Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (March 2011)
37 slides from Dabur India's investor presentation, March 2011
Slide 1: Dabur India Ltd Corporate Profile
Dabur India Ltd Corporate Profile March, 2011 1 1
Slide 2: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 2 2
Slide 3: Dabur India: Key Highlights
Dabur India: Key Highlights 9 Established in 1884 - more than 125 Years Ten Billion Rupee Brands of Trust & Excellence 9 Among top 4 FMCG companies in India 9 World’s largest in Ayurveda and natural healthcare 9 Revenue of Rs.Rs 34 billion and profits of Rs. Rs 5 billion in FY2009-10 9 Strong brand
Slide 4: Strong Financials
Strong Financials Sales in Rs. million 40000 34 167 34,167 35000 28,341 30000 23,963 25000 20,803 17,565 20000 12,004 12,849 12,356 14,170 15000 10,997 10000 5000 0 FY01 FY02 FY03 FY04^ FY05 FY06* FY07 FY08 FY09 FY10** EBITDA Margin (in %) Net Profit in % in Rs. million 22.0% 19 6% 19.6% 6000 20.0%
Slide 5: Key Milestones
Key Milestones 1884 1972 1986 1994 •Dr. SK Burman started •The company shifted •Registered as Public •Listed on the Bombay an Ayurvedic Pharmacy base to Delhi from Limited Company Stock Exchange in Kolkatta o atta Kolkata 1998 2003 2004 2005 •Professionalization •Pharmaceutical •International Busine
Slide 6: Global Footprint
Global Footprint UK Turkey y Canada Nepal UAE U.S. Egypt B’Desh Nigeria Australia Domestic Mfg. Locations Key markets Manufacturing Facilities Our strategy is to localize manufacturing, manufacturing supply chain and product offerings to suit consumer requirements in each geography 6 6
Slide 7: Robust Distribution Network
Robust Distribution Network Factory C&FA (Carry & Forward Agents) St ki t Stockist S Super St Stockist ki t Institutions & Modern trade Wholesalers Sub Stockist RETAIL TRADE CONSUMERS Direct + Indirect Reach covering 2.8 Mn Retail Outlets 7 7
Slide 8: Research & Development Strengths
Research & Development Strengths Team of scientists including Strong New Product Development Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue 9 Ayurvedic Medicines Culture specialists, etc. 9 Personal Care 9 Foods 9 Home Care Agronomy Initiatives 9 OTC Healthcare 9 Protecting endangere
Slide 9: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 9 9
Slide 10: FMCG Industry Snapshot
FMCG Industry Snapshot Key Highlights FMCG Industry Size (India) FMCG industry size at US$30 billion in in Rs. billion 1,600.00 CY10 and expected to grow to US$74 1,339 1 161 1,161 1,400.00 billion in 2018* 1,200.00 1,024 Industry has grown at 15% in CY10 1,000.00 856 800.00 755 Rural sector a
Slide 11: FMCG Growth Story
FMCG Growth Story India FMCG Sector – Volume and Value Growth Rate (Y-o-Y %) High Growth Phase Source: Industry data, Standard Chartered Research 9 India’s FMCG sector reported steady sales CAGR of 11.2% over FY00-10 on the back of strong annual volume growth of ~8.5%. 9 Growth being driven by incre
Slide 12: Penetration Levels: Sufficient Headroom
Penetration Levels: Sufficient Headroom Rural Penetration Urban Penetration 90% 80% 80% 77% 70% 67% 59% 60% 57% 50% 42% 40% 37% 32% 30% 26% 20% 18% 18% 19% 10% 5% 4% 3% 2% 0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito Instant Hair Dyes Floor Cleaners Repellants Noodles Source: Industry Data 9 L
Slide 13: Per Capita Consumption: Room for Growth
Per Capita Consumption: Room for Growth India has low per capita consumption as compared to other emerging economies Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) in US$ in US$ 9 3 2.7 7.4 7.7 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 Chi
Slide 14: Key Players: FMCG
Key Players: FMCG USD Million Company Key Categories Sales Profit Market Cap Soaps, Detergents, Personal Care, Hindustan Unilever Ltd 4,479 538 12,897 Foods Nestle India Ltd* Food,, Beverages, g , Infant nutrition 1,101 , 141 6,867 , Personal, Health & Homecare, Dabur India Ltd 733 108 3,475 Foods B
Slide 15: Dabur: Strong Presence in FMCG Categories
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 Skin Care 3 7% Dabur Gulabari, Fem, Dabur Uveda Ayurvedic 1 66% Dabur Chyawanpras
Slide 16: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 16 16
Slide 17: Business Structure
Business Structure Dabur operates through three focused Strategic Business Units Revenue Business Unit Description Share FMCG portfolio comprising four distinct businesses: Consumer Care • Personal Care 72% Division • Health Care • Home Care • Foods Range of ethical and OTC products Consumer Health
Slide 18: Consumer Care Division Overview
Consumer Care Division Overview FPD HCPD Balsara Foods FEM 2003-2004 2006-2007 2007-2008 2008-2009 CCD FPD: Family Products Division HCPD: Health Care Products Division Balsara and Fem were acquisitions Foods division was a 100% subsidiary of DIL Category-wise Share of CCD Sales CCD Sales - Historic
Slide 19: Brand Architecture
Brand Architecture 9 Starting from Ayurveda, the company successfully ventured into herbal arena becoming the ‘Herbal Specialist’ 9 While herbal businesses form the core with 85% of revenues, the company’s growth ambitions are not limited by it. 9 A robust brand architecture ensures that the core va
Slide 20: Consumer Care Categories
Consumer Care Categories Hair Oil Key Brands Market Share 7% 37% 16% 3% 6% 31% Bajaj Dabur Dey's Medical Emami Marico Others Dabur Amla: Vatika: Value added Anmol Hair Oil: Value Share-ACN Share ACN June June, 09 Largest brand in coconut oil Value proposition the portfolio Shampoo Key Brands Market
Slide 21: Consumer Care Categories
Consumer Care Categories Oral Care Market Share Key Brands 13.9% 13.4% 50.0% 22.7% Colgate HUL Dabur Others Dabur Red: Toothpaste Babool: Targeted at Meswak: Premium & Toothpowder economy segment therapeutic Value Share -ACN ACN MAT Dec Dec, 2010 toothpaste Health Supplements Key Brands Chyawanprash
Slide 22: Consumer Care Categories
Consumer Care Categories Foods Key Brands Market Share 13.0% 52.0% 35.0% Dabur Pepsi Others Real: Flagship Real Activ: Range C Company E Est. t MMar, 2010 for f Fruit F it Juice J i category t of 100% pure juice beverages brand Skin Care Market Share* Key Brands 18.0% 58.9% 3.2% 6.4% 6.6% 6.8% Hindu
Slide 23: Consumer Care Categories
Consumer Care Categories Digestives Market Share Key Brands 37% 55% 8% Hajmola: Flagship brand Hajmola tasty Hajmola Satmola Others for branded Digestives digestive candy Value a ue Share-ACN S a e C MAT Dec, ec, 2010 0 0 Home Care Air Fresheners – Market Share Key Brands 20% 26% 5% 20% 30% Odonil A
Slide 24: Consumer Health Division
Consumer Health Division Description CHD Structure 9 CHD: Repository of Dabur’s Ayurvedic Healthcare knowledge 9 Range of over 260 products O C (64%) OTC (6 %) ETHICAL C (36%) 9 Focusing on multiple therapeutic areas. 9 Generics 9 Tonic 9 Distribution coverage of 200,000 9 Branded Products 9 Classic
Slide 25: International Business Division
International Business Division Started as an Set up a franchisee at Renamed franchisee as Dabur Building scale-20% of Exporter Dubai in 1989 International Ltd overall Dabur Sales (FY09) Focus on Order Demand generation Local operations further strengthened High Levels of Localizatio
Slide 26: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 26 26
Slide 27: Growth Strategy
Growth Strategy EXPAND DABUR INDIA LIMITED ACQUIRE INNOVATE THREE PRONGED STRATEGY FOR SUSTAINING GROWTH 27 27
Slide 28: Expansion Strategy
Expansion Strategy Strengthening new categories Targeting inorganic 9 Skin Care: Ayurvedic skin care opportunities range g under a new brand 9 Market Entry: y Acquisitions q launched; Acquisition of Fem critical for building scale in 9 OTC Healthcare: Leveraging existing categories & markets Ayurved
Slide 29: Acquisition of Hobi Group, Turkey
Acquisition of Hobi Group, Turkey 9 Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 9 Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era 9 Product range of the company is complementary to our p
Slide 30: Acquisition of Namaste Laboratories
Acquisition of Namaste Laboratories 9 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 January1, 2011 9 Namasté is a leading ethnic hair care products company, having products for women of
Slide 31: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 31 31
Slide 32: Financial Performance – 9M and Q3 FY 2010-11
Financial Performance – 9M and Q3 FY 2010-11 Sales: 9MFY11 v/s 9MFY10 Sales: Q3FY11 v/s Q3FY10 in Rs. million in Rs. million 29,926 10,878 25,607 9,323 9MFY10 9MFY11 Q3FY10 Q3FY11 ¾ Sales S l ffor 9MFY11 iincreased dbby 16 16.9% 9% which hi h was largely l l volume l driven d i PAT: 9MFY11 v/s 9MFY1
Slide 33: Stock Performance & Shareholding Pattern
Stock Performance & Shareholding Pattern Market Capitalization in Rs. billion Shareholding Structure* 170 FIIs, 16.4 Indian FIs/ % Public and MFs/Ins. Others, 7.1 Cos., 7.8% % 17 Prom oters, 68.7% 2001 2010 *As on December 31, 2010 Dabur ranked as the organization that offers the best return to inve
Slide 34: Consolidated P&L
Consolidated P&L in Rs. million Q3FY11 Q3FY10 YoY (%) 9M FY11 9MFY10 YoY (%) Gross Sales 10,878 9,323 16.7% 29,926 25,607 16.9% Less:Excise Duty 78 64 234 188 Net Sales 10 800 10,800 9 258 9,258 16 6% 16.6% 29 692 29,692 25 419 25,419 16 8% 16.8% Other Operating Income 69 27 153.1% 256 139 84.8% Mat
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet in Rs. million As on Dec 31, 2010 As on Dec 31, 2009 Sources Of Funds Shareholders' Fund: Share Capital 1,741 866 Reserves & Surplus 11 881 11,881 7 939 7,939 13,620 8,805 Minority Interest 41 83 Loan Funds: Secured Loans 6,573 1,032 U Unsecuredd Loans L 856 7,429 7 429 1
Slide 36: Accolades
Accolades Ranked 25th most Ranked R k d 28th iin ET-Brand ET B d Listed in Forbes’ 200 Ranked 79th in 'Super 100' Equity Most Trusted valuable brand in the list Best Under-A-Billion list announced by Business Brands 2009 list. of India's 100 Most Companies List India Valuable Brands, by 4Ps. Dabur I
Slide 37: Investor Relations
Investor Relations Dabur India Ltd Contact:+91-11-42786000 37 37