CORPORATE PRESENTATION

October 2017

(2017-18)
Disclaimer

This Investor Presentation has been prepared by JHS SVENDGAARD LABORATORIES LIMITED (JHS LL) for investors,
solely for informational purposes. The information contained herein has been prepared to assist prospective investors in
making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a
prospective or existing investor may desire. In all cases, interested parties should conduct their own investigation and
analysis of the Company and the data set forth in this information. JHS LL makes no representation or warranty as to the
accuracy or completeness of this information and shall not have any liability for any representations (expressed or
implied) regarding information contained in, or for any omissions from, this information or any other written or oral
communications transmitted to the recipient in the course of its evaluation of the Company.
This Information includes certain statements and estimates provided by the Company with respect to the projected future
performance of the Company. Such statements, estimates and projections reflect various assumptions by management
concerning possible anticipated results, which assumptions may or may not be correct. No representations are made as
to the accuracy of such statements, estimates or projections. Prospective investors will be expected to have conducted
their own due diligence investigation regarding these and all other matters pertinent to investment in the Company. This
presentation may contain statements that are not historical facts, referred to as “forward looking statements.” JHS LL
undertakes no obligation to revise any such forward-looking statements to reflect any changes in JHS SBL‟s expectations
with regard thereto or any change in circumstances or events after the date hereof.
 TABLE OF CONTENTS
PHASE 1 PHASE 2
•Board of Directors •Financial Summary
•Key Milestones •Industry Overview
•Vision and Mission •Perpetual Mapping- Toothpaste
•Structural Overview •Current Offerings- Competition
•Uniqueness and Sustainable Advantage •Need of the Hour
•JHS – Current Capability: Tooth Brush •Aquawhite
•JHS – Current Capability: Tooth Brush •Current Portfolio
•Ongoing expansion •Upcoming Range
 The Board
The Board of Directors

Mr. Nikhil Nanda, is a first Mr. P. Vanamali is retired

generation entrepreneur with resident commissioner,
over 25 years of experience Government of West Bengal.
in oral care industry. He has He has also worked with
been instrumental in growing Government Of India in
the company and widening various administrative
its international presence. positions for 30 years

Mr. Nikhil Vohra is the

founder and CEO of Sixth
Mr. Chhotu Ram Sharma
Sense Ventures; India‟s
manages his own financial
consumer centric venture
consultancy company after
fund. Nikhil Vohra has been
having served as a senior
invited by various leading
advisor to MD/CEO of
consumer brands for
Centurion Bank (2005-2008)
upcoming strategic road
maps.
Nabil Ayouch
Ms. Manisha Lal Gupta
started her career with an Mr. Pathak possesses with
eight year stint at Unilever in wide ranging sectorial
India and then at Colgate experience and knowledge of
Palmolive looking after their finance having been
marketing department. After associated with several
18 years in corporate sector, reputed institution.
Manisha turned into
entrepreneur with her startup
venture IndiaArtCollectors.com

JHS SVENDGAARD | OCTOBER 2017 Slide 5

 Key Milestones
Past, Present & Future

Two more proprietary JHS achieved the optimum capacity

Founded as a concerns were added Successfully utilization and started investing into
proprietary firm, with a facility for incorporated the Own home additional manufacturing capacity for
brand
established for the manufacturing largest toothbrush ‘aquawhite’ Toothpaste.
manufacturing of toothpaste, tooth & manufacturing was launched Proposed Capacity Expansion:
toothbrushes gum gel, mouthwash, capacity at Kala-amb Toothpaste – 90 Mn to 175 Mn
denture tablet.
Toothbrush – 150 Mn to 250 Mn

Past Future
1994 2001 2004 2006 2008 2010 2013 2016 2017

JHS established tie ups with Oral Care

Crossed 1 Billion INR after
Toothpaste JHS Svendgaard got majors, P&G (Oral-B), Colgate, Dabur.
listed on 21st October strengthening ties with Patanjali
manufacturing facility Also, diversified in Hygiene care by
2006. by starting ‘Dantkanti’ toothpaste
incorporated in Delhi initiating detergent powder (Tide) for
along with toothbrushes.
P&G

JHS SVENDGAARD | OCTOBER 2017 Slide 6

 Vision & Mission
JHS Svendgaard will respond with speed and sensitivity to the great Indian consumption boom, not only as an anonymous back-end for some of the most visible
Indian brands but as a proud visible player ,capturing the attractive upside of the Indian consumption journey. ~ Nikhil Nanda (Managing Director)

Vision- First name of Oral Hygiene Mission –Enable Healthy Smile & Healthy Life

Vision Mission
• Constantly driving innovations in our products
Our vision is to be the first name of Oral Hygiene with • Committed to customer delight by combining
the help of our innovation in alignment to the changing affordable pricing
needs and consumer-focused commitment.
• Increasing awareness for oral hygiene through
products, services and media campaigns

JHS SVENDGAARD | OCTOBER 2017 Slide 7

 The JHS Svendgaard Group
An Overview – Structure

Mechanical and
BRANDS Warehouse
LIMITED Pvt. ltd.

RETAIL
VENTURES
Pvt. Ltd.

JHS SVENDGAARD | OCTOBER 2017 Slide 8

 The Preferred Partner
Current Scope

JHS SVENDGAARD | OCTOBER 2017 SLIDE 9

 UNIQUENESS AND SUSTAINED ADVANTAGE
Why is JHS a preferred outsourcing partner?

Technical Tax
Experience Quality Listed
Expertise Benefit

The company possess a Manufacturing in Kala- Toothpaste unit continue State of the Art facility The only company among
rich, 21-year experience Amb, HP - only unit in the to have the tax benefits and experience of its peer group listed on
in manufacturing world to manufacture under the new GST policy. working with MNC’s BSE & NSE ensuring
toothpastes and toothpaste and Earlier the units had 100% ensures insight to the highest level of corporate
toothbrushes for more toothbrushes, excise holiday and international standards of governance &
than 25 reputed FMCG mouthwashes in the same
brands Globally and in subsidized sales tax production meeting all transparency.
premises, reconciling benefits for 10 years till international QA
India
completely different FY 2020. parameters.
manufacturing
competencies
JHS SVENDGAARD | OCTOBER 2017 Slide 10
 Manufacturing Capacity
The company’s annual extended manufacturing capacity is…

Toothbrush Toothpaste Mouthwash

250 million pieces 175 million tubes 18 million bottles

JHS SVENDGAARD | OCTOBER 2017 Slide 11

CONTRACT MANUFACTURING
CONTRACT MANUFACTURING
- -Gaining
Gaininginsights
insightsand
andexperience!
experience!

• Reduces manufacturing costs

• Attracts talent on the strength of the brand
• Provides insight into the initiatives of the big brands to
remain relevant in the market
• Allows basic cash flow to keep the The large setup
Sky occupied
is the Limit
and running
• Products from
At vero eosexperienced
et accusamus manufacturer of oral care ducimus, qui blanditiis praesentium voluptatum
et iusto odio dignissimos
products across thedeleniti
category from
atque mass to
corrupti, popular
quos toet quas molestias excepturi sint
dolores
premium.

JHS SVENDGAARD | OCTOBER 2017 SLIDE 12

 Financial Performance

2013-2017

JHS SVENDGAARD | OCTOBER 2017 SLIDE 13

 Financial Performance
Profit & Loss Account Mar 17 Mar-16 Mar-15 Mar-14 Mar-13 Balance Sheet Mar 17 Mar-16 Mar-15 Mar-14 Mar-13

Total Revenue 107.44 100.82 56.18 39.09 60.08 Equity Share Capital 44.12 37.64 24.1 24.1 24.1
Total Expenses 102.25 104.5 71.65 67.9 68.56 Reserves and Surplus 86.05 57.47 77.74 20.76 49.56
Profit/Loss Before Exceptional,
5.19 -3.68 -15.47 -28.81 -8.47
Money Received Against
Extra Ordinary Items And Tax
4.62 5.89 0.00 0.00 0.00
Share Warrants
Exceptional Items 0.00 -4.47 -6.53 -6.47 0.00 Total Current Liabilities 19.58 18.25 48.8 113.67 115.2
Profit/Loss Before Tax 5.19 -8.15 -22 -35.28 -8.47 Total Capital And Liabilities 155.62 121.31 152.06 172.15 215.59
Total Tax Expenses -16.8 0.00 0.04 -6.49 4.07
Profit/Loss After Tax And Before Fixed Assets 65.71 65.74 107.88 120.82 135.21
21.98 -8.15 -22.05 -28.79 -12.54
Extra Ordinary Items
Total Non-Current Assets 115.33 85.65 127.62 142.99 168.22
Extraordinary Items 0.00 -13.47 0.00 0.00 8.38
Total Current Assets 40.3 35.65 24.44 29.16 47.37
Profit/Loss For The Period 21.98 -21.63 -22.14 -28.8 -4.21
Total Assets 155.62 121.31 152.06 172.15 215.59
Basic EPS (Rs.) 5.46 -8.42 -9.19 -11.95 -5.22
Diluted EPS (Rs.) 3.7 -8.42 -9.19 -11.95 -5.22
Contingent Liabilities 11.16 209.87 209.2 21.9 20.89

Operating Profit Margin(%) 9.56 6.43 -6.94 -10.91 20.44

Debt Equity Ratio 0.01 0.02 0.18 1.03 1.03
Gross Profit Margin(%) 3.53 -4.04 -29.26 -52.58 -3.85
Interest Cover Ratio 11.46 -9.09 -108.91 -1.05 0.18
Net Profit Margin(%) 20.84 -21.6 -40.01 -81.62 -7.5
Return On Capital Employed(%) 4.19 -3.23 -12.71 -16.18 1.24 Promoter Shareholding (%) 35.51 33.05 37.60 39.66 40.16
Return On Net Worth(%) 16.88 -22.74 -21.74 -64.19 -5.71 Public Shareholding (%) 64.49
 Industry Overview
The Oral Care Market

JHS SVENDGAARD | OCTOBER 2017 SLIDE 15

 INDIAN
ORAL CARE
MARKET

JHS SVENDGAARD | OCTOBER 2017 SLIDE 16

 INDIAN ORAL CARE INDUSTRY
• The Oral products market in India consists of toothpaste, toothbrush, tooth-powder, and
mouthwash. 66% of Indian households use toothpaste, 24% use toothpowder, and 18% are
non-dentifrice users.
• The oral care market in India is estimated to generate revenues of upto Rs.10,000 crore per
annum.
• Within the oral care market segment, the toothpaste market in India alone accounts for
Rs.8,000 crore and is expected to be growing at a CAGR of 15 ~ 16%.
• At Present Colgate holds a market share of 51.2% and HUL 17.5%,17%of the market share
is shared by brands such as Pepsodent, Babool, Sensodyne, Dantkanti etc.
• Mouthwash falls under premium category gaining popularity in urban area. Consumers are
bending towards mouthwash products due to change in lifestyle/ standard living and for
better oral hygiene.
• Others products (tongue cleaner and Dental floss) are expanding gradually in Indian Oral
care market. Availability of wide variety of products, increasing health awareness and rising
income levels are some factors which will lead to higher consumption of oral care products
in upcoming years

JHS SVENDGAARD | OCTOBER 2017 SLIDE 17

PERPETUAL MAPPING- Competition

 Emotional  Premium

 Economical  Functional

JHS SVENDGAARD | OCTOBER 2017 SLIDE 18

 NEED OF THE HOUR
RANGE WHICH FITS IN
“EMOTIONAL-PREMIMIUM-FUNCTIONAL-ECONOMICAL”
& Establishes
ORAL HYGIENE
From Age 0

JHS SVENDGAARD | OCTOBER 2017 SLIDE 19

OUR CURRENT PORTFOLIO
V O I D S F I L L E D B Y M A R K E T L E A D E R S …

Attributes Children Young Family Adults

Flavour & Colour
GAP FILLED BY “COLGATE”
Whiteness
Fresh Breath GAP FILLED BY “CLOSE UP”

Decay Prevention GAP FILLED BY “PEPSODENT GERMICHECK”

Cost Effective GAP FILLED BY “PATANJALI”
Plaque prevention
GAP FILLED BY “COLGATE ACTIVE SALT”
Stain prevention
Herbal GAP FILLED BY “DABUR RED”

Sensitivity GAP FILLED BY “SENSODYNE”

KIDS “Oral Hygiene” GAP BEING FILLED BY “AQUAWHITE”

JHS SVENDGAARD | OCTOBER 2017 SLIDE 22
GAP IDENTIFIED

KIDS SPECIAL RANGE

„ORAL HYGIENE‟ from Age ZERO

GROWTH PLAN to be the Market Leader of the ignored/potential

“Kids Oral Care Market”

JHS SVENDGAARD | OCTOBER 2017 SLIDE 23

 Google says…
Comparing
Bigger brands
In the adult category

Why is there a less focus

on the Kids range?

When they are going to be

the end user of
World’s youngest
Nation…
JHS SVENDGAARD | OCTOBER 2017 SLIDE 24
A l l S e g m e n t s & A g e ( fo r K i d s )

JHS SVENDGAARD | OCTOBER 2017 SLIDE 25

 #CAVITIESKIHAAR

KIDS TOOTHPASTE

JHS SVENDGAARD | OCTOBER 2017 SLIDE 26

JHS SVENDGAARD | OCTOBER 2017 SLIDE 27
 PLANNED
FLAVOURS
FOR
9
CHARACTERS

Covering all segments

For all tastes

JHS SVENDGAARD | OCTOBER 2017 SLIDE 28

PACKAGING & POSITIONING
“JO DIKHTA HAI WHO BIKTA HAI”

JHS SVENDGAARD | OCTOBER 2017 SLIDE 29

New Defined Positioning
Findings on the need of the hour for Oral Hygiene, not covering aspects that have
already been covered.

Anti-Ageing range of Oral Hygiene Products

Antioxidant range of Oral Hygiene Products

JHS SVENDGAARD | OCTOBER 2017 SLIDE 30

NEW PRODUCT PROPOSALS
NASCENT MARKET & GROWTH SCOPE

JHS SVENDGAARD | OCTOBER 2017 SLIDE 31

N a s c e n t M a r k e t & P r o p o s i t i o n

Market Study Suggests JHS SBL

 Establishing a concept of Day & Night toothpaste to

incorporate the habit of brushing twice a day.
 Only 15% of the Indian population brush twice a day.

Day Toothpaste
Tightens teeth & gums

Day & Night

toothpaste
Night toothpaste
Moisturizes mouth

JHS SVENDGAARD | OCTOBER 2017 SLIDE 32

N a s c e n t M a r k e t & P r o p o s i t i o n

Market Study Suggests JHS SBL

 Upcoming launch of toothpaste for sensitivity with enhanced

efficacy coupled with multiple clinically proven ingredients
 With incidences of tooth sensitivity rising to over 35% of the for sensitivity.
global population, toothpaste with potassium nitrate
witnesses strong demand.

FIRST TIME IN INDIA

POWER OF 3 for SENSITIVITY
K+ in Potassium Nitrate Stannous Fluoride Pyrophosphate
Clinically proven ingredient to
1) 1)
Reduces and prevents bacterial
Tartar control
1)

reduce sensitivity growth and adhesion

Penetrates till the nerve ending to Reduces inflammation, prevents

1)
Plaque reduction
1)

depolarize and reduce pain gingivitis

JHS SVENDGAARD | OCTOBER 2017 SLIDE 33

N a s c e n t M a r k e t & P r o p o s i t i o n

Market Study Suggests JHS SBL

 High risk of dental fluorosis drives demand for fluoride free

 Launch of Fluoride “Fruity” Tooth gels for KIDS
toothpaste, especially for toddlers and children.

JHS SVENDGAARD | OCTOBER 2017 SLIDE 34

N a s c e n t M a r k e t & P r o p o s i t i o n

Market Study Suggests JHS SBL

 Growing focus on maintaining flawless white and clean teeth

 Upcoming launch of ‘Charcoal’ toothpaste with a twist of
drives demand for tartar control and whitening toothpastes
natural ingredients.

aquawhite

aquawhite CHARCOAL
BLACK
CHARCOAL FOR
XTRA WHITE
BLACK
FOR
XTRA WHITE

Stain
Correction &
prevention
Stain
Correction &
prevention

JHS SVENDGAARD | OCTOBER 2017 SLIDE 35

N a s c e n t M a r k e t & P r o p o s i t i o n

Market Study Suggests JHS SBL

 Toothpaste with aloe, eucalyptus oil, myrrh and other plant

extracts as active ingredients grow in demand among health  „Aloevera‟ toothpaste under investigation for
conscious consumers. stability.

Teeth ‘Whitening’ with a Natural twist!

JHS SVENDGAARD | OCTOBER 2017 SLIDE 36

MARKET PENETRATION
EXECUTION PLAN

JHS SVENDGAARD | OCTOBER 2017 SLIDE 37

JHS SVENDGAARD | OCTOBER 2017 SLIDE 38
Way forward

Indian Market 100 Billion Product wise Projection Expansion

Products
Contribution
JHS Svendgaard 1 Billion (toothpaste)
Division Contribution (%)

Aquawhite Anti
13 Kuber 50
The company has its own
Aquawhite
products under
14 Cr.
Ageing
the toothpaste
brand
name of Aquawhite launched in 2015. Aquawhite Red Vishwakarma 30
Antioxidant 13
Present across the Northern and Eastern part toothgel
of the
Vayu 20
India.
Current Business Tooth Brushes Toothpastes Day & Night 8
Sensokare 17
Currently into toothbrushes and toothpaste.
2017 12 Cr. 2 Cr. Charcoal 8
Aloe Vera 8
2018 18 12
Kids Fruity 8
2019 20 30
Kids Character
2020 30 70 25
Range (9)

JHS SVENDGAARD | OCTOBER 2017 SLIDE 40

Way forward
Growth of Own Proprietary Brand Projected 2018 2019 2020
 Adult Category Revenues
 Kids Category
 Acquisition of Traditional Oral Care
Brands
Pvt. Label - Oral Care 123 150 180

 The
Institutional
company Sales
has its own products under theProprietary
brand Brand 30 50 100
name of Aquawhite launched in 2015.
Acquisition / Merger: New Product Categories 0 50 80
Present across the Northern and Eastern part of the
 Manufacturing Units Total Gross Revenue 153 250 360
India.
 Expanded Product Categories
Extended Geographical
 Currently Reach
into toothbrushes and toothpaste.
 Increase in FMCG Clientele
 Ready Distribution Network
 Brand Portfolio
2018 2019 2020

JHS SVENDGAARD | OCTOBER 2017 SLIDE 41

 THANK YOU!

Our facility in Kala – Amb, Himachal Pradesh

JHS SVENDGAARD | OCTOBER 2017 SLIDE 42