Dabur India Limited · NSE:DABUR
Dabur India — 22nd CLSA India Forum - November, 2019
58 slides from Dabur India's conference presentation, November 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019
Slide 2: Agenda
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 2
Slide 3: 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 4: 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 5: H1 FY20 Performance
H1 FY20 Performance Volume Growth 7.0% Revenue from Operations Operating Profit Net Profit/ PAT 4,485 947 766 4,206 +7% 837 +13% 706 +9% H1 FY19 H1 FY20 H1 FY19 H1 FY20 H1 FY19 H1 FY20 Note: 1. All figures are in INR cr 2. The figures in circle represent growth figures 5
Slide 6: Business Structure
Business Structure Domestic International (72.9%) (27.1%) Domestic FMCG Others Organic Acquired (contributes 2/3rd of the (contributes 1/3rd of the (69.4%) (3.5%) International business) International business) Note: The figures in brackets are as per FY19 revenue 6
Slide 7: Agenda
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 7
Slide 8: India Business – Category-Wise
India Business – Category-Wise Revenue FY19 H1 FY20 Category Key Brands Contribution Growth Growth (FY19) Health Supplements 17.6% 14.6% 16.7% Healthcare Digestives 5.9% 16.4% 14.2% (32.3%) OTC & Ethicals 8.9% 13.7% 9.6% Hair Care 21.6% 14.8% 8.0% Oral Care 16.8% 9.5% 7.8% HPC (50.6%) Home Care 6.9%
Slide 9: Market Leadership in Most Categories
Market Leadership in Most Categories #Relative Competitive Position1 #1 #1 #2 #2 #2 #3 #1 #2 #1 #1 #1 Honey Chyawanprash Baby Glucose Hair Oils Oral Care Skin Toilet Cleaners Air Mosquito Juices Massage Care - Fresheners Repellant Oil Bleaches Creams Healthcare Home and Personal Care Foods Leading p
Slide 10: Agenda
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 10
Slide 11: 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 11
Slide 12: 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 13: International Business – Initiatives to Drive Growth
International Business – 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 Youn
Slide 14: Agenda
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 14
Slide 15: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 15
Slide 16: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 16
Slide 17: 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 17
Slide 18: Strengthen immunity positioning
Strengthen immunity positioning Develop Modern Formats & communication for youth & kids Extend usage beyond winters – monsoon campaign Enhance chemist reach 18
Slide 19: Strengthen fitness proposition
Strengthen fitness proposition Innovation – Launch premium variants Localised communication strategy Increase food usage of honey through new formats 19
Slide 20: Strengthen Ayurvedic positioning
Strengthen Ayurvedic positioning Renovation and contemporization Create a portfolio for baby care Distribution enhancement 20
Slide 21: Reinforce Ayurvedic positioning
Reinforce Ayurvedic positioning Regionalization New formats & variants: Lozenges, Hot Sip Distribution enhancement 21
Slide 22: Scale up the Powder Fizz portfolio
Scale up the Modernization Powder Fizz of formats portfolio Use digital Extend Pudin media to Hara into connect with Food millennials 22
Slide 23: Strengthen the core brand Asli Amla Dabur Amla
Strengthen the core brand ‘Asli Amla Dabur Amla’ Contemporization and Premiumization Create moats through flanker brands - Brahmi & Sarson Amla Improve Accessibility 23
Slide 24: Gain market share from non-natural players
Gain Focus on market low share from through put non-natural markets players Proposition Connect of ‘Keeps digitally dental with Problem Millennials Away’ 24
Slide 25: 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 25
Slide 26: Increasing Consumption Occasions
Increasing Consumption Occasions Expansion in low through put geographies Premiumization through new health- based variants Entering the fruit drinks segment 26
Slide 27: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 27
Slide 28: Driving Innovation and Renovation – India Business
Driving Innovation and Renovation – India Business Healthcare NatureCare Glucoplus C – Hajmola Kabz Mango Flavour Chat Cola Over Dabur Dabur Vasant Hridayasava Dadimavaleha Meha Ras 28
Slide 29: Driving Innovation and Renovation – India Business
Driving Innovation and Renovation – India Business Healthcare Amla Churna Arjun Chhal Churna Brahmi Churna (Boosts immunity, relieves acidity and burning sensation, (Good for heart health, healthy cholesterol levels, helps relieve (Helps improve concentration, antioxidant properties) beneficial for
Slide 30: Driving Innovation and Renovation – India Business
Driving Innovation and Renovation – India Business Home & Personal Care Babool Dabur Amla Kids Ayurvedic Hair Oil & Shampoo Toothpaste Fem Fruit Crème Bleach 30
Slide 31: Driving Innovation and Renovation – India Business
Driving Innovation and Renovation – India Business Foods Real Masala Real Mixed Berries Range Lemoneez INR 10 Powder – SKU of 500 gm Real Fruit Real SKU in ORS Koolerz Foods Mango Services Business 31
Slide 32: Driving Innovation and Renovation – International Business
Driving Innovation and Renovation – International Business Real Juices in UAE, Japan and ORS Olive Oil Fix It Range Olive Oil with Black Castor Bahrain Vatika Hair Food Vatika Hair Wax Vatika Afro Naturals Range 32
Slide 33: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 33
Slide 34: 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 0.91 FY18 1.02 FY19 1.10 6.4 H1 FY20 1.18 FY20E 1.20 FY18 FY19 34
Slide 35: 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 35
Slide 36: Rural Focus
Rural Focus Portfolio as per Consumer Increasing Reach Building Rural Infrastructure Preferences 55,000 51,158 ~1,400 44,068 41,473 Rural Sales Force 45% FY19 Contribution to Sales FY18 FY19 H1 FY20 FY20E 395 Increasing Village Coverage Super stockists 13,008 Sub-stockists (1,338 added in H1) Focus
Slide 37: 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) 37
Slide 38: 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 38
Slide 39: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 39
Slide 40: Our Manufacturing Footprint in India
Our Manufacturing Footprint in India Baddi Sahibabad Jammu ` Tezpur Alwar Pantnagar Newai Katni Narendrapur Silvassa Nasik Pithampur 40
Slide 41: Our Manufacturing Strategy - International
Planning Manufacturing Locations basis FTAs Strategy - International Our Manufacturing Turkey EU Egypt COMESA US NAFTA (3P) Nigeria ECOWAS UAE GCC + GAFTA South Africa 8 manufacturing locations SADC From centralized manufacturing to localized manufacturing for speed and flexibility 41
Slide 42: 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 Sep'19 Baseline Mar'19 Sep'19 Reduce Logistics Costs Modern Trade Fill Rates (OTIFs) Days of Inventory - India Business 95
Slide 43: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 43
Slide 44: Capability – Improving Diversity & Inclusion
Capability – Improving Diversity & Inclusion Women employees in India % 44
Slide 45: 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 45
Slide 46: 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 47: 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 48: Upgrading Our IT and Digital Capabilities
Upgrading Our IT and Digital Capabilities Integrated Migrated to supply chain ERP SAP HANA planning Upgradation and BW through SAP HANA IBP Upgrading Using Upgrading Distributor Tableau to Sales Force Management create virtual Automation System dashboards (SFA) (DMS) 48
Slide 49: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Strategy Driving Innovation and Distribution Expansion Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 49
Slide 50: ESG – Key Focus Areas
ESG – Key Focus Areas Environment Sustainability 2% of profits spent on CSR Eradicating Hunger, Poverty and Malnutrition Preventive Healthcare Promoting Biodiversity Women Empowerment & Skill Development Robust Governance 50
Slide 51: 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 52: 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 53: Our CSR Initiatives
Our CSR Initiatives Eradicating Hunger, Poverty Women Empowerment & Skill Preventive Healthcare Promoting Biodiversity and Malnutrition Development Over 5 mn packs of Real Constructed around 4,000 Vocational training to over 15 lakh saplings planted juices distributed household toilets till date 6,0
Slide 54: 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 55: Agenda
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 55
Slide 56: Consolidated Profit & Loss
Consolidated Profit & Loss H1 FY20 H1 FY19 Y-o-Y (%) FY19 FY18 Y-o-Y (%) Revenue from operations 4,485.3 4,205.7 6.6% 8,533.1 7,748.3 10.1% Other Income 155.1 154.9 0.1% 296.2 305.2 (3.0%) Total Income 4,640.3 4,360.5 6.4% 8,829.2 8,053.5 9.6% Material Cost 2,236.2 2,124.4 5.3% 4,309.0 3,846.4 12.0%
Slide 57: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Sep’19 Mar’19 Particulars Sep’19 Mar’19 A Assets B Equity and Liabilities 1 Non-current assets 1 Equity (a) Property, plant and equipment 1,679 1,548 (a) Equity share capital 177 177 (b) Capital work-in-progress 112 64 (b) Other Equity 5,975 5,455 (c) Investmen
Slide 58: Thank You
ST Chyawanprash Eph Dabur Chyawanprash ML) IMMUNITY MEDICINES _ CHOICE IS YOURS! Thank You