5EE3E754-8519-481E-8C04-8E603B697251

COMPANY PROFILE

Dabur India Limited

REFERENCE CODE: 5EE3E754-8519-481E-8C04-8E603B697251PUBLICATION DATE: 29 Jan 2015www.marketline.comCOPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................6

Key Employees...................................................................................................10

Key Employee Biographies................................................................................11

Major Products and Services............................................................................15

Revenue Analysis...............................................................................................19

SWOT Analysis...................................................................................................20

Top Competitors.................................................................................................25

Company View.....................................................................................................26

Locations and Subsidiaries...............................................................................28

Dabur India Limited Page 2© MarketLine

Dabur India LimitedTABLE OF CONTENTS

COMPANY OVERVIEW

Dabur India Limited (Dabur or 'the company') is a fast moving consumer goods (FMCG) companythat manufactures and markets ayurvedic and natural healthcare products. The company sells itsvarious products through its five flagship brands across natural healthcare products, premium haircare, digestives, fruit-based beverages, and fairness bleaches and skin care categories.The companyoperates in Asia, Africa, the Middle East, the Americas and Europe. It is headquartered in Ghaziabad,India and employed 6,382 people as of March 31, 2014.

The company recorded revenues of INR70,944.3 million (approximately $1,177.7 million) during thefinancial year ended March 2014 (FY2014), an increase of 15% over FY2013. The operating profitof the company was INR10,589.4 million (approximately $175.8 million) in FY2014, an increase of17.3% over FY2013. The net profit of the company was INR9,139.2 million (approximately $151.7million) in FY2014, an increase of 19.7% over FY2013.

KEY FACTS

Dabur India LimitedHead OfficeKaushambiGhaziabadUttar Pradesh 201010IND

91 120 3982000Phone

91 120 4374935Fax

http://www.dabur.comWeb Address

70,944.3Revenue / turnover(INR Mn)

MarchFinancial Year End

6,382Employees

500096Bombay Ticker

DABURNational StockExchange of Indiaand MCX StockExchange LimitedTicker


Dabur India LimitedCompany Overview

BUSINESS DESCRIPTION

Dabur is an Indian consumer goods company that manufactures and sells a variety of productsacross personal care, healthcare, homecare and food categories.The company markets its productsin over 60 countries and has its operations spread across the Middle East, Africa, Asia, the Americasand Europe. Dabur's portfolio comprises of over 400 products positioned across the herbal andnatural space.

The company operates through three key strategic business units, namely: consumer care business,foods, and international business. However, Dabur reports its revenues under four business segments:consumer care business, foods, retail and others.

The consumer care business is the largest business unit within Dabur and consists of its core FMCGbusinesses.This unit is further divided into three key portfolios: healthcare, personal care and homecare.

Dabur's healthcare portfolio consists of Ayurveda-based offerings including Ayurveda-basedover-the-counter (OTC) products, and branded ethical and classical products, such as healthsupplements, and digestives.The health supplement products include Dabur Chyawanprash (in twovariants: Dabur ChyawanPrakash and Dabur Chyawan Junior), Dabur Glucose and Dabur Honey.The Ayurveda-based digestive products include the Hajmola tablets, Hajmola candy, Hingoli, PudinHara, Pudin Hara-Lemon Fizz, Nature Care and Sat Isabgol. The Ayurveda-based OTC productsinclude Dabur Pudin Hara for relief from stomach ache, gas and indigestion, Dabur Active Antacid,Honitus cough syrup, Shilajit Gold rejuvenator, Dabur Active Blood Purifier, Shankha Pushpi naturaltonic for children, Dabur Badam Oil, Dabur Lal Tail Ayurvedic baby massage oil, Dabur Janma Ghuntifor stomach ailments in infants, Dabur Gripe Water for infants, and Dabur Balm Strong for headaches.

The personal care products range includes herbal and ayurvedic hair care, oral care, and skin andbody care products. The hair care products include hair oils and shampoos under brands DaburAmla, Dabur Almond, and Vatika. The skin and body care range includes two major brands Femand Gulabari.The Fem brand offers fairness bleaches and hair removing creams while the Gulabaribrand offers rose-based skin care products.The company also offers Dabur Uveda range of productsfor fairness, moisturizing, clarifying, repair, anti-ageing and sun block purposes. The oral careproducts include Dabur Red toothpaste, Babool toothpaste, Meswak toothpaste, Promise toothpasteand Lal Dant Manjan Ayurvedic toothpowder.

The home care range of products include Odomos mosquito repellent, Odonil air fresheners, SanifreshShine toilet cleaner and Odopic dish wash products.

Dabur's food products include Real fruit juice, Activ unsweetened juices, Burrst fruit beverage,Hommade cooking pastes, Lemoneez lemon juice, and Capsico red pepper sauce.


Dabur India LimitedBusiness Description

The international business unit includes Dabur’s organic overseas business as well as the acquiredentities of Hobi Group and Namaste Laboratories. The company’s major international markets arethe Middle East, Africa, Asia (excluding-India), the Americas and Europe (including Turkey). Thecompany has manufacturing facilities in the UAE, Egypt, Nigeria, Turkey, Nepal, Bangladesh andSri Lanka.

In addition, the company operates specialized beauty retail business through the wholly-ownedsubsidiary H&B Stores.The retail business operates a chain of beauty retail outlets under the brandname NewU. At the end of FY2014, the company had 46 retail stores in India. These stores offer awide range of beauty care products and are mainly located in premium footfall malls. NewU alsooffers a range of beauty products in body lotion, body washes, make-up remover and lip balmscategories under its own private label Zensual.


Dabur India LimitedBusiness Description

HISTORY

Dabur was founded by Dr. S K Burman in 1884, starting from a small shop in Calcutta from wherehe began a direct mailing system to send his medicines.

During 1896, the demand for the fledgling company's medicines grew, necessitating the massproduction of some of the medicines. As a result, Dr. Burman established a small manufacturingplant at Garhia near Calcutta.

In the early 1900s, the next generation of Burman's took a conscious decision to enter the ayurvedicmedicines market. By 1919, the company began a search for processes to suit the mass productionof ayurvedic medicines without compromising on basic ayurvedic principles. This led to theestablishment of the first research and development (R&D) laboratory at Dabur.

In 1920, a manufacturing facility for ayurvedic medicines was set up at Narendrapur and Daburgram.The company's distribution network was also expanded to Bihar and the northeast.

Dabur India Pvt. Ltd was incorporated by the company in 1936. In 1940, the company diversifiedinto personal care products with the launch of its Dabur Amla Hair Oil. In 1949, Dabur launchedDabur Chyawanprash, the first branded Chyawanprash of India.

Dabur's growth and expansion continued over the following decades and Dabur expanded its personalcare portfolio by adding oral care products. In 1972, the company shifted its base to Delhi fromCalcutta and started production from a manufacturing facility at Faridabad.

The company launched Hajmola tablet, a branded ayurvedic medicine, in 1978. In the following year,Dabur Research Foundation was established and commercial production started at Sahibabad.

In 1986, Dabur became a public limited company through a reverse merger with Vidogum Limited,and was re-christened Dabur India Limited. The company launched Hajmola Candy in 1989.

Dabur entered into a joint venture with Agrolimen of Spain for the manufacture and marketing ofconfectionery in India, in 1992. The oncology formulation plant at Baddi, Himachal Pradesh was setup in 1993.

In 1994, Dabur made first public issue of shares, with the reorganization of the business, throughthe division of the sales, marketing and business into three distinct divisions, occurring in the sameyear.That year the company entered into the oncology market with the launch of Intaxel (Paclitaxel).

The company entered into a joint venture with Osem of Israel, for food, and Bongrain, for cheeseand other dairy products, in 1995. It launched Real Fruit Juice in 1996 and established foods divisionin 1997.


Dabur India LimitedHistory

The company entered into OTC women's care market with the launch of Efarelle Comfort for MenstrualPain in 2000.

Dabur's pharmaceuticals division launched Thalidomide, a new drug formulation for treating MultipleMyeloma, a type of blood cancer, and Erythma Nodosum Leprosum (ENL), a painful skin conditionassociated with Leprosy, in 2002.

In 2003, the company demerged its pharmaceuticals business from the FMCG business into aseparate company.The company acquired Balsara Hygiene and Home Products (based in Mumbai)in 2006.

Dabur merged its wholly-owned subsidiary Dabur Foods Limited with itself in 2007. In the sameyear, the company entered into a rural retail agreement with Indian Oil Corporation (IOC) to servethe rural market demand for consumer goods through IOC's chain of Kisan Seva Kendra.

In 2008, the company's retail subsidiary, H&B Stores, opened its first beauty, health and wellnessretail store in India, in the Rajouri Garden, Delhi.

H&B Stores opened its fourth new outlet in Bangalore in 2009. In the same year, Dabur acquiredFem Care Pharma, a provider of women's skin care products.

In 2010, Dabur acquired Hobi Kozmetik Group, a personal care products company in Turkey, for$69 million. Dabur acquired 100% equity in Namaste Laboratories and its three subsidiary companies,Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, andUrban Laboratories International, along with its South African arm for $100 million, in an all-cashdeal towards the end of 2010.

In 2011, the company acquired Ajanta Pharma's OTC energizer brand '30-Plus'. In the same year,the company entered the Indian mint candy market with the launch of Hajmola Mint Masti.

Dabur entered the largely unorganized and unbranded categories in the aroma products market ofIndia with the launch of Odonil Occasions, a special package of different formats of home fresheners,in 2011. With this launch, Dabur positioned Odonil as a complete air freshening brand for everyspace in homes.

Further in 2011, the company entered the Sri Lankan fruit-based beverages market with the settingup of an overseas subsidiaryDabur Lanka (Pvt.) Ltd. Later in 2011, the company launched DaburAlmond Hair Oil that offers superior nourishment for 100% damage-free hair. During the same year,Dabur entered the professional skin care market with the launch of OxyLife Professional Facial Kit,designed exclusively for professional use. Also in 2011, the company launched its first online shoppingportal, www.daburuveda.com. With this, Dabur became the first Indian FMCG company to launcha dedicated online shopping portal for its beauty products range.



Dabur launched its rose-based beauty care brand, Dabur Gulabari, in a new-look Beauty Pack in2012. In the same year, Ayurveda! Dabur Uveda, the ayurvedic skin care expert from Dabur, enteredthe sunscreen market with the launch of Dabur Uveda Sunblock Cream SPF 30, the first ayurvedicsunscreen that prevents tan and lightens skin tone. Also in 2012, New U opened two flagship outletsin Khan Market and Defence Colony in South Delhi.

Further in 2012, the company re-launched its health rejuvenator and energizer brand, 30-Plus, witha new formulation. During the same time, Dabur re-launched its natural hair care brand Vatika withpremium natural ingredients. Towards the end of 2012, Odonil, the home and air freshening brandof Dabur, entered the gel market with the launch of Odonil Good Living range of refreshing airfreshening gels. Around the same time, Dabur expanded its fruit beverage range, Real Activ Fiber+,with the launch of two new fruit-mix variantsbanana strawberry and green apple punch.

In 2013, the company expanded its oral care portfolio with the launch of Dabur Super Babool+SaltPower Toothpaste, India's first natural toothpaste with two oral care ingredients, Salt and Babul'Acacia Arabia' extracts. In the same year, Dabur launched healthy fruit juice-based drinking yoghurtsunder the Real Activ brand. Also in 2013, the company was listed on MCX Stock Exchange Limited,India's new stock exchange. During the same time, Dabur Lanka, along with Board of Investmentof Sri Lanka, opened a packaged fruit-based beverage manufacturing facility in Mirigama, Sri Lanka.This new manufacturing facility has a capacity to produce 280,000 cases of fruit-based beveragesevery month under the brand name Real.

The company expanded its skin care portfolio with the launch of the world's first Gel-based facialbleach, Oxy Life Gel Bleach with Aloe Vera, in mid-2013. During the same time, Dabur launchednew sub-brand in its packaged fruit juice category known as Real SUPAFruits. The range waslaunched with two variants, Real SUPAFruits Strawberry-Plum and Real SUPAFruits Goji Berry PinkGuava.

Further in 2013, Dabur entered the specialized male grooming market with the launch of OxyLifeMen CrAme Bleach and specialized male professional facial bleach targeting the men's beauty salon& parlor market. In the same year, the company launched a standalone oral health portal,www.daburdentalcare.com, which will be a one-stop shop for all oral hygiene needs of consumers.The company launched Vatika Enriched Coconut Oil with hibiscus in 2013.

Dabur forayed into the packaged milk shake market with the launch of Real Fruit Shakes under theReal brand name in 2013. In the same year, the company launched a new range of shampoo andhair oil products fortified with hibiscus under its Vatika brand.

Towards the end of 2013, Dabur launched a new range of skin bleach, free of ammonia and containingnatural ingredients like saffron, milk and vitamin E, under the 'Fem Fairness Naturals' name. Duringthe same time, Dabur International incorporated a new wholly-owned subsidiary in Tunisia, DaburTunisie.

In January 2014, the company launched Vatika Olive Enriched Hair Oil, further strengthening itspresence in the perfumed light hair oil market. In the following month, Dabur launched India's first



ayurvedic medical journal, Ayurveda Samvad. It is a quarterly publication covering detailed informationabout the various clinical trials being conducted on ayurvedic medicines.

In April 2014, Dabur expanded its packaged food business with the launch of 100% natural TenderCoconut Water under the Raal Activ brand.This product contains no added sugar and preservatives.

The company expanded its brand Hajmola into the pure confectionery space with the launch ofHajmola Chuzkara, a semi-liquid candy, in May 2014. Odomos, a brand of the company, forayedinto the wearable mosquito repellent products market with the launch of Odomos wristbands andpatches in September 2014. During the same time, the Odomos brand also entered into an agreementwith Pogo, under which Odomos will use the image of Pogo's Chota Bheem to adorn the wristbandand mosquito repellent patches.

In December 2014, Dabur launched ‘Dabur Anmol Coconut Hair Oil with Jasmine’, which is a blendof coconut, almond and jasmine.

The company launched its flagship healthcare brand Dabur Chyawanprash in new chocolate-flavoredvariant in January 2015, marking the first product for Dabur Chyawanprash and for the healthcareindustry in India.



KEY EMPLOYEES

CompensationBoardJob TitleName

64345680 INRExecutive BoardChief Executive OfficerSunil Duggal

64466389 INRExecutive BoardGroup Director, Corporate AffairsP.D. Narang

90000 INRNon Executive BoardChairman of the BoardAnand C. Burman

120000 INRNon Executive BoardVice Chairman of the BoardAmit Burman

240000 INRNon Executive BoardIndependent DirectorP. N. Vijay

165000 INRNon Executive BoardIndependent DirectorR. C. Bhargava

105000 INRNon Executive BoardIndependent DirectorS. Narayan

240000 INRNon Executive BoardIndependent DirectorAjay Dua

75000 INRNon Executive BoardIndependent DirectorSanjay Kumar Bhattacharyya

Non Executive BoardIndependent DirectorFalguni Nayar

60000 INRNon Executive BoardDirectorMohit Burman

60000 INRNon Executive BoardDirectorSaket Burman

Senior ManagementVice President, Finance andCompany Secretary

A. K. Jain

Senior ManagementCategory Head, Hair OilsRajat Nanda

Senior ManagementCategory Head, Health SupplementsAjay Parihar

Senior ManagementMarketing Head, Personal CarePraveen Jaipuriar

Senior ManagementMarketing Head, Home CareAjay Motwani

Senior ManagementBrand Head, Dabur ChyawanprashMonisha Prasher


Dabur India LimitedKey Employees

KEY EMPLOYEE BIOGRAPHIES

Sunil Duggal

Board: Executive BoardJob Title: Chief Executive OfficerSince: 2002Age: 57

Mr. Duggal has been the Chief Executive Officer at Dabur since 2002. He joined the company in1995 as the General Manager of Sales and Marketing of the Family Products Division. In 2000, Mr.Duggal was appointed the Director of Sales and Marketing at the company. He started his careeras a Management Trainee at Wimco Limited in 1981. In 1994, Mr. Duggal moved to Pepsi Foodsas the General Manager of Sales Operation. He also serves as a Director at Asian ConsumercarePrivate Limited, Dabur International Limited, H & B Stores, Weikfield International, and Hobi Kozmetic,among others.

P.D. Narang

Board: Executive BoardJob Title: Group Director, Corporate AffairsSince: 2003Age: 60

Mr. Narang has been the Group Director of Corporate Affairs at Dabur since 2003. He joined thecompany in 1983 as a Management Consultant. Mr. Narang was appointed the General Managerof Finance and Company Secretary in 1990 and as the Director of Corporate Affairs in 1998. Hewas given the responsibility of heading the Corporate and Commercial affairs of the company in2002. Mr. Narang also serves on the Boards of Dabur Egypt, Aviva Life Insurance Co., DabonInternational Pvt. Ltd., Dabur Foods, Dabur Pharma, Dabur International Ltd., Asian Consumercare,Dabur Pharmaceuticals Limited, Dabur Nepal, Dabur Research Foundation, Dabur Securities, DaburFinance, Dabur Ayurvedic Specialities, Sanat Products, Welltime Housing & Finance, and NarangManagement Consultants.

Anand C. Burman

Board: Non Executive BoardJob Title: Chairman of the Board

Dr. Burman is the Chairman of the Board at Dabur. He is also the Managing Director at DaburOncology plc UK, a subsidiary of Dabur Pharma. Dr. Burman also serves as a Director at ACEEEnterprises, Aviva Life Insurance Company India, Dabur Research Foundation, Excellent (India)


Dabur India LimitedKey Employee Biographies

Private Limited, H & B Stores, Hindustan Motors Limited, Puran Associates Private Limited, andEster Industries Limited, among others.

Amit Burman

Board: Non Executive BoardJob Title: Vice Chairman of the Board

Mr. Burman is the Vice Chairman of the Board at Dabur. He was the Chief Executive Officer at DaburFoods from 1999 to 2007. Mr. Burman obtained experience at Colgate Palmolive (New York, theUS), where he worked in the Manufacturing Strategy Department. He also worked for six months atthe Kansas plant which manufactured soaps and detergents. In 1990, Mr. Burman trained at TishconCorporation New York, the US, where he was responsible for safety of stock and optimum inventories.He also serves on the Board at Angel Softech Private Limited, Azure Infotech Private Limited,Chowdry Associates, Dabur Nepal Private Limited, Lite Bite Foods Private Limited, and Q H TalbrosLimited, among others.

P. N. Vijay

Board: Non Executive BoardJob Title: Independent DirectorSince: 2001Age: 63

Mr.Vijay has been an Independent Director at Dabur since 2001. He has been the Managing Directorat P.N Vijay Financial Services since 1990. From 1986 to 1990, Mr. Vijay was the Vice Presidentand Country Head of Merchant Banking at Citibank; and from 1978 to 1985, he served at ANZ Grindlays Bank in Merchant Banking division. He was an Officer of Credit Appraisal Cell at State Bank ofIndia from 1972 to 1978. Currently, Mr. Vijay also serves as a Director at Reed Relay & ElectronicsIndia Limited and One97 Communications.

R. C. Bhargava


Mr. Bhargava has been an Independent Director at Dabur since 2005 . He has also been the Presidentand Chief Executive Officer at RCB Consulting since 1998. His past roles include Chief ExecutiveOfficer at Maruti Udyog from 1985 to 1997; Director of Commercial at Bharat Heavy Electricals from1979 to 1981; Joint Secretary to the Government of India, Cabinet Secretariat from 1977 to 1978;Joint Secretary to the Government of India, Ministry of Energy from 1974 to 1977; Special Assistantto the Union Minister for Energy, the Government of India from 1973 to 1974; and Agricultural



Production Commissioner and Secretary from 1968 to 1973. Mr. Bhargava also serves on the Boardat ILFS Limited, Taj Asia Limited, Polaris Financial Technology, and Grasim Industries Limited,among others.

S. Narayan


Dr. Narayan has been an Independent Director at Dabur since 2005. He has nearly four decadesof experience in public service in the State and Central Governments, in Development administration.From 2003 to 2004, Dr. Narayan was an Economic Adviser to the Prime Minister. Prior to thisassignment, he worked for the Government of India as Finance and Economic Affairs Secretary,Secretary in the Departments of Revenue, Petroleum, Industrial Development and Coal from 1997.Dr. Narayan is visiting faculty at several academic institutions including the National Academy atMussoorie. He is also a Director at Apollo Tyres, Godrej Properties, Seshasayee Paper and Board,Aviva Life Insurance Co. India, and Teesta Urja.

Ajay Dua


Dr. Dua has been an Independent Director at Dabur since 2009. He held a variety of seniorassignments in the Government of Maharashtra and the Government of India, including ManagingDirector of industrial promotion corporations, and Joint Secretary in the Union Ministry of Power. Dr.Dua was also the Secretary in the Department of Industrial Policy & Promotion of the Ministry ofCommerce and Industry, Government of India from 2005 and 2007. Currently, he is a Senior BusinessAdvisor/Board member at several multinational corporations. Dr. Dua also serves as a Director atAviva Life Insurance Co. India.

Sanjay Kumar Bhattacharyya


Mr. Bhattacharya has been an Independent Director at Dabur since 2012. He is the former ManagingDirector and Chief Credit and Risk Officer at State Bank of India. Mr. Bhattacharya is a senior level



banker with more than 38 years of experience spanning International and Corporate Banking acrossgeographies, Retail Banking, Credit and Risk Management, Liability Management, and HumanResource Management as Chief Executive Officer of three banks, including State Bank of India,State Bank of Bikaner & Jaipur and SBI (International) Mauritius.

Falguni Nayar

Board: Non Executive BoardJob Title: Independent Director

Ms. Nayar serves as an Independent Director at Dabur. She is the Founder and Chief ExecutiveOfficer at Nykaa.com. Previously, she served at Kotak Mahindra Bank. Prior to joining the KotakMahindra Bank, Ms. Nayar served as a Consultant at A. F. Ferguson & Co. Earlier, she also servedas India Advisor at Temasek, a subsidiary of Temasek Holding Singapore and was a foundingmember at the Asia Society in India, and a board member at Business Standard. Currently, she isalso a Director at Tata Motors Limited and ACC limited.

Mohit Burman

Board: Non Executive BoardJob Title: DirectorSince: 2007Age: 46

Mr. Burman has been a Director at Dabur since 2007. He started his career with Welbeck PropertyPartnership London and then joined Dabur Finance Ltd. as Senior Manager. Mr. Burman also servesas a Director at A.V.B. Finance, ACEE Enterprises, Aviva Life Insurance Company India, BonjourInvestment Company, Burman Finvest, Burman Resorts, and Dabur Ayurvedic Specialities amongothers.

Saket Burman

Board: Non Executive BoardJob Title: Director

Mr. Burman is a Director at Dabur. He also serves as a member or an Adviser on a number ofentrepreneurial and angel investing groups. Mr. Burman is also a Director at Dabur Egypt, DaburEgypt Trading, and Dabur International.



MAJOR PRODUCTS AND SERVICES

Dabur is a FMCG company that manufactures and markets ayurvedic and natural healthcare products.The company's key products include the following:

Products:

Healthcare products:

Health supplements:

Ayurvedic tonics Glucose Honey

Digestive products:

Herbal digestives Digestive candies Digestive mints

Consumer health-OTC products:

Memory enhancers Cough and cold medicines Rejuvenation medicines Gastro-intestinal medicines Medicated oils Baby care products Women's health products Rubs and balms

Personal care products:

Oral care products:

Toothpastes Toothpowders

Hair care products:

Shampoo Amla hair oil Coconut hair oil


Dabur India LimitedMajor Products and Services

Almond hair oil

Skin care products:

Fairness creams Moisturizers Clarifying creams Repair creams Anti-ageing creams Sun block creamsFace fresheners Rose waterCold creams

Bleach products

Hair removal creams

Hand wash

Food products

Juices:

Fruit juices Unsweetened fruit juices Unsweetened vegetable juices

Culinary range:

Cooking pastes Tomato puree Coconut milk Red pepper sauce

Home care products:

Air care Mosquito repellent creams Surface cleaners Dish-washing products

Consumer health (ethical):

General health products Lung support products



Digestive support products Cardiac support products Joint support products Uterine support products

Professional grooming products:

Facial creams Body bleaches

Brands:

Healthcare products:

Dabur Chyawanprash Dabur Honey Glucose-D Hajmola Pudin Hara Nature Care Sat Isabgol Dabur Shankha Pushpi Dabur Active Antacid NUTRiGO Dabur Gripe Water Dabur Active Blood Purifier Honitus Lozenges Shilajit Gold Dabur Lal Tail Dabur Janma Ghunti Dashmularishta,Ashokatrishta

Oral care products:

Dabur Red Babool Meswak Promise Dabur Lal

Hair care:

Anmol Dabur Amla Vatika



Skin care products:

Gulabari Uveda Fem

Food products:

Real Activ Burrst Hommade Lemoneez Capsico

Home care products:

Odonil Odomos Sanifresh Odopic

Consumer health (ethical):

Broncorid Madhuvaani Lipistat Rheumatil Mensta

Professional grooming products:

OxyLife Fem Queen's Fem Gold Fem Body



REVENUE ANALYSIS

Overview

Dabur recorded revenues of INR70,944.3 million (approximately $1,177.7 million) in FY2014, anincrease of 15% over FY2013. For FY2014, India, the company's largest geographic market,accounted for majority of the total revenues.

The company generates revenues through four business segments: consumer care business (84.7%of the total revenues in FY2014), foods (12.4%), retail (1%) and others (1.9%).

Revenues by segment*

In FY2014, the consumer care business segment recorded revenues of INR59,880.2 million(approximately $994 million), an increase of 16.5% over FY2013.

The foods segment recorded revenues of INR8,782.5 million (approximately $145.8 million) inFY2014, an increase of 17.9% over FY2013.

The retail segment recorded revenues of INR717.1 million (approximately $11.9 million) in FY2014,an increase of 19.6% over FY2013.

The others segment recorded revenues of INR1,352.3 million (approximately $22.4 million) in FY2014,a decrease of 32.3% compared to FY2013.

*Sum of revenues by segment differs with the total revenues as revenues from sale of services andother operating revenues are not included.


Dabur India LimitedRevenue Analysis

SWOT ANALYSIS

Dabur is a FMCG company that manufactures and markets ayurvedic and natural healthcare products.The company is one of the largest Indian consumer goods company. Strong market position impartsdistinct competitive advantage to Dabur and facilitates revenue and business expansion growthprospects for the company. However, Dabur faces stiff competition from international players likeColgate-Palmolive and Unilever against their respective brands. With their much higher penetrationrates, room for growth is very limited for the company.

WeaknessesStrengths

Increasing taxes and tax ratesStrong market positionPresence in the niche natural/herbalsegmentFocus on new product launches

ThreatsOpportunities

Severe competition from internationalplayers in the oral care and hair carecategories

Low penetration levels in rural India to offerroom for growth across consumptioncategories

Changing cosmetic trendsPositive outlook for personal care marketGrowing OTC pharmaceuticals market inIndia

Strengths

Strong market position

Dabur is one of the largest Indian consumer goods companies with interests in hair care, oral care,health care, skin care, home care and food sectors. Dabur was ranked among India's top 30 brandsin 2014 by an industry source specializing in brand services and activities. It was also ranked amongIndia's top 500 companies in 2014 released by a business newspaper.

Dabur has a strong presence in many of the FMCG categories. The company holds number oneposition in several categories, including ayurvedic tonics, honey, herbal digestives, ayurvedic OTC,mosquito repellant creams, air fresheners, skin lightening (bleaches), and fruit juices with key brandssuch as Dabur Chyawanprash, Dabur Honey, Hajmola, Pudin Hara, Odonil, Odomos, Fem, RealFruit Juices, and Real Activ. Furthermore, Dabur commands second position in glucose categorywith its Dabur Glucose brand, in toilet cleaners category with Sanifresh brand, in hair oils categorywith Dabur Amla and Vatika brands, and in toothpowders category with Dabur Red brand. The


Dabur India LimitedSWOT Analysis

company also holds number three position in toothpastes category with Dabur Red, Babool, andMeswak brands and number four position in shampoos category with Vatika brand.

Outside India, the company’s hair oil market share in Saudi Arabia increased from 66% in FY2013to 69% in FY2014. Dabur also witnessed increase in its market share in the hair creams categoryto 35% in FY2014 compared to 29.5% last year. In the UAE, the company’s hair creams marketshare increased to 33% in FY2014 from 29% last year. In Egypt, Dabur maintained its leadershipposition in hair oils and its market share increased substantially to 62% in FY2014 as compared to53% last year. In hair creams as well, the company maintained its leadership position with a 56%market share.

Strong market position imparts distinct competitive advantage to Dabur and facilitates revenue andbusiness expansion growth prospects for the company.

Presence in the niche natural/herbal segment

The Indian FMCG industry consists of several Indian and international companies with major presencein food and beverage, personal care, oral care, home care or OTC pharmaceuticals space. Dabur,on the hand, has made its strong presence felt in the niche space of natural and herbal productsspace, not just in the domestic market, but also internationally. Dabur is not just the fourth largestFMCG company in India, but also the world's largest ayurvedic and natural healthcare company.

The company has a strong portfolio of niche products that include branded honey, ayurvedic tonicsand herbal digestives. Dabur has been a pioneer in the Indian market with each of these productofferings. Honey, typically used in home remedies in most Indian homes, is positioned as a breakfastspread with health benefits by the company. Currently, the company commands more than 75% ofthe Indian branded honey market. Dabur Chyawanprash, another pioneering product offering in thehealth tonics segment, is the largest selling Ayurvedic medicine with over 65% market share. DaburChyawanprash is based on a 2,500-year-old Ayurvedic formula and is a combination of herbs andplant extracts in a base of Amla fruit pulp. This product is offered in several variants and flavors,each catering to the unique needs of its niche consumer segments such as kids, diabetic patientsand calorie-conscious consumers. In the herbal digestives space as well, Dabur is the pioneer andalso the number one player with its Hajmola offerings. The Hajmola brand commands nearly 60%of the market share of digestive tablets category. Overall, the company commands almost 90% ofthe herbal digestives market share in India with its various offerings. With a strong presence in suchniche product categories, Dabur has very low/negligible competition in the above-mentioned markets.

Focus on new product launches

Despite enjoying a market leadership position in several of its product categories, Dabur has alwaysbeen focused on innovating to meet its ever-changing consumer preferences. For instance, inFY2014, the company launched a premium health supplement called Dabur Ratnaprash, VatikaOlive Enriched Hair Oil, Vatika Enriched Coconut Oil with Hibiscus, Vatika Premium Naturals Shampoowith Hibiscus and Reetha, and Fem Fairness Naturals with no added ammonia. The company alsolaunched new Ayurvedic ethical medicines in different therapeutic areas, India’s first range of drinking



yoghurts under the brand Real Activ, and fruit-milk shakes under the brand Real. During the sametime, Dabur also launched a new Anardana variant of Hajmola tablets. Currently, the company’sproducts directly reach more than 38,250 villages. Furthermore, in the international market, thecompany introduced Amla leave-on oils, Fem Gold hair removing cream, Dermoviva face wash,Dermoviva face scrub, Vatika hair mayonnaise, Vatika hair color creme, Fem halawa, straighteningand strengthening treatment by HAIRepai under the brand ORS, among others.

Each of the new launches was well-researched and test-marketed before launching in the market.Dabur has an in-house research center, Dabur Research & Development Centre (DRDC), whichconducts detailed tests on individual ingredients and products to ensure that the final products meetscustomer needs. Additionally, the company’s research team also focuses on ways to recycle andre-use the herbal waste and to effectively conduct life cycle analysis of its products, besidesdeveloping new products. By performing the life cycle analysis of its products, the company canidentify risks and opportunities along the entire value chain. Also, Dabur has been conductingscientific research and third-party clinical trials on its products to prove the efficiency of its variousproducts and their ingredients, and to ensure better delivery of value to its consumers. Nearly 12preclinical and three clinical studies were organized by the DRDC team in FY2014.

A keen focus on continuous innovation is helping the company bring to market newer products andnewer versions of its existing products. While the company already commands market leadershipin most of these product categories, continuous innovation is helping the company avoid competitionin its niche products space.

Weaknesses

Increasing taxes and tax rates

The company's taxes and tax rates have been increasing over past few years. The taxes of Daburincreased from INR190 million (approximately $3.2 million) in FY2005 to INR2,190 million(approximately $36.4 million) in FY2014, representing a compound annual growth rate (CAGR) of31%. In FY2014 alone, the company's tax expense increased 19.7% over the past year. This, inturn, is leading to an increase in the tax rates for Dabur over the years. During FY2014, effectivetax rate for the company increased to 19%, compared to 17% in FY2010. This continuous increasein tax rates could have a significant impact on the company's margins in the long run and increasethe burden on its operational performance.

Opportunities

Low penetration levels in rural India to offer room for growth across consumption categories

Unlike in the more developed Western markets, the Indian market has a huge untapped rural marketthat is continuously offering opportunities for growth in the consumer goods sector. Rising income



levels and efforts by marketers to tap the consumer base at the bottom of the pyramid are payingoff to create opportunities in rural India. According to industry sources, the Indian FMCG sector isestimated to reach a market size of INR4,000 billion ($66.4 billion) to INR6,200 billion ($102.9 billion)by 2020. While the growth in FMCG sector in India is poised to grow, low penetration rates are seenin the rural areas as compared to urban areas. Products like shampoos, hair oil and toothpasteshave very high penetration in urban India (69%, 84% and 91%, respectively). On the other hand,penetration rates in rural India for the same products is lower; 56%, 72% and 63%, respectively, forshampoos, hair oil and toothpastes.The urban-rural penetration gap is much pronounced for productslike toilet cleaners (12% rural penetration versus 45%) and glucose (10% versus 21%).This representsa huge opportunity for FMCG companies such as Dabur to shift their revenue mix in favor of ruralmarkets.

Low penetration rates, along with increasing personal disposable incomes of Indian, especially ruralconsumers, are leading to increased demand for quality and branded goods. The growing influenceof media penetration is also being a key influencer on lifestyle and consumption patterns, leadingto immense market opportunities for FMCG players.

Positive outlook for personal care market

The personal care market has been expanding rapidly due to the increasing purchasing power andgrowing consumer interest. According to industry estimates, the personal care category in Indiarepresents 22% of the total market revenue of the Indian FMCG sector. In addition, the demand forcosmetics and personal grooming products has been on the rise due to the increasing popularity ofbeauty contests, increasing disposable incomes coupled with the growth in the Indian fashion industry.According to industry sources, the cosmetics market in India is growing at a rate of 20% annually.

Dabur offers a range of personal care products such as shampoos, hair oils, rose water, bleaches,hair removal products, fairness creams, cold creams, moisturizers, clarifying creams, repair creams,anti-ageing creams and face fresheners under Dabur, Vatika, Fem and Dabur Uveda brand names.It also offers professional grooming products such as OxyLife facial kit, Fem Queen's PearlProfessional Facial Kit with oyster pearl extract, Fem Gold Professional Facial Kit formulated withReal Gold particles, special anti-ageing properties and other moisturizing ingredients, and FemTurmeric Body Bleach.Thus, positive outlook for the personal care products market indicates steadyrevenues for Dabur in near term.

Growing OTC pharmaceuticals market in India

The OTC pharmaceuticals market in India is growing at a steady rate. The OTC pharmaceuticalsmarket consists of the retail sale of traditional medicines, cough and cold preparations (tablets,mixtures, lozenges, topical remedies and inhalers), and indigestion preparations (tablets, powdersand mixtures), among others. According to MarketLine, the Indian OTC pharmaceuticals marketgrew by 9.1% in 2013 to reach a value of $2,273.6 million. In 2013, India accounted for 4.6% of theAsia-Pacific OTC pharmaceuticals market value. The OTC pharmaceuticals market in India isestimated to grow at a CAGR of 8.7% for the five-year period 2013–18.



Dabur offers a range of consumer health-OTC products such as memory enhancers, cough andcold medicines, rejuvenation medicines, gastro-intestinal, medicated oils, baby care products,women's health products, and rubs and balms. The company also offers digestive products. Byleveraging its product offering, the company can tap into the growing OTC pharmaceuticals marketfor its top line growth.

Threats

Severe competition from international players in the oral care and hair care categories

Although the company enjoys a market leading position in several of its niche product markets, suchas herbal digestives and health tonics, in several other FMCG categories including personal careand oral care, Dabur faces stiff competition from both domestic and international players. Especially,in the oral care, Dabur faces stiff competition from international players like Colgate-Palmolive andUnilever against their respective brands of Colgate and Pepsodent. Likewise, in the hair care category,the company's Vatika and Dabur Amla brands compete with many top brands, including Sunsilk orDove from Unilever. Apart from these international brands that largely cater to the urban consumersin India, Dabur's hair care brands also face severe competition from the low-priced domestic brandssuch as Chik from CavinKare and Parachute from Marico.

Additionally, with much higher penetration rates in the oral care and hair care markets of India, bothin the rural and urban markets, room for growth is very limited for the company, unless it aims toeats into the competitors' shares through high product differentiation.

Changing cosmetic trends

Beauty conscious consumers are increasingly using new technologies such as advanced dermatology,cosmetic surgery, hair transplant and other treatments to enhance their beauty. Not only are theresults from these treatments instant, but they are also long lasting. The Indian cosmetic surgeryindustry is witnessing significant growth, triggered by increasing consumer awareness, direct marketingand advertising campaigns, and technological advances in surgical and non-surgical procedures.According to industry estimates, the cosmetic surgery market in India is growing at 40% per annum.This could reduce dependence on traditional beauty aids, which could lead to a fall in demand forthe skin and hair care products of Dabur.



TOP COMPETITORS

The following companies are the major competitors of Dabur India Limited

GlaxoSmithKline Consumer Healthcare Ltd.Colgate-Palmolive (India) LimitedHindustan Unilever LimitedMarico LimitedFarmax India LimitedGodrej Consumer Products LimitedBajaj Corp LimitedEmami LimitedProcter & Gamble Hygiene and Health Care LimitedCavinkare Private Limited


Dabur India LimitedTop Competitors

COMPANY VIEW

A statement by Anand C. Burman, the Chairman of the Board at Dabur, is given below.The statementhas been taken from the company's Annual Report for FY2014.

Dear Partners in Growth,

It gives me immense pleasure to write to you at the end of another landmark year for Dabur.

Fiscal 2013-14 marked successful completion of the Vision Plan for the period 2010-14, with revenuescrossing the Rs7,000 crore mark.Your company achieved Net Sales of Rs 7,073.2 crores during2013-14 growing by 15.1%. Net Profit for the year increased to Rs 913.9 crores recording an increaseof 19.7%.

It is quite encouraging that this growth has largely been volume driven and came in at a time whenthe economy continued to be under turbulence with growth rates slowing down across sectorsincluding the consumer products industry. Even in such a challenging environment, your Companywas not only able to post strong growth in sales but also improve upon profitability. The Company’sEBITDA increased to Rs1,288 crores in fiscal 2013-14 reporting an increase of 17.4%.

The business has performed well across operating parameters. Our deep understanding of consumerbehaviour which we have developed over the years and focus on improving overall marketing mixhelped us navigate through a tough external environment, demonstrating the robustness of ourbusiness model. We continued to invest strongly behind our brands and drive innovation on leadingto an uptick in market shares.

In the previous year, your Company had made huge investments towards rural outreach andpenetration into the hinterland which led to significant expansion of our distribution reach. Thisinvestment continued to pay rich dividends during fiscal 2013-14 with demand from rural Indiaoutpacing the urban markets and offsetting the slight moderation in demand from urban India.

The close of the financial year, in fact, saw urban markets inch up with growth rates at par with therural markets. To capture the potential of the coming times, Dabur has embarked upon an initiativeto strengthen its presence in the chemist network, which we feel will be a key driver of growth forour consumer healthcare and personal care business. We have re-organised our sales teamsspecifically to cater to the demands of chemist channel and also enhance distribution of health careand personal products portfolio through this network. As a result of this initiative, Dabur’s directchemist coverage is planned to increase from 1.72 lac to 2.06 lac outlets and the footprint will continueto grow particularly in the top 150 towns where this initiative has a major focus.

Dabur’s International Business continued on the strong growth trajectory growing by 22.3% to Rs2,310.8 crores in fiscal 2013-14. This was driven by innovation, market share gains and aggressive


Dabur India LimitedCompany View

investment behind the brands. Our brands are appreciated and well regarded by the local consumersfor their herbal/ natural properties and the benefits they deliver.

We continue to identify attractive and significant growth opportunities both in India and around theworld, and have been regularly investing in creating new assets and facilities to meet the growingdemand for our products, globally. A new manufacturing unit has been commissioned in Bangladeshto produce our range of FMCG products. The new fruit juice facility set up at Sri Lanka commencedsupplies to our markets in West and South India.

The year gone by also saw Dabur take several important strides in reducing our environmentalimpact and encourage community environmental stewardship.

This year, we are particularly proud to be ranked amongst the Top 5 Companies with the Best Boardof Directors as per Corporate Dossier- Hay Group’s survey. We have also been named by CRY asthe Child Rights Champion for our various initiatives aimed at improving the lives of children fromthe under-privileged sections of the society.

I would like to take this opportunity to thank our Board of Directors, consumers, business partners,the management and all our valued employees for their outstanding efforts during 2013-14. Wewould also like to thank you, our shareholders, who have supported us loyally for many years. I amgrateful to you for your unwavering support. It is our privilege to continue to build shareholder valuefor you over the long term. Thank you again for the trust that you have placed in our Company. Weshall continue to strive to deliver excellence and superior value to all our stakeholders.


Dabur India LimitedCompany View

LOCATIONS AND SUBSIDIARIESHead Office

Dabur India LimitedKaushambiGhaziabadUttar Pradesh 201010INDP:91 120 3982000F:91 120 4374935http://www.dabur.com

Other Locations and Subsidiaries

Dabur International LimitedDabur India Ltd.Jebel Ali506 5th FloorDubaiIndustry HouseAREA. B. Road

Indore 452 004Madhya PradeshIND

Dabur InternationalAsian Consumer Care5 Independence Way245 Tejgaon Industrial AreaSuite 300Dhaka 1208PrincetonBGDNew Jersey 08540USA

Dabur Egypt LimitedH&B Stores LtdPlot No.(5)Hindi BhavanIndustrial Area (B-4)11 Rouse Avenue10th of Ramadan CityITOEGYNear Bal Bhavan

New Delhi 110002IND

Dabur Nepal Private LimitedAfrican Consumer Care LimitedTNT BuildingEbani HouseTinkune62 Marina LagosKoteshworNGAKathmanduNPL


Dabur India LimitedLocations and Subsidiaries

Dabur International LtdDabur India Limited2 Gayton Road5-9-1107Harrow9&10 King Koti RoadHA1 2XUAnand Towers BasheerbaghGBRHyderabad 500 029

Andhra PradeshIND


Dabur India LimitedLocations and Subsidiaries

MARKETLINE | 119 FARRINGDON ROAD | LONDON, UNITED KINGDOM, EC1R 3DAT: +44 161 238 4040 | F: +44 870 134 4371 | E: [email protected] | W: www.marketline.com

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