Dabur India Limited · NSE:DABUR
Dabur India — Merrill Lynch India Investor Forum 2011
28 slides from Dabur India's conference presentation, September 2011
Slide 1: Dabur India Limited - Merrill Lynch India Investor Forum
DABUR INDIA LIMITED Merrill Lynch - India Investor Forum September 2011, London 1 1
Slide 2: 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 o bac of st strong o gaannual ua volume ou e ggrowth o t o of ~8.5%. 8
Slide 3: FMCG – Current Scenario
FMCG – CURRENT SCENARIO FMCG Split: OTC, Food and Non-Food 9 FMCG industry pegged at US$30 billion in CY10 140,000 128,580 Rs. Crores 120,000 116,053 3 (11%) 9 Of the entire FMCG sector, Food is 97,276 4 (14%) 52% Non-Food 52%, Non Food at 45% and OTC 3% 100,000 82,615 4 (10 %) 45 (8%) 80,000 4 46 (
Slide 4: Penetration Levels: Sufficient Headroom
PENETRATION LEVELS: SUFFICIENT HEADROOM Rural Penetration Urban Penetration 90% 80% 80% 77% 70% 67% 59% 60% 57% 50% 42% 40% 37% 32% 30% 26% 20% 18% 18% 19% 10% 5% 4% 3% 2% 0% Toothpaste Shampoo Hair Oil Skin Mosquito Instant Hair Dyes Floor Cream Repellants Noodles Cleaners Source: Industry Data 9 L
Slide 5: Per Capita Consumption: Room for Growth
PER CAPITA CONSUMPTION: ROOM FOR GROWTH India has low per capita consumption as compared to other emerging economies Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) in US$ in US$ 9 3 27 2.7 7.4 77 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
Slide 6: Inflation Playing Spoilsport
INFLATION PLAYING SPOILSPORT 9 WPI has hovered in the 9% to 10% Monthly WPI Trend (CY 2011) range this Calendar Year inspite of previous year’s high base 9.5% 9.5% 9.7% 9.7% 9.1% 9.4% 9 Prices of agri agri-based based and crude linked inputs have witnessed sharp increase, exerting pressure on gross
Slide 7: Dabur Overview
DABUR OVERVIEW 9 Established in 1884 - more than 125 Years Eleven 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. 41.1 billion and profits of Rs. 5.7 billion in FY2010-11 9 Strong brand equity Da
Slide 8: Financial Performance
FINANCIAL PERFORMANCE S l Sales in Rs. million 45000 41,099 40000 34,158 35000 28 341 28,341 30000 20,803 23,963 25000 17,565 20000 12,004 12,849 12,356 14,170 15000 10000 5000 0 FY02 FY03 FY04^ FY05 FY06* FY07 FY08 FY09 FY10** FY11^^ EBITDA Margin (in %) Net Profit in % in Rs. million 22.0% 19.8% 1
Slide 9: Global Footprint
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 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 c.3 million 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 67% Dabur Chyawanprash Tonics Diges
Slide 12: Business Structure
BUSINESS STRUCTURE Dab Dabur ope ates th operates o gh th through ee focused three foc sed St ategic B Strategic siness Units Business • FMCG portfolio comprising four distinct businesses: Consumer Care • Personal Care Division • Consumer Health Care 68% • Home Care • Foods • Catering to health and
Slide 13: Transition to the New Integrated Structure
TRANSITION TO THE NEW INTEGRATED STRUCTURE “New structure to provide enhanced capability and scale to our consumer health business” Old Structure New Structure 68% Hair Care Hair Care Oral Care Oral Care Health Supplements HPC Consumer Home Care Care Digestives 22%Division Skin Care Skin Care Health
Slide 14: HPC Categories: Hair Oil and Shampoo
HPC CATEGORIES Hair Oil Key Brands Market Share Dabur Amla: Vatika: Value added Anmol Hair Oil: Value Share-ACN MAT Mar 2011 Largest brand in coconut oil Value proposition the portfolio Shampoo Key Brands Market Share Value Share-ACN MAT Dec-2010 Vatika range of shampoos 14 14
Slide 15: HPC Categories: Oral Care and Skin Care
HPC CATEGORIES Oral Care Market Share Key Brands Dabur Red: Toothpaste Babool: Targeted at Meswak: Premium & Toothpowder economy segment therapeutic Value Share -ACN MAT Mar, 2011 toothpaste Skin Care Market Share* Key Brands Gulabari range of rose Uveda: Range of Fem Gold Bleach: based skin care Ay
Slide 16: HPC Categories: Home Care
HPC CATEGORIES Home Care Market Share Key Brands Odonil: Air freshner Odomos: Mosquito Sanifresh: Value Share-ACN MAT March, 2011 for range: Largest brand repellant skin cream Toilet cleaner Mosquito Repellants Cream category in the portfolio 16 16
Slide 17: Health Care Categories: Health Supplements and Digestives
HEALTH CARE CATEGORIES H lth Supplements Health S l t Chyawanprash – Market Share Key Brands Dabur Honey: Largest Dabur Chyawanprash: Dabur Glucose: branded honey in the Volume Share-ACN MAT - Mar, 2011 Largest selling health 2nd largest country; growing supplement in the player in the category thro
Slide 18: Health Care Categories: OTC and Ethicals
HEALTH CARE CATEGORIES OTC and d Ethicals Ethi l OTC comprises: ETHICAL comprises: OTC Healthcare Focus 9 Generics 9 Tonic 9 O OTC Healthcare a a is Rs.130 30 b billion o size 9 Branded Products 9 Classicals industry 9 Expected to grow at 14-15% p.a. as 9 Branded Ethicals preference for Over-the-Cou
Slide 19: Foods
FOODS 9 Foods portfolio comprises Juices and Culinary range 9 Juices are under the brands – Real, Activ and Burrst 9 Culinary C li range iis under d Hommade H d brand b d Foods Key Brands Market Share Real: Flagship Real Activ: Range Company Est. Mar, 2010 for Fruit Juice category of 100% pure juice
Slide 20: International Business Division
INTERNATIONAL BUSINESS DIVISION Started St t d as an Set S t up a franchisee f hi att Renamed R d ffranchisee hi as Dabur D b Building B ildi scale-22% l 22% off Exporter Dubai in 1989 International Ltd overall Dabur Sales (FY11) Focus on Order Demand generation Local operations furthe
Slide 21: Our Strategy
OUR STRATEGY Three pronged Growth Strategy Expand Innovate Acquire Our differentiation is the herbal and ayurvedic platform Expand 9 Strengthening presence in existing categories and markets as well entering new geographies 9 Maintain dominant share in categories where we are category builders like
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 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 23: Acquisition of Namaste Laboratories LLC
ACQUISITION OF NAMASTE LABORATORIES LLC. 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 January 1, 2011 9 Namasté is a leading ethnic hair care products company, having products for wom
Slide 24: Recent Financial Performance
RECENT FINANCIAL PERFORMANCE Sales: Q1 FY12 v/s Q1 FY11 EBITDA: Q1 FY12 v/s Q1 FY11 in Rs. million in Rs. million 12,162 1,939 14 000 2 50 0 9,244 12 000 10 000 2 00 0 1 517 1,517 1 50 0 800 0 600 0 1 00 0 400 0 50 0 200 0 0 0 Q1 FY11 Q1 FY12 Q1 FY11 Q1 FY12 PAT: Q1 FY12 v/s Q1 FY11 9 Sales for Q1 F
Slide 25: Stock Performance and Shareholding Pattern
STOCK PERFORMANCE AND SHAREHOLDING PATTERN Market Capitalization in Rs. billion Shareholding Structure* 190 FIIs, 17.4 Indian FIs/ % Public and MFs/Ins. Others, 6.7 Cos., 7.1% % 17 Prom oters, oters 68.7% 2001 2011 *As on May 6, 2011 Dabur u rankedd ass the o organization g o that offers o s the bes
Slide 26: Consolidated P&L
CONSOLIDATED P&L In Rs. million Q1FY12 Q1FY11 YoY (%) Gross Sales 12,162 9,244 31.6% Less:Excise Duty 117 79 Net Sales 12,046 9,165 31.4% Other Operating Income 80 77 3 0% 3.0% Material Cost 6,290 4,346 44.7% % of Sales 51.7% 47.0% Employee Costs 951 728 30.6% % of Sales 7.8% 7.9% Ad Pro 1 515 1,515
Slide 27: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET In Rs. million As on Jun 11 As on Jun 10 Sources Of Funds Shareholders' Fund: Share Capital 1,741 869 Reserves & Surplus 13,534 10,195 15,275 11,064 Minority Interest 43 44 Loan Funds: Secured Loans 4,762 1,387 Unsecured Loans 5,349 10,111 830 2,217 Deferred Tax Liability
Slide 28: Investor Relations
Investor Relations Dabur India Ltd Contact:+91-11-42786000 28 28
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