Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (September 2013)
28 slides from Dabur India's investor presentation, September 2013
Slide 1: Dabur India Limited Investor Presentation
Dabur India Limited Investor Presentation September 2013
Slide 2: Indian Economy
Indian Economy R l GDP Growth Real G th Rate R t INR/USD Exchange E h R t Movement Rate M t 9.3% 70 6.2% 5.0% 60 50 FY11 FY12 FY13 Apr‐13 May‐13 Jun‐13 Jul‐13 Aug‐13 Source: CSO estimates Source: Reserve Bank of India Index of Industrial Production (IIP) Growth Real GDP growth rate witnessed decel
Slide 3: FMCG Sector – Recent Performance
FMCG Sector – Recent Performance FMCG Sector – Urban + Rural (Growth Rate) FMCG Sector – Urban (Growth Rate) 20.0% 19.3% 17.7% 16.7% 16.1% 15.4% 12.1% 10.8% 9.8% 9.2% Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Though the FMCG sector continues to FMCG Sector – Rural (Grow
Slide 4: FMCG Sector in India
FMCG Sector in India Th The IIndian di FMCG sector’s’ size i iis peggedd at R Rs. 2 trillion illi with i h rurall IIndia di contributing ib i to a third of revenues As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range off 12% to 17% upto 2020 andd could ld tou
Slide 5: Category Penetration Levels
Category Penetration Levels Urban Rural 91% 84% 72% 69% 63% 56% 45% 21% 22% 13% 12% 10% 4% 2% Glucose Branded Baby Hair Oil Shampoo Toothpowder Toothpaste Toilet Cleaners Oil Source: IRS (Indian Readership Survey) ‐ 2012 Low penetration levels offer room for growth across consumption categories
Slide 6: Per Capita Consumption
Per Capita Consumption Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.1 1.5 4 3.2 1.0 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 Consump
Slide 7: Rural India Potential
Rural India Potential Percentage increase in monthly per capita expenditure – Incremental Consumption Expenditure Rural and Urban in 2011‐12 over 2009‐10 in Rs. bn Rural Urban 3750 19 2% 19.2% 2994 17.3% 14.0% 13.2% 13.9% 11.8% 7.3% 7.5% 1987‐94 1993‐05 2004‐10 2009‐12 Urban Rural Source: NSSO estim
Slide 8: Dabur Overview
Dabur Overview Established in 1884 ‐ more than 128 Years of Trust & Excellence World’s largest in Ayurveda and natural healthcare Dabur ranked amongst the Dabur India Ltd Bags Golden Top 5 Indian companies with Peacock Award For Excellence the best Board of Directors p In Corporate Governance 20
Slide 9: Dabur - Performance Snapshot
Dabur ‐ Performance Snapshot Sales “Robust profitable growth translating in INR bn 61.5 52.8 into superior shareholder returns” 40.8 28.1 33.9 FY09 FY10 FY11 FY12 FY13 Market Capitalization^ Capitalization in INR bn EBITDA 238.9 in INR bn 16.0 185.4 167.2 14.0 11 2 11.2 137 8 137.8 12.0 10.0 8.3 9.5
Slide 10: Business Footprint
F Business Footprint
Slide 11: Our Billion Rupee Brands
Our Billion Rupee Brands Home & Personal Care Health Care Foods 11
Slide 12: Dabur - Domestic Distribution Structure
Dabur ‐ Domestic Distribution Structure Factory ((Carryy & Forward Agents) g ) Depot Stockists Super stockists Insti Stockists Modern Trade Stockist Wholesalers Sub stockists Retail trade Rural trade Insti customers Shoppers & Consumers Direct reach 0.8 mn outlets “Total reach at 5.8 mn retail outle
Slide 13: Dabur - Business Structure
Dabur ‐ Business Structure Dabur India Ltd. International Domestic (69%) (31%) Organic Hobi Consumer Foods Retail Others Namaste International Group Care (55%) (11%) (1%) (3%) Labs (8%) (19%) (3%) Note: % figure in brackets indicate % share in Consolidated Sales for FY13 * Others includes Commodity
Slide 14: Dabur – Sales by Business Vertical
Dabur – Sales by Business Vertical Dabur derives 69% of its sales from Domestic business (Consumer Care + Foods + Others) and 31% from International business Others Foods 4% 11% Consumer Internation Care al Business 55% 31% Skin Care Others Health Africa 6% 4% Supplements 21% Oral Care 21% 17% U.S
Slide 15: Consumer Care Categories
Consumer Care Categories Category Key Products and Brands Market Position Chyawanprash: Honey: Glucose: #1 in Ayurvedic Tonics ((Chyawanprash) y p ) Health Supplements #1 in branded Honey #2 in Glucose Herbal Digestives: #1 in Herbal Digestives Digestives Baby Care: Cough & Cold: Women’ss Health Wom
Slide 16: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Category g y Keyy Products and Brands Market Position Hair Oils: Shampoo: #2 in Hair Oils #4 in Shampoos Hair Care T th t : Toothpastes T th Toothpowder: d #3 in Toothpastes Oral Care #2 in Toothpowders Air Freshener: Mosquito Rep. Cream: Toilet Cleaner: #1 in Air F
Slide 17: Foods
Foods Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Key Products and Brands Market Position Juices & Nectars: #1 in Fruit Juices Culinary: 17
Slide 18: Project Double – Rural Coverage Enhancement
Project Double – Rural Coverage Enhancement Project Double was rolled out during 2012 2012‐13 13 to expand direct coverage in rural markets The project was an outcome of our core strategy to increase our rural footprint and expand distribution network in these markets Ten states where this pro
Slide 19: International Business
International Business Overview i l Sales International S l Breakdown kd ( 3) (FY13) Dabur’s international business contributes 31% to consolidated sales Our O focus f markets k t are Africa, Af i Middl East Middle E t and d Asia A i as U.S. these offer substantial long term growth opportunities
Slide 20: International Business (Contd.)
International Business (Contd.) Africa Opportunity pp y Africa’s Bulging g g Base With a population of c. a billion, Africa offers huge potential for the consumer sector in the long run driven by factors such as rapidly emerging middle class, with increasing disposable incomes Between 2005 and 2
Slide 21: Growth Strategy Three Pillars of Growth
Growth Strategy Three Pillars of Growth Expand Innovate Acquire Strengthen presence in Strong focus on innovation. Acquisitions critical for existingg categories g and Have rolled out new variants buildingg scale in existingg markets as well enter new and products which have categories and mar
Slide 22: New Launches - India
New Launches ‐ India Babool: Salt Variant Activ: Drinking Yoghurt Real: Supa Fruits range Hajmola: Anardana Gulabari: variant Moisturizing Lotion Fem: Turmeric Variant Real Burrst: Ethnic OxyLife: Gel Bleach Odonil Gels Flavour – Kokam 22
Slide 23: New Launches - International
New Launches ‐ International Vatika Enriched Hair Vatika: Hair Mayonnaise Dabur – Medicated Vatika Professional Oil – Black Seed Toothpaste Range Vatika Henna Vatika – ENRICHED Hair Color Coconut Hair Oil with Curry Leaves 23
Slide 24: Recent Performance
Recent Performance 16 511 16,511 Consol. Consol Sales grew by 12 12.9% 9% during Q1FY14 14,620 15000 Domestic FMCG growth continued to grow at a Revenue 10000 steady pace reporting 13.2% growth (in Rs Rs. mn) 5000 International business reported growth of 17.4% with organic international busin
Slide 25: Market Cap and Shareholding Pattern
Market Cap and Shareholding Pattern Market Capitalization Shareholding Structure* in Rs. billion 261.5 Others, DIIs, 4.0% 7.0% FIIs, 20.4% 85.4 Promoters, Promoters 68.6% FY09 Aug 13 Aug‐13 *As of Jun 30, 2013 Dabur has witnessed significant increase in market capitalization over the years 25
Slide 26: Consolidated P&L
Consolidated P&L in Rs. million Q1FY14 Q1FY13 YoY (%) FY13 FY12 YoY (%) Net Sales 16,511.0 14,619.7 12.9% 61,463.8 52,831.7 16.3% Other Operating Income 54.2 92.9 297.4 222.5 Material Cost 8,073.6 7,316.4 10.3% 30,193.4 26,924.0 12.1% % of Sales 48.9% 50.0% 49.1% 51.0% Employee Costs 1,312.5 1,122.0
Slide 27: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities Particulars (in Rs. million) As at 30/06/2013 As at 31/03/2013 As at 30/06/2012 Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,744 1,743 1,743 (b) Reserves and surplus 20,854 19,501 16,711 Sub-total - Shareholders Shareholders' fun
Slide 28: Disclaimer
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, projections or plans that are inherently subject to significant risks, as well as uncerta