Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (September 2019)
78 slides from Dabur India's investor presentation, Sep 6, 2019
Slide 1: Cover letter to stock exchanges
^^. Ref: SEC/SE/2019-20/42 f^ Date: 06.09.2019 Scrip Code: NSE- DABUR, BSE- 500096 WT India Ltd. To, Corporate Relation Department National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/l, G Block Bandra - Kurla Complex Dalal Street, Bandra (E)
Slide 2: Financial Analysts and Institutional Investors Meet
Financial Analysts and Institutional Investors Meet 6 Sep 2019
Slide 3: Agenda
Agenda 1. Dabur’s Recent Performance 2. Recent Macroeconomic Trends 3. Our Growth Strategy 4. International Business 2
Slide 4: Dabur – A Leader in Ayurveda & Natural Healthcare
Dabur – A Leader in Ayurveda & Natural Healthcare Our Vision Dedicated to the Health & Well-being of every Household
Slide 5: Dabur – A Leader in Ayurveda & Natural Healthcare
Dabur – A Leader in Ayurveda & Natural Healthcare Established in 1884 – 135 years of trust and heritage Among the Top 4 FMCG companies in India One of the largest distribution network in India, covering ~6.7 mn outlets 20 world class manufacturing facilities Strong overseas presence with ~27% contri
Slide 6: The Year Gone By – FY19 Performance
The Year Gone By – FY19 Performance Market Capitalization (Rs. crore) 72,586 Volume 57,602 Growth +26% 11% FY18 FY19 Revenue from Operations Operating Profit Net Profit/ PAT 8,533 1,740 1,442 7,748 +11% 1,617 +8% 1,354 +7% FY18 FY19 FY18 FY19 FY18 FY19 Note: 1. All figures are in INR cr 2. The figur
Slide 7: Q1 FY20 Performance
Q1 FY20 Performance Volume Growth 9.6% Revenue from Operations Operating Profit Net Profit/ PAT 2,273 458 363 2,081 +9% 386 +19% 329 +10% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Note: 1. All figures are in INR cr 2. The figures in circle represent growth figures
Slide 8: India Business – Category-Wise
India Business – Category-Wise Revenue FY19 Q1 FY20 Category Key Brands Contribution Growth Growth (FY19) Health Supplements 17.6% 14.6% 19.6% Healthcare Digestives 5.9% 16.4% 18.2% (32.3%) OTC & Ethicals 8.9% 13.7% 14.5% Hair Care 21.6% 14.8% 11.9% Oral Care 16.8% 9.5% 11.4% HPC (50.6%) Home Care 6
Slide 9: Agenda
Agenda 1. Dabur’s Recent Performance 2. Recent Macroeconomic Trends 3. Our Growth Strategy 4. International Business 8
Slide 10: Recent Macro Trends
Recent RecentMacro Trends Macro Trends GDP Growth at Six Year Low Manufacturing IIP remains subdued 8.2% 8.0% 7.9% 7.4% 7.2% 6.8% 4.6% 2.7% 2.8% 2.5% 5.0% 1.3% 1.2% -0.4% -0.3% -0.4% Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 FY15 FY16 FY17 FY18 FY19 Q1 FY20 GDP Real Growt
Slide 11: FMCG Sector – Quarterly Growth
FMCG Sector • FMCG – Quarterly Sector – QuarterlyGrowth Growth 16.2% 15.7% 13.6% 13.4% 11.4% 13.2% 10.2% 10.6% 11.9% 10.0% 9.9% 8.6% 8.7% 7.1% 8.3% 6.2% 5.8% 3.7% Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Jul'19 Value Growth Volume Growth
Slide 12: What is causing the slowdown?
What is causing the slowdown? Liquidity Crunch Agricultural distress due to negligible growth in rural wages Real Wage Growth in Rural 4.2% 4.2% 3.3% 3.4% 2.9% 2.0% 2.0% 2.6% 1.3% 1.4% 1.8% 1.4% 0.9% -1.2% May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun
Slide 13: Agenda
Agenda 1. Dabur’s Recent Performance 2. Recent Macroeconomic Trends 3. Our Growth Strategy 4. International Business 12
Slide 14: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ ESG Excellence Enhancement Focus
Slide 15: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ ESG Excellence Enhancement Focus
Slide 16: Power Brands Strategy
Power Brands • Power Strategy Brands Strategy FY19 Growth % 22.4% 21.1% Higher A&P 17.3% 17.3% Investments 13.7% 14.9% Media spends 9.3% 9.3% increased by 20% for Power brands, while for the domestic business the increase was 6% Healthcare Home Foods & Personal Care
Slide 17: Strengthen immunity positioning
13.7% FY19 Sales Growth Strengthen immunity positioning Develop Modern Formats & communication for youth & kids Extend usage beyond winters – monsoon campaign > Enhance chemist reach
Slide 18: Strengthen fitness proposition
Strengthen 17.3% fitness FY19 Sales Growth proposition Innovation – Launch premium variants Localised communication strategy Increase food usage of honey through new formats >
Slide 19: Strengthen Ayurvedic positioning
14.9% FY19 Sales Growth Strengthen Ayurvedic positioning Renovation and contemporization Create a portfolio for baby care Distribution enhancement >
Slide 20: Reinforce Ayurvedic positioning
17.3% FY19 Sales Growth Reinforce Ayurvedic positioning Regionalization New formats & variants: Lozenges, Hot Sip Distribution enhancement
Slide 21: Scale up the Powder Fizz portfolio
21.1% FY19 Sales Growth Scale up the Modernization Powder Fizz of formats portfolio Use digital Extend Pudin media to Hara into connect with Food millennials >
Slide 22: Strengthen the core brand Asli Amla Dabur Amla
9.3% FY19 Sales Growth Strengthen the core brand ‘Asli Amla Dabur Amla’ Contemporization and Premiumization Create moats through flanker brands - Brahmi & Sarson Amla > Improve Accessibility
Slide 23: Gain market share from non-natural players
22.4% FY19 Sales Growth Gain Focus on market low share from through put non-natural markets players Proposition Connect of ‘Keeps digitally dental with Problem Millennials Away’ >
Slide 24: Scale up the Vatika franchise in India
Scale up the Vatika franchise in India Launching Ayurvedic variants Connect digitally with millennials Strengthen distribution in weak geographies >
Slide 25: Increasing Consumption Occasions
9.3% FY19 Sales Growth Increasing Consumption Occasions Expansion in low through put geographies Premiumization through new health- based variants Entering the fruit drinks segment > >
Slide 26: Healthy Fruit Nutrition – Reducing Added Sugar
Healthy Fruit Nutrition – Reducing “Added Sugar” STEP 1 – Implemented ahead to our pledged timeline 5% Sugar reduction in 78% of Real portfolio: Part of our pledge under Eat Right Movement by FSSAI STEP 2 – Work in Progress Further reduction in added sugar by 20-30%
Slide 27: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ ESG Excellence Enhancement Focus
Slide 28: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 29: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India >
Slide 30: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 31: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 32: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 33: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 34: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 35: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India >
Slide 36: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 37: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 38: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India Ethicals Dabur Hridayasava Dabur Dadimavaleha Vasant Meha Ras
Slide 39: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India >
Slide 40: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 41: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 42: Driving Innovation and Renovation – International Business
Driving Innovation and Renovation – International Business New range of Hair Waxes and Hair Vatika Serum in Egypt Olive Oil with Black Castor in South Mousse in Hobby, Turkey Africa ORS Fix-It Range in USA Amla Kids in Egypt Vatika Afro Naturals Range in South Africa
Slide 43: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ ESG Excellence Enhancement Focus
Slide 44: Increasing Reach
Increasing Reach One of the largest distribution networks in FMCG covering 6.7 mn+ outlets Increasing Total Reach Increasing Direct Reach Aim to increase direct reach to (in mn outlets) 1.2 mn outlets by end of FY20 6.7 FY17 0.9 FY18 1.0 6.4 FY19 1.1 FY20E 1.2 FY18 FY19
Slide 45: Urban Focus
Urban Focus Modern Trade E-commerce E-comm Growing Business Partners Improved Engagement Growing in (Buniyaad Munafa – OFO Channel Program) by double ~50% digit Enhance Shelf Share ~15% ~2% Shopper Engagement Saliency (In-shop promoters and in-store activations) Saliency
Slide 46: Rural Focus
Rural Focus Portfolio as per Consumer Increasing Reach Building Rural Infrastructure Preferences 55,000 48,103 ~1,400 41,473 44,068 Rural Sales Force 45% FY19 Contribution to Sales FY18 FY19 Q1 FY20 FY20E 394 Increasing Village Coverage Super stockists 12,333 Sub-stockists (663 added in Q1) Focus on
Slide 47: Regional Focus through RISE
Regional Focus through RISE RISE Initiatives in North East ` RISE Regional Insights And Speed of Execution Sponsoring Local Events Anmol Jasmine – Regional Real Fruit ORS Launched (Miss India North East contest in Communication association with Gulabari)
Slide 48: Regional Focus through RISE
Regional Focus through RISE RISE Initiatives in South > South specific ad for Dabur Honey Anmol Green in Tamil Nadu RISE Regional Insights And Speed of Execution Vatika hair oil endorsed by regional celebs in South Dabur Amla Regional TVC in South
Slide 49: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ ESG Excellence Enhancement Focus
Slide 50: Our Manufacturing Footprint in India
Our Manufacturing Footprint in India Baddi Sahibabad Jammu ` Tezpur Alwar Pantnagar Newai Katni Narendrapur Silvassa Nasik Pithampur
Slide 51: Our Manufacturing Footprint in India
Our Manufacturing Footprint in India Pantnagar Tezpur > Baddi Silvassa
Slide 52: Our Manufacturing Locations Strategy basis FTAs - International
Planning OurManufacturing LocationsStrategy Manufacturing basis FTAs - International Turkey EU Egypt COMESA US NAFTA (3P) Nigeria ECOWAS UAE GCC + GAFTA South Africa SADC 8 manufacturing locations From centralized manufacturing to localized manufacturing for speed and flexibility
Slide 53: Our Manufacturing Footprint Overseas
Our Manufacturing Footprint Overseas UAE Egypt Nigeria South Africa Turkey Sri Lanka Bangladesh Nepal
Slide 54: Supply Chain Transformation – Project Lakshya
Supply Chain Transformation – Project Lakshya Range Availability at C&FA Level Number of C&FAs Improve range 93% 92% availability and 32 service levels 28 26 78% Baseline Mar'19 Aug'19 Baseline Mar'19 Aug'19 Reduce Logistics Costs Modern Trade Fill Rates (OTIFs) Days of Inventory - India Business 94
Slide 55: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ ESG Excellence Enhancement Focus
Slide 56: Capability – Improving Diversity & Inclusion
Capability – Improving Diversity & Inclusion Women employees in India %
Slide 57: Capability Building
Capability Building Creating a Matrix Organisation Strengthening the Team E-Comm Head Sales Healthcare Head Operations Marketing Shared Ayurveda Head Goals across Functions OTC Head Marketing Trade Services Marketing Digital Head DRDC
Slide 58: New Age HR Ecosystem
New Age HR Ecosystem Employer Branding Appification • PULSE - HRMS • #WomenCan • OLA for Corporates • Ramco Mhub 2 • Car Pool • DantSnan Career & On-boarding Portal Artificial Intelligence • Video Recruitment & Machine Learning enabling efficiency Chatbots • Engagement from the day of offer acceptan
Slide 59: R&D Capabilities
R&D Capabilities 98 16% Employees in R&D team Increase in R&D Expenditure in FY19 18 Patent applications filed NABL accredited analytical laboratory AYUSH recognized Drug Testing Laboratory Team has doctors, pharmacists, chemists, botanists, agronomists, biotechnologists, oil technologists, food tec
Slide 60: Enhancing Capability in Ayurveda
Enhancing Capability in Ayurveda Increase Doctor Enhance Consumer Portfolio Expansion Consumer Engagement Advocacy Touch Points • Increase Ayurvedic • Increase Dabur Ayurved • Classical & Branded • Health Camps Doctor Coverage from Chikitsalayas from 525 Range enhancement ➢ 6,000 in Clinics 40,000 t
Slide 61: Upgrading Our IT and Digital Capabilities
Upgrading Our IT and Digital Capabilities Integrated Migrated to supply chain ERP SAP HANA Upgradation planning and BW through SAP HANA IBP Upgrading Using Upgrading Distributor Tableau to Sales Force Management create virtual Automation System dashboards (SFA) (DMS)
Slide 62: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Operational Capability Sustainability/ESG Excellence Enhancement Focus
Slide 63: ESG – Key Focus Areas
ESG – Key Focus Areas 2% of Environment Sustainability profits spent on CSR Eradicating Hunger, Poverty and Malnutrition Preventive Healthcare Promoting Biodiversity Women Empowerment & Skill Development Robust Governance
Slide 64: Creating a Greener Manufacturing Ecosystem
Creating a Greener Manufacturing Ecosystem Raw Water Used (in KL/MT) Effluent Generation (KL/MT) 5.05 2.12 4.32 3.41 1.38 1.25 FY17 FY18 FY19 FY17 FY18 FY19 Total Energy Consumed Total CO2 Emitted (KG/MT) Total SOx emitted (KG/MT) (GJ/MT) 0.08 0.65 2.07 0.46 2.03 0.05 0.04 1.96 0.21 FY17 FY18 FY19 F
Slide 65: Environment Sustainability – Plastic Waste Management
Environment Sustainability – Plastic Waste Management Target to become Plastic Waste Neutral Company by 2020-21 20% Plastic waste generated by Dabur collected and processed/recycled in FY19 across 6 states Target increased to 60% in 2019-20 across 25 states Initiative to be rolled out pan-India to c
Slide 66: Eradicating Hunger, Poverty and Malnutrition
Eradicating Hunger, Poverty and Malnutrition Over 5 mn packs of Real juices distributed
Slide 67: Preventive Healthcare
Preventive Healthcare Constructed around 4,000 household toilets till date 10,000 Ragpickers benefitted from a full-time 42 villages ‘Open Defecation Free’ Health Post in their community
Slide 68: Promoting Biodiversity
Promoting Biodiversity 15 lakh saplings planted Over 6,000 acres under cultivation of rare herbs Over 3,000 farmer beneficiaries of our buyback programme
Slide 69: Banepa Greenhouse in Nepal
Banepa Greenhouse in Nepal
Slide 70: Jeewanti Centre for Medicinal Plants in Uttarakhand
Jeewanti Centre for Medicinal Plants in Uttarakhand
Slide 71: Honey Beekeping in Himachal Pradesh
Honey Beekeping in Himachal Pradesh
Slide 72: Women Empowerment & Skill Development
Women Empowerment & Skill Development Vocational training to over 6,000 women in tailoring, beauticians and computer education
Slide 73: Robust Governance
Robust Governance Well experienced and diversified professional Board with majority of independent Directors Separate position of CEO and Non-Executive Chairman Promoters not drawing any remuneration and no executive position being held by any Promoter Three tiers of Audit-Transactional, Internal an
Slide 74: Agenda
Agenda 1. Dabur’s Recent Performance 2. Recent Macroeconomic Trends 3. Our Growth Strategy 4. International Business 73
Slide 75: Key Regions in International Business
Key Regions in International • Key Regions in International Business Business NA Ethnic UK & Europe Turkey Namaste U.S. Egypt MENA SAARC Asia Middle East 24.8% 27.1% SSA Americas 13.8% Africa Europe 22.1% 12.2% Present in 100+ countries
Slide 76: Market Position in Categories in Key Markets
Market Position in Categories in Key Markets Category Saudi Arabia Egypt UAE Nigeria Morocco Algeria US Turkey Hair Oil #1 #1 #2 #1 #1 Hair Cream #1 #1 #1 #1 #1 Hair Gel #1 #2 #1 #1 Hair Mask #1 #1 #1 Hair Serums #3 #3 #2 Shampoo #6 #6 #5 Leave-On #6 #3 Hair Color #5 Toothpaste #5 #4 #4 #3 #3 #3 Dep
Slide 77: Initiatives to Drive Growth
Initiatives to Drive Growth Winning in Winning in New Winning in New Sales & Distribution Consumers’ minds Geographies Categories Launching modern formats MT – JBPs with Key Seeding new markets Seeding new categories and variants Retailers in KSA and UAE Connecting with Younger GT – Expand Distribut
Slide 78: Thank You
Thank You