OPERATIONAL

EFFICIENCIES:
 JYOTHY LABORATORIES LIMITED (JLL)

• Started in 1983 and was started by M.P. Ramachandran - the current

Chairman & Managing Director.

• It started as a proprietary concern, manufacturing and selling a single

product in a single district.

• The company has the distinction of making a mark in the virtually

non-existent category of liquid fabric whitener.

• From starting operations with a corpus of INR 5,000 (in 1983) to a

company with a turnover of over INR 1,500 crores, JLL has come a
long way.

• Today, it has a pan Indian presence with multi-brand, multi-product

catering to the needs of consumers across the length and breadth of
the nation. It has 28 manufacturing facilities in 16 locations across
the country.
 JLL - Leadership

Mr. RAMACHANDRAN Ms. JYOTHY Mr. ULLAS KAMATH Mr. NILESH MEHTA
CHAIRMAN & CMO & DIRECTOR JOINT MANAGING DIRECTOR INDEPENDENT DIRECTOR
MANAGING DIRECTOR
 SUBSIDIARIES

Jyothy Consumer Snoways Launderers

Four Seasons Dry-
Products Marketting and Dry-cleaners Pvt.
cleaning Private Ltd.
Ltd. Ltd.

Jyothy Kallol Jyothy Fabricare

Bangladesh Ltd. Services Ltd.
 OPERATIONAL EFFICIENCIES OF JYOTHY LAB
• CONNECTED PROCESS – 1) Reduces product development time by more than 50 percent

2)Achieved a 50 percent cost savings in design

3)Improved productivity by 35 percent

4)Improved quality and reduced errors by 75 percent

• Continuous focus - In areas of production compliance, capacity utilisation and operational efficiency.

Example : Underutilised, inefficient bottle units were closed, and entire volumes were met through 3 units.

Absolute conversion costs reduced by 6% despite a 15% increase in wages.

Exo volumes increased by 20%. This was driven by a 3% drop in conversion costs at our own units due to a
15% higher capacity utilisation
 OPERATIONAL EFFICIENCIES OF JYOTHY LAB

• Lean Engineering - At Roorkee facility covering the Ujala product lines, this has
already resulted in 25% reduction in manpower on Ujala line and has the potential to
increase to 35% after these projects are implemented

• Proper capacity utilisation - 3% drop in conversion costs at their own units due to a
15% higher capacity

• Innovation Driven, continuous improvement and less manual errors

• Superior Execution and Ensured employees are entrepreneurial, innovative, dynamic

and driven by a strong sense of ownership. As their performance is reflected in the
ability to counter market dynamics with agility.
OPERATIONAL EFFICIENCIES OF JYOTHY LAB

• Aggressive focus on cost containment, process improvement, value engineering

and portfolio reorientation allowed them to rein in the fall in gross.

• Continuous Cost Focus

• QA – Quality Assurance software to be deployed across plants which will enable

data analysis on online quality checks, supplier performance monitoring and
tracking quality metrics.

• SAP HANA implemented. Operations are GST compliant already.

 HENKEL INDIA

• Henkel India is a joint venture between

Germany's Henkel & Co. and Spic Group's
Tamil Nadu Petro Products, with the German
firm holding 51 per cent stake.

• Established in 1987 is a subsidiary of Henkel

AG & Co. KGaA, Germany.

• Headquartered at Chennai in India

• Operates in business areas of Laundry, Home

Care, Cosmetics, Toiletries and Hair Care.
 OPERATIONAL EFFICIENCIES OF JYOTHY-HENKEL

• Quick, more standardized and more digital Process – Classification of Product areas
Inward bulk, QC, Returns Bay , WID Shelfing.

• More efficiency by sourcing via various hubs -EDI

• Best Supply chain practice and improving production and logistic process by rolling
out demand sensing. PPD -Technique

• Following Test and Learn mindset and technique

• Better Utilize of manufacturing plants by implementing predictive maintenance

• Continuous digital training and developmental programs

 ACQUISITION

• Jyothy Laboratories Ltd. (JLL) further acquired Henkel AG and Co.

KGA's 50.97% stake in its Indian unit for INR 142.9 crores.

• This strategic bid was strengthen its brand portfolio in Urban and Rural
India.

• The acquisition helped JLL to ramp up its share in the fast-growing

detergents market, dominated by deep-pocket multinational
giants Hindustan Unilever (HUL) and Procter & Gamble (P&G).

• It also helped JLL to strengthen their urban distribution network as Henkel

has a strong presence in modern retail formats while JL still remains strong
in the rural areas.
BENEFITS OF ACQUISITION

• Diversified Product Portfolio

• Branding and Manufacturing Synergies- Common Presence
• Stronger Distribution Network
• Management Abilities
• Taxation
• Raw material synergies
• Combined Office, Operational cost cutting
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