Dabur India Limited · NSE:DABUR
Dabur India — Anand Rathi - India Consumer Conference 2009
35 slides from Dabur India's conference presentation, December 2009
Slide 1: Anand Rathi - India Consumer Conference
December, 2009 Anand Rathi - India Consumer Conference Mumbai, India A trust of over 125 years 1
Slide 2: Index
Index Dabur India-Introduction FMCG Industry Scenario Business Overview Brand/Growth Strategy Financials A trust of over 125 years 2
Slide 3: Dabur: Largest Indian HPC Company
Dabur: Largest Indian HPC Company Highlights Eight Billion Rupee Brands 9 Herbal & Natural Portfolio 9 4,500 Distributors in India 9 Retail Reach 2.8 mn 9 5 Umbrella Brands 9 350+ products 9 4,200 employees 9 15 Manufacturing Locations 9 20% contribution from Listed in Forbes’ 200 Ranked 60th Most R
Slide 4: Strong Financials
Strong Financials Sales Key Financials H1FY10 in Rs. million 28,341 Market Cap US$2.9 billion^ R - 18% C AG 23,963 20,803 Cash Flow Rs. 2.6 billion 17,565 14,170 EBITDA Margin 19.5% 12,356 PAT/Sales 14.4% RoNW 48.4% FY04 FY05 FY06 FY07 FY08 FY09 ^As of December 15, 2009 Net Profit EBITDA Margin (in
Slide 5: FY09: Highest Organic Growth in the Decade
FY09: Highest Organic Growth in the Decade Sales and Growth Rates (Y-o-Y) Y-o-Y growth (%) 13.8% 12.0% 9.2% 7.0% -3.8% 14.7% 24.0% 18.4% 15.2% 18.3% Sales in Rs. million Note: Balsara acquisition added 10% to topline in FY06 Sales show a decline in FY04 on account of de-merger of Pharma business A t
Slide 6: Manufacturing Locations - India
Manufacturing Locations - India New units being set up at Baddi and Uttaranchal in 2009-10 for capacity expansion Jammu (J&K) Baddi (HP) Uttaranchal Newai (Raj) Sahibabad (UP) One of our largest manufacturing Sillguri (WB) facilities at Baddi, HP Silvassa Katni, (MP) Manufacturing Facilities Multi l
Slide 7: Manufacturing Locations - International
Manufacturing Locations - International Nepal Bangladesh Dubai Nigeria Egypt RAK Key markets Manufacturing Facilities A trust of over 125 years 7
Slide 8: Research & Development Strengths
Research & Development Strengths Dabur introduced more than 20 new products/variants during FY09 New Product Development Collaboration with govt agencies 9 Ayurvedic Medicines 9 Personal Care Team of 50 scientists 9 Foods including Ayurvedic doctors, Pharmacists, Agro-nomists, 9 Home Care Botanists,
Slide 9: Distribution Network : Route to Market
Distribution Network : Route to Market Factory Factory D.C. D.C. Stockist Stockist Superstockist Superstockist Wholesalers Wholesalers Institutions Institutions Modern Modern Substockist Substockist Trade Trade Semi Semi Wholesalers Wholesalers Retail Retail Trade Trade Retail Retail Trade Trade Sho
Slide 10: 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 Dabur Chyawanprash, Asavs, Honitu
Slide 11: FMCG Sector: Current Scenario
FMCG Sector: Current Scenario Highlights FMCG space showing steady growth Economic downturn did not impact FMCG; most categories witnessing double digit 100 30 growth 19 19 26 95 21 19 Significant increase in agri commodity 90 20 20 1616 20 realizations and investments in 17 17 agriculture/rural
Slide 12: Rural Growth Drivers
Rural Growth Drivers Key Drivers Category Growth: Urban Vs Rural Multitude of structural factors driving rural 18.7% demand - incomes, consumptions & govt led 20.00% 18.2% 18.00% investments 16.00% 12.7% 13.2% No of rural households with annual income of 14.00% 11.5% 12.00% 9.8% more than US$200
Slide 13: Penetration Levels: Sufficient Headroom
Penetration Levels: Sufficient Headroom Category Name Category Size (Rs Mn) All India % Urban % Rural % Hair Oil 22,631 94 96 93 Health supplements* 1,681 8 14 5 Packaged fruit Beverage 12,000 16 30 10 Mosquito repellants 66,70 32 58 20 Washing powders 47,027 90 93 89 Washing cakes/ bars 28,269 88 9
Slide 14: Key Players: FMCG
Key Players: FMCG USD Million Company Key Categories Sales Profit Market Cap Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4,383 536 12,066 Tata Tea Tea 1,011 115 1,188 Nestle India Ltd* Food, Beverages, Infant nutrition 915 119 5,234 Dabur India Ltd Personal, Health & Homecare, Foo
Slide 15: Business Structure
Business Structure Dabur operates through three focused Strategic Business Units Business Unit Description Revenue Share FMCG portfolio comprising four distinct businesses: Consumer Care •Personal Care 70% Division •Health Care •Home Care •Foods Range of ethical and OTC products Consumer Health that
Slide 16: 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 - Histori
Slide 17: Consumer Care Category Performance
Consumer Care Category Performance Growth Rate (Y-o-Y) 35% 29% 30% 23% 22% 21% 23% 25% 20% 15% 14% 14% 11% 13% 15% 10% 10% 7%5% 8% 5% 0% Home Care Foods Digestives Supplements Skin Care Hair Care Oral Care Health H1FY10 FY09 Hair care the largest category continuing to post strong growth Growth
Slide 18: Consumer Care Categories
Consumer Care Categories Key Brands Hair Oils 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 Shampoos 8% 11% 24% 7% 3% 46% 2% Cavinkare Dabur Hind
Slide 19: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Key Brands Oral Care 11.5% 3.3% 23.6% 48.7% 12.8% Dabur Red: Babool: Targeted at Meswak: Premium Anchor Health Colgate Dabur Unilever Others Toothpaste & economy segment therapeutic Toothpowder toothpaste Value Share-ACN June, 09 Health Supplements (Chyawanprash) 1.
Slide 20: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Key Brands Foods 3.7% 15.5% 45% 36.4% Dabur Pepsi Priya Gold Others Value Share-ACN May, 09 ; Fruit Juice category Real: Flagship Real Activ: Range Real Burrst: New beverages brand of 100% pure juice fruit Drink brand Skin Care* 18.0% 58.9% 3.2% 6.4% 6.6% 6.8% Hindu
Slide 21: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Key Brands Digestives 38% 55% 7% Hajmola Satmola Others Hajmola: Flagship brand Hajmola tasty Value Share-ACN March,09 for branded Digestives digestive candy Home Care 6% 27% 41% 26% Odonil Air wick Premium Odonil: Air freshner Ambipur Odomos: Mosquito Sanifresh: ra
Slide 22: Robust Brand Architecture
Robust Brand Architecture in Rs. billion Brand Architecture Domestic Overseas Total Dabur 15.3 1.7 17.0 Herbal Healthcare Vatika 2.1 1.8 3.9 Herbal Personal Care Hajmola 1.3 0.1 1.4 Tasty Digestives Fem 1.0 * 1.0 Skin Care range Real 2.5 0.5 3.0 Fruit Beverages Balsara 1.2 0.1 1.3 Home Care * Brand
Slide 23: Key Initiatives: Aggressive Product Launches
Key Initiatives: Aggressive Product Launches Personal Care Home Care Odonil Gel variants launched Vatika Dandruff Control Dabur Total Protect Shampoo with 3 variants Ayurvedic shampoo Amla Flower Magic Odomos Naturals Launch of Gulabari cold cream & lotion Vatika Almond Enriched hair oil Dazzl Silve
Slide 24: Key Initiatives: Aggressive Product Launches
Key Initiatives: Aggressive Product Launches Health Care Fruit based Beverages New Honey Babool Mint Gel launched Re-launch of LDM and packaging in key markets RTP in new pack New variants of Real: Apple Nectar, Peach & Black Currant New Pudina Entered MFD category variant of Test Launched Burrst :
Slide 25: Uveda: New Skin Care Launch
Uveda: New Skin Care Launch Highlights The new Uveda range test marketed in Delhi & Maharashtra. Vidya Balan is the new brand ambassador for In shop promotions Uveda Good initial response to the brand Pan-India roll-out planned in FY2011 Uveda Ads in Print Media Uveda placement in Modern Tra
Slide 26: Consumer Health Division
Consumer Health Division Description CHD Structure Dabur is the largest OTC Healthcare company in India (Source: Nicholas Hall’s OTC Yearbook 2008) CHD :Repository of Dabur’s Ayurvedic OTC (57%) ETHICAL (43%) Healthcare knowledge 9Generics 9Tonic Plans underway to build a comprehensive 9Brande
Slide 27: International Business Division
International Business Division Highlights High Growth in IBD in Rs. million Dabur’s overseas business now contributes 6000 20% to consolidated sales led by CAGR of 5,250 33% in last 5 years % 5000 R - 33 Focus markets: CAG 3,760 4000 2,917 GCC 3000 2,258 Egypt 1,807 2000 1,281 Nigeria 100
Slide 28: Fem Care Acquisition
Fem Care Acquisition Highlights Fem care acquisition completed on 25th June, 2009. New Herbal Bleach First full quarter completed under Dabur launched in May 2009 management Core consumer business of Bleaches & Hair Removing Creams delivered growth of 29.6% during Q2FY10. Categories growing
Slide 29: DIL Growth Strategy
DIL Growth Strategy Strengthening new categories Targeting inorganic 9Skin Care: Ayurvedic skin care opportunities range under a new brand 9Market Entry: Acquisitions launched; Acquisition of Fem critical for building scale in 9OTC Healthcare: Leveraging existing categories & markets Ayurveda knowle
Slide 30: Topline and Bottomline Performance: FY09
Topline and Bottomline Performance: FY09 Sales: FY 2008-09 v/s 2007-08 in Rs. million 28,341 .3% 30000 23,963 18 25000 Sales increased by 18.3% to touch 20000 Rs. 28,341 mn during FY09 15000 10000 5000 0 FY08 FY09 PAT: FY 2008-09 v/s 2007-08 in Rs. million .5% 3,913 4500 Consolidated PAT grew at 17.
Slide 31: Topline and Bottomline Performance: H1FY10
Topline and Bottomline Performance: H1FY10 Key Highlights Sales : H1 FY10 v/s H1 FY09 Dabur delivered robust first half sales growth in Rs. million of 22.3% driven by strong volume growth of .3% 22 14.2% 18000 16,031 16000 13,108 CCD including Foods grew by 17.2% 14000 12000 CHD grew by 15.1%
Slide 32: Stock Performance & Shareholding Pattern
Stock Performance & Shareholding Pattern Dabur’s Stock Price vis-à-vis NIFTY Shareholding Structure* Indian FIIs, 13.1% Public and Others, 6.9 Promoters, Banks/FIs/ % 69.5% Insurance Cos., 8.1% Mutual Funds, 2.5 % *As on November 20, 2009 Dabur Outperformed the index by 36% during the period Dec 200
Slide 33: DIL Consolidated Financials: P&L H1FY10
DIL Consolidated Financials: P&L H1FY10 in Rs. million H1FY10 H1FY09 YoY (%) FY09 FY08 YoY (%) Gross Sales 16,031 13,108 22.3% 28,341 23,963 18.3% Less:Excise Duty 123.8 157.1 286.8 352.2 Net Sales 15,907 12,951 22.8% 28,054 23,611 18.8% Other Operating Income 106 153 -30.7% 256 240 6.6% Material Co
Slide 34: DIL Consolidated Balance Sheet: Sept 30, 2009
DIL Consolidated Balance Sheet: Sept 30, 2009 in Rs. million YTD Sep 09 YTD Sep 08 Sources Of Funds Shareholders' Fund: Share Capital 866 865 Reserves & Surplus 9,193 7,183 10,058 8,048 Minority Interest 83 44 Loan Funds: Secured Loans 1,133 1,523 Unsecured Loans 541 1,674 42 1,565 Deffered Tax Liab
Slide 35: Investor Relations
Investor Relations Dabur India Ltd Contact:+91-11-42786000 A trust of over 125 years 35
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