Dabur India Limited · NSE:DABUR
Dabur India — Citigroup's India Corporate Forum & Kotak's India Investment Forum - June 2017
35 slides from Dabur India's conference presentation, June 2017
Slide 1: The Science of Ayurveda – Investor Presentation June 2017
The Science of Ayurveda INVESTOR PRESENTATION JUNE 2017
Slide 2: Dabur Overview
DABUR OVERVIEW One of the oldest and largest FMCG Companies in the country World’s largest in Ayurveda and natural healthcare Total reach of 6 mn outlets, one of the highest among FMCG companies Nineteen world class manufacturing facilities catering to needs of diverse markets Strong overseas presen
Slide 3: Strong Financial Profile
STRONG FINANCIAL PROFILE In INR Bn Sales Profit After Tax (PAT) PAT PAT margin (%) 78.1 78.5 76.8 12.5 12.8 70.7 13.0 18.0% 61.5 11.0 10.7 16.0% 9.1 16.6% 15.9% 14.0% 9.0 7.6 12.0% 13.7% 7.0 12.4% 12.9% 10.0% 5.0 8.0% 6.0% 3.0 4.0% 1.0 2.0% FY13 FY14 FY15 FY16 FY17 -1.0 FY13 FY14 FY15 FY16 FY17 0.0%
Slide 4: Strong Financial Profile
STRONG FINANCIAL PROFILE Shareholders' Funds(INR Bn) ROIC 53.0% 48.5 47.9% 43.6% 45.2% 41.7 38.3% 33.5 26.6 21.0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Earnings Per Share 7.1 7.2 6.1 5.2 4.4 FY16 and FY17 are basis IND AS 3. FY13 FY14 FY15 FY16 FY17
Slide 5: Key Manufacturing Facilities
KEY MANUFACTURING FACILITIES Baddi, Himachal Pradesh Pantnagar, Uttaranchal Sahibabad,Uttar Pradesh Jammu, J&K Silvasa,Dadra & NagarHaveli Alwar, Rajasthan Katni,Madhya Pradesh Narendrapur,West Bengal Pithampur,Madhya Pradesh Tezpur,Assam Newai,Rajasthan Nasik,Maharashtra Sri Bangla UAE Egypt Nigeri
Slide 6: Tezpur Plant
TEZPUR PLANT • Dabur commissioned a new manufacturing facility in Tezpur, Assam in March’17. Set up with an investment of Rs 250 Crore, the Tezpur factory is the largest production facility for Dabur across the globe • Entire range of Dabur's Ayurvedic Medicines, Health Supplements, Hair Oils, Shamp
Slide 7: Distribution Network
DISTRIBUTION NETWORK We reach 6mn retail outlets in Factory Factory India C&F C&F GT Stockist MT Stockist Insti Stockist Super Sockist Wholesaler Sub Sockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer 6.
Slide 8: Distribution Initiatives
DISTRIBUTION INITIATIVES Focus on enhancing field efficiencies • Inducted around 1000 Village salesmen on company rolls • Increase the outlet coverage per SSM Increasing Direct Reach • Near term target to increase direct reach to 1 mn outlets Product Focus • Rural Focused Product Mix • Innovative la
Slide 9: What is Ayurveda?
WHAT IS AYURVEDA? “ Ayurveda is the traditional system of healthcare which promotes PREVENTION and CURE • Ayurveda is based upon Natural Remedies which incorporate the healing properties of plants and herbs. • It is a holistic system which heals by activating the natural inherent curative force of t
Slide 10: Dabur & Ayurveda
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Slide 11: Claim Based Communication
CLAIM BASED COMMUNICATION Double immunity 2X faster physical growth Clinically proven formula Clinically proven formula Stay fit, feel young 10.
Slide 12: Promoting Ayurveda: Doctor Reach
PROMOTING AYURVEDA: DOCTOR REACH Directly reaching • Detailing and Product 32000+ sampling Connecting Engaging Doctors Collaborating Promoting Association with 50 + Ayurvedic Colleges www.dabur Key Opnion Leaders mediclub.com 11.
Slide 13: Dabur Business Structure
DABUR BUSINESS STRUCTURE Dabur India Ltd. International Domestic (70%) (30%) Domestic Others (4%) FMCG (66%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY17 12.
Slide 14: India Business
INDIA BUSINESS 13.
Slide 15: Sales by Business Vertical
SALES BY BUSINESS VERTICAL Domestic FMCG* Healthcare HPC Foods (31%) (50%) (19%) Health Domestic FMCG Business Supplements 17% Skin & Salon Foods 5% 19% Digestives Domestic FMCG* 5% Business Breakdown OTC& Home Care 7% Ethicals Oral 9% Care Hair Care * Breakdown of Domestic FMCG business basis FY17
Slide 16: Market Leader in Categories
MARKET LEADER IN 6 CATEGORIES #Relative Competitive Position #1 #1 #2 #2 #2 #1 #1 #2 #3 #1 #1 Healthcare Home and Personal Care Foods * Position basis Nielsen Market Share data MAT Mar’17 15.
Slide 17: Business Strategy
BUSINESS STRATEGY Healthcare • Leadership in Ayurveda – scientific evidence & research • OTC portfolio to be scaled up through innovation & awareness creation • Doctor advocacy through Medico Marketing channel Home & Personal Care • Ayurvedic / Herbal focus • Premiumization & Differentiation • Stron
Slide 18: Building Consumer Connect
BUILDING CONSUMER CONNECT 17.
Slide 19: Focus on Innovations
FOCUS ON INNOVATIONS a Dabur Red Gel Dabur Woman Dabur Honey Tulsi & Dabur Restorative Tonic Ginger Madhurakshak Honitus Real Wellnezz Fem Ultra Amla Gold Bleach a 18 Dabur Brahmi Amla Hair Oil
Slide 20: Continue to Build Bigger Brands
CONTINUE TO BUILD BIGGER BRANDS 16 brands with turnover of INR 1bn+ with 3 brands over 10bn 19.
Slide 21: Most Trusted Brands
MOST TRUSTED BRANDS • Dabur Red Paste and Dabur Hajmola – have been ranked amongst the biggest gainers in the latest Brand Equity Most Trusted Brands List • Dabur Red Paste moved up 66 places and was ranked 34 in the Brand Equity Most Trusted Brands 2016 list, released by The Economic Times, up from
Slide 22: International Business
INTERNATIONAL BUSINESS 21.
Slide 23: Business Overview
BUSINESS OVERVIEW In INR Mn 24226 24520 23108 23199 18338 FY16 and FY17 are basis IND AS FY13 FY14 FY15 FY16 FY17 Regionwise Sales:FY 2016-17 • Saudi Arabia, UAE Middle East • Egypt, Nigeria, Kenya, South Americas Africa Africa 17% Middle East • Turkey, UK Europe 31% Europe 13% • Nepal, Bangladesh,
Slide 24: The Journey…
THE JOURNEY… 2015-2018 2011-2014 2007-10 2003-2006 •Enter into African •Hobi and Namaste Markets acquired which led to •Expand portfolio •Entry into Personal geographic expansion •Cross pollinate Care segments •Innovative product ideas and leanings •Manufacturing offerings from different units 2002
Slide 25: Organic International Business
ORGANIC INTERNATIONAL BUSINESS Others Oral Care Others Skincare 5% 2% 5% 8% Hair Oil Oral Care 37% 12% Hamamzaith & Styling 12% Hair Oil Hair Cream 93% Shampoo 14% 12% The Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity 24.
Slide 26: Recent Innovations
RECENT INNOVATIONS @ CAVITY PROTECTION STRONG TEEH| €y HEALTHY GUMS ( Herbal Olive Enamel Care Amla Men Demoviva Facial Fluid Range Hair Fonie Toothpaste G = 1 fl -Vatika I -Vatika Dermoviva Baby Range- Olive Vatika Stand Tough Enriched Powder Styling Gel Relaunch and Olive Baby Soap Vatika Shampoo
Slide 27: IBD: Business Strategy
IBD : BUSINESS STRATEGY Capitalize on the “Herbal Wave” trend Focus on Core Categories like Hair Care, Oral Care and Skin Care Leveraging Digital platform to enhance consumer awareness and brand visibility Optimize Advertising spends and capture better efficiencies Continued focus on brand innovatio
Slide 28: Consolidated Business Performance FY16-17
CONSOLIDATED BUSINESS PERFORMANCE FY16-17 In INR Mn Sales PAT 12770 78507 76801 12511 FY16 FY17 FY16 FY17 • Sales for FY17 declined by 2.2% and stood at Rs.76.8 bn. However, Sales were flattish in constant currency terms • PAT increased by 2.1% and stood at Rs.12.77 bn. • Operating margin increased
Slide 29: Sustainability: A Key Focus
SUSTAINABILITY: A KEY FOCUS 2537 9.3 lakh farmers/beneficiaries saplings of rare herbs 1253 Household of our Agronomical distributed free of toilets constructed initiatives in India cost to farmers 2374 students 393 510 women trained Women gained literacy benefited from School at our vocational at o
Slide 30: Shareholding Pattern and Dividend History
SHAREHOLDING PATTERN AND DIVIDEND HISTORY DII Retail 6% 6% 32% of Dabur’s shares are held by the FII Public 20% Promoters 68% Dividend History 225% 225% 200% 200% 175% 175% 175% 150% 150% 130% 115% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 29.
Slide 31: Awards and Accolades
AWARDS AND ACCOLADES Dabur India Ltd Chairman Dr. Anand C. Burman receives the ‘Outstanding Institution Builder’ award from Union Railway Minister Suresh Prabhu at the AIMA Awards ceremony Dabur India Ltd CEO Mr. Sunil Duggal named the Best CEO in the FMCG Category for the second year in a row, by t
Slide 32: Awards and Accolades
AWARDS AND ACCOLADES Dabur bagged the award for ‘Best Risk Management Practice’ in the FMCG category, at the 3rd India Risk Management Awards, organized by CNBC TV18 Dabur bagged the Silver award in the Manufacturing–Private Sector category at the 12th BML Munjal awards for 'Business Excellence thro
Slide 33: Consolidated P&L
CONSOLIDATED P&L In INR Mn DIL (Consolidated) P&L in Rs. million Q4FY17 Q4FY16 YoY (%) FY17 FY16 YoY (%) Net Sales 19,090 20,061 ‐4.8% 76,801 78,507 ‐2.2% Other Operating Income 57 40 214 180 Material Cost 9,761 9,920 ‐1.6% 38,432 38,496 ‐0.2% % of Sales 51.1% 49.5% 50.0% 50.1% Employee Costs 1,731
Slide 34: Statement of Assets and Liabilities
STATEMENT OF ASSETS AND LIABILITIES Particulars FY17 FY16 In INR Mn A ASSETS 1 Non-current assets (a) Property, plant and equipment 1,479.02 1,238.77 (b) Capital work-in-progress 42.10 44.80 (c) Investment property 54.99 60.60 (d) Goodwill 410.53 410.53 (e) Other Intangible assets 13.86 18.10 (f) Fi
Slide 35: Thank You
Thank You
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