Dabur India Limited · NSE:DABUR
Dabur India — 15th Annual Global Investor Conference - August, 2019
43 slides from Dabur India's conference presentation, August 2019
Slide 1: Dabur India Ltd Investor Presentation
Dabur India Ltd Investor Presentation August 2019
Slide 2: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 2
Slide 3: Dabur – leader in Ayurveda & Natural Healthcare
Dabur – leader in Ayurveda & Natural Healthcare Overview Awards Established in 1884 – 135 years of trust and excellence Dabur wins ICSI National Award for Excellence in Corporate Governance 2019 One of the world’s largest in Ayurveda and natural healthcare Dabur ranked in the India’s Top 50 Valuable
Slide 4: Manufacturing facilities located across the globe
Manufacturing facilities located across the globe 12 manufacturing locations in India 8 international manufacturing locations Baddi UAE Jammu Sahibabad ` Egypt Alwar Pantnagar Tezpur Newai Nigeria Katni South Africa Turkey Narendrapur Silvasa Sri Lanka Nasik Pithampur Bangladesh Nepal 4
Slide 5: One of the largest distribution network in India
One of the largest distribution network in India Urban Rural Factory Factory C&F C&F GT Stockist MT Stockist Insti Stockist Super Stockist Wholesaler Sub Stockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer Distribution reach of 6.7 mn retail outlets with direct reach of 1.1 mn+ 5
Slide 6: Strong financial profile
Strong financial profile CAGR : 11% 85.3 70.9 78.3 78.7 77.0 77.5 • Revenue has become ~3x over the last 10 years 61.7 53.1 Revenue from 41.0 34.0 Operations • FY19 saw an adjusted growth of 11% in revenue from operations FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Operating Profit (INR bn) Op
Slide 7: Q1 FY20 – Consolidated Financials
Q1 FY20 – Consolidated Financials 9.3% 2,273 Revenue from 2,081 • Domestic business revenue grew by 11.0% led by volume growth of 9.6% Operations • International Business showing signs of recovery with CC growth of 7.7% Q1 FY19 Q1 FY20 • Consol Material cost remained steady at 50.5% in Q1 FY20 18.5%
Slide 8: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 8
Slide 9: 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) 9 Note: The figures in the brackets are as per FY19
Slide 10: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 10
Slide 11: 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 12: Market Leadership in Most Categories
Market Leadership in Most Categories Leading position in key categories across verticals #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 Crea
Slide 13: Recent Product Launches
Recent Product Launches Dabur Amla Kids Hair Babool Ayurvedic Real Oil & Shampoo Toothpaste Masala Range GlucoPlus C – Mango Real Mixed Berries Real Fruit ORS Flavour Fem Hair Removing INR 10 SKU of Real NatureCare Kabz Over Cream (Relaunch) Koolerz Mango 13
Slide 14: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 14
Slide 15: International Business
International Business Overview Sales (INR bn) • International Business comprises the Organic and Acquired business CAGR: 13% • Organic business (67% of international) is an extension of Indian portfolio with the same 27.1 23.1 24.2 23.2 23.2 21.8 personal care brands operating internationally 18.3
Slide 16: Market Position in Categories in International Business
Market Position in Categories in International Business 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 #
Slide 17: Product Launches in International Business – FY19
Product Launches in International Business – FY19 New range of Hair Waxes and Hair Mousse in Hobby, Turkey Vatika Afro Naturals Range in South Africa Olive Oil with Black Castor in South Africa ORS Fix-It Range in USA Vatika Serum in Egypt Amla Kids in Egypt 17
Slide 18: International Business – Strategic Levers
International Business – Strategic Levers - Capitalize on global Back to Nature trend Innovation - Drive innovation through range expansion - Distributor restructuring GTM - Real-time analytics - Joint Business Planning with Key Accounts - Digital Marketing - Savings initiatives Cost Management - Ma
Slide 19: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 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 GTM Strategy 20
Slide 21: Driving Innovation and Renovation for Market Leadership
1 Driving Innovation and Renovation for Market Leadership (a) Focus on Core and Scalable Brands FY19 Growth % 22.4% 13.7% Higher A&P Investments: Media spends increased by 20% for Focus brands, while for 17.3% the domestic business the increase was 6% 14.9% 17.3% Increased distribution footprint 21.
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 Superiority over other Almond HO 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) Driving NPDs Since April 2018 23
Slide 24: Regionalization
2 Regionalization Pilot started in North East – Growth of 12 geographical clusters 30%+ RISE Regional Insights State-wise P&Ls And RISE initiative in South underway Speed of Execution RI : Regional Insights SE : Speed of Execution (Long Term Strategic) (Quick Wins, Low Investment) • Capture Consumer
Slide 25: GTM Strategy
3 GTM Strategy Increasing Direct Distribution Rural Focus MT and E-comm Focus Increasing Village Coverage • E-commerce and MT saliency going One of the largest distribution 55,000 up network in FMCG in India 44,068 48,103 covering 6.7 mn+ outlets 41,473 – Strong growth across platforms • Backed by m
Slide 26: Cost Optimisation and Improving Service Levels
4 Cost Optimisation and Improving Service Levels Project Lakshya • Project under taken along with AT Kearney (Global Supply Chain Consultants) • Supply Chain Network Optimization • Improved Range Availability of Stocks at Depots as well as Distributors • Introduced new concept of TDC (Total Delivere
Slide 27: Capability Improvement
5 Capability Improvement Matrix Organisation Strengthening the Organization Sales E-Comm Head DRDC New R&D Head - HPC Marketing Marketing Services Healthcare Head Operations OTC Head Trade Marketing Head – Nepal Business Shared Goals across Functions Digital Head 27
Slide 28: Growth Strategy
Growth Strategy Power Brands Strategy Build the power brands through aggressive investments, innovation and premiumisation Incubating Innovations through Modern Trade and E-comm channels Launched Amla Kids Hair Oil & Shampoo on E-commerce Driving distribution expansion Direct reach of ~1.1 mn to go
Slide 29: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 29
Slide 30: Manufactured Capital
Manufactured Capital 20 manufacturing units at 12 30 locations in India and 8 Warehouses* overseas Capex (INR cr) 90% 28 Production efficiency C&FA agents as on 31st Mar achieved in FY19 2019* 420 239 219 10% 11,670 FY17 FY18 FY19 Increase in production Sub-stockists* over previous year 3,881 Super
Slide 31: Financial Capital
Financial Capital Market Cap* (INR cr) Revenue : INR 8,533 crore 72,586 57,602 Operating Profit : 48,856 INR 1,740 crore PAT : FY17 FY18 FY19 INR 1,442 crore Providing strong returns to investors 40.6% Dividend through capital appreciation and dividend payouts payout ratio 31 * As on year end
Slide 32: Human Capital
Human Capital Female Employees in India (in %) 45% 4,974 2,484 Employees in Overseas India Employees 22% 22% 16% 14% 7,458 Total On roll Parlour Promoters Management Trainees Research Function Marketing Function Finance Department Employees Profile by Age Group in India 3% 22% 30% 22 Mix of national
Slide 33: Natural Capital
Natural Capital Steady focus on protecting the environment 33
Slide 34: Natural Capital – Waste Recycling and Management
Natural Capital – Waste Recycling and Management Our Efforts The Outcomes • Plastic Waste Management ➢ Have initiated different projects pan India in collaboration with different NGOs 20% and Central Pollution Control Board (CPCB) approved PROs (Producers Plastic waste generated by Dabur Responsible
Slide 35: Natural Capital – Agronomy in Dabur
Natural Capital – Agronomy in Dabur 4,224 Farmers associated with Dabur in India & Nepal for herb cultivation 6,122 Acreage of land under cultivation of herbs and medicinal plants in India & Nepal 17.5 lakh saplings Distributed to farmers under our biodiversity initiative 29 Herbs cultivated in Nepa
Slide 36: Social and Relationship Capital
Social and Relationship Capital Amount spent on CSR activities (INR cr) 26 24 20 FY17 FY18 FY19 18 States covered through our CSR interventions 36
Slide 37: Our CSR Projects
Our CSR Projects Infrastructure Water, Sanitation support in & Hygiene (WaSH) government school Women Herb Cultivation Empowerment and Project Self-Defence Water Care for Conservation in Ragpickers Rajasthan 37
Slide 38: Intellectual Capital
Intellectual Capital R&D Focus Intellectual Property • Research and Development (R&D) forms the backbone of Dabur • To assure whether all the products meet the highest standard of quality, we conduct 16% detailed scientific tests and clinical trials on the ingredients and the final products Increase
Slide 39: Agenda
Agenda 1. Dabur – Overview 2. Business Structure 3. India Business 4. International Business 5. The Way Forward 6. Our Capitals 7. Annexure 39
Slide 40: Consolidated Profit & Loss
Consolidated Profit & Loss Q1 FY20 Q1 FY19 Y-o-Y (%) FY19 FY18 Y-o-Y (%) Revenue from operations 2,273.3 2,080.7 9.3% 8,533.1 7,748.3 10.1% Other Income 73.3 73.7 (0.5%) 296.2 305.2 (3.0%) Total Income 2,346.6 2,154.3 8.9% 8,829.2 8,053.5 9.6% Material Cost 1,147.7 1,048.6 9.5% 4,309.0 3,846.4 12.0%
Slide 41: Standalone Profit & Loss
Standalone Profit & Loss Q1 FY20 Q1 FY19 Y-o-Y (%) FY19 FY18 Y-o-Y (%) Revenue from operations 1,628.3 1,473.1 10.5% 6,273.2 5,609.1 11.8% Other Income 67.5 68.6 (1.7%) 274.7 283.2 (3.0%) Total Income 1,695.7 1,541.7 10.0% 6,547.9 5,892.3 11.1% Material Cost 851.0 782.5 8.8% 3,257.5 2,919.5 11.6% %
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars 31/03/2019 31/03/2018 Particulars 31/03/2019 31/03/2018 A Assets B Equity and Liabilities 1 Non-current assets 1 Equity (a) Property, plant and equipment 1,548 1,552 (a) Equity share capital 177 176 (b) Capital work-in-progress 64 42 (b) Other Equity 5,455 5,53
Slide 43: For more information & updates, Contact
For more information & updates, Contact: Gagan Ahluwalia (gagan.ahluwalia@mail.dabur) Ankit Joshi (ankit.joshi@mail.dabur)
Dabur India — 15th Annual Global Investor Conference - August, 2019 on 6ix