Dabur India Limited · NSE:DABUR
Dabur India — Shareholder Meeting (August 2019)
55 slides from Dabur India's shareholder meeting presentation, Aug 30, 2019
Slide 1: Exchange filing letter: presentation at 44th AGM
Ref: SECISE/2019-20 ,"dia ”05 Date: August 30, 2019 Scrip Symbol: NSE — DABUR, BSE Scrip Code: 500096 To, Corporate Relation Department National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/1, G Block Bandra — Kuria Compiex Dalal Street, Mumbai
Slide 2: Annual General Meeting 2019
Annual General Meeting 2019 Presentation by Mohit Malhotra, CEO
Slide 3: Dabur – A Leader in Ayurveda & Natural Healthcare
Dabur – A Leader in Ayurveda & Natural Healthcare Our Vision Dedicated to the Health & Well-being of every Household
Slide 4: 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 5: 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 6: Momentum continues in Q1 FY20
Momentum continues in Q1 FY20 Volume Growth 9.6% Revenue from Operations Operating Profit Net Profit/ PAT 2,273 458 363 2,081 +9% 386 +19% 329 +10% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Note: 1. All figures are in INR cr 2. The figures in circle represent growth figures
Slide 7: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 8: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 9: Power brand strategy: increase penetration and grow the category
13.7% FY19 Sales Growth Increase penetration and grow the category Develop Modern Formats & communication for youth & kids Extend usage beyond winters – monsoon campaign Enhance chemist reach
Slide 10: Grow category – become part of food
Grow category – 17.3% become part of FY19 Sales Growth food Innovation – Launch premium variants Localised communication strategy Focus on quality & purity
Slide 11: Market share gain and baby care portfolio
14.9% FY19 Sales Growth Market share gain Communicate Ayurvedic positioning Create a portfolio for baby care Distribution enhancement
Slide 12: Reinforce Ayurvedic positioning in cough & cold
17.3% FY19 Sales Growth Reinforce Ayurvedic positioning Increase market share in cough & cold category New formats & variants: Lozenges, Hot Sip Distribution enhancement
Slide 13: Scale up the Powder Fizz
21.1% FY19 Sales Growth Scale up the Powder Modernizatio Fizz n of formats portfolio Use digital Extend media to Pudin Hara connect with into Food millennials
Slide 14: Enhance value proposition through Asli Amla Dabur Amla
9.3% FY19 Sales Growth Enhance value proposition through “Asli Amla Dabur Amla” Connect with millennials through launch of premium variants Create moats around Dabur Amla through flanker brands - Brahmi & Sarson Amla Strengthen the core brand through aggressive spends
Slide 15: Extend Dabur Red to premium
22.4% FY19 Sales Growth Increase Extend market Dabur Red share in to premium low formats through put markets Grow rural Connect franchise digitally through with LUPs Millennials
Slide 16: Scale up the Vatika franchise in India
15% FY19 Sales Growth Scale up the Vatika franchise in India Launching Ayurvedic variants Cross-pollinating international portfolio to India Extend distribution beyond South India
Slide 17: Increase penetration and grow the category
9.3% FY19 Sales Growth Increase penetration and grow the category New products for premiumization Entering the fruit drinks segment Reducing sugar level across the portfolio
Slide 18: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 19: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 20: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 21: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 22: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 23: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 24: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 25: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 26: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 27: Driving Innovation and Renovation – India: Ethicals
Driving Innovation and Renovation – India Ethicals Dabur Hridayasava Dabur Dadimavaleha Vasant Meha Ras
Slide 28: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 29: Driving Innovation and Renovation – India
Driving Innovation and Renovation – India
Slide 30: Driving Innovation and Renovation – International Business
Driving Innovation and Renovation – International Business New range of Hair Waxes and Hair Vatika Serum in Egypt Olive Oil with Black Castor in South Mousse in Hobby, Turkey Africa ORS Fix-It Range in USA Amla Kids in Egypt Vatika Afro Naturals Range in South Africa
Slide 31: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 32: 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 0.9 FY18 1.0 6.4 FY19 1.1 FY20E 1.2 FY18 FY19
Slide 33: Urban Focus – Modern Trade
Urban Focus Modern Trade MT Business Partners Growing ~15% by 16% Saliency
Slide 34: Urban Focus – E-commerce
Urban Focus E-commerce E-comm Business Partners Growing ~2% by Saliency ~50%
Slide 35: Rural Focus
Rural Focus Portfolio as per Consumer Increasing Reach Building Rural Infrastructure Preferences 55,000 48,103 ~1,400 41,473 44,068 Rural Sales Force 45% FY19 Contribution to Sales FY18 FY19 Q1 FY20 FY20E 394 Increasing Village Coverage Super stockists 12,333 Sub-stockists (663 added in Q1) Focus on
Slide 36: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 37: Our Manufacturing Footprint in India
Our Manufacturing Footprint in India Baddi Sahibabad Jammu ` Tezpur Alwar Pantnagar Newai Katni Narendrapur Silvasa Nasik Pithampur
Slide 38: Our Manufacturing Footprint in India
Our Manufacturing Footprint in India Pantnagar Tezpur Baddi
Slide 39: Our Manufacturing Locations Strategy basis FTAs - International
Planning OurManufacturing LocationsStrategy Manufacturing basis FTAs - International Turkey EU Egypt COMESA US NAFTA (3P) Nigeria ECOWAS UAE GCC + GAFTA South Africa SADC 8 manufacturing locations From centralized manufacturing to localized manufacturing for speed and flexibility
Slide 40: Our Manufacturing Footprint Overseas
Our Manufacturing Footprint Overseas UAE Egypt Nigeria South Africa Turkey Sri Lanka Bangladesh Nepal
Slide 41: Supply Chain Transformation – Project Lakshya
Supply Chain Transformation – Project Lakshya Range Availability at C&FA Level Number of C&FAs Improve range 92% 32 availability and service levels 28 78% Baseline Mar'19 Baseline Mar'19 Reduce Logistics Costs Modern Trade Fill Rates (OTIFs) Days of Inventory - India Business 94% 46 42 87% Reduce Fi
Slide 42: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 43: Capability Building
Capability Building Creating a Matrix Organisation Strengthening the Team E-Comm Team Sales Healthcare Head Operations Marketing Shared Goals OTC Head across Functions Marketing Trade Ayurveda Head Services Marketing DRDC Digital Head
Slide 44: Capability – Improving Gender Diversity
Capability – Improving Gender Diversity Female employees in India (in %) 45% 25% 22% 16% 14% On-roll Parlour Management Research Marketing Finance Promoters Trainees Function Department Department
Slide 45: Our IT Capabilities
Our IT Capabilities Migrated to Shifting ERP SAP HANA Forecasting Upgradation and BW tool to SAP HANA IBP Upgrading Using Upgrading Distributor Tableau to Sales Force Management create virtual Automation System dashboards (SFA) (DMS)
Slide 46: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Brands Driving Innovation Distribution Strategy and Renovation Expansion Manufacturing Capability Sustainability Focus Excellence Enhancement
Slide 47: CSR – Key Focus Areas
CSR – Key Focus Areas 2% of Eradicating Hunger, Poverty and profits Malnutrition spent on CSR Preventive Healthcare Promoting Biodiversity Women Empowerment & Skill Development Environment Sustainability
Slide 48: Eradicating Hunger, Poverty and Malnutrition
Eradicating Hunger, Poverty and Malnutrition Over 5 mn packs of Real juices distributed
Slide 49: Preventive Healthcare
Preventive Healthcare Constructed around 4,000 household toilets till date 10,000 Ragpickers benefitted from a full-time 42 villages ‘Open Defecation Free’ Health Post in their community
Slide 50: Promoting Biodiversity
Promoting Biodiversity 15 lakh saplings planted Over 6,000 acres under cultivation of rare herbs Over 3,000 farmer beneficiaries of our buyback programme
Slide 51: Women Empowerment & Skill Development
Women Empowerment & Skill Development Vocational training to over 6,000 women in tailoring, beauticians and computer education
Slide 52: Environment Sustainability – Plastic Waste Management
Environment Sustainability – Plastic Waste Management Target to become plastic waste free company by FY21 20% Plastic waste generated by Dabur collected and processed/ recycled in FY 2018-19 This will be increased to 60% in 2019-20 and 100% by 2020-21
Slide 53: 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 54: Remaining dedicated to the Health and Well-Being of every Household
Remaining dedicated to the Health and Well-Being of every Household…
Slide 55: Thank You
Thank You Is