Comparative Analysis Analysis of Two Two Companies Compan ies from FMCG Sector 1. Godr Godrej ej Con Consum sumer er Pro Produc ducts ts Ltd Ltd 2. Ma Mari rico co Indu Indust stri ries es Ltd Ltd..
Index 1.
Over Ov ervi view ew of FMCG FMCG Sect Sector or
2.
FMCG ± SWOT Analysis Analysis
3.
Brief In Introduction ion ± GCPL
4.
Brie Brieff Intr ntroduc oducti tio on ± Mari Marico co
5.
Capa Capaci citie ties, s, Pro Produ duct ctio ion n and and Prod Produc ucts ts ± GCPL GCPL
6.
Capa Capaci citie ties, s, Pro Produ duct ctio ion n and and Produ Product cts s ± Mari Marico co
7.
Prof Profit it & Los Loss s Anal Analy ysis sis ± GCPL GCPL
8.
Pro Profit fit & Lo Loss Ana Analysi lysis s - Maric arico o
9.
Bala Balanc nce e She Sheet et Anal Analy ysis sis ± GCPL GCPL
10. Balanc Balance e Sheet Sheet Analy Analysis sis ± Marico Marico 11. Sali Salien entt Feat Featur ures es ± GCPL GCPL 12. 12. Sali Salien entt Feat Featur ures es - Mari Marico co 13. Comparati Comparative ve Ratio Analysis Analysis 14. 14. Conc Conclu lusi sion on
FMCG Sector Overview Fourth largest sector in the Indian economy Principal
constituents : Household Household Care, Beverages.
Personal
Care and Food &
Anticipated Growth : Rs1.25 lakh crore in 2008 to Rs 4.5 lakh crore by 2018 ( Source : FICCI ) 300 million people will move up from rural poor to rural lower middle class by 2025. ( Source : GC PL Annual Report ) Well established distribution distribution network, low penetration levels, low operating cost & per capita consumption. Intense competition between the organized and unorganized segments. Growth in the FMCG continues inspite of recession rece ssion
FMCG FMCG ± SWOT SWOT Anal Analy ysis Strengths: Low
operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector
Opportunities: Untapped rural market Rising income levels, domestic marketmarket- a population population of of Large domestic over one billion. Export potential High consumer goods spending
Weaknesses: Lower
scope of investing in technology and achieving economies of scale, especially in small sectors Low exports levels "Me-too products Input costs Competition
Threats: Removal of import restrictions resulting res ulting in replacing of domestic brands Tax and regulatory structure Discretionary spending
Brief Brief Intr Introd oduct uction ion - GCPL GCPL HISTORY
1897 - Origin Origin of Godrej Godrej group 1930 - Godrej Godrej soap soap
KEY FEATURES
Second Largest manufacturer of toilet soaps in the country , 9.6% market share
Leader
in the hair colour category in India
INTERNATIONA L PRESENCE & PERFORMANCE
Keyline Brands Ltd
Rapidol Pty Ltd. South Africa
Contract manufacturing of toilet soaps
Godrej Global Mideast FZE, Sharjah
Malanpur plant received 25 Awards at the National Convention Convention of Quality Quality circles - 2008
Kinky Group (Pty) Limited, South Africa
Another variant of Godrej No. 1 viz. Strawberry Straw berry & Walnut¶
Re-launch of µCuticura¶ Hand Hygiene range in UK featuring.
Re-launch of Godrej Fair-glow, Cinthol.
Significant export export income for for FY09 - Rs. 19.4 crore
Brief Brief Intro Introdu ducti ction on - Marico Marico HISTORY
1862 - Origin Origin of Marico Marico
KEY FEATURES
Consumer Products & Services in the Global Beauty Market¶s well known brands such as Parachute, Saffola, Swikar, Hair & Care, Nihar, Madiker, Revive, Kaya
Leadership
position in coconut oil, Hair oil Anti Lice treatment, Premium Refined Edible oil
Business Today's verdict
Marico won four awards for excellence in employer branding and advertising to talent at the Remmy Awards 2009 ( Source ± Company website )
IMC Ramakrishna Bajaj National Quality Award in the manufacturing category
INTERNATIONA L PRESENCE
Think IBG ± Think Big
Presence
in Bangladesh & Gulf
Hair care brand in Egypt
South African journey
Started operations in October 2007
Currently operates 3 leading brands
Capacitie Capacities, s, Productio Production n and Product Products s - GCPL Particulars
Unit
Period
Installed Capacity
Production
31.03.2009
137,333
87,335
31.03.2008
137,333
76,648
31.03.2009
16,080
1,203
31.03.2008
16,080
1,339
31.03.2009
97,500
4,791
31.03.2008
52,500
805
31.03.2009
2,300
1,648
31.03.2008
2,300
2,475
31.03.2009
12,000
3,699
31.03.2008
12,000
2,869
Ended Soaps (M.T.)
Hair Colour Colour & Other Other Toiletries oiletrie s (M.T.) (M.T.)
Fatty Acids (M.T.)
Glycerine (M. T.)
Detergents
Quantity
Capacitie Capacities, s, Productio Production n and Products Products - Marico Marico Particulars
Unit
Period
Installed Capacity
Production
Purchases
Purchases
Quantity
Quantity
Amount (Cr.)
31.03.2009
24,000
15,033
-
-
31.03.2008
24,000
13,443
-
-
31.03 .03.2009
170,000
114,709
-
-
31.03.2008
170,000
107,908
185.98
1.20
31.03.2009
-
-
8,674
38.95
31.03.2008
-
-
-
-
31.03.2009
-
-
-
11.12
31.03.2008
-
-
-
9.80
Ended Hair Oils (K.L.)
Edible Oils (M.T. .T.)
Oil Seeds (M.T.)
Others (Incl. processed foods and by products)
Profit Profit & Loss Loss Analy Analysis sis - GCPL FY 2008-09 Rs. crore SALES
FY 2007-08 Rs. Crore
FY 2006-07 Rs. Crore
1084.34
886.68
758.52
48.80
11.08
5.30
1133.14
897.76
763.82
MATERIAL
601.18
432.00
392.42
OTHER EXPENSES
322.85
270.46
218.66
TOTAL EXPENDITURE
924.03
702.46
611.08
PBDIT
209.11
195.30
152.74
14.37
15.70
12.49
8.82
10.37
5.84
185.92
169.23
134.41
PROVISION FOR TAX
25.01
21.12
17.18
TAX ADJUSTMENT
(0.64)
OTHER INCOME
TOTAL INCOME
DEPRECIATION INTEREST AND FINANCIAL CHGS PBT
PAT
161.55
(4.80)
148.11
122.03
Prof Profit it & Loss Loss Anal Analy ysis sis - Mari Marico co FY 2008-09 Rs. crore SALES
FY 2007-08 Rs. Crore
FY 2006-07 Rs. Crore
1917.46
1568.79
1371.67
14.53
14.53
4.22
1931.99
1583.32
1375.89
1157.03
892.89
749.58
510.14
479.72
428.74
1667.17
1372.61
1178.32
264.82
210.71
197.57
DEPRECIATION
17.03
19.75
35.19
INTEREST AND FINANCIAL CHGS
28.92
18.93
11.60
218.87
172.03
150.78
28.91
29.86
34.62
189.96
142.17
116.16
OTHER INCOME
TOTAL INCOME
MATERIAL OTHER EXPENSES
TOTAL EXPENDITURE
PBDIT
PBT
PROVISION FOR TAX
PAT
Balance Sheet A Sheet Analysis nalysis - GCPL LIAB ILITIE S Share Capital Reserves & Surplus
FY 20 08 -09 R s. In C rores 25.70 511.22 536.92
FY 200 7-0 8 R s . In C rores 22.58 127.91 150.50
FY 2 00 6-0 7 R s . In C rore s 22.58 88.32 110.90
14.89 48.00 62.89
40.59 94.00 134.59
47.86 65.00 112.86
238.21 32.94 271.15
243.85 30.53 274.38
214.17 8.21 222.38
4.16 875 .1 2
9.07 568 .5 4
7.97 4 54 .12
169.7909 2.50 172.29
154.5794 71.58 226.16
148.1281 39.81 187.94
97.89
77.61
71.79
126.67 9.86 344.57 9.01 114.84 604.95
164.91 12.20 19.85 64.95 261.91
117.23 9.80 21.73 45.64 194.39
Loan Funds Secured Loans Unsecured Loans Current Liabilities Liabilities & Provisions C urrent Li abi li ti es Provi si ons
D eferred Tax Li abi li ty (net) TOTAL ASSETS Fixed Assets C api tal work-i n-progress Investments Current Assets, Loans and Advances Inventori es Sundry D ebtors C ash and Bank balances Other current assets Loans and advances
Miscellan Misce llaneous eous Expenditu E xpenditure re TOTAL
875 .1 2
2.87 568 .5 4
4 54 .12
Balance Sheet Analysis ± Analysis ± Marico FY 2008-09 Rs. In Crores 60.90 306.78 367.68
FY 2007-08 Rs. In Crores 60.90 219.33 280.23
FY 2006-07 Rs. In Crores 60.90 122.59 183.49
107.51 201.02 308.53
121.23 184.36 305.59
50.48 116.77 167.25
Current Li abi li ti es Provi si ons
196.36 30.87 227.23
203.66 42.63 246.29
311.64 12.77 324.41
TOTAL
903.44
832.11
675.15
115.91 45.61 161.52 112.58
96.99 49.10 146.09 106.52
95.06 12.80 107.86 80.91
Deferred Tax Asset (net)
273.69 61.05 24.96 206.23 565.93 63.41
218.59 41.68 29.93 193.77 483.97 95.53
196.21 41.29 24.80 109.06 371.36 115.02
TOTAL
903.44
832.11
675.15
LIABILITIES
Share Capi tal Reserves & Surplus Loan Funds
Secured Loans Unsecured Loans Current Liabilities & Provisions
ASSETS
Fixed Assets Capi tal work-in-progress Investments Current Assets, Loans and Advances
Inventori es Sundry Debtors Cash and Bank balances Loans and advances
Salie Salient nt Featu Features res - GCPL
Agreement with HP to outsource its entire IT infrastructure Enhanced Rural Presence Acquisition of Kinky Group Proprietary Ltd., South Africa Afric a
Corporate Corporate Governa Governance nce Rating Rating - CGR2+
Stakeholder Stakeholder Value Creatio Creation n and Governa Governance nce Rating Rating - SVG2+ (ICRA)
Expansion of distribution and supply chain
(Total 30L outlets; 2L added during the current year)
Exports to 33 countries ; Export income income for FY09 - Rs. 19.4 Cr.
Promoters and Foreign Institutional Investors hold 69.73% & 17.37% respectively.
Salien Salientt Featur Features es - Marico Marico
ROCE - above 25% over the last last 10 years. years.
Parachute Parachute - world's world's largest packaged packaged coconut oil brand. brand.
Kaya - over 80 clinics in India and The Middle Middle East.
Retail Retail outle outlets ts ± 20L
Consumer Consumer packs packs per month ± 70 L.
Comparative Ratio Analysis Profitability Ratios
Leverage Ratios
GCPL Marico
Comparative Ratio Analysis Turnover Turnover Ratios Rati os
Liquidity Ratios
GCPL Marico
Conclusion VIABLE
TO INVEST IN FMCG SECTOR
4th Largest Sector in Indian Economy Anticipated Growth : Rs1.25 lakh crore in 2008 to Rs 4.5 lakh crore by 2018 Capacity of surviving even in recession time Stronger in terms of Financials compared to
Parameter
GCPL
Marico
Promoters Shareholding
69.79%
63.51%
Net Profit Margin : 08-09
16.70%
9.17%
07-08
14.89%
7.41%
High
Low
383.31 Crs
87.45 Crs
Liquidity Reserves & Surplus
