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Emami Limited is one of the leading and fastest growing personal and healthcare businesses in India,
with an enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and
Handsome, Zandu Balm, Mentho Plus Balm and Fast Relief.
Established in 1974, we have a portfolio of over 260 products based on ayurvedic formulations. Our
current operations comprise more than 63 countries including GCC, Europe, Africa, CIS countries
and the SAARC. Over 100 Emami products are sold every second somewhere around the world.
Emami Limited, the flagship company of the Group, recorded a turnover of Rs 1821 crore, 2013-14.
Emami acquired the heritage brand Zandu on the basis of huge business synergy between the two
brand portfolios.
We employ 2600 people , reach out to 40 lakh retails outlets through a network of 3000 distributors
and have invested in seven plants , four regional offices, 1 overseas unit, four regional offices, five
overseas subsidiaries and 32 distribution centers across India.
About group companies
Established in early 70s, Emami group has grown in India with presence in major sectors of FMCG,
real estate, hospitals, retail, newsprint manufacturing, pharmacy chain, contemporary art ,edible oil
and biodiesel .
Founded by two friends Mr RS Agarwal and Mr RS Goenka, Emami today ,is a trusted and loved
brand of the nation with over 20,000 employees and a group turnover of about Rs 8000 cr.
Key businesses:
FMCG - Emami Limited is one of the leading and fastest growing personal and healthcare
businesses in India, with an enviable portfolio of household brand names such as Boroplus,
Navratna, Fair and Handsome, Zandu balm, Mentho Plus balm and Fast Relief.
Website - www.emamiltd.in
Newsprint- Emami Paper enjoys the position of being the largest manufacturer of newsprint
in India, and the only manufacturer in eastern India with units in Kolkata and Balasore.
Website - www.emamipaper.in
Ball pen tips manufacturing - CRI is a specialized company that creates and designs pen
tips for the leading writing instrument brands of the world. CRI today stands as the first and
only pen tip manufacturing company in India to be awarded the highly prized ISO 9001-2000
Certification. It operates from two state-of-the-art production facilities, one at Ahmedabad: a
purpose-built facility, and the other at Kolkata
Website - www.critips.com
Retail- Starmark, retailing books, stationeries and gift items, it is one of the biggest retail
stores in Kolkata with 5 stores and plans for further expansion.
Website - www.starmark.in
Pharmacy Emami Frank Ross Ltd, is the oldest and largest pharmacy chain in Eastern
India. The first Frank Ross store was set up in 1906. An ambitious plan of having a network
of the pharmacy chain with over 150 outlets all over India has been taken up by the Group.
Website - www.frankrosspharmacy.com
Infrastructure and development - Emami also has large presence in real estate in West
Bengal. It has successfully executed more than 24 prestigious residential and commercial
construction projects, mainly in Kolkata. The existing projects span across the states of West
Bengal, Uttar Pradesh, Tamil Nadu, Andhra Pradesh and Maharashtra.
Website - www.emamirealty.com , www.southcityprojects.com , www.urbana.co.in
Art - Emami Chisel Art Gallery since inception has promoted Indian art and young artists
through numerous exhibitions, retrospectives, art catalogues and publications. It has
established itself as one of the finest venues in East India, dealing in works of both modern
and contemporary art . Spread across 15000 sq ft. the gallery collection includes paintings,
sculptures, prints and drawings sourced from the artists themselves, or from reputed art
galleries and private collectors. ECA is embellished with a characteristic mix of genuine
masterpieces and rare collections from India's eminent artists and contribution from the new
generation contemporary artist. Website - www.emamichisel.com
Edible oil The brand Healthy and Tasty is one of the most admired edible oil brand in the
country manufactured and marketed by Emami .
Website - www.emamibiotech.com
Healthcare- AMRI, is the first super-speciality hospital in Eastern India to provide
comprehensive cancer treatment. It is also the largest hospital in the private sector.
Website - www.amrihospitals.in
Cement - The Group is setting up a Cement Plant in Chhattisgarh and units for grinding will
be set up in West Bengal and Orissa.
Bio diesel Emami has also forayed into the production of biodiesel, a substitute of diesel
made from 100% renewable biological sources.
Website - www.emamibiotech.com
The journey
Tale of two families:
From the days of hand pulled rickshaws to a network of over 3500 distributors
Mr RS Agarwal and Mr RS Goenka, Founders, Emami Group, in their first rented office, Kolkata
A humble beginning:
The inception of Emami Group took place way back in mid seventies, in West Bengal, when two
childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their high profile jobs as Chartered
Accountants, with the Birla Group to set up Kemco Chemicals, an Ayurvedic medicine and cosmetic
manufacturing unit in Kolkata, in 1974.
It was an extremely bold step in the early seventies when the Indian FMCG market was still
dominated by multinationals. Several such companies headquartered in Kolkata were considering
shifting out of West Bengal due to labor unrest and political problems.
But against all odds with a vision of combining the age old wisdom of Ayurveda with modern
manufacturing techniques for creating winning brands the company started with a meager amount of
Rs. 20,000. A dream of reaching out to the Indian middle class; a target audience whom they thought
will have increasing potential for consumption, the company started manufacturing cosmetic
products as well as Ayurvedic medicines under the brand name of Emami from a small office (still
retained) in Kolkatas business district of Bada Bazar. Their consumer insight is reflected today in
the mission statement of Emami Limited: "Making people healthy and beautiful naturally".
Differentiate or die. Innovate or perish
This is what set the ball rolling when the partners launched Emami Talcum, Emami Vanishing
Cream and Emami Cold Cream and glycerine soap , which were great favourite brands with the
quality conscious consumers in the mid-seventies. The company soon became adept in selling
beautiful dreams to Indian women interested in finding their own identity. The signature tune of
Emami played over radio and TV became a household favourite.
Acquiring Himani Ltd:
In 1978, Himani Ltd (incorporated as a Private Limited Company in 1949) had become sick unit and
was up for sale. Himani, almost a 100 year old company with good brand equity in Eastern India and
a well laid out factory in Kolkata, was producing a number of cosmetics. Mr. Agarwal and Mr
Goenka realized the opportunity and acquired Himani though for their young organization it was a
tough task to mobilize resources for buying a sick unit and even tougher to turn it around to a
profitable venture. The degree of financial risk involved was enormous proved to be the turning point
for the organization.considering the small capital base of the company in those days. However they
decided to go ahead with the deal which later on proved to be the turning point for the organization.
Introducing power brands - Boroplus and Navratna
Production of various health care items and toiletries based on Ayurvedic preparation had begun in
the Himani factory. Ten years after commencement of the company, it launched their first flagship
brand Boroplus Antiseptic Cream under the Himani umbrella in 1984. Many additional brands
followed Boroplus including Boroplus Prickly Heat Powder which came as a brand extension of the
mother brand. Emami brands started selling in all states of North, East and West India. Today
Boroplus is not only the largest selling Antiseptic Cream in India but also in Russia, Ukraine, and
Nepal.
Nineties was very eventful for Emami. The next flagship brand of the company Navratna Cool Oil
came in the nineties under the Himani Umbrella and the second factory was opened at Pondicherry to
expand production. Navratna over the years has become market leader in the cool oil category. The
introduction of new brands continued and the distribution network of the company was extended to
South India with Navratna spear heading the process.
Public issue:
In 1995, Kemco Chemicals, the partnership firm was converted into a Public Limited Company
under the name and style of Emami Ltd. In 1998, Emami Ltd was merged with Himani Ltd and its
name was changed to Emami Ltd as per fresh certificate of incorporation dated September1, 1998.
In 2000, with a view to concentrate on its core FMCG business, Emami's investment undertaking
was demerged and Pan Emami Cosme Ltd. issued its fully paid up shares to shareholders of Emami
in the ratio of 1:1. In 2003 a new factory unit was set up at Amingaon, Guwahati.
A Public Issue of 50 lacs Equity Shares of Rs2/- each at a price of Rs. 70 followed in 2005. The issue
was oversubscribed within few seconds of its opening with an overall over subscription of 36 times
of the issue size. The share price sold at Rs. 70 today is quoted in the stock market as over Rs. 500.
Global footprint:
Taking one step at a time Emami went overseas and international business contributes around 13%
of the total revenue, growing at a CAGR of 26% over last few years.
Emami has five international subsidiaries and its global reach extends to more than 60 countries
including India, GCC, UK, Sri Lanka, Bangladesh, Nepal, African and the CIS countries.
Consumer healthcare division:
In 2006 the company decided to introduce a Health Care Division and a number of new brands of
Ayurvedic OTC medicines. The company has taken up the challenge of growing this new division
with a dedicated and enthusiastic team working on this project.
Acquiring a heritage brand Zandu:
Emami Limited with an investment of Rs 730 crore acquired Zandu Pharmaceuticals Works Ltd on
the basis of huge business synergy between Zandu and Emami. Post the acquisition of Zandu
Pharmaceuticals, a century old household name in India, some of its prominent brands like Zandu
Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu Pancharishta, Sudarshan and Nityam
Churna came under Emamis basket of brands.
Sustainable growth and excellence:
In 2006, J B Marketing & Finance Ltd., the erstwhile marketing company of the Emami Group
merged with Emami Ltd. and the total turnover of Emami including sales in domestic and export
market stood at Rs 516 crores at the end of the fiscal year 2006-07.
Within three decades, the company Emami Ltd has a turnover of Rs. 1500, the flagship company of
the Rs.5000 crore Emami Group.
Today, Emami Limited is led by Mr. R S Agarwal and Mr. R S Goenka with the help of the second
generation Promoter Directors from the two families. Emami Limited has a team of over 4000 people
running one of the leading and fastest growing personal and healthcare businesses in India.
Milestones:
1974
Two childhood friends Mr RS Agarwal and Mr RS Goenka quit their jobs to start their own
business, Emami
1978
Acquired Himani Ltd and set up factory in Kolkata
1984
Boroplus Antiseptic Cream launched, under Himani umbrella
1989
Navratna Cool Oil launched, under the Himani name. They also set up another factory in
pondichery.
1998
Expanded the distribution network of the company to South India. Emami merged with
Himani Ltd
1999
Launch of Sona Chandi Chyawanprash
2005
Launch of Fair and Handsome, the first fairness cream for men. Public issue of 50 lac
shares, listed with NSE
2006
Introduced Health Care Division . Merged JB Marketing
2008
Successful Zandu Pharmaceuticals acquisition at Rs 730 cr
2009
Demerged Zandu fmcg into Emami . Raised Rs 310 cr through QIP
2010
Crossed net sales of Rs 1000 cr. Exceeded market cap of Rs 5000 cr. Split of shares from Rs
2 to Re 1 per share
2011
Conceived setting up of its first overseas manufacturing unit in Bangladesh.
2012
Signed 4 Olympians & 1 cricketer as brand endorsers for a single brand, Fast Relief.
Started production at Bangladesh manufacturing unit
2013
Bonus Issue; exceeded market capitalization of Rs. 10,000 cr.
Founder's Message
Our perception of health is changing dramatically. In the
past, health was a state of no-illness; today it is defined
holistically and is a function of lifestyle, diet, fitness,
physical, emotional and even spiritual well-being
The consumer is looking for a health and wellness quotient in each aspect of his/her life and this is a
deciding factor influencing consumer choice: from the food they eat to where they live to the
products they use. This preoccupation with wellness is especially witnessed within the personal care
space, where health and beauty are now coming together. People are no longer satisfied with
products that just make them look good or feel good, but also want them to do-good. Moreover, the
do-good aspect is understood in terms of a health rather than a cosmetic benefit.
Another trend signaling the merging of health and beauty is the emergence of herbal, natural and
organic products within personal care, which are considered safe, sensitive to the skin and free of
side-effects by consumers.
Since consumers actively seek health benefits from personal care products, they spend a lot of time
researching the product before making a purchase decision. They want to know how a product
works, what ingredients it contains, the properties and actions of these ingredients and results.
Consumers still love to pamper themselves with silky smooth creams and lotions, but they also make
sure that their favorite personal care products are not just making them feel good but are also keeping
them healthy. It is the convergence of these supposedly disparate developments that is growing the
market for Indias fast-moving consumer goods sector in general and Emami Limited in particular.
Industry and the economy:
In the Indian FMCG sector, rural India accounts for more than 40% of the countrys consumption. It
is our understanding that as prosperity percolates across the lower levels of Indias income pyramid,
the FMCG industry will outperform its earlier annual growth average. As the Indian economy is
reporting highest ever growth, there are a number of pockets of optimism:
Urban demand: We feel that a 10% annual growth will continue to drive FMCG sector
growth.
Rural demand: A huge proportion of Indias population lives in rural villages; the per capita
consumption in these pockets is among the lowest. In our opinion, we have reached the
tipping point and annual demand is now soaring.
Infrastructural development: We feel that planned infrastructure development roads, ports,
railways and airports will accelerate FMCG growth.
Low manufacturing base:We foresee that Indias low-cost manufacturing base will enable it
to address the growing FMCG demand in Bangladesh, Sri Lanka, Middle East, Pakistan and
similar countries; besides, non-resident Indians in the UK and the USA represent a
prospective market.
Brand consciousness:We perceive increasing brand consciousness as consumers gradually
move away from loose and unbranded alternatives.
Favourable tax structure: We sense that the introduction of VAT will reduce longstanding tax
ambiguities; Companies in tax exemption zones will benefit. The fringe benefit tax
rationalization on brand ambassadors, celebrity endorsement as well as tours and travels will
strengthen the FMCG sector.
Modern retail formats: We see modern retail stores accelerating FMCG off take and leading
to a greater proportion of the growth of branded and value-added products.
We must conclude on a note of unmistakable optimism. As a result of increased capacity, upcoming
launches, product extensions, wider geographic coverage and growing service station, we expect to
accelerate our topline growth and strengthen our margins. In widening our revenue spread and
climbing the value-chain, we expect to enhance value for our shareholders as well as other
stakeholders in a more emphatic way over the foreseeable future.
Mr R.S. Agarwal and Mr R.S. Goenka
Founders, Emami Limited
VISION:
Making people healthy and beautiful, naturally
MISSION
To contribute whole heartedly towards the environment and society integrating all our
stakeholders into the Emami family
To make Emami synonymous with natural beauty and health in the consumers mind
To drive growth through quality and innovation in products and services.
To strengthen and foster in the employees, strong emotive feelings of oneness with the
company through commitment to their future
To uphold the principles of corporate governance
To encourage decision making ability at all levels of the organization
GOAL
To be part of every household in the country
To be a major player in every product category we venture into
To be one of the most respected marketer in the country
To be recognized as a global brand
Strategy
The group strategy is for growth through both Organic and Inorganic expansion.
This will be driven by power brands, upcoming brand extensions and new launches, coupled with a
wider international presence through acquisitions.
Drive our top line
Enhance product recall through aggressive promotion via celebrities
Expand distribution to reach rural pockets
Differentiated Value For Money products
Innovate and enter new product categories
Undertake brand extensions
Wider international footprint ,entry in new geographies drive exports
Leverage existing distribution network
Grow bottom line
Engage in effective and continuous cost control initiatives
Reduce proportion of ad- spend with increase in volumes
Stabilization of new launches and brands
Enjoy benefits of economies of scale
Leverage on low cost manufacturing taking full benefit of location advantage
BOD and Management