Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (June 2010)
37 slides from Dabur India's investor presentation, June 2010
Slide 1: Dabur India Limited Corporate Profile
Dabur India Limited Corporate p Profile June, 2010 1 1
Slide 2: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 2 2
Slide 3: Dabur India: Key Highlights
Dabur India: Key Highlights 9 Leading personal and healthcare company : Among top four FMCG Companies in India 9 Revenue of more than Rs. 34.2 billion and profits of more than Rs. 5.0 billion in FY2009-10 9 g brand equity Strong q y Dabur is a household brand Vatika and Real are Superbrands Ha
Slide 4: Strong Financials
Strong Financials Sales in Rs. million 40000 34 167 34,167 35000 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% 19.6% 6000 20.0%
Slide 5: Key Milestones
Key Milestones 1884 1972 1986 1994 •The birth of Dabur •The company shifts •Registered as Public •Listed on the Bombay base to Delhi from Limited Company p y Stock Exchange g Kolkata 1998 2000 2003 2004 •Professional team •Crosses Rs 1000 •Pharmaceutical •Profit exceeds Rs.100 inducted to run the Cr
Slide 6: Strong Manufacturing Backbone
Strong Manufacturing Backbone Manufacturing Locations - Global Manufacturing Locations in India 4 3 Birganj, Nepal 2 Nepal 1 7 Egypt Nigeria Bangladesh UAE 5 6 8 1 S hib b d U 1.Sahibabad, U.P P 2. Uttaranchal 3.Baddi, H.P 4.Jammu, J&K 5.Katni, M.P 6.Siliguri, W.B Manufacturing Facilities 7.Jaipur,
Slide 7: Robust Distribution Network
Robust Distribution Network Factory C&FA (Carry & Forward Agents) St ki t Stockist S Super St Stockist ki t Institutions & Modern trade Wholesalers Sub Stockist RETAIL TRADE CONSUMERS Direct + Indirect Reach covering 2.8 Mn Retail Outlets 7 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 off 50 scientists T i ti t 9 Foods including Ayurvedic doctors, Pharmacists, Agro-nomists, 9 Home Care
Slide 9: Ayurveda – The Science of Life
Ayurveda – The Science of Life 9 Ayurveda – The core philosophy 9 Traditional Indian system of medicine 9 Ayurveda, the ancient Indian system of medicine based on natural and holistic living, derives from two Sanskrit words - Ayu or life, and Veda or knowledge. 9 This Science of Life analyses the hu
Slide 10: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 10 10
Slide 11: FMCG Industry Snapshot
FMCG Industry Snapshot Key Highlights FMCG Industry Size Indian FMCG industry size estimated at around US$ 25 bn. MAT Dec MAT Dec Personal care & Food products dominate the in Rs. billion b ll 2008 2009 sector Many categories are currently small and FMCG Industry Size 1,023.9 1,161.1 offer hug
Slide 12: 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 2025, India is poised to become the world world's s fifth largest consuming country from current posit
Slide 13: Penetration Levels: Sufficient Headroom
Penetration Levels: Sufficient Headroom 90% 80% 80% 77% 70% 67% 57% 59% 60% 50% 42% 37% 40% 32% 30% 18% 18% 20% 10% 0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito Repellants Rural Penetration Urban Penetration Source: Industry Data, IIFL 9 Low penetration levels offer room for growth across cons
Slide 14: 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 2.7 7.4 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 0 Chi
Slide 15: Key Players: FMCG
Key Players: FMCG USD Million Company Key Categories Sales Profit Market Cap Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4,638 557 11,325 Nestle India Ltd* Food, Beverages, Infant nutrition 1,140 146 5,999 Dabur India Ltd Personal, Health & Homecare, Foods 753 112 3,516 Britannia
Slide 16: 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 O lC Oral Care 3 13% toothpowder Skin Care 3 7% Dabur Gulabari, Fem, Dabur Uveda Chyawanprash 1 63% Dabur Chy
Slide 17: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 17 17
Slide 18: Business Structure
Business Structure Dabur operates through three focused Strategic Business Units Revenue Business Unit Description Share FMCG portfolio comprising four distinct businesses: Consumer Care • Personal Care 72% Division • Health Care • Home Care • Foods Range of ethical and OTC products Consumer Health
Slide 19: 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 20: Brand Overview
Brand Overview Health Care Personal Care Home Care Foods 20 20
Slide 21: Brand Architecture
Brand Architecture 9 Starting from Ayurveda, the company successfully ventured into herbal arena becoming the ‘Herbal Specialist’ 9 While herbal businesses form the core with 85% of revenues, the company’s growth ambitions are not limited by it. 9 A robust brand architecture ensures that the core va
Slide 22: 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 Share ACN June June, 09 Largest brand in coconut oil Value proposition the portfolio Shampoo Key Brands Market
Slide 23: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) 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 Share-ACN ACN March March, 2010 toothpaste Health Supplements Key Brand
Slide 24: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Foods Key Brands Market Share 3.7% 15.5% 45% 36.4% Dabur Pepsi Priya Gold Others Real: Flagship Real Activ: Range Real Burrst: New V l Value Sh Share-ACN ACN M May, 09 ; Fruit F it JJuice i category t beverages brand of 100% pure juice fruit Drink brand Skin Care Ma
Slide 25: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Digestives Market Share Key Brands 37% 55% 8% Hajmola: Flagship brand Hajmola tasty Hajmola Satmola Others for branded Digestives digestive candy Value a ue Share-ACN S a e C March, a c , 2010 0 0 Home Care Air Fresheners – Market Share Key Brands 20% 26% 5% 20% 30%
Slide 26: Fem Care
Fem Care 9 Fem Care was acquired on June 25, 2009 and has been merged with Dabur India Ltd. retrospectively from April 1, 2009 9 Fem Care grew by 16.6% during 1st July 2009 to 31st March 2010 inspite of portfolio rationalization 9 During the period 1st July 2009 to 31st March 2010, PAT of Fem Care i
Slide 27: 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) OTC (64%) ETHICAL (36%) CHD: Repository of Dabur’s Ayurvedic Healthcare knowledge 9 Generics 9 Tonic Plans underway to build a comprehensive 9 Bra
Slide 28: International Business Division
International Business Division Started as an Set up a franchisee at Renamed franchisee as Dabur Building scale-20% of Exporter Dubai in 1989 International Ltd overall Dabur Sales (FY09) Focus on Order Demand generation Local operations further strengthened High Levels of Localizatio
Slide 29: 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 a Treatments eat e ts Vatika Hair Oil V tik DermoViva Vatika D Vi S Soaps 29 29
Slide 30: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 30 30
Slide 31: Growth Strategy
Growth Strategy EXPAND DABUR INDIA LIMITED ACQUIRE INNOVATE THREE PRONGED STRATEGY FOR SUSTAINING GROWTH 31 31
Slide 32: Expansion Strategy
Expansion Strategy Strengthening new categories Targeting inorganic 9 Skin Care: Ayurvedic skin care opportunities range g under a new brand 9 Market Entry: y Acquisitions q launched; Acquisition of Fem critical for building scale in 9 OTC Healthcare: Leveraging existing categories & markets Ayurved
Slide 33: Index
Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 33 33
Slide 34: Financial Performance – FY2010 (Audited)
Financial Performance – FY2010 (Audited) 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% 18.50% 18.3% 10000 18.00% 0 17.50% FY09 FY10 FY09 FY10 PAT*: FY10 v/s FY09 9 Sales growth led primarily by continued double digi
Slide 35: Stock Performance & Shareholding Pattern
Stock Performance & Shareholding Pattern Dabur’s Stock Price vis-à-vis NIFTY Shareholding Structure* FIIs, 14.5 Indian % Public P bli and d Others, 6. Banks/FIs/ 6% Insurance Prom oters, Cos., 8.0 69.0% % Mutual Funds, 1.9 % Prices rebased to 100 *As on April 30, 2010 Dabur Outperformed the index by
Slide 36: Accolades
Accolades Ranked 25th most Ranked R k d 28th iin ET-Brand ET B d Listed in Forbes’ 200 Ranked 79th in 'Super 100' Equity Most Trusted valuable brand in the list Best Under-A-Billion list announced by Business Brands 2009 list. of India's 100 Most Companies List India Valuable Brands, by 4Ps. Dabur I
Slide 37: Investor Relations
Investor Relations Dabur India Ltd Contact:+91-11-42786000 37 37