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GA

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om

panie

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utt

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ath

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ppliance

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made

stra

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in

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ments

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wal

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politi

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inst

abilit

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legal

rest

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on r

ais

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apit

al

or

acq

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panie

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ndia

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unauth

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use

of

our

inte

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pro

pert

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genera

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aff

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ing

our

indust

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erf

ly

Gandhim

ath

i A

ppliance

s Ltd

may,

from

tim

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make a

ddit

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wri

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ora

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rward

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ur

report

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share

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Phase I

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10)

Accele

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row

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Investm

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level gro

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ng a

nd b

rand

aw

are

ness a

cti

vit

ies a

nd h

igher

R&

D s

pend

•A

cquir

ed r

ights

to t

he B

utt

erf

ly

bra

nd in p

erp

etu

ity

thro

ugh

the

acquis

itio

n o

f a d

ivis

ion o

f

Associa

te C

o.

LLM

Appliances

(Cost

Rs.

47.8

cro

re)

•In

vesti

ng in t

op q

uality

pro

fessio

nals

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g g

overn

ance,

report

ing

and inte

rnal syste

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s

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apacit

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xpansio

n u

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ay

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gin

g o

n R

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capabilit

ies t

o

intr

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ew

pro

ducts

wit

h

uniq

ue d

esig

n a

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ddit

ional

featu

res

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ccele

rate

opera

ting

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ge

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ross M

arg

in

pro

file

and r

etu

rn r

ati

os

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om

entu

m a

nd

enhanced o

pera

ting

eff

icie

ncie

s t

o r

esult

in

calibra

ted im

pro

vem

ents

in W

ork

ing C

apit

al

sta

ndard

s

Phase II

(FY11 –

13)

Phase III

(FY14 -

16)

Phase IV

(F

Y1

7 o

nw

ard

)

ww

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lyin

dia

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Sca

le &

Geogra

phic

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17

6

6

6

9

28

20

10

20

11

20

12

20

13

20

14

Num

ber

of

Sta

tes

•O

ver

the p

ast

two y

ears

, bra

nd

“Butt

erf

ly”

has w

idened its

pre

sence a

ll o

ver

India

•In

addit

ion t

o i

ts e

xte

nsiv

e p

resence i

n S

outh

India

, th

e C

om

pany h

as f

ocused o

n s

trength

enin

g i

ts p

resence i

n

non-South

mark

ets

by w

idenin

g its

dis

trib

uti

on n

etw

ork

and a

ugm

enti

ng a

fter

sale

s s

erv

ice c

apabilit

ies

•Str

eam

linin

g

of

the

busin

ess

post

the

acquis

itio

n

of

the

ap

pliances

div

isio

n

of

Associa

te

Com

pany

LLM

Appliances,

has r

esult

ed i

n i

mpro

ved

rela

tions w

ith m

odern

tra

de o

utl

ets

and l

eadin

g r

eta

il c

hain

sto

res w

hic

h

will fu

rther

boost

its r

each a

nd a

ccessib

ilit

y t

o c

usto

mers

.

•T

his

has b

een s

upport

ed b

y e

nhanced

mark

eti

ng a

nd b

rand a

ware

ness a

cti

vit

ies a

cro

ss v

ari

ous m

edia

Incr

ease

d G

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phic

al

exp

ansi

on t

o s

upp

ort

long

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row

th p

lans

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Pro

duct

Lin

e E

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nsi

on

18

6

6

6

6

20+

20+

Pro

duct

Cate

gori

es

180

250

250

320

500

536

SK

Us

Incr

ease

d p

rod

uct

cate

gori

es

for

wid

er

pro

duct

port

folio a

nd h

igher

mark

et

share

•BG

MA

L a

dded 1

4 n

ew

pro

ducts

cate

gori

es a

nd v

ari

ants

to i

ts p

roduct

basket

in F

Y14

inclu

din

g p

roducts

ad

ded d

ue t

o

the

LLM

AL

Dom

esti

cK

itchen

and

Dom

esti

cEle

ctr

ical

appliances

acquis

itio

n,

takin

gth

eto

tal

off

eri

ng

toover

20

pro

ducts

•Furt

her,

th

e C

om

pany org

anic

ally added 60 new

SK

Us in

FY14 and th

e LLM

AL acquis

itio

n contr

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d to

ad

dit

ional

gro

wth

in S

KU

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oin

g f

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ard

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om

pany p

lans o

n a

ddin

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0 S

KU

s a

nnually

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ivers

ifie

d p

roduct

port

folio i

nclu

des a

range o

f basic

and p

rem

ium

pro

ducts

whic

h c

ate

r to

the n

eeds o

f a v

ari

ety

of

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ers

acro

ss a

ll incom

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ate

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es

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Incr

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d B

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19

120

180

180

240

425

20

10

20

11

20

12

20

13

20

14

Sale

s T

eam

(Pers

onnel)

9

16

46

49

49

20

10

20

11

20

12

20

13

20

14

Mark

eti

ng S

pend (

Rs. C

r)

Hig

her

sale

s and m

ark

eti

ng s

pend

for

bett

er

penetr

ati

on a

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rand d

eve

lopm

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19

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ork

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ap

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ross

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nue

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Work

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nto

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r - C

red

itor)

Days

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ays

calc

ula

ted

on t

he b

asi

s of

36

0 d

ays

(ye

arl

y)

and 1

80

days

(half

-ye

arl

y)

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re

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5

17

1.6

36

0.6

138.3

188

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d

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Tra

de

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ab

les

Th

e t

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es

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of

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de

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By

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th

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the

de

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ay

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76

an

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fo

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an

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ww

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Abridged P

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Loss

Sta

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22

Pa

rtic

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FY

20

12

F

Y 2

01

3

FY

20

14

To

tal

Ne

t R

eve

nu

es

5

95

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70

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38

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fit

20

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2

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%)

35%

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33%

Em

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xp

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32

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63

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%)

11%

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4

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Fin

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ce

Cost

17

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15

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16

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Pro

fit

Befo

re T

ax

4

4.2

4

8.6

3

4.3

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H1F

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15

35

3.8

2

64

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23

9.8

1

58

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224

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108

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25.2

2

1.0

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4.0

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32%

40%

29

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29

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54

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56

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30

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19

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8%

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2.4

5

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4.6

1

2.3

23

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2.5

Incr

ea

se in

inta

ng

ible

ass

ets

led

to

in

cre

ase

in

de

pre

cia

tio

n

ww

w.b

utt

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lyin

dia

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Ass

ess

ment

23

•The e

sta

blished

busin

ess o

f Bra

nded S

ale

s h

as b

een g

row

ing s

teadily

•G

overn

ment

Ord

er

Sale

s is a

posit

ive c

ontr

ibuti

on b

usin

ess

•A

s a

nti

cip

ate

d, Im

pact

of

enhancin

g p

an-In

dia

pre

sence h

as r

esult

ed in t

em

pora

ry p

ressure

on b

lended

EBIT

DA

marg

ins

•Bra

nded S

ale

s in N

ort

h a

nd E

ast

India

is in investm

ent

mode –

expendit

ure

on s

trength

enin

g o

f dis

trib

uti

on

netw

ork

and o

n b

rand e

quit

y /

mark

eti

ng a

cti

vit

ies is b

ein

g incurr

ed u

pfr

ont

where

as b

enefi

ts t

o a

ccru

e in

the c

om

ing y

ears

•N

otw

ithsta

ndin

g m

ult

i-year

benefi

t fr

om

investm

ents

in e

xpandin

g d

istr

ibuti

on n

etw

ork

and e

nhanced

mark

eti

ng a

nd b

rand e

quit

y a

cti

vit

ies,

the C

om

pany f

ollow

s a

policy o

f fu

lly a

bsorb

ing t

hese c

osts

in P

&L

account

in t

he y

ear

they a

re incurr

ed

•K

ey s

trate

gic

achie

vem

ent

in F

Y1

4 h

as b

een s

ynerg

eti

c a

cquis

itio

n o

f dom

esti

c k

itchen a

nd d

om

esti

c

ele

ctr

ical appliances a

nd p

erp

etu

al ri

ghts

to t

he B

UT

TERFLY b

rand

•G

row

th v

isib

ilit

y r

em

ain

s b

right

as t

he C

om

pany e

xpects

benefi

ts f

rom

:

•W

ider

dis

trib

uti

on n

etw

ork

and e

nhanced g

eogra

phic

al pre

sence

•A

ddit

ion o

f new

sunri

se p

roduct

cate

gori

es f

rom

LLM

AL a

cquis

itio

n

•Im

pendin

g launch o

f new

pre

miu

m m

odels

in e

xis

ting c

ate

gori

es

ww

w.b

utt

erf

lyin

dia

.com

Key

Focu

s A

reas

24

•C

onti

nue t

o invest

on e

xpansio

n o

f dis

trib

uti

on n

etw

ork

and b

rand b

uildin

g a

cti

vit

ies

•A

rrest

work

ing c

apit

al in

tensit

y w

ith f

ocused init

iati

ves –

sett

ing m

onth

ly t

arg

ets

to s

ale

s a

nd d

istr

ibuti

on

team

s -

pre

ssin

g t

o a

ugm

ent

collecti

ons -

reduce a

vera

ge invento

ry levels

– n

egoti

ati

ng b

ett

er

term

s w

ith t

he

suppliers

•Im

pro

ve e

ffic

iencie

s a

nd s

ynchro

niz

ing o

pera

tions a

cquir

ed f

rom

LLM

Appliances L

td. – r

educe w

ork

ing

capit

al in

tensit

y a

nd r

ealize b

enefi

ts o

f synerg

ies

•M

axim

izin

g c

ost

eff

icie

ncie

s a

t all levels

of

opera

tions

•T

o launch s

evera

l in

novati

ve a

nd e

rgonom

ic k

itchen a

nd d

om

esti

c e

lectr

ical appliances –

worl

d c

lass

pro

ducts

wit

h im

macula

te d

esig

n a

nd a

dded u

tility

featu

res d

evelo

ped t

hro

ugh in

-house R

&D

•T

o f

urt

her

impro

ve p

erc

epti

on o

f pro

duct

quality

synonym

ous w

ith t

he “

BU

TTERFLY”

bra

nd

ww

w.b

utt

erf

lyin

dia

.com

Pro

duct

Launch

es

in

H1FY15

3

ww

w.b

utt

erf

lyin

dia

.com

New

Pro

duct

s Launch

ed in H

1FY15

26

Featu

res:

•

360 d

egre

e b

ase w

ith s

ilic

on r

ing

•Shock

pro

of

ABS b

ody

•Poly

carb

onate

Lid

for

all 3

jars

•A

uto

mati

c o

verl

oad

cut-

off

for

moto

r pro

tecti

on

•M

icro

-bala

nced R

oto

r fo

r Pebble

range e

nsure

s low

-nois

e a

nd e

ffic

ient

perf

orm

ance

Pebble

G

rand P

lus

Sple

ndid

PPebbbbllee

SSplle

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llus

MIX

ER

GR

IND

ER

– ‘Peb

ble

’, ‘Sple

ndid

’ and

‘G

rand

Plu

s’ R

ange o

f M

ixer

Gri

nders

ww

w.b

utt

erf

lyin

dia

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New

Pro

duct

s Launch

ed in H

1FY15

27

Rhin

o P

lus

Rhin

o PP

lluuss

Featu

res:

•

Therm

al overl

oad p

rote

cto

r pre

vents

over-

heati

ng

•C

om

pact

body f

or

ease o

f handling

•V

enti

lato

r on b

oth

sid

es t

o r

educe b

ody t

em

pera

ture

while in o

pera

tion

•T

riangle

shape k

nob

to p

revent

rota

tion w

hile in o

pera

tion

TA

BLE T

OP W

ET

GR

IND

ER

– ‘R

hin

o P

lus’ R

ange

ww

w.b

utt

erf

lyin

dia

.com

New

Pro

duct

s Launch

ed in H

1FY15

28

KIT

CH

EN

APPLIA

NC

ES -

Butt

erf

ly R

efl

ecti

on S

pecia

l Edit

ion A

uto

Ignit

ion L

PG

Sto

ve

F

eatu

res:

•

A p

erf

ect

bala

nce o

f conventi

onal and

modern

cookin

g

•Boasts

of

an a

esth

eti

cally d

esig

ned

body

•H

ighly

space-eff

icie

nt

•Sport

s p

olished

Sta

inle

ss s

teel deta

chab

le s

pill tr

ays

•H

igh-speed a

nd h

igh-eff

icie

ncy b

urn

ers

•U

nif

orm

hole

s in b

urn

ers

ensure

s b

ett

er

dura

bilit

y a

nd h

igh e

ffic

iency

•G

oin

g f

orw

ard

, th

ere

will be m

ult

iple

SK

Us f

or

each o

f th

e s

toves

2 B

urn

ers

3

Burn

ers

4 B

urn

ers

ww

w.b

utt

erf

lyin

dia

.com

New

Pro

duct

s Launch

ed in H

1FY15

29

CO

OK

ER

/ C

OO

KW

AR

E -

Revolu

tionary

Dura

base &

Dura

base +

range o

f In

ner

Lid

Pre

ssure

C

ookers

Featu

res:

•

Sets

a n

ew

benchm

ark

in t

he Inner

Lid

Pre

ssure

Cooker

segm

ent

•Equip

ped

wit

h

specia

l fe

atu

res

like

Extr

a

Thic

k

Base,

food

gra

de

alu

min

um

body, and s

pecia

lly f

orm

ula

ted

rubber

gasket

•C

urr

entl

y,

off

ers

th

e hig

hest

base th

ickness of

6.5

m

m in

Pre

ssure

cooker

segm

ent

in t

he India

n m

ark

et

•Peel pro

of

inducti

on c

om

pati

ble

base

•A

esth

eti

cally d

esig

ned e

asy g

rip

handle

, w

hic

h is s

trong a

nd c

onvenie

nt

Dura

base

Pre

ssure

C

ooker

Extr

a t

hic

k b

ase

measu

ring

6.5

mm

D

ura

base

+ P

ress

ure

C

ooker

Ad

vanta

ges o

f Extr

a T

hic

k

base

•

Quic

k E

ven h

eati

ng

•Fast

er

and B

ett

er

cookin

g

•Less

co

nsu

mpti

on

of

LPG

G

as

•In

crease

s th

e l

ife s

pan of

the p

roduct

ww

w.b

utt

erf

lyin

dia

.com

New

Pro

duct

s Launch

ed in H

1FY15

30

CO

OK

ER

/ C

OO

KW

AR

E -

‘Pearl

Plu

s’ and

‘Sup

erb

Plu

s’ Bulg

ed

bod

y r

ange o

f cookers

Featu

res:

•

Aesth

eti

cally d

esig

ned w

ith a

Bulg

e-shaped b

ott

om

•Ensure

s b

ett

er

sti

rrin

g o

f fo

od

•H

igh in q

uality

and s

uperi

or

desig

n

•Food

gra

de v

irgin

alu

min

um

body o

f Pearl

Plu

s c

ooker

ensure

s long lif

e

•Superb

Plu

s c

ooker

enjo

ys p

eel-

pro

of

body

•C

om

pati

ble

wit

h Inducti

on s

toves a

s w

ell a

s L

PG

sto

ves

•Pre

cis

ion d

esig

ned w

eig

ht

set

regula

tes c

ookin

g s

team

pre

ssure

Pearl

Plu

s C

ooker

Peel Pro

of

Induct

ion

Base

Superb

Plu

s C

ooker

Pre

cisi

on

Desi

gned W

eig

ht

Set

ww

w.b

utt

erf

lyin

dia

.com

Fin

anci

al O

verv

iew

4

ww

w.b

utt

erf

lyin

dia

.com

Perf

orm

ance

Tra

ck R

eco

rd -

Annualized

32

193

267

642

807

839

FY10*

FY11*

FY12

FY1

3FY1

4

Tota

l R

evenue (R

s c

rore

)

22

27

63

73

#

54

#

FY1

0*

FY11*

FY12

FY13

FY14

EBIT

DA

(R

s c

rore

)

16

18

44

48

34

FY10*

FY11*

FY12

FY13

FY14

Pro

fit

Befo

re T

ax (

Rs c

rore

)

10

19

30

33

22

FY1

0*

FY11*

FY12

FY1

3FY14

Pro

fit

Aft

er

Tax (

Rs c

rore

)

CA

GR:

44%

CA

GR:

21%

CA

GR:

25%

CA

GR:

22%

NO

TE : *

FY10 w

as e

xte

nded t

o 1

8

month

s e

nded o

n

30.0

6.2

01

0 a

nd F

Y1

1 w

as f

or

peri

od o

f 9 m

onth

s e

nded o

n 3

1.0

3.2

01

1.

The f

igure

s a

bove

re

pre

sent

the a

nnualized n

um

bers

in o

rder

to f

acilit

ate

a c

om

pari

son.

#

Fore

ign e

xchange loss w

as n

ot

inclu

ded in E

BIT

DA

calc

ula

tion u

nti

l FY13.

In F

Y14,

fore

ign e

xchange loss h

as b

een inclu

ded i

n E

BIT

DA

calc

ula

tion

ww

w.b

utt

erf

lyin

dia

.com

Key

Fin

anci

als

33

10.5

20.0

19.7

1

8.7

12.5

FY1

0 @

FY1

1 @

FY1

2 #

FY1

3 #

FY1

4

Earn

ing P

er

Share

(R

s) -

Annualized

28

43

49

113

125

FY1

0FY11

FY12

FY1

3FY14

Book v

alu

e p

er

share

(R

s)

@

FY10 w

as e

xte

nded t

o 1

8

month

s e

ndin

g 3

0.0

6.2

01

0 a

nd F

Y11 w

as f

or

peri

od o

f 9 m

onth

s e

ndin

g 3

1.0

3.2

01

1.

The f

igure

s a

bove

re

pre

sent

the a

nnualized n

um

bers

in o

rder

to f

acilit

ate

a c

om

pari

son.

#

EPS f

or

FY12 a

nd F

Y13 h

ave r

educed d

ue t

o

expansio

n o

f th

e E

quit

y B

ase

ww

w.b

utt

erf

lyin

dia

.com

Key

Fin

anci

als

34

27

41

76

201

224

FY1

0FY1

1FY1

2FY1

3FY1

4

Net

Wort

h (R

s c

rore

)

66

68

84

1

166*

FY1

0FY1

1FY1

2FY1

3FY1

4

Net

Deb

t (R

s c

rore

)

2.4

1.6

1.1

0.0

0

.7

FY1

0FY1

1FY1

2FY1

3FY1

4

Net

Deb

t - E

qu

ity R

ati

o

81

140

587

492

523

FY1

0FY1

1FY1

2FY1

3FY1

4

Mark

et

Cap

(R

s c

rore

)

•In

cre

ase in N

et

debt

in F

Y2

01

4 w

as o

n a

ccount

of

dela

yed p

aym

ent

of

Govern

ment

ord

ers

. R

s. 1

20

cro

re w

as d

ue in M

arc

h

20

14

, out

of

whic

h R

s.

81

cro

re w

as r

eceiv

ed in A

pri

l 2

01

4, R

s.

16

cro

re in M

ay 2

01

4 a

nd R

s. 2

1 c

rore

in June 2

01

4.

•T

he t

ota

l re

ceiv

able

s f

rom

the G

overn

ment

ord

ers

is R

s. 1

77

cro

re

ww

w.b

utt

erf

lyin

dia

.com

Q2 &

H1FY15 O

pera

ting

Perf

orm

ance

& H

ighlights

5

ww

w.b

utt

erf

lyin

dia

.com

•Bra

nded net

revenue gre

w by 8

.4%

fr

om

R

s.

14

3 cro

re in

Q2

FY1

4 t

o R

s. 1

55

cro

re in Q

2FY1

5.

•The sale

s gro

wth

w

as not

substa

nti

al

due to

hig

her

base

eff

ect

in Q

2FY1

4 (over

40

% Y

-o-Y g

row

th o

ver

Q2

FY1

3)

•H

igher

finance c

ost,

incre

ased a

dvert

isem

ent

and p

ublicit

y

expenses c

aused low

er

pro

fit

for

Q2

FY1

5

Q2FY15 –

Perf

orm

ance

hig

hlights

36

13.7

1

0.5

Q2

FY14

Q2FY15

EBIT

DA

(R

s. cro

re)

6.7

1.5

Q2FY14

Q2

FY1

5

PA

T (R

s c

rore

)

143

.4

155

.4

Q2

FY1

4Q

2FY1

5Bra

nded S

ale

sG

ovt

Ord

er

Sale

s

Net

Revenue (R

s. cro

re)

ww

w.b

utt

erf

lyin

dia

.com

•Bra

nded net

revenue gre

w by 12%

fr

om

R

s.

23

4 cro

re in

H1

FY14

to R

s.

262

cro

re in H

1FY15

. In

the a

bsence o

f G

ovt.

ord

ers

for

H1

FY15

, net

revenue w

as low

er

by 2

5%

on a

Y-o-

Y b

asis

•H

igher

finance c

ost,

incre

ased a

dvert

isem

ent

and p

ublicit

y

expenses c

aused low

er

pro

fit

for

H1

FY1

5

H1FY15 –

Perf

orm

ance

hig

hlights

37

30.0

19.9

H1

FY14

H1FY15

EBIT

DA

(R

s. cro

re)

15.5

1.6

H1

FY14

H1

FY1

5

PA

T (R

s c

rore

)

233

.8

116

.4

H1

FY1

4H

1FY1

5

Bra

nded S

ale

sG

ovt

Ord

er

Sale

s

262

.4

Net

Revenue (R

s. cro

re)

ww

w.b

utt

erf

lyin

dia

.com

Kit

chen A

ppliances

Pro

duct

Cate

gories

38

Cookers

/C

ookw

are

•LPG

Sto

ve

•M

ixer

Gri

nder

•Table

Top W

et

Gri

nder

•Ele

ctr

ic C

him

ney

•H

and B

lender

•In

ducti

on C

ookto

p

•Ele

ctr

ic K

ett

le

•Ju

icer

•Ju

icer

Mix

er

Gri

nder

•Yogurt

Maker

•Slice T

oaste

r

•Sandw

ich M

aker

•Pre

ssure

Cooker

•N

on-Sti

ck C

ookw

are

•Ele

ctr

ic R

ice C

ooker

Ele

ctr

ical Pro

ducts

•A

ir C

oole

r

•W

ate

r H

eate

r (G

eyser)

•Ele

ctr

ic Iro

n

•Fan

Oth

ers

•O

ther

Tra

din

g G

oods

ww

w.b

utt

erf

lyin

dia

.com

Key

Hig

hlights

39

•Q

2FY1

5 p

erf

orm

ance is n

ot

com

para

ble

to Q

2FY1

4 p

erf

orm

ance d

ue t

o t

he a

cq

uis

itio

n o

f LLM

Ap

pliances b

usin

ess in Q

4FY1

4

•Reta

il c

hannel

sale

s e

xclu

din

g L

LM

acq

uir

ed

pro

ducts

incre

ased

by 6

% o

n a

Y-o-Y b

asis

. The s

ale

of

LLM

acq

uir

ed

pro

ducts

sto

od

at

Rs.

23

.9 c

rore

in Q

2FY1

5

•In

sti

tuti

onal

channel

sale

s h

ave b

een i

mp

acte

d d

ue t

o d

ela

y i

n r

ele

ase o

f new

LPG

connecti

ons,

but

is e

xp

ecte

d t

o i

mpro

ve

over

the c

om

ing q

uart

ers

•BG

MA

L c

onti

nues t

o m

ake s

tead

y p

rogre

ss in e

nhancin

g its

pre

sence in n

ew

mark

ets

in N

ort

h a

nd

East

Ind

ia

Pro

duct

Q2

FY1

5

Q2

FY1

4

Q1

FY1

5

Gro

wth

Bra

nded M

ark

et

Kit

chen A

ppliances*

135.0

122.1

85.4

10.5

%

Cooker/

Cookw

are

* 31.4

32.3

19.9

-2.8

%

Ele

ctr

ical Pro

ducts

* 3.6

-

7.2

-

Oth

ers

* 1.1

1.3

1.4

-15.4

%

Tota

l-Bra

nded

1

71

.1

15

5.7

1

13

.9

9.9

%

Oth

ers

(C

om

ponents

/ S

pare

s)

-

-

-

-

Gra

nd T

ota

l 1

71

.1

15

5.7

1

13

.9

9.9

%

Bra

nded

Gro

ss S

ale

s

(Rs c

rore

)

NO

TE : *

LLM

acq

uir

ed p

rod

ucts

con

trib

uti

on t

o v

ari

ous c

ate

gori

es in

Q2

FY

15

are

as f

ollow

s:

Kit

chen A

ppliances –

Rs.

11.6

cro

re

C

ooker/

Cookw

are

– R

s.

8.5

cro

re

Ele

ctr

ical Pro

ducts

– R

s.

3.6

cro

re

O

thers

– R

s.

0.2

cro

re

ww

w.b

utt

erf

lyin

dia

.com

Outlook

6

ww

w.b

utt

erf

lyin

dia

.com

Indust

ry G

row

th D

rive

rs

Incre

asin

g

num

ber

of

nucle

ar

fam

ilie

s

Imp

rovem

ent

in C

onsum

er

Fin

ancin

g

Susta

ined

GD

P G

row

th

Ris

e in r

ura

l in

com

es

Changin

g

Dem

ogra

phic

s

Conti

nued

gro

wth

in

new

gas

connecti

ons

Conti

nued

Urb

aniz

ati

on

Ris

e in p

er

capit

a s

pend

Rati

onalized

tax s

tructu

re

Incre

ase in

dis

posable

in

com

e

Shif

t in

C

onsum

pti

on

patt

ern

s

Pre

fere

nce

for

bra

nd

ed

good

s

41

ww

w.b

utt

erf

lyin

dia

.com

Att

ract

ive G

row

th P

rosp

ect

s

Imp

roved D

istr

ibuti

on

& S

usta

ined P

resence

•C

urr

entl

y c

oncentr

ate

d in

South

India

whic

h

repre

sents

over

80%

of

Bra

nded s

ale

s

•H

ave a

lready e

xte

nded

dis

trib

uti

on s

et-

up t

o

weste

rn I

ndia

, in

cre

asin

g

matu

rity

is d

rivin

g s

ale

s

mom

entu

m

•Scaling u

p d

istr

ibuti

on

netw

ork

in

Centr

al, N

ort

h

& E

ast

India

•Pan-In

dia

pre

sence b

ein

g

augm

ente

d l

eadin

g t

o

impro

ved m

ark

et

penetr

ati

on

New

Pro

duct

Pip

eline

•Revenues c

urr

entl

y

dom

inate

d b

y 6

key

pro

ducts

•Tota

l off

eri

ngs n

ow

at

more

than 2

0 p

roduct

cate

gori

es i

nclu

din

g

pro

ducts

added v

ia

acquis

itio

n o

f a d

ivis

ion o

f LLM

AL

•Enhancin

g p

roduct

opti

ons

for

mass m

ark

et

as w

ell a

s

pre

miu

m c

ate

gory

•A

ddit

ion o

f 60 S

KU

s b

y

BG

MA

L in F

Y14;

tota

l SK

Us

at

500+

as o

f A

pri

l 2014.

LLM

div

isio

n a

cquis

itio

n

has a

dded a

ppro

x. 100

SK

Us

Capacit

y E

xp

ansio

n

•The C

om

pany c

om

menced

expansio

n o

f it

s

manufa

ctu

ring c

apacit

y a

t a t

ota

l cost

of

Rs.

45 c

rore

•Pla

nned e

nhancem

ent

of

capacit

y f

or

Pre

ssure

C

ookers

, LPG

Sto

ves a

nd

Mix

er

Gri

nders

•C

apacit

y e

xpansio

n w

ill

meet

pro

jecte

d m

ediu

m

term

gro

wth

Enhanced M

ark

eti

ng &

Bra

nd A

ware

ness

Acti

vit

ies

•H

ave launched s

trong

advert

isem

ent

and b

rand

aw

are

ness c

am

paig

n

•A

cro

ss m

ult

iple

media

such a

s n

ew

spaper,

m

agazin

es,

tele

vis

ion a

nd

web

•In

vestm

ents

in a

dvert

isin

g

& m

ark

eti

ng r

em

ain

ed

ste

ady a

t Rs.

48 c

rore

in

FY14 f

rom

Rs.

49 c

rore

in

FY13

•A

dvert

isin

g a

nd m

ark

eti

ng

acti

vit

ies w

ill help

to

levera

ge t

he e

nhanced

dis

trib

uti

on n

etw

ork

and

wid

er

mark

et

reach

42

ww

w.b

utt

erf

lyin

dia

.com

Outlook

43

Reta

il C

hannel Sale

s

•The m

ark

et

scenari

o is s

till n

ot

very

bullis

h

•The f

esti

ve s

eason d

em

and w

as n

ot

as p

er

our

earl

ier

esti

mate

s

•W

idenin

g o

f pro

duct

port

folio a

nd intr

oducti

on o

f new

pro

duct

vari

ants

contr

ibuti

ng t

o s

ale

s g

row

th

•In

sti

tuti

on s

ale

s is d

ependent

on r

ele

ase o

f new

LPG

gas c

onnecti

ons

•N

ew

LPG

gas c

onnecti

ons a

re e

xpecte

d in Q

4FY15

Sale

s o

f N

ew

Pro

duct

cate

gori

es

•Pro

ducts

added t

hro

ugh a

cquis

itio

n a

re s

unri

se

pro

ducts

wit

h h

igh g

row

th p

ote

nti

al

•The m

ark

et

is n

ot

gro

win

g a

s p

er

our

earl

ier

esti

mate

s

•Synerg

y o

f BG

MA

L d

istr

ibuti

on n

etw

ork

is a

idin

g in

sale

s g

row

th

Govern

ment

Ord

er

Sale

s

•The r

esult

s o

f 4th

Annual te

nder

will be k

now

n b

y

Q3FY15

Insti

tuti

onal C

han

nel

Sale

s

60

-6

5%

of

Bra

nded

Sale

s in

H1

FY

15

Expecte

d t

o g

row

in t

he h

igh

sin

gle

dig

it t

his

fin

ancia

l year.

D

ouble

dig

it g

row

th is e

xpecte

d

from

FY16

Com

pany is m

onit

ori

ng t

he

sit

uati

on a

nd w

ill be a

ble

to

com

ment

on it

in t

he c

om

ing

quart

ers

15

-2

0 %

of

Bra

nded

Sale

s in

H1

FY

15

Expecte

d t

o a

chie

ve a

n inte

rnal

gro

wth

targ

et

of

20-25%

in F

Y15

-

Based o

n p

revio

us e

xperi

ence,

Govt.

ord

er

(if

aw

ard

ed) w

ill

contr

ibute

to t

he c

om

pany’s

top

and b

ott

om

lin

es

15

-2

0 %

of

Bra

nded

Sale

s in

H1

FY

15

CA

TEG

OR

Y

MA

RK

ET E

NV

IRO

NM

EN

T

H1

FY1

5

CO

NT

RIB

UT

ION

O

UT

LO

OK

TO

TA

L R

ET

AIL

SA

LES

Rs. 2

85

cro

re

GR

OSS

REV

EN

UES

Rs. 2

85

cro

re

Thank y

ou