DIL Inv.presentation May 12

7/31/2019 DIL Inv.presentation May 12

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Dabur India Limited

May 2012

11


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AgendaAgenda

Da bu r I n d i a- I n t r o d u ct i o n

FMCG Industry Scenario

Growth Strategy

Recent Performance

22


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Dabur India: OverviewDabur India: OverviewEsta is e in 1884 - more t an 125

Years of Trust & Excellence

Among top 4 FMCG companies in India

Worlds lar est in A urveda and natural

Tw elve Bi l l i on Rupee Brand s

healthcare

Revenue of Rs. 53.2 billion and profits ofRs. 6.4 billion in FY2011-12

Dabur is a household brand

Vatika and Real are Superbrands

Hajmola , Real & Dabur ranked amongIndias Most Admired Brands

12 Brands with sales of over Rs. 1 billioneach

Wide distribution network coverin 3.4

million retailers across the country

17 world class manufacturing plantscatering to needs of diverse markets

Dabur rankedas No. 2 MostSocial Brand ofIndia, in theSocial Media

Dabur rankedthe No. 2 IndianGreen Brand byGreen BrandsGlobal Survey

Dabur has beenranked as the MostTrusted Leader inthe Healthcarecategory in the

33

.contribution to consolidated sales

report launchedat Click AsiaSummit 2012

Brand Trust Report2012

Dabur has surpassed the US$ 1 billion mark in revenues


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Dabur: Vision and Core ValuesDabur: Vision and Core Values

Ded i ca ted t o t he hea l t h and w e l l be i ng o f ev e ry hou s eho ldVis ion

Ownersh ip

Pass ion fo rW i n n i n g

I n t e g r i t y

CoreValues

PeopleDeve lopment

I n n o v a t i o n

ConsumerTeam Wor k

44

ocus


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Key MilestonesKey Milestones

1 8 8 4

Dr. SK Burm ans ta r t ed an A yurved i cPharm acy i n K o lka t t a

1 9 7 2

The com panysh i f t ed base t oDe lh i f r om K o lka ta

1 9 8 6

Regis tered asPubl ic L imi t edCompany

1 9 9 4

L is ted on t h e

1 9 9 8

Profess iona l i zed w i th

2 0 0 3

Pharm aceut ica l Bus inessBomb ay StockExchange

B urman Fam i l y hand ingover day t om a n a g e m e n t

de-m erged t o f ocus on coreFMCG business

2 0 0 4

I n t e r n a t i o n a lBus iness set up inDuba i t o t ap ove rseaso p p o r t u n i t y

2 0 0 5

Acqui red Ba lsaras t reng th en ing Ora lcare & ga in ing en t r yi n to Hom e ca re

2 0 0 6

D ab u r Fi g u r e d i n To p10 Great P laces ToW o r k

2 0 0 8

Acqui red Fem Care

2 0 1 0

Overseas acqu is i t ions -Ho bi Gr ou , Tu r k ey an d

2 0 1 2

Cro ssed Rs. 50 bnm a r k i n a n n u a l

55

m a inst ream Sk in ca re Nam aste Laborat or ies , US revenues and Marke t

Cap of c . US$4 bi l l i on


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Dabur Consolidated : OverviewDabur Consolidated : Overview

52 83260000

Sales

in Rs. m i l l ion

12,004 12,849 12,356 14,17017,565 20,803

23,963 28,34134,158

40,774

0

10000

20000

30000

40000

50000

FY02 FY03 FY04^ FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

EBI TDA Mar g in ( in % ) Net Pr o f i t

5 0325,686

6,449

6000

7000

17.1%18.1% 18.5% 18.3%

19.8%20.4%

17.90%20.0%

22.0%

in % in Rs . m i l l ion

1,0651,558

2,1422,817

3,3293,913

,

0

1000

2000

3000

4000

5000

13.3%

15.3%

10.0%

12.0%

14.0%

16.0%

.

66

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

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


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Global FootprintGlobal Footprint

Canada

UK

Turkey

U.S. Egypt

UAENepal

N ige r i a

BDesh

Dom est ic Mfg .Locat ions

Manufacturing Facilities

Key markets

77

Our s t r a tegy i s t o l oca l ize m anu fac tu r i ng , supp l y cha inand p r oduc t o f f e r i ngs t o su i t consumer r equ i r em en ts

i n each g eogr aphy


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Robust Distribution NetworkRobust Distribution Network

Factory

St ock ist Su p er St ock ist I n s t i t u t i o n s

t r a d e

W h o lesa ler s Su b St ock ist

RETAI L TRADE

CONSUMERS

88

Di rect + I nd i rec t Reach c ov e r i ng c . 3 . 4 m i l l ion re t a i l ou t l e t s


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Research & Development FocusResearch & Development Focus

St r on g New Pr oduc t Deve lopmen t

Ayur ved ic Medic ines

Personal Care

Team o f sc ien t i s t s i nc lud ingAyur ved ic doc tor s , Pharm ac ists ,Agron om is ts , Botan is ts , Ti ssueCul t u r e spec ia l i st s , e t c .

oo s

Hom e Care

OTC HealthcareAgr o B io tech I n i t i a t i ves

Pro tec t i ng endangered he rbs

Techn ica l ass istan ce to fa rm ers

Cont r act cu l t i va t i on o f he rbs

Green House a t Nepa l

Dabu r i n t r oduced m ore t han 20 new p roduc t s / va r i an t s du r i ng FY11

A gronom y I n i t i a t i ves : Greenhouse a tDabur Nepa l & U t t a rancha l

Dabu r Research Faci l i t ies

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AgendaAgenda

Dabur India-Introduction

FMCG I nd us t r y Scenar io

Growth Strategy

Recent Performance

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FMCG Industry SnapshotFMCG Industry Snapshot

FMCG I nd ust ry Size ( in Rs. bn) FMCG I n du st r y Ur ban ( i n Rs. b n) FMCG I n du st r y Ru r al ( in Rs. b n)

Source: AC Nielsen

FMCG sector in India continues on a strong growth path with both Urban and

Overv iew

. .

sales in India

Growth driven by increasing consumption led by rise in incomes, changinglifestyles and favorable demographics

As er a stud conducted b Booz & Com an FMCG sector is ex ected to row

1111

in the range of 12% to 17% upto 2020 and would touch a market size between ofRs. 4,000 to Rs. 6,200 billion


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Penetration Levels: Sufficient HeadroomPenetration Levels: Sufficient Headroom

77%80%

80%

90%

Rural Penetration Urban Penetration

67%

57%59%

50%

60%

70%

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 categories

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

9 3

Sk in Care Per Cap i ta Consum pt io n ( in US$) Sham poo Per Cap i t a Consump t ion ( i n US$)

in US$in US$

I n d i a h a s l o w p e r c ap i t a co n s u m p t i o n a s co m p a r e d t o o t h e r e m e r g i n g e c on o m i es

3.2

7.4 7.7

3

4

5

6

7

8

1.0 1.1

.2.4

1

1.5

2

2.5

0.80.3

0

1

2

China Indonesia India Malaysia Thailand

0.3

0

0.5


2.9

2.5

3

3.5

Too thpas te Per Cap i t a Consump t ion ( i n US$)

in US$

0.5

1.0

0.4

.

0

0.5

1

1.5

2

1313


Source: MOSL


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Key Players: FMCGKey Players: FMCG.

Com p an y Key Cat eg or ies Sales Pr o f i t Mar k et Cap

Hindu stan Un i lever LtdSoaps, Detergents,

1 9 6 ,9 1 0 2 2 ,9 6 1 8 2 6 ,4 4 5,

Nest l e I nd i a Ltd * Food, Beverages, Infantnutrition

7 4 ,9 0 8 9 ,6 1 5 4 2 8 ,0 8 7

Persona l , Hea l th &Hom ecare , Foods

, , ,

Godr e j Consum er Hair Care, Soaps 3 6 ,4 3 0 5 ,1 4 7 1 5 1 ,5 3 4

Co lga te Pa lmo l i ve ( I ) L t d * Oral Care & Toiletries 1 9 ,6 2 4 4 ,3 4 1 1 4 0 ,3 9 9

Glaxo Sm i th k l i n e Consum er* Consumer Health Care 2 6 ,8 5 5 3 ,5 5 2 1 0 9 ,1 7 7

Mar i co Ltd . Hair care, Food, Skincare 3 1 ,2 8 3 2 ,8 6 4 9 7 ,6 5 2

, , ,

Pr oc te r & Gamb le Hyg ieneand Hea l t h Care^

Feminine Hygiene,personal care

1 0 ,0 0 3 1 ,5 0 9 6 3 ,2 9 9

1414

Source: Published results for year ending 31.03.11

*Year ending 31.12.11

^Year ending 30.06.11

. ,


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

Marke t Sha rePosi t ion Key Br an d sCategory

Dabur Amla hair Oil, Vatika hair oil &

Oral Car e

a a ampoos

13%3Red toothpaste, Babool, Meswak, Redtoothpowder

Ay urv ed i cTonics

Diges t i ves

67%1 Dabur Chyawanprash

56%1 Hajmola

Fr u i t Ju ices 52%1 Real Fruit Juices, Real Activ

Glucose 2 25% Dabur Glucose

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Sk in Car e(B leaches )

1 50% Fem

Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives


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AgendaAgenda



Growth Strategy

Recent Performance

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Business StructureBusiness Structure

Dabu r I n diaL im i t ed

Domest i c Bus iness( 6 9 .7 % )

I n t e r n a t i o n a lBu s in e ss ( 3 0 .3 % )

ConsumerCare

Foods( 1 0.1 % )

Reta i l( 0 .8 % )

DaburI n t e r n a t i o n a l

Hob iGroup

N a m a s t eLabs. LLC

Others*( 2 .7 % )

. . . .

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*OthersincludesCommodityExportsetc

Note: % figure in brackets indicate % share in Consolidated Sales for FY12


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Consumer Care OverviewConsumer Care Overview

Categor y-w ise Share o f Consum er Care Sa les

Health Supplements contribute to 22% of Consumer Care sales

Oral Care, comprising toothpastes and toothpowders contributes to 18% ofConsumer Care sales

1818

Note: Percentage share based on revenue for FY12


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Consumer Care CategoriesConsumer Care Categories

Key B rands

a r s

# 2 p la yer i n

Hai r Oi ls

Dabur Amla:Largest brand inthe portfolio

Vatika: Value addedcoconut oil

Anmol Hair Oil:Value proposition

Key B rand s

# 4 p la yer i nShampoos

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Vatika range of shampoos


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Key B rands

# 3 p la yer i n

# 2 p la yer i nDabur Red: Toothpaste& Toothpowder

Babool: Targeted ateconomy segment

Meswak: Premiumtherapeutictoothpaste

To o t h p o w d e r

Key B rand s

p ay er nSkinL i gh ten ing

2020

Gulabari range of rosebased skin careproducts: Moisturizer,

Face freshener & Rosewater

Fem Gold Bleach:Launched recently

Uveda: Range ofAyurvedic SkinCare


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Key B rands

Hom e Care

Fresheners

# 1 la er in

Odonil: Air freshner Odomos: Mosquito Sanifresh:

Mosqu i to Repe l lan tCreams

range: arges ranin the portfolio

repe an s n cream Toilet cleanerp ay er n o etCleaners

2121


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Key B rands

ea t u p p em en t s

# 1 p l ay e r inA u rv ed ic Ton ics

# 2 p la y er i nGlucose

Dabur Chyawanprash:Largest selling healthsupplement in the

country

Dabur Glucose:2nd largest

player in thecountry

Dabur Honey: Largestbranded honey in thecountry; growing

category through replacesu ar strate

# 1 p l ay er i n

b ran ded Honey

Key B rands

Diges t i ves

# 1 p la y er i nHerba l

D iges t i ves

2222

Hajmola: Flagship brand

for branded Digestives

Hajmola tasty

digestive candy


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an t ca s

Descr ip t i on

Repository of Daburs Ayurvedic HealthcareCHD St r uc tu re

Range of over 260 products

Focusing on multiple therapeutic areas. Distribution coverage of 200,000 chemists,

~12,000 vaidyas & 12,000 Ayurvedic

OTC ( 6 4 % )

Generics

ETHI CAL ( 36% )

Tonic

Focus on growing the OTC Health-Careportfolio aggressively

Branded Ethicals

OTC Healthcare is Rs.130 billion size industry

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

Promoting Dabur Ayurveda: Generating

Dabur to expand its presence by : Consolidating / expanding current

portfolio

Launching new products in emerging

2323

Look at inorganic opportunities

Acquired the energizer brand, Thirty Plus

from Ajanta Pharma in May 2011


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Foods BusinessFoods Business

Foods portfolio comprises Juices and Culinary range

Juices are under the brands Real, Activ and Burrst

Culinary range is under Hommade brand

Foods

Foods business has surpassed the Rs. 5 billion mark in sales

Key B rands

# 1 p la yer i nFr u i t Ju ices

2424

ea : ags pbeverages brand

of 100% pure juice


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International BusinessInternational Business -

Exporter

Focus on Orderfulfillment throughIndia Mfg.

Dubai in 1989

Demand generationled to setting up ofmfg in Dubai & Egypt

International Ltd

Local operations further strengthened

Set up new mfg facilities in Nigeria,RAK& Bangladesh

.Consol. Sales

High Levels of Localization

Global Supply chain

1 9 8 0 s Ear ly 9 0 s 2 0 0 3 On w ar ds Tod ay

High l i gh t s

H ig h Gr o w t h i n I B D

4 7706,025

8,922

16,161

6000

8000

10000

12000

14000

16000

18000.

30% to consolidated sales led by CAGR of 32% in last 6 years

Focus markets:

GCC

.

1,281 1,8072,258 2,917

,

0

2000

4000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

gyp

Nigeria

Turkey

Bangladesh

Ne al

U.S. High level of localization of manufacturing

and sales and marketing

Leveraging the Natural preference among

2525

care categories

Sustained investments in brand building and

marketing


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Africa and Middle East OverviewAfrica and Middle East Overview

Real GDP Gr ow t h Rat es ( YoY) in % Af r ica s Bu lg in g Base

Source: I MF Source: McKinsey on Afr ica, June 2010

Middle East and Africa have witnessed stable GDP growth rates

Between 2005 and 2015, it is estimated that in Africa, the share of individuals earningabove US$1,000 will grow from 39% to 55%.

The rapidly emerging African middle class could number as many as 300 million, out of a

2626

The sheer volumes and the growth in the number of aspirational consumers withdisposable income creates huge opportunities for consumer products companies


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Acquisition of Hobi Group, TurkeyAcquisition of Hobi Group, Turkey

Acquisition 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 Hobby

and New Era Product range of the company is

complementary to our product range

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

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Acquisition of Namaste LaboratoriesAcquisition of Namaste Laboratories

Dabur 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

Namast is a leading ethnic hair care products company, having products for women ofcolour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and African

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$1.5,

Bn) yet highly underpenetrated consumer markets of Sub Saharan Africa

We intend to grow the non U.S. business ahead of U.S. business and are taking initiatives inthis direction

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AgendaAgenda



Gr o w t h St r a t e g y

Recent Performance

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Growth StrategyGrowth Strategy

Three p ronged Grow th St r a tegy

Expand I n n ov at e Acq u i r e

Our d i f f e ren t i a t i on i s t he h e rba l and ayu rved ic p lat f o r m

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 ex ansion local manufacturin and su l chain to enhance flexibilit/ reduce response time to change in market demands

I n n o v a t e

Strong focus on innovation. Have rolled out new variants & products which have contributed toaround 5-6% of our rowth .a.

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

Acqu i re

Acquisitions critical for building scale in existing categories & markets

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Should be synergistic and make a good strategic fit

Target opportunities in our focus markets


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AgendaAgenda



Growth Strategy

Recen t Per fo r m ance

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Recent Financial PerformanceRecent Financial Performance

onso a e a es grew y . ur ngQ4FY12.

Sales growth was a combination of volume

growth and price increases and marginalRevenue

(inRs.Cr.)translation gains

Volume growth was at 12.4%

EBITDA

inRs.Cr.

ncrease y 4.2% w e marg nwas lower at 17.8% in Q4FY12 v/s 21.1% inQ4FY11

Material costs were at 50.2% of sales vis

vis 47% in

Adpro during the quarter increased to 13.4% ascompared to 11.5% in previous year

PAT

Consolidated PAT reported growth of 16.0%

This was despite severe input costpressure and increase in advertising andromotional costs

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Stock Performance & Shareholding PatternStock Performance & Shareholding Pattern

Shareho ld ing St ru c tu re*Market Cap i ta l i za t ion in Rs. b i l l i on

174200

17

*As on March 31, 2012

2001 20112012

D ab u r r a n k ed a s t h e o r a n iz at i o n t h at o f f er s t h e b es t r et u r n t o i n v e st o r s bthe 6 th Soc ia l & Cor po r a t e Gover nance Aw ar ds , p r esen ted b y t he Bom bay

Stock Exchan ge

3333


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Consolidated P&LConsolidated P&L

n

s.crores o

o

NetSales 1363.6 1108.2 23.0% 5,283.2 4,077.4 29.6%

OtherOperatingIncome 9.0 5.9 53.7% 22.2 27.1 17.9%

MaterialCost 684.9 521.3 31.4% 2,685.2 1,937.5 38.6%

%ofSales 50.2% 47.0% 50.8% 47.5%EmployeeCosts 95.6 87.3 9.6% 387.4 308.7 25.5%

%ofSales 7.0% 7.9% 7.3% 7.6%AdPro 182.0 127.4 42.9% 659.5 534.6 23.4%

%ofSales 13.4% 11.5% 12.5% 13.1%OtherExpenses 185.7 161.0 15.4% 683.1 522.5 30.7%

%ofSales 13.6% 14.5% 12.9% 12.8%Other

Non

Operating

Income 19.0 16.3 16.7% 57.4 32.1 78.6%

EBITDA 243.3 233.4 4.2% 947.6 833.4 13.7%

%ofSales 17.8% 21.1% 17.9% 20.4%InterestExp.andFin.Charges 5.7 15.9 53.8 30.3

De reciation + Amortization 29.3 29.1 103.2 95.2

ProfitBefore

Tax

(PBT) 208.3 188.4 10.5% 790.5 707.9 11.7%

TaxExpenses 37.7 41.4 8.9% 146.4 139.0 5.3%

PAT(AfterexceptionalItems) 170.5 147.0 16.0% 644.1 568.9 13.2%

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nor y n eres ro oss . . . .

PAT(AfterExtraordinaryitem&MinorityInt) 170.5 147.0 16.0% 644.9 568.6 13.4%

%ofSales 12.5% 13.3% 12.2% 13.9%


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Consolidated Statement of Assets and LiabilitiesConsolidated Statement of Assets and LiabilitiesAs at As at

Particulars (in Rs. crores) (current year end)31/03/2012

(previous year end)31/03/2011

A EQUITY AND LIABILITIES1 Shareholders funds

(a) Share capital 174 174(b) Reserves and surplus 1,543 1,217(c) Money received against share warrants - -Sub-total - Shareholders' funds 1,717 1,391

2 Share application money pending allotment3 Minority interest * 3 44 Non-current liabilities

(a) Long-term borrowings 727 717(b) Deferred tax liabilities (net) 27 19(c) Other long-term liabilities - -(d) Long-term provisions 658 578Sub-total - Non-current liabilities 1,412 1,314

5 Current liabilities(a) Short-term borrowings 347 303(b) Trade payables 859 661

(c) Other current liabilities 120 109(d) Short-term provisions 164 141Sub-total - Current liabilities 1,490 1,214

TOTAL - EQUITY AND LIABILITIES 4,622 3,923B ASSETS1 Non-current assets

(a) Fixed assets 869 732(b) Goodwill on consolidation * 799 799(c) Non-current investments 89 2(d) Deferred tax assets (net) - -

(e) Long-term loans and advances 433 340(f) Other non-current assets 72 101Sub-total - Non-current assets 2,262 1,974

2 Current assets(a) Current investments 393 418(b) Inventories 824 709

3535

(c) Trade receivables 462 355(d) Cash and cash equivalents 448 280(e) Short-term loans and advances 154 127(f) Other current assets 79 60

Sub-total - Current assets 2,360 1,949TOTAL - ASSETS 4,622 3,923


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Recent AccoladesRecent Accolades

D ab u r h a s b e en v o t e d b yconsum ers as I nd i an

D ab u r r a n k e d a s N o .2 Most Soc ia l Brando f I n d i a i n t h e So ci a l

D ab u r I n d i a L t d h as b ee nranked am on g t he Top 10

D a bu r h a s b e en r a n k e das the Most Trust ed

- ,M ed ia repo r tlaunched a t C l i ckAs ia Sum m i t 2012

Fo r i n t he M anu f ac t u r i ngsector by Bus in ess Today

ca t ego ry i n t he BrandT rus t Repo r t 201 2

D ab u r ' s g r e en f ie ld u n i t i nBadd i aw arded LEEDI nd ia Si l ve r Ra t i ng f o r

D ab u r ' s B ad d i U ni t saw arded S i l verCer t i f i ca t ion fo r

D ab u r r a n k ed 3 7 i nl i s t o f I nd i a ' sGreatest Weal thCreator s 2011. Dabur

D ab u r r a n k ed 1 8 4 i nth e FE-50 0 l i s t o fI nd ia 's Finest

3636

S t anda rds

Enhanc ing M anu f act u r i ng& Supp ly Cha inExce l lence, by ETI nd iaM anu f ac t u r i ng

Excel len ce cel l

has been rank ed 30in t he l i st o f I nd i a ' sTop Em p loym en tGenera t ors by

Bus iness & Econom ym agaz ine


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DisclaimerDisclaimer

Some of the statements made in this presentation contain forward looking information that involve a

. , ,

projections or plans that are inherently subject to significant risks, as well as uncertainties and

contingencies that are subject to change. Actual results can differ materially from those anticipated in theCompanys forwardlooking statements as a result of a variety of factors, including those set forth fromtime to time in the Companys press releases and reports and those set forth from time to time in theCompanys analyst calls and discussions. We do not assume any obligation to update the forwardlookingstatements contained in this presentation.

No part of this presentation shall form the basis of or may be relied upon in connection with any contract

or commitment. This presentation is being presented solely for your information and is subject to change

without notice.

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Investor RelationsDabur India Ltd

Contact:+91-11-42786000

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Documents

DIL Inv.presentation May 12