Dabur India Limited · NSE:DABUR
Dabur India — Edelweiss India Conference 2014
32 slides from Dabur India's conference presentation, February 2014
Slide 1: Dabur India Limited
Dabur India Limited Edelweiss India Conference February 2014
Slide 2: Indian Economy
Indian Economy R l GDP Growth Real G th Rate R t GDP G Growth th EEstimates ti t 8.9% 2014 2015 6.4% 6.1%5.8% 6 7% 6.7% 5 4% 5.4% 4.5% 4.6% 3.7% 3.9% 2.8% 3.0% 1 4% 1.4% 1.0% FY11 FY12 FY13 H1FY14 World US Euro Area India Sub‐Saharan Africa Source: CSO estimates Source: IMF (Jan 2014) Inflation Tren
Slide 3: FMCG Sector – Long Term Potential Intact
FMCG Sector – Long Term Potential Intact Indian Consumer industry is expected to grow ~12‐17% pa over the next 5‐6 years… Source: CII – ‘FMCG ‘ roadmap d to 2020 estimates’,’ Barclays l Research h estimates The Indian FMCG sector could touch a market size between Rs. 4,000 to Rs. 6,200 billion by 2
Slide 4: FMCG Sector – Key Growth Drivers
FMCG Sector – Key Growth Drivers Source: FICCI, Barclays Research The above growth drivers are likely to ensure sustainable long term growth in the Indian FMCG sector 4
Slide 5: Other Drivers
Other Drivers Modern Trade FTMTS Spending (USD mn) Growing awareness, easier access, and changing lifestyles has 1000 meant growing consumer spending in modern trade Spending at modern retail stores in India grew by 31% in 2011 compared to the previous year 280 FTMTS (First Time Modern Trade S
Slide 6: 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 7: FMCG Sector – Recent Performance
FMCG Sector – Recent Performance India FMCG Sector Growth Rate (YoY) ‐ % 18% 12% 11% 8% 7% Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 The Indian FMCG sector has witnessed some moderation in growth rates over the last few quarters but there has been a marginal uptick in Q3 7
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
Business Footprint UK Turkey y Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka 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 10
Slide 11: Our Billion Rupee Brands
Our Billion Rupee Brands Home & Personal Care Health Care Foods INR 5 bn+ INR 1 bn+ 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% North 1
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 CORE ‐ Chemist Outlet & Range Expansion
Project CORE ‐ Chemist Outlet & Range Expansion Project CORE initiated to enhance Focus on Select States chemist coverage and provide further impetus to our Health Care portfolio 350 resources have been added at the front‐end Initial roll out in urban markets The strategy will have the dual
Slide 19: 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 20: International Business Overview
International Business Overview Dabur’s international business contributes 31% to consolidated sales Our focus markets are Africa, Middle East and Asia as these offer substantial long term ggrowth o t oppo opportunities tu t es Our international business foray had been entirely organic since 1
Slide 21: International Business by Region and Category
International Business by Region and Category International Sales by Region International Sales by Category Foods Others Skin & Body 5% 6% Care North 8% Middle America East 22% Orall C O Care 36% Others 6% 4% Africa Asia 21% Hair Care 17% 75% Our focus markets are Africa, Middle East and Asia as t
Slide 22: Africa Consumer Sector Opportunity
Africa Consumer Sector Opportunity Africa with a population of c. c 1 billion people offers substantial growth opportunities in the long run for the consumer sector Key catalysts for consumer sector in Africa: The African population is growing at 2% per annum. The continent’s total population is
Slide 23: Africa’s Emerging Consumer Markets
Africa’s Emerging Consumer Markets Population 2010 Consumer 2020 Consumer Country (2009) spending§ Spending§a EAC & COMESA Kenya 40m $23bn $37bn Ethiopia 83m $20bn $43bn Uganda 33m $15bn $30bn ECOWAS Nigeria 151m $115bn $167bn Ghana 24m $15bn $29bn Senegal 13m $10bn $16bn SADC South Africa 49m $215b
Slide 24: Namaste Laboratories LLC Update
Namaste Laboratories LLC Update Namaste Labs was acquired in Jan 2011 GDP Growth Estimates for Sub‐Saharan Sub Saharan Africa The rationale for the acquisition was to 6.1% 5.8% enhance our presence in Africa Though Namaste derives c. 70% of its sales from the U.S. we strive to increase the sha
Slide 25: 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 26: New Launches ‐ India
New Launches ‐ India Ratnaprash: Premium Fem Fairness Naturals – Vatika Enriched Coconut No added Ammonia Vatika Olive Hair Oil Health Supplement Hair Oil with Hibiscus Odonil 1 Touch Air Freshener Vatika Mandara & Kunkudukai Honitus: Honey & Tulsi launched in South India Sh Shampoo with i h Oli Oli
Slide 27: New Launches ‐ International
New Launches ‐ International Vatika – Brillantine Shine Amla Shampoo Range Amla Conditioners Range Fem Gold Hair Removal Cream Dermoviva Face Wash Vatika Hair Gel – New Lamitubes Dermoviva Hand Wash 27
Slide 28: Recent Performance
Recent Performance 6000 0 6000.0 5 304 2 5,304.2 5000.0 4,615.3 4000.0 Consolidated sales grew by 14.9% Revenue 3000.0 2000.0 driven by volume growth of 10% and (in Rs Rs. Cr Cr.)) 1000.0 calibrated lib d price i iincreases 0.0 9M FY13 9M FY14 1,200.0 954.1 EBITDA margin expanded to 18% v/s 1,00
Slide 29: Market Cap and Shareholding Pattern
Market Cap and Shareholding Pattern Market Capitalization Shareholding Structure* in Rs. billion Others, 300 7% FIIs, 20% 85 Promoters , 69% DIIs, 4% FY09 Feb‐14 Feb 14 *As of Dec 31, 2013 Dabur has witnessed significant increase in market capitalization over the years 29
Slide 30: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q3FY14 Q3FY13 YoY (%) 9MFY14 9MFY13 YoY (%) Net Sales 19,043 16,307 16.8% 53,042 46,153 14.9% Other Operating Income 50 53 158 172 Material Cost 9,275 7,952 16.6% 25,420 22,793 11.5% % of Sales 48.7% 48.8% 47.9% 49.4% Employee Costs 1,580 1,301
Slide 31: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities Particulars (in Rs. Million) As at 31/12/2013 As at 31/03/2013 Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,744 1,743 (b) Reserves and surplus 23,909 19,501 Sub-total - Shareholders' funds 25,653 21,244 2. Minorityy interest 162
Slide 32: 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