Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (February 2006)
36 slides from Dabur India's investor presentation, February 2006
Slide 1: Dabur India Limited - Presentation to Investors
DABUR INDIA LIMITED PRESENTATION TO INVESTORS February 2006 1 Dabur.Celebrate Life
Slide 2: Agenda
AGENDA INDUSTRY SCENARIO COMPANY BACKGROUND BUSINESS PROFILE GROWTH STRATEGY KEY FINANCIALS & UPDATES 2 Dabur.Celebrate Life
Slide 3: Consumer Sector Overview
CONSUMER SECTOR OVERVIEW •Buoyancy in FMCG Sector •Moderate price increases across categories •GDP growth continues to be strong • Heightened new product development activities to take advantage of increasing demand •Increase in demand led by •Changing lifestyles •Favorable demographics •Increasing
Slide 4: Strong Economic Outlook
STRONG ECONOMIC OUTLOOK 12.00% 9.60% 9.00% 10.00% 9.10% 8.90% 7.90% 8.00% 7.80% 8.00% 6.80% 6.60% 6.80% 6.60% 6.00% 4.00% 3 YRS OF STABLE GROWTH 3.30% 3.00% 2.00% 1.10% Growth in % 0.00% FY02 FY03 FY04 FY05 FY06E -2.00% -4.00% -6.00% Agriculture -8.00% -7.2% Industry -10.00% Services 9.00% 8.50% Yea
Slide 5: FMCG Sector Performance - Snapshot
FMCG SECTOR PERFORMANCE - SNAPSHOT 35% 30% 30% 28% 26% 25% Volume GROWTH ACROSS Value 20% 17% CATEGORIES 15% 12% 11% 10% 8% 5% 5% 3% 3.3% 0% Pe rfum e d Coconut Oil Norm al Anti dandruff Toothpas te s Hair Oil s ham poo s ham poo Source: AC Nielsen Retail Audit report Dec 05 5 Dabur.Celebrate Life
Slide 6: Agenda
AGENDA INDUSTRY SCENARIO COMPANY BACKGROUND BUSINESS PROFILE GROWTH STRATEGY KEY FINANCIALS & UPDATES 6 Dabur.Celebrate Life
Slide 7: Dabur Group - An Introduction
DABUR GROUP – AN INTRODUCTION Largest Indian Personal & World Leader in Ayurveda Health care Company – Portfolio of over 400 Revenue of over USD 350 mn Herbal / Ayurvedic Products Market Cap of USD 1.5 Bn Professionally Managed A Trusted Indian Strong Internal Competencies Strong rating on governanc
Slide 8: Dabur Group - On Growth Path
DABUR GROUP – ON GROWTH PATH CAGR of 20% in revenues 1800 1600 1400 1200 1000 Dabur India 800 Dabur 600 Pharma 400 200 0 1980 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 Dabur Pharma was part of Dabur India prior to 2003; Pharma business demerged into separate 2005 company in 2003-04 8 Da
Slide 9: Outperforming the Sector
OUTPERFORMING THE SECTOR Outperformed the industry in 2004-05, 2003-04 and 2002-03 Dabur vs Industry: Sales Growth Dabur vs Industry: PAT Growth 20% 46% 16% 50% 37% 15% 12% 40% 32% 30% Dabur 10% 7% Dabur 6% 20% 5% 9% 10% 10% Industry Growth (%) Industry Growth (%) 5% 10% -0.30% 0% 0% FY03 FY04 FY05
Slide 10: Management - Beyond Promoters
MANAGEMENT – BEYOND PROMOTERS A commitment of the Burmans to make Dabur a professionally 1998 managed outfit – move out of executive role Board of Directors restructured to provide more room for 2002 independent directors Dabur Rated at “GVC Level 2” by Crisil on Corporate 2003 Governance & Value Cr
Slide 11: Strong Competencies
STRONG COMPETENCIES … The Range & The Value Add Brand Capabilities Strong Supply Chain Capability Comprehensive Innovative Processes Distribution reach of Range of Products around 1.6 million retail Product Adaptation outlets Proven Efficacy Media & Advertising Assured Supply of rare Strong R&D and
Slide 12: Manufacturing Presence - India
MANUFACTURING PRESENCE - India Jammu, J&K Sahibabad, UP Baddi, HP Birganj, Nepal Jaipur, Rajasthan Pantnagar, Uttaranchal Silvassa Narendrapur, W.B 3 more facilities Kanpur, UP added with Balsara Acquisition Over 27 CFA’s Manufacturing across the country Facilities 12 Dabur.Celebrate Life
Slide 13: Manufacturing Presence - The Bigger Picture
MANUFACTURING PRESENCE – THE BIGGER PICTURE London, Moscow, U.K. Russia New Jersey, U.S.A Birganj, Nepal Cairo, Egypt Dhaka, Bangladesh Lagos,Nigeria Offices Dubai, U.A.E Branch Manufacturing Facilities …..On the Expansion Mode 13 Dabur.Celebrate Life
Slide 14: Agenda
AGENDA INDUSTRY SCENARIO COMPANY BACKGROUND BUSINESS PROFILE GROWTH STRATEGY KEY FINANCIALS & UPDATES 14 Dabur.Celebrate Life
Slide 15: Dabur India Ltd - Business Divisions
DABUR INDIA LTD - BUSINESS DIVISIONS CONSUMER CARE Range of personal care and DIVISION 62% health care products CONSUMER HEALTH Range of Ayurvedic medicines DIVISION 8% and OTC Ayurvedic products INTERNATIONAL Dabur’s international business 9% BUSINESS DIVISION based in Dubai Dabur Foods Ltd, a 100%
Slide 16: CCD Revenue Breakup
DABUR INDIA LTD – CCD REVENUE BREAKUP For nine months ending Dec 05(including Balsara) Home Car e 6% He a lt h supple me nt s 23% Hair Car e 31% Diges tives 10% Baby &Skin Car e 8% Or al Car e 22% 16 Dabur.Celebrate Life
Slide 17: CCD - Hair Oils Category
CCD – HAIR OILS CATEGORY Key Highlights Competitive Profile Hair Oils Category Hair oil market estimated at Rs.15.5 Marico 28% bn Others 36% Two large domestic players – Dabur & HLL Marico dominate the category 3% Dabur Bajaj Keo Karpin 19% Dabur’s Key Brands 4% Emami 6% 4% Dabur Amla Hair Oil Vatik
Slide 18: CCD - Shampoo Category
CCD – SHAMPOO CATEGORY Key Highlights Competitive Profile Market size estimated at Rs. 10.5 bn Shampoo Category Dabur 6% Others Low penetration and consumption 7% indicates category potential Ayur 4% P&G HLL Stabilization in the category after 16% 53% price wars Cavinkare 14% Dabur’s Key Brands Vati
Slide 19: CCD - Oral Care Category
CCD – ORAL CARE CATEGORY Key Highlights Competitive Profile Oral care market estimated at Rs.23bn Oral Care Category Ajanta India Toothpastes account for 80%, 2% toothpowders are 20% of the category Others 9% Anchor Dabur with 12.4% share is no.3 player Health after HLL and Colgate 5% Dabur Balsara
Slide 20: CCD - Health Supplements Category
CCD – HEALTH SUPPLEMENTS CATEGORY Key Highlights Competitive Profile Chyawanprash Category Chyawanprash category size estimated at Zandu Rs 2 bn Others 7% 10% Dabur pioneered the Chyawanprash Baidyanath category over 30 years ago and is the market leader 11% Dabur Received “Brand re-launch of the 63
Slide 21: CCD - Digestives & Confectionery Category
CCD – DIGESTIVES & CONFECTIONERY CATEGORY Key Highlights Competitive Profile Digestives Category Digestives market including antacids is estimated at Rs.2.5 bn Glaxo S mith klin e Oth ers 5% 12% Dabur defined the Herbal Digestives segment using traditional Ayurvedic P fiz er 17% remedies K n oll D a
Slide 22: CCD - Skin & Baby Care Category
CCD – SKIN & BABY CARE CATEGORY Key Highlights Competitive Profile Skin and Baby Care market size estimated at Rs Baby Oil Category 13 bn AD Others Dabur Lal Tail is the largest selling baby oil in Vitamin 13% Dabur Lal Tail India Keo Karpin 4% 36% 4% Bertolli Dabur Gulabari – A branded rose water 4
Slide 23: Home Care
HOME CARE Key Highlights With the Balsara acquisition, Dabur has entered the household care category with 4 offerings Odonil : a generic name in Air freshener segment Odomos : dominant share of personal application insect repellants Odopic – Dishwashing and surface cleaner with strong equity in West
Slide 24: Consumer Health Division
CONSUMER HEALTH DIVISION Key Highlights LivFit One of the key businesses identified as a growth driver Over 260 medicines for treating a range of ailments and body conditions All Dabur products undergo scientific tests and clinical validation processes Tie-ups with Ayurvedic hospitals and colleges f
Slide 25: Foods Business Division
FOODS BUSINESS DIVISION Market Dynamics Competitive Profile Category estimated at Rs. 2.2 bn Others Real Fruit Juice (Dabur) & 3% Tropicana (PepsiCo) dominate the Tropicana category 40% Dabur 57% Increasing health consciousness leading to category growth of 30% Focus on innovation and strong growth
Slide 26: IBD - A Background
IBD – A BACKGROUND Stage 4 Stage 3 Extending local International presence Stage 2 business THE NEXT Local LOGICAL STEP Stage 1 Manufacturing • Acquired Redrock and •Strategy in place to • Set up renamed it Dabur establish strong global Exporter Redrock,a International presence franchisee in 1989 Lim
Slide 27: Focus Markets - An Overview
FOCUS MARKETS – An Overview DABUR IBD – FOCUS MARKETS South Asian Arabia Africa North America Subcontinent Pakistan, Nepal & GCC Countries Nigeria & Egypt U.S.A & UK Bangladesh 27 Dabur.Celebrate Life
Slide 28: Potential Markets - An Overview
POTENTIAL MARKETS – AN OVERVIEW DABUR IBD – POTENTIAL MARKETS South Asia Arabia CIS Russia & Other Sri Lanka & Malaysia Iran, Iraq & Sudan CIS markets 28 Dabur.Celebrate Life
Slide 29: Agenda
AGENDA INDUSTRY SCENARIO COMPANY BACKGROUND BUSINESS PROFILE GROWTH STRATEGY KEY FINANCIALS & UPDATES 29 Dabur.Celebrate Life
Slide 30: The Growth Strategy
THE GROWTH STRATEGY Others PLATFORMS Herbal specialist platform Natural Herbal platform in the personal care & health care products Leveraging Ayurveda expertise Herbal Deeper penetration and expansion into new markets Ayurveda South India Current categories New categories Global markets Nor
Slide 31: Brand DNA - The Power Brand Strategy
BRAND DNA – THE POWER BRAND STRATEGY Vatika Dabur Hajmola Anmol Real VFM range Fruit Herbal Digestives & Herbal Beauty Hair Care & Beverages Healthcare Confectionery Skin Care υ Hair Oils υ Oral Care υ Digestive υ Hair Care υ Natural tablets Fruit υ Shampoos υ Health υ Shampoos Juices Supplements υ
Slide 32: Agenda
AGENDA INDUSTRY SCENARIO COMPANY BACKGROUND BUSINESS PROFILE GROWTH STRATEGY KEY FINANCIALS & UPDATES 32 Dabur.Celebrate Life
Slide 33: Key Highlights: 2004-05
KEY HIGHLIGHTS: 2004-05 Growth of 10.5% in DIL and Sales 15.6% for consolidated Growth of 46.3% in DIL and for Net profit consolidated ROCE Increased from 34.9% to 38.7% for DIL EBIDTA % Increased from 12% to 14.8% for DIL Went down from negative 5 Working Capital days to negative 20 days 250% divid
Slide 34: Performance Snapshot - YTD 31st Dec '05
Performance Snapshot – YTD 31st Dec ‘05 CONSOLIDATED SALES GROWTH: 24.3% DIL STANDALONE SALES GROWTH: 8.5% CONSOLIDATED PAT GROWTH: 46.5% DIL STANDALONE PAT GROWTH: 30% CONSOLIDATED EBIDTA GROWTH: 42.3% DIL STANDALONE EBDITA GROWTH: 31.8% 34 Dabur.Celebrate Life
Slide 35: The Way Forward
THE WAY FORWARD…. Deliver shareholder value in terms of Inorganic growth Strong free cash strategy to flows, acquire EVA businesses/ ROCE and brands that Sharp focus on Dividend provide good operational payouts strategic fit and efficiencies to synergies Continue to help reach outperform profit goal
Slide 36: Thank You
THANK YOU