Sector Reviews

Consumer Products

Business Domain

The Consumer Products Sector markets world-renowned brands with a diverse portfolio of products, including sole distributorship for Proctor & Gamble, Philips Lighting, Fujifilm and Blue Cross Pharmaceuticals.

Key Performance Indicators

Indicator	Measure	Unit	FYE 31st March
			2013	2012	2011
Growth	Revenue	Rs. mn	4,509	4,285	3,760
	Earnings Before Interest and Tax	Rs. mn	267	269	247
	Profit After Tax	Rs. mn	112	145	156
	Assets	Rs. mn	1,793	1,383	1,115
	Capital Employed	Rs. mn	1,134	747	503
Profitability	Return on Average Capital Employed*	%	20	28	45
Liquidity	Current Ratio	Times	1.25	1.28	1.28
Stability	Gearing	%	69	61	59
Asset utilisation	Asset Turnover Ratio	Times	2.28	3.06	3.37
Productivity	Ebit per Employee	Rs. mn	1.33	1.41	1.206

* Excluding Real Estate
Includes only continuing operations

Operations

The overall business environment during the year was characterised by exchange rate volatility, higher interest rates and lower consumer spending. Nevertheless, the sector performed well, with a focus on baby care, personal care and homecare markets. We also worked on aggressively growing our businesses in healthcare, lighting and imaging solutions that comprise world class brands.

A key activity was the restructuring of the Sector to give more focused attention to the lighting business by incorporating the unit under Hayleys Electronics Lighting Ltd. Other key events and achievements include the launching of P&G ‘Whisper Choice’, ‘Olay Natural White’ and ‘Ambipur’ air fresheners. Our healthcare business received exclusive distributorship for ‘Bayer’ diabetic care glucometers, ‘3M’ first aid dressings and Splash wet wipes. We also launched ‘Cron’ pre-press plate setter machines under our information and imaging business.

Strategies in Action

We exited from the stationary business, which failed to deliver the anticipated results. The management was of the view that the resources engaged could be better deployed in a much more profitable manner elsewhere.

The sector is also focusing on developing or acquiring brands in categories with future growth potential.

In the lighting activity the main thrust during the year would be to provide state of the art lighting solutions to clients. Our concentration would be on the emerging high potential segments with dedicated resources. Plans are already in place to launch new innovative lighting solutions from ‘Philips’ and it’s newly acquired companies which are concentrating on LED’s and building management systems.

In distributing principals’ brands, the Company is conscious and mindful of considering only world class products in their respective categories. This would enable us to offer high-end experience and lifestyle to the discerning consumer.

During the year the Company successfully conducted outward bound training and long service award ceremony for the staff and will continuously focus on developing, building and rewarding human capital

Outlook

Overall, we expect business growth arising from higher disposable incomes and improved geographical distribution of income, growth in tourism, improved Rupee stability and off-shore capital raising to better manage interest rates.