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21 February 2011

JYOTHY LABORATORIES:: Kotak Sec: global investor conference 2011

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JYOTHY LABORATORIES:  Key takeaways
􀁠 In FY2012E, volume growth in Ujala is expected to be 5%, in Stiff & Shine ~20%, in
Techno Bright ~25%
􀁠 Planned price hikes - The company is in the process of effecting 9% price hike in washing
powder, 17% in Techno Bright, 12% in Stiff & Shine. It will be taking 10% price hike in
Ujala in April 2011. In Maxo, the company is a price follower and is waiting for
competition to hike prices before it increases its price.
􀁠 Jyothy Fabricare Services Ltd (JFSL) is likely to have sales of Rs110 mn in FY2011E, Rs600
mn in FY2012E and Rs1, 000 mn in FY2013E. Gross margins in the business are >60%.
JFSL will be cash break even this year.

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