Balanced Scorecardfor Aurum Intl

April 2009

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Aurum International Overview

• Aurum International sells products in 180 countries and has operations in 60 countries.

• Aurum International is the 3rd largest Consumer FMCG company having turnover of $20bn.

Types of Products

AI – Personal Wash ( Soaps, Shower Gel hand Wash)

AI – Antiseptic Liquids

AI – Dishwashing

AI – Room Freshners

AI – Detergents

Vision Statement:Our passion is to improve peoples lives in little ways that make a big difference. We want to understand the everyday irritation that drive you nuts. We want to develop ever better household cleaning , health and personal care products that solve those problems, make you life easier and earn your trust and loyalty. That’s what drives us and keeps our business growing.

Our power comes from our people, our brands and our focused strategy. Together they enable us to drive growth and profits harder.…and our purposes is to create shareholder value.

“Our Strategy is to deliver above Industry Avg Growth by maintaining a high level of product innovation to deliver better solutions to consumer & constantly update our product Portfolio”

Convert this growth into higher profit & cash flow growth with emphasis on increase in GM through better product mix & cost optimization

We want to continuously reaffirm & give best returns to our Shareholders

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Aurum International Strategy

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Developing Markets

• Middle East and Africa contributes 4% of the global business, Growing at a pace of 40% YOY since last 2 years.

• Developing markets doubles the T.O in every three years.

Sourcing & Inventory for Developing Markets

• AI sources its products from across the globe essentially from the near factory location and works on OEM supplies thereby reducing its working capital and increase cash flows by forward credit from suppliers.

Market Share – Developing Market

• March’09 Market share is 12% in representative categories.

Distribution network – Developing Markets

• AI has 60 distributors in 12 countries and trades brand in 8 countries.

• Credit line extends upto 60days to support expansion and sales.

• Average margin for distributor is 15% to 20% based on Inventory carrying days

Aurum International Overview

Let us see how we could arrive at a BSC for a FMCG based Co..

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Balance Scorecard Particulars

In order for a business to keep track of their set strategy, all four particulars of the balanced scorecard must be analyzed. Each element can be viewed as being interconnected…

Learning and

Growth

Customer

Internal Processe

s

Financial

Str

ateg

y an

d V

isio

n

Balanced Score Card Of Developing Markets

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Objectives Of developing Market

Objectives

Of Dev Mkts

Increase & expand with new Consumer Base

Capture substantial market share

Increase growth through

Geographical Expansion

Over all to increase targeted Gross margin & Profitability

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Balance Scorecard for Aurum International: Dev Mkts

Bring in consumer &Shopper insight

Increase in Frequency Of Purchase

Manage Product Mix & cost Optimisation

Customers

Revenue Growth

Financial

Gross Margin

Optimize Cost of Entry to New Mkts

Sales per Employee

Negative Working Capital /Cash Flow

Speed up NPD Pipelines

Timelines for New Markets

Learning & Growth

Employee Retention

Employee Trainning,Negotiationskills & Knowledge Transfer

Internal Processes

Geographical Exp

Optimal use of facilities

Innovation of products/Range Management

Inventory Mgmt

Market Share Activities to Drive weighted & Numerical Distribution

Balance Score Card – Developing Markets

Elements Goals Measure Max Score Final ScoreRevenue Growth Meet Target Set for the Year 35% Growth 35%

Gross margin Margin Ach for the year 1 % additional over Last year 35%Optimize Cost of entry to New Markets Direct Shipment launch in 2 new markets 15%

Sales Per Employee Meet set targets 5 Mio sales per sales Person 5%Neg Wcapital Cash Flow Control over Debtors Reduce Creditdays 10%

Increase Frequency of Purchase Drive Volume Growth 15% Vol growth From Existing Mkts 30%Manage Product Mix Rationalise gross contribution Gross Contribution on Key brands to be higher than previous year 20%

Market share Improve Market share in the market Key categories to Grow min 500 basis point YOY 20%Bring in Consumer & shopper Insight Understand Consumer & Shopper behaviour conduct one focus group per Qtr in Key Mkts 15%

Inventory Management Demand & supply ratio Stock days 15%

Innovation, Product range Mgmt NPD launch as per timelines Success of NPD in launch markets 30%Geographical Expansion Reach consumers in New markets New market Expansion as per timelines 25%Optimal use of facilities Increase sales Productivity 5% incremental growthRevenue per customer 15%

Numerical & weighted Distribution Reach new outlets 10% increase in numerical Distribution & weighted distribution 20%Employment trainning & devlopment Empowerment & improve skill sets 5 trainning days per employee per year 10%

Speed up NPD pipelines Pre empt Competition No: of brands we represent before competition 35%Time line to New Markets Increase Global Presence stick to the time line set in phases 20%

Employee Retention Show Career Path & Continuity factor Atrition rates should e below 10% of the current emp-loyee stregth 35%

Financial

Customer

Internal Proces

Learning & Growth

Thank You “Together” Let us “Succeed”!!