OBJECTIVE OF THE STUDY

 To study about company and its products and strategy.

 To analyze the performance of different product categories.

 To throw light on financial aspects of Reckitt Benckiser.

 To do financial analysis with the help of trend analysis, graphical analysis and ratio analysis
and to give recommendation.

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 INTRODUCTION TO COMPANY
Reckitt Benckiser plc (LSE: RB) is a British global consumer goods company, making and
marketing home, health and personal care products. Headquartered in Slough, near London, UK, it
has operations in over 60 countries, including 42 manufacturing facilities, and sales in nearly 200
countries. RB is ranked 6th in the 2008 European Business Week 50, the magazine's annual ranking
of the best performing companies within the S&P European 350.

The company's strategy is to have a highly focused portfolio concentrating on its 17 most profitable
brands, which were responsible for 62% of net revenues in 2008. 35% of net revenues come from
products launched in the past three years, this focus on innovation was recognized by The Economist
Corporate Use of Innovation Award in 2009.

The company held Platinum status in 2005, 2006, 2007 and 2008 in the Business in the Community
CR Index, and in 2009 entered the Dow Jones Sustainability World Index and the Carbon Disclosure
Leadership Index.

The company was formed by a merger between Britain's Reckitt & Colman and the Dutch company
Benckiser NV in December 1999. Bart Becht became CEO of this new company and has been
credited for its transformation, focusing on core brands and improving efficiency in the supply chain.
The new management team’s strategy of “innovation marketing”. – a combination of increased
marketing spend and product innovation, focusing on consumer needs – has been linked to the
company’s ongoing success. For example, in 2008, the company’s “rapid succession of well
publicized new product variants” were credited for helping them “to capture shoppers' imagination”
Business Week has also noted that “40% of Reckitt Benckiser's $10.5 billion in 2007 revenues came
from products launched within the previous three years.

In October 2005, Reckitt Benckiser agreed to purchase the over-the-counter drugs manufacturing
business of Boots Group, Boots Healthcare International, for £1.926 billion. The three main brands
acquired were Nurofen in analgesics; Strepsils sore throat lozenges; and Clearasil anti-acne
treatments.

In January 2008, the company acquired Adams Respiratory Therapeutics, Inc., a pharmaceutical
company, for $2.3bn: one of the major brands acquired with this purchase was Mucinex.

Company’s Business
Reckitt Benckiser is a global success story: a world leader in the global household, health and
personal care sectors. Their offer is simple - bigger, better and more competitive opportunities to
develop a rewarding career at the very forefront of FMCG. It is listed on the UK stock exchange and
rank 23rd in the FTSE 100. It’s success is led by ITS Power brands - big-name brands like Finish,
Vanish, Dettol and Veet that aim to achieve global market leadership. Through them it has become

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No.1 in the vast majority of markets and categories in which it compete. Backing up its Powerbrands
is a great portfolio of local hero brands. It operates in no fewer than 60 countries, while its brands
are sold across 180. Its people are the power behind these brands - around 23,000 talented, driven
and entrepreneurial individuals, all working together.

Company’s Future
In the future it’ll continue its relentless focus on powerful brands in fast-growing categories. It’ll
keep delighting consumers with solutions to everyday problems. Its people, highly motivated and
well rewarded, will continue to enjoy real ownership of their achievements. Meanwhile it continues
to look for talented, entrepreneurial and dynamic people worldwide to hit the ground running.
Opportunities range from professionals in sales and marketing, research and development, supply
chain and to experts in information services, finance and human resources.
The company is only looking for true talent: people hungry for the opportunity and freedom to make
their mark. It’s going to be an exciting journey - and you could be part of it.

Vision
Reckitt Benckiser delivers better solutions in household, health and personal care to consumers,
wherever they may be. We do it through constant innovation. We look at the little things that drive
people mad in their everyday life. Then we deliver brilliant, fast-acting solutions that help make life
better and easier - and create outstanding shareholder value in the process.

MILESTONES

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For such a fast-paced, entrepreneurial business some are surprised to learn the company’s history
spans 150 years of innovation for consumers across the world. With a German and British heritage,
RB’s drive for financial performance and social responsibility today can be seen in its deep roots –
as shown in this timeline.

1823:- Founding of Benckiser by Johann A. Benckiser. Core business derived from industrial
chemicals.

1840:- Issac Reckitt rents, then subsequently (in 1848) buys a starch mill in Hull. Diversifies into
other household products; becomes renowned for starch, washing blue and black lead for
polishing.

1880:- Mortein launches in Australia.

1886:- Reckitt & Sons begins its expansion and opens businesses around the world – firstly
Australia.

1888:- Reckitt & Sons is launched on the London Stock Exchange.

1912:- Lehn & Fink Products begins US production of Lysol - originally imported from Germany.

1913:- Joint venture set up in South America between Reckitt & Sons and J&J Colman - Atlantis
Ltd. So successful that it is extended, in 1921, to cover all trading outside the UK. In the UK, Reckitt
& Sons join the Mason brothers in forming the Chiswick Polish Company. Diversification into other
branded household products continues through the war years and the Twenties.

1932:-Harpic Lavatory Cleaners bought.

A major breakthrough for Reckitt & Sons, with the decision to market a germicide, Dettol, endorsed
by the medical profession. Dettol launched.

1938:- Reckitt & Sons merge with J&J Colman to become Reckitt & Colman Ltd.

1943:- Air Wick launched in USA.

1954:- The Chiswick Polish Company merges with Reckitt & Colman Ltd.

1956:-Benckiser diversifies into consumer goods and industrial cleaning products. In the same year,
Benckiser launches Calgon water softener.

1965:- Gaviscon accidentally discovered during scientific research.

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1972:- Launch of Vanish Stain Removal Bar.

1985:- Reckitt & Colman buys Airwick products.

1991:- Benckiser begins expansion into Eastern Europe.

1994:- Reckitt & Colman acquires Lehn & Fink Products, including Lysol, the famous household
disinfectant brand in the USA.

1996:- Benckiser continues its expansion into the Baltic countries, Belorussia, China and Israel.

1999:- Reckitt & Colman and Benckiser merge to become Reckitt Benckiser - The world No.1
in household cleaning.
2000:- In November, Reckitt Benckiser acquires Tiga Roda - an Indonesian pest control business.
In March, Reckitt Benckiser acquires Oxy, a leading household business in Korea.

2002:- Reckitt Benckiser acquires outstanding minority interest in India and Sri Lanka.

2005:- Cillit Bang launched in 68 countries in just one year.

2007:- Air Wick Freshmatic launched, creating an entirely new Aircare segment.

Vanish hit the world No.1 spot!

2008:- Reckitt Benckiser completes acquisition of Adams Respiratory Therapeutics, Inc., allowing it
to enter the USA's over-the-counter market with Mucinex – the clear No.1 cough remedy in the US.

2009:- Reckitt Benckiser launches its new corporate brand identity. Contemporary and bold, it
reflects RB's spirit and what RB is all about as a business: 'The Power behind the
Powerbrands'

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 EXECUTIVE COMMITTEE
RB’s international management make their mark by pushing boundaries, being progressive and bold
thinkers, and being driven to outperform wherever they focus.

NAME POSITION NATIONALITY

Bart Becht Chief Executive Officer Dutch

Freddy Caspers Executive Vice President, German

Developing Markets

Colin Day Chief Financial Officer British

Executive Vice President, Italian

Amedeo Fasano Supply

Rob de Groot Executive Vice President, North Dutch

America and Australia

Salvatore Caizzone Executive Vice President, Italian

Europe (from 1 May,
2010)

Gareth Hill Senior Vice President, British/South African

Information Services

Rakesh Kapoor Executive Vice President, Indian

Category Development

Senior Vice President, Human British

Simon Nash Resources

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 CORE VALUES
PERFORMANCE UNLEASHED
The company is like its brands - strong, fast-acting and highly effective. There is plenty of drive and
energy, and it follows a direct and open style. It’s a place everyone will be given the freedom to
make their mark very early in their career. It thrive on constant innovation and tangible results.
From the very first day anyone join it, they make sure that person have a real job. Right from the
start, one expected to take ownership for the role he/she has chosen and supported in it. Expect to be
rewarded for success. Expect too, the freedom to enjoy a dynamic, international career in a business
that values achievement and commitment, not rules and process.

Four key values drive its business:

Achievement
Achievement makes the company who they are. It don’t just aim high, it aim to outperform. It
recognise its people in this. It support them to outperform wherever they focus, be it products, profits
or Corporate Responsibility.

Entrepreneurship
It encourage bold thinking, initiative and commercial drive. It allow daring ideas to thrive. It value
the passion that people bring internationally in turning ideas into great execution. It take calculated
risks, balancing needs of the business with needs of people.

Team Spirit
It drive success by pulling together. As individuals they like to win and are high achievers. It rapidly
bring its international strengths together when needed to work as one, united by common principles
and attitudes. They treat each other and their differences with a high degree of respect, sharing ideas,
failures and successes.

Ownership
It take full responsibility for, and the initiative to do what's needed in business and in developing and
engaging its teams. It attract people with this deep sense of ownership. They are rigorous in
following the few but important rules and processes they have. Mostly, however, people are given
the latitude to do what they want to, within a framework for success.

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 BUSINESS STRATEGY
Beating the competition
The company’s financial figures speak for itself. Year after year it has consistently delivered the
fastest growth in its sector. In fact, 2007 was the eighth consecutive year in which it outperformed
the market. Since 2000 it has doubled net revenue and quadrupled market capitalisation. Over the
past five years its shareholders have received a return of around 200%, against a market average of
22%.

Targeting growth
This is no accident. It’s the result of a clear, consistent and highly successful strategy. It focus
heavily on markets with significant growth potential. For example, it invest heavily in the relatively
new Automatic Dishwashing category rather than in the congested Laundry Detergent category.
Instead of investing in generic soaps and cleansers it specialise in the fast-growing Young Skin Care
category.

Why?

Because by seeking its fast growing categories where there is real consumer demand it can
maximise both its returns and growth.

Innovation - our winning formulas

Within these fast growing categories it invest disproportionately in its 17 Powerbrands. 14 of these
17 are now No.1 or No.2 worldwide. It top the league for its rate of product innovation - nearly 40%
of revenue comes from innovations launched in the last three years. That’s helped it achieve like-for-
like revenue growth of around 7% every year - at the top end of the industry. In fact, since 2000 it
has consistently outperformed its industry peer group

Eliminating waste
The company continue to work relentlessly on its margins, always looking for ways to manage costs.
It makes a real difference - enabling it to turn an average sales growth of 7% into a 17% growth in
profits over the past five years.

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 BRANDS
STEP INSIDE A BRAND POWERHOUSE
Out of the everyday, ordinary problems its consumers face it has created an extraordinary business.
It understand its consumers and offer them innovative solutions and products that make life that little
bit easier. It focus on the fastest growing categories where there is a real consumer need. It then
search for continuous development and innovation - it’s the engine that drives its growth.

Its energy is focused on its 17 Powerbrands - globally recognised success stories - that between
them account for nearly two-thirds of their income and 85% of its growth. Its R&D is effective
and productive and its marketing spend is at the top of the industry. It’s a strategy that delivers
results.

Its leading fabric treatment product Vanish used to be No.1 in the UK. Now it’s No.1 in 43
countries worldwide. That makes it No.1 globally too.

DIFFERENT CATEGORIES OF BRAND

Household
By far and away the largest part of its portfolio, these are high performance brands that help keep
homes clean and hygienic. It is the global No.1 for Fabric Treatment products, led by Powerbrands
like Calgon, Vanish and Woolite. It is the global leader in Surface Care, led by Powerbrands such as
Lysol, Dettol, Harpic and Cillit Bang. It is way out in front in the Automatic Dishwashing category,
driven by Finish, which is now the global umbrella brand for Calgonit and Electrosol. It is also joint
No.1 in the world for Air Care, led by our Powerbrand Air Wick. And it is No.2 in Pest Control,
spearheaded by the Mortein Powerbrand.

Health Care
This is one category in which It is expanding very rapidly. Recent major acquisitions have added
powerful brands like Nurofen, Strepsils and Mucinex to its portfolio. It is now market leaders in
most of the countries in which its brands have a significant presence. It is No.1 globally for Cough
and Sore Throat, led by our Powerbrands Mucinex and Strepsils. It is also No.1 in Europe for
Heartburn & Indigestion, led by Gaviscon. And It is No.2 in Europe for Analgesics, led by Nurofen.

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Personal Care
Its impressive range of products have worked together to make it a leader in key parts of this
category. It primarily focus on skin health and hygiene: antiseptic skin care, depilatories, and young
skin care. Its Powerbrand Dettol has made its No.1 globally for Antiseptic Personal Care. It is the
global leader in Depilatories. Its Veet Powerbrand. And Clearasil has taken it to No.2 globally in
Young Skin Care.

It also have valuable brands in it food category. While not it prime strategic focus, this category
makes an important contribution - for example, its Powerbrand French’s is now the world’s No.1
mustard.

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 PRODUCT CATEGORIES

Fabric Care

Category profile
This category consists of five product groups used for cleaning and treating all fabrics and keeping
washing machines working like new. It covers products used before, during or after the main laundry
wash cycle. Fabric Treatment products remove stains from clothes, carpets and upholstery. Garment
Care products are specially formulated for cleaning all clothes without risk of damaging the fabric.
Water Softeners protect the machine and laundry against the build-up of limescale and other
deposits. Fabric Softeners are used for softening and freshening fabrics and ironing aids help make
ironing more convenient. Laundry Detergents clean fabrics in washing machines.

Market position
o No.1 worldwide in Fabric Treatment and Water Softener categories. No.2 worldwide in
Garment Care.

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 o 22% of net revenues

CALGON

Calgon has been trusted by consumers for over 50 years to protect all the vital parts of
their washing machines from limescale build up. That's Calgon Protection. It is the only water
softener recommended by leading washing machine manufacturers. Sold in over 20 countries, it is a
clear No.1 in each one. Recent launches include Calgon Energis (2008), the best ever Calgon. It not
only protects all parts of the washing machine but also improves laundry results by helping to protect
whites from greying and colours from dulling.

Principal Markets
France, Turkey, Germany, Russia, Italy, Spain, UK, Greece, Belgium, Switzerland
Sold under the Calfort brand name in Italy

VANISH

Vanish is the leading global trusted stain removal expert for both fabrics and carpets. For
stains on fabrics, Vanish is available in both in-wash formats and pre-treat. Recent launches in the
Vanish range include Vanish Oxi Action Intelligence, with intelligent stain seekers that hunt out and
remove tough, greasy stains. Whether dealing with a stain on clothes or on the carpet, Vanish
provides amazing, effective and safe stain removal: all stains gone, right before the eyes. Vanish:
trust pink, forget stains!

Principal Markets
UK, Russia, Korea, Spain, Italy, Germany, Australia, Poland, Turkey

SPRAY “N” WASH

Spray 'n Wash provides effective and safe stain removal on all kinds of laundry fabrics,
and is available in different pre-treat formats. Recent launches include Spray 'n Wash Bright &

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White that safely removes stains in-wash while making colours brighter and whites whiter, Spray 'n
Wash Max which even removes dried-in stains before the eyes.

Principal Markets
USA, Canada.

WOOLITE

Sold in more than 30 countries, Woolite is a range of detergents that actively protect
clothes against wash-related damages. Coming from a 40 year heritage of fine fabric washing, the
Woolite brand has broadened its scope and become the global brand of choice for all wash loads in
need of protection. Woolite protects fabrics against shape loss, as well as colours against fading and
colour run accidents. The most recent innovation is Woolite Complete that cleans and cares for all
clothes.

Principal Markets
USA, Canada, Italy, France, Belgium, UK, Poland, Czech Republic, Spain and Portugal.

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 Surface Care
Category profile
Surface care covers 5 product groups. Disinfectant cleaners both clean and disinfect surfaces, killing
99.9% of germs. All purpose cleaners are ideal for many household surfaces, particularly in the
bathroom and kitchen. Lavatory cleaners offer specialised cleaning and disinfecting for the toilet
bowl and cistern. Speciality cleaners are designed for specific tasks, from cleaning ovens to
removing limescale. Finally, Polishes & Waxes clean and shine hard surfaces such as furniture and
floors.

Market position
o No.1 worldwide in Surface Care, with leading positions in all 5 product groups.

o 17% of net revenues

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CILLIT BANG

Cillit Bang is a range of power cleaners launched in 2004. It is now in over 50 countries
with the following range of products: Lime & Grime, Degreaser and Stain & Mildew Triggers,
Grease & Floor and Stain & Floor Dilutables and Stain & Toilet lavatory cleaner.

Principal Markets
Europe, US, Developing Markets

LYSOL

Lysol is the No.1 disinfectant brand in the US, with over 50% of households using Lysol
products. Families have trusted the brand to help keep their homes healthy for over 100 years.
Hospitals across the US also trust the brand to satisfy their cleaning and disinfecting needs.

Principal Markets
North America, South America, Asia Pacific, South Asia.

DETTOL

Dettol is the No.1 anti-bacterial cleaning range in the UK. Launched first in 1984 as
Dettox with Dettox Antibacterial Cleanser, the anti-bacterial cleaning range has now been regrouped
under the Company's other strong Antiseptic/Disinfectant brand, Dettol. Dettol Anti-bacterial
Surface Cleanser safely kills harmful bacteria such as Salmonella, Listeria and E-Coli but contains
no bleach and leaves no taint or odour, so it's safe to use around young children and on food
preparation areas.

Principal Markets
UK

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HARPIC

Launched in England in the 1920s, Harpic toilet bowl cleaner has been successfully
extended to 47 countries on a platform of powerful cleaning. Harpic provides a full range of liquid
toilet bowl cleaners, tablets, wipes, toilet bowl blocks, cistern blocks.

Principal Markets
Africa & Middle East, Asia Pacific, Europe, Latin America.

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 Dishwashing
Category profile
Products in this category are used in automatic dishwashing machines and for washing dishes by
hand. In automatic dishwashing, RB has a range of detergents that deliver an amazing clean and
shine and a range of Additives that enhance the performance of dishwasher and detergent.
Detergents include powerful multi-benefit detergents like Quantum, Max in 1 Power Tabs and All in
1 tablets, while the Classic range has Classic tablets, powders, liquids and gels. Additives include
detergent performance enhancers (like Turbo Dry, Diamond Shine Rinse Aid and Special salt) and
dishwasher enhancers (like Fresheners, Machine Cleaner and Glass Protector).

Market position
o No.1 worldwide in Automatic Dishwashing.

o 11% of net revenues

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 FINISH

Finish is RB’s global brand of automatic dishwashing products UK, Italy, Scandinavia,
Australia, New Zealand, Japan and Korea. With its excellent performance, all Finish products are
endorsed by the leading dishwasher manufacturers and glass and crockery brands. Finish leads the
market with successive innovative products developed and tested in Germany. Finish offers a
complete range of detergents and additives in a choice of formats and variants. The most popular
Finish detergents are the unique multi-benefit PowerBall Tabs with an all-inclusive system
incorporating rinse aid function, salt function and glass protection. Finish PowerBall is also now
available as Quantum, with 3 unique chambers combined to give amazing cleaning and shine every
time.

Finish additives include Diamond Shine Rinse Aid, Special Salt, Machine Cleaner, Freshener, the
glass protection product Protector and the new Turbo Dry for cupboard dry dishes. All Finish
additives are designed to enhance the dishwasher experience.

Principal Markets
UK, Italy, Scandinavia, Australia, Ireland, New Zealand, Japan and Korea

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 Health Care
Category profile
Products in this category relieve common health problems. Analgesics, Cold/Flu/Sore Throat and
Gastro-Intestinals are generally over the counter medications for common ailments such as pain,
fever, cold, flu, sore throat or heartburn.

Market position
o Nurofen and Gaviscon are leading Analgesic and Gastro-Intestinal brands in Europe and
Australia. Strepsils is No.1 in Sore Throat globally. .

o 26% of net revenues(Health and personal care combined figure)

STREPSILS

Strepsils is the world's leading sore throat medicine. Trusted by consumers and
pharmacists alike, this leading brand is now present in over 100 countries. From its inception as a

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sore throat gargle in 1950, the range has grown to a wide range of both lozenges and sprays, giving
consumers the choice they want for treating their sore throats.

Principal Markets
Europe, Asia, Australasia, Africa and Middle East.

MUCINEX

Mucinex is the US' leading cough and decongestion remedy. This brand came with the
acquisition of the Adams business.

Principal Markets
Mucinex is the US’ leading cough and decongestion remedy.

NUROFEN

Available in 90 countries, Nurofen is the fastest growing analgesic brand globally and the
leading analgesic brand in UK, Australia and New Zealand. Nurofen is available in a variety of
formats including tablets, gel caps and liquids. Its range includes Nurofen for Children and heat
patches for back pain and menstrual pain.

Principal Markets
Nurofen’s top 5 markets are UK, Australia, France, Russia and Belgium.

GAVISCON

Gaviscon is a well-established heartburn and indigestion remedy which provides long

lasting relief though its unique raft-forming mode of action. It is prescribed by doctors and
recommended by pharmacists and sufferers alike. Gaviscon Advance is stronger and offers longer
lasting relief. Following its UK launch in 1997, it is now available in a number of countries globally.

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Principal Markets
Africa & Middle East, Asia Pacific, Europe, Latin America, South Asia.

Personal Care
Category profile
Personal care means products that are typically applied to the skin. Dettol antiseptic liquids and
personal care products help to protect against infection and illness. Veet, RB’s depilatory brand,
removes hair leaving beautiful, touchably smooth skin. RB’s skin care range consists of products
like Clearasil to fight spots and break-outs for visibly clearer skin and products like E45 for dry skin.
Denture Care consists of both denture fixatives and cleaners.

Market position
o Dettol is the No.1 worldwide brand in Antiseptics.

o Veet is the No.1 depilatory brand worldwide.

o Clearasil is the No.1 brand in Europe across all markets it plays in.

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 o 26% of net revenues(Health and personal care combined figure).

VEET

World leader in depilatory products and trusted by millions of women worldwide. Veet
markets a range of products that help women radiate a sexy femininity by giving them beautiful,
touchably smooth skin. Leadership is driven by constant innovations to meet women's beauty needs.
The new Spray-On Hair Removal Creams makes it easier to achieve 'superior to shaving'
smoothness, while the new High Precision Facial Wax allows for salon precision and long lasting
results at home.

Principal Markets
West and Eastern Europe, North & South America, Africa, Asia Pacific, Australasia.

DETTOL

As the world's leading brand of Antiseptics and a trusted champion of family health,
Dettol products offer a high standard of germ kill and are recommended by healthcare professionals
for their proven ability to keep families healthy. The brand has stayed contemporary through the
launch of new products and offered consumers a breadth of products across categories that can help
protect them from germs. These include bar soaps, hand sanitisers, liquid hand washes, shower gels
and antibacterial wipes.

Principal Markets
South Asia, Africa & Middle East, East Asia, Europe, Australia

CLEARASIL

The expert in spot care, Clearasil is renowned for its highly effective range of acne
treatment creams, facial washes and cleansing pads which give consumers the confidence of visibly

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clearer skin. Its strong position is continuously reinforced with innovations such as the re-launch of
the Stay Clear range of products as well as exciting launches in the high efficacy Ultra range. The
new Ultra 4 hour treatment cream is clinically tested to help reduce redness and spot size in 4 hours
while the Ultra spot blocker pen helps stops a spot in its tracks, helping to stop it appearing in the
first place.

Principal Markets
N. America, Europe, Australasia, Japan.

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 Home Care
Market Position
o No.2 worldwide in Air Care, Pest Control and Shoe Care.

o 14% of net revenues

Category profile
Home care covers three product groups. Air Care products remove mal odours and fragrance the air
in the home. Various formats include autosprays, electrical plug-ins, aerosols, gels and candles. Pest
Control products offer solutions to domestic infestation. They include insecticide and rodenticide
products in formats such as coils, mats, baits, traps, vapourisers and sprays to prevent infestation and
to kill pests. Shoe Care cleans and protects shoes.

AIRWICK

Air Wick was first launched in the USA in 1944 with the invention of Air Wick Liquid, a
wick in a glass bottle of liquid, which absorbs odours as it is pulled up within the bottle. Airwick is
now in 85 countries and offers consumers a large and growing range of fragrances and formats,

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including plug ins, battery operated devices, candles, gels and aerosols. They are used to eliminate
bad odours, freshen and fragrance the air, but also, increasingly to create ambience.

Principal Markets
Europe, North America, Asia Pacific.

MORTEIN

Mortein was first launched in the 1880s in Australia. It has been successfully launched
throughout New Zealand, South Asia and the South Pacific. This pest control brand is famous for its
Louie the Fly cartoon character advertising in Australia, which has been used for over three decades.
Louie is now being used in South Asia for Mortein and in Malaysia, Singapore and Thailand for
Shieldtox.

Principal Markets
Asia Pacific, South Asia.

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 Food
Market Position
o French’s is the leading brand of mustard in the world; its North American market share is
more than 30%. Frank’s RedHot Sauce is the region’s number two hot sauce and Cattlemen’s
Barbecue Sauce is the number one barbecue sauce in Foodservice

o 3% of net revenues

Category profile
The Food category focuses on products that liven up the flavour of favourite foods and make meals
more enjoyable. RB's major segments are mustard, barbecue sauce, hot sauce and French Fried
Onions. While the category is focused primarily in North America, these famous food brands are
distributed and sold in more than 55 countries. More than 90% of RB’s portfolio is made up of No.1
or No.2 brands.

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Key brands in this category are:

NO-SALT

FRENCH’S MUSTARD

 FRENCH'S POTATO STICKS

 FRENCH'S FRENCH FRIED ONIONS

 FRENCH'S WORCESTERSHIRE SAUCE

 FRANK’S REDHOT

 CATTLEMEN'S

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 Pharmaceutical
Market Position
SUBOXONE is the first opioid medication approved under DATA 2000 for the treatment of opioid
dependence in an office-based setting.

Category profile

SUBOXONE is the first opioid medication approved under DATA 2000 for the treatment of opioid
dependence in an office-based setting. SUBOXONE also can be dispensed for take-home use, just as
any other medicine for other medical conditions. The primary active ingredient in SUBOXONE is
buprenorphine. Because buprenorphine is a partial opioid agonist, its opioid effects are limited
compared with those produced by full opioid agonists, such as oxycodone or heroin. SUBOXONE
also contains naloxone, an opioid antagonist. The naloxone in SUBOXONE is there to discourage
people from dissolving the tablet and injecting it. When SUBOXONE is placed under the tongue, as
directed, very little naloxone reaches the bloodstream, so what the patient feels are the effects of the
buprenorphine. However, if naloxone is injected, it can cause a person dependent on a full opioid
agonist to quickly go into withdrawal.

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 TEN NEW PRODUCTS FOR 2010
RB's innovation continues with its new product launches for the coming year.

At RB, It is continuing to prove its might as an innovator, with a range of exciting products joining
the RB family in 2010.

NEW PRODUCT FEATURES

Finish Quantumatic 2010 will see the launch if the world's first
automatic detergent dispenser system, delivering
Quantum's outstanding cleaning and shine
automatically for up to one month.

In these environmentally-conscious times,

Vanish Oxi Action Extra Hygiene
getting great results from your wash at a lower
temperature is a high priority. New Vanish Oxi
Action Extra Hygiene removes bacteria in
laundry which can survive lower temperature
washing, while delivering the same powerful
stain removal.

There's no need to touch a grimy soap pump ever

Lysol No-Touch Hand Soap System again, with this new system which helps to stop
the spread of germs and infections.

Clearasil Clearasil Overnight range, containing wash,

lotion and serum, visibly reduces redness and
spots while sleeping.

Airwick Aqua Mist This new alternative to aerosols gives an

invigorating and more natural fragrance thanks to
the lack of chemical propellant.

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Harpic 2010 sees the launch of Harpic liquid 5x,
delivering five times better toilet bowl cleaning
than bleach.

Cillit BANG Cillit Bang Grime & Lime 4x is being

relaunched and offers four times more effective
limescale removal than leading brands.

Veet The new Suprem'Essence range has essential oils

for gentle and delicately-fragranced hair
removal, leaving skin fabulously smooth and
moisturised.

Strepsils 2010 sees the launch of the Strepsils Handy

Tube, a compact and portable packaging format
allowing immediate sore throat relief anytime,
anywhere.

Woolite Complete The latest addition to the Woolite family will be

making its debut in new markets in 2010,
offering gentle cleaning and complete fabric
protection.

31
 AWARDS

1.

Adult Health- Nurofen Express

Air Freshener-AirWick Aqua Essences

Body Care- E45 Endless Moisture Body Range

Stain Removal- Vanish Oxi Action Magnets

2.

The Marketing Week Engage Awards celebrate brands who go one step further than simply reaching
their desired customers, brands with an understanding of the shifting marketing landscape and an
ability to manipulate it in order to truly engage.

Reckitt Benckiser is sponsoring the new Brand Innovators award recognising the best of innovation
within the industry. It will reward an idea, product or a brand that can demonstrate new thinking in a
specific sector and can boast significant success. The innovation may be related to a new brand; the
rejuvenation or repositioning of an existing brand; brand extension; or innovative marketing
campaign and will be measured in sales figures, early market share figures and a description of how
the market had to respond to the idea.

32
3.

In 2009, CNBC named Bart Becht, CEO of RB, as European Business Leader of the Year. This
award is given to the leader of a company that has delivered outstanding performance and results.

33
 RECKITT BENCKISER IN INDIA
India-Intense challenges in one of its biggest developing markets.

Locations In This Region

India is one of the biggest of all developing markets for Reckitt Benckiser and this growth is driven
from our central office in Gurgaon. From here it support sales offices in Mumbai, Bangalore and
Kolkata, and our it commercial business numbers 375 employees. It also has six manufacturing
facilities in Tamil Nadhu, Uttarakhand, Jammu and Kashmir and Himachal Pradesh, which together
employ a further 270 people directly.

Business
It already have a very strong presence in India with instantly recognised brands like Dettol,
Mortein, Harpic, Lysol and Cherry Blossom. As the market continues to develop rapidly, the
potential for growth is enormous. Brands like Vanish, Veet and Air Wick have all enjoyed
successful launches in recent years. Its core business functions are marketing, sales, supply chain
and R&D. It specifically looks for highly ambitious and talented sales professionals, production
managers and quality specialists.

Future Expectation
This is an intense and very fast-moving environment that will give you the chance to work with
some of the best professionals in this industry. As well as the wealth of commercial challenges, India
is increasingly seen as a source for high-quality talent for the Company as a whole.Number of
exceptional people transfer to other global sites each year. Outside of work you’ll find no time to be
bored either: in India a rich cultural heritage combines with advances in science and technology
to produce a heady mix of tradition and change. In the midst of this progress and excitement, its
people continue to provide strong support to disadvantaged children through Save the Children
initiatives in Kolkata and elsewhere.

Graduate Programme
Management Trainee Programme is designed for talented students with post graduate qualifications
in business management, marketing, supply chain and HR. It focus on the top 10-12 business schools
in the country and conduct selection programmes on-campus from January to March. Occasionally it
also accept applications from exceptional graduates from other schools. For roles in finance it recruit
fresh Chartered Accountants who have completed Articleship Training.

RB India and Harpic bring out the best in new marketing talent
RB India recently organised a large-scale brand study competition to bring out new ideas from
young marketing brains.

34
 INNOVATION AT RECKITT BENCKISER
RB is a true leader, in market terms and financially. Its strategy is simple: Powerbrands driven by
innovation, rolled out globally & heavily marketed. RB is a genuinely global force and a truly
multinational-company.

Innovation drives the strategy, which drives innovation

RB reinforces its brands with an exceptional rate of innovation.
Innovations must be Great Performers, Fast to Market and Cost-effective.
The innovation pipeline is built around brand strategy. So innovative cost savings improve margins
and fuel growth. And it’s a full time job – RB changes a formula about every 8 hours.

Consumers are at the centre of RB innovation

Innovation starts and ends with consumers – the small ways RB can make life better. So RB builds
consumers into product development, validating every idea with them.
It doesn’t focus on ideas, but ideas that sell because they meet consumer needs.
This creates powerful global brands that can adapt to local preferences.

Where do those ideas come from?

Above all, from consumer insights. RB spends time with consumers in the lab and in their homes.
But RB has its own technology insights too. The RB-Idealink website sources ideas the world over.
RB also keeps a close eye on technological and societal trends and puts all these ideas to the test.

Innovation is a team effort

Driving a global formula means reacting fast and efficiently – that takes teamwork.
So innovation is integral to the business and RB creates strategic and external alliances.
All to give consumers worldwide even more reasons to buy RB products.

35
 CORPORATE RESPONSIBILITY
Living Up To Responsibilities
Company want to make sure of a sustainable future not just for its business and its shareholders but
also for the communities in which it play a part. Achieving this affects the way it do business around
the world. It aim to outperform wherever it focus, and its commitment to CSR is a good example -
Its programme is the most ambitious in the industry.

Environment
It try to operate in a way that minimises its environmental impact - in real terms. For starters, 70% of
its manufacturing waste is now recycled. Between 2000 and 2006 it reduced greenhouse gas
emissions from its global factories by 22% per unit of production.

Its new target is to reduce its products’ Total Carbon Footprint, by 20% per unit by 2020 versus
2007. Over 90% of its third-party factories in developing markets have been audited to ensure they
meet their high global standards. In the meantime over two million ‘Trees for Change’ are being
planted to offset its carbon emissions. It is in the process of implementing our new ‘Our home, Our
planet’ initiative. This is a product labelling initiative that aims to give consumers access to
information about product-related ways to make a positive impact on the environment.

Community Projects
It also work closely with communities in numerous ways, and donated £1.5m to charitable causes
during 2007 alone. It work with many organisations in its markets around the world, but its global
charity partnership is with Save the Children. It is currently engaged in a joint initiative to help to
prevent children dying from preventable diseases. The cost of providing basic health and hygiene
support for one child is £10, and so by raising £1.5m by the end of the year it hope to save 150,000
lives. It is well on track, having already smashed its previous target of 100,000 lives/ £1m.

36
 FINANCIAL ANALYSIS
2009 was a year to be especially proud of at RB.
In tenth anniversary year as Reckitt Benckiser faced the decade’s toughest global economic
conditions, but still delivered excellent growth. This proved again that company’s strategy of
focusing on Powerbrands with consumer relevant innovation and strong marketing investment is the
right one.
The entrepreneurial spirit and deep commitment from RB people to drive better and better solutions
for consumers continues to deliver outstanding returns for shareholders. The company believe this
strong entrepreneurial spirit and deep commitment has and will continue to help it power the
business ahead.

Trend Analysis
COMPARATIVE INCOME STATEMENT
For The Year Ended December 31,2009

AS ON AS ON %change
PARTICULARS 31.12.2009 31.12.2008

£m £m

Net revenues 7,753 6,563 18.13%

Cost of sales (3,089) (2,673) 15.56%

4,664 3,890 19.89%

Gross profit
(2,773) (2,385) 16.27%
Net operating expenses
Operating profit 1,891 1,505 25.64%

Finance income 17 31 (45.61%)

Finance expense (16) (62) (74.19%)

1,892 1,474 28.36%

Profit on ordinary activities before
taxation
(474) (354) 33.90%
Tax on profit on ordinary activities
Net income 1,418 1,120 26.60%

37
By anlysing the summarized profit & loss account , the following trends are
presented:
 Operating profit increased in 2009 by 25.64% as compared to 2008.
 Profit before tax increased by 28.63% as compared to 2008.
 Finance income and finance expenses both are decreased but expenses are decreased at a
higher rate than finance income.
 Net revenue increased by 18.13% in 2009 as compared to 2008.
 Operating profit increased at a high rate in 2009 as compared to 2008.
 Gross profit and Net profit, both are increased by 19.89% and 26.6% as compared to
previous year.

COMPARATIVE FINANCIAL POSITION STATEMENT

(as on 31st December, 2009)

Particulars As on As on % change
31.12.2009 31.12.2008

£m £m

LIABILITIES

Capital and reserves

72 72 -
Share capital
Merger reserve (14,229) (14,299) -

Hedging reserve (2) 13 -

Available for sale reserve - (8) -

Foreign currency translation reserve 229 420 (45.48%)

17,942 17,024 5.39%

Retained earnings
2 2 -
Equity minority interests
Non-current liabilities

38
 4 4 -
Borrowings
1,145 1,172 (2.30%)
Deferred tax liabilities
393 316 24.36%
Retirement benefit obligations
36 31 16.13%
Provisions for liabilities and charges
158 128 23.44%
Tax liabilities
20 21 (4.76%)
Other non-current liabilities
Current liabilities

132 1,571 (91.60%)

Borrowings
88 73 20.55%
Provisions for liabilities and charges
2,286 2,189 04.43%
Trade and other payables
385 383 00.52%
Tax liabilities
8,661 9,182 (5.67%)
Total liabilities
ASSETS

Non-current assets

Goodwill and other intangible assets 6,090 6,454 (5.64%)

Property, plant and equipment 639 637 0.31%

Deferred tax assets 121 93 30.11%

Available for sale financial assets 16 25 (36%)

Other receivables 25 19 31.57%

Current assets

Inventories 486 556 (12.59%)

Trade and other receivables 928 906 2.43%

Derivative financial instruments 1 69 (98.55%)

39
Available for sale financial assets 4 6 (33.33%)

Cash and cash equivalents 351 417 (15.83%)

Total assets 8,661 9,182 (5.67%)

By analyzing the balance sheet of this company, the following trends are presented:
 Total assets and total liabilities are decreased from 2008 to 2009 by 5.67%.
 Among all non current assets, some assets are decreased but some are increased with higher
rate. Like goodwill and intangible assets decreased and property plant and equipments
increased.
 Among all current assets, mostly assets are decreased and only one item increased which was
trade and other receivables.
 Short-term borrowings decreased at a very high rate by 91.60% whereas all other current
liabilities increased at low rate.
 Share capital and long term borrowing remain same for both the year.

Ratio Analysis
1) CURRENT RATIO:
Current Ratio= Current Assets/Current Liabilities
In 2009:
Current Assets=486+928+1+4+351=1170m£
Current Liabilities=132+88+2286+385=2891m£
Current Ratio=1170/2891=0.40:1
In 2008:
Current Assets=556+906+69+6+417=1954m£
Current Liabilities=1571+73+2189+383=4216m£
Current Ratio=1954/4216=0.46:1
2) QUICK RATIO:

40
 Quick Ratio=Quick Assets/Current Liabilities
In 2009:
Quick Assets=928+1+4+351=684m£
Current Liabilities= 2891m£
Quick Ratio=684/2891=0.24:1
In 2008:
Quick Assets=906+69+6+417=1398 m£
Current Liabilities=4216 m£
Quick Ratio=1398/4216=0.33:1
3) GROSS PROFIT RATIO:
Gross Profit Ratio=Gross profit/Net sales * 100
In 2009:
Gross Profit =4664 m£
Net sales = 7753 m£
Gross Profit Ratio=4664/7753 * 100=61.75%

In 2008:
Gross Profit =3890 m£
Net sales = 6563 m£
Gross Profit Ratio=3890/6563* 100=59.27%
4) NET PROFIT RATIO:
Net Profit Ratio=Net profit/Net sales * 100
In 2009:
Net Profit =1418 m£
Net sales = 7753 m£
Net Profit Ratio=1418/7753 * 100=18.29%%

41
In 2008:
Net Profit =1120 m£
Net sales = 6563 m£
Net Profit Ratio=1120/6563* 100=17.07%

(approximately)

RATIOS IN 2009 IN 2008

Current Ratio 0.40:1 0.46:1
Quick Ratio 0.24:1 0.33:1
Gross Profit Ratio 61.57:1 59.27%
Net Profit Ratio 18.29% 17.07%

The above table shows the various ratios:- both current ratio and quick ratio is liquidity ratio.
The ideal ratio for current ratio is 2:1 and ideal ratio for quick ratio is 1:1. In these table, current ratio
of both year is lower than the ideal ratio which shows that there is not enough current assets which
make the company able to pay its current liabilities on time and quick ratio is also lower than the
ideal ratio which shows that bank have not enough liquid assets to pay their current liabilities.
Therefore bank should maintain its some assets in the form of current assets and among it some
assets in the form of liquid assets such as cash, marketable securities etc.
Gross profit ratio and Net profit ratio and are profitability ratio. The higher the profitability ratio of
any organization is show the better position of that organization. All profitability ratio of this
company of current year is higher than its previous year. This shows better position of the company
in the current year as compared to previous year.

42
Graphical analysis
Growth in Net Revenue

YEAR 2008 2009

NET 6.6 7.8

REVENUE(£bn)

NET REVENUE GROWTH

7.8
7.8
7.6
7.4
7.2
REVENUE(
7
BILLION
6.8 6.6
POUND)
6.6
6.4
6.2
6
2008 2009
YEAR

Net revenue increased in 2009 as compared to 2008 from 6.6 billion£ to 7.8 billion£.

43
 Growth in Net Income

YEAR 2008 2009

NET 1120 1418

INCOME(£m)

NET INCOME GROW TH

1600 1418
1400
1120
1200
N ET 1000
IN C OME(MI
800
LLION
POU N D ) 600
400
200
0
2008 2009
YEAR

Net income increased in 2009 as compared to 2008 from 1120 million£ to 1418 million£.

44
 Growth in Dividends
YEAR DIVIDEND PAID(£m)

2009 648

2008 441

2007 358

D IV ID E N D P A ID

700
648
600
500
DIVIDEND(POUND IN

441
400
MILLIONS)

358 d ivid e n d
300
200
100
0
2007 2008 2009
YEA R

There was high growth in dividend paid by the company. It paid 358 million £ in 2007 which
increased to 441 million£ in 2008 and increased to 648 million£.

45
 Performance By different categories
DIFFERENT SHARE IN
CATEGORIES REVENUE£m

Fabric Care 1,578

Surface Care 1,290

Dishwashing 843

Home Care 1,036

Health & Personal Care 2,078

Other Household 65

Pharmaceuticals 588

Food 275

Total Revenue 7753

Share of different Category in Net Revenue

Fabric Care
4% Surface Care
1% 8% 20%
Dishwashing
Home Care
26% 17% Health & Personal Care
Other Household
13% 11%
Pharmaceuticals
Food

46
The above chart shows the contribution of various categories to the company’s revenue. The
Company benefits from many very strong market positions for its brand portfolio. Excluding
Laundry Detergent and Fabric Softener, the Company is the world market leader in household
cleaning products and has leading positions in selected health & personal care categories. These
positions derive from the strength of the Company’s leading brands, described as Power brands,
which are the flagship brands in the Company’s five major categories and on which the Company
focuses the majority of its efforts and investment.

Peer performance comparisons

Underlying NR / NI growth 2005-2008

COMPANY Net Revenue Growth % Net Income / EPS Growth

CAGR 2005-2008 % CAGR 2005-2008

Procter & Gamble +5 +15

Colgate +8 +9

Clorox +5 -7

Sara Lee +4 -6

Henkel +5 +4

Unilever +6 +11

Peer Group Average +5 +5

Reckitt Benckiser +9 +19

Source: Credit Suisse, RB, analyst forecasts

Net revenue growth at constant FX and adjusted to exclude

47
mergers/acquisitions/disposals and major corporate restructurings

SWOT ANALYSIS
(FINANCIAL ASPECT)
Strength

48
 • Company’s net revenue is continuously increasing.

• Main focus of company is its power brands containing 17 items.

• Strategy to transform the industry average net revenue growth into attractive profits and cash
flow.

Weakness
• Main weakness of company is its liquid position. The company has very less liquid asset.

Opportunity
• Scope for continuous innovation which help in tapping new market share.

• Many developing markets like South Asian and African countries including INDIA.

Threat
• Demand for the Company’s products may be adversely affected by changes in consumer
preferences. .

• Competition may reduce the Company’s market shares and margins.

• The Company’s new product pipeline may not generate consumer-relevant innovation and
improvement to fuel growth and build market shares

RECOMMENDATIONS

 The company should more focus on maintaining its liquid position by having more liquid
assets in the form of cash and cash equivalents.

49
 The company should also improve its current ratio by having some more current assets. Its
current assets decreased at high rate.

 To maintain its current growth rate, the company should control its operating and non-
operating expenses.

 It is necessary for the company to adopt a good marketing strategies for its new 10 products
which will launch in 2010 to increase its revenue.

 To face severe competition from its competitors like Proctor & Gamble, HUL ETC, the
company should always strive for better market position and have a high market share.

 Besides these quantitative aspects, the company should also focus on qualitative aspects like
information technology, employees satisfaction and customer preferences etc.

BIBLIOGRAPHY

50
Books:-
 Monga J.R., “Introduction to Financial Accounting”, Mayur Paperbacks, Ist Edition, 2005.
 Maheshwari S.N., “Accounting for Management”, Sultan Chand & Sons, IInd Edition, 2009.

Websites:-
 http://www.rb.com

 http://www.rb.com/RB-worldwide/RB-History

 http://www.reckittbenckiser.jobs/about

 http://www.reckittbenckiser.jobs/about/brands

 http://www.rb.com/Innovators/The-innovation-story-at-RB

 http://www.rb.com/Innovators/Awards

 http://www.reckittbenckiser.jobs/about/csr

 http://www.reckittbenckiser.jobs/about/strategy

 http://www.rb.com/new2010

 http://www.rb.com/Our-Brands/Category-Performance

51
ANNEXURE

52
 PROFIT AND LOSS A/C
For The Year Ended December 31,2009

AS ON AS ON
PARTICULARS 31.12.2009(£m) 31.12.2008(£m)
Net revenues 7,753 6,563
Cost of sales (3,089) (2,673)
4,664 3,890
Gross profit
(2,773) (2,385)
Net operating expenses
Operating profit 1,891 1,505
Finance income 17 31
Finance expense (16) (62)
1,892 1,474
Profit before taxation
(474) (354)
Tax on profit on ordinary activities
Net income 1,418 1,120
EARNING PER SHARES:

Basic 198.9p 157.6p

Diluted 194.7p 154.7p

53
 BALANCE-SHEET
(Balance sheet as on DECEMBER 31,2009)

Particulars As on As on
31.12.2009(£m) 31.12.2008(£m)

LIABILITIES

Capital and reserves

72 72
Share capital
Merger reserve (14,229) (14,299)

Hedging reserve (2) 13

Available for sale reserve - (8)

Foreign currency translation reserve 229 420

17,942 17,024
Retained earnings
2 2
Equity minority interests
Non-current liabilities

4 4
Borrowings
1,145 1,172
Deferred tax liabilities
393 316
Retirement benefit obligations
36 31
Provisions for liabilities and charges
158 128
Tax liabilities
20 21
Other non-current liabilities
Current liabilities

54
 132 1,571
Borrowings
88 73
Provisions for liabilities and charges
2,286 2,189
Trade and other payables
385 383
Tax liabilities
8,661 9,182
Total liabilities
ASSETS

Non-current assets

Goodwill and other intangible assets 6,090 6,454

Property, plant and equipment 639 637

Deferred tax assets 121 93

Available for sale financial assets 16 25

Other receivables 25 19

Current assets

Inventories 486 556

Trade and other receivables 928 906

Derivative financial instruments 1 69

Available for sale financial assets 4 6

Cash and cash equivalents 351 417

Total assets 8,661 9,182

55