer) Frozen Rice (Dum Biryani, Jeera Rice, Peas Rice)

New flavours to be added

30 grams and above

Drinks Kesar Badam Treat, KhusSharbat, Squash (Kala Khatta, Lemon, Aam Panna, Orange, Pineapple), Thandai, Rose Treat and Strawberry Crush Indian flavours180 ml. 500 ml

and 1L

What is your outlook on Indian savory snacks market and how isHaldiram’s addressing the changing landscape?

It has undergone significant change over last two decades, with the entryof numerous international and domestic players with their distinctivebrands and flavours. By 2021 the snacks market size is expected to reach~INR 729,875mn. Indians are known for their taste buds due to the variedculture and region-specific flavours, so is the case with snacking. Therehas been increasing democratization of preferences and many hithertoregional snack items have found nationwide acceptance. The savourysnacks market has been gaining momentum due to penetration of brandedsnacks in the semi-urban and rural areas where as, branded health snackshas witnessed increasing demand from urban areas, which has beentraditionally dominated by unbranded or home-made products. The recentGST implementation created considerable short-term hiccup, but ourpriority was to get in place with GST compliance and also assist thebusiness associates to be compliant. The challenge for us is to achieve theright balance of taste, quality and price. It is the love and trust of ourconsumers that has got us where we are today.

The business mix for Haldiram’s seems to be changing. You arepresent in savoury snacks - namkeens category - value market, but thatis not your focus area. The focus area seems to be on modern snacks,health and ready to eat food. Can you walk us through your productcategories and strategy?

Haldiram’s has ample options for snacking; ranging from namkeens,confectioneries, biscuits and chocolates to bakery items, western snacksand flavoured beverages. Also, the traditional Indian street food at‘Haldiram’s Planet Food’ satisfies the craving of snacking for consumers inbetween their meals. With increasing consumer awareness about qualityand nutrition our focus is on:▪ Product improvement in terms of variety, taste and ingredients in

existing SKUs. We plan to add new products and SKUs shortly▪ Changing product mix by expanding in western, health food and

beverages category (Aata cookies, Roasted jowar mix, Multi grainchips, Chaas, Jaljira, Aam Panna)

▪ Customer education we do lot of research to develop our uniquerecipes, “No Preservations are Added” in all our products, offeringhigh shelf life of 4-9 months. One of our oldest product ‘Moong Dal’ hasalways been manufactured keeping ‘Nutrition Fact’ under check withlow oil content and rich in proteins.

Namkeens contribute ~80% of our revenue. To address new age customerpreferences, we are shifting to baked from fried snacks while maintainingthe taste and in process of building health foods category. Increase inconsumption of snacks is also directly related to different festivals andoccasions. For example, on the biggest Indian festivals (Diwali, Holi, Onam,Pongal, etc) it’s the sweets and savouries that are in demand whereas onother social occasions, it’s the combination of traditional savouries andsweets that attract consumers.

Industry SpeakGlocal Journey

7

.”

How do you define your customer segment?

We envisage to cater taste palate of mass customers based in central,western and south India across all age groups - children, young, middle-aged and older adults. Our sales mantra has been - depth in the urbanmarket (more SKUs, more pack sizes in existing outlets) and width in therural market (reaching more outlets). Rural areas higher disposable incomehas not yet supported estimated growth due to lack of infrastructurefacilities. Volumes have been low in comparison to urban areas; asmajority of demand is generated in smaller SKUs (18-150 grams, Rs 5 asstarting price point), whereas urban population purchases medium to largeSKUs (150 grams – 1Kg).

Commodity prices have major impact on your business. How domanage to translate rising price trends to a better margin outlook?

We have got tailwinds as far as commodities and demands are concerned.Our efforts are to ensure that we generate the demand by creatinginteresting options for consumers. When the commodity prices, mainlydaals, oil, flour and spices, etc are going upwards, we bear the cost anddon’t pass on the impact to our end customers.

Are you focusing on profits or market share?

We have to grow, we have to get share and we have to get profits - this'golden triangle' does not happen often but our strategy has been to getthere and we have been achieving our goals.

What is your marketing strategy?

We have adopted traditional marketing channels for existing and newproduct launches; mainly print advertisement, TV-ads, radio-ads, billboards, flyers or pamphlets. So, while it is a typical traditional marketing,the levers engaged are quite different in each region.

What are the challenges addressed by the company in building thebrand Haldiram’s?

We have addressed various challenges to convert traditional snacks(Namkeen) from unorganized sector to organized sector Like. i) Namkeenswere manufactured by hand by skilled labour followed by frying inconventional batch fryer. We have standardised the process by addingautomation at different stages to maintain product texture and taste; ii)Maintaining consistency in quality; iii) Production limitations - Allequipment’s are made to our specification as there is no standard industryconfiguration to manufacture Indian snacks; iv) Improved product self-lifeand freshness by using unique recipes and innovative packaging todistribute the product widely.

What are Haldiram’s core business values?

Our values are based on opportunity seeking, innovation, consumer centric,business excellence, transparency and openness, forming the base of ourunique culture and is the guiding force behind our actions.

14 Manufacturing plants in Nagpur

~106 Super Stockists

~3,100 Distributors

1 million retail outlets

Our management gives tremendous support and special attention to each of our stockist and distributors like family

We ensure there is no unhealthy competition amongst our distributors

Manufacturing Facilities are ISO 9001, 2200, KosherFSSAI, EIA certified

8

Industry SpeakFacing the Future

With recent ban on plastics and trend towards eco-friendly packaging,how is your company adapting the changes?

We are working to adopt all recyclable and compostable packagingsolutions to support the global environmental issues. Our motto is also tobuild cost effective eco-friendly solution by maintaining product freshness,shelf life and the products being recognisable at the point of sale.

There’s a perception that promoters of the company are heavilyinvolved in running the day-to-day business. How has been thetransformation journey been from ‘promoter driven’ to becoming‘professionally driven’ and what are the right ingredients of thissuccessful transformation?

We are aligning our business strategy with transformation objectives,improving cost measures, brainstorm on ways to re-engineer processes formaking the company prepared towards rapid growth. The transformationingredients are i) Empowerment and supporting culture - We arechanging the organization structure, getting the right authority, providingtremendous support, independence and implementing a very strong KPI-based culture; ii) Building team - First of all, it was important for us to getthe right skilled people to run the business and we are building a verytalented team from the industry; iii) Approach to business issues - Eventoday, whenever we approach a business issue, we think about thesequestions - what is the impact on employees, suppliers, distributors,business associates? what is the impact on society at large? we believe totransform in a sustainable manner, the lives of those we touch, bynurturing and empowering them to maximise their true potential; iv) Gen-

next leadership embraces change - The second generation after takingthe reins of the company, brought in new ideas, enthusiasm anddynamism, charting the next leg of growth; v) Stringent management andcorporate governance - we are building adequate policies, systems,procedures, board, financial reporting framework (internal audit, budgetingincluding KPIs with related monitoring controls).

A strong foundation here not only demonstrates that you’ve got a solidbusiness model in plan but that you have something that is worthexporting. Does that make it any easier to expand in internationalmarkets after the successes you’re currently enjoying at home?

Going global is risky and exciting, challenging, empowering and full ofopportunities. There are also hurdles aplenty to overcome. You’ll be putthrough your paces, delve way beyond your comfort zone and on occasion,venture into the unknown. Launching a brand overseas can be “hugelyexpensive” and barriers to success – such as persuading distributors andretailers to take on a brand they may not be familiar with – can be plentiful.Growing business to appeal to different audiences around the world is nolonger wishful thinking. Sure, it’s a relative leap into the unknown, butthat’s part of the experience. As long as we are confident that our businessis in good shape, product with taste and value for money; empowers us in abetter position to embark on the adventure.

Yet, with patience – and “perseverance”, as Mr. Avin pointed out – hardwork and ambition, you can duplicate your successes at a local leveland establish your brand in multiple markets

“While Haldiram’s continues its surge in market share, under the hood there has been a visible change in the work culture at the 82-year-old namkeen maker, thanks to the company's progressive management”

Disclaimer: The views and opinions expressed in this Interview are those of the Guest and do not necessarily reflect the views, opinion or recommendation of BOBCAPS. Recipients should properlycheck views expressed by the Guest and may not be utilize in real-world analytic products as they are based only on very limited and dated open source information.

Product Launch

September’18

Aditya Birla Fashion and Retail forays into women’s innerwear and athleisureproducts

Aditya Birla Fashion and Retail (ABFRL) has forayed into the women innerwear andathleisure market under its Van Heusen brand and plans to open 400 exclusivestores over the next 3-4 years. The company undertook an extensive study toidentify preferences of women and incorporated it into the product designing andmanufacturing. The women range will be manufactured in India and Sri Lanka. Thecompany has a reach of ~9,000 multi-brand stores for men range which will be nowtapped for the women segment (80% of these outlets sell both segments). It plansto take the distribution network to 13,000 by end of the year and to 30,000 outletsin 4 years. ABFRL started selling the range on e-commerce platform from Octoberwhile setting up its own online brand store from November. The women innerwearmarket is valued at ₹ 160bn (organized ₹ 30bn) while men’s segment is valued at ₹90bn (organized ₹ 70bn), with growth rate at 18% and 10% respectively.

Vu Technologies launches 100-inch television for ₹ 2mn

Television maker Vu Technologies launched a 100-inch television called Vu 100 for₹ 2mn. The audio-enabled remote of the television can be used as a switch forelectrical appliances, enabling the television to be connected to all existing devicesin home. It has capability to play 3D graphic games, pre-loaded applications likeYouTube, Hotstar to be operated through voice control and offers Bluetoothconnectivity so that existing devices can be seamlessly connected. The companyearned revenue of ₹ 7.5bn in FY 18.

October’18

Liberty sets foot in the lifestyle segment

Liberty shoes forayed into lifestyle retail under the brand “Liberty Lifestyle”,beginning with the launch of its line of premium fragrances, with investment of₹ 100mn. The company spent significant time to launch fine fragrance segment asit has a higher value proposition, higher ROI and no inventory issues. The fragrancecategory in India is ₹ 20bn and is growing at a rate of 20-30%. The company madeno investment in the plant and machinery and has tied up with a bottler who isdoing the complete packaging. Products will be at par with international brands interms of packaging and quality at an affordable price range ₹ 2,000 – 2,500. Thebrand is also offering an after-shave for men. The entire product range is madeavailable at select Liberty outlets with high millennial footfall, e-commerceplatforms and retail outlets. An e-commerce website has been set up to expand itsdigital presence and attract millennials and the younger generation.

Sundrop enters the cereal market with Choco Popz

Sundrop, a known brand under Agro Tech Foods, enters the cereal market withtheir latest offering Choco Popz. As per study, pre-lunch snack is becoming apreferred meal among youngsters, on-the-go professionals and kids. Capitalizingon current trends and prevailing consumption patterns, the company is positioningits product as a breakfast cereal as well as a sweet snack that is healthy for a guiltfree bite. The new product will be available across modern trade, e-commerce andlocal kirana stores. Agro Tech Foods is one of India’s leading food companies witha portfolio that includes ready to cook popcorn, tortilla chips, peanut butter and oil.The launch of Choco Popz is the first step towards a broader portfolio in bothbreakfast cereals and the chocolates categories in India.

Cargill India launched ‘NatureFresh Acti Heart’ cooking oil

Cargill India expanded its edible oil range and launched cooking oil blended equallywith Canola and rice bran oils. The company is expanding its offering in health andwellness segment in edible oil category, thus targeting a market share of 10% inthis premium segment within 2 years. The health oil segment – comprising of oliveoil, canola oil, rice bran oil and blended oil – has a market size of about 3 lakh tonneannually. Cargill India, part of the US food major Cargill, leads the market in edibleoil selling cooking oils under Gemini, Leonardo olive oil, NatureFresh, Rath andSweekar brands. Cargill’s food business in India offers wide range of foodingredients solutions for bakery and food manufacturers through B2B business.

November ‘18

PepsiCo’s Frito-Lay introduced a line of children’s snacks under the Imaginebrand

PepsiCo’s Frito-Lay division has been in the snacks category with Cheetos,Tostitos and Doritos helping to boost the company’s earnings. The division has nowintroduced children’s snacks under the Imagine brand, thus expanding in thesnacking segment with heathy treats. Imagine’s Cheese Stars contain no artificialcolours or flavours and are made with real cheese and come in parmesan and whitecheddar varieties. The yogurt crisps come in mixed berry and apple cinnamonflavours. The new children’s snack brand fits in with PepsiCo’s recent acquisitionsthat are repositioning the beverage giant toward a more health-oriented portfolio.

Kellogg launches HI! Happy Inside – new cereal to support digestive health

Kellogg introduced a new cereal called HI! Happy Inside, featuring prebiotics,probiotics and fibre. The new product, designed to optimize digestive wellness,could be an attractive addition to the cereal aisle for health-conscious consumers.The cereal comes in simply strawberry, bold blueberry and coconut crunch flavours.The demand for health drinks, dairy, infant food and meat and bakery productscould reach US$ 7.8bn by 2022.

Note: Company News period Sept 18 - Mar 19

Company News

9

...Product Launch

Sumeru launches India’s first Michelin-star chef frozen food range

Sumeru, heritage brand of Innovative Foods, launched its signature frozen gourmetmeals in collaboration with Michelin star chef Alfred Prasad. The range includesfour products – millet khichadi, roast chicken, shahi paneer and pepper chicken.The company wants to disrupt the way consumers perceive and purchase frozenfood. The association with chef Alfred Prasad, a first in India within this space,reiterates the company’s commitment to bring new and better experiences in dailyfood consumption. Sumeru plans to continue its focus on product innovation andR&D as a primary growth driver, strengthen its distribution network to 25,000 retailoutlets and grow its domestic market to ~₹ 2.5bn in the 3 years. Sumeru has twomanufacturing units in Kochi and Chittoor.

Keventers adds Sundaes to its product portfolio expands in Delhi NCR bylaunching premium ice creams

Keventers introduced Sundaes to expand its product portfolio and diversify itsbusiness into complimentary verticals, thus bringing premium ice cream to themarket. It is now available in all outlets across India, priced ₹ 199-249. The icecreams will be served in reusable glass bowls that can be taken home. Thecompany has also launched 3 outlets of Ice Creamery in Delhi NCR. Keventers,established in 1922 by Edward Keventers, is famed for its milkshakes and is India’sfirst very own ‘Made in India’ brand. It was acquired by Ram Krishna Dalmia in 1940and was revamped in 2015 by Agastya Dalmia, Aman Arora and Sohrab Sitaram toalign it with modern day consumers. Presently Keventers has over 270+ outlets inIndia and is rapidly expanding overseas.

ITC’s homegrown luxury chocolate brand Fabelle introduces ruby chocolate inIndia

Fabelle from ITC unveiled India’s first ever ruby Chocolate - Fabelle’s RubyGianduja. ITC partnered with Barry Callebaut, a globally leading manufacturer ofapplication chocolates and cocoa products, to source the exotic Ruby chocolateused in preparing Fabelle’s Ruby Gianduja. The limited edition box of 12 cubes ispriced at ₹ 1,295. Chocolate as a product has gained good traction in popularity inIndia where it has ~₹ 90bn market and is also a part of the top 100 largestchocolate consuming countries globally.

December’18

ITC enters branded rice market with Sona Masoori

ITC has made a quiet entry into the packaged rice segment, mainly non-basmativariety, piloting with the ‘Sona Masoori’ variety in Bengaluru under ‘Aashirvaad’brand, by leveraging its agri-sourcing expertise. Under the pilot, ITC is selling 25 kgpacks offering ‘free home delivery’ at a special offer price of ₹ 1,400 per bag.

The ‘Aashirvaad’ brand was set up in 2002 to sell atta and later expanded intoother categories such as spices, salt, ghee, milk, and instant mix offerings. Thebrand has a consumer spend of ~₹ 40bn.

January’19

Parag Milk Foods unveils Gulab Jamun, Rasgulla made from pure cow ghee

Parag forayed into Indian sweets category, by launching two ready-to-eat Indiandesserts, Gulab Jamun and Rasgulla, under the brand Gowardhan. They are madefrom pure cow ghee and cow milk. These two products have been introduced in asmall scale with the plan to further strengthen the value-added products category.They are currently available in 1 kg pack sizes priced at ₹ 190. The main marketsfor Gulab Jamun is West, North and South India, and for Rasgulla is North and EastIndia. The company’s cheese category has enabled it to strengthen its value addedproducts category and made up two-thirds of its overall revenue in FY 18. TheIndian sweets category is worth ₹ 70 – 80bn.

Expansion and Diversification

September’18

Patanjali forays into dairy, frozen food and bottled water

Patanjali has tied up with ~56,000 retailers and vendors to supply milk acrossDelhi-NCR, Mumbai, Pune and Rajasthan. They expect to produce ~1mn litres ofcow milk every day in 2019-20. As per company’s estimates 4 lakh litres wasproduced on the first day of operations. It plans to sell dairy products in tetrapacks, along with flavoured milk. The company will procure milk from around 1 lakhassociate farmers and the milk will be sold for ₹ 40 per litre as opposed to ₹ 42market price. Patanjali is also entering into frozen food market too and would sellfrozen greens such as peas, sweet corn, mixed vegetables and french fries.

Patanjali to set ₹ 6.3bn mega food park in Vizianagaram

Patanjali is setting an ₹ 6.3bn mega food park, the Patanjali Food and Herbal Park,on a 172.8 acre site at Chinnarapalli village in Vizianagaram district of AndhraPradesh. Core processing facilities including cold storage with blast freezer,grading packing facility for spices and grains and dry warehouse would come up inthe park. An anchor unit for juice extraction with a capacity of 1,500 tpd, would alsobe set up with an investment of ₹ 452mn. The company is likely to setup juice,biscuit, noodles, frozen vegetables and spices processing units.

Avenue Supermarts plans to add 60 stores

Avenue Supermarts is planning to add ~50-60 stores over the next 2 years, with75% of the stores being located in the existing clusters. The company may also

Company News

10

...Expansion and Diversification

consider lease models vs owned stores considering the stiff real estate prices. Asof June 18, it has 157 stores with retail area of 5mn sq.-ft across Maharashtra,Gujarat, Daman, Andhra Pradesh etc. The expansion pace has picked up withDmart adding 24 stores in FY 18 compared to 21 stores in FY 17. In FY 18, thecompany’s total revenue grew 26.3% to ₹ 150bn, EBITDA was up 38.8% YoY to₹ 13.4bn while net profit was up 62.6% at ₹ 7.8bn. Segment-wise revenue breakup:food- 51.5%, non-food FMCG- 20% and general merchandise/apparel - 28.4%.Dmart has best-in-class execution strategy and is amongst few players to crack thegrocery retail model on an average since FY 12 with ~24% SSSG (Same Store SalesGrowth). It plans to continue to remain a low-cost retailer and this would beachieved by passing on cost savings to consumers.

V-Mart Retail plans aggressive expansion in UP and Bihar

V-Mart Retail after its successful stint in the cluster-based business model, isplanning to adopt an online-offline strategy with new stores and a warehouse, asthe company looks at investing ₹ 1bn in next fiscal year. The company is looking atsetting up a new warehouse to service the stores in Uttar Pradesh or Bihar. It has afurther target to invest ₹ 3bn to double store count by adding more than 200 storesin the next 5 years. The company has a chain of ~186 stores across 153 cities in 15states and union territories with ~5,900 employees. About 75% of stores is in UttarPradesh, Uttarakhand, Jharkhand and Bihar. The retail division selling clothes,accessories, footwear and everyday staples, follows a cluster-based model, withfocus on tier II and III geographies.

Voltas enters consumer durables space with Acrelik

Voltas, partners global home appliances maker Arcelik (Turkish conglomerate KOCgroup). ₹ 10bn investment will be made to produce and sell refrigerators, washingmachines, microwave ovens and dishwashers. The two groups will hold 50% stakeeach in the venture, Voltbek Home Appliances. Products to be branded as VoltasBeko and will be manufactured in a plant that is coming up in Sanand, Gujarat, tillthen the products will be imported from China, Turkey and Thailand. The companyalso plans to foray into African and Asian markets, with products either under itsown brand, focusing mainly on entry-level appliances like direct cool refrigeratorsand semi-automatic washing machines. The company tied up with Future SupplyChain Solutions as its logistics partner. The company has recorded revenues of₹ 63bn in FY 18.

Godrej Consumer launches Cinthol’s new male grooming range

Cinthol has forayed into ₹ 55bn male grooming market by launching multi-benefitand functionally superior 8 new variants for face, body, hair and beard applications.It is estimated that men in the age group of 18-25 spend more money and seeksimple and multi-functional products that saves time. This product range meetsthis requirement with first of its kind Cinthol Shave + Facewash and entire beard

range comprising Beard + Facewash, Wax, Oil, After-Shave + After Trim thatdemonstrates multi-functionality and ease of use. The objective is to increasepenetration by offering an end to end male grooming solutions. Trusted by 47mnhouseholds, Cinthol is an ₹ 7.5bn flagship brand present in soaps, deodorants,talcum powder and shower gels.

October’18

Southeast Asia to have a brush with Colgate’s herbal toothpastes

Colgate Palmolive, which is enhancing its naturals’ portfolio in India, is nowexporting some of its herbal products to Southeast Asia. The company’s Vedshaktibrand, first launched in India under the Cibaca umbrella, is now being exported toThailand - Colgate Naturals Panajved, and further expanding the portfolio in thehigher price natural segment. Besides Cibaca Vedshakti, Colgate also launchedvariants of its Active Salt toothpaste, pushing brands such as Colgate Herbal,Colgate Total (charcoal variant) and Colgate Sensitive (with clove oil). The naturalproducts are now available in 44 markets and would be rolled out in an additional32 places - China, Russia, USA, Middle East and all principal markets in the Asia-Pacific region. The size of the overall toothpaste market is ₹ 80bn of which Colgatehas 52.4% market share. As of 2018, the size of the naturals market is estimated at₹ 16bn.

Paytm Mall working with 100 FMCG Brands

Paytm Mall backed by Alibaba, is working with 100 FMCG brands including Maricoand Hindustan Unilever, to drive sales through its online-to-offline (O2O) model.The company claims to have registered ~2x growth in FMCG items delivered in thefirst quarter of this year, with 70% orders fulfilled within 48 hours. The partneredbrands have integrated Paytm Mall QR code on their products. It has played pivotalrole towards driving the consumer engagement and promoting product sales.Grocery and FMCG have become important categories for e-commerce companiesas it drives customer stickiness. Paytm has spent ~US$ 25mn in the first quarter ofthis year on joint marketing activities with the FMCG brands to trigger sales. It hasbeen aggressive on its O2O model and claims to contribute 30% of the company’srevenue. While Flipkart recently launched its grocery vertical Supermarts, AmazonIndia sells grocery via multiple channels such as Amazon Pantry and Prime Now.

Jubilant begins test-run of Chinese fast food venture

Jubilant Foodworks, the operator of Domino’s Pizza and Dunkin’ Donuts in India,has commenced Chinese fast food venture, its third restaurant brand in thecountry. The ‘Chinese Kitchen’ is the working name of the food chain’s firstindependent venture and is currently in test-run stage at a store in New Delhi,based on mass-priced Chinese cuisine. Jubilant is leveraging its backend synergieson the same and this will be its first home-grown brand. Unlike other quick service

Company News

11

...Expansion and Diversification

restaurants, one can operate pizza and Chinese models at 27-30% of the food costand meet per-head consumer spend expectations. The company is seeking tocapture a niche in a fast-growing segment that has only few national operators.

Stovekraft expands into premium small appliances with Black+Decker

Stovekraft is focusing on the premium segment with its licensed brandBlack+Decker by rolling out products like blenders and juicers, breakfastappliances, water heaters and small domestic appliances. The company enteredinto a partnership with US-based Black and Decker in 2017. Stovekraft’s flagshipbrands Pigeon and Gilma contribute 85% to sales, with Pigeon alone contributing80% to overall sales operating in segments like free standing hobs, LPG gas stoves,induction cooktops and non-stick cookware and is sold in twelve countries. In FY18, revenue was ₹ 5.3bn (15% from online products). New products like fastenerfree glass cooktops with Pigeon Infinity, die-cast non-stick cookware called Crest,stainless steel pressure cookers under the Pigeon portfolio and a complete range ofproducts under Black + Decker was launched. The company also manufacturesproducts for leading brands in North America and Europe; clientele includesWalmart, Big Lots and Belk.

November’18

Marico is using Automation and Artificial Intelligence(AI) to enhance itsbusiness prospects and that of its distributors

Marico’s leading distributor, serving 6,000 outlets in western Mumbai, had toroutinely stock inventory for 4-5 days. A 25-person sales team would manuallybook orders and punch in the computer’s software system taking 3-4 hours. Butnow with Personal Digital Assistants the entire process takes only 3-4 minutes.This has helped the distributor to reduce inventory day to just 1 day and trim thestaff to 20 by eliminating data entry operators. Using geotagging, part of integratedsales route optimization software, the agency can ensure that their sales use bestroutes to serve numerous outlets. Marico is moving away from just getting newapps to an age of getting into analytics—a stage where the world is moving beyonddescriptive things to diagnostics, predictive and to prescriptive. For instance, adistributor could be facing financial trouble and potentially drop out of business, ituses AI to seek patterns and predict behaviours. Marico’s exclusive launches withe-commerce companies are helping in “predictive and prescriptive analytics" taskby leveraging the real-time insights that online companies provide and run acampaign for only those consumers who put a product in the online shopping cartbut did not buy it eventually.

PitaPit enters south, west Indian market through MuVi concept restaurants

PitaPit, after making its name in the north is all set to enter south Indian marketwith its first restaurant in a new mall at Hyderabad. It has its presence in northIndia with 11 restaurants operated in partnership with Mentor Hospitality, its

master franchisee for north and east India. The company has partnered with MuviConcepts Restaurants, its master franchise for south and west India, to open 50restaurants over the next 3 years across 10 major cities in south and west India withfocus on Bengaluru, Hyderabad and Pune, followed by Mumbai, Ahmedabad andCochin. Pitapit was founded in 1995 in Ontario, Canada and now has over 650restaurants across 13 countries. The company offers customized, healthy andnutritious Pita sandwiches and a healthy alternative to high carb, fat and fast food.

Mondelez launched state-of-art research, development and quality centre inMumbai

Mondelez has launched a state-of-art research, development and quality centre inMumbai that would exclusively cater to R&D activities in the chocolate and beveragesegment. The research facility has come up with an investment of US$ 15mn and isspread across more than 12,000sq.m. It houses over 150 specialists, including foodscientists, engineers and analytical chemists. This is only second such researchcentre after Bournville in the U.K. that caters to chocolates. Mondelez has 10 suchcentres spread across Brazil. Poland, Singapore, France and Germany focusing onvarious product segments. The facility will work closely on innovation with sitesacross the Asia-Pacific, Middle East West Asia and Africa (AMEA) region and globalmanufacturing network. The latest centre being set up in India highlights the factthat it is one of the most important markets for the global major, which is valued atmore than US$ 61bn. Mondelez has more than 60% market share in Indian chocolatesegment and has recorded the highest growth in the segment. The upgraded versionis a big step in the company’s strategy to invest US$ 65mn in developing a globalnetwork of state-of-the art technical hubs across the world.

Tata Global Beverages plans to set a new tea packaging unit in Odisha

Tata Global Beverages is setting up a new tea packaging unit at TATA Steel SEZ inGopalpur industry park, Odisha with an investment of ₹ 1bn. The company enteredinto a Letter of Intent (LOI) with Tata Steel SEZ, a wholly-owned subsidiary of TataSteel. The unit will be used for the operating of manufacturing and storage of teaand will also be used as warehouse for all the products of the company, itssubsidiaries, associates and JV companies. The estimated scalable capacity of thenew unit is expected to be 36mn kgs per annum and will be operational by 2020, postall statutory and regulatory clearances.

Chai Point to start hybrid pay model, eyes expansion with BoxC

Chai Point is set to introduce a hybrid on-demand payment model for integration inthe tea-chain’s beverage dispenser model called BoxC, currently operational across2,000 corporate houses and office premises in eight cities. The firm has partneredwith Paytm to have a dual payment system for BoxC on a contractual basis with thecorporate house or employer for a minimum amount and on-demand, where it canscale through payments by consumers directly. The model allows the beveragedispenser model BoxC to feature a customisable contractual, digitised payment and

Company News

12

...Expansion and Diversification

invoicing facility. Chai Point’s big bet on driving its BoxC business is because themodel helps boost penetration in larger metros with a sizeable white collaredmarket which is the firm’s core target market. It sells about 6 lakh cups daily ofwhich 4 lakh cups are contributed by BoxC dispenser mechanism alone. Chai Pointrevenue contribution from BoxC ~38-40%, delivery 25% and offline retail cafes 35%.

Livspace expanding in Pune and Chennai

Home Interiors platform Livspace is expanding its geographical presence withlaunches in Pune and Chennai by investing ₹ 400mn. This will increase company’spresence to 9 cities across India. The company is launching 200 designers in bothcities and will double this by Mar 19. It is looking to deliver 100 homes in each cityand is expected to achieve unit-economics profitability in these cities over 24-36months. The company sees great potential in the renovation market in Chennai asthe city has a large number of units that are over 10 years old. The customers here,especially the new generation, are looking to transform their homes to reflect amore contemporary aesthetic. In Pune, the company is the only organized player inthe interiors sector. It is setting up design centres in both cities, which will allowcustomers to get an actual feel of the products. Livspace operates primarily inthree segments – new home interiors, interiors for rental units and renovation. Themodel brings together the customer, interior designer and seller together on thesame platform, simplifying the interior design process. Livspace will be using US$70mn raised from TPG Growth and Goldman Sachs in September primarily towardsfunding its expansion into new cities.

Nestlé India introduces India’s first Baked Noodles – Maggi Nutri-licious

Nestlé introduced India’s first baked noodles – Maggi Nutri-Licious, using its globalgood expertise and understanding of local taste preferences offering a wholesomeproposition. This is in continuation with its ongoing direction of “Kuch Acha PakkRaha Hai”. Core business strategy is product innovation, renovation and has madesome important interventions with the brand, committing to enhance the nutritionprofile of products by adding ingredients and using their proprietary technology.The objective is to offer more choices to the consumers who are seeking optionsfor their evolving tastes. It is now available across leading supermarkets and mom-and-pop stores in Bangalore, Chennai, Hyderabad and Kochi.

December’18

Heritage Foods launches its first ‘Our Store’ in Andhra Pradesh

Heritage Foods opened its first ‘Our Store’ in Penamaluru and will expand theirpresence through this format. Heritage Foods has taken the lead in makingconsumers life easy by making available the dairy products in one place. It hasbeen following different models to distribute products range, like HeritageDistribution Centre (HDC), company owned franchisee run model, Heritage Parlour(HP) and Heritage Select Store (HSS), a shop in shop model.

Heritage Foods launches two healthy Lassies ‘Ragi Lassi and Sabja Lassi’

Heritage Foods launched new range of health drinks of two new variants of Lassi ofRagi and Sabja, a major step towards strengthening the company’s value-addedproducts. Both the variants drinks have high calcium content and would be availablein Heritage Parlours, Modern Trade Outlets and General Trade outlets.

Dalmia Bharat to roll out fast-curing cement, first of its kind in the world

Dalmia Bharat Cement has come up with a chemically modified variant of cementwhich reduces the curing time from 3-4 weeks to 3 days. It will benefit infrastructurecompanies and large-scale housing constructions to reduce completion time. It hasalready been piloted in the taxiway at Chennai airport and is awaiting clearance fromthe patent authorities. The company has also rolled out a surface finish solution,similar to wall putty, which can be applied on both wall and ceiling of a constructionand can save up to 15% of the total painting cost. Over the past couple of years, thecompany has spent ~₹ 1bn for research and development of this cement and alliedproducts besides putting up the production lines at 4mtpa Dalmiapuram plant inTamil Nadu, the 2.5mtpa in Belgaum and the 4mtpa in Rajgangpur in Odisha.

Gujarat Ambuja Exports project expansion

Gujarat Ambuja decided to put up a greenfield plant at Malda, West Bengal for 1,000tpd maize processing at an estimated cost of ₹ 3bn. The company has been allottedland admeasuring 66.8acres. The project shall be executed within two years. Withthis initiative, the company will have pan India manufacturing and marketingpresence. The plant will manufacture starch, liquid glucose and sorbitol to cater theeastern part of India and export to markets in Bangladesh and South East Asiancountries. The second phase of the company’s Chalisgaon, Maharashtra maizeprocessing plant will be completed in Q4 FY 19. The first phase started commercialproduction in Mar18 and is currently operating at 80% capacity utilization.

January’19

Hindustan Sanitaryware and Industries Ltd (HSIL) expands in kitchen ensemble

HSIL aims to strategically expand into consumer product space through the kitchenappliances category under the brand Hindware Kitchen Ensemble. For furtherexpansion of the consumer products, HSIL also entered into an association withGroupe Atlantic of France bringing Hindware Atlantic water heaters. It has alsoentered into air coolers with brand name - Hindware Snowcrest, and into purifyingsolutions with the brand name ‘Moonbow’ offering range of well-designed airpurifiers and water purifiers. HSIL entered the consumer business in 2015 and has agrowing 70% CAGR since last 3 years. Aim of this business was to leverage brandHindware with ~60mn consumers connected, The company plans to invest on brandbuilding and product development. 10 patents have been registered which have beenprocessed by intensive R&D centre in Gurgaon. The company booked a total revenueof ₹ 22.5bn in FY 18 with consumer business contributing ₹ 2.1 bn (9%)..

Company News

13

...Expansion and Diversification

February’19

Radico Khaitan launched three premium products

Radico Khaitan launched three premium brands—8PM Black Whisky, MorpheusBlack Brandy and Jaisalmer Indian Craft Gin (UK and USA)—in the first six monthsof this financial year. The spirit sector in India was hit in the last couple of yearsdue to demonetisation, state-level prohibitions, ban on sale of liquor on nationalhighways and the implementation of the goods and services tax. Yet, RadicoKhaitan managed to pare its overall debt by nearly 50% to ₹ 3.8bn. All this has ledto a double-digit growth in volume growth and healthy cash generation.

Havells to foray into refrigerators and plans to set up greenfield unit for Lloydair conditioners

Havells India is looking to strengthen its product portfolio by foraying intorefrigerators segment under Lloyd brand. The company has earmarked investmentof ₹ 10bn, funded through internal accruals of which ~₹ 4bn will go towards settingup a greenfield unit for Lloyd air conditioners in Rajasthan with a capacity of 6 lakhACs a year and the remaining will be spent on brownfield expansions in severalHavells India plants across the country. The company will also invest ~₹ 4bn inbrand building exercise. Havells achieved a turnover of ₹ 82.6bn and EBITDA of₹ 10.5bn of in FY 18.

More women consuming alcohol in India is great news for Absolut

When women have money and start going out, spirits consumption becomesegalitarian, more unisex and inclusive, that’s when brands like Absolut tend to takeoff. Absolut owned by the world’s second-largest distiller Pernod Ricard, has beengrowing in double digits in India. Pernod Ricard also makes Chivas Regal Scotch,Royal Stag whisky and Havana club rum, reported a sale of ₹ 156.9bn in India forFY 18 with a net profit of ₹ 12.3bn. Absolut’s biggest market is U.S. with Indiaranking amongst its top 20 markets. The liquor market is highly regulated in India,with pricing being a state subject, multiple taxation and prohibition in states suchGujarat and Bihar. The overall Indian vodka market is 7.4mn cases of 9 litre eachand Absolut has 78.7% share of the premium vodka segment. According to WHOreport (Sept 18), alcohol consumption in India increased from 2.4 litre in 2005 to 5.7litre in 2016, per capita consumption 9.4 litre - men and 1.7 litre - women.

Givaudan expands India facility INR 4bn

Givaudan is expanding its manufacturing facility in India (accounts 4% of globalsales) with an investment of INR 4bn. The new 40,000 sqm facility will enable thecompany to meet the growing demand, complimenting the company’s existing plantin Daman and strengthen its capabilities in liquids compounding, powder blending,emulsions, process flavours and spray drying for the India, Nepal and Bangladeshmarkets. Bakery products and snacking movement are the two key growth drivers

for the company’s growth of flavours businesses in India. Givaudan claims to have25% share of the world’s flavours and fragrance market and 27% share of the Indianmarket. It sources about 50% of its ingredients required for Indian operations locally.

KPR Mill plans to expand garment facility

KPR Mill is planning to add 10mn garment capacity leading to a total garmentcapacity of 115mn. The company has undertaken this brownfield expansion to caterto the rising demand of its garments. Recently, it has also started commercialproduction of garments in Ethiopia. The company is the largest knitted garmentmanufacturer and exporter to Europe, Australia and th US, deriving 59% revenue(₹ 25bn in FY 18) from the domestic marketing and remaining from exports.

Hatsun Agro sets up 2,500th retail outlet in Kolhapur, Maharashtra

Company’s retail philosophy of freshness and quality, all the outlets provide uniquecustomer experience, service consistency, product availability and better ambience.The outlets are operated by well-trained independent franchisees. In addition to theentire range of Arun Ice Creams, the outlets will selectively retail other productssuch as Arokya Milk, Hatsun - Curd, paneer, milk beverage, yoghurt tops, yoghurtshakes, ghee, butter, skimmed milk powder and dairy whitener in various markets.Plans to set up new outlets in Maharashtra, Kerala, Odisha, Chhattisgarh andexpand its presence in Tamil Nadu, Karnataka, Andhra Pradesh, Telangana,Puducherry and Goa.

March’19

Reckitt Benckiser goes digital for premium products

Reckitt Benkiser(RB) has started its own direct-to-consumer e-commerce operationto sell some of its premium products in India through brand-specific platformsjoining select firms with own sales portals, such as Mondelez and ITC. RB has signeda deal with Gurgaon-based logistics and supply chain firm Cogent Transware forbackend partnership. Cogent Transware follows a ‘hybrid logistics’ model, whereby itwill buy products from RB, store them in their tech-driven warehouses that enableround the clock monitoring, compliance, and then deliver the products to consumerswhen an order is placed. The model will reduce working capital, order managementand include single-point payment collection.

Embassy of Vietnam signs up BLS International (BLS)

BLS has been signed up by the Embassy of Vietnam to accept visa applications inIndia and it is the only company to be authorized to handle the ‘Attestation andLegalization Services’ for the Embassy. Company is opening 15 centres across Indiato facilitate the attestation and legalization services for the Embassy of Vietnamexclusively. This addition to the already robust portfolio of Consular and CitizenServices offered by BLS reflects the company’s focus on efficiency and continuousexcellence in its operations. BLS has been gearing up to provide innovative solutionsto governments and citizens across the global.

Company News

14

▪ With changing demographic profile of India, rapid urbanisation, spread ofdigital payments and increasing purchasing power, the retail sector ispoised for quantum leap

▪ Over last two decades the Indian retail industry has seen significantchanges, evolving rapidly from traditional shops to large multi-formatstores offering global experience

▪ The growth in online retail is making India world’s fastest growing e-commerce market driven by robust investment in the sector and rapidincrease in the number of internet users

Government Policies

“Both online and Brick-mortar formats can continue together as the retail companies will try to reach out to consumers

both through physical stores as well as online”

Major Deals

▪ Given the changing scenario of Indian retail industry and growth

opportunities, domestic and foreign companies will look for investment

opportunities to expand business

▪ High demand for superior for customer experience and penetration of big

brands into smaller towns and cities will help business to grow and move

from unorganised to organised business

▪ Companies having coordinated strategy for “brick and mortar “and online

sales might have an edge considering psychology of Indian consumers to see

and feel products before buying

Plans to roll out online shoppingplatforms to 1.2 million retailers andstore owners in Gujarat

Traditional Retail (75%)

Organized Retail (18%)

E-Commerce Retail (7%)

Estimated market shares of the retail formats by 2021

▪ Government has taken steps to support the sector by 100% FDI in onlineretail of goods and services through the automatic route

▪ The governments move to provide a single policy framework for retail,FMCG, e-commerce in order to offer a level playing field to stakeholders

Policy changes and Impact on E-commerce, December 19

▪ The norms for companies offering discounts has been tightened. As aresult, online retailers cannot use their foreign capital to fund highdiscounts

▪ E-commerce entities that operate a market place model will not be allowed

to exercise ownership or control over the inventory

▪ Any ownership or control over the inventory will convert the business into

an inventory-based model

▪ The inventory of a vendor will be deemed to be controlled by an e-

commerce market place entity if more than 25% of the vendor’s purchases

are made through the marketplace or its group entities

▪ No seller can sell its products exclusively on any market place platform and

that all vendors on the e-commerce platform should be provided services in

a fair and non-discriminatory

▪ Amazon, Flipkart and Paytm funded by FDI cannot exercise any control over

the vendors or pricing strategy

▪ The revised guidelines are expected to benefit local entities such as

Reliance Industries

Current TrendsOnline and Brick-Mortar

in US$ bn FY 17 FY 20

Consumer Expenditure

1,824 3,600

Online FMCG Market 20 45

Online Consumers (mn)

90 200

77% stake acquired

Deal value US$ 16bn

5% stake acquired

Deal value ₹ 1.8bn

Will open and manage the brand stores as a

master franchisee

100% stake acquired

Deal value ₹ 42bn

Roadmap

15

▪ Indian cities generate ~26,000 tonnes of plastic waste every day, ~66% is mixedwaste – polybags and pouches being used to pack foods

▪ The recycling rate in India is considerably higher than the global average of14%, there are still over 6,100 tonnes of plastic which are either landfilled orend-up polluting streams or groundwater resources

▪ The plastic ban in Mumbai brought forward not only the glaring issue of eco-friendly packaging in forefront, but also urged various restaurants and fooddelivery companies to re-visit their packaging ideas

▪ About 25 Indian states/union territories now have some form of ban onpolythene carry bags and other packaging materials

▪ To minimize the impact of the ban on businesses, exemptions are being offeredwhich vary from state to state

Current Scenario Companies manufacturing eco-friendly food packaging

Eco-friendly food packaging

Initiatives taken

▪ Hardcastle Restaurants, master franchise for McDonald’s, in Westand South India, claims to have transitioned plastic to eco-friendlyand biodegradable alternatives for guest packaging

▪ McDonald’s now gives customers wooden cutlery, superior qualitypaper cups and straws made of either paper or corn starch. Itreplaced products in its restaurants across key cities in Maharashtraand Karnataka

▪ The company is working on alternative solutions for its deliverysegment to ensure safe and fresh food is delivered without spillage

▪ Starbucks to stop using disposable plastic straws by 2020,eliminating ~1bn straws a year

▪ The company, with 28,000 stores worldwide, will use recyclablestrawless lids on most of its iced drinks

Current TrendsEco-friendly Food Packaging

Starch granule products – Made out of potato and tapioca starch granules alongwith other biomass, these products look like plastic but are 100% biodegradable

Rice husk tableware – One of the most durable forms of biodegradable cutlery, it isre-usable but expensive, with price range of ₹ 600-800 per plate

Areca leaf cutlery – It is light-weight, easy to use and throw and inexpensive (₹ 4-10 per plate). Eco Palm Leaf Plates, Verterra Dinnerware, The Magnus, Ecovisionare some of the leading manufacturers

Sugarcane bagasse products▪ Ecoware and Pappco are the pioneers in manufacturing of these products on a

large scale. Advantage being the raw material can be moulded into any shapethus catering to customized large orders

▪ It is a hit with various well-known cafes, food chains and airport food outletsacross the country

▪ Swiggy launched ‘Swiggy Packaging Assist’ for its restaurantpartners access a range of innovative packaging solutions like usingpackaging materials like paper and aluminium, which are then recycled

▪ Introduced meal trays made of cornstarch and bagasse at aneconomic rate.

▪ Sellers in the marketplace will offer restaurants trade discounts of upto 5% to aid hassle-free onboarding. The packaging material will bedelivered in 3-4 working days and payments can be made on delivery

▪ Rolled out in Bengaluru, Mumbai and Pune and is expected to beaccessible to rest of the cities in some time

▪ Zomato is encouraging its subscribers to go for its new “opt out ofcutlery” feature. Its delivery partners use insulated, speciallydesigned bags that keep food fresh without any additional packaginglayers

Current Scenario Companies Manufacturing Eco-friendly Food Packaging

Eco-friendly Food Packaging

Initiatives Taken

16

Brands using Kumbh Mela as an Advertising Platform

Brand Sampling Products

Brands with Sales-oriented Stalls or just Displays

Brands using Immersive Programs to gain Consumer Attention

Current TrendsKumbh Mela

Head of missions from 72 countries participated during the Kumbh'sinauguration

50Days

~200mnVisitors

₹ 42bnBudget

₹ 1.26tnUP Rev. Generation

600K Employment generation

2,500Allotted Land

(ha)

5,000Religious

Organisation

199Projects in 16

govt. departments

110KToilets

40KLED lamp

Installation

116Construction of internal roads

20KDustbin tippers to

collect waste

45Make-shift towers to provide 4G banking

services

1,000CCTV for better monitoring and mitigating risk

TRIVENI SANGAM | Swachh Kumbh, Surakshit Kumbh (Clean Kumbh, Secure Kumbh)

17

Current Trends Home Decor

Share of the unorganised

Thesis Current Scenario Outlook

Tile

s

45-50%Pick-up in demand led by government projectsand thrust on low cost housing, and shift fromunorganised to organised

Weak demand scenario, increased competitive intensity, and reverse shift from unorganised to organised

Gradual recovery in demand, slower paceof shift from unorganised to organised, andcontinued competitive scenario

Ply

wo

od

70-75%

Pick-up in demand led by improvement in realitysector, strong opportunities in the medium/masscategory plywood segment riding shift in marketshare from unorganised to organised players

While there is no pick-up in demand forplywood, medium/mass category plywoodfor have been growing at a healthy rate ledby shift from unorganised to organisedplayers

Tighter implementation of Eway bill andGST will further expedite the shift towardsorganised players

La

min

ate

s

40-45%

Pick-up in demand led by improvement in reality sector and healthy exports demand will drivegrowth in laminates industry

Increased competitive intensity in domesticas well as exports market impactingvolume growth and ₹ depreciation isimpacting margins

Weaker ₹ to push exports with gradualrecovery in domestic demand. Priceincrease should help companies improvemargins

MD

F

5-10%

Medium density fibrewood(MDF) demand wasexpected to grow at 15-20% led by deepeningpenetration and rising demand for readymadefurniture

Increased competitive intensity led tohigher than expected pressure onrealizations, margins and returns of MDFplayers

₹ to push exports, aid in faster replacementof imports and ease domestic oversupplyscenario

Pip

es

40-45%

The segment was expected to grow at one of thefastest rates led by substantial investments inirrigation and urban infrastructure. In the pipes &fittings space, CPVC and HDPE are expected tobe the fastest-growing sub-segments

Although demand is increasing at healthypace, higher competitive intensity hasadded pressure on margins

Gradual recovery in demand and continuedcompetitive scenario

18

▪ The home décor industry boasts a high asset turnover of 2–4x on account ofits reach and brand equity

▪ The tile, sanitaryware and plywood companies are particularly focusing onoutsourcing and making their business asset-light, which would allow themto focus on branding and distribution

▪ While outsourcing opportunities for tile companies have increased due tooversupply at Morbi (in Gujarat), a structural shift towards mid-end plywoodis leading to higher outsourcing opportunities for plywood players

Moving further towards asset-light business model

▪ Gujarat Pollution Control Board (GPCB) has ordered Morbi lndustrial GreenEnvironmental Services Co. Op. Soc. Ltd. to comply with the National GreenTribunal order with immediate effect and report to the board within sevendays.

▪ NGT order (dated Mar 19) directing GPCB to take immediate steps todismantle all coal gasifiers industries operating and switch over to non-coalgasifiers or PNG at Morbi, Gujarat

▪ In case of any failure to comply with the said order, the board would takestringent actions

▪ This development to significantly impact unorganised Morbi players in thenear term. Branded players on the other hand are likely to sharpen theircompetitiveness aided by expected improvement in compliance by Morbi andreduction in pricing differential between branded and unbranded players

GPCB promptly acts on NGT direction; shutdown on all coal gasifiers

Source: Bloomberg Prices as on 28 March, 2019

Commodity UnitSpot Price Price Change (%) YoY Price Change (%)

(₹) 1M 3M 6M 12M 4Q 19 3Q 19 2Q 19 1Q 19

Food Raw Material

Tea - World Avg. US$/MT 2,550 -3 -7 -12 -18 -14 -17 -14 -6

Copra - India ₹/100KG 14,580 -4 12 21 12 -20 -20 16 43

Kardi (Safflower) Oil ₹/10KG 1,500 -1 23 23 6 11 4 4 25

Sugar ₹/Quintal 3,415 2 2 -4 1 -12 -12 -12 50

Crude Palm Oil ₹/10KG 515 -6 3 -13 2 -4 -4 -4 72

Tea - All India ₹/KG 213 5 5 16 -5 17 6 7 1

Coffee Robusta - Intl. US cents/Pound 83 1 -4 1 -11 -11 -12 -20 -12

Coffee Arabica - Intl. US cents/Pound 132 -5 -8 1 -9 -6 -3 -15 -6

Wheat ₹/Quintal 2,060 -2 0 2 -1 13 13 13 88

RBD Palmolein Kakinada ₹/10KG 571 -7 10 -6 6 -26 -26 -26 24

Barley ₹/Quintal 1,928 0 1 17 31 31 26 12 -2

Rice bran Oil ₹/10KG 450 6 17 25 0 1 10 17 14

Sunflower Oil ₹/10KG 760 1 -2 -4 10 6 14 22 19

Skimmed milk powder ₹/KG 205 0 17 21 17 19 -4 -21 -28

Maize ₹/Quintal 1,993 -1 21 53 59 58 17 -22 -21

Castor Seed ₹/Quintal 5,294 1 3 13 1 13 13 13 NA

Linseed Oil ₹/MT 81,000 -4 -5 -10 -5 -8 -8 -8 55

Cocoa Bean US$/MT 2,247 0 -8 7 -8 2 2 2 1

Coconut Oil ₹/Quintal 15,600 13 4 -9 -20 25 25 25 200

Non-Food Raw Material

Palmy Fatty Acid Distillates US$/MT 459 10 44 -6 -27 31 26 12 -2

Liquid Paraffin ₹/Liter 44 -12 -20 -9 -11 -2 21 23 12

Soda Ash ₹/50KG 1,370 4 6 -6 6 7 7 7 40

Linear Alkyl Benzene ₹/KG 101 -8 -16 -9 -3 0 15 19 11

High Density Polyethylene ₹/KG 103 -6 -19 -19 -3 -3 24 28 20

Crude – Brent US$/Barrel 67 2 25 -17 24 30 30 30 57

Mentha Oil ₹/KG 1680 5 14 NA 12 -4 -4 -4 191

Titanium Oxide – India ₹/KG 274 0 -2 4 12 13 14 6 -5

Vinyl Acetate Monomer – China US$/MT 1,022 -13 -10 -22 -18 -11 6 30 44

Styrene – domestic US$/MT 1,060 4 3 -27 -27 -26 -9 14 24

Caustic Soda US$/MT 606 -4 -11 -17 -8 12 12 12 -43

Gold India ₹/ 10 g 31,918 -4 1 5 1 11 11 11 NA

Silver India ₹/1 KG 37,712 -5 -1 2 -1 -10 -10 -10 75

Current Trends Raw Materials Price Trends

19

January 2018

Initial Public Offering▪ Company is engaged in manufacturing of

electronic components. It offers room air conditioners and air conditioners components like heat exchanger, copper tubing, electric motors etc. The company was incorporated in 1990 and is based in Gurgaon, Haryana.

▪ The proceeds would be used for prepayment or repayment of all or portion of certain borrowings availed by the company and for general corporate purposes

~₹ 6.0bn ~22.2%

July 2018

Initial Public Offering▪ Company is engaged in manufacturing and

marketing women’s wear under the brand name W. The firm operation both offline and online stores.

▪ The entire IPO proceeds will be remitted to the selling shareholders

₹ 11.25bn ~25.6%

April 2018

Initial Public Offering▪ Company owns and operates a chain of hotels

under the brand name Lemon tree premium, Lemon tree hotels, It caters to the segment like upscale for premium and luxuries hotels

▪ The entire IPO proceeds will be remitted to the selling shareholders

~₹ 10.4bn ~23.6%

February 2018

Initial Public Offering▪ The company product range include cosmetic

ingredients, including active ingredients, ultraviolet protection and functional products

▪ The company serves skin care, hair care, oral care, body wash, sun care, household cleaners and fabric care segments

▪ The company was founded in 1980 and is based in Mumbai, Maharashtra

▪ The entire IPO proceeds will be remitted to the selling shareholders

~₹ 9.4bn ~17.9%

December 2018

Joint Venture▪ Warburg to form the JV through its affiliate

Magnolia Grove Investment Ltd.▪ The JV company, Hamstede Living Pvt. Ltd. will

construct, acquire, develop, operate and lease short and long stay real estate projects with primary focus on student housing and co-living working professionals

Shareholding Pattern (Post-Transaction)Warburg Pincus: 68%Lemon Tree Hotels: 30%Mr. Patanjali Keswani (Lemon tree Chairman): 2%

~₹ 15.0bn

Key Deals 2018IPO, PE and M&A

November 2018

Acquisition▪ Ultratech to receive 6.25mt plant in Rajasthan

that comprises of Integrated cement unit with capacity of 4.85mt and 1.4mt split grinding unit

▪ UltraTech has now reached a capacity of ~116MT and has further strengthened its presence in western market of Rajasthan

₹ 79.5bn 98.4%

20

April 2018

PE Investment▪ Deal mix of primary infusion and secondary

transfer▪ It marks a complete buyout which would be

executed in tranches

₹ 12bn 80%

May 2018

PE Investment▪ The proceeds will be used to expanding the

company’s presence and adding to its product assortment and maximizing supply chain efficiency

~ ₹ 52.5bn 100%

December 2018

PE Investment▪ The proceeds will be used to

▪ Onboard food brands, hire talent for its engineering vertical and ramp up its technology backbone and its cloud kitchen vertical

▪ Address gaps in its supply through delivery-only kitchens under its “Access” initiative or restaurant partners

▪ Focus on building the next generation AI-drive platform for hyperlocal discovery and on demand delivery

₹ 70.6bn

February 2019

PE Investment▪ True North is investing through share purchase

agreement followed by an open offer

₹ 1.8bn 77.6%

June 2018

PE Investment▪ PremjiInvest bought the stake from Cedar

Support Services, an affiliate of Bharti Enterprises

▪ By way of consideration, Bharti Enterprises gave ₹ 5.7bn of its proceeds to Future Retail by way of a clawback provision

₹ 16.9bn ~6%

Key Deals 2018IPO, PE and M&A

21

Note: Deal date: Dec 18; * as on 28th March 2019

GlaxoSmithKline Consumer Healthcare (GSK CH)

▪ One of the largest players in Health food & drinks industry in India.The company is an Indian associate of GlaxoSmithKline PLC UKone of the largest consumer health care companies

▪ The company’s principal activities are to manufacture anddistribute a wide range of healthcare food, drugs pharmaceuticaland dairy products

▪ The products include malted milk food, malted foods, biscuits,energy and protein foods, milk powder, ghee, milk fluids and milkcream

▪ The manufacturing plants are located in Nabha in Punjab,Rajahmundry in Andhra Pradesh and Sonepat in Haryana

▪ Listed on both NSE and BSE with market cap of ₹ 302bn*

Hindustan Unilever Limited (HUL)

▪ Incorporated in 1933, HUL is the subsidiary of Unilever, one ofthe world’s leading supplier of Food, Homecare, Personal Careand refreshments segment. Unilever has over 67% shareholdingin HUL

▪ Product segment:✓ Personal Care products include products in category of

oral care, skin care, soaps, hair care, talcum powder andcolour cosmetics

✓ Home care includes detergent bards and detergentpowders

✓ Foods and refreshments✓ Water purifier Pureit

▪ Listed on both NSE and BSE with market cap of ₹ 3,646 bn*

Deal Contours

▪ GSK CH is valued at ₹ 317bn▪ The merger of GSK CH with HUL will be

based on exchange ratio of 4.39 HULshares for each GSK share

▪ GSK’s lead brand Horlicks will be acquiredby Unilever i.e. the parent company of HUL

▪ All GSK’s shareholders will be publicshareholders of HUL post-merger

▪ There is a dilution in the promoter’sequity by 5.28%. Simultaneously there isalso an increase in public shareholding,majority being promoters of GSK

▪ Its complete exit by GSK from Healthfood business both in India andinternationally

“All-stock mergers are emerging as the preferred route for high-value and high-multiple M&A transactions in India”

Financial Snapshot (in ₹ bn)

Particulars HUL GSK Combined

Net Worth 70.7 34.8 105.6

Revenue 357.8 46.3 404.2

EBITDA 77.8 11.4 89.2

EBIT 73.1 10.8 83.8

PAT 52.4 7.0 59.4

EPS (in ₹) 24.2 166.5 25.0

Synergy for HUL

▪ GSK is of the key players in the food andrefreshment (F&R) segment with iconic brandslike “Horlicks” and “Boost” and comprises ofwide portfolio. To build a sustainable andprofitable F&R business GSK and HUL decided toundertake amalgamation of GSK’s business withHUL

▪ Significant synergies through

▪ HUL will distribute GSK’s Over-the-Counter and Oral Health products – Sensodyne, Otrivin, Eno and Crocin - under a consignment selling agreement (5 years)

✓ Supply Chain opportunities

✓ Operational improvement

✓ Go-To-Market and distribution network optimisation

✓ Scale efficiencies

✓ Drive penetration✓ Upgrade and

premiumize✓ Unlock North and

West region✓ Future ready

formatsRevenue from Food and Refreshment Segment

(in ₹ bn) HUL GSK Combined

Foods 11.643.8 107.6

Refreshment 52.1

This is a tax neutral merger under section 2(1B) ofIncome Tax Act. However GSK may monetise theseshares at a subsequent stage hence tax implicationswill arise for GSK promoters

Case StudyGSK giving a Boost to HUL in an all equity merger

22

Strategic Rationale

▪ Significant synergy potential across distribution,supply chain and manufacturing

▪ Leverage distribution channels to drive higherrevenue growth✓ Extensive pan India distribution network

800+ distributors, 17 lakh retailers, 21warehouses and ~1,000 field force

✓ Complementary distribution with addition of alarge general trade Channel to an existingpharmacy channel

▪ Supply chain efficiencies due to complementarityof channels✓ Supply chain milk collection: 90,000+ farmers

with potential to add more▪ Potential cost savings by manufacturing

efficiency across multiple processes▪ The merged entity will have five mfg. units▪ 2mn customer touchpoints

Future Roadmap

▪ Omni channel strategy leveraging strengths ofthe combined entity

▪ Enhancing engagement with key accountsacross organized trade and e-commerce

▪ Pan India footprint by tappingcomplementaries in urban and rural markets

Zydus Wellness

▪ Zydus Wellness Limited is the listed entity of Zydus group and isone of the leading companies in fast growing Indian consumerhealth market

▪ The company has grown over the years on the back of pioneeringbrands like Sugar-Free, EverYuth and Nutralite and innovationsoffering new benefits to consumers

▪ Sugar Free the flagship brand of Zydus Wellness launched in1988 is currently having with over 93% market share

▪ Listed on both NSE and BSE with market cap of ₹ 74bn*

Heinz India

▪ Kraft is the fifth-largest food and beverage company in the world.Company’s iconic brands include Kraft, Heinz, ABC, Capri Sun,Classico, Jell-O, Kool-Ad, Lunchables, Maxwell House, Ore-Ida,Oscar Mayer, Philadelphia, Planters, Plasmon, Philadelphia,Planters, Plasmon, Quero, Smart Ones and Velveeta

▪ In India the group operated under Heinz India Private Ltd. (Heinz)with brands like Complain, Glucon D, Nycil, Sampriti Ghee andKetchup

▪ In 1994 Heinz acquired this product portfolio from Glaxo India Ltd.for ~US$ 70mn. The division that time had annual sales of ~US$50mn

Deal Contours

▪ Zydus entered into definitive agreement toacquire 100% equity shares on Heinz IndiaPrivate Ltd., jointly with Cadila HealthcareLimited (Cadila)

▪ The purchase consideration for the deal is ₹45.9bn. The acquisition of Heinz Indiabrands include Complain, Glucon D, Nyciland Sampriti Ghee

▪ Combined market size for Zydus willbecome around ₹ 110bn with a share of 15%

▪ The deal will be financed partly through thesurplus cash and the remaining amountthrough 1/3 debt and 2/3 equity

▪ Transaction is likely to close by Q4 FY 19subject to regulatory and other customaryapprovals

1988

Sugar Free with Aspartame

Everyuth Skincare range

1991 2005

Sugar Free Natura with Sucrose

2006

Acquisition of Carnation Nutra (CANFL)

2009

Zydus Wellness carved out and listed on NSE

2011

New production facility in Sikkim – Unit I

2014

Distribution revamp

2017

Sugar Free Green with Stevia and new production facility in

Sikkim – Unit II

2018

EY Tan Removal range & Nutrilite Mayonnaise

2018-19

Launch of Sugar Lite Agreement for Acquisition

of Heinz India

Financial snapshot (in ₹ bn)

Zydus Heinz Combined

Revenue 5.3 11.5 16.8

EBITDA 1.3 2.3 3.5

Revenue and EBITDA are for 12 months ended 30 June 2018

Case StudyAdds more Sugar to Zydus

Zydus was looking for target which fits into its strategy and build war chest of ₹ 5.6bn. The acquisition will definitely be going to provide the best opportunity for Zydus to scaleits operations rapidly but not without multiple challenges. Since last couple of years, growth for Complan and Glucon D is stagnant. To bring them back on double digit growth isgoing to be the key challenge for Zydus

Note: ; Deal date: Oct 18; * as on 28th March 201923

1The acquisition is subject to customary conditions precedent, including approval from the Competition Commission of India, and other conditions precedent

Group Lactalis

▪ Groupe Lactalis was founded in 1933 and is headquartered inLaval, France

▪ Lactalis, Europe’s biggest dairy group with a presence in over120 countries

▪ The company offers cheeses, liquid milk, yogurt and chilled dairyproducts, butter and cream, dairy ingredients and powder, etc.

▪ It has production sites in the Americas, Europe, Africa, Asia, andOceania

▪ In India, Lactalis operates through Tirumala Milk products(acquired in 2014) and Indore based Anik Industries (acquired in2016)

Prabhat Dairy

▪ Prabhat Dairy was founded in 1998 and is based in Navi Mumbai,India

▪ Prabhat Dairy operates as an integrated milk and dairy productscompany with aggregate milk processing capacity of 1.5mn litersper day

▪ The company offers milk and milk products such as clarifiedbutter, cheese, milk powder, lassi, ice creams, paneer, shrikhand,curd, butter, yogurt, etc.

▪ The company owns two factories, including one of the largestsweetened condensed milk plants in India, and employs 1,239people

Strategic Rationale

• With the acquisition of Prabhat DairyLactalis will have dominance in WesternIndia

• It would strengthen its market positionmaking it the biggest private milk collector inthe country

• The acquisition will also help Lactalis reducedependence on home markets within Europe

• Post transaction, promoters of Prabhat Dairyintend to develop the cattle feed business aswell as expand into Animal Nutrition andGenetics

Transaction Overview1

▪ Lactalis, via it’s wholly owned subsidiaryTirumala Milk Products will buy PrabhatDairy's unit Sun fresh Agro Industries

▪ The transaction involves sale of the dairybusiness of Prabhat Dairy (contributes98.24% of revenue) by way of slump saleon a going concern basis, along with the saleof 100% shareholding in Sun fresh AgroIndustries (a step down subsidiary ofPrabhat Industries)

Deal Contours

▪ Total Deal Value = ₹ 17bn (US$ 239mn)

✓ Stake Sale in subsidiary Sunfresh AgroIndustries:

• Deal Value = ₹ 12.3bn• Sales (FY 18) = ₹ 9.5bn• EV/Sales = 1.3x

✓ Slump Sale – Dairy Business of PrabhatDairy:

• Deal Value = ₹ 4.7bn• Sales (FY 18) = ₹ 5.84bn• EV/Sales = 0.8x

Case StudyPrabhat Dairy (Milk Products Business) acquired by Groupe Lactalis

Note: Deal date: Jan 19 24

Date Company Buyer (s) SegmentDeal Value

($ mn)Stake(%)

Private Equity

Feb-19 MedPlus Health Services PI Opportunities Fund I Drug Retail 28.7 13.16

Zomato Media Delivery Hero Holding GmbH, Shunwei Capital Partners Internet Retail 62.0 2.85

Jan-19

Purple Panda Fashions AT Capital Pte, IvyCap Ventures Advisors Apparel and accessories 10.0 NA

Caplin Steriles Eight Roads Ventures India, F Prime. Textiles 34.1 25.29

Citykart Retail India SME Investments, IDFC Private Equity Fund IV Retail 14.0 NA

Baazar Style Retail Haldiram Group, Individual Investors Retail 7.2 NA

Dec-18

Faasos Evolvence, Sistema, Lightbox, Sequoia Internet software & services 30.0 NA

Bloom Hotels Samena Capital Consumer Service 14.3 NA

Aqualite International Finance Corporation (IFC), Lighthouse Footwear 45.9 NA

Amar Chitra Katha SSG Capital Management Consumer Service NA NA

Suminter India Organics responsAbility Investments AG Food and Beverage NA NA

Delightful Gourmet 3 one 4 Capital, Bertelsmann, Vertex , ULCA, Sistema Food and Beverage 25.0 NA

Zydus Wellness True North, PI Opportunities, Pioneer Investments FMCG 156.0 13.79

Sapphire Foods Edelweiss, Goldman Sachs Food and Beverage 32.0 NA

Nov-18

Baazar Retail NR Group, O3 Capital Global Advisory, Siguler Guff India Retail 50.0 NA

Future Retail Edelweiss Special Opportunities Retail 30.0 0.80

Wakefit Sequoia Capital Consumer Durable 9.0 31.93

Oct-18

Zomato Media Payme (Alibaba), Glade Brook Capital Internet software & services 245.2 NA

Naturell India Rabo Equity Advisors Food and Beverage NA 20.00

Kooh Sports Gaja Capital Consumer service 10.0 NA

Duroflex Lighthouse India Fund III, Sachin Kumar Bhartiya Home Furnishings 21.7 NA

Sep-18

Ban Labs True North FMCG 96.0 75.00

Gemini Edibles & Fats Black River Food Food and Beverage 88.0 25.00

Walmark Meditech India Opportunity Fund FMCG 1.5 NA

Stanley Lifestyles Oman India Joint Venture Consumer Durable 24.0 26.86

LT Foods (Nature Bio-Foods) Rabo Equity Advisors Food and Beverage 20.0 NA

Aug-18 Merhaki Foods and Nutrition (&Me) Matrix Food and Beverage NA NA

Jul-18

Srinivas Farms IFC Food and Beverage 23.0 NA

NSPIRA Morgan Stanley, Banyan Tree Consumer Service 75.0 NA

Enrich Hair and Skin Solutions Westbridge Capital FMCG 23.3 67.85

Jun-18Wildcraft India FW Sports Investment Fund L.P. Apparel 11.3 7.84

Lenskart Solutions TR Capital, Steadview Capital, Epiq Capital Retail 75.0 NA

Note: Deal period: Apr 18-Mar 19

TransactionsPrivate Equity Investments (1/3)

25

Date Company Buyer (s) SegmentDeal Value

($ mn)Stake(%)

Jun-18Grover Zampa Vineyards Ausom Enterprise, VisVires Capital Asia Food and Beverage 19.1 NA

Kishlay Foods Intensive Softshare, Norwest Venture Partners Food and Beverage 14.5 NA

May-18

B9 Beverages Sofina SA, Sequoia Capital and Others Food and Beverage 50.0 NA

Bikaji Foods International IIFL Special Opportunities Fund I Food and Beverage 36.9 NA

Y-Cook 021 Capital, Omnivore Capital, Oikocredit Food and Beverage 5.0 36.60

Fresco Global Banyan Tree Capital FMCG 5.0 NA

Future Lifestyle Fashions L Catterton Asia Apparel Retail 99.2 8.18

Wonderchef Home Appliances Amicus Capital Private Equity I Housewares & Specialties 10.3 NA

Apr-18

Imperativ Hospitality Samena Capital Investments Hotels and Resorts 31.7 49.75

Mountain Trail Foods (Chai Point) Paragon Partners, Saama , Eight Road, DSG Consumer Food and Beverage 20.0 NA

Cycle Pure incense sticks Motilal Oswal FMCG NA NA

Venture Capital

Feb-19Maverix Platforms Zephyr Peacock India Fund III, Accel India V LP Food and Beverage 8.8 35.35

Country Delight Matrix Partners India, Orios Venture Partners Food and Beverage 10.0 NA

Dec-18 High Street Essentials SAIF Advisors FMCG 9.8 NA

Nov-18 Pureplay Skin Sciences (Plum) Unilever Ventures FMCG 2.0 16.35

Oct-18Bright Lifecare Sequoia Capital India, IIFL Alternate Asset Advisors Retail 10.0 NA

The Souled Store RP-Sanjiv Goenka Venture Capital Retail 3.0 NA

Sep-18

Mukunda Foods SAR Group (Ncubate) Food and Beverage NA NA

Home Interior Designs E-commerce (Livspace)Bessemer, Jungle Ventures Asia, Goldman Sachs, Helion, TPG

Retail 70.0 NA

Chotta Haazri Foods Artha Ventures Food and Beverage NA NA

NetMeds Marketplace Tanncam Investment, Sistema Asia, Daun Penh Cambodia Retail 35.0 NA

Aug-18Clues Network GIC, Unilazer Ventures Retail 16.0 NA

FSN E-Commerce Ventures (Nykaa.com) Lighthouse, Sequoia Retail 15.9 NA

Start-ups

Mar-19 Grofers Soft Bank Vision Fund Retail 60.0 NA

Jan-19

Tangy Turmeric Fireside Fund Food and Beverage NA NA

Supa Star Food Roots Ventures LLP Food and Beverage NA NA

Arata Zero Chemicals (Slick Organics) DSG Consumer FMCG 0.5 NA

Dec-18

Drums Food International Danone Manifesto, DSG Consumer Partners, Verinvest Food and Beverage 25.9 NA

Generico Whiteboard Capital, Tomorrow Capital Retail 3.0 NA

Ninjacart Accel, Syngenta Internet software & services 35.0 NA

Note: Deal period: Apr 18-Mar 19

TransactionsPrivate Equity Investments (2/3)

26

Date Company Buyer (s) SegmentDeal Value

($ mn)Stake(%)

Nov-18 Delightful Gourmet Nichirei Logistics, 3one4 Capital Fund, Bertelsmann Food and Beverage 25.0 NA

Oct-18 Universal Sportsbiz Accel Apparel and accessories 13.5 8.45

Sep-18Delightful Gourmet 3one4 Capital, Mayfield India, Sistema Asia, 3one4 Capital Food and Beverage 20.0 26.98

Sierra Nevada and Dolomite Restaurants Hunch Ventures Food and Beverage 13.9 50.00

Aug-18Raw Pressery (Rakyan Beverages) Alteria Capital Food and Beverage 5.0 NA

Chaayos (Sunshine Teahouse) SAIF Partners Food and Beverage 12.0 28.67

Jul-18 Faraway Foods Nisaba Adi Godrej, Angel investors Food and Beverage 0.5 NA

Jun-18Goa Brewcrafts Saama Capital, DSG Partners Asia Pte Food and Beverage 1.1 40.00

DailyNinja Delivery Services Saama Capital, Sequoia Capital, Matrix India Food and Beverage 0.3 NA

May-18 White Owl Breweries IIFL Select Equity, Angel Investors Food and Beverage 8.2 37.78

PIPE Deals

Mar-19Lux Industries Abakkus Growth Fund Textile 5.2 1.18

Hindustan Foods WestBridge Ventures I Food and Beverage 7.9 11.61

Feb-19 Emami PI Opportunities Fund I Personal Products 84.0 3.72

Jul-18 Bajaj Corp. Saif Partners FMCG 5.1 0.56

Jun-18 V2 Retail India 2020 Fund Retail 1.2 NA

May-18 Ganesha Ecosphere DSP Black Rock, SBI Funds and TCG Advisory Textiles 15.0 9.11

Apr-18 Gokaldas Exports L and T Investment Management Textiles 10.5 4.96

Block deal

Jan-19Page Industries Nalanda India (Sell-off) Textile 57.5

Kewal Kiran Clothing Nalanda India (Sell-off) Textile 4.6

Nov-18 Future Retail Edelweiss Special Opportunities (Buy) Retail 30.0

Aug-18 Safari Industries Tano India (Sell-off) Consumer Durable 4.2

Jun-18 Kajaria Bathware Aravali Investment Holdings (Buy) Building Products 9.6

Note: Deal period: Apr 18-Mar 19

TransactionsPrivate Equity Investments (3/3)

27

Date Company Buyer (s) SegmentDeal Value

($ mn)Stake (%)

Mar-19

John Players (ITC Ltd.) Reliance Retail Apparel and Accessories NA 100.0

Nature’s Essence Samara Capital Personal Products 29.0 65.0

Sidwal Refrigeration Industries Amber Industries Consumer Durable NA 80.0

Leela Hotels Brookfield Asset Management Hotels and Resorts 576.0 100.0

Kama Ayurveda Puig SL Internet Retail 14.3 NA

Lamba Food Products Haldiram Snacks Food and Beverage 21.2 100.0

Soktas India Grasim Industries Textile 23.2 100.0

Digiphoto Entertainment Imaging Thomas Cook Consumer Service 20.7 51

Feb-19

Skechers South Asia Skechers USA Inc. Footwear 81.4 49.0

Genesis Colors Reliance Retail Ventures Apparel and Accessories 6.3 9.4

PepsiCo India (Franchise rights in MH and MP) Varun Beverages Food and Beverage NA 100.0

Future Consumer Products Future Consumer FMCG NA 10.0

Jan-19

ATC Beverages Hindustan Foods Food and Beverage 0.2 40.0

Bombay Blue (Pan India Food Solutions) Yellow Tie Hospitality Management Consumer Service NA NA

Umraan, Wok This Way, Health Juice Centre Yellow Tie Hospitality Management Consumer Service NA 100.0

Crème 21 Emami FMCG NA NA

Four Seasons Wines Grover Zampa Vineyard, Quintela Assets Food and Beverage 4.5 100.0

John Distilleries Sazerac Food and Beverage NA 20.0

Dec-18

NSI Infinium Global Suvidhaa Infoserve Internet Retail 69.5 100.0

Estima AG KDDL Apparel and Accessories 0.4 100.0

Ritvika Trading Future Enterprises Retail NA 100.0

Nov-18Nirulas Corner House (Restaurant) Coldmiths Retail Services (Banyan Tree Capital) Consumer Service NA 100.0

Affluence Food Processors Future Consumer Food and Beverage NA 50.0

Oct-18WIMWI Foods Parle Biscuits Food and Beverage 0.3 30.0

HB Education (Cox & Kings) Midlothian Capital Partners Consumer service 600.0 100.0

Sep-18

Kajaria Floera Ceramics Kajaria Ceramics Building Products 0.4 29.0

Mcleod Russel India (2 tea estates) Goodricke Group Food and Beverage 12.6 100.0

Nirlep Appliances Bajaj Electricals Consumer Durable 6.3 79.9

Lozalo Pet Cosmetics Rossari Biotech FMCG NA 100.0

Aug-18

Godrej Consumer Products UK JK International FMCG 44.0 100.0

Avadh Snacks Prataap Snacks Food and Beverage 21.1 80.0

Fonterra Co-operative Future Consumer Food and Beverage NA 50.0

Note: Deal period: Apr 18-Mar 19

TransactionsMergers and Acquisitions (1/2)

28

Date Company Buyer (s) SegmentDeal Value

($ mn)Stake (%)

Aug-18Amar Chitra Katha Griffin Partners Consumer Service NA 100.0

Vijaykant Dairy and Food Products, Adityaa Milk Hindustan Unilever Food and Beverage NA 100.0

Jul-18

Australian Foods India (Cookie Man) Modern Food Enterprises Food and Beverage NA 100.0

Dreamcann Foods Haldiram Snacks Food and Beverage NA 100.0

Genesis Colours Reliance Brands, Reliance Retail Ventures Retail 34.8 69.1

Rex Polyextrusion Astral Poly Technik Building products 21.4 100.0

Godrej Consumer Products, Brand Snuggy Nobel Hygiene FMCG NA 100.0

Visage Lines Personal Care Fireside Investment Advisory, Colgate-Palmolive India FMCG 2.6 14.0

Jun-18

Hind Pocket Books Penguin Random House Consumer service NA 100.0

Climate Technologies Symphony Consumer durable 33.0 100.0

Loli Beauty Inc Emami FMCG 0.6 100.0

Promptec Renewable Energy Solutions Havells India Consumer durable NA 31.1

Arpita Agro Products, Nimyle ITC FMCG NA 100.0

Mcleod Russel India (4 tea estates) Luxmi Tea Food and Beverage 21.0 100.0

Mcleod Russel India (8 tea estates) MK Shah Exports Food and Beverage 49.4 100.0

Elica PB India Whirlpool Consumer durable 24.2 50.0

May-18Foodworld Business (Foodworld Supermarkets) Future Retail Retail 6.0 100.0

ThinOptics Lenskart Solutions Retail 0.5 NA

Apr-18 Danone (dairy facility) Parag Milk Food Consumer durable 4.6 100.0

Start-ups

Oct-18

Lets Shave Droco FMCG NA 10.0

RainCain, Morning Star, Savis retail (Kwik24) Big Basket Retail NA 100.0

WakeupBasket (CrockSys Technologies) DailyNinja Delivery Services Retail NA 100.0

Holachef Foodpanda Retail NA 100.0

Aug-18Magsons Network Natures Basket Retail NA NA

Bombay Shaving Colgate Palmolive FMCG 2.6 14.0

Note: Deal period: Apr 18-Mar 19

TransactionsMergers and Acquisitions (2/2)

29

IPO filings

Issue Details

Date Company Name Sector Issue Size (₹ mn) O/S Shares (in mn) Fresh Issue (₹ mn) Offer for sale (in mn)

Oct-18 Polycab India Electrical Equipment - 141.2 5,000 24.9

Oct-18 Prince Pipes and Fittings Plastic Products 6,000 90.0 4,000 2,000

Sep-18 Stovekraft Consumer Durable - - 1,450 7.2

Sep-18 Flair Writing Industries Office Services 4,500 23.3 3,300 -

Aug-18 Mrs. Bector's Food Specialities Food and Beverage 8,000 57.3 -

-

Aug-18 Dodla Dairy Beverages - 55.7 1,500 9.5

Jul-18 Aakash Educational Services Educational services - 66.7 - 18.5

Jun-18 Penver Products Food and Beverage - 53.4 2,420 4.1

Jun-18 Anmol Industries Food and Beverage 7,500 61.8 - -

Jun-18 Vectus Industries Building Materials - 13.1 850 3.9

May-18 P. N. Gadgil and Sons Diamond and Jewellery 5,000 33.8 - -

Bonus Issue

Company Name Bonus Ratio Announcement Record Ex-Bonus

Cupid 1:5 24-08-2018 12-10-2018 11-10-2018

GlaxoSmithKline 1:1 24-07-2018 13-09-2018 11-09-2018

Borosil Glass 3:1 18-06-2018 03-08-2018 02-08-2018

Jyothy Labs 1:1 16-05-2018 30-06-2018 28-06-2018

Avanti Feeds 1:2 09-05-2018 27-06-2018 26-06-2018

Emami 1:1 03-05-2018 22-06-2018 21-06-2018

Jubilant Food 1:1 08-05-2018 23-06-2018 21-06-2018

Essel Propack 1:1 26-04-2018 21-06-2018 20-06-2018

GM Breweries 1:4 05-04-2018 22-05-2018 21-05-2018

La Opala RG 1:1 05-02-2018 23-03-2018 22-03-2018

Note: Deal period: Apr 18-Mar 19

TransactionsEquity Capital Markets (1/2)

30

Stock Split

Company Stock Price (₹) as on Split Date Old FV (₹) New FV (₹) Split Date

Britannia 3,016 2 1 29-11-2018

DFM Foods 253 10 2 01-11-2018

Avanti Feeds 599 2 1 26-06-2018

Uniply Ind 81 10 2 25-06-2018

United Spirits 677 10 2 15-06-2018

Buyback of shares

Company Buyback Period Buyback Price (₹) Maximum Quantity Size (₹ mn)

KPR Mills 16 Mar 2018 to 02 Apr 2018 810 13,35,000 1,081

Rights Issue

Company Rights Ratio FV (₹) PremiumDate

Announcement Record Ex-Rights

Shalimar Paints 3:2 2 63 23-05-2018 09-11-2018 06-11-2018

Hatsun Agro 1:16 1 554 06-12-2017 01-06-2018 31-05-2018

Note: Deal period: Apr 18-Mar 19

TransactionsEquity Capital Markets (2/2)

31

Projects Under Execution

Date Company Segment Cost

(₹ mn) Location

Jan-19 Angd Fruit Ranch Fruit Juices 450 Shimla

Oct-18 Devi Sea Foods Sea Food 200 West Godavari

Sep-18 Gujarat Co-op. Milk Mkgt. Fed Dairy 2,000 Howrah

Aug-18 Natures Fresh Namkeen Mixtures 200 Varanasi

Jul-18 Wellcome Fisheries Shrimp & Fish 320 West Godavari

Jun-18 Gujarat Ambuja Exports Starch 2,050 Sitarganj

Apr-18 Varun Beverages Soft Drinks 8,000 Pathankot

Apr-18 Parle Biscuits Confectioneries 1,480 Chittoor

Apr-18 Stellar Cold Chain Frozen Foods 220 Kashipur

Apr-18 Vimal Agro Products Fruit Pulp NA Surat

Apr-18 Sandhya Marines Fish Feed Mill NA West Godavari

Mar-18 Sai Marine Exports Shrimp 540 Visakhapatnam

Dec-17 Bikaji Foods Biscuits NA Bikaner

Dec-17 Dodla Dairy Dairy 700 East Godavari

Oct-17 Patanjali Ayurved Food Processing 5,000 Dhar

Jan-17 Hindustan Coca-Cola Beverages Beverages 7,500 Hoshangabad

Sep-16 Patanjali Ayurveda Food Processing 10,000 Nagpur

Capital Expenditure

Projects Completed

Date Company Segment Cost

(₹ mn)Location

Nov-18 Sayaji IndustriesDextrose Monohydrate

400 Ahmedabad

Oct-18 Mondelez India Foods Research 1,000 Thane

Oct-18 Ghodawat Foods International Carbonated Fruit Drinks

NA Kolhapur

Sep-18 Swaraj India Agro Sugar 2,830 Satara

Sep-18 Apex Coco & Solar Energy Soft Drinks 2,000 Coimbatore

Sep-18 Gujarat Co-op. Milk Mktg. Chocolates 1,900 Anand

Sep-18 Nekkanti Sea Foods Sea Food NA Nellore

Jul-18 Britannia Industries Biscuits 1,700 Kamrup

Jul-18 Speciality RestaurantsBakery & Confectionery

NA Kolkata

May-18 Britannia Industries Biscuits 1,500 Kachchh

May-18 Hangyo Icecreams Dairy Products 180 Udupi

Apr-18 Panchmahal District Co-op. Dairy 3,000 Taloja MIDC

Apr-18 Devi Sea Foods Shrimp Feed 300 Prakasam

Apr-18 Innovative Foods Frozen Parathas NA Chittoor

Mar-18 Inbisco IndiaBiscuits & Confectionery

8,000 Ahmedabad

Mar-18 Avanti Feeds Shrimp Feed 500 West Godavari

Feb-18Mother Dairy Fruit & Vegetable

Food & Vegetable

830 Ranchi

Jan-18 Karnataka Co-op. Milk Powder 3,000 Dharwad

32

Company

Market Cap

Stock Price

Ent.Value

Revenue EBITDA margin

PAT margin

EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

FMCG

ITC 3,677.2 300.0 3,547.8 431.2 38.3 26.2 6.9 7.5 6.8 6.1 8.2 19.4 17.2 15.4 32.4 29.4 26.2 23.6 22.81 30.18 18.76

Hindustan Unilever 3,645.1 1,683.9 3,581.8 347.8 21.6 15.1 8.1 9.1 8.0 6.8 10.3 40.6 34.4 28.4 69.9 58.5 49.4 41.5 74.65 75.03 31.19

Dabur India 727.8 412.1 730.6 76.5 21.3 17.4 7.5 8.4 7.4 6.6 8.7 40.0 34.4 29.9 53.6 47.4 40.5 34.8 25.27 53.56 16.23

Godrej Consumer 709.1 693.7 718.1 97.7 21.2 16.6 7.8 6.8 6.1 5.5 7.0 32.3 28.1 24.6 43.4 44.4 38.3 33.2 28.00 81.28 11.99

Procter & Gamble 347.5 10,706.0 341.1 24.6 25.3 15.4 13.0 12.0 10.2 NA 12.6 49.6 38.2 NA NM NA NA NA 56.91 84.23 29.31

Colgate-Palmolive IN 340.5 1,251.9 336.2 41.6 26.7 16.2 6.8 NA NA NA 7.7 NA NA NA 50.6 46.3 40.7 34.8 48.13 NA 27.63

GSK CH 303.8 7,224.9 265.3 43.2 20.5 16.2 5.1 NA NA NA 5.7 NA NA NA 43.4 32.3 30.1 27.2 21.18 21.86 13.50

Gillette India 215.3 6,606.9 213.8 16.8 22.8 13.7 12.3 11.5 10.2 NA 11.9 50.1 42.3 NA NM NA NA NA 38.34 59.82 20.75

Emami 180.6 397.8 182.4 24.9 28.9 14.5 9.8 6.7 5.9 5.3 6.8 23.8 21.0 18.5 58.8 36.6 30.8 26.0 19.16 NM 13.36

Jyothy Laboratories 67.6 184.1 69.8 17.3 15.6 9.2 4.3 3.6 3.2 2.9 NA 23.0 20.0 17.7 36.0 36.2 30.8 26.5 14.30 NM 8.34

Bajaj Consumer Care 46.1 312.8 43.1 8.1 31.4 26.4 8.2 4.8 4.3 3.8 5.3 15.6 13.7 12.1 21.9 20.0 17.8 16.0 43.25 47.75 35.65

Agro and Food Processing

Nestle India 1,067.6 11,073.1 1,032.6 112.2 24.7 14.4 9.2 NA NA NA 9.2 NA NA NA 66.4 66.4 57.2 50.3 45.52 32.03 20.90

Britannia Industries 744.2 3,096.6 738.1 98.3 15.3 9.8 6.0 6.7 5.8 5.1 6.9 41.8 34.9 29.4 NM 63.4 52.7 43.9 31.63 39.29 20.77

Marico 436.8 338.4 427.1 62.9 18.1 12.5 6.6 5.8 5.1 4.6 5.9 32.5 27.0 23.5 53.5 46.2 38.2 33.1 32.32 44.15 20.40

Jubilant Foodworks 192.6 1,459.4 188.7 30.2 14.6 6.5 5.0 5.2 4.5 3.9 6.3 31.2 26.2 22.2 NM 60.5 48.9 40.3 22.13 NA 14.08

KRBL 79.8 339.2 78.5 32.5 23.9 13.4 3.5 2.1 1.9 2.0 2.1 9.2 8.3 8.3 18.4 15.9 13.9 13.4 20.71 20.82 11.96

Zydus Wellness 75.0 1,301.1 69.7 5.1 24.4 25.5 8.0 12.1 4.5 3.1 12.5 51.5 28.4 21.5 38.0 40.0 31.9 26.6 20.97 24.79 17.27

Avanti Feeds 57.4 421.3 51.9 33.9 20.1 12.7 2.9 1.4 1.2 1.0 1.5 12.2 10.0 7.6 12.9 18.8 15.3 NA 51.74 48.04 33.24

CCL Products India 38.3 288.0 41.0 11.4 21.2 13.0 3.5 3.5 2.9 2.6 3.6 15.0 12.3 10.7 25.9 22.4 18.1 15.2 21.65 19.63 14.95

Mishtann Foods 31.1 62.2 31.4 2.6 NA 0.5 NA NA NA NA NA NA NA NA NM NA NA NA NA NA NA

Heritage Foods 25.1 540.9 26.1 23.7 5.9 2.7 1.5 1.0 0.9 0.8 1.1 14.3 12.2 10.2 40.0 30.0 24.5 19.4 9.29 25.30 4.71

Gujarat Ambuja 25.0 217.7 27.9 33.3 9.5 5.4 1.0 0.7 0.7 0.6 0.8 6.8 6.1 5.5 13.9 11.2 9.9 9.0 19.18 20.37 9.98

Tasty Bite Eatables 21.8 8,500.0 22.1 2.8 17.1 9.5 6.9 NA NA NA 6.7 NA NA NA NM NA NA NA 30.46 23.16 14.63

Prataap Snacks 21.4 913.4 19.5 10.2 8.6 4.4 2.8 1.7 1.3 1.2 1.7 23.8 16.9 13.5 44.1 56.3 40.4 30.7 11.77 12.60 8.26

Agro Tech Foods 14.2 580.7 13.7 8.1 8.2 3.9 1.9 1.6 1.5 1.3 NA 18.9 16.5 14.5 42.8 38.7 32.7 27.8 9.72 11.32 7.44

LT Foods 12.6 39.4 26.5 36.1 10.5 3.7 1.2 0.7 0.6 0.5 0.7 6.1 5.3 4.7 8.2 7.4 6.0 5.0 14.60 28.55 4.49

DFM Foods 10.7 212.9 10.9 4.2 11.0 5.5 3.4 NA NA NA 2.4 NA NA NA 45.7 NA NA NA 25.10 18.23 8.88

Apex Frozen Foods 10.6 340.2 11.4 10.0 11.0 7.9 1.9 NA NA NA NA NA NA NA 12.1 NA NA NA 38.42 38.44 22.35

Waterbase 6.9 167.5 7.0 3.4 16.9 8.8 3.3 NA NA NA 1.8 NA NA NA 22.1 NA NA NA 21.81 22.01 11.89

ADF Foods 4.8 241.1 4.8 2.1 14.1 8.7 1.9 2.0 1.8 NA 2.0 9.4 8.4 NA 28.3 16.1 14.3 NA 10.59 14.26 8.69

Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful

Public Market DataFMCG and Agro, Food Processing

33

Company

Market Cap

Stock Price

Ent.Value

Revenue EBITDA margin

PAT margin

EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Sugar

EID Parry India 36.2 204.6 79.0 126.0 10.9 1.9 0.8 NA NA NA 0.5 NA NA NA 14.1 NA NA NA 8.54 16.59 1.74

Balrampur Chini Mills 30.9 135.2 40.7 43.4 13.8 5.2 0.6 1.0 0.9 0.9 0.9 6.2 5.9 5.5 13.7 7.1 7.0 6.4 14.34 15.41 5.90

Shree Renuka Sugars 19.6 10.2 50.4 77.3 -15.6 -28.5 0.8 NA NA NA 0.7 NA NA NA NA NA NA NA NA NA -19.29

Bannari Ammn Sugars 18.8 1,500.2 23.9 14.8 14.2 5.9 1.8 NA NA NA 2.3 NA NA NA 21.6 NA NA NA 7.94 8.12 4.05

Triveni Engineering 15.4 59.8 21.1 33.6 8.7 3.6 0.7 NA NA NA 0.7 NA NA NA 12.9 NA NA NA 13.38 19.09 3.88

Dhampur Sugar Mills 15.2 229.1 22.5 33.5 10.6 4.5 0.7 NA NA NA 0.8 NA NA NA 10.0 NA NA NA 15.94 16.31 4.69

Dalmia Bharat Sugar 9.8 120.8 11.6 22.7 11.0 5.1 0.4 NA NA NA NA NA NA NA 8.0 NA NA NA 8.45 10.85 4.00

Bajaj Hind. Sugar 9.1 8.0 64.8 58.5 16.2 -8.5 1.1 NA NA NA NA NA NA NA NA NA NA NA -15.59 NA -3.52

Beverages

United Spirits 386.9 532.4 413.5 83.7 14.3 5.7 5.8 4.3 3.9 3.5 4.9 29.4 25.2 21.5 59.6 50.1 40.3 32.8 22.83 50.94 5.38

United Breweries 363.5 1,374.9 364.4 56.2 16.1 7.0 4.5 5.6 5.1 4.5 5.8 29.6 26.4 23.1 NM 59.5 51.8 44.1 15.71 17.41 8.58

Varun Beverages 149.0 816.0 171.8 51.1 20.1 6.0 3.3 2.8 2.3 2.0 3.4 14.4 11.8 10.0 50.9 44.9 34.9 25.0 16.25 13.61 5.41

Tata Global Beverages 125.6 199.0 133.8 67.1 12.5 7.2 2.5 1.8 1.7 1.6 1.9 16.9 14.5 12.8 25.3 26.4 22.9 20.0 7.22 17.71 4.75

Hatsun Agro Product 108.8 715.0 118.6 42.9 8.7 2.1 2.7 NA NA NA 2.8 NA NA NA NM NA NA NA 25.20 20.78 4.86

Radico Khaitan 53.5 401.2 57.1 18.0 14.8 6.9 2.8 NA NA NA 2.8 NA NA NA 43.3 NA NA NA 11.38 18.43 5.55

Parag Milk Foods 21.6 257.2 23.6 19.5 9.9 4.5 1.2 1.0 0.9 0.8 1.1 9.9 8.5 7.2 24.8 18.8 15.7 13.0 13.02 17.03 6.52

Tata Coffee 16.8 89.9 31.3 15.0 16.9 7.1 2.2 NA NA NA 1.8 NA NA NA 15.7 NA NA NA 9.71 NA 3.81

GM Breweries 12.0 654.6 11.9 4.3 25.3 16.7 3.2 NA NA NA 2.6 NA NA NA 16.4 NA NA NA 27.62 NM 22.61

McLeod Russel India 9.0 85.8 19.3 20.6 6.9 10.1 1.3 NA NA NA 0.9 NA NA NA 3.5 NA NA NA 10.08 17.49 5.70

SOM Distilleries 4.9 157.0 5.9 3.5 16.7 7.1 2.0 NA NA NA 1.3 NA NA NA 17.1 NA NA NA 16.52 14.03 7.43

Associated Alcohols 4.4 245.0 4.6 2.9 13.9 6.0 1.1 NA NA NA NA NA NA NA 26.2 NA NA NA 19.68 19.94 10.38

Globus Spirits 4.0 138.1 6.0 9.7 9.8 0.6 0.6 NA NA NA NA NA NA NA 69.7 NA NA NA 1.52 3.93 0.72

Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful

Public Market DataSugar and Beverages

34

Company

Market Cap

Stock Price

Ent.Value

Revenue EBITDA margin

PAT margin

EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Consumer Durables

Havells India 475.7 760.6 459.4 81.0 12.9 7.8 3.6 4.5 3.9 3.4 NA 36.5 30.2 25.6 NM 56.0 46.0 38.5 17.93 23.28 10.67

Siemens 387.5 1,088.1 350.6 123.6 10.7 7.3 2.4 2.5 2.3 2.1 2.8 22.8 20.8 18.5 43.0 36.8 31.6 29.3 11.26 13.90 6.56

Voltas 207.2 626.3 210.1 63.6 10.4 7.8 3.1 2.9 2.6 2.3 3.0 29.6 25.3 22.1 36.2 36.7 31.4 27.0 13.83 37.81 7.23

Whirlpool of India 190.1 1,498.0 180.1 48.1 11.7 7.3 3.8 NA NA NA 3.4 NA NA NA 54.2 NA NA NA 21.42 25.49 11.51

CG Consumer Elect. 138.3 220.6 137.1 40.7 13.0 7.9 3.7 3.0 2.7 2.4 3.1 22.7 19.1 16.7 42.7 36.4 29.9 25.4 49.40 NM 14.23

TTK Prestige 98.8 8,557.1 97.1 18.7 13.2 14.1 3.8 4.5 4.0 3.4 5.2 32.4 27.3 23.0 37.6 50.5 42.6 36.0 28.13 28.80 18.44

Symphony 97.7 1,396.9 94.9 8.0 27.5 21.3 15.4 9.9 7.9 6.7 NA 51.4 37.0 30.0 50.8 64.1 47.6 39.6 31.45 43.35 24.87

V-Guard Industries 94.6 221.5 93.0 23.3 8.2 5.8 4.0 3.6 3.1 2.8 NA 43.1 30.8 28.4 NM 56.1 41.4 37.5 19.40 20.46 12.76

Blue Star 64.3 667.1 68.9 46.9 5.9 3.2 1.6 1.3 1.2 1.0 1.3 22.0 17.4 14.3 42.7 42.3 30.7 24.1 19.32 37.76 5.17

Bajaj Electricals 58.0 566.6 65.0 46.9 6.3 1.8 1.4 NA NA NA 1.4 NA NA NA 68.8 NA NA NA 9.19 24.79 2.53

IFB Industries 39.0 962.2 38.3 22.2 7.9 3.6 2.0 1.5 1.2 1.0 1.5 27.0 16.6 12.5 48.2 59.0 31.2 22.3 15.77 16.23 7.91

Orient Electric 31.8 149.9 32.9 15.7 8.7 4.1 NA NA NA NA 1.8 NA NA NA 49.6 NA NA NA NA NA NA

Dixon Technologies 26.8 2,364.0 27.3 28.3 4.5 2.1 1.3 0.9 0.7 0.6 1.0 19.6 15.0 12.8 43.4 37.4 27.4 22.7 23.79 27.44 6.86

Amber Enterprises 25.3 805.2 28.5 21.7 7.8 2.9 NA 1.1 0.9 0.8 1.3 14.4 11.0 9.3 40.6 28.8 20.2 16.2 9.34 16.87 2.32

Hawkins Cookers 16.3 3,074.9 16.0 5.5 12.8 8.8 2.6 NA NA NA 2.5 NA NA NA 33.4 NA NA NA 44.97 44.12 20.24

Retail

Avenue Supermarts 916.8 1,469.0 914.9 150.0 9.0 5.1 5.5 4.6 3.6 2.9 6.1 55.4 42.6 33.1 NM NM NM 55.4 17.99 17.00 13.35

Future Retail 228.7 455.1 242.7 184.8 4.5 2.4 1.6 NA NA NA 1.3 NA NA NA NM NA NA NA 15.40 25.00 5.75

Aditya Birla Fashion 171.1 221.7 184.4 71.7 6.6 1.7 1.9 NA NA NA 2.3 NA NA NA NM NA NA NA 11.61 NA 2.21

Trent 121.9 367.0 125.1 21.6 9.6 4.0 5.5 4.5 3.7 3.0 5.8 47.9 36.0 27.7 NM NM 53.0 38.7 5.53 18.89 3.82

Future Lifestyle 94.6 486.0 100.9 44.1 10.0 3.2 1.9 1.8 1.5 1.2 2.3 19.6 16.3 13.2 NM 55.3 42.2 32.3 9.72 13.96 3.82

Future Consumer 86.2 44.9 91.9 29.9 1.9 -0.9 3.7 2.3 1.7 1.3 2.5 82.9 43.5 27.9 NA NA 116.6 49.0 NM NA NM

V-Mart Retail 48.9 2,695.0 48.7 12.2 10.9 6.4 2.8 NA NA NA 3.5 NA NA NA 62.8 NA NA NA 25.52 28.34 15.14

Shoppers Stop 40.9 464.9 41.9 36.3 5.8 8.4 1.3 1.1 1.0 0.9 1.2 16.0 12.9 10.6 9.3 42.5 31.1 22.9 43.94 NM 15.82

V2 Retail 9.3 273.1 9.3 4.7 8.8 8.3 1.3 NA NA NA 2.0 NA NA NA 17.4 NA NA NA 34.73 71.41 16.92

Public Market DataConsumer Durables and Retail

35Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful

Company

Market Cap

Stock Price

Ent.Value

Revenue EBITDA margin

PAT margin

EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Consumer Discretionary

Titan Co 1,007.0 1,134.3 1,028.2 159.5 10.3 7.1 5.3 5.2 4.4 3.7 5.5 47.6 38.1 31.4 NM 68.2 54.8 45.9 24.24 27.90 12.60

3M India 270.8 24,035.7 261.3 25.6 18.8 12.2 8.3 NA NA NA 9.2 NA NA NA NM NA NA NA NA NA NA

Rajesh Exports 198.2 671.3 104.8 1,876.9 1.0 0.7 0.1 0.1 0.1 0.0 0.1 5.0 4.5 3.8 15.7 14.2 12.6 10.5 19.39 33.52 5.31

Bata India 181.6 1,412.6 175.7 26.3 13.4 8.4 3.3 5.9 5.2 4.6 6.7 38.5 31.7 25.6 NM 62.0 50.8 41.5 15.84 18.25 10.91

Relaxo Footwears 94.7 763.0 95.4 19.6 15.5 8.2 4.0 NA NA NA 4.3 NA NA NA 56.9 NA NA NA 23.56 24.12 13.78

DCM Shriram 64.2 411.7 67.7 69.0 15.3 9.6 1.1 0.9 0.8 0.8 0.9 5.4 4.8 4.3 10.0 8.6 7.6 6.7 23.72 22.46 11.76

Prism Johnson 47.6 94.5 65.9 55.1 8.1 0.8 1.3 1.1 1.0 0.9 1.2 10.9 9.3 8.1 NM 27.1 19.0 14.5 4.34 8.99 0.88

PC Jeweller 32.6 82.5 41.6 96.1 10.4 5.6 1.3 NA NA NA NA NA NA NA 6.0 NA NA NA 14.40 20.41 6.53

Balmer Lawrie & Co 21.4 187.4 16.9 17.2 13.3 10.0 1.2 NA NA NA 1.0 NA NA NA 13.0 NA NA NA 12.24 14.84 8.16

Vaibhav Global 20.8 636.0 19.8 15.8 10.3 7.1 1.4 1.1 1.0 NA 1.1 8.7 7.7 NA 18.4 12.8 10.9 NA 22.66 28.19 15.51

Mayur Uniquoters 15.7 346.3 13.6 5.7 26.3 16.9 3.5 2.2 1.9 1.5 NA 9.5 7.9 7.2 16.3 16.6 14.8 13.6 23.08 23.26 19.18

Surya Roshni 14.0 257.2 24.7 48.8 7.1 2.2 0.6 NA NA NA 0.5 NA NA NA 13.0 NA NA NA 10.82 11.79 3.95

Asian Star Co 11.3 709.0 15.6 39.1 4.4 2.9 0.5 NA NA NA 0.4 NA NA NA 10.4 NA NA NA 12.42 14.84 4.89

Kesoram Industries 9.9 69.5 48.6 38.7 -1.2 -13.1 1.4 NA NA NA 1.3 NA NA NA NA NA NA NA -76.84 NA -8.85

Kokuyo Camlin 9.8 97.5 11.1 6.3 6.2 1.7 2.1 NA NA NA 1.8 NA NA NA NM NA NA NA 4.46 7.28 2.15

Andrew Yule & Co 9.2 18.9 8.9 3.7 1.5 5.9 3.6 NA NA NA NA NA NA NA 41.0 NA NA NA 6.36 12.63 3.79

Khadim India 8.8 491.4 9.8 7.4 10.4 4.9 1.8 NA NA NA 1.2 NA NA NA 22.7 NA NA NA 15.91 23.51 8.05

Mirza International 6.6 54.9 9.3 9.7 18.0 8.1 1.8 NA NA NA 0.8 NA NA NA 8.4 NA NA NA 14.74 16.64 8.98

Renaissance Jewellery 6.0 316.2 12.5 18.3 3.7 3.4 0.5 NA NA NA 0.5 NA NA NA 9.3 NA NA NA 11.68 15.59 5.36

KDDL 5.3 453.0 6.3 5.0 8.9 3.2 1.1 1.0 0.9 0.7 1.0 10.2 8.7 7.2 28.7 23.5 19.9 16.1 13.60 14.84 4.12

Timex Group India 5.1 50.6 5.2 2.1 5.1 3.6 2.2 NA NA NA 2.2 NA NA NA 67.4 NA NA NA 64.66 NM 6.90

Liberty Shoes 2.6 154.1 3.7 5.4 7.4 1.3 0.8 NA NA NA 0.7 NA NA NA 39.8 NA NA NA 4.27 9.47 1.68

Services

Thomas Cook India 91.2 246.1 83.5 110.7 3.4 16.7 0.9 1.3 1.1 1.0 1.1 46.6 33.6 27.8 1.5 78.0 67.5 52.5 34.72 NA 19.27

Blue Dart Express 85.3 3,593.7 87.1 28.0 12.8 5.2 3.3 2.7 2.4 2.1 3.1 31.3 23.1 19.2 58.9 77.1 51.1 40.4 30.20 28.95 10.01

Just Dial 39.6 612.2 38.8 7.8 21.0 18.3 3.7 4.4 3.9 3.5 5.0 17.3 15.3 14.0 29.2 23.2 19.3 17.3 15.20 NA 10.70

Cox & Kings 24.6 139.6 59.1 64.1 13.8 5.8 1.1 2.4 2.4 2.4 0.9 7.1 6.8 6.9 6.5 8.9 6.6 6.6 12.72 16.30 3.79

BLS Intl. Services 11.8 115.0 11.6 7.9 20.2 12.2 1.5 NA NA NA 1.5 NA NA NA 12.2 NA NA NA 45.30 NM 25.19

Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful

Public Market DataConsumer Discretionary and Services

36

Company

Market Cap

Stock Price

Ent.Value

Revenue EBITDA margin

PAT margin

EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Hotels

Indian Hotels Co 180.7 152.0 208.4 41.0 16.4 2.4 4.4 4.7 4.3 3.9 4.7 24.5 20.8 17.4 NM 65.7 49.0 34.8 2.89 4.16 1.08

EIH 115.3 201.7 120.7 16.0 19.0 11.3 5.9 6.2 5.7 5.6 NA 28.1 25.1 25.5 64.2 49.2 45.8 49.2 6.36 9.24 4.64

Lemon Tree Hotels 63.9 80.7 78.3 4.8 28.5 3.0 NA 13.5 10.2 8.6 14.7 41.5 27.4 20.5 NM NM NM 48.5 1.75 4.41 0.61

Mahindra Holidays 32.9 246.2 35.4 22.0 15.8 5.3 1.9 1.7 1.6 1.5 1.6 16.2 14.6 13.4 24.6 32.4 27.7 23.9 17.87 6.13 2.76

ITDC 24.1 281.5 21.0 3.5 -1.6 9.0 10.3 NA NA NA 6.0 NA NA NA NM NA NA NA 10.16 10.33 4.90

TAJ GVK Hotels & Resorts

14.9 237.4 16.8 2.9 24.9 7.3 4.2 NA NA NA 5.4 NA NA NA NM NA NA NA 5.83 8.02 2.87

EIH Associated Hotels 11.6 379.7 11.1 2.6 25.9 14.6 5.4 NA NA NA 4.3 NA NA NA 30.6 NA NA NA 13.18 13.37 10.66

Oriental Hotels 8.0 45.0 11.1 3.6 15.7 1.7 2.9 NA NA NA 3.1 NA NA NA NM NA NA NA 1.45 -0.95 0.75

Hotel Leela Venture 7.0 11.1 44.6 7.2 27.1 -3.2 6.7 NA NA NA 6.2 NA NA NA NA NA NA NA -8.79 NA -0.49

Textiles

Page Industries 270.5 24,248.0 267.3 25.2 21.5 13.8 10.0 NA NA NA 9.4 NA NA NA NM 62.9 52.7 43.9 45.86 47.75 27.04

Century Textiles 101.4 908.0 135.9 79.0 16.8 5.2 2.1 NA NA NA 1.9 NA NA NA 24.8 NA NA NA 15.62 16.36 3.95

Lakshmi Machine Work 64.4 6,028.8 55.6 25.7 10.7 8.1 2.5 2.0 1.8 1.7 NA 17.0 15.1 13.6 30.8 26.6 23.8 21.6 12.55 14.06 8.29

Vardhman Textiles 62.8 1,092.3 64.7 62.5 12.4 7.9 1.3 1.0 0.9 0.8 1.0 5.4 4.9 4.5 10.4 8.6 7.6 7.3 10.68 11.79 6.25

Welspun India 59.7 59.5 86.0 53.3 21.1 7.1 1.6 1.3 1.1 1.0 1.3 7.6 6.0 5.3 15.5 14.3 10.5 8.7 15.21 10.48 5.23

TCNS Clothing Co 50.4 822.0 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Raymond 48.8 795.0 68.2 59.1 8.0 2.2 1.2 1.0 0.9 0.8 1.1 11.2 9.7 8.9 36.3 28.9 21.6 16.1 7.34 14.11 2.25

KPR Mill 41.5 572.0 45.6 28.9 19.9 10.0 1.8 1.4 1.2 1.1 1.4 7.2 6.3 5.5 14.6 12.2 10.4 8.7 20.27 19.64 11.71

Trident/India 34.9 68.4 51.7 45.6 18.0 5.7 1.3 1.0 1.0 0.9 NA 5.2 4.8 4.6 12.9 8.8 7.8 7.3 9.14 7.54 4.16

LUX Industries 34.0 1,345.0 37.1 11.4 13.8 7.0 4.1 NA NA NA 3.2 NA NA NA 42.9 NA NA NA 28.00 28.50 10.16

Bombay Dyeing 28.5 138.2 53.7 26.6 22.0 1.4 2.8 NA NA NA 2.0 NA NA NA 81.3 NA NA NA 7.76 NA 0.98

Rupa & Co 27.4 345.2 28.5 11.5 13.5 7.5 2.7 2.3 2.0 NA 2.5 16.0 14.0 NA 31.8 27.6 24.3 NA 18.38 19.78 10.68

Arvind 23.8 92.0 54.1 104.1 9.3 3.1 1.3 0.6 0.5 0.6 0.6 6.4 5.2 5.3 7.7 7.8 6.2 6.0 8.88 13.33 3.45

Siyaram Silk Mills 19.5 416.7 25.0 17.3 14.2 6.4 1.9 NA NA NA NA NA NA NA 17.6 NA NA NA 17.38 18.30 8.17

Dollar Industries 16.1 283.5 17.6 9.5 13.0 6.7 2.5 1.6 1.5 1.3 1.8 12.5 10.8 9.5 24.6 21.8 18.5 15.8 23.87 23.21 10.56

Kewal Kiran Clothing 16.0 1,300.0 14.9 4.6 21.6 16.1 3.9 NA NA NA 3.3 NA NA NA 21.9 NA NA NA 18.92 30.33 13.49

Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful

Public Market DataHotels and Textiles

37

Source: Bloomberg; Data as on 28 March, 2019 NA: Not Available NM: Not Meaningful

Public Market DataPlastic Products and Home Decor

38

Company

Market Cap

Stock Price

Ent.Value

Revenue EBITDA margin

PAT margin

EV/Sales(x) EV/EBITDA(x) P/E(x) ROE ROCE ROA

(₹ bn) (₹) (₹ bn) (₹ bn) (%) (%) TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E TTM FY19E FY20E FY21E (%) (%) (%)

Plastic Products

Supreme Industries 139.3 1,096.9 141.2 49.2 16.0 8.8 3.1 2.5 2.2 1.9 2.5 17.0 14.7 12.8 32.3 31.4 26.8 23.0 23.97 26.49 14.99

Astral Poly Technik 137.5 1,147.8 139.6 21.1 15.0 8.3 5.1 5.5 4.6 3.8 5.8 35.1 28.5 23.6 NM 64.6 48.8 38.1 18.66 22.11 11.09

VIP Industries 68.2 482.3 67.2 14.1 13.9 9.0 3.1 3.8 3.1 2.6 3.9 28.8 23.4 18.3 53.8 45.6 36.5 28.0 28.30 29.83 18.38

Finolex Industries 62.0 499.5 62.1 27.1 17.9 11.2 3.0 2.1 1.9 1.7 2.3 10.7 10.0 9.2 20.2 16.7 15.8 14.6 11.84 25.13 9.30

Jain Irrigation Systems 29.8 58.4 78.6 79.5 13.3 2.8 1.2 0.9 0.8 0.7 0.9 6.7 5.8 5.1 13.7 9.3 7.0 5.4 5.18 7.71 1.88

Time Technoplast 23.5 103.8 30.5 31.0 15.2 5.8 1.4 0.9 0.8 0.7 0.9 5.8 5.0 4.6 13.0 11.3 9.2 8.2 12.81 13.71 6.59

Nilkamal 21.2 1,420.2 22.9 21.2 11.4 5.8 1.1 0.9 0.9 NA NA 8.7 7.8 NA 17.2 15.6 13.7 NA 15.50 16.87 10.53

Safari Industries India 16.2 723.8 16.7 4.2 10.0 5.2 3.0 2.8 2.2 1.7 4.0 29.2 22.4 17.5 71.8 51.7 38.8 29.8 15.83 17.54 9.05

Huhtamaki PPL 14.9 197.0 17.0 21.0 10.4 3.0 1.4 0.6 0.6 NA 0.8 6.2 5.7 NA 23.4 18.6 16.8 NA 12.44 9.27 4.45

Indian Hume Pipe Co 14.1 291.9 18.6 15.5 9.8 4.3 1.2 1.2 1.0 0.9 1.2 10.3 8.6 7.1 21.4 17.8 13.7 10.5 15.47 23.79 4.69

Shaily Engg. Plastics 6.0 717.1 6.8 3.1 17.3 7.8 3.7 NA NA NA 1.9 NA NA NA 25.0 NA NA NA 20.80 22.49 9.85

Home Décor- Wood Panels

Sheela Foam 61.2 1,254.4 60.2 19.7 11.0 6.8 3.6 2.7 2.4 2.2 3.7 24.9 19.8 17.6 45.8 41.1 31.8 27.8 25.21 24.06 13.64

Century Plyboards 44.8 201.6 49.5 20.2 16.4 8.0 3.9 2.2 1.9 1.7 NA 15.1 12.7 11.1 27.5 25.8 20.8 17.5 20.70 21.76 9.80

Greenlam Industries 21.9 908.4 24.1 11.4 13.1 5.6 2.7 1.9 1.7 1.5 2.0 14.9 12.6 11.0 33.9 28.1 23.1 19.2 19.75 18.00 8.01

Greenply Industries 18.6 151.7 25.4 17.1 14.7 6.7 2.6 1.4 1.2 1.0 1.5 12.9 10.5 9.3 16.8 24.6 17.7 16.6 13.93 11.77 6.24

Uniply Industries 6.6 40.2 8.9 3.9 15.8 6.4 3.1 NA NA NA 1.8 NA NA NA 14.6 NA NA NA 8.76 26.85 3.69

Stylam Industries 6.1 749.9 7.4 3.4 15.3 5.8 2.0 NA NA NA 1.7 NA NA NA 30.2 NA NA NA 17.53 15.21 6.17

Home Décor- Paints

Asian Paints 1,435.9 1,497.0 1,434.8 166.0 19.3 11.6 6.4 7.4 6.4 5.5 7.6 38.7 32.0 27.1 NM 62.2 51.4 43.1 24.11 30.30 14.73

Berger Paints India 315.0 324.4 317.7 51.2 15.8 8.8 4.9 5.2 4.5 3.9 5.4 34.9 28.5 24.3 68.3 60.7 48.3 40.3 21.88 23.54 12.14

Kansai Nerolac Paints 242.4 449.8 233.9 46.4 17.1 10.6 5.7 4.3 3.8 3.3 5.0 29.9 24.4 20.7 47.1 47.7 39.0 33.4 16.59 NA 12.70

Akzo Nobel India 79.7 1,750.5 73.9 27.2 11.1 7.1 2.9 NA NA NA 2.7 NA NA NA 39.8 NA NA NA 16.76 18.10 9.36

Home Décor- Ceramics

Kajaria Ceramics 91.7 576.7 91.6 27.8 16.5 8.5 3.3 3.1 2.7 2.4 3.2 19.6 16.3 13.9 39.0 37.8 30.0 25.1 18.66 16.32 11.28

Cera Sanitaryware 35.8 2,754.5 35.5 11.9 15.0 8.3 3.8 2.7 2.3 2.0 3.0 18.8 15.6 13.4 34.7 32.0 26.6 22.7 17.52 17.00 9.92

HSIL 18.0 248.4 29.3 22.2 12.2 3.3 1.7 1.1 1.0 0.8 NA 9.9 8.0 6.8 24.2 28.0 17.0 12.5 5.05 5.46 2.26

Somany Ceramics 17.8 419.9 23.1 17.1 11.1 4.2 1.9 1.3 1.2 1.0 NA 15.7 11.8 9.7 25.3 39.5 23.4 17.7 12.85 12.20 4.61

Shankara Bldg. Product 9.3 408.1 12.6 25.5 6.9 2.9 1.7 0.5 0.4 0.4 0.5 9.5 8.4 7.0 12.6 24.6 19.5 13.6 17.45 25.28 6.85

Twinkle Shah

Vice President

▪ Over a decade’s extensive experience in cross border M&A, Private Equity and capital markets

across a wide range of industries overseeing the full spectrum of Investment Banking services

including advisory and capital raising for Indian clients

▪ Prior to joining BOBCAPS, she has worked with Elara Capital and Singhi Advisors

Avdhoot Deshpande

President,Investment Banking -

Equity

▪ With over 25 years of work experience in Equity Capital Markets, he has worked with marquee

names in the Investment Banking space like IL&FS, Avendus Capital, HSBC InvestDirect,

Axis Bank and Centrum Capital

▪ Strong network of relationships with investors and the corporate community over the years has led

to several marquee and successful capital market mandates

Prerna Mundu

Analyst

▪ Work experience in M&A, PE funding and Equity Capital Markets

▪ Interned at IDFC bank (Wholesale banking)

▪ Qualification: MBA (Finance) from Faculty of Management Studies, New Delhi and B.Com

graduate from St. Xavier’s College, Kolkata

Boddu Santhosh

Analyst

▪ Work experience in M&A, PE funding and Equity Capital Markets

▪ Has interned at IDFC bank in Credit Risk

▪ Qualification: MBA (Finance) from FMS, University of Delhi and M.Tech & B.Tech in Mechanical

Engineering from IIT Madras

About BOBCAPSConsumer and Building Materials Coverage Team

39

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