1.

Assignment on Financial Ratio Valuations, Acquisitions and Mergers SCIT, Executive MBA
2012-15 Nirav Khandhedia Executive MBA 2012-15, No. 2012020342017 November 16, 2013
2. > Pick up a company of your choice and analyze its annual financial reports to measure its
performance based on the following financial ratios. > Check how company is performing and
provide suggestions wherever needed. > Ratios to be evaluated are as below. Current Ratio
Gross Profit Margin Net Profit Margin Debt to Equity Ratio Return on Investment Ratio Inventory
Turnover Ratio Debtors Turnover Ratio Interest Coverage Ratio 2 Quick Ratio Net Working
Capital Ratio Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata
Coffee Ltd` Question
3. > Company considered for performance evaluation based on ratios analysis is Tata Coffee
Limited. > The Annual Financial Report, 2011-12 is attached here. > Following artifacts for each
ratio are listed in next slides. > > 3 Value for the companys performance for said financial year >
> Significance of Ratio, Standard safe limits of Ratio Inferences from the Ratio value and
Suggestions, if needed Overall performance of the company and suggestions are briefed as
Conclusion. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee
Ltd` Solution
4. Tata Coffee Limited Annual Performance Evaluation based on Financial Ratio 2011-12 Nirav
Khandhedia Executive MBA 2012-15, No. 2012020342017 November 16, 2013
5. Liquidity Ratios > Current Ratio > Quick Ratio > Net Working Capital Ratio Profitability Ratios >
Gross Profit Margin > Net Profit Margin > Return on Investment Ratio Turnover Ratios >
Inventory Turnover Ratio > Debtors Turnover Ratio > Total Assets Turnover Ratio > A/c
Payables Turnover Ratio Solvency Ratios > Interest Coverage Ratio > Debt to Equity Ratio >
Debt to Total Assets Ratio Conclusion 5 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial
Ratio Analysis for Tata Coffee Ltd` Contents
6. > > Aka working capital ratio > Current Ratio= Current Assets / Current Liabilities > 6 Current
Ratio is a measure of general liquidity and is most widely used to make the analysis for short
term financial position or liquidity of a firm. A ratio equal to or near 2 : 1 is considered as a
standard or normal or satisfactory. The idea of having double the current assets as compared to
current liabilities is to provide for the delays and losses in the realization of current assets. Nirav
Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Current Ratio
7. Current Ratio Current Ratio = Total Current Assets / Total Current Liabilities = 23780.34/15071.7
= 1.58 7 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee
Ltd`
8. > > Inventory turnover ratio (being calculated in next slides) of 3.4 is a good indication for the
company that it is able to convert its inventory into sales quite faster. Hence, degree of liquidity
for current assets is really high, and makes the company a trusted choice for investors. > 8 Ratio
is not significantly satisfactory. It shows company has more amount of short term liabilities and
its maturity to meet short term obligations is less. Hence, an alert flag for creditors. Suggestion:
Try to improve upon (minimize) the current liabilities and also look for improving (maximize) the
current assets. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata
Coffee Ltd` Current Ratio
9. > > It measures the firm's capacity to pay off current obligations immediately and is more
rigorous test of liquidity than the current ratio. > It considers liquid assets i.e. current assets but
not inventories and prepaid expenses. > Reason for exclusion: Inventories cannot be termed as
liquid assets because it cannot be converted into cash immediately without a loss of value and
same way, prepaid expenses are also excluded from the list of liquid assets because they are
not expected to be converted into cash. > 9 Quick meaning which can be easily liquidized.
Hence, Quick Ratio is aka Liquidity Ratio or Acid Test Ratio. Quick Ratio = (Total Current Assets
- Inventory)/Total Current Liabilities Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd` Quick Ratio
10. Quick Ratio Quick Ratio = (Total Current Assets - Inventory) / Total Current Liabilities =
(23780.34-12,395.28)/15071.7 = 0.75539322 10 Nirav Khandhedia, SCIT Ex-MBA, 2012-15,
Financial Ratio Analysis for Tata Coffee Ltd`
11. > > Here, almost 52% of current assets is as inventory. As mentioned earlier, Inventory turnover
ratio (being calculated in next slides) of 3.4 is a good indication for the company that it is able to
convert its inventory into sales quite faster. Hence, degree of liquidity for current assets is really
high, and hence again gives a reason for investors to trust in the company. > 11 Ratio is not
significantly satisfactory as expected, because current ratio itself was not quite high. Suggestion:
Try to improve upon (minimize) the current liabilities and also look for improving (maximize) the
current assets. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata
Coffee Ltd` Quick Ratio
12. > > It is an indication of short term financial health of a business > A positive number as NWC
ratio indicates that the company has enough liquid assets to pay off short term obligations. > 12
Net Working Capital (NWC) Ratio is one of the classic measures of a company's liquidity. NWC
Ratio = (Current Assets Current Liabilities) / Net Assets Nirav Khandhedia, SCIT Ex-MBA,
2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Net Working Capital Ratio
13. Net Working Capital Ratio NWC Ratio = (Current Assets Current Liabilities) / Net Assets =
(23,780.34-15,071.70)/(65,666.25-4,868.83-15,071.70) = 0.19 = 19% 13 Nirav Khandhedia, SCIT
Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd`
14. > > 14 19% of NWC Ratio is really a good number for the company. It indicates company has
enough amount of Liquid cash which can pay off the short term obligations. Nirav Khandhedia,
SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Net Working Capital Ratio
15. > > Gross profit margin serves as the source for paying additional expenses and future savings.
> This metric can be used to compare a company with its competitors > 15 Gross Profit Margin is
A financial metric used to assess a firm's financial health by revealing the proportion of money
left over from revenues after accounting for the cost of goods sold. Gross Profit Margin = (Sales
Cost of Goods Sold ) / Sales * 100 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd` Gross Profit Margin
16. Gross Profit Margin Gross Profit Margin = (Sales Cost of Goods Sold ) / Sales * 100 =
(50851.78 - 42080.03) / 50851.78 * 100 = 17.25 % *Cost of Goods Sold, aka COGS includes all
the direct and indirect expenses occurred to make the product. 16 Nirav Khandhedia, SCIT Ex-
MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd`
17. > > Gross Profit Margin of company is also higher than that of Hindustan Unilever Limited by
almost 3.5%, shows a good position of company in market. > 17 Gross Profit Margin of 17.25 is
better than the same margin in earlier year by almost 3%, hence a positive indicator. Suggestion:
Currently, 29% of COGS contributes to Other Expenses. company can dig in details of this
expense and may try to reduce on it wherever possible, which will make its position even better.
Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Gross
Profit Margin
18. > > This metric can be used to compare a company with its competitors > It differs from Gross
Profit Margin a bit because, while calculating this matric, we consider Net Profit, i.e. Profit after
Tax (PAT). > 18 The net profit margin provides an indication of how well a company is controlling
its costs. A high net profit margin demonstrates effectiveness at converting sales into actual
profit. Profit after Tax / Sales*100 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd` Net Profit Margin
19. Net Profit Margin Net Profit Margin = Profit after Tax / Sales*100 = 7885.28 / 50851.78 * 100 =
15.51 % 19 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee
Ltd`
20. > > 20 Net Profit Margin of 17.25 is better than the same margin in earlier year by almost 2.7%,
hence a positive indicator. Net Profit Margin of company is also higher than that of Hindustan
Unilever Limited by almost 3%, shows a good position of company in market. Nirav Khandhedia,
SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Net Profit Margin
21. > > RoI = EBIT / Assets (either total or net) > 21 Return on Investment Ratio is used to evaluate
the efficiency of an investment EBIT = Earning Before Interest and Tax Nirav Khandhedia, SCIT
Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Return on Investment Ratio
22. Return on Investment Ratio Return on Investment Ratio = EBIT / Assets (total) | = EBIT / Assets
(Net) = (10415.74-732.02)/65666.25 | = (10415.74-732.02)/(65666.25-4868.83-15071.70) =
0.1474 | = 0.2117 = 14.74% = 21.17% EBIT is not directly available in Balance Sheet. However,
EBIT by meaning is Profit without consideration of Interest and Tax. Balance sheet provides PBT
i.e. Profit Before Tax, which has considered expenses incurred on Interest Payment. PBT = Profit
(Earning) Before Interest and Tax - Expenses on Interest Payment Hence, adding back such
expenses to PBT will give us EBIT. Therefore, EBIT = PBT + Interest Payment Expenses.
*Interest charges are part of Cash Flow statement. 22 Nirav Khandhedia, SCIT Ex-MBA, 2012-
15, Financial Ratio Analysis for Tata Coffee Ltd`
23. > > Both RoI Total Assets and RoI Net Assets holds considerable percentage value. > 23
Return on Investment Ratio are the positive Indicators for Tata Coffee. It indicates that for each
unit invested, company earns almost around 15% or more returns. Nirav Khandhedia, SCIT Ex-
MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Return on Investment Ratio
24. > > It is expressed in number of times. Inventory turn over ratio indicates the number of time the
stock has been turned over during the period and evaluates the efficiency with which a firm is
able to manage its inventory. This ratio indicates whether investment in stock is within proper
limit or not. > Aka Stock turn over ratio > Usually a high inventory turnover/stock velocity
indicates efficient management of inventory because more frequently the stocks are sold, the
lesser amount of money is required to finance the inventory. > 24 Inventory Turnover Ratio is a
relationship between the cost of goods sold during a particular period of time and the cost of
average inventory during a particular period. Inventory Turnover Ratio = COGS/Inventory Nirav
Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Inventory
Turnover Ratio
25. Inventory Turnover Ratio Inventory Turnover Ratio = COGS/Inventory = 42080.03/12,395.28 =
3.3948 ~ 4 Times 25 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for
Tata Coffee Ltd`
26. > > 26 Inventory Turnover Ratio as 4 Times signifies, company is well efficient to manage its
inventory i.e. company is able to convert its inventory to sale very efficiently. It signifies that, as
inventory is easily converted to sale, there would be less amount of extra money required for
further generation of inventories. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd` Inventory Turnover Ratio
27. > > The higher the value of debtors turnover the more efficient is the management of debtors or
more liquid the debtors are. > Debtors turnover ratio or accounts receivable turnover ratio
indicates the velocity of debt collection of a firm. > Aka Accounts Receivable Turnover Ratio. >
27 Debtors Turnover Ratio indicates the number of times the debtors are turned over a year.
Debtors Turnover Ratio = Sales / Debtors Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial
Ratio Analysis for Tata Coffee Ltd` Debtor's Turnover Ratio
28. Debtor's Turnover Ratio Debtor's Turnover Ratio = Sales / Debtors = 50851.78/ 4434.72 = 11.47
~ 11.5 Times 28 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata
Coffee Ltd`
29. > > 29 Debtors Turnover Ratio being approximately 11.5 times is quite a big and appreciable
figure for the company. It clearly indicates the debts of company are being liquidized very easily
and hence company is efficiently managing its debtors. Nirav Khandhedia, SCIT Ex-MBA, 2012-
15, Financial Ratio Analysis for Tata Coffee Ltd` Debtor's Turnover Ratio
30. > > An increasing ratio indicates that company is using its assets more productively.. > 30 Total
Assets Turnover Ratio indicates how efficiently your business generates revenues on each dollar
of assets. Debtors Turnover Ratio = Revenue / Total Assets Nirav Khandhedia, SCIT Ex-MBA,
2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Total Assets Turnover Ratio
31. Total Assets Turnover Ratio Total Assets Turnover Ratio = Revenue / Total Assets = 51657.20 /
65666.25 = 0.7866 ~ 78.66 Times 31 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd`
32. > > Similar ratio calculated for last year is 42713.61/62168.19 = 68.70 ~ 69%. > 32 Total Assets
turnover Ratio being approximately 79 times shows company is able to use its all assets very
effectively and efficiently. The improvement of 10% in the ratio shows how company has made
its assets more productive in last one year. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial
Ratio Analysis for Tata Coffee Ltd` Total Assets Turnover Ratio
33. > > The higher the value of A/c Payables turnover the shorter the period between the purchase
and payments. > A High turn over may indicate unfavorable supplier repayment terms. > A Low
turn over may indicate sign of cash flow problems. > 33 A/c Payables Turnover Ratio indicates
the number of times the trade payables are turned over a year. A/c Payables Turnover Ratio =
Sales / Average A/c Payables Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd` A/c Payables Turnover Ratio
34. A/c Payables Turnover Ratio A/c Payables Turnover Ratio = Sales / Average A/c Payables =
50851.78/ 1237.80 = 41.08 ~ 41 Times 34 Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial
Ratio Analysis for Tata Coffee Ltd`
35. > > 35 Debtors Turnover Ratio being approximately 41 times is quite a big and appreciable
figure for the company and its suppliers relationship of credit terms. It clearly indicates the
companys inventory is well funded by creditors. Nirav Khandhedia, SCIT Ex-MBA, 2012-15,
Financial Ratio Analysis for Tata Coffee Ltd` A/c Payables Turnover Ratio
36. > > This matric is very important from the lender's point of view. It indicates the number of times
interest is covered by the profits available to pay interest charges. > A high debt service ratio or
interest coverage ratio assures the lenders a regular and periodical interest income. > Aka Debt
Service Ratio or Debt Service Coverage Ratio. > Interest Coverage Ratio = EBIT / Interest OR
EBITDA / Interest > EBIT = Earnings Before Interest and Taxes > 36 Interest Coverage Ratio
relates the fixed interest charges to the income earned by the business. It indicates whether the
business has earned sufficient profits to pay periodically the interest charges. EBITDA =
Earnings Before Interest, Taxes, Depreciation and Amortization Nirav Khandhedia, SCIT Ex-
MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Interest Coverage Ratio
37. Interest Coverage Ratio Interest Coverage Ratio = EBIT / Interest EBITDA / Interest = (10415.74-
732.02)/732.02 | (10415.74-732.02-1324.11) / 732.02 = 13.22 37 | | 11.419 Nirav Khandhedia,
SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd`
38. > > It indicates company is earning profit which is at least more than 10 times the interest amount
to be paid. > Even though, this ratio not being excellently high, it surely gives a sense of security
to the landers for their interest amount. > 38 Interest Coverage Ratio for the company is not
excellently well, but not bad too. Suggestion: Company can make out a strategy to increase its
Profit which will, in turn, pull this ratio to still higher value. Nirav Khandhedia, SCIT Ex-MBA,
2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Interest Coverage Ratio
39. > > Aka external internal equity ratio or Gearing. > It is determined to ascertain soundness of the
long term financial policies of the company. > A ratio of 1:1 is usually considered to be
satisfactory ratio although there cannot be rule of thumb or standard norm for all types of
businesses. Theoretically if the owners interests are greater than that of creditors, the financial
position is highly solvent. > 39 Debt-to-Equity ratio indicates the relationship between the
external equities or outsiders funds and the internal equities or shareholders funds. Debt to
Equity Ratio = Total Debt/Total Owner's Equity Nirav Khandhedia, SCIT Ex-MBA, 2012-15,
Financial Ratio Analysis for Tata Coffee Ltd` Debt to Equity Ratio
40. Debt to Equity Ratio Debt to Equity Ratio = Total Debt/Total Owner's Equity =
(4,868.83+15,071.70)/45,725.72 = 0.436 : 1 40 Nirav Khandhedia, SCIT Ex-MBA, 2012-15,
Financial Ratio Analysis for Tata Coffee Ltd`
41. > > 41 Debt to Equity Ratio is quite nice. Its surely a positive indicator for the company.
However, company can still borrow more money and use it for the business so long as it is in
safe range i.e. till this ratio is less than or equal to 1. This step may help company to grow even
more on GPM and NPM ratios. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio
Analysis for Tata Coffee Ltd` Debt to Equity Ratio
42. > > A higher value of this ratio indicates company is taking more risky funds and if at all Risk
event actually occurs, company has to forgo its good amount of assets to pay the debt. > 42
Debt-to-Total Assets ratio indicates what proportion of total assets is provided by the creditors.
Debt to Total Assets Ratio = Total Debt / Total Assets Nirav Khandhedia, SCIT Ex-MBA, 2012-
15, Financial Ratio Analysis for Tata Coffee Ltd` Debt to Total Assets Ratio
43. Debt to Total Assets Ratio Debt to Total Assets Ratio = Total Debt/Total Assets =
(4,868.83+15,071.70)/65,666.25 = 0.3036 ~ 30.36 times 43 Nirav Khandhedia, SCIT Ex-MBA,
2012-15, Financial Ratio Analysis for Tata Coffee Ltd`
44. > > 44 Debt to Total Assets Ratio of 30.36 times indicates company is levered. Company is
having good amount of liquidity and hence this ratio doesnt pose much of risk. Nirav
Khandhedia, SCIT Ex-MBA, 2012-15, Financial Ratio Analysis for Tata Coffee Ltd` Debt to Total
Assets Ratio
45. > > Gross Profit Margin and Net Profit Margin also indicate that company has performed better
than previous year as well as better than its competitors in this year. Additionally, high value of
Debt to Equity Ratio also signifies that company can still pull in the money from borrowers,
easily, and may get a chance to yet increase its GPM and NPM. > Yes, Return on Investment
Ratio and Debtors Turnover Ratio and Interest Coverage Ratio being significantly higher,
investors will also not hesitate investing here. > 45 Current Ratio and Quick Ratios are not much
satisfactory and may convey a red flag to the investors. But, Inventory Turnover Ratio being
satisfactorily high and inventory being almost 50% of the Current Assets, it gives a positive
message that maximum current assets is highly liquid. NWC Ratio of almost 19% indicates
company is having enough amount of Liquid cash and is mature enough to pay off all the short
term obligations. Collectively, all ratios indicate company is performing well and still has capacity
and situation favorable to make it better. Nirav Khandhedia, SCIT Ex-MBA, 2012-15, Financial
Ratio Analysis for Tata Coffee Ltd` Conclusion
46. Thank You







1. 10
2. INTRODUCTION
1. Mission
1. Unilever's mission is to add Vitality to life. They meet everyday needs for nutrition, hygiene, and
personal care with brands that help people feel good, look good and get more out of life
2. Innovation
1. In their scientific innovation to meet consumer needs they will respect the concerns of their
consumers and of society. They will work on the basis of sound science applying rigorous
standards of product safety.
3. Mr. Shreejit Mishra Executive Director Foods Mr. Gopal Vittal Executive Director Home &
Personal Care
4.
1. Personal Wash
1. Lux
2. Lifebuoy
3. Liril
4. Hamam
5. Breeze
6. Dove
7. Pears
8. Rexona
5.
1. Fabric Wash
1. Surf Excel
2. Rin
3. Wheel
2. Hair Care
1. Sunslik Naturals
2. Clinic
3. Oral Care
1. Pepsodent
2. Closeup
6.
7.
1. House Hold Care
1. Vim
2. Skin Care
1. Fair & Lovely
2. Pond's
3. Vaseline
4. Aviance
8.
1. Tea
1. Brooke Bond
2. Lipton
2. Coffee
1. Brooke Bond Bru
3. Foods
1. Kissan
2. Annapurna
3. Knorr
4. Ice Cream
1. Kwality Wall's
9. CHALLENGES FOR HUL
1. Inflation reducing Profit
2. Competition in Core Categories
3. Raw materials
4. Consumer income reduction
5. Emerging player
6. Advertising expenditure
7. Price positioning
8. Competitors focusing single category
10. CHALLENGES FOR HUL
1. Consumer behavior
2. Global Exposure
3. Changing habits
4. Confused with competitors product
5. Traditional habits
6. Go Further-Go Faster
7. Challenge conventional wisdom
11. CHALLENGES FOR HUL
1. Creating a different mind set
2. Make something from waste
3. Deal with a difficult visitor
4. Help to improve nations nutrition
5. Turn a problem into solution
6. Give life an Extra-Flavor
12. Strategies followed by HUL
1. Restructured in two divisions
2. Improvement in portfolio products
3. Change in job management structure
4. 400 products selected
5. Manufacturing reorganised in regional networks
6. IT systems reconfigured
7. Food
8. Home / Personal care products
9. Reduction in managerial job classes
10. Develop deep level expertise
13. Pioneer strategies
1. Building markets and building brands
2. Launch brands when innovation pipeline is full
3. To deliver sustainable performance by looking long term
4. Clarity of strategies where HUL want to win
5. Transformational changes
14. Strategies followed by HUL
1. Management strategies
2. Self - development
3. Encompassed career planning and progression
4. Learning and development
5. Remuneration
6. Reward system
7. Competence dictionary
8. Job skill profile
9. Distingushment of job classes
10. Commitment to own professional development
11. Global Exposure to Managers
12. Sound knowledge of local market
15. Strategies followed by HUL
1. Aspiration and personal growth needs
2. Balance between private and professional life
3. Emphasis in MDS
16. Strategies followed by HUL
1. Who will be the manager?
2. High level performance
3. Have strong potential
17. Some Major Competitors
1. Cavinkare Ltd
2. Procter & Gamble
3. Marico group
4. Nestle
5. Dabur
6. Fairever
7. Tide
8. Hair oil and Food products
9. Coffee
10. Health care products
18. Indian Competitive Scenario Pre 1990 Post 90 Foods Tata Tea Danone Nestle Kellogs Heinz
Grand Met Personal Products Colgate LOreal Balsara Revlon Benckiser Avon Oriflame Amway
Home Care TOMCO P &G Nirma Henkel Godrej Sara Lee
19. NET PROFITS : 1996-2000 Rs . Bn CAGR : 33.4 % 13.1 12.0 10.7 10.0 8.1 8.0 5.6 6.0 4.1 4.0
2.0 0.0 1996 1997 1998 1999 2000 Note : Net Profit is after exceptional items
20. Key Financials 2007 2006 2005 Reported Growth 13.3% 9.4% 11.4% Continuing sales growth*
13.5% 10.0% 11.5% * Before restructuring, disposal As per audited financial statements of the
company; accounting as per Indian GAAP
21. HUL vs Nearest Competitors Particulars Laundry Soaps Shampoo Skin Toothpaste Tea Coffee
Market Size - $ mln 2247 1658 542 698 691 1113 177 HUL Share 37.5% 54.3% 47.8% 54.5%
29.5% 22.7% 44.0% Nearest Competitor 13.6% 9.7% 23.7% 7.4% 48.8% 20.8% 39.1% Affluent
Aspiring Striving
22. Financial Overview 2007 Mn $ Turnover 3473 EBIT 499 EBIT % 14.4% PAT (bei) 448 Reported
Profit 487 EPS 21c Market Capitalisation ~11500 Operating Cash Flow 419 Personal Products
Soaps and 26% Detergents Processed Breverages Exports 46% Foods 11% 10% 4% Others
Icecreams 2% 1%
23. Analysis
1. There is a crucial need to strategically place brands on strong position. The time has come to
differentiate various brands and solve the mess around. It is hard to differentiate blue competitive
brands cash brands in case of HUL. Its not a good idea to choose a cshing brands for
competitives moves. The only worry for HUL should be to avoid the multiple price wars. Product
line proliferation is the one of the usual way to come out of this chakar vyu. But still there are
many ways to get the competitors on their feet
24. PRESENTATION DONE BY
1. M.K. VIGNESH
2. J.SHIVARAMAN
3. VIKAS
4. AXAY BANYAL
5. MOHAMED MAMOOTH KHAN
6. THUSHAR
7. GAURAV VERMA
QUERIES???
25.