Dabur India Limited · NSE:DABUR
Dabur India — Edelweiss India Conference 2013
31 slides from Dabur India's conference presentation, February 2013
Slide 1: Dabur India Ltd. – Edelweiss India Conference
Dabur India Ltd. Edelweiss India Conference February 2013, Mumbai
Slide 2: Indian Economy
Indian Economy Real GDP Growth Rate – YoY (%) Gross National Disposable Income (Per Capita) in Rs. ‘000 9 .0 % 8.0% 6 7% 6.7% 80.0 75.4 8 .0 % 6 1% 6.1% 66 1 66.1 7 .0 % 5.3% 5.5% 5.3% 70.0 57.0 6 .0 % 60.0 5 .0 % 50.0 4 .0 % 40.0 3 .0 % 2 .0 % 30.0 1 .0 % 20.0 0 .0 % 10.0 0.0 Q1FY12 Q2FY12 Q3FY12 Q
Slide 3: FMCG Sector Overview
FMCG Sector Overview FMCG Industry Size (in Rs. bn) FMCG Industry Urban (in Rs. bn) FMCG Industry Rural (in Rs. bn) 2,500 800 2,000 1,895 1,400 1,262 700 633 1,626 1,200 1,082 600 544 1,500 1,000 500 800 400 1,000 600 300 00 500 400 200 200 100 0 0 0 MAT Sep '11 MAT Sep '12 MAT Sep '11 MAT Sep '12 M
Slide 4: FMCG Industry Growth Drivers
FMCG Industry Growth Drivers Shift from Rise in per Increase in Rural unorganised to capita category penetration Consumption organised consumption • Category • Driven by a • Evidenced by • Level of per capita penetration combination of growth in hair oils increase in continues to be increasing incom
Slide 5: Rural Growth
Rural Growth FMCG growth in Rural India has been ahead of FMCG Growth Urban v/s Rural Urban growth in the last few years Urban Rural Rural consumers’ wallet has expanded driven by 18% factors such higher MSPs (Minimum Support 16% 14% Prices) for agricultural produce, loan waivers 10% 11% 13% 14%
Slide 6: Category Penetration Levels
Category Penetration Levels Rural Penetration Urban Penetration 90% 80% 80% 77% 70% 67% 57% 59% 60% 50% 42% 40% 37% 32% 30% 26% 18% 18% 19% 20% 10% 3% 5% 4% 2% 0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito Instant Hair Dyes Floor Cleaners Repellants Noodles Source: Industry data Low penetrati
Slide 7: Per Capita Consumption
Per Capita Consumption Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.1 1.5 4 3.2 1.0 3 1 2 0.8 0.5 0.3 1 0.3 0 0 China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand Toothpaste – Per Capita Consump
Slide 8: Dabur Overview
Dabur Overview Established in 1884 - more than 125 Twelve Billion Rupee Brands Years of Trust & Excellence Among top 4 FMCG companies in India World’s largest in Ayurveda and natural healthcare Revenue of Rs. 53.2 billion and profits of Rs 6.4 Rs. 6 4 billion in FY2011 FY2011-12 12 Strong
Slide 9: Performance at a Glance (5 years)
Performance at a Glance (5 years) Net Sales (Rs.Sales billion) Net Profit (Rs. billion) 6.5 52.8 5.7 5.0 40.8 33.9 3.9 28.1 3.3 23.6 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 EBITDA (Rs. billion) Shareholders Funds (Rs. billion) 9.5 8.3 17.2 6.7 13.9 5.2 44 4.4 9.3 8.2 6.2 FY08 FY09 FY10 FY1
Slide 10: Global Footprint
Global Footprint UK Turkey y Canada Nepal UAE U.S. Egypt B’Desh Nigeria Domestic Mfg. Locations Key markets Manufacturing Facilities Our strategy is to localize manufacturing, manufacturing supply chain and product offerings to suit consumer requirements in each geography 10
Slide 11: Distribution Overview
Distribution Overview Factory Depot (Carry & Forward Agents) Stockists Super stockists Insti Stockists Modern Trade Military / CSD Stockist Wholesalers Sub stockists Retail trade R Rural l ttrade d Unit Canteens Insti customers Direct reach Shoppers & Consumers 0.8 mn outlets Total Reach at 5.8 mn r
Slide 12: Presence in FMCG Categories
Presence in FMCG Categories Category Position Market Share Key Brands Dabur Amla hair Oil, Vatika hair oil & Hair Care 3 12% V tik Shampoos Vatika Sh Red toothpaste, Babool, Meswak, Red Oral Care 3 13% toothpowder Ayurvedic 1 67% Dabur Chyawanprash Tonics Digestives 1 56% Hajmola Fruit Juices 1 52%
Slide 13: Business Structure
Business Structure Dabur India Li it d Limited Domestic Business International (69.7%) Business (30.3%) Consumer Dabur Hobi Namaste Foods Retail Others* Care International Group Labs. LLC (10.1%) (0.8%) (2.7%) (56.0%) (17.5%) (2.6%) (10.3%) Note: % figure in brackets indicate % share in Consolidated
Slide 14: Consumer Care Segment
Consumer Care Segment Category-wise Share of Consumer Care Overview Sales^ Oral Care Health Hair Care is the largest category and 17% Supplements contributes to 30% of Consumer Care sales 21% Skin Care Health Supplements contribute to 21% of 6% Digestives Consumer Care sales Home Care 8% 6% Or
Slide 15: Consumer Care Categories
Consumer Care Categories Hair Oils Key Brands #2 player in Hair Oils Vatika: Value added Dabur Amla: Largest coconut oil brand in the portfolio Shampoo Key Brands #4 player l in i Shampoos Vatika range of shampoos 15
Slide 16: Consumer Care Categories
Consumer Care Categories Oral Care Key Brands #3 player in Toothpastes #2 player in Dabur Red: Ayurvedic Meswak: Premium Toothpowder Toothpaste & Toothpowder Babool: Herbal toothpaste for economy herbal toothpaste segment Skin Care Key Brands #2 player in Ski Skin Lightening Gulabari range of rose U
Slide 17: Consumer Care Categories
Consumer Care Categories Health Supplements Key Brands #1 p player y in Ayurvedic Tonics #2 player in Glucose #1 player in Dabur Chyawanprash: Dabur Glucose: Dabur Honey: Largest Largest selling health 2nd largest player branded honey in the branded Honey supplement in the in the country country cou
Slide 18: Consumer Care Categories
Consumer Care Categories Home Care Key Brands #1 player in Air Fresheners #1 player in Mosquito Repellant Creams Odonil: Air freshner Odomos: Mosquito Sanifresh: #2 player in Toilet range repellant skin cream Toilet cleaner Cleaners Odonil became one of the Billion Rupee Brands during 2011-12 18
Slide 19: Consumer Care Categories
Consumer Care Categories OTC and d Ethicals Ethi l Repository of Dabur’s Ayurvedic Healthcare knowledge Range of over 260 products Focusing on multiple therapeutic areas Focus on growing the OTC Health Health-Care Care portfolio aggressively Key OTC Brands Lal Tail Honitus Janma Ghunti Dashm
Slide 20: Foods Business
Foods Business Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Foods business has surpassed the Rs. 5 billion mark in sales during FY2011-12 Key Brands #1 player in Fruit Juices Real: F
Slide 21: Project Double – Rural Coverage Enhancement
Project Double – Rural Coverage Enhancement Project Double was initiated in the later part of FY2011‐12 to expand direct coverage in rural markets and is now largely complete Ten states were identified which represented c. 72% of India’s rural FMCG potential Post successful pilots in Uttar Pra
Slide 22: International Business
International Business Started as an Set up a franchisee at Acquired & renamed franchisee as Building scale- scale c. c 30% of Exporter Dubai in 1989 Dabur International Ltd Consol. Sales Focus on Order Demand generation Local operations further strengthened High Levels of Localizati
Slide 23: Africa and Middle East Potential
Africa and Middle East Potential Real GDP Growth Rates (YoY) in % Africa’s Bulging Base Source: IMF Source: McKinsey on Africa Africa, June 2010 Middle East and Africa have witnessed stable GDP growth rates Total GDP of African economies is around US$ 1 trillion i.e. similar to India Between B
Slide 24: Our Strategy
Our Strategy Three pronged Growth Strategy Expand Innovate Acquire Our differentiation is the herbal and ayurvedic platform E Expand d Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders l
Slide 25: Recent Launches - India
Recent Launches - India Thirty Plus Gulabari: Moisturizing Lotion Activ: Banana Strawberry and Green Apple Punch Variants Odonil Gels Gulabari: Saffron & Turmeric Cold Cream Fem: Saffron and Pearl Variants 25
Slide 26: Recent Launches - International
Recent Launches - International Vatika Enriched Hair Vatika Henna Hair Dabur – Medicated Vatika Professional Oil – Black Seed Color Toothpaste Range Curls Unleashed Range 26
Slide 27: Recent Performance: 9M FY2012-13
Recent Performance: 9M FY2012-13 5000 4,615.3 Consolidated Sales grew by 17.7% during 3,919.6 4000 9MFY13 Revenue 3000 Sales growth was a combination of volume ( Rs. Cr.)) (in 2000 growth price increases and translation gains growth, 1000 0 9M FY12 9M FY13 1000 828.5 EBITDA increased by 17.6%
Slide 28: Market Cap & Shareholding
Market Cap & Shareholding Market Cap (Rs. Million) Shareholding Structure* 231 800 231,800 Others, DII 5.1% DIIs, 5 1% 6.6% FIIs, 19.6% 137,997 Promoters, 22,403 31,760 68.7% Mar‐2000 Mar‐2005 Mar‐2010 Feb‐2013 *As of Dec 31, 2012 Dabur has witnessed exponential increase in market capitalization o
Slide 29: Consolidated P&L
Consolidated P&L In Rs. mn Q3FY13 Q3FY12 YoY (%) 9MFY13 9MFY12 YoY (%) Net Sales 16,307.2 14,526.8 12.3% 46,152.9 39,195.9 17.7% Other Operating Income 52.6 46.0 171.8 139.7 Material Cost 7,953.6 7,404.0 7.4% 22,794.7 20,075.1 13.5% % of Sales 48.8% 51.0% 49.4% 51.2% Employee Costs 1,229.5 1,025.4 1
Slide 30: Consol. Statement of Assets & Liabilities
Consol. Statement of Assets & Liabilities Dabur India Limited Consolidated Co so dated State Statement e t oof Assets ssets aand d Liabilities ab t es ((Amount ou t in Rs.mn) s. ) Particulars As at 31/12/2012 (Unaudited) As at 31/03/2012 (Audited) Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) S
Slide 31: Disclaimer
Disclaimer Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncerta