Dabur India Limited · NSE:DABUR
Dabur India — UBS India CEO/CFO Forum, Mumbai (November 2010)
28 slides from Dabur India's conference presentation, November 2010
Slide 1: Dabur India Limited
DABUR INDIA LIMITED UBS India CEO/CFO Forum, Mumbai November 2010 1 1
Slide 2: Economy Overview
ECONOMY OVERVIEW India Real GDP Y-o-Y Growth (%) India Per Capita Income (USD) 3231 0.12 9.4% 9 7% 9.7% 0.1 9.2% 8.5% 0.08 7.5% 7.4% 6.7% 0.06 5.8% 4.4% 0.04 3.8% 1017 0.02 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY2009 2020 Source : RBI & CSO estimates for FY10 Source : World Bank,, Ede
Slide 3: India Consumption Story
INDIA CONSUMPTION STORY Aggregate Consumption across Income Brackets in trillion, Indian Rupees, 2000 4x 70 34 Middle Class 17 10 7 Middle Class Source : McKinsey Global Institute Analysis By 2025, India is poised to become the world's fifth largest consuming country from current position of twelfth
Slide 4: FMCG Industry in India
FMCG INDUSTRY IN INDIA 9 FMCG industry size at US$25 billion in FMCG Industry Size (India) CY09 and expected to grow to US$74 in Rs. billion billion in 2018* 9 Industry has grown at 13.4% in CY09 9 Rural sector accounts for about 33% of total revenue 9 Growth G th b being i d driven i b by increasin
Slide 5: FMCG Industry Drivers
FMCG INDUSTRY DRIVERS • India is among the world's youngest nations, with a median age of 25 years as compared to 43 in Japan and Large and growing youth 36 in the US. This, coupled with a large population and population rapidly evolving consumer preferences, has translated into a large market oppor
Slide 6: Dabur Overview
DABUR OVERVIEW 9 Established in 1884 : 125 Years of Trust & Ten Billion Rupee Brands Excellence 9 g top Among p 4 FMCG companies p in India 9 World’s largest in Ayurveda and natural healthcare 9 Revenue of Rs. 34 billion and profits of Rs. 5 billion in FY2009-10 FY2009 10 9 Strong brand equity Dab
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Sales in Rs. million 40000 34,167 35000 28 341 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% 6000 20.0% 18
Slide 8: Portfolio
PORTFOLIO Health Care Personal Care Home Care Foods 8 8
Slide 9: Global Footprint
GLOBAL FOOTPRINT UK Canada Nepal UAE U.S. Egypt B’Desh Nigeria Australia 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 9 9
Slide 10: Robust Distribution Network
ROBUST DISTRIBUTION NETWORK Factory C&FA (Carry & Forward Agents) Stockist Super Stockist Institutions & Modern trade Wholesalers Sub Stockist RETAIL TRADE CONSUMERS Direct + Indirect Reach covering 2.8 Mn Retail Outlets 10 10
Slide 11: Presence in FMCG Categories
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 63% Dabur Chyawanprash Tonics Diges
Slide 12: Business Structure
BUSINESS STRUCTURE Dabur operates through three focused Strategic Business Units Revenue Business Unit Description Sh Share FMCG portfolio comprising four distinct businesses: Consumer Care • Personal Care 72% Division • Consumer Health Care • Home Care • Foods Range of ethical and OTC products Cons
Slide 13: 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 14: 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 June, 09 Largest brand in coconut oil Value proposition the portfolio Shampoo Key Brands Market Share 13.5% 11.
Slide 15: Consumer Care Categories
CONSUMER CARE CATEGORIES Oral Care Market Share Key Brands 14.3% 13.2% 49.7% 22.8% Colgate HUL Dabur Others Dabur Red: Toothpaste Babool: Targeted at Meswak: Premium & Toothpowder economy segment therapeutic Value Share-ACN March, 2010 toothpaste Health Supplements Key Brands d Chyawanprash – Market
Slide 16: 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 Company Est. Mar, 2010 for Fruit Juice category of 100% pure juice beverages brand Skin Care Market Share* Key Brands 18.0% 58.9% 3.2% 6.4% 6.6% 6.8% Hindustan Hi d t LLever E
Slide 17: Consumer Care Categories
CONSUMER CARE CATEGORIES Digestives Market Share Key Brands 37% 55% 8% Hajmola: H j l Fl Flagship hi bbrand d Hajmola H j l ttasty t Hajmola Satmola Others for branded Digestives digestive candy Value Share-ACN March, 2010 Home Care Air Fresheners – Market Share Key Brands 20% 26% 5% 20% 30% Odonil
Slide 18: Consumer Health Division
CONSUMER HEALTH DIVISION Description CHD Structure 9 CHD: Repository of Dabur’s Ayurvedic Healthcare knowledge 9 Plans underway to build a comprehensive OTC (64%) ETHICAL (36%) strategy for a greater push in OTC Health 9 Generics 9 Tonic space 9 Range of over 260 products 9 Branded Products 9 Classi
Slide 19: International Business Division
INTERNATIONAL BUSINESS DIVISION Started as an Set up a franchisee at Renamed franchisee as Dabur Building scale scale-18% 18% of Exporter Dubai in 1989 International Ltd overall Dabur Sales Focus on Order Demand generation Local operations further strengthened High Levels of Localiza
Slide 20: International Business - Product Portfolio
INTERNATIONAL BUSINESS - PRODUCT PORTFOLIO Existing Products NPDs and Relaunches Vatika Hamam Zaith Hair Oils Vatika Shampoos – Hair Fall Control Vatika Conditioners Dabur Herbal Toothpaste Hair Creams Hair Treatments Vatika Hair Oil Vatika DermoViva Soaps 20 20
Slide 21: Our Strategy
OUR STRATEGY Three pronged Growth Strategy Acquire Expand Innovate Our differentiation is the herbal and ayurvedic platform Acquire 9 Acquisitions critical for building scale in existing categories & markets 9 Should be synergistic and make a good strategic fit 9 Target opportunities in our focus ma
Slide 22: 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 This is Dabur’s first overseas acquisition 9 Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era 9 Product r
Slide 23: Financial Performance – FY2009-10
FINANCIAL PERFORMANCE – FY2009-10 Sales: FY10 v/s FY09 EBITDA Margin: FY10 v/s FY09 in Rs. million 40000 34,167 20.00% 19.6% 28,341 19.50% 30000 19.00% 20000 18.50% 18.3% 10000 18.00% 0 17 50% 17.50% FY09 FY10 FY09 FY10 PAT*:: FY10 v/s FY09 PAT 9 Sales ggrowth led p primarily y by y continued double
Slide 24: Financial Performance - H1 and Q2 FY 2010-11
FINANCIAL PERFORMANCE - H1 and Q2 FY 2010-11 Sales: H1FY11 v/s H1FY10 Sales: Q2FY11 v/s Q2FY10 in Rs. Crores in Rs. Crores 1,905 2000 1,628 1200 980 1500 1000 855 800 1000 600 500 400 200 0 0 H1FY10 H1FY11 Q2FY10 Q2FY11 ¾ Sales for H1FY11 increased by 17% and by 14.7% in Q2 FY11 primarily driven by
Slide 25: Stock Performance and Shareholding Pattern
STOCK PERFORMANCE AND SHAREHOLDING PATTERN Market Capitalization in Rs. billion Shareholding Structure* 170 Indian FIIs, 16.4 FIIs 16 4 % Public and Others, 7.0 % Banks/FIs/ Prom oters, 68.7% 17 Insurance Cos., 6.9% Mutual Funds, 0.9 % 2001 2010 *As on October 22, 2010 Dabur s market capitalization
Slide 26: Consolidated P&L Q2 FY11 and H1 FY11
CONSOLIDATED P&L Q2 FY11 and H1 FY11 In Rs. crores Q2FY11 Q2FY10 YoY (%) H1 FY11 H1FY10 YoY (%) Gross Sales 980.5 854.8 14.7% 1,904.8 1,628.4 17.0% Less: Excise Duty 7.7 7.0 15.6 12.4 Net Sales 972.8 847.8 14.7% 1,889.3 1,616.1 16.9% Other Operating Income 10 1 10.1 63 6.3 58 9% 58.9% 18 7 18.7 11 1
Slide 27: Consolidated Balance Sheet – Sept 30, 2010
CONSOLIDATED BALANCE SHEET – Sept 30, 2010 In Rs. I R crores A on S As Septt 10 A on S As Septt 09 Sources Of Funds Shareholders' Fund: Share Capital 174.1 86.6 Reserves & Surplus 1,037.5 690.7 1 211 1 1,211.1 777 2 777.2 Minority Interest 4.5 8.3 Loan Funds: Secured Loans 99.7 113.3 Unsecured Loans
Slide 28: Investor Relations
Investor Relations Dabur India Ltd Contact:+91-11-42786000 28 28
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