Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (August 2018)
30 slides from Dabur India's investor presentation, August 2018
Slide 1: Dabur India Limited Investor Presentation
Dabur India Limited Investor Presentation August 2018 1
Slide 2: Contents
Contents 1. Recent Macroeconomic Trends 2. Dabur’s Performance 3. The Way Forward 2
Slide 3: Macroeconomic Trends
Macroeconomic Trends 9.2% 8.1% 7.6% 7.7% 6.8% 7.0% 6.1% 6.3% 5.6% GDP growth is inching up Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 CY16 CY16 CY16 CY16 CY17 CY17 CY17 CY17 CY18 5.2% 5.1% 5.0% 4.6% 4.9% 4.4% 4.3% 4.2% Inflation under control Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 72.00 USD/INR – L
Slide 4: Rural remains a mixed bag
Rural remains a mixed bag Increase in MSP and expected fiscal stimulus to drive Monsoon1 deficiency at 9% with East lagging farmer incomes ` Excess Normal Deficient Large Deficient Source: IMD, News articles 1. From 1st June 2018 to 15th August 2018 4
Slide 5: Contents
Contents 1. Recent Macroeconomic Trends 2. Dabur’s Performance 3. The Way Forward 5
Slide 6: Dabur has seen recovery in the past fiscal year with growth picking up
Dabur has seen recovery in the past fiscal year with growth picking up since Q2 FY18… Value and Volume Trend for Domestic FMCG 23.7% 21.0% 17.7% 13.0% 9.8% 9.7% 7.2% 7.7% 4.1% 2.4% 4.5% 2.4% 0.5% 0.7% (5.2%) (5.0%) (4.4%) (6.6%) Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19
Slide 7: …with broad-based growth…
…with broad-based growth… FY18 Q1 FY19 Health Supplements 9.4% 27.5% Digestives 10.2% 21.6% OTC & Ethicals 3.8% 16.9% Hair Care 4.1% 20.6% Oral Care 14.4% 17.3% Home Care 13.0% 17.4% Skin Care 11.0% 27.1% Foods 0.7% 26.1% Note: Numbers in the charts represent GST adjusted growth (like-to-like) 7
Slide 8: …along with increase in market shares across most categories
…along with increase in market shares across most categories Volume MS (MAT Jul'18) Relative Compet- itive #3 #1 #1 #2 #1 #1 #1 #4 Position 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Toothpastes Digestive MRC Hair Oils Chyawanprash Air Juices & Shampoos Tablets Fresheners Nectars Change vs MAT 10 30 2
Slide 9: Drivers of growth – Project Buniyaad
Drivers of growth – 1 Project Buniyaad Enabling Technology Urban Strategy Using technology to track and improve performance Leveraging potential through Channel based approach and automate processes Rural Strategy New Avenues of Growth Split the front line teams into two to increase reach Leveraging
Slide 10: Project Buniyaad has led to larger distribution, higher efficiencies and improved hygiene
Project Buniyaad has led to larger distribution, higher efficiencies and improved hygiene Increase in Lines Sold in Rural Increase in Average Brand Sold (ABS) in Rural 8.30 20.0 19.3 8.00 7.90 18.6 17.9 7.60 17.3 7.30 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Re
Slide 11: Drivers of growth – Channel Changes
Drivers of growth – 2 Channel Changes 24.5% 23.5% 23.6% 23.0% 22.2% 21.7% 12.5% 12.8% 11.6% 10.1% 8.7% 7.7% 0.8% 1.2% 0.6% Wholesale Superstockist MT E-comm Enterprise FY17 FY18 Q1 FY19 Superstockist, MT and E-comm gaining saliency; Wholesale and Enterprise continues to shrink Note: Enterprise inclu
Slide 12: Product Launches – Since April 2017
Product Launches – Since April 2017 Vatika Enriched Real Ethnic Range Real Koolerz Real Mocktails Hajmola Chat Cola Coconut Hair Oil Vatika Shampoo Anmol Jasmine HO Odonil Zipper Honitus Hotsip Fem De-Tan Bleach with Satt Poshan Dabur Red Gel Oxy Pro Clear Facial Odonil – Odomos Fabric Glycodab Tabl
Slide 13: International Business – Recent Performance
International Business – Recent Performance Region-wise Sales (FY18) Performance of Key Markets (FY18) Constant Currency Growth Rate – FY18 Americas 14.0% 31.8% Middle East Europe 34.0% 17.3% 16.9% 10.8% 13.7% 10.7% 10.6% 10.0% Asia 22.4% Africa (15.8%) 18.8% Egypt GCC Saudi Nigeria Nepal Turkey Nam
Slide 14: MENA and SSA GDP Growth Expected to Improve
MENA and SSA GDP Growth Expected to Improve Middle East & North Africa Sub-Saharan Africa MENA Region - GDP Growth % SSA Region - GDP Growth % 3.6% 3.7% 3.4% 3.2% 2.8% 2.2% 2017 2018 2019 2017 2018 2019 Source: IMF WEO April 2018 14
Slide 15: International Business – Recent Marketing Initiatives (1/3)
International Business – Recent Marketing Initiatives (1/3) Dabur Amla Hair Oil - New 360 degree campaign with 22 mn views Dabur Amla Hair Oil - Vol. Mother-Daughter Thematic MS% (Saudi Arabia) - Disproportionate Media spends on 52% PAN-Arab Media - Increase in Vol. MS% 47% Mar-Apr 2018 May-Jun 2018
Slide 16: International Business – Recent Marketing Initiatives (2/3)
International Business – Recent Marketing Initiatives (2/3) Hobby - Launch of Cream Wax NPD – Cream Wax Premium Packaging – Body Wash - Packaging upgrade in Body Wash Vatika - In-Store and Outdoor visibility Merchandisers Gondola Billboards improvement in Southern Africa 16
Slide 17: International Business – Recent Marketing Initiatives (1/3)
International Business – Recent Marketing Initiatives (1/3) Dabur Herbal Toothpaste - Thematic Micro-branding in Nigeria Bus Branding Van Branding Dealer Boards (Lagos and Abuja) ORS (Namaste) - New POS Execution in UK Retail Outlets 17
Slide 18: International Business – Strategic Levers
International Business – Strategic Levers - Capitalize on global Back to Nature trend Innovation - LUPs to drive penetration - Distributor restructuring GTM - Real-time analytics - JBP (Joint Business Planning) with Key Accounts - Saving initiatives Cost Management - Manufacturing efficiencies 18
Slide 19: Contents
Contents 1. Recent Macroeconomic Trends 2. Dabur’s Performance 3. The Way Forward 19
Slide 20: Key Elements
Key Elements Driving Innovation Capability Improvement 5 1 and Renovation for Market Leadership Cost Optimisation and Improving 4 2 Regionalization Service Levels 3 Channel Focus Strategy 20
Slide 21: Driving Innovation and Renovation for Market Leadership
1 Driving Innovation and Renovation for Market Leadership (a) Focus on Core Brands Core Brands Q1 FY19 Growth 54.7% 41.6% 45.6% 26.8% 31.2% 30.2% 25.0% 12.7% Dabur Amla Real Dabur Red Dabur Honey Dabur Dabur Lal Tail Honitus Pudin Hara Toothpaste Chyawanprash Additionally, there is focus on seeking
Slide 22: Driving Innovation and Renovation for Market Leadership
1 Driving Innovation and Renovation for Market Leadership (b) Creating Competitive Leverage Superior Claims Superior Formulation Superior Packaging Superiority over mineral oils Addition of Soya Protein for Damage Free Hair 2x stronger hair vs Other Amla HO 22
Slide 23: Driving Innovation and Renovation for Market Leadership
1 Driving Innovation and Renovation for Market Leadership (c) Media Strategy for Driving Brand Preference Consolidated Buys with Impact Fragmented Brand Buys Value Ads Key Shift in Approach Impact Lead Core CPRP Focus Prime Time Focus Network Core Prime High Brand Deals Time Focus on Saliency Integr
Slide 24: Driving Innovation and Renovation for Market Leadership
1 Driving Innovation and Renovation for Market Leadership (d) Driving NPDs Q1 FY19 The Way Ahead Strengthening our Ayurvedic/ Natural Offerings Products for Gen Y and Z Premiumization 24
Slide 25: Regionalization RISE
2 Regionalization RISE Regional Insights And Speed of Execution RI : Regional Insights SE : Speed of Execution (Long Term Strategic) (Quick Wins, Low Investment) • Capture Consumer, Packaging and Media Insights • Trade interventions • Use Analytics for Specific meaningful actions • Activations and v
Slide 26: Channel Focus Strategy
3 Channel Focus Strategy Increasing Direct Rural Focus E-commerce/ MT Focus Distribution 3rd largest Range Expansion • Q1 FY19 saw 150% growth in distribution #3 e-commerce network in FMCG in India covering 1. Increase lines sold in – Strong growth across 6.3 mn+ outlets rural platforms Aim to incre
Slide 27: Cost Optimisation and Improving Service Levels
4 Cost Optimisation and Improving Service Levels Project Lakshya Targets • Improve range availability at C&FA and Distributors • Improve Lead Time Adherence Service Level • Improve MT OTIF • Reduction in Logistics Cost Cost • Reduction in Finished Goods Inventory Inventory OTIF – On Time and In Full
Slide 28: Capability Improvement
5 Capability Improvement Matrix Organisation Strengthening the Team Sales Dabur Research E-comm Head and Development Centre Parlor Channel Head Marketing Marketing Services Healthcare Head Operations OTC Head Trade Marketing Ayurveda Head Shared Goals across Functions Digital Head 28
Slide 29: The next growth wave
The next growth wave Build bigger brands More than 15 brands in the range of INR >0.1 to 1 bn which can grow to INR 1bn+ Continued Innovation and Renovation for Younger Consumers NPD pipeline primed to deliver new products in key categories – 4-5 new products every year Driving distribution expansio
Slide 30: Thank You!
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