2. Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance
2
2
3. Dabur India: Overview
Established in
E t bli h d i 1884 - more ththan 125 Twelve Billion Rupee Brands
l illi d
Years of Trust & Excellence
Among top 4 FMCG companies in India
World’s largest in Ayurveda and natural
g y
healthcare
Revenue of Rs. 53.2 billion and profits of
Rs. 6.4 billion in FY2011-12
Strong brand equity
Dabur is a household brand
Vatika and Real are Superbrands
Hajmola , Real & Dabur ranked among
India’s Most Admired Brands
12 Brands with sales of over Rs. 1 billion
each
Wide distribution network covering 3.4
g
million retailers across the country
Dabur has been Dabur ranked Dabur ranked
17 world class manufacturing plants ranked as the Most as No. 2 Most the No. 2 Indian
Trusted Leader in Social Brand of Green Brand by
catering to needs of diverse markets the Healthcare India, in the Green Brands
category in the Social Media Global Survey
Strong overseas presence with c. 30%
c Brand Trust Report report launched
contribution to consolidated sales 2012 at Click Asia
Summit 2012
“Dabur has surpassed the US$ 1 billion mark in revenues” 3
3
4. Dabur: Vision and Core Values
Vision •Dedicated to the health and well being of every household
Ownership
Passion for
Integrity
Winning
Core
Values
People
Innovation
Development
Consumer
Team Work
Focus
4
4
5. Key Milestones
1884 1972 1986
•Dr. SK Burman •The company •Registered as
started an Ayurvedic shifted base to Public Limited
Pharmacy in Kolkatta Delhi from Kolkata Company
1994 1998 2003
•Listed on the •Professionalized with •Pharmaceutical Business
Bombay Stock
B b St k Burman Family handing
B F il h di de-merged t focus on core
d d to f
Exchange over day to FMCG business
management
2004 2005 2006
•International •Acquired Balsara •Dabur Figured in Top
Business set up in strengthening Oral 10 Great Places To
Dubai to tap overseas care & gaining entry Work
opportunity into Home care
2008 2010 2012
•Acquired Fem Care • Overseas acquisitions - •Crossed Rs. 50 bn
Pharma entering Hobi Group, Turkey and
p, y mark in annual
mainstream Skin care Namaste Laboratories, US revenues and Market
Cap of c. US$4 billion
5
5
6. Performance at a Glance (5 years)
Net Sales
Sales (Rs. billion) Net Profit (Rs. billion)
6.5
52.8 5.7
5.0
40.8
33.9 3.9
28.1 3.3
23.6
FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
EBITDA (Rs. billion)
(R billi ) Shareholders F d (R billion)
Sh h ld Funds (Rs. billi )
9.5
8.3 17.2
6.7 13.9
5.2
4.4 9.3
8.2
6.2
FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12
6
6
7. Global Footprint
UK
Turkey
Canada
Nepal
UAE
U.S. Egypt
B’Desh
Nigeria
Domestic Mfg.
Locations
Key markets
Manufacturing Facilities
Our strategy is to localize manufacturing, supply chain
and product offerings to suit consumer requirements
in each geography
7
7
8. Distribution Overview
Factory
(Carry & Forward Agents)
Depot
Stockists Super stockists Insti Stockists
Modern Trade
Military / CSD
Stockist
Wholesalers Sub stockists
Retail trade Rural trade Unit Canteens Insti customers
Direct reach
Shoppers & Consumers
0.7 Mln outlets
Direct + Indirect Reach c. 3.4 mn Retail Outlets 8
8
9. Research & Development Focus
Team of scientists including
Ayurvedic doctors, Pharmacists, Strong New Product Development
Agronomists, Botanists, Tissue Ayurvedic Medicines
Culture specialists, etc.
Personal Care
Foods
Home Care
Agro Biotech Initiatives
OTC Healthcare
Protecting endangered herbs
Technical assistance to farmers
Contract cultivation of herbs
Green House at Nepal
Dabur Research Facilities Agronomy Initiatives : Greenhouse at
Dabur Nepal & Uttaranchal
9
9
10. Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance
10
10
11. FMCG Industry Snapshot
FMCG Industry Size (in Rs. bn) FMCG Industry Urban (in Rs. bn) FMCG Industry Rural (in Rs. bn)
2,000
1,800
1,807 1,400
800
1,600 1,566 1,201 700
606
1,200
1 200
1,400 1,040
1 040 600
526
1,000
1,200 500
1,000 800 400
800 600 300
600
400 200
400
200 100
200
0 0 0
MAT Jun '11 MAT Jun '12 MAT Jun '11 MAT Jun '12 MAT Jun '11 MAT Jun '12
Source: AC Nielsen
Overview
FMCG sector in India continues on a strong growth path with both Urban and
Rural India contributing to growth Rural India contributes to c one third of FMCG
growth. c.
sales in India
Growth driven by increasing consumption led by rise in incomes, changing
lifestyles and favorable demographics
As per a study conducted by Booz & Company, FMCG sector is expected to grow
in the range of 12% to 17% upto 2020 and would touch a market size between of
Rs. 4,000 to Rs. 6,200 billion
11
11
12. Penetration Levels: Sufficient Headroom
Rural Penetration Urban Penetration
90%
80%
80% 77%
70% 67%
57% 59%
60%
50%
42%
40% 37%
32%
30% 26%
18% 18% 19%
20%
10%
3% 5% 4%
2%
0%
Toothpaste Shampoo Hair Oil Skin Cream Mosquito Instant Hair Dyes Floor Cleaners
Repellants Noodles
Source: Industry data
Low penetration levels offer room for growth across consumption categories
Rural penetration still lower but catching up with urban penetration levels
12
12
13. Per Capita Consumption: Room for Growth
India has low per capita consumption as compared to other emerging economies
Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$)
in US$ in US$
9 3 2.7
27
7.4 7.7
77
8
2.5
2.4
7
6 2
5
1.5
4 3.2 1.0 1.1
3 1
2
0.8 0.5 0.3
1 0.3
0 0
China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand
Toothpaste – Per Capita Consumption (in US$)
in US$
3.5
2.9
3
2.5
2.0
20
2
1.5
1.0
1
0.5 0.4
0.5
0
China Indonesia India Malaysia Thailand
Source: MOSL
13
13
14. Key Players: FMCG
in Rs. million
Rs
Company Key Categories Sales Profit Market Cap
Soaps, Detergents,
Hindustan Unilever Ltd 229,877
, 27,907
, 1,031,500
, ,
Personal Care, Foods
Care
Food, Beverages, Infant
Nestle India Ltd* 74,908 9,616 425,135
nutrition
Personal, Health &
,
Dabur India Ltd 52,832
52 832 6,449
6 449 209,133
209 133
Homecare, Foods
Godrej Consumer Hair Care, Soaps 48,509 7,267 210,268
Colgate Palmolive (I) Ltd Oral Care & Toiletries 26,239 4,465 161,865
Glaxo Smithkline Consumer* Consumer Health Care 26,855 3,552 118,041
Marico Ltd. Hair care, Food, Skincare 39,968 3,171 119,269
Britannia Industries Ltd Biscuits 54,607 1,995 54,135
Procter & Gamble Hygiene Feminine Hygiene,
10,003 1,509 74,255
and Health Care^ personal care
Market Cap as of Aug 8 2012
Cap. 8,
Source: Published results for year ending 31.03.12
*Year ending 31.12.11
^Year ending 30.06.11
14
14
15. Dabur: Strong Presence in FMCG Categories
Category Position Market Share Key Brands
Dabur Amla hair Oil, Vatika hair oil &
Hair Care 3 12% Vatika Shampoos
Red toothpaste, Babool, Meswak, Red
Oral Care 3 13% toothpowder
Ayurvedic
1 67% Dabur Chyawanprash
Tonics
Digestives 1 56% Hajmola
Fruit Juices 1 52% Real Fruit Juices, Real Activ
Honey 1 50% Dabur Honey
Glucose 2 25% Dabur Glucose
Skin Care
1 50% Fem
(Bleaches)
Air Freshener 1 40% Odonil
Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives
15
15
16. Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance
16
16
17. Business Structure
Dabur India
Limited
Domestic Business International
(69.7%) Business (30.3%)
Consumer Dabur Hobi Namaste
Foods Retail Others*
Care International Group Labs. LLC
(10.1%)
( ) (
(0.8%) ) (
(2.7%))
(56.0%)
(56 0%) (17.5%)
(17 5%) (2.6%)
(2 6%) (10.3%)
(10 3%)
Note: % figure in brackets indicate % share in Consolidated Sales for FY12
* Others includes Commodity Exports etc 17
17
18. Consumer Care Overview
Category-wise Share of Consumer Care Sales
Health
Oral Care
Supplements
17%
21%
Skin Care
6%
Digestives
Home Care 8%
6%
OTC & Ethicals
Hair Care 12%
30%
Hair Care is the largest category and contributes to 29% of Consumer Care sales
Health Supplements contribute to 22% of Consumer Care sales
Oral Care, comprising toothpastes and toothpowders contributes to 18% of
Consumer Care sales
Note: Percentage share based on revenue for FY12 18
18
19. Consumer Care Categories
Hair Oils
Key Brands
#2 player in
Hair Oils
Dabur Amla: Vatika: Value added Anmol Hair Oil:
Largest brand in coconut oil Value proposition
the portfolio
Shampoo
Key Brands
#4 player in
Shampoos
Vatika range of shampoos
19
19
20. Consumer Care Categories
Oral Care
Key Brands
#3 player in
Toothpastes
#2 player in
Meswak: Premium
Toothpowder Dabur Red: Toothpaste Babool: Targeted at
therapeutic
& Toothpowder economy segment
toothpaste
Skin Care
Key Brands
#2 player in
l i
Skin
Lightening
Gulabari
G l b i range off Uveda: Range of
U d R f
Fem range of Bleaches rose based skin Ayurvedic Skin
care products Care
20
20
21. Consumer Care Categories
Home Care
Key Brands
#1 player in Air
Fresheners
#1 player in
p y
Mosquito Repellant
Creams
Odonil: Air freshner Odomos: Mosquito Sanifresh:
#2 player in Toilet
l i T il t range: LLargest brand
tb d repellant skin cream
ll t ki Toilet cleaner
in the portfolio
Cleaners
Odonil became one of the Billion Rupee Brands during 2011-12
21
21
22. Consumer Care Categories
Health S
H lth Supplements
l t
Key Brands
#1 player in
Ayurvedic Tonics
y
#2 player in
Glucose
Dabur Honey: Largest
Dabur Chyawanprash: Dabur Glucose: branded honey in the
#1 player in Largest selling health 2nd largest country; growing
supplement in the player in the
branded Honey country
category through replace
country sugar strategy
g gy
Digestives
Key Brands
#1 player in
Herbal
Digestives
Hajmola: Flagship brand Hajmola tasty
for branded Digestives digestive candy
22
22
23. Consumer Care Categories
OTC and Ethicals
d Ethi l
Description
CHD Structure
Repository of Dabur’s Ayurvedic Healthcare
knowledge
Range of over 260 products
Focusing on multiple therapeutic areas. OTC (64%) ETHICAL (36%)
Distribution coverage of 200,000 chemists, Generics Tonic
~12,000 vaidyas & 12,000 Ayurvedic
pharmacies Branded Products Classicals
Focus on growing the OTC Health-Care Branded Ethicals
portfolio aggressively
Healthcare Focus
OTC Healthcare is Rs.130 billion size industry
Expected to grow at 14-15% p.a. as
preference for Over-the-Counter products
accelerates
Dabur to expand its presence by :
Consolidating / expanding current
portfolio
Launching new products in emerging
therapeutic areas
Look at inorganic opportunities
Acquired the energizer brand, Thirty Plus
from Ajanta Pharma in May 2011 Range of OTC products
23
23
24. Foods Business
Foods portfolio comprises Juices and Culinary range
Juices are under the brands – Real, Activ and Burrst
Culinary range is under Hommade brand
Foods business has surpassed the Rs. 5 billion mark in sales
Foods
Key Brands
#1 player in
Fruit Juices
Real: Flagship
R l Fl hi Real Activ: Range
beverages brand of 100% pure juice
24
24
25. International Business
Started as an Set up a franchisee at Renamed franchisee as Dabur Building scale- c 30% of
scale c.
Exporter Dubai in 1989 International Ltd Consol. Sales
Focus on Order Demand generation Local operations further strengthened High Levels of Localization
fulfillment through led to setting up of Set up new mfg facilities in Nigeria,RAK Global Supply chain
India Mfg. mfg in Dubai & Egypt & Bangladesh
1980’s Early 90’s 2003 Onwards Today
Highlights High Growth in IBD
Dabur s
Dabur’s overseas business contributes c c. 18000
in Rs million
Rs.
16,161
30% to consolidated sales led by CAGR of 16000
32% in last 6 years 14000
12000
Focus markets: 10000 8,922
GCC 8000
6,025
4,770
,
Egypt
E t
6000
3,760
3 760
4000 2,258 2,917
Nigeria 2000
1,281 1,807
Turkey 0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Bangladesh
Nepal
p
International Sales Breakdown (FY12)
U.S.
High level of localization of manufacturing
and sales and marketing
Leveraging the “Natural” preference among
local consumers to increase share in personal
care categories
Sustained investments in brand building and
marketing
25
25
26. Africa and Middle East Overview
Real GDP Growth Rates (YoY) in % Africa’s Bulging Base
Source: IMF Source: McKinsey on Africa, June 2010
Middle East and Africa have witnessed stable GDP growth rates
Between 2005 and 2015, it is estimated that in Africa, the share of individuals earning
above US$1,000 will grow from 39% to 55%.
The rapidly emerging African middle class could number as many as 300 million, out of a
total population of one billion
The sheer volumes and the growth in the number of aspirational consumers with
disposable income creates huge opportunities for consumer products companies
26
26
27. Acquisition of Hobi Group, Turkey
Acquisition of Hobi Group, Turkey for a total
consideration of US$ 69 Million completed on
October 7, 2010
Hobi manufactures and markets hair, skin and
body care products under the brands Hobby
and New Era
Product range of the company is
complementary to our product range
Acquisition provides an entry into another
attractive emerging market and a good
platform to leverage this across the region
27
27
28. Acquisition of Namaste Laboratories
Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake
in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011
Namasté is a leading ethnic hair care products company, having products for women of
colour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and African
markets
The company markets a portfolio of hair care products under the brand ‘Organic Root
Stimulator’ and has a strong presence in ethnic hair care market for women of colour.
Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5
billion and tap into significant market opportunity in the fast growing hugely populated (~1
growing,
Bn) yet highly underpenetrated consumer markets of Sub Saharan Africa
We intend to grow the non U.S. business ahead of U.S. business and are taking initiatives in
this direction
We have commenced local manufacturing for Namaste at our RAK facility in UAE
28
28
29. Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance
29
29
30. Growth Strategy
Three pronged Growth Strategy
Expand Innovate Acquire
Our differentiation is the herbal and ayurvedic platform
Expand
Strengthening presence in existing categories and markets as well entering new geographies
Maintain dominant share in categories where we are category builders like Health Supplements,
Honey etc. and expand market shares in other categories
Calibrated international expansion – local manufacturing and supply chain to enhance flexibility
p g pp y y
/ reduce response time to change in market demands
Innovate
Strong focus on innovation. Have rolled out new variants & products which have contributed to
around 5-6% of our growth p.a.
5 6%
Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste)
Acquire
Acquisitions critical for building scale in existing categories & markets
Should be synergistic and make a good strategic fit
Target opportunities in our focus markets
30
30
31. Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance
31
31
32. Recent Financial Performance
16000 14,620
14 620 Consolidated Sales grew by 21 4% during
21.4%
14000 12,046
12000 Q1FY13
10000
Revenue 8000 Sales growth was a combination of volume
(in Rs. mn)
6000 growth, price increases and marginal
4000
2000 translation gains
l i i
0
Q1 FY12 Q1 FY13
3,000 EBITDA i
increased b 20 5% and EBITDA margin
d by 20.5% d i
2,403
2,500
1,995 was stable at 16.4% in Q1FY13 v/s 16.6% in
2,000 Q1FY12
EBITDA 1,500
(
(in Rs. mn)
) 1,000
Material costs eased, with material costs at
500 50.0% of sales in Q1FY13 v/s 52.2% in Q1FY12
/
0 Adpro during the quarter increased to 15.7% as
Q1 FY12 Q1 FY13 compared to 12.6% in previous year
2000 Above factors translated into growth in
1,546
1500 1,279 Consolidated PAT (before extraordinary item)
PAT* 1000
of 20.8%.
(
(in Rs. mn)
) Extraordinary loss of Rs. 49 million due to sale
y
500
of stake in Weikfield International (UAE)
0
Q1 FY12 Q1 FY13 32
* Before Extraordinary Items 32
33. Market Cap & Shareholding
Cumulative Returns to Shareholders^ Shareholding Structure*
250%
Others,
200%
188% 193% DIIs, 6.7% 6.9%
166%
FIIs, 17.7%
150%
100%
59% Promoters,
50% 68.7%
0%
Jun‐09 Jun‐10 Jun‐11 Jun‐12
^Based on an investment made in June 2008 *As on June 30, 2012
Dabur has provided strong returns to its shareholders over the years
At present, Dabur has a market cap of INR 209 billion (as of Aug 8, 2012)
33
33
34. Consolidated P&L
In Rs. million Q1FY13 Q1FY12 YoY (%)
Net Sales 14,619.7 12,045.8 21.4%
Other Operating Income 97.3 65.0
Material Cost 7,316.4 6,289.8 16.3%
% of Sales
% of Sales 50.0%
50 0% 52.2%
52 2%
Employee Costs 1,062.0 913.3 16.3%
% of Sales 7.3% 7.6%
Ad Pro 2,292.1 1,514.8 51.3%
% of Sales 15.7% 12.6%
Other Expenses 1,888.1 1,549.2 21.9%
% of Sales 12.9% 12.9%
Other Non Operating Income 244.6 151.3 61.7%
EBITDA 2,403.0 1,995.1 20.4%
% of Sales
% of Sales 16.4% 16.6%
Interest Exp. and Fin. Charges 212.6 145.0 46.6%
Depreciation & Amortization 267.0 248.4 7.5%
Profit Before Tax (PBT) 1,923.4 1,601.7 20.1%
Tax Expenses 377.7 322.5 17.1%
PAT(Before extraordinary item)
PAT(B f di i ) 1545.7
1545 7 1279.2
1279 2 20.8%
20 8%
% of Sales 105.7% 106.2%
Extraordinary Item 49.3
PAT(After extraordinary Items) 1496.4 1279.2 17.0%
Minority Interest ‐ (Profit)/Loss
y ( )/ 2.4 1.8
PAT (After Extra ordinary item & Minority Int) 1494.0 1277.4 17.0%
% of Sales 10.2% 10.6%
34
34
35. Consolidated Statement of Assets and Liabilities
As at As at
In Rs. mn
Rs
(Period ended) 30/06/2012 (previous year end) 31/03/2012
A EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital 1,743 1,742
(b) Reserves and surplus 16,708 15,427
(c) Money received against share warrants
Sub total Shareholders
Sub-total - Shareholders' funds 18,451 17,169
2 Share application money pending allotment
3 Minority interest * 23 33
4 Non-current liabilities - -
(a) Long-term borrowings 8,168 7,272
(b) Deferred tax liabilities (net) 288 274
(c) Other long-term liabilities - -
(d) Long term provisions
Long-term 6,751
6 751 6,576
6 576
Sub-total - Non-current liabilities 15,207 14,122
5 Current liabilities
(a) Short-term borrowings 3,210 3,471
(b) Trade payables 8,887 8,592
(c) Other current liabilities 888 1,198
(d) Short-term provisions 1,611 1,639
Sub-total - Current liabilities 14,597 14,900
TOTAL - EQUITY AND LIABILITIES 48,278 46,223
B ASSETS
1 Non-current assets
(a) Fixed assets 9,216 8,854
(b) Goodwill on consolidation * 7,804 7,826
(c) Non-current investments 743 893
(d) Deferred tax assets (net) - -
(e) Long-term loans and advances 4,649 4,327
(f) Other non-current assets 661 719
Sub-total - Non-current assets 23,074 22,618
2 Current assets
(a) Current investments 4,686 3,932
(b) Inventories 8,307 8,239
(c) Trade receivables 4,452 4,617
(d) Cash and cash equivalents 4,853 4,484
(e) Short-term loans and advances 2,038 1,543
(f) Other current assets 868 789
Sub-total - Current assets 25,205 23,605
35
TOTAL - ASSETS 48,278 46,223
35
36. Recent Accolades
Dabur has been voted by Dabur has been ranked Dabur ranked as No. Dabur India Ltd has been
consumers as Indian as the Most Trusted 2 Most Social Brand ranked among the Top 10
PowerBrand 2011-2012
P B d 2011 2012 Leader i th H lth
L d in the Healthcare of India in the Social
India, ‘Best C
‘B t Companies To Work
i T W k
category in the Brand Media report For’ in the Manufacturing
Trust Report 2012 launched at Click sector by Business Today
Asia Summit 2012
Dabur ranked 184 in Dabur's greenfield unit in Dabur's Baddi Units Dabur ranked 37 in list
the FE-500 list of Baddi awarded LEED awarded Silver of India's Greatest
India's Finest India Silver Rating for Certification for Wealth Creators 2011.
Companies achieving Green Building Enhancing Manufacturing
h f Dabur has been ranked
Standards & Supply Chain 30 in the list of India's
Excellence, by ET–India Top Employment
Manufacturing Excellence Generators by Business
cell & Economy magazine
36
36
37. Disclaimer
Some of the statements made in this presentation contain forward looking information that involve a
number of risks and uncertainties Such statements are based on a number of assumptions estimates
uncertainties. assumptions, estimates,
projections or plans that are inherently subject to significant risks, as well as uncertainties and
contingencies that are subject to change. Actual results can differ materially from those anticipated in the
Company´s forward‐looking statements as a result of a variety of factors, including those set forth from
time to time in the Company´s press releases and reports and those set forth from time to time in the
Company´s analyst calls and discussions. We do not assume any obligation to update the forward‐looking
p y y y g p g
statements contained in this presentation.
No part of this presentation shall form the basis of or may be relied upon in connection with any contract
or commitment. This presentation is being presented solely for your information and is subject to change
without notice.
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37