Embed Size (px)
Citation preview
Presented byZil Shah
Industry Snapshot The Indian FMCG sector is the fourth largest in the
economy Low per capita consumption as well as low
penetration level, but potential for growth is huge Strong and competitive MNC presence across the
entire value chain According to the study conducted by AC Nielsen, 62
of the top 100 brands are owned by MNCs, and the balance by Indian companies
FMCG sector comprises of Personal Care, Food & Beverages & Household Care
Key players include P&G, HUL, ITC, Marico, Godrej, Dabur, Nestle, Cadbury
Profile Of The Company India’s largest FMCG Company.
Founded by 1932. It is owned by Anglo-Dutch company
Unilever which owns a 67% controlling share in HUL.
Headquartered in Mumbai. Over 700 million consumers. More than 16,500 employees. Listed at BSE (Stock code - 500696) and
NSE (Stock code – HINDUNILVR)
VisionTo earn the love and respect of India, by making real difference to every Indian.
Mission The highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact.
Mergers & Acquisition by HUL
1931: Unilever set up its first
subsidiary
1956: HUL offered 10% of
its equity to the Indian
public
1972: Lipton Acquisition
1984: Brooke Bond
Acquisition
1986: Pond’s Acquisition
2000: Modern Foods
Acquisition
Products
Same products categories targeted at different income group
HUL – Geographic Presence
• ProductionMore than 35 manufacturing locations across India, with major hubs being Assam, Uttaranchal, Himachal Pradesh, Pondicherry and Dadra & Nagar Haveli
Distribution Channel HUL
Carrying & forwarding
agents
Stockiest
Retail outlet
Customers
CSD Canteens
Customers
Modern trade
Customers
Revenue ShareIce cream
2%
Soap and Detergents48%
Personal products26%
Food1%
Beverages11%
Ex-ports4%
Others8%
Reasons For Sales Growth
General Trade
Self-service Stores
Project Shakti
Liquidity Ratios
Current Ratio
2012 2013 20140.72
0.74
0.76
0.78
0.8
0.82
0.84
0.86
0.86
0.780.77
Current ratio= Current Assets Current Liabilities
Quick Ratio
2012 2013 20140.420.430.440.450.460.470.480.490.5
0.5
0.45
0.49
Quick Ratio = Quick Assets Current liabilities
Leverage Ratios
Debt to Equity
2012 2013 20140
0.0010.0020.0030.0040.0050.0060.0070.0080.0090.01
0
0.01 0.01
Debt-Equity=debt/equity
Proprietary Ratio
2012 2013 20140
0.05
0.1
0.15
0.2
0.25
0.3
0.350.34
0.27 0.28
Proprietary ratio=Shareholders fund/total assets
Interest Coverage Ratio
2012 2013 20140
500
1000
1500
2000
2500 2195.95
197.968 129.2
Interest Coverage ratio=EBIT/In-terest
Profitability Ratios
Gross Profit Margin
2012 2013 201413
13.514
14.515
15.516
16.5
14.31
15.66
16.16
Gross Profit Margin=Gross Profit/Net sales
Net Profit Margin
2012 2013 201410
11
12
13
14
15
11.91
14.1813.5
Net Profit Margin=net profit after tax and interest/
net sales
Return on Assets
2012 2013 20140
5
10
15
20
25
30
35
25.74
32.6830.56
ROCE
2012 2013 20140
20
40
60
80
100
120
140
160
180
95.3
155.23 140.35
Return on Capital Employed
Return on Shareholders Funds
2012 2013 20140
50
100
150
76.06
134.02111.83
Return on Shareholders Funds=NPAT/Shareholders
Fund
EPS
2012 2013 20140
4
8
12
16
20
12.95
17.75 18.29
Earnings Per Share
DPS
2012 2013 20140
4
8
12
16
20
7.5
18.5
13
Dividend per share
P/E Ratio
2012 2013 201405
101520253035404550
31.4228.85
48.49
P/E Ratio = Market Price Earnings
Activity Ratios
Inventory Turnover Ratios
2012 2013 20146.5
7
7.5
8
8.5
9
7.6
9 9
Asset Turnover Ratio
2012 2013 20141.85
1.9
1.95
2
2.05
2.1
2.15
2.2
2.25
2.01
2.24
2.15
Comparison Between Peers
Current Ratio
HUL ITC DABUR GODREJ0
0.2
0.4
0.6
0.8
1
1.2
1.4
0.77
1.251.13 1.1
Quick Ratio
HUL ITC DABUR GODREJ0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.49
0.71
0.87
0.71
Debt Equity Ratio
HUL ITC DABUR GODREJ0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.01 0.0010.02
0.45
Net Profit Margin
HUL ITC DABUR GODREJ0
5
10
15
20
25
30
13.5
25.17
12.99.92
ROCE
HUL ITC DABUR GODREJ0
20
40
60
80
100
120
140
160154
53.2966.12
23.37
Return on capital employed
EPS
HUL ITC DABUR GODREJ0
5
10
15
20
25
18.29
11.18
5.25
22.15
Earnings per share
PE Ratio
HUL ITC Dabur India
Marico Industry0
10
20
30
40
50
60 48.67
28.94
50.11 47.04
35.76
PE Ratio
THANK YOU
