Company: GILLETTE INDIA LTD.

Industry: FMCG – Personal Care

Competitors: Colgate Palmolive (India) Ltd., Hindustan Unilever, Godrej
Consumer Products, Marico Ltd., Dabur India Ltd.
Key Personnel: Mr. Shantanu Khosla (Managing Director)
Mr. Deepak Jagdish Acharya (Company Secretary & Compliance Office)
Company Profile
Company was incorporated on 9 February, 1984 at Rajasthan. House of Poddar Enterprises (HOPE)
th

and Gillette Company, USA (Gillette), promoted it. Gillette India Limited (GIL) is one of India's well-
known FMCG Companies that has in its portfolio GILLETTE MACH 3 TURBO, ORAL-B and
DURACELL - world's leading brands and has carved a reputation for delivering high quality, value-
added products to meet the needs of consumers.
SHAREHOLDING PATTERN

SHARES
INFORMATION
High/Low latest 12
months* 1667/766.75
Resistance Level
(R1/R2) 1582.44/1617.12
Support Level
(S1/S2) 1512.54/1477.32
Number of Shares 3,25,85,217
Market Value (Cr) 5,021
Free Float 11.27%
Avg. Monthly
Volume 5947.68
NSE GILLETTE
BSE 507815
INDUSTRY OVERVIEW
The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion.
Well-established distribution networks, as well as intense competition between the organised and
unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive
MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to
US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of
the Indian population are the most promising market for FMCG, and give brand makers the opportunity
to convert them to branded products. Most of the product categories like jams, toothpaste, skin care,
shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the
potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization,
increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According to the
study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by
Indian companies. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG.
Between them, they account for 35 of the top 100 brands.
FINANCIALS
Rs. in Cr. FY09 Q3FY10
Net Sales 673.1 221.81
Turnover
Other Income 36.86 7.61
Total Income 709.96 229.42
Total Expenses 521.55 160.96
EBITDA 188.41 68.46
Depreciation 11.37 3.03
EBIT 177.04 65.43
Interest 0.03 0
PBT 177.01 65.43
Tax 63.88 22.73
Net Profit 113.13 42.7

Fundamental Commentary
• The company’s net profit increased 50% to Rs 43 crore for Q3FY10 against Rs 28 crore in
the same quarter last fiscal.

• Net sales rose 29% to Rs 222 crore (Rs 172 crore) during the quarter. The company
surpassed its entire previous year net profit of Rs 113 crore during first nine months of current
fiscal. The company has reported Rs 118 crore net profit for nine-months ended March 2010.
• The growth was led by Gillette and Oral B brands. The Gillette brand grew double
digits behind a successful re-launch of Mach 3 and Disposable razors. Oral B also delivered strong
results with growth across the three tiers and distribution expansion.
TECHNICAL ANALYSIS

Technical Commentary:
• Despite of the economic slowdown, Gillette India has managed to outperform the
sector and is trading well above 200-DMA and 200-EMA levels.
• The chart above depicts the continuous uptrend in the stock prices of the company
giving 110.52% return in past one year.
• Free-float holding in the company stands at 11.27% making the share price to perform
mainly on its valuations, which stands intact.
STOCK PERFORMANCE
Gillette India Ltd. Vs. BSE FMCG Vs. BSE Sensex

• The FMCG sector has outperformed sensex and has given almost double the returns
where FMCG yearly returns stands at 28.75% and sensex yearly returns stands at 14.87%.
• Gillette India Ltd. has given astonishing yearly returns of 110.52% which stands
approximately four times BSE FMCG yearly returns.
Gillette India Ltd. Vs.Competitors

• Gillette India Ltd. has given handsome yearly returns of 110.52% as compared to the
peer companies i.e Hindustan Unilever Ltd. and Colgate Palmolive India Ltd.
%
COMPANY Gain
HUL 3.38
COLGATE 54.65
GILLETTE 110.52

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