INDUSTRY ANALYSIS OF FMCG INDUSTRIES

SUBMITTED TO SUBMITTED BY

DR PADMA K ROHIT

(HOD-MBA DEPT)

SCHOOL OF MANAGEMENT

NIT - WARANGAL

ACKNOWLEDGEMENT

I am thankful to Padma Mam for providing us the the task of preparing the industry

analysis report . For analysis we have taken the FMCG Industries . This report has

cleared many concepts of ours and in future such tasks will help us to analyse the

things in corporate sector in a more lucid and easy way . Thanks once again mam

for providing task like this to us

ROHIT KUMAR

INDEX

SR. NO. PARTICULARS

1. Executive Summary

2. Introduction of Industry/Sector

3. List of 25 Industries/Sectors

4. Introduction of FMCG Industry

5. List of Companies under FMCG Industry

6. List of Three Companies Under Study

7. Analysis of Companies

8. Hindustan Unilever

9. ITC

10. Nestle India

11. Conclusion

EXECUTIVE SUMMARY

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced

within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning

products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also

include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.

India’s FMCG sector is the fourth largest sector in the economy and creates

employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages.

The total FMCG market is in excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a

high growth rate. FMCG Industry is characterized by a well-established distribution network, low penetration levels, low operating cost, lower per capita

consumption and intense competition between the organized and unorganized segments.

INTRODUCTION OF INDUSTRY

Industry is the production of a good or service within an economy. Manufacturing

industry became a key sector of production and labour in European and North

American countries during the Industrial Revolution, upsetting

previous mercantile and feudal economies. This occurred through many successive

rapid advances in technology, such as the production of steel and coal.

Following the Industrial Revolution, perhaps a third of the world's economic

output is derived from manufacturing industries. Many developed and many

developing/semi-developed countries (People's Republic of China, India etc.)

depend significantly on manufacturing industry. Industries, the countries they

reside in, and the economies of those countries are interlinked in a complex web of

interdependence.

Classification of industry

Industries can be classified in a variety of ways. At the top level, industry is often

classified into sectors: Primary or extractive, secondary or manufacturing, and tertiary or services. Some authors add quaternary (knowledge) or even quinary

(culture and research) sectors. Over time, the fraction of a society's industry within each sector changes. They are-

Sector Definition

Primary

This involves the extraction of resources directly from the Earth; this

includes farming, mining and logging. They do not process the products at all. They send it off to factories to make a profit.

Secondary This group is involved in the processing products from primary industries. This includes all factories—those that refine metals,

produce furniture, or pack farm products such as meat.

Tertiary This group is involved in the delivery and sale of goods. They include truck drivers and retail workers, for example.

Quaternary This group is involved in the research of science and technology and other high level tasks. They include scientists, doctors, and lawyers.

INTRODUCTION OF A COMPANY

A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both. Company members share a common purpose

and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Companies take

various forms such as:

Voluntary associations which may nonprofit organization

A group of soldiers

Business entities with an aim of gaining a profit

Financial entities and banks

A company or association of persons can be created at law as legal person so that

the company in itself can accept Limited liability for civil responsibility and taxation incurred as members perform (or fail) to discharge their duty within the publicly declared "birth certificate" or published policy because companies are

legal persons, they also may associate and register themselves as companies - often known as a corporate group. When the company closes it may need a "death

certificate" to avoid further legal obligations.

LIST OF 25 INDUSTRIES/SECTORS

INDUSTRY 5 COMPANIES LOCATION

CEMENT

INDUSTRY

Binani Cement Ltd Kolkata, West Bengal

JK Lakshmi Cement Ltd Sirohi Dist, Rajasthan

UltraTech Cement Limited Mumbai, Maharashtra

Ambuja Cements Limited Junagadh ,Gujarat

Shree Cement Ltd. Beawar, Rajasthan

PAINT INDUSTRY Kansai Nerolac Paints Ltd. Mumbai, Maharashtra

Dulux India Paints Gurgaon ,Haryana

Asian Paints India Santacruz (E), Mumbai

Berger Paints Kolkata, West Bengal

Shalimar Paints Mumbai, Maharashtra

BANKING INDUSTRY

State Bank of India Mumbai, Maharashtra

ICICI Bank Ltd. Vadodara, Gujarat

Axis Bank Ltd. Ahmedabad, Gujarat

HDFC Bank Ltd. Mumbai, Maharashtra

IDBI Bank Ltd Mumbai, Maharashtra

AUTOMOBILE INDUSTRY

Mahindra & Mahindra

Limited

Mumbai, Maharashtra

Maruti Suzuki India Ltd New Delhi, Delhi

Tata Motors Limited Mumbai, Maharashtra

Swaraj Mazda Ltd Nawanshahar, Punjab

Ashok Leyland Limited Chennai, Tamil Nadu

PAPER INDUSTRY Agio Paper & Industries Ltd Kolkata, West Bengal

Bio Green Papers Ltd. Hyderabad, Andhra

Pradesh

J K Paper Limited Tapi, Gujarat

Rainbow Papers Ltd Ahmedabad, Gujarat

Genus Paper Products Ltd. Moradabad, Uttar Pradesh

POWER (ENERGY) SECTOR

Krisons Electronic Systems

Ltd.

New Delhi, Delhi

Star Delta Transformers Ltd Bhopal, Madhya Pradesh

Maurya Industrial Resources

Ltd.

New Delhi, Delhi

Globus Power Generation

Ltd.

New Delhi, Punjab

Epic Energy Ltd. Mumbai, Maharashtra

TELECOM SECTOR Bharti Airtel New Delhi, Delhi

Tata Communications Ltd Mumbai, Maharashtra

Spice Communications Ltd. New Delhi, New Delhi

Reliance Communications

Ltd.

Mumbai, Maharashtra

Idea Cellular Ltd. Gandhinagar, Gujarat

COAL INDUSTRY Neyveli Lignite Coorporation

Ltd.

Chennai, Tamil Nadu

Eastern Coalfields Limited Burdwan, W.B.

Coal India ltd. Kolkata, West Bengal

Singareni Collieries Company

Ltd.

Hyderabad

Mahanadi Coalfields ltd. Brajraj Nagar,

Brajrajnagar

REALTY/ESTATE

SECTOR

DLF Limited Gurgaon, Haryana

Pearl Apartments Ltd. New Delhi, Delhi

Alchemist Realty Ltd Mumbai, Maharashtra

Omaxe Limited Gurgaon, Haryana

Phoenix Township Ltd. Panaji, Goa

PHARMACEUTICAL SECTOR

Cipla Ltd. Mumbai, Maharashtra

Dr. Reddy's Laboratories

Limited

Hyderabad, Andhra

Pradesh

Wyeth Ltd. Mumbai, Maharashtra

GlaxoSmithKline Mumbai, Maharashtra

Pharmaceuticals Limited

Novartis India Limited Mumbai, Maharashtra

OIL & GAS SECTOR Indian Oil Corporation Ltd. New Delhi, Delhi

Bharat Petroleum Corporation

Limited

Mumbai, Maharashtra

Oil India ltd. Noida

Oil and Natural gas

Corporation

Dehradun

Gujarat State Petroleum

Corporation

Gandhinagar, Gujarat

STEEL INDUSTRY Jindal Steel and Power

Limited

Hisar, Haryana

Bhushan Steel Ltd. Mumbai, Maharashtra

Tata Steel Limited Mumbai, Maharashtra

Steel Authority of India

Limited

New Delhi, Delhi

Steelco Gujarat Ltd Bharuch, Gujarat

NON FERROUS METAL INDUSTRY

EXCEPT

ALUMINIUM

Novelis Pune

Mcreller Industry

Incorporation

Mumbai, Maharashtra

ALCOA New Delhi, Delhi

Encore Wire Corporation Mumbai, Maharashtra

Olin Corporation New Delhi, Delhi

IT SECTOR Infosys Technologies Ltd. Bengaluru, Karnataka

TECH MAHINDRA Mumbai, Maharashtra

Tata Consultancy Services Mumbai, Maharashtra

Aplab Ltd. Thane, Maharashtra

HCL Technologies Ltd. New Delhi, Delhi

ALUMINIUM SECTOR

HINDALCO Mumbai, Maharashtra

NALCO Bhubaneswar

PG Foils Pali, Rajasthan

Hind Aluminium Mumbai, Maharashtra

Sacheta metals Mumbai, Maharashtra

TYRE SECTOR Apollo Tyres Gurgaon, Haryana

MRF Tyres Chennai

Ceat Tyres Mumbai, Maharashtra

Goodyear Faridabad

Balkrishna Industry Thane, Maharashtra

TEXTILE

INDUSTRY

Denim Fashions Ltd. Vadodara, Gujarat

Kavita Fabrics Ltd. Surat, Gujarat

The Birla Cotton Spinning &

Weaving Mills Ltd.

New Delhi, Delhi

Binny Mills Ltd. Chennai, Tamil Nadu

Reid & Taylor (India) Ltd Mumbai, Maharashtra

FMCG SECTOR ITC Limited Kolkata, West Bengal

Marico Ltd Mumbai, Maharashtra

Britannia Industries Ltd Kolkata, West Bengal

Nestle India Ltd New Delhi, Delhi

Hindustan Unilever Limited Mumbai, Maharashtra

HEALTHCARE SECTOR

GlaxoSmithKline Consumer

Healthcare Ltd

Nabha, Punjab

Piramal Healthcare Ltd Mumbai, Maharashtra

Procter & Gamble Hygiene Mumbai, Maharashtra

and Health Care Limited

Amrutanjan Health Care Ltd. Chennai, Tamil Nadu

Cadila Healthcare Limited Ahmedabad, Gujarat

CONSUMER

DURABLES SECTOR

Samsung India Electronics

Pvt. Ltd.

Gurgaon, Delhi

Whirlpool Gurgaon, Delhi

Philips India Limited Chennai, Tamil Nadu

LG Electronics Greater Noida, U.P.

Godrej Industries Limited Vikhroli, Mumbai

PSU SECTOR Bengal Chemicals &

Pharmaceuticals

Kolkata, West Bengal

Central Warehousing

Corporation

Hauz Khas, New Delhi

Eastern Coalfields Burdwan, W.B.

Bharat Earth Movers Byculla, Mumbai

Central Inland Water

Transport Corporation

Kolkata, West Bengal

AVIATION SECTOR Kingfisher Airlines Ltd Bengaluru, Karnataka

SpiceJet Ltd. Gurgaon, Haryana

Jet Airways (India) Ltd. Mumbai, Maharashtra

Indigo/Deccan Aviation ltd. Gurgaon, Haryana

Air Charter India New Delhi, Delhi

HOTEL (HOSPITALITY)

SECTOR

Hotel Leela Venture Limited Mumbai, Maharashtra

Taj GVK Hotels and Resorts Hyderabad

Royal Orchid Bangalore, Karnataka

Jindal Hotels Vadodara, Gujarat

INTRODUCTION OF FMCG INDUSTRY

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that are sold quickly at relatively low cost. Though the

absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large.

Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products,

shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods.

Main characteristics of FMCGs:

From the consumers' perspective:

Frequent purchase Low involvement (little or no effort to choose the item – products

with strong brand loyalty are exceptions to this rule) Low price

From the marketers' angle:

High volumes

Low contribution margins Extensive distribution network

ITC Hotels New Delhi, Delhi

ACCOUNTING COMPANY

(INCLUDING BIG-4)

Ernst & Young Kolkata, West Bengal

KPMG Mumbai, Maharashtra

Arthur Anderson Dublin, Republic of

Ireland

PWC Mumbai, Maharashtra

Delloite Ahmedabad, Gujarat

LIST OF THE COMPANIES UNDER THE FMCG SECTOR

Hindustan Unilever

ITC Ltd.

Pidilite Industries

Amul

Godrej Consumer Products Limited

Dabur India Ltd.

Emami

Colgate Palmolive India Ltd.

Zydus Wellness

Britannia

GlaxoSmithKline Consumer Healthcare Ltd. (India)

Wipro Consumer Care & Lighting Ltd.

Marico

CavinKare

Parle Agro

Haldiram's

Nirma

Himalaya Healthcare Ltd

Nestle India

Cadbury India

3 Companies under Study

Hindustan Unilever

ITC Ltd.

Nestle India

ANALYSIS

HINDUSTAN UNILEVER LIMITED HISTORY OF HINDUSTAN UNILEVER LIMITED

PRODUCTS OF HUL –

1) BEVERAGES

2) FOOD 3) CLEANING AGENTS

4) WATER PURIFIERS 5) PERSONAL CARE

NAME DESIGNATION

Mr. Harish Manwani Chairman

Mr. Sanjiv Mehta CEO and Managing Director

Mr. P.B. Balaji Chief Financial Officer

Mr. Pradeep Banerjee Chief Executive-Supply Chain

Mr. Aditya Narayan Independent Director

Mr. S. Ramadorai Independent Director

Mr. O.P.Bhatt Independent Director

Dr. Sanjeev Misra Independent Director

HINDUSTAN UNILEVER’S SHAREHOLDING PATTERN

SHARE HOLDING PATTERN (% of Shares Held)

CATEGORY OF SHAREHOLDER

Total Number of Shares

Percentage Share Holding (%)

Promoter

Foreign Promoter 1,45,44,12,858 67.24

Total Promoter 1,45,44,12,858 67.24

Non Promoter

Institutions

Mutual Funds / UTI 44,62,582 0.21

FI/Bank/Insurance 8,41,01,967 3.88

Govt 20 0

FII 31,53,92,703 14.58

Total Institutions 40,39,57,272 18.67

Non-Institution

Bodies Corporate 2,18,58,599 1.01

Individuals (upto Rs. 1 lakh) 26,80,29,610 12.39

Promoters, 52.5

Individuals, 14.17

Institutions, 10.31

FII, 19.43

Govt., 0 Others, 3.59

Individuals (in excess of Rs. 1 lakh) 53,25,530 0.25

NRIs/OCBs 76,27,325 0.35

Others 27,52,51,746 12.73

Total Non-Institution 30,47,37,670 14.09

Total Non Promoter 70,86,94,942 32.76

Total 2,16,31,07,800 100

FINANCIAL RESULT

BALANCE SHEET

Parameters MAR'14 MAR'13 MAR'12 MAR'11 MAR'10

(Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.)

EQUITY AND LIABILITIES

Share Capital 216.27 216.25 216.15 215.95 218.17

Shareholder's Funds 3,277.05 2,674.02 3,512.93 2,659.52 2,583.52

Deferred Tax Assets /

Liabilities -161.73 -204.78 -214.24 -209.66 -248.82

Other Long Term Liabilities 278.82 476.25 329.69 219.2 0

Long Term Provisions 838.69 706.34 666.95 663.87 0

Total Non-Current

Liabilities 955.78 977.81 782.4 673.41 -248.82

Trade Payables 5,793.89 5,167.69 4,622.96 5,009.05 5,222.99

Current Liabilities

Other Current Liabilities 852.94 616.15 546.77 554.59 68.67

Short Term Provisions 1,957.01 1,872.02 1,278.97 1,056.43 1,441.55

Total Current

Liabilities 8,603.84 7,655.86 6,448.70 6,620.07 6,733.21

Total Liabilities 12,836.67 11,307.69 10,744.03 9,953.00 9,067.91

ASSETS

Gross Block 4,442.85 4,134.20 3,811.68 3,759.62 3,581.96

Less: Accumulated 2,020.79 1,841.30 1,664.21 1,590.52 1,419.85

Depreciation

Net Block 2,422.06 2,292.90 2,147.47 2,169.10 2,162.11

Capital Work in Progress 312.08 205.32 205.13 216.59 273.96

Intangible assets under development 7.7 10.32 10.32 72.17 0

Non Current

Investments 636.17 548.03 186.31 120.58 99.84

Long Term Loans & Advances 605.51 384.29 401.27 400.31 0

Other Non Current

Assets 0.68 296.84 0 0 0

Total Non-Current Assets 3,984.20 3,737.70 2,950.50 2,978.75 2,535.91

Total Reserves 3,018.09 2,419.50 3,261.01 2,415.03 2,362.19

Current Assets Loans & Advances

Currents Investments 2,457.95 1,782.63 2,251.90 1,140.09 1,164.24

Inventories 2,747.53 2,526.99 2,516.65 2,810.77 2,179.93

Cash and Bank 2,220.97 1,707.89 1,830.04 1,628.47 1,892.21

Other Current Assets 240.05 204.53 219.69 178 16.62

Short Term Loans and

Advances 369.54 514.47 296.26 273.71 607.4

Total Current Assets 8,852.47 7,569.99 7,793.53 6,974.25 6,532.00

Net Current Assets (Including Current

Investments) 248.63 -85.87 1,344.83 354.18 -201.21

Total Current Assets Excluding Current

Investments 6,394.52 5,787.36 5,541.63 5,834.16 5,367.76

Total Assets 12,836.67 11,307.69 10,744.03 9,953.00 9,067.91

Contingent Liabilities 896.13 768.87 743.67 748.96 468.49

Book Value (in Rs.) 14.95 0 16.08 12.18 11.82

Adjusted Book Value (in Rs.) 14.95 0 16.08 12.18 11.82

DIVIDEND SUMMARY

For the year ending March 2014, Hindustan Unilever has declared an equity

dividend of 1300.00% amounting to Rs 13 per share. At the current share price of

Rs 757.50 these results in a dividend yield of 1.72%. The company has a good

dividend track report and has consistently declared dividends for the last 5 years.

ANNUAL REPORT

Results

Summarised Profit and Loss Account

(Rs. crores)

For the year ended For the year ended

31st March, 2014 31st March, 2013

Sale of products less excise

duty

27,408.29 25206.38

Other operational income 610.84 603.83

Total Revenue 28,019.13 25,810.21

(Rs. crores)

For the year ended For the year ended

31st March, 2014 31st March, 2013

Revenue from operations,

net of excise

28,019.13 25,810.21

Profit before exceptional items and tax

4,799.71 4,349.48

Profit for the year 3,867.49 3,796.67

Dividend (including tax on

distributed profits)

Transfer to General Reserve

(386.75) (379.67)

Profit and loss balance carried forward

743.05 535.28

Operating Costs (23,543.87) (21,806.46)

Profit before Depreciation, Interest, Tax (PBDIT)

4,475.26 4003.75

Depreciation (260.55) (236.02)

Profit after Interest & Tax (PBIT)

4,214.71 3767.73

Other Income (net) 585.00 581.75

Profit before exceptional

items

4,799.71 4349.48

Exceptional items 228.68 608.40

Profit Before Tax (PBT) 5,028.39 4957.88

Taxation (1,160.90) (1,161.21)

Profit for the year 3,867.49 3,796.67

Basic EPS (Rs.) 17.88 17.56

DIVIDEND DECLARED

Announcement Effective Dividend Dividend Remarks

Date Date Type (%)

28-04-14 11-06-14 Final 750 Rs.7.5000 per share(750%)Final

Dividend

15-10-13 31-10-13 Interim 550 Rs.5.5000 per share(550%)Interim

Dividend

29-04-13 10-07-13 Final 600 Rs.6.0000 per share(600%)Final

Dividend

18-10-12 01-11-12 Interim 1,250.00 Rs.4.5000 per share(450%)Interim

Dividend & Rs.8.0000 per share(800%)Special

Dividend

1/5/2012 4/7/2012 Final 400 -

17-10-11 04-11-11 Interim 350 -

9/5/2011 8/7/2011 Final 350 -

14-10-10 01-11-10 Interim 300 -

25-05-10 8/7/2010 Final 350 -

15-10-09 06-11-09 Interim 300 -

11-05-09 12-06-09 Final 400 -

15-07-08 4/8/2008 Interim 350 -

13-02-08 17-03-08 Final 300 -

23-10-07 07-11-07 Interim 300 Dividend (Platinum

Jubliee)

23-07-07 7/8/2007 Interim 300 -

20-02-07 20-04-07 Final 300 AGM

10-07-06 8/8/2006 Interim 300 -

14-02-06 28-04-06 Final 250 AGM

25-07-05 8/8/2005 Interim 250 -

11-02-05 7/6/2005 Final 250 AGM

20-07-04 13-08-04 Interim 250 -

17-02-04 14-05-04 Final 300 -

16-07-03 14-08-03 Interim 250 -

16-10-01 20-06-03 Final 276 Bonus issue of

Debentures & Special Dividend 276%

29-01-03 4/4/2003 Final 300 AGM

10-07-02 7/8/2002 Interim 250 -

BONUS SUMMARY

The last bonus that Hindustan Unilever had announced was in 1991 in the ratio of

1:2.The share has been quoting ex-bonus from July 19, 1991.

Bonus History

Announcement Date

Bonus Ratio

Record Date

Ex-Bonus

Date

30-09-1991 1:02 21-08-1991 19-07-1991

22-06-1987 1:01 - -

22-06-1983 3:05 - -

22-06-1979 1:03

FUTURE PROSPECTS OF HUL

India is a fast developing country with a huge population whose per capita income is growing rapidly and there is huge opportunity for FMCG companies.

The opportunities are as follows:

Increasing per capita income is driving FMCG growth in India

India’s consuming class is growing rapidly

Changing consumption pattern: Per capita income of Indian customer is

increasing and FMCG products are relatively elastic in nature hence the expected sale should increase.

FUTURE PROJECTS OF HUL:

As competition is increasing day by day, it’s difficult to maintain the leader

position & to further strengthen the distribution network HUL made a project called project SHAKTI which will serve the following purpose:

A) To Reach: Small, scattered settlements and poor infrastructure make distribution

difficult. Over 500,000 villages not reached directly by HUL.

B) To Communicate: Low literacy hampers effectiveness of print media.

Poor media-reach: 500 million Indians lack TV & radio.

C) To Influence: Low category penetration, consumption.

C) Awareness:

Per capita consumption in Unilever categories is 33% of urban level.

ITC HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco

Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India

Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a

wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery

Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in

the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited, ‘where ‘ITC’ is today no longer an acronym or an initialized form.

CORPORATE INFORMATION

Name Designation

Yogesh Chander Deveshwar Chairman

Pradeep Vasant Dhobale Executive Director

Anil Baijal Non Executive Director

Serajul Haq Khan Non Executive Director

Sahibzada Syed Habib-ur-Rehman Non Executive Director

S B Mainak Non Executive Director

Pillappakkam Bahukutumbi Ramanujam Non Executive Director

Krishnamoorthy Vaidyanath Non Executive Director

Nakul Anand Executive Director

Kurush Noshir Grant Executive Director

Angara Venkata Girija Kumar Non Executive Director

Sunil Behari Mathur Non Executive Director

Robert Earl Lerwill Non Executive Director

Meera Shankar Non Executive Director

Anthony Ruys Non Executive Director

PRODUCTS OF ITC

FMCG:

1) CIGARETTES

2) CIGARS

3) FOODS

4) LIFESTYLE RETAILING

5) PERSONAL CARE

6) EDUCATION AND STATIONARY.

7) SAFETY MATCHES.

8) AGARBATTIS

9) HOTELS

ITC’S SHAREHOLDING PATTERN

SHARE HOLDING PATTERN (% OF SHARES HELD)

CATEGORY OF

SHAREHOLDER

Total Number of

Shares

Percentage ShareHolding

(%)

Institutions

Mutual Funds / UTI 1,03,49,21,991 13.01

FI/Bank/Insurance 1,74,94,21,442 21.99

FII 1,53,03,23,687 19.24

Total Institutions 4,31,46,67,120 54.24

Non-Institution

Bodies Corporate 32,90,28,616 4.14

Individuals (upto Rs. 1 lakh) 68,07,19,308 8.56

Promoters0% Individuals

11%

Institutions34%

FII17%Govt.

0%

Others38%

Sales

Individuals (in excess of Rs. 1 lakh)

13,34,06,576 1.68

NRIs/OCBs 4,45,21,939 0.56

Others 3,24,60,23,045 40.80

Total Non-Institution 3,61,95,73,600 45.50

Total Non Promoter 7,93,42,40,720 99.74

Depository Receipts 2,07,75,620 0.26

Total 7,95,50,16,340 100.00

FINANCIAL RESULTS

BALANCE SHEET

Parameters

MAR'14

(Rs. Cr.)

MAR'13

(Rs. Cr.)

MAR'12

(Rs. Cr.)

MAR'11

(Rs. Cr.)

MAR'10

(Rs. Cr.)

EQUITY AND LIABILITIES

Share Capital 795.32 790.18 781.84 773.81 381.82

Shareholder's Funds 26,262.0

2 22,287.85

18,791.8

9 15,953.27 14,064.38

Unsecured Loans 51.00 66.40 77.32 86.58 107.71

Deferred Tax Assets / Liabilities 1,296.96 1,203.72 872.72 801.85 785.01

Other Long Term Liabilities 5.09 1.79 15.52 20.82 0.00

Long Term Trade Payables 0.00 1.32 0.00 0.00 0.00

Long Term Provisions 110.00 125.62 107.12 93.82 0.00

Total Non-Current Liabilities 1,463.05 1,398.85 1,072.68 1,003.07 892.72

Trade Payables 1,987.59 1,668.98 1,424.84 1,395.31 3,392.39

Current Liabilities

Other Current Liabilities 3,631.88 3,528.62 3,371.27 3,067.77 122.03

Short Term Borrowings 0.14 0.00 1.77 1.94 0.00

Short Term Provisions 5,884.71 5,133.13 4,303.95 4,012.46 4,549.94

Total Current Liabilities 11,504.32

10,330.73 9,101.83 8,477.48 8,064.36

Total Liabilities 39,229.39

34,017.43 28,966.40

25,433.82 23,021.46

ASSETS

Less: Accumulated Depreciation 6,532.13 5,735.04 5,045.16 4,420.75 3,825.46

Net Block 12,012.74

11,209.34 9,099.19 8,345.11 8,142.40

Capital Work in Progress 2,272.94 1,472.80 2,269.26 1,322.60 1,008.99

Intangible assets under development

22.79 14.99 7.49 10.80 0.00

Non Current Investments 2,512.17 2,000.86 1,953.28 1,563.30 1,356.85

Long Term Loans & Advances 1,480.02 1,727.97 1,193.61 1,146.47 0.00

Total Non-Current Assets 18,300.6

6 16,425.96

14,522.8

3 12,388.28 10,508.24

Total Reserves 25,466.7

0 21,497.67

18,010.0

5 15,179.46 13,682.56

Current Assets Loans & Advances

Currents Investments 6,311.26 5,059.43 4,363.31 3,991.32 4,370.02

Inventories 7,359.54 6,600.20 5,637.83 5,269.17 4,549.07

Cash and Bank 3,289.37 3,615.00 2,818.93 2,243.24 1,126.28

Other Current Assets 269.69 216.36 136.89 93.26 649.01

Short Term Loans and Advances 1,533.51 937.14 500.59 563.45 945.49

Total Current Assets 20,928.73

17,591.47 14,443.57

13,045.54 12,513.22

Net Current Assets (Including Current Investments)

9,424.41 7,260.74 5,341.74 4,568.06 4,448.86

Total Current Assets Excluding

Current Investments

14,617.4

7 12,532.04

10,080.2

6 9,054.22 8,143.20

Total Assets 39,229.3

9 34,017.43

28,966.4

0 25,433.82 23,021.46

Contingent Liabilities 361.50 466.54 287.08 255.17 285.13

Total Debt 66.54 77.67 89.12 99.20 107.71

Book Value (in Rs.) 32.95 0.00 23.97 20.55 36.69

Adjusted Book Value (in Rs.) 32.95 0.00 23.97 20.55 18.35

ANNUAL REPORT

(Rs. in Crores)

PROFITS 2014 2013

a) Profit Before Tax 12659.11 10684.18

b) Tax Expense

- Current Tax 3791.13 2934.79

- Deferred Tax 82.77 331.00

c) Profit for the year 8785.21 7418.39

SURPLUS IN STATEMENT OF PROFIT AND LOSS

a) At the beginning of the year 3788.10 1972.59

b) Add : Profit for the year 8785.21 7418.39

c) Less:

- Transfer to General Reserve 880.00 750.00

- Proposed Dividend {Rs. 6.00(2013-Rs.

5.25) per share}

4771.91 4148.46

- Current Year 810.99 705.03

- Earlier year''s provision no longer required

(28.68) (0.61)

d) At the end of the year 6139.09 3788.10

DIVIDEND SUMMARY

For the year ending March 2013, ITC has declared an equity dividend of 525.00%

amounting to Rs 5.25 per share. At the current share price of Rs 355.65 these

results in a dividend yield of 1.48%. ITC had last declared a dividend of 525.00%

for the year ending March 2013.

DIVIDEND DECLARED

Announceme

nt

Effectiv

e

Dividen

d

Dividen

d

Remarks

Date Date Type (%)

23-05-14 3/6/2014

Final 600 Rs.6.0000 per share(600%)Dividend

17-05-13 31-05-

13

Final 525 Rs.5.2500 per

share(525%)Dividend

25-05-12 11-06-12

Final 450 -

20-05-11 10-06-11

Final 445 Recommended a Special Dividend of Rs. 1.65 per

Ordinary Share of Re. 1/- each and a Dividend of Rs. 2.80 per Ordinary Share of Re.1/- each.

21-05-10 9/6/2010

Final 1,000.00

Special Centenary dividend of Re. 5.50 per Ordinary Share of

Re 1/- each and a dividend of Re. 4.50 per Ordinary Share for the financial year ended March 31,

2010.

22-05-09 13-07-

09

Final 370 -

23-05-08 16-07-08

Final 350 -

25-05-07 16-07-

07

Final 310 AGM

26-05-06 10-07-06

Final 265 AGM

27-05-05 18-07-

05

Final 310 AGM

13-05-04 19-07-04

Final 200 AGM

8/5/2003 14-07-03

Final 150 -

14-05-02 12-07-

02

Final 135 AGM

BONUS SUMMARY The last bonus that ITC had announced was in 2010 in the ratio of 1:1.The share

has been quoting ex-bonus from August 3, 2010.

Bonus History

Announcement Date

Bonus Ratio

Record Date

Ex-Bonus Date

18-06-2010 1:01 4/8/2010 3/8/2010

17-06-2005 1:02 28-09-2005 21-09-2005

12-07-1994 1:01 06-10-1994 12-09-1994

30-09-1991 3:05 15-01-1992 12-12-1991

29-04-1989 1:01 - 31-08-1989

29-04-1980 1:05 - -

FUTURE PROSPECTS OF ITC

ITC has a tremendous growth prospectus in future. All business profiles except cigarettes, has a tremendous growth prospects in next two-three years down the

line. Earlier ITC is used to be treated as a cigarette company and always Budget is used to be very bad for cigarette. Because with a blind eye, one is going to say that excise duty is going to get increase on the cigarettes. Now the company has shifted

in their many other areas like retailing, paper, hotel, which are in fact contributing to a great extent. All their business profiles, minus cigarettes, has a tremendous

growth prospects in time to come, maybe in two-three years down the line. On top of it, they have huge cash inflow, which they can productively deploy in the other

areas.

NESTLE

HISTORY OF NESTLE INDIA

Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA of Switzerland.

The company has its headquarters at Gurgaon near Delhi and has seven factories spread all over India. It started its journey in India in 1912 by entering into the

dairy business. Nestlé India, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery

segments. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR,

KIT KAT, BAR–ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as

NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita. Nestle has created brands like Nestlé Milkmaid, Nestlé Everyday, Maggi

Noodles, Maggi Soups, Polo, Kit Kat, Nescafe & many more. As per the market–wise position Nestlé India stands first in instant noodles &

ketchups, second in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category.

Nestle India continuously focuses on understanding changing lifestyles in India. This helps it to foresee needs in its product offerings. The company innovates new

product & renovates existing one providing high quality, safe food products at affordable prices.

Milestones achieved

CNBC Awaaz Consumer Awards has honoured Nescafe as the most

preferred coffee brand.

Business India has rated Nestlé India as No.1 on Return On Capital

Employed amongst Super 100 companies.

In 2006–2007 Nestlé India was awarded the ‘Best Exporter of Instant

Coffee’, ‘Highest Exporter to Russia and CIS”, ‘Highest Exporter to Far

East Countries’.

In 2009 Nestle India Board approved Proposal To acquire Healthcare

Nutrition Business of Specialist Foods.

In 2010 Nestlé Inaugurates New Culinary Plant at Nanjangud.

2010–12 CNBC Awaaz Consumer Awards Business India has rated Nestle

India as No.1 on Return on Capital Employed amongst Super 100

companies.

The company has introduced products in milk segment for daily consumption and use such as Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and

Nestle Jeera Raita.

CORPORATE INFORMATION

NAME DESIGNATION

Mr. Antonio Helio Waszyk Chairman and Non-Executive Director

Mr. Etinne Benet Managing Director

Mr. Shobinder Duggal Director-Finance & control and CFO

Mr. Aristides Protonotarios Director - Technical

Mr. Michael W.O. Garrett Non-Executive and Independent Director

Mr. R. V. Kanoria Non-Executive and Independent Director

Mr. Ashok Kumar Mahindra Non-Executive and Independent Director

Mr. Ravinder Narain Non-Executive and Independent Director

Dr. Swati A. Piramal Non-Executive and Independent Director

PRODUCTS OF NESTLE INDIA

1) MILK PRODUCTS AND NUTRITION

2) BEVERAGES

3) PREPARED DISHES AND COOKING AIDS

4) CHOCOLATES AND CONFECTIONERY

NESTLE’S SHAREHOLDING PATTERN

PromotersIndividuals

Institutions

FII

Govt.Others

Shareholdings

SHARE HOLDING PATTERN (% of Shares Held)

CATEGORY OF SHAREHOLDER

Total Number of Shares

Percentage Share Holding (%)

Foreign Promoter 6,05,15,079 62.76

Total Promoter 6,05,15,079 62.76

Non Promoter

Institutions

Mutual Funds / UTI 4,97,791 0.52

FI/Bank/Insurance 43,29,328 4.49

Govt 39,045 0.04

FII 1,40,03,998 14.52

Other 0 0.00

Total Institutions 1,88,70,162 19.57

Non-Institution

Bodies Corporate 22,06,799 2.29

Individuals (upto Rs. 1 lakh) 93,66,576 9.71

Individuals (in excess of Rs. 1 lakh)

49,41,841 5.13

NRIs/OCBs 5,03,030 0.52

Others 1,43,20,646 14.85

Total Non-Institution 1,70,30,475 17.66

Total Non Promoter 3,59,00,637 37.24

Total 9,64,15,716 100.00

FINANCIAL RESULTS

BALANCE SHEET

Parameters DEC'13 DEC'12 DEC'11 DEC'10 DEC'09

(Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.)

EQUITY AND

LIABILITIES

Share Capital 96.42 96.42 96.42 96.42 96.42

Shareholder's Funds 2,368.75 1,798.41 1,273.96 855.41 581.27

Unsecured Loans 1,189.48 1,049.95 724.95 0 0

Deferred Tax Assets /

Liabilities 215.47 162.08 50.22 33.27 32

Long Term Provisions 1,193.39 1,014.75 885.13 0 0

Total Non-Current

Liabilities 2,598.34 2,226.78 1,660.30 33.27 32

Trade Payables 633.04 539.4 480.83 745.44 581.73

Current Liabilities

Other Current Liabilities 500.25 558.03 528.7 16.23 5.86

Short Term Borrowings 0.01 0.24 245.92 0 0

Short Term Provisions 213.88 41.06 212.07 907.94 834.79

Total Current Liabilities 1,347.18 1,138.73 1,467.52 1,669.61 1,422.38

Total Liabilities 6,314.27 5,163.92 4,401.78 2,558.29 2,035.65

ASSETS

Gross Block 4,903.16 4,427.56 2,552.21 1,854.70 1,640.79

Less: Accumulated

Depreciation 1,523.91 1,216.44 976.46 841.96 744.59

Less: Impairment of Assets 9.94 6.85 0 0 0

Net Block 3,369.31 3,204.27 1,575.75 1,012.74 896.2

Capital Work in Progress 294.71 344.08 1,371.78 348.91 79.63

Non Current Investments 224.12 0 0 0 0

Long Term Loans & Advances 123.94 125.45 163.91 0 0

Total Non-Current Assets 4,012.55 3,673.80 3,111.44 1,361.65 975.83

Total Reserves 2,272.33 1,701.99 1,177.54 759 484.85

Current Assets Loans &

Advances

Currents Investments 626.96 364.86 134.37 150.68 203.26

Inventories 735.93 745.58 734.04 575.95 498.74

Cash and Bank 749.36 236.96 227.21 255.29 155.59

Other Current Assets 10.06 5.18 19.48 0 0

Short Term Loans and 95.14 49.97 59.82 151.44 138.05

Advances

Total Current Assets 2,301.72 1,490.12 1,290.34 1,196.65 1,059.81

Net Current Assets (Including

Current Investments) 954.54 351.39 -177.18 -472.96 -362.57

Total Current Assets

Excluding Current Investments 1,674.76 1,125.26 1,155.97 1,045.97 856.56

Total Assets 6,314.27 5,163.92 4,401.78 2,558.29 2,035.65

Contingent Liabilities 12.76 11.7 0 0 0

Total Debt 1,189.49 1,050.19 970.87 0 0

Book Value (in Rs.) 0 0 132.13 88.72 60.29

Adjusted Book Value (in Rs.) 245.67 0 132.13 88.72 60.29

ANNUAL REPORT

(Rs. in Millions)

2013 2012

Net Sales 90,619.0 83,022.6

Add: Other Operating Income 391.5 322.7

Less: Operating Expenses 74,114.3 67,536.5

Less: Impairment loss on fixed assets 99.4 68.5

Less: Net provision for contingencies from operations)

413.1 339.9

Profit from operations 16,383.7 15,400.4

Add: Other Income 830.9 310.3

Less: Finance costs 365.1 266.0

Less/Add: Net provision for contingencies - others

207.4 (81.5)

Profit before exceptional items and taxation

16,642.1 15,526.2

Add: Exceptional items 138.1 -

Less: Tax Expense 5,608.9 4,846.9

Net Profit after tax 11,171.3 10,679.3

Add: Profit Brought Forward 10,745.5 6,568.9

Less: Interim Dividends 3,471.0 4,676.2

Less: Final Dividend Proposed 1,205.2 -

Less: Dividend Distribution Tax 794.7 758.6

Less: Transfer to General Reserve 1,117.1 1,067.9

Earnings per Share (Rs.) 115.87 110.76

Dividend per Share (Rs.) 48.50 48.50

DIVIDEND SUMMARY

For the year ending December 2013, Nestle India has declared an equity dividend of 485.00% amounting to Rs 48.5 per share. At the current share price of Rs

6517.15 these results in a dividend yield of 0.74%.

The company has a good dividend track report and has consistently declared dividends for the last 5 years.

Dividend Declared

Announceme

nt

Effectiv

e

Dividen

d

Dividen

d

Remarks

Date Date Type (%)

3/9/2014 15-09-14

Interim 300 Rs.30.0000 per share (300%) Second Interim Dividend

14-02-14 15-05-

14

Final 125 Rs.12.5000 per share(125%)Final

Dividend

26-04-14 15-05-14

Interim 125 Rs.12.5000 per share(125%)Interim Dividend

18-10-13 01-11-13

Interim 180 Rs.18.0000 per share(180%)Second Interim Dividend

8/7/2013 31-07-

13

Interim 180 Rs.18.0000 per share(180%)Interim

Dividend

15-02-13 25-02-

13

Interim 125 Rs.12.5000 per share(125%)Third

Interim Dividend

07-12-12 12-12-12

Interim 180 Rs.18.0000 per share (180%) Second Interim Dividend

17-07-12 1/8/201

2

Interim 180 Rs.18.00 per share(180%)Interim

Dividend

14-02-12 21-03-12

Final 125 -

24-11-11 12-12-11

Interim 270 Second Interim Dividend

18-02-11 21-04-11

Final 215 Declared an interim dividend of Rs. 9.00 per Equity Share for the year

2011, which shall be paid on and from May 06, 2011 along with Final

Dividend for 2010 of Rs. 12.50 per Equity Share.

19-10-10 03-11-

10

Interim 270 Second Interim Dividend

19-02-10 23-04-10

Final 215 Final Dividend Rs. 12.50 (125%) per share + Interim Dividend of Rs. 9/-

(90%) per share.

15-10-09 04-11-09

Interim 270 Second Interim Dividend

9/3/2009 29-04-

09

Final 210 210% Dividend (120% Final Div. &

90% Interim Div.) & A.G.M.

31-10-08 14-11-08

Interim 220 (2nd Int.Div.145% & Special Div.under Sch. of Arrangement 75%)

4/3/2008 23-04-08

Final 110 Total Dividend is Rs. 11 i.e Final Dividend for 2007 Rs. 2.50 & Interim Dividend for the year 2008 Rs. 8.50.

26-11-07 13-12-07

Interim 240 Second Interim Dividend

5/3/2007 20-03-

07

Interim 80 (15% Third Interim Dividend for the

year 2006 + 65% Interim Dividend for the year 2007) The Board has not

recommended any final dividend for 2006.

21-11-06 08-12-

06

Interim 180 Second Interim Dividend

7/3/2006 19-04-06

Final 80 AGM {interim dividend of Rs. 6/- for F.Y 2006-2007 + Rs.2/- as Final

Dividend for the year 2005.)

18-11-05 09-12-05

Interim 180 Second Interim Dividend

14-03-05 20-04-

05

Final 95 AGM & Dividend 95% (Interim

Dividend for 2005 of Rs 5/- per equity share and the Special Dividend

for 2004 of Rs 4.50 per equity share)

23-11-04 10-12- Interim 100 Second Interim Dividend

04

29-06-04 20-07-04

Interim 100 Interim Dividend

10-11-03 10-12-03

Interim 100 Second Interim Dividend

8/7/2003 5/8/200

3

Interim 100 -

BONUS SUMMARY

The last bonus that Nestle India had announced was in 1996 in the ratio of 1:2.The

share has been quoting ex-bonus from July 15, 1996.

Bonus History (Nestle India)

Announcement

Date

Bonus

Ratio

Record

Date

Ex-Bonus

Date

23-04-1996 1:02 13-08-1996 15-07-1996

30-09-1993 1:04 16-10-1993 10-09-1993

18-07-1989 3:05 - 09-10-1989

18-07-1986 1:01 - -

18-07-1983 3:05

FUTURE PROSPECTS OF NESTLE INDIA

Nestle is focused on product expansion and improvement of distribution efficiency.

The Dairy business is being expanded and is expected to drive growth in the long

run, although short-term profitability may be impacted in the investment stage. The

company’s entry into the mineral water segment is a concern, as the segment is

already overcrowded and the company faces stiff competition especially from the

Cola manufacturers. Acquisition of an established brand could catapult Nestlé’s

position in the segment. In categories like beverages, culinary products and

chocolate confectionery, the company is looking at driving growth through launch

of smaller SKU’s, thus enabling affordability to a wide section of the population.

CONCLUSION

This sector will continue to see growth as it depends on an ever-increasing internal

market for consumption, and demand for these goods remains more or less constant, irrespective of recession or inflation. Hence this sector will grow, though

it may not be a smooth growth path, due to the present world-wide economic slowdown, rising inflation and fall of the rupee. This sector will see good growth in the long run and hiring will continue to remain robust.

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer

packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish,

packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high

return. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and

is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost.

Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to

treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste,

skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to

branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed

and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.