With the revenue of $37 bn, FMCG sector contributes 2.

2% to India s GDP
India: A market with high growth Potential
Strong YoY GDP growth of 9%, increasing rural penetration of HPC to 95% and growth in urban disposable income at a rate of 6.4% (CAGR) will help FMCG sector achieve double digit growth for the next decade

Key Trends
Diversification into retail services to increase the revenues and margin HUL opening BRU cafes and Lakme salons Marico opening Kaya skin clinic Expanding into foreign markets by both organic and inorganic growth Marico entered Egypt in 2006 and has become market leader in 2 years GCPL has wrapped up 2 foreign deals in 2010. Nigerian company Tura for $110mm and Indonesian company Megasari Makmur for $250mm Regional and small domestic players are giving a tough fight to established MNCs Ghari has become 2nd largest selling detergent in India Malhotra shaving products has largest share in men s grooming product Companies must be able to maintain their brand awareness and dedicate sufficient resources towards marketing Companies spend 11-15% of sales in advertising and promotion activities

25000.0 20000.0 15000.0 10000.0 5000.0 0.0

Hot drinks Home care Packaged food

Soft drinks Personal care

2009 2010 2011E 2012E 2013E 2014E 2015E

Revenue US $mm

10.70%

17.12 %
6.05%

11.27%

10.47%

CAGR 2009A-2015E

Unavailability of targets to acquire as all Indian companies demand high multiple coz of healthy growth rate and India shinning story In last major deal RB acquired Paras pharmaceutical at 8x revenue approx. $750 mm

Categories and Major Players

Others, 10% Men's care, 7% Oral care, 14% Skin care, 12% Hair care, 24% Bath & shower,33% Surface care, 3% Dishwashing, 9% Insecticides, 16% Laundry care, 68% Others, 4% Others, 51% Cooking Oil, 17%

Biscuts, 17%

Baked goods, 10% Confectionery Packaged food Sales , 5%

Personal care Sales 2010A: $7.2 bn

Home care Sales 2010A: $3.6 bn

2010A: $13.3 bn

Colgate Dabur Unilever Personal care Others Cavin care Henkel Others Deodrants Unilever Dabur Marico Hair care Unilever Others Oral care Skin care Home care 0% Unilever Dabur Others Loreal Cavin care Others Unilever Nirma Ghari Others Unilever Colgate 20% 40% 60% 80% 100%

Emerging categories and aspirational products( Deodrant, skin care, color, cosmetics, hair care) Expected to grow faster than rest of the sector Increased competitive intensity expected in segments such as oral care, volume and profitability thereon be expected

Rising commodity prices expected to put pressure on profitability in the near term

Growth drivers
ITC Bakery products Britannia Parle Confectionery Bottled water Baby foods Ready meals 0% Cadbury Parle Nestle Al kabeer Orkala 20% ITC 40% 60% Others 80% 100% Others Others Others GSK Others

Perfetti Nestle Coke Pepsi

Most Exciting consumption categories in India

Categories
Soaps

Key Players
HUL, GCPL, ITC

Near term Pressure

Cost inflation Ad spend at elevated level Competitive pressure Competition led pricing pressure Input prices have started to move up Aggressive product launches Competitive pressure PnG s potential entry in 2011 Input prices have started to move up

Emerging landscape
Competitive intensity in soaps category is intense ITC has ~6% share in soaps category HUL s soap brands are priced at 10-20% premium of Godrej Changing market segmentation: PnG s Tide plus is 30% premium to HUL s Rin,while new Tide naturals is at 26% disc. With rising disposable income premium product to grow faster than the overall category May lead to heightened competitive activity in this attractive segment and HUL s dominance will be challenged PnG s Olay leads the market in modern trade accounting for 25% of the sales Oral care has long term volume growth prospects in India because of its under penetration relative to other emerging markets EBITDA margins for category may also be under pressure as price increases continue to lag input cost pressure

Laundry

HUL, PnG

HPC

Skin care

HUL, PnG, L Oreal, Emmami, ITC

Oral care

HUL, Colgate, Dabur

Hair care

Marico, HUL, Dabur

Bevrages

F&B

Nestle, HUL, Dabur, TGB, Godrej

Growing health and wellness awarness Increasing pressure from Cola and other international players Unwilling to pay premium for convenience & hygeine Domestic help likely to remain a cheaper option

Strong growth in nector and 100% juices Sales of 100% juices are largely limited to supermarket, hypermarket and local grocers 2010 saw a number of new launches in the lemon based juice drinks segment Category is still in nascent stage Increased proliferation of moder trade is likely to catalyze acceleration in growth

Packaged food

Nestle, HUL, ITC, Britannia