DIL - Investor Presentation Sep2011 Meet/100096_20111031.pdf · Dabur India: Overview 9Established in 1884 - more than 125 Years of Trust & Excellence 9Among top 4 FMCG companies

Dabur India LtdCorporate ProfileCorporate Profile

September, 2011

11

AgendaAgenda

Dabur India-Introduction

Business Overview

FMCG Industry Scenario

Growth Strategy

Business Overview

Recent Performance

22

Dabur India: OverviewDabur India: Overview

Established in 1884 - more than 125 Years of Trust & Excellence

Among top 4 FMCG companies in India

Eleven Billion Rupee Brands

World’s largest in Ayurveda and natural healthcare

Revenue of Rs. 41.1 billion and profits of Rs. 5.7 billion in FY2010-11

Strong brand equity

Dabur is a household brand

Vatika and Real are Superbrands

H j l R l & D b k d Hajmola , Real & Dabur ranked among India’s Most Admired Brands

11 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

Dabur ranked 200 in the Fortune India 500 list

Dabur moves up to take the 78th spot in the Super-100 list,

Dabur ranked the No. 2 Indian Green Brand by Green Brands Global

33

Strong overseas presence with 22% contribution to consolidated sales

released by Business India

Survey

Dabur: Vision and Core ValuesDabur: Vision and Core Values

•Dedicated to the health and well being of every householdVision

Ownership

Passion for WinningIntegrity

Core Values

People DevelopmentInnovation

Consumer FocusTeam Work

44

Focus

Key MilestonesKey Milestones

1884

•Dr. SK Burman started an Ayurvedic Pharmacy in Kolkatta

1972

•The company shifted base to Delhi from Kolkata

1986

•Registered as Public Limited Company

1994

•Listed on the B b St k

1998

•Professionalized with B F il h di

2003

•Pharmaceutical Business d d t f Bombay Stock

ExchangeBurman Family handing over day to management

de-merged to focus on core FMCG business

2004

•International Business set up in Dubai to tap overseas opportunity

2005

•Acquired Balsara strengthening Oral care & gaining entry into Home care

2006

•Dabur Figured in Top 10 Great Places To Work

2008

•Acquired Fem Care Pharma entering

2010

• Overseas acquisitions -Hobi Group, Turkey and

2011

•Crossed Rs. 40 bnmark in annual

55

Pharma entering mainstream Skin care

p, yNamaste Laboratories, US revenues and Market

Cap of US$4 billion

Dabur Consolidated : OverviewDabur Consolidated : OverviewS l

28 34134,158

41,099

350004000045000

Sales

in Rs. million

12,004 12,849 12,356 14,170 17,565 20,803 23,96328,341

05000100001500020000250003000035000

FY02 FY03 FY04^ FY05 FY06* FY07 FY08 FY09 FY10** FY11^^

in %

EBITDA Margin (in %) Net Profit

in Rs. million

2 817 3 329 3,9135,032 5,686

50006000

13 3%15.3%

17.1%18.1% 18.5% 18.3%

19.8% 19.9%

16.0%18.0%20.0%22.0%

1,065 1,558 2,142 2,817 3,329

01000200030004000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

13.3%

10.0%12.0%14.0%


66

^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 3.5% to topline in FY10^^Hobi and Namaste acquisitions added 4% to topline in FY11

Global FootprintGlobal Footprint

Canada

UK

Turkey

U.S. EgyptUAE

Nepal

Nigeria

B’Desh

Domestic Mfg. Locations

Manufacturing Facilities

Key markets

77

Our strategy is to localize manufacturing, supply chain and product offerings to suit consumer requirements

in each geography

Robust Distribution NetworkRobust Distribution Network

C&FA

Factory

(Carry & Forward Agents)C&FA

Stockist Super Stockist Institutions & Modern

(Carry & Forward Agents)

& Modern trade

Wholesalers Sub Stockist

RETAIL TRADE

CONSUMERS

88

Direct + Indirect Reach covering 2.8 Mn Retail Outlets

Research & Development FocusResearch & Development FocusStrong New Product Development

Ayurvedic Medicines

Personal Care

F d

Team of scientists including Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue Culture specialists, etc.

Foods

Home Care

OTC HealthcareAgro Biotech Initiatives

Protecting endangered herbsg g

Technical assistance to farmers

Contract cultivation of herbs

Green House at Nepal

Dabur introduced more than 20 new products/variants during FY11

Agronomy Initiatives : Greenhouse at Dabur Nepal & Uttaranchal

Dabur Research Facilities

99

AgendaAgenda


Business Overview


Growth Strategy

Business Overview

Recent Performance

1010

FMCG Industry SnapshotFMCG Industry Snapshot

1,0241,161

1,3391,200.00

1,400.00

1,600.00

Key Highlights FMCG Industry Size (India)

FMCG industry size at US$30 billion inCY10 and expected to grow to US$74billion in 2018*

in Rs. billion

755 856,

200.00

400.00

600.00

800.00

1,000.00

Industry has grown at 15% in CY10

Rural sector accounts for about 33% oftotal revenue; growing faster thanurban

0.00

CY06 CY07 CY08 CY09 CY10

FMCG Split: OTC, Food and Non-FoodFMCG Growth : Urban & Rural

urban

Of the entire FMCG sector, Food is52%, Non-Food at 45% and OTC 3%

Source: AC Nielsen

9% 10%12%

12%

15%

11%

16%

10%12%

18%

10%

15%

20%

80 000

100,000

120,000

140,000

OTC PRODUCTS

(11%)

(8%)

(14%)

(19%)(10 %)82,615

97,276

116,053128,580

Rs. Crores

46

45

4

4

43

3%

-8%

-1%1%

10%

-5%

0%

5%

CY03 CY04 CY05 CY06 CY07 CY08 CY0920,000

40,000

60,000

80,000Non‐Food

Food Products

(14 %)

(19%)

(20 %)(22%)

(14 %)

48

48

50

4646

5052

4

1111

Source: AC NielsenSource: AC Nielsen

-10% Urban Rural 0

MAT Sep'07 MAT Sep'08 MAT Sep'09 MAT Sep''10

FMCG Growth StoryFMCG Growth Story

India FMCG Sector – Volume and Value Growth Rate (Y-o-Y %)

High Growth Phase

India’s FMCG sector reported steady sales CAGR of 11.2% over FY00-10 on the back of strong annual volume growth of ~8 5%

Source: Industry data, Standard Chartered Research

back of strong annual volume growth of ~8.5%.

Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favorable demographics

FMCG industry expected to grow in mid to high teens going ahead

1212

Penetration Levels: Sufficient HeadroomPenetration Levels: Sufficient Headroom

77%80%

80%

90%

Rural Penetration Urban Penetration

42%

67%

57%59%

50%

60%

70%

42%

37%

18% 18%

32%

19%

26%

20%

30%

40%

3% 2%4%5%

0%

10%

Toothpaste Shampoo Hair Oil Skin Cream Mosquito Repellants

Instant Noodles

Hair Dyes Floor Cleaners

Source: Industry Data

Low penetration levels offer room for growth across consumption categoriesRural penetration catching up with urban penetration levels

1313

Rural penetration catching up with urban penetration levels

Per Capita Consumption: Room for GrowthPer Capita Consumption: Room for Growth

7 79 2 73

Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$)

in US$in US$

India has low per capita consumption as compared to other emerging economies

3.2

7.4 7.7

3

4

5

6

7

8

1.0 1.1

2.72.4

1

1.5

2

2.5

0.8 0.30

1

2

China Indonesia India Malaysia Thailand

0.3

0

0.5


2.9

2 02.5

3

3.5

Toothpaste – Per Capita Consumption (in US$)

in US$

0.5

1.0

0.4

2.0

0

0.5

1

1.5

2

1414


Source: MOSL

Key Players: FMCGKey Players: FMCGi US$ illi

Company Key Categories Sales Profit Market Cap

Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4,376 510 15,457

in US$ million

,

Nestle India Ltd* Food, Beverages, Infant nutrition 1,390 182 8,341

Dabur India Ltd Personal, Health & Homecare, Foods 913 126 4,447

Godrej Consumer Hair Care, Soaps 828 114 3,040

Colgate Palmolive (I) Ltd* Oral Care & Toiletries 493 89 2,753

Glaxo Smithkline Consumer Health Care 512 67 2 276Consumer* Consumer Health Care 512 67 2,276

Marico Ltd. Hair care, Food, Skincare 695 64 1,928

Procter & Gamble Feminine Hygiene personal Hygiene and Health Care^

Feminine Hygiene, personal care 203 40 1,395

Britannia Industries Ltd* Biscuits 1,023 30 1,256

1515

Source: Published results for year ending 31.03.11

*Year ending 31.12.10

^Year ending 30.06.09

Note: Market Cap. as of June 21, 2011

Dabur: Strong Presence in FMCG CategoriesDabur: Strong Presence in FMCG Categories

Hair Care Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos

Market SharePosition Key BrandsCategory

12%3

Oral Care

& Vatika Shampoos

Red toothpaste, Babool, Meswak, Red toothpowder

D b G l b i F D b

13%3

Ayurvedic Tonics

Dabur Gulabari, Fem, Dabur Uveda

Dabur Chyawanprash

Skin Care 7%3

67%1

Digestives Hajmola

Fruit Juices Real Fruit Juices, Real Activ

56%1

52%1Fruit Juices Real Fruit Juices, Real Activ

Honey Dabur Honey

52%1

1 50%

1616

Glucose Dabur Glucose

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

2 25%

AgendaAgenda


Business Overview


Growth Strategy

Business Overview

Recent Performance

1717

Business StructureBusiness StructureDab ope ates th o gh th ee foc sed St ategic B siness UnitsDabur operates through three focused Strategic Business Units

Consumer Care

• FMCG portfolio comprising four distinct businesses: • Personal CareConsumer Care

Division • Consumer Health Care• Home Care• Foods

68%

International Business Division

• Catering to health and personal care needs of customers across different international markets spanning Middle East and Africa, 22% p g ,South Asia, EU and U.S.

• Range of ethical and OTC

22%

Consumer Health Division

• Range of ethical and OTC products that deliver the age‐old benefits of Ayurveda in modern ready‐to‐use formats

8%

1818Note: Percentage share in revenue based on FY11 Financials ; Hobi and Namaste included in International Business Division

Consumer Care Division OverviewConsumer Care Division OverviewHCPD

CCD

FPD Balsara Foods FEM

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

FPD: Family Products Division

HCPD: Health Care Products Division

Balsara and Fem were acquisitions

Category-wise Share of CCD Sales

Balsara and Fem were acquisitions

Foods division was a 100% subsidiary of DIL

18 658 20,30123,265

27,912

25000

30000

in Rs. million

CCD Sales - Historical

10,15812,250

14,01316,392

18,658

0

5000

10000

15000

20000

1919


Note: Percentage share based on revenue for FY11

Hair Oil

Consumer Care Division CategoriesConsumer Care Division Categories

Market ShareKey Brands

Hair Oil

Dabur Amla: Largest brand in the portfolio

Vatika: Value added coconut oil

Anmol Hair Oil: Value propositionValue Share-ACN MAT Mar 2011

Shampoo


Shampoo

2020

Vatika range of shampoosValue Share-ACN MAT Dec-2010

Oral Care


Market Share Key Brands

Oral Care

Value Share -ACN MAT Mar, 2011

Dabur Red: Toothpaste & Toothpowder

Babool: Targeted at economy segment

Meswak: Premium therapeutic toothpaste

Health Supplements

Chyawanprash – Market Share Key Brands

Dabur Honey: Largest

2121

Volume Share-ACN MAT - Mar, 2011

Dabur Chyawanprash: Largest selling health supplement in the country

Dabur Glucose: 2nd largest player in the country

Dabur Honey: Largest branded honey in the country; growing category through replace sugar strategy

F d



Foods

Company Est. Mar, 2010 for Fruit Juice category Real: Flagship beverages brand

Real Activ: Range of 100% pure juice

Skin Care

Market Share* Key Brands

Skin Care

2222

*Company estimates;

Includes Fem skin care portfolio

Gulabari range of rose based skin care products: Moisturizer, Face freshener & Rose water

Fem Gold Bleach: Launched recently

Uveda: Range of Ayurvedic Skin Care

Digestives



Digestives

H j l Fl hi b d H j l t t

Value Share-ACN MAT Mar, 2011 for Herbal Digestives

Hajmola: Flagship brand for branded Digestives

Hajmola tasty digestive candy

Home Care


2323

Value Share-ACN MAT March, 2011 for Mosquito Repellants Cream category

Odonil: Air freshner range: Largest brand in the portfolio

Odomos: Mosquito repellant skin cream

Sanifresh: Toilet cleaner

Consumer Health DivisionConsumer Health DivisionDescription CHD StructureDescription

CHD: Repository of Dabur’s AyurvedicHealthcare knowledgeRange of over 260 productsFocusing on multiple therapeutic areas

CHD Structure

OTC (64%) ETHICAL (36%)Focusing on multiple therapeutic areas.Distribution coverage of 200,000chemists, ~12,000 vaidyas & 12,000Ayurvedic pharmaciesFocus on growing the OTC Health-Care

Generics

Branded Products

Tonic

Classicals

Branded Ethicals

portfolio aggressively

OTC Healthcare is Rs.130 billion size

Healthcare Focus

industryExpected to grow at 14-15% p.a. aspreference for Over-the-Counter productsacceleratesDabur to expand its presence by :

Honitus: Day & Night for Cold and Flu relief

Pudin Hara Lemon Fizz for digestion

Dabur to expand its presence by :Consolidating / expanding currentportfolioLaunching new products inemerging therapeutic areas

2424

Promoting Dabur Ayurveda: Generating equity for Ethical portfolio

Look at inorganic opportunitiesAcquired the energizer brand, ThirtyPlus from Ajanta Pharma in May 2011

International Business DivisionInternational Business DivisionSt t d S t f hi t R d f hi D b B ildi l 22% f Started as an ExporterFocus on Order fulfillment through India Mfg.

Set up a franchisee at Dubai in 1989Demand generation led to setting up of mfg in Dubai & Egypt

Renamed franchisee as Dabur International LtdLocal operations further strengthenedSet up new mfg facilities in Nigeria,RAK & Bangladesh

Building scale-22% of overall Dabur Sales (FY11)High Levels of LocalizationGlobal Supply chain

1980’s Early 90’s 2003 Onwards Today

Highlights

D b ’ b i t ib t 22%

High Growth in IBD

i R illi

3 7604,770

6,025

8,922

5000

6000

7000

8000

9000

10000

Dabur’s overseas business contributes 22%to consolidated sales led by CAGR of 32% inlast 6 yearsFocus markets:

GCC

in Rs. million

1,2811,807 2,258

2,9173,760

0

1000

2000

3000

4000


EgyptNigeriaTurkeyBangladeshNepalNepalU.S.

High level of localization of manufacturingand sales and marketingLeveraging the “Natural” preference amongl l t i h i l

2525

New products contributing significantly to overseas sales

local consumers to increase share in personalcare categoriesSustained investments in brand building andmarketing

AgendaAgenda


Business Overview


Growth Strategy

Business Overview

Recent Performance

2626

Growth StrategyGrowth Strategy

Three pronged Growth Strategy

Expand Innovate Acquire

Our differentiation is the herbal and ayurvedic platform

Expand

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

Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories

Calibrated international expansion – local manufacturing and supply chain to enhance flexibility p g pp y y/ reduce response time to change in market demands

Innovate

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

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

Acquire

Acquisitions critical for building scale in existing categories & markets

2727

Should be synergistic and make a good strategic fit

Target opportunities in our focus markets

Acquisition of Hobi Group, TurkeyAcquisition of Hobi Group, TurkeyAcquisition of Hobi Group, Turkey for a totalconsideration of US$ 69 Million completed onOctober 7, 2010

Hobi manufactures and markets hair, skin andbody care products under the brands Hobbyand New Era

Product range of the company iscomplementary to our product range

Acquisition provides an entry into anotherattractive emerging market and a goodplatform to leverage this across the region

2828

Acquisition of Namaste LaboratoriesAcquisition of Namaste LaboratoriesDabur India Limited through its subsidiary Dabur International Limited acquired 100% stakein Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011

Namasté is a leading ethnic hair care products company, having products for women ofcolour, with revenues of $95 million from US, Europe, Middle East and African markets

The company markets a portfolio of hair care products under the brand ‘Organic RootStimulator’ and has a strong presence in ethnic hair care market for women of colour.

Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5billion and tap into significant market opportunity in the fast growing, hugely populated (~1B ) t hi hl d t t d k t f S b S h Af iBn) yet highly underpenetrated consumer markets of Sub Saharan Africa

At an acquisition price of $100 million, the deal value is at 1.1x Sales and 8.3x EBITDA

2929

AgendaAgenda


Business Overview


Growth Strategy

Business Overview

Recent Performance

3030

Recent Financial PerformanceRecent Financial Performance

19.8% 19.9%2 0 . 0 %

2 5 . 0 %

34,158 41,09935000

40000

Sales: FY11 v/s FY10

in Rs. million

EBITDA Margin: FY11 v/s FY10

in %

0 . 0 %

5 . 0 %

1 0 . 0 %

1 5 . 0 %

0

5000

10000

15000

20000

25000

30000

FY10 FY11FY10 FY11

5,032 5,6866000

PAT: FY11 v/s FY10

in Rs. million

Sales for FY11 increased by 20.3%,largely driven by volumes andacquisitions

EBITDA margin was maintained

0

1000

2000

3000

4000

5000

FY10 FY11

EBITDA margin was maintaineddespite input cost inflation

PAT grew by 13.0% despite increase inin tax rate

3131

FY10 FY11

Stock Performance & Shareholding PatternStock Performance & Shareholding Pattern

FIs/ FIIs Indian

Shareholding Structure*Market Capitalization in Rs. billion

210

Promoter

FIs/ MFs/Ins.

Cos., 7.1%

FIIs, 17.4%

Indian Public and

Others, 6.7%

17

210

Promoters, 68.7%

2001 2011

*As on May 6, 2011

Dabur ranked as the organization that offers the best return to investors by u d s o g o o s s u o s o s ythe 6th Social & Corporate Governance Awards, presented by the Bombay

Stock Exchange

3232

Consolidated P&LConsolidated P&LIn Rs. million Q1FY12 Q1FY11 YoY (%)Gross Sales 12,162 9,244 31.6%Less:Excise Duty 117 79Net Sales 12,046 9,165 31.4%Other Operating Income 80 77 3 0%Other Operating Income 80 77 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 1 507 0 5%Ad Pro 1,515 1,507 0.5%% of Sales 12.5% 16.3%Other Expenses 1,583 1,217 30.1%% of Sales 13.0% 13.2%Other Non Operating Income 151 73 108.7%EBITDA 1 939 1 517 27 8%EBITDA 1,939 1,517 27.8%% of Sales 15.9% 16.4%Interest Exp. and Fin. Charges 126 36 253.8%Depreciation 154 135 14.2%Amortization 57 10 472.7%Profit Before Tax (PBT) 1,602 1,337 19.8%Tax Expenses 323 263 22.7%PAT(Before exceptional item) 1,279 1,074 19.1%% of Sales 10.5% 11.6%PAT(After exceptional Items) 1,279 1,074 19.1%

3333

( p )Minority Interest ‐ (Profit)/Loss 0.2 0.6

PAT (After Extra ordinary item & Minority Int) 1,277 1,068 19.6%

Consolidated Statement of Assets and LiabilitiesConsolidated Statement of Assets and LiabilitiesIn Rs. million As on Jun 11 As on Jun 10Sources Of FundsShareholders' Fund:Share Capital 1,741 869Reserves & Surplus 13,534 10,195

15,275 11,064Minority Interest 43 44Loan Funds:Secured Loans 4,762 1,387Unsecured Loans 5,349 10,111 830 2,217

Deferred Tax Liability 221 150yTOTAL 25,649 13,476

Application of funds:Fixed Assets:Gross Block 19,520 10,158less: Depreciation 4,509 3,493p a o ,509 3, 93Net block 15,011 6,665Capital WIP 654 246Investments 3,105 2,100Current Assets, Loans & AdvancesInventories 7,522 5,139Sundry Debtors 3 542 1 569Sundry Debtors 3,542 1,569Cash & Bank balances 3,619 3,104Loans & Advances 5,464 20,147 4,532 14,344Less: Current Liabilities and Provisions:Current Liabilities 6,543 5,583Provisions 7,655 4,979

14 198 10 562

3434

14,198 10,562Net Current Assets 5,949 3,782Miscellaneous Expenditure 931 682Deferred Tax AssetsTOTAL 25,649 13,476

Recent AccoladesRecent Accolades

Chyawanprash, Hajmola, Real chosen by Indian consumers as 'Power

Dabur ranked 7th Most Respected Company in the Fast Moving Consumer

Dabur ranked among Top 10 Best Companies To Work For in the Consumer

Dabur ranked 182 in the ET-500 list of India Inc's Heroes

Brands 2010-11'Moving Consumer Goods space in India

Goods and Durables sector

Dabur ranked in the Top 100 in Business Today's BT 500 list of India's Most Valuable Companies. Dabur was ranked 62

Dabur India Ltd awarded the Best Run Award In Supply Chain by SAP

Dabur moves up to take the 78th spot in the Super-100 list, released by Business India

Dabur ranked 200 in the Fortune India 500 list that ranks India's 500 largest corporations

3535

Investor RelationsDabur India Ltd

Contact:+91-11-42786000

3636

Documents

DIL - Investor Presentation Sep2011 Meet/100096_20111031.pdf · Dabur India: Overview 9Established in 1884 - more than 125 Years of Trust & Excellence 9Among top 4 FMCG companies