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Emami Final Word Assignment

Emami Final Word Assignment

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Published by: pankaj_su2007 on Nov 17, 2010
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03/26/2011

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Emami Ltd, the flagship company of the Rs 2000 crore Emami Group, is a leading player in the personal and healthcare consumer products industry in India. A jewel in the crown of theconglomerate, the company is a coveted Rs 700 crore business entity engaged in manufactureand marketing of health, beauty and personal care products that are based entirely on ayurvedicformulation.Established by Mr. R S Agarwal and Mr. R S Goenka in 1974, Emami Limited has over 25 brands under its portfolio. The focus is on providing the consumers with innovative productswhich are capable of meeting their multiple needs and add value by enhancing the quality of life.Through innovative and power brands Emami touches the lives of all consumers, spanningacross various income groups in both urban and rural India. Emami’s success story is not onlyweaved around the holistic healing system of ayurveda, but also in its product innovation,dynamic and focused leadership, a strong supply-chain management and unwaveringcommitment to partners and stakeholders.The company’s financials show it has repeatedly outperformed the industry standards. EmamiLtd has maintained a CAGR of 25% over the last three years compared to the industry average of 16-17%.Understanding the human needs and fulfilling them by dint of technical research is a positive feature of Emami. This is being made possible by
Himani Ayurveda ScienceFoundation (HASF)
that generates the very best of ayurvedic formulations. The foundation’sunique range of healthcare products aptly caters to consumer needs. The world class qualitycontrol methods and processes maintained by
HASF
ensure optimum utility of each ingredient.The foundation is completely engaged in constant innovation and pharmaceuticalenhancements.
Boroplus
brand is the market leader in the antiseptic cream segment; the
Navratna Oil
is also in the pole position in the cool oil segment.
Fair and Handsome
is the pioneer in the fairness cream for men segment. Emami’s products in different categories likecool oil, antiseptic cream, fairness cream for men, and the crème herbal hair pack have carved aniche for themselves in their respective segments.
Boroplus
has been selected as among the top100 brands by the
Brand Equity
of 
The Economic Times
. In 2006 and 2007
, Navratna
has been ranked the 6th Most Energized Indian Brand by the DY&R Brand Asset Valuator.
Sona Chandi Chyawanprash, Himani Fast Relief 
, (ayurvedic pain relief ointment)
Menthoplus
(pain balm),
Hairlife
(crème herbal hair pack 
) and Emami Malai Kesar (
cold cream
)
arealso major players in their respective categories. Brand extensions have helped Emamiconsolidate its position in the market and also cater to varied consumer needs.Emami hasrecently entered the glycerine soap category with
Emami Pure Skin
and petroleum jellycategory with
Emami Vasocare.
Emami has successfully established its brands through strongcelebrity endorsements. It is the only corporate entity in the country to have both AmitabhBachchan and Shah Rukh Khan as brand endorsers for the same brand, Navratna.The concept of brand endorsement by celebrities has been successfully experimented in case of 25 brand launches. Besides Amitabh and Shah Rukh, other celebrity endorsers of Emami’s brand
 
include Madhuri Dixit, Kareena Kapoor, Govinda, Sourav Ganguly, Chiranjeevi, Surya andUpendra among others.Emami has also taken up a major revamping project to enhance the sales and distribution, humanresources development and logistics with the globally renowned professional advisory servicesfirm, Ernst and Young. ‘Project Navodaya’, as it is truly called, will help Emami fast track itstopline and bottom-line growth and build a robust platform for growth initiativesEmami covers all the states with 28 depots across India. Its supply-chain management assumesimmense significance which was aptly reflected through remarkable expansion in dealer-distribution network, outlets and manpower. The domestic sales and distribution division directlycovers 4,00,000 outlets all across the country along with an additional 2100 modern retailoutlets. Emami’s products reach out to nearly 30 lakh retail outlets across India through 4,000distributors.The company has ultra modern manufacturing facilities all across India including Kolkata (WestBengal), Guwahati (Assam), Pondicherry, Uttaranchal and Baddi (Himachal Pradesh). It hasadopted the Total Quality Management system and all its manufacturing facilities have receivedcGMP and ISO 9001:2000 certifications.Recently Emami Limited with an investment of Rs 700 crore has acquired major stake in ZanduPharmaceuticals Works Ltd on the basis of huge business synergy between Zandu andEmami. Emami Ltd has recently been conferred the Most Enterprising Company of the Year byIIPM (Indian Institute of Planning and Management) and The Sunday Indian publication of thePlanman Media Group. In 2007, the company received the Institute of Cost and WorksAccountants of India (ICWAI) Award for Excellence in Cost Management. In East India Emamioccupies leadership in sectors such as paper and newsprint, private hospital, edible oil, bio-dieseland real estate. Emami also has presence in ball pen tips manufacturing, contemporary art andretail chain with Frank Ross and Starmark. Emami has also signed a MoU for a cement plant inChattisgarh.
 
 
 The inception of Emami Group took place way back in mid seventies whentwo childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their highprofile jobs with the Birla Group to set up Kemco Chemicals, an Ayurvedicmedicine and cosmetic manufacturing unit in Kolkata in 1974.It was an extremely bold step in the early seventies when the Indian FMCGmarket was still dominated by multinationals. Several such companiesheadquartered in Kolkata were considering shifting out of West Bengal dueto labor unrest and political problems.But against all odds with a vision of combining the age old wisdom of Ayurveda with modern manufacturing techniques for creating winningbrands the company was started with a meager amount of Rs. 20,000.A dream of reaching out to the Indian middle class; a target audience whomthey thought will have increasing potential for consumption, the companystarted manufacturing cosmetic products as well as Ayurvedic medicinesunder the brand name of Emami from a small factory in Kolkata.In the early days the two friends used to go around places and sell theircosmetics from shop to shop. They piled their goods on hand pulledrickshaws and went on distribution drives making their brand extremelypopular, available and acceptable among consumers. The first-rate quality of the products soon created a consumer pull andgradually some people were hired to work for them. A chain of distributorswas established and the sale of Emami products spread from West Bengal torest of Eastern India and gradually to other states.Emami Talcum, Emami Vanishing Cream and Emami Cold Cream were greatfavorite brands with the quality conscious consumers in the mid-seventies. The company soon became adept in selling beautiful dreams to Indian

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