Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (January 2014)
32 slides from Dabur India's investor presentation, January 2014
Slide 1: Dabur India Limited Corporate Profile January 2014
Dabur India Limited C Corporate P Profile fil January Ja ua y 2014 0
Slide 2: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 2
Slide 3: Introduction
Introduction Established in 1884 ‐ more than 128 Years of Trust & Excellence World’s largest in Ayurveda and natural healthcare Dabur ranked amongst the Dabur India Ltd Bags Golden Top 5 Indian companies with Peacock Award For Excellence the best Board of Directors p In Corporate Governance 2012
Slide 4: Vision and Core Values
Vision and Core Values Vision • Dedicated to the health and well being of every household Ownership Passion Integrity for Winning Core Values People Innovation Developm ent Team Consumer Workk Focus 4
Slide 5: Key Milestones
Key Milestones 1884 1972 1986 •Dr. SK Burman started •The company shifted •Registered as Public an Ayurvedic Pharmacy base to Delhi from Limited Company in Kolkatta Kolkata 1994 1998 2003 •Listed Li t d on the th Bombay B b •Professionalized P f i li d with ith •Pharmaceutical Ph ti l B Business i S
Slide 6: Performance Overview
Performance Overview Sales “Robust profitable growth translating in INR bn 61.5 52.8 into superior shareholder returns” 40.8 28.1 33.9 FY09 FY10 FY11 FY12 FY13 Market Capitalization in INR bn EBITDA 238.9 in INR bn 16.0 185.4 167.2 14.0 11 2 11.2 137 8 137.8 12.0 10.0 8.3 9.5 8.0 6.7 85.4 6.0 5.2 4.
Slide 7: Business Footprint
| Business Footprint el Pad anos
Slide 8: Our Billion Rupee Brands
Our Billion Rupee Brands Home & Personal Care Health Care Foods 8
Slide 9: Research & Development Focus
Research & Development Focus Team of scientists including Strong New Product Development Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue Ayurvedic Medicines Culture specialists, etc. Personal Care Foods Home Care A Agro Bi Biotech t h Initiatives I iti ti OTC Healthcare Pr
Slide 10: Domestic Distribution Structure
Dabur - Domestic Distribution Structure Factory ((Carryy & Forward Agents) g ) Depot Stockists Super stockists Insti Stockists Modern Trade Stockist Wholesalers Sub stockists Retail trade Rural trade Insti customers Shoppers & Consumers Direct reach 0.8 mn outlets “Total reach at 5.8 mn retail outle
Slide 11: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 11
Slide 12: FMCG Sector in India
FMCG Sector in India Th The IIndian di FMCG sector’s’ size i iis peggedd at R Rs. 2 trillion illi with i h rurall IIndia di contributing ib i to a third of revenues As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range off 12% to 17% upto 2020 andd could ld tou
Slide 13: Category Penetration Levels - India
Category Penetration Levels - India Urban Rural 91% 84% 72% 69% 63% 56% 45% 21% 22% 13% 12% 10% 4% 2% Glucose Branded Baby Hair Oil Shampoo Toothpowder Toothpaste Toilet Cleaners Oil Source: IRS (Indian Readership Survey) ‐ 2012 Low penetration levels offer room for growth across consumption categ
Slide 14: Per Capita Consumption
Per Capita Consumption Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.1 1.5 4 3.2 1.0 3 1 2 0.8 0.5 0.3 1 0.3 0 0 China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand Toothpaste – Per Capita Consump
Slide 15: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 15
Slide 16: Business Structure
Business Structure Dabur India Ltd. International Domestic (69%) (31%) Organic Hobi Consumer Foods Retail Others Namaste International Group Care (55%) (11%) (1%) (3%) Labs (8%) (19%) (3%) Note: % figure in brackets indicate % share in Consolidated Sales for FY13 * Others includes Commodity Exports
Slide 17: Sales by Business Vertical
Dabur – Sales by Business Vertical Dabur derives 69% of its sales from Domestic business (Consumer Care + Foods + Others) and 31% from International business Others Foods 4% 11% Consumer Internation Care al Business 55% 31% Skin Care Others Health Africa 6% 4% Supplements 21% Oral Care 21% 17% U.S
Slide 18: Consumer Care Categories
Consumer Care Categories Category g y Keyy Products and Brands Market Position Chyawanprash: Honey: Glucose: #1 in Ayurvedic Tonics ((Chyawanprash) y p ) Health Supplements #1 in branded Honey #2 in Glucose Herbal Digestives: #1 in Herbal Digestives Digestives Baby Care: Cough & Cold: Women’ss Healt
Slide 19: Consumer Care Categories (Contd.)
Consumer Care Categories (Contd.) Category g y Keyy Products and Brands Market Position Hair Oils: Shampoo: #2 in Hair Oils #4 in Shampoos Hair Care T th t : Toothpastes T th Toothpowder: d #3 in Toothpastes Oral Care #2 in Toothpowders Air Freshener: Mosquito Rep. Cream: Toilet Cleaner: #1 in Air F
Slide 20: Foods
Foods Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Key Products and Brands Market Position Juices & Nectars: #1 in Fruit Juices Culinary: 20
Slide 21: International Business
International Business Overview i l Sales International S l Breakdown kd ( 3) (FY13) Dabur’s international business contributes 31% to consolidated sales Our O focus f markets k t are Africa, Af i Middl East Middle E t and d Asia A i as U.S. these offer substantial long term growth opportunities
Slide 22: International Business (Contd.)
International Business (Contd.) Africa Opportunity pp y Africa’s Bulging g g Base With a population of c. a billion, Africa offers huge potential for the consumer sector in the long run driven by factors such as rapidly emerging middle class, with increasing disposable incomes Between 2005 and 2
Slide 23: Recent Launches - India
Recent Launches - India Ratnaprash: Premium Fem Fairness Naturals – Health Supplement No added Ammonia Vatika Olive Hair Oil Odonil 1 Touch Air Freshener Vatika Mandara & Kunkudukai Honitus: Honey & Tulsi launched in South India Sh Shampoo with i h Oli Olive C Conditioning di i i variant launched in
Slide 24: Recent Launches - International
Recent Launches - International Fem Gold Hair Removal Cream Dermoviva Face Wash Dermoviva Hand Wash 24
Slide 25: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 25
Slide 26: Three Pillars of Growth
Growth Strategy Three Pillars of Growth Expand Innovate Acquire Strengthening presence in Strong focus on innovation. Acquisitions critical for existingg categories g and Have rolled out new variants buildingg scale in existingg markets as well entering new and products which have categories a
Slide 27: Agenda
Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Strategy Overview Recent Performance 27
Slide 28: Recent Performance
Recent Performance 6000.0 5,304.2 5000.0 4,615.3 4000.0 Consolidated sales grew by 14.9% Revenue 3000.0 2000.0 driven by volume growth of 10% and (in Rs. Cr.) 1000.0 calibrated price increases 0.0 9M FY13 9M FY14 1,200.0 954.1 EBITDA margin expanded to 18% v/s 1,000.0 808.2 800 0 800.0 17.5% in
Slide 29: Market Cap and Shareholding Pattern
Market Cap and Shareholding Pattern Market Capitalization Shareholding Structure* in Rs. billion Others, 300 7% FIIs, 20% 85 Promoters , 69% DIIs, 4% FY09 Feb‐14 Feb 14 *As of Dec 31, 2013 Dabur has witnessed significant increase in market capitalization over the years 29
Slide 30: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q3FY14 Q3FY13 YoY (%) 9MFY14 9MFY13 YoY (%) Net Sales 19,043 16,307 16.8% 53,042 46,153 14.9% Other Operating Income 50 53 158 172 Material Cost 9,275 7,952 16.6% 25,420 22,793 11.5% % of Sales 48.7% 48.8% 47.9% 49.4% Employee Costs 1,580 1,301
Slide 31: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities Particulars As at 31/12/2013 As at 31/03/2013 Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,744 1,743 (b) Reserves and surplus 23,909 19,501 Sub-total - Shareholders' funds 25,653 21,244 2. Minorityy interest 162 121 3. Non-curren
Slide 32: Disclaimer
Disclaimer Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncerta