Dabur InvConf May 2010

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DABUR INDIA LIMITED

Goldman Sachs India Investor Conference, New York

May 2010



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4.4%

5.8%

3.8%

8.5%7.5%

9.4% 9.7% 9.2%

6.7% 7.2%

0

0.02

0.04

0.06

0.08

0.1

0.12

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

India Real GDP Y -o-Y Growth (% )

The Indian economy has been on a strong growth trajectory with real GDP growing

at a CAGR of 7.5% over the last decade

High rate of Gross Capital Formation of 35% and Gross Domestic Savings of 32.5%in 2009 expected to drive GDP growth of around 9% going forward.

Per capita income slated to treble in the next 10 years

Source : RBI & CSO estimates for F10 Source : World Bank, Edelweiss Research

ECONOMY OVERVIEW

Per Capita Income (USD)



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By 2025, India is poised to become the w orld's fifth largest consuming country

from current position of twelfth

Source : Mckinsey Global Institute Analysis

Aggregate Consumption across I ncome Brackets

4x

710

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70

Middle Class

MiddleClass

in trillion, Indian Rupees, 2000

Note:

Annual Income (in Indian Rupees, 2000): Globals >1,000,000; Strivers =500,000-1,000,000;Seekers=200,000-499,999; Aspirers=90,000-199,999; Deprived=<90,000

INDIA CONSUMPTION STORY



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3%

9%10%

12%

13%

20%

11%

-8%

-1%1%

16%

14%

18%

18%

-10%

-5%

0%

5%

10%

15%

20%

25%

CY03 CY04 CY05 CY06 CY07 CY08 CY09

U r ban Ru ral

Increasing per capita GDP hasbeen driving FMCG growth

This has translated into the

FMCG industry becoming aUS$25 billion industry in CY09(Y-o-Y grow th of 13.4% )

FMCG Growth : Urban & Rural

FMCG INDUSTRY IN INDIA

FMCG Industry Size (India)

in Rs. billion

Rural economy with governmentstimulus and rising non farmincomes has outpaced Urbangrowth

Source : AC Nielsen



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Increasing consumption andpenetration levels driving grow th

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131

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96

AFFLUENT

ASPIRERS

STRIVERS

2003181 mn households 2013231 mn householdsTop End BusinessHigh Disposables

RICH CLASSES

Growing

ConsumerismCredit Culture

ASPIRING CLASSES

B.O.P Opportunity

STRIVING CLASSES

Source : NCAER

India – Transforming from a pyramid to a diamond

FMCG INDUSTRY DRIVERS

Demographic factors:

Rising income levels

Expanding middle class

Young population



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Established in 1884 : 125 Years of Trust & Excellence

Among top 4 FMCG companies in India

World’s largest in Ayurveda and natural

healthcare Revenue of Rs. 33.9 billion and profits of Rs. 5

billion in FY2009-10

Strong brand equity

Dabur is a household brand

Vatika and Real are Superbrands

Hajmola , Real & Dabur ranked among India’sMost Admired Brands

10 Brands with sales of over Rs. 1 billion each

Wide distribution network covering 2.8 million

retailers across the country 17 world class manufacturing plants catering

to needs of diverse markets

Strong overseas presence with 18%contribution to consolidated sales

DABUR OVERVIEW

Ten Billion Rupee Brands



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Market Capitalization in Rs. billion

More than an 9-fold increase in market cap leading to strong wealth creation

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40

60

80

100

120

140

160

2001 2010

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in Rs. b i l l ion

I n c r

e a s e

o f

9 . 4 x

10 YEARS OF SUPERIOR VALUE CREATION



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Rs. 11billion

Sales

FY01 FY10

> 3x increase

Dabur has undergone a significant transformation over the last 10 years

Rs. 34billion

12.5%EBITDAmargins

>730 bps increase 19.8%

Rs. 0.8 billionPAT > 6.4x increase Rs. 5.0 bil lion

70 daysWorkingCapital > 5.8x decrease 12 days*

22.0%RoE > 1.7x increase 40%

DRIVEN BY STRONG FINANCIAL PERFORMANCE

7% 15%PATMargin

> 2x increase

Note: Working Capital excludes Cash and Bank Balances*Excludes provision for dividend



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ROBUST TOPLINE GROWTH

Rs. 11billion

Sales Rs. 34billion

FY01 FY10

> 3x increase

CAGR of 13.3% leading to a more than 3-fold growth in sales over the decade

Key Grow th Drivers

InnovationNew

GeographiesAcquisitions

Increase inMarket Shares

Red Toothpaste

Real & Activ

Vatika range of hair care

OTC products

Gulabari range of

skin care

Egypt

Nigeria

Levant

North Africa

Pakistan

Bangladesh

Balsara (2005) –Attractive herbalbased oral careportfolio

Fem (2009)Provided entry inthe high growth

skin care market

Market shareshave w itnessedexpansion in:

Oral Care

Shampoos

Skin Care



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12.50% 12%12.60%

13.3%

15.3%

17.1%18.1% 18.5% 18.3%

19.8%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

22.00%

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

STRONG MARGIN STORY

Key Growth Drivers

Efficiencies inprocurementDeployment of

technology platformssuch as e-sourcingMaterial cost wentdown from 49% inFY01 to 45% in FY10

OperationalefficienciesStable Overheads &

Staff costsImprovement inSupply chainmanagementS&D efficiencies

Economies of scaleGrowing scale in

domestic & internationalTranslating intohigher operatingleverage

Margins improved inspite of increase in adpro investments from 13.3% of sales in FY01 to 14.3% of sales in FY10

Improvement inproduct mixEntered high margin

categoriesFavourable categorymix

EBITDA Margin (in %)



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HealthCare

PersonalCare

HomeCare

Foods

STRONG PORTFOLIO OF BRANDS



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Manufacturing Facilities

Egypt

DubaiBangladesh

Nepal

RAK

Nigeria

Key markets

We continue to build on our strategy of localized manufacturing and supplychain to improve response time to changing demand conditions

GLOBAL FOOTPRINT



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1.Sahibabad, U.P

2. Uttaranchal

3.Baddi, H.P

4.Jammu, J&K

5.Katni, M.P

6.Siliguri, W.B

7.Jaipur, Rajasthan

8.Silvassa

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MANUFACTURING LOCATIONS - INDIA

First Ayurvedic products companyto receive ISO 9002 certification

Certificate of ‘Good ManufacturingPractices’ to manufactureAyurvedic products

New manufacturing facility atBaddi, HP commissioned in March2010



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C&FA

Stockist Super Stockist Institutions& Modern

trade

Wholesalers

RETAIL TRADE

Sub Stockist

CONSUMERS

Factory

Direct + Indirect Reach covering 2.8 Mn Retail Outlets

(Carry & Forward Agents)

ROBUST DISTRIBUTION NETWORK



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Hair care includes Hair Oils & Shampoos;Oral care includes Toothpastes & Toothpowder;Skin care includes moisturizers, face cleaning, lightening, anti ageing & other skin care productsDigestives includes herbal digestives

Hair Care

Oral Care

Chyawanprash

Digestives

12%3Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos

13%3Red toothpaste, Babool, Meswak, Redtoothpowder

7%3 Dabur Gulabari, Fem, Dabur Uveda

63%1 Dabur Chyawanprash

55%1 Hajmola

Market SharePosition Key BrandsCategory

Skin Care

Fruit Juices 45%1 Real Fruit Juices, Real Activ

STRONG PRESENCE IN FMCG CATEGORIES



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Business Unit

Consumer CareDivision

Consumer HealthDivision

InternationalBusiness

Description

FMCG portfolio comprising four

distinct businesses:•Personal Care•Health Care•Home Care•Foods

Range of ethical and OTC productsthat deliver the age-old benefits of Ayurveda in modern ready-to-useformats

Caters to the health & personal care

needs of customers across differentinternational markets spanningMiddle East, North & West Africa,South Asia, EU and US through itsbrands Dabur and Vatika

Note: Percentage share in revenue based on FY10 Financials ; Femcare included in Consumer Care Division

RevenueShare

71%

8%

18%

BUSINESS STRUCTURE



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FPD: Family Products Division

HCPD: Health Care Products Division

Balsara and Fem were acquisitions

Foods division was a 100% subsidiary of DIL

i n R s . m i l l i o n

CCD Sales - HistoricalCategory-w ise Share of CCD Sales

CA G R - 1

5 %

HCPD

CCD

FPD Balsara Foods FEM

2003-2004 2006-2007 2007-2008 2008-2009

Note: Percentage share in revenue for FY10

Hair Care

31.4%

Oral Care

18.2%

Health

Suppleme

nts

19.9%

Digestives

8.6%

Skin

Care

2.4%

Home

Care

5.2%

Foods

14.2%

CONSUMER CARE DIVISION OVERVIEW



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11.2%6.0%

45.5%

23.8%

13.5%

Cavinkare Dabur HUL

P&G Others

7%

16%

3%

6%

31%

37%

Bajaj Dabur Dey's Medical

Emami Marico Others

Market Share

Market Share

Vatika range of shampoos Dabur Total Protect

Ayurvedic Shampoo

Dabur Amla:Largest brand inthe portfolio

Vatika: Value addedcoconut oil

Anmol Hair Oil:Value proposition

Key Brands

Value Share-ACN June, 09

Value Share-ACN Mar, 10

Key Brands

Hair Oil

Shampoo

CONSUMER CARE CATEGORIES



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12.7%

62.7%

7.9%

5.6% 11.1%

Baidyanath Dabur Emami Zandu Others

49.7%

22.8%

13.2%

14.3%

Colgate HUL Dabur Others

Market Share

Chyawanprash – Market Share

Value Share-ACN March, 2010


Dabur Red:Toothpaste & Toothpowder

Babool: Targeted ateconomy segment

Meswak: Premiumtherapeutictoothpaste

Dabur Chyawanprash:Largest selling healthsupplement in thecountry

Dabur Glucose:2nd largest

player in thecountry

Dabur Honey: Largestbranded honey in thecountry; growing

category through replacesugar strategy

Key Brands

Key Brands

Oral Care

Health Supplements




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58.9%

6.8%

6.6%

6.4%

3.2%

18.0%

Hindustan Lever Emami Dabur

Loreal Cavin Care Others

45%

36.4%

15.5%3.7%

Dabur Pepsi Priya Gold Others

Market Share

Market Share*

Value Share-ACN May, 09 ; Fruit Juice category

*Company estimates; Includes Fem skin care portfolio

Real: Flagshipbeverages brand

Real Activ: Rangeof 100% pure juice

Real Burrst: Newfruit Drink brand

Gulabari range of rose based skin careproducts: Moisturizer, Face freshener

& Rose water

Fem Skin care :Acquired recently

Key Brands

Key Brands

Foods

Skin Care




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20%

20%

30%

5%

26%

Odon il Air wick Premium Ambipur Others

55%

8%

37%

Hajmola Satmola Others

Market Share

Air Fresheners – Market Share


Value Share-ACN March, 2010 for Aerosols category

Hajmola: Flagship brandfor branded Digestives

Hajmola tastydigestive candy

Odonil: Air freshnerrange: Largest brandin the portfolio

Odomos: Mosquitorepellant skin cream

Sanifresh:Toilet cleaner

Key Brands

Key Brands

Digestives

Home Care




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CONSUMER HEALTH DIVISION

Description

CHD: Repository of Dabur’s AyurvedicHealthcare knowledge

Plans underway to build a comprehensivestrategy for a greater push in OTC Healthspace

Range of over 260 products Focusing on multiple therapeutic areas.

Distribution coverage of 200,000chemists, ~12,000 vaidyas & 12,000Ayurvedic pharmacies

CHD Structure

OTC (64% )

Generics

Branded Products

ETHICAL (36%)

Tonic

Classicals

Branded Ethicals

Promoting Dabur Ayurveda: Generatingequity for Ethical portfolio

OTC Healthcare is Rs.130 billion sizeindustry

Expected to grow at 14-15% p.a. aspreference for Over-the-Counter productsaccelerates

Dabur to expand its presence by :

Consolidating / expanding currentportfolio

Launching new products inemerging therapeutic areas

Look at inorganic opportunities

Healthcare Focus

Herbal Cough & ColdSyrup Mint based medicine for digestion



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1980’s Early 90’s 2003 Onwards Today

Started as anExporter

Focus on Orderfulfillment throughIndia Mfg.

Set up a franchisee atDubai in 1989

Demand generationled to setting up of mfg in Dubai & Egypt

Renamed franchisee as DaburInternational Ltd

Local operations further strengthened

Set up new mfg facilities inNigeria,RAK & Bangladesh

Building scale-18% of overall Dabur Sales

High Levels of Localization

Global Supply chain

New products contributingsignificantly to overseas sales

Highlights

Dabur’s overseas business contributes 18%to consolidated sales led by CAGR of 29% inlast 6 years

Focus markets:

GCC Egypt

Nigeria

Bangladesh

Nepal

U.S.

High level of localization of manufacturingand sales and marketing

Leveraging the “Natural” preference amonglocal consumers to increase share in personalcare categories

Sustained investments in brand building andmarketing and new product launches

High Growth in IBD


CA G R -

2 9 %

INTERNATIONAL BUSINESS DIVISION



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IBD PRODUCT PORTFOLIO

Hair Oils

Hair Creams

Hair Treatments

Existing Products NPDs and Relaunches

Vatika Shampoos

Vatika Conditioners

VatikaHair Oil

Dabur Herbal Toothpaste

Vatika – Hair FallControl

Dabur Amla Snake Oil

Vatika DermoViva Soaps



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In continuation of acquisitive growthstrategy, Dabur acquired Fem Care inJune 2009

Fem has entrenched equities infairness bleach category; Marketleader with over 60% market share.

The transaction has given Dabur anentry into high growth skin caremarket with an established brand ‘FEM’ and strong product capabilitiesin skin care

Acquisition expected to lead tosignificant revenue and cost synergiesfor Dabur and Fem Care

in Rs. million Jul-Mar FY09 Jul-Mar FY10 Gr o w t h

Sales 767 894 16.6%*

EBITDA 91 253 177.5%

As % of Sales 11.9% 28.3%

PAT 53 185 247.6%

As % of Sales 6.9% 20.7%

The following table depicts Y-o-Y improvement in performance of Fem Care for the9-Month period after coming under under Dabur management

FEM CARE

*Sales growth of around 16% despite discontinued business of Specialty Chemicals,pipeline corrections in Pharma division and portfolio rationalization in OTC



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Our differentiation is the herbal and ayurvedic platform

Acquire

Acquisitions critical for building scale in existing categories & markets

Should be synergistic and make a good strategic fit

Target opportunities in our focus markets

Expand Strengthening presence in existing categories and markets as well entering new

geographies

Maintain dominant share in categories where we are category builders like HealthSupplements, Honey etc.

Calibrated international expansion – local manufacturing and supply chain to enhanceflexibility / reduce response time to change in market demands

Innovate

Strong focus on innovation. Have rolled out new variants & products which havecontributed to around 5-6% of our growth p.a.

Renovation of existing products to respond to changing demands (Toothpowder toToothpaste)

Three pronged Growth Strategy

Acquire Expand Innovate

OUR STRATEGY



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i n %

EBITDA Margin (in % )

Sales

in Rs. m i l l ion

CA G R – 1 8

%

^Sales show a decline in FY04 on account of de-merger of Pharma business

*Balsara acquisition added 10% to topline in FY06** Fem acquisition added 10% to topline in FY10. FY10 financials are unaudited

Net Profit


CA G R -

3 0 %

FINANCIAL PERFORMANCE



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3,912

5,035

0

1000

2000

3000

4000

5000

6000

FY09 FY10

18.3%

19.8%

17.50%

18.00%

18.50%

19.00%

19.50%

20.00%

FY09 FY10

28,341

33,907

24000

26000

28000

30000

32000

34000

36000

FY09 FY10

Sales: FY10 v/ s FY09

i n Rs. m i l l ion

Sales growth led primarily by continued doubledigit volume growth

Fem Care Pharma which was acquired in 2008-09and consolidated with DIL w.e.f. June 25, 2009added about 3% in FY10 to topline.

EBITDA margin expanded by 150 bps during

FY10 led by lower input costs. PAT increased by 28.7% during FY10 due to

strong topline, improving gross margins andoperating leverage despite higher ad spend & taxprovisioning

EBITDA Margin: FY10 v/ s FY09

PAT*: FY10 v/ s FY09

i n Rs. m i l l ion

* PAT refers to Net Profit after Minority Interest

1 9. 6 %

1 5 0 b p

s

2 8. 7 %

FINANCIAL PERFORMANCE – FY2010 (UNAUDITED)



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Promoters,

69.0%

Mutual

Funds, 1.9%

Banks/FIs/

InsuranceCos., 8.0

%

FIIs, 14.5

%

Indian

Public and

Others, 6.6%

Dabur Outperformed the index by 26% during the period May 2009 to April 2010

*As on April 30, 2010

Shareholding Structure*Dabur’s Stock Price vis-à-vis NIFTY

Prices rebased to 100

STOCK PERFORMANCE AND SHAREHOLDING PATTERN



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in Rs. million Q4FY10 Q4FY09 YoY (% ) FY10 FY09 YoY (% )

Gross Sales 8,553 7,371 16.0% 33,909 28,341 19.6%

Less:Excise Duty 65 54 253 287

Net Sales 8,488 7,317 16.0% 33,657 28,054 20.0%

Other Operating Income 95 47 103.4% 241 256 -5.8%

Material Cost 3,843 3,423 12.3% 15,394 13,762 11.9%

% of Sales 44.9% 46.4% 45.4% 48.6%

Employee Costs 754 592 27.4% 2,804 2,347 19.5%

% of Sales 8.8% 8.0% 8.3% 8.3%

Ad Pro 1,156 963 20.1% 4,845 3,433 41.1%

% of Sales 13.5% 13.1% 14.3% 12.1%

Other Expenses 1,115 1,044 6.8% 4,284 3,808 12.5%% of Sales 13.0% 14.2% 12.6% 13.4%

Other Non Operating Income 48 43 11.7% 147 213 -31.1%

EBITDA 1,762 1,385 27.2% 6,717 5,173 29.9%

% of Sales 20.6% 18.8% 19.8% 18.3%

Interest Expenses 25 83 -70.3% 132 232 -43.3%

Depreciation/Amortization 149 144 3.6% 557 492 13.2%

Profit Before Tax (PBT) 1,589 1,158 37.2% 6,028 4,448 35.5%

Taxes 236 106 123.5% 985 540 82.3%

PAT(Before exceptional item) 1,353 1,053 28.5% 5,043 3,908 29.1%

% of Sales 15.8% 14.3% 14.9% 13.8%

PAT(After exceptional Items) 1,353 1,053 28.5% 5,043 3,908 29.1%

PAT (After Extra ordinary item & MI ) 1,353 1,043 29.7% 5,035 3,912 28.7%

Diluted EPS (Rs)1.56 1.21 5.79 4.50

CONSOLIDATED P&L FY10 & Q4FY10 (unaudited)



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in Rs. million As on Mar 10 As on Mar 09Sources Of FundsShareholders' Fund:Share Capital 868 865

Reserves & Surplus 11,892 7,323

12,760 8,188

Minority Interest 84 46

Loan Funds:

Secured Loans 702 957Unsecured Loans 1,090 1,793 1,319 2,276

Deffered Tax Liability 382 305

TOTAL 15,019 10,815

Application of funds:

Fixed Assets:

Gross Block 12,427 8,585less: Depreciation 3,395 2,993

Net block 9,032 5,592

Investments 2,641 3,470

Current Assets,Loans & AdvancesInventories 4,283 3,755

Sundry Debtors 1,347 1,779

Cash & Bank balances 1,924 1,484

Loans & Advances 3,706 11,260 2,490 9,508Less: Current Liabilities and P rovisions:Current Liabilities 4,945 4,817

Provisions 3,260 3,260

8,206 8,077Net Current Assets 3,055 1,432Miscellaneous Expenditure 27 86

Deffered Tax Assets 263 235

TOTAL 15,019 10,815

CONSOLIDATED BALANCE SHEET – MAR 31, 2010 (unaudited)



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Dabur India Ltd wasranked the BusinessLeader in the FMCG -Personal Care Category atthe NDTV Profit BusinessLeadership Award 2008

Ranked 28th in ET-BrandEquity Most TrustedBrands 2009 list.

Listed in Forbes’ 200Best Under-A-BillionCompanies List

Ranked 79th in 'Super 100'list announced by BusinessIndia

Ranked 182 in ET-500, theannual listing of India's BlueChip companies by TheEconomic Times.Also ranked as the fourthlargest pure-play FMCGcompany in the list.

Ranked 25th mostvaluable brand in the listof India's 100 MostValuable Brands, by 4Ps.

Voted as the fourth MostLiked Health Brand in thecountry in consumersurvey conducted by'Complete Wellbeing'magazine

Dabur India Ltd has beenawarded the Top MarketerAward for 2009 in theConsumer Goods categoryby Pitch magazine

ACCOLADES



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Investor Relations

Dabur India Ltd

Contact:+91-11-42786000

Documents

Dabur InvConf May 2010