Dabur India Limited · NSE:DABUR
Dabur India — 13th CLSA India Forum, Delhi 2010
30 slides from Dabur India's conference presentation, November 2010
Slide 1: Dabur India Limited
DABUR INDIA LIMITED 13th CLSA India Forum, Delhi November 2010 1 1
Slide 2: Economy Overview
ECONOMY OVERVIEW India Real GDP Y-o-Y Growth (%) India Per Capita Income (USD) 3231 0.12 9.4% 9.7% 0.1 9.2% 8.5% 0.08 7.5% 7.4% 6.7% 0.06 5.8% 4.4% 0.04 3.8% 1017 0.02 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY2009 2020 Source : RBI & CSO estimates for FY10 Source : World Bank, Edelweiss
Slide 3: India Consumption Story
INDIA CONSUMPTION STORY Aggregate Consumption across Income Brackets in trillion trillion, Indian Rupees Rupees, 2000 4x 70 34 Middle Class 17 10 7 Middle Class Source : McKinsey Global Institute Analysis By 2025, India is poised to become the world's fifth largest consuming country from current pos
Slide 4: FMCG Industry in India
FMCG INDUSTRY IN INDIA 9 FMCG industry size at US$25 billion in FMCG Industry Size (India) CY09 and expected to grow to US$74 in Rs. billion billion in 2018* 9 Industry has grown at 13.4% in CY09 9 Rural sector accounts for about 33% of total revenue 9 Growth being driven by increasing consumption d
Slide 5: Penetration Levels: Sufficient Headroom
PENETRATION LEVELS: SUFFICIENT HEADROOM 90% 80% 80% 77% 70% 67% 57% 59% 60% 50% 42% 37% 40% 32% 30% 18% 18% 20% 10% 0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito Repellants Rural Penetration Urban Penetration Source: Industry Data, IIFL 9 Low penetration levels offer room for growth across cons
Slide 6: Per Capita Consumption: Room for Growth
PER CAPITA CONSUMPTION: ROOM FOR GROWTH India has low per capita consumption as compared to other emerging economies Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) in US$ in US$ 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.5 4 3.2 1.0 1.1 3 1 2 0.8 0.5 0.3 1 0.3 0 0 Chi
Slide 7: Dabur Overview
DABUR OVERVIEW 9 Established in 1884 : 125 Years of Trust & Ten Billion Rupee Brands Excellence 9 Among top 4 FMCG companies in India 9 World’s largest in Ayurveda and natural healthcare 9 Revenue of Rs.Rs 34 billion and profits of Rs. Rs 5 billion in FY2009-10 9 Strong brand equity Dabur is a hou
Slide 8: Financial Performance
FINANCIAL PERFORMANCE Sales in Rs. million 40000 34,167 35000 28,341 30000 23,963 25000 20,803 17,565 20000 12,004 12,849 12,356 14,170 15000 10,997 10000 5000 0 FY01 FY02 FY03 FY04^ FY05 FY06* FY07 FY08 FY09 FY10** EBITDA Margin (in %) Net Profit in % in Rs. million 22.0% 19 6% 19.6% 6000 20.0% 18.
Slide 9: Portfolio
PORTFOLIO Health Care Personal Care Home Care Foods 9 9
Slide 10: Global Footprint
GLOBAL FOOTPRINT UK Canada Nepal UAE U.S. Egypt B’Desh Nigeria Australia 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 10
Slide 11: Robust Distribution Network
ROBUST DISTRIBUTION NETWORK Factory C&FA (Carry & Forward Agents) St ki t Stockist S Super St Stockist ki t Institutions & Modern trade Wholesalers Sub Stockist RETAIL TRADE CONSUMERS Direct + Indirect Reach covering 2.8 Mn Retail Outlets 11 11
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% Vatika Shampoos Red toothpaste, Babool, Meswak, Red Oral Care 3 13% toothpowder Skin Care 3 7% Dabur Gulabari, Fem, Dabur Uveda Ayurvedic 1 63% Dabur Chyawanprash Tonics Diges
Slide 13: Business Structure
BUSINESS STRUCTURE Dabur operates through three focused Strategic Business Units Revenue Business Unit Description Share FMCG p portfolio comprising p g four distinct businesses: Consumer Care • Personal Care 72% Division • Consumer Health Care • Home Care • Foods Range of ethical and OTC products C
Slide 14: Consumer Care Division Overview
CONSUMER CARE DIVISION OVERVIEW FPD HCPD Balsara Foods FEM 2003-2004 2006-2007 2007-2008 2008-2009 CCD FPD: Family Products Division HCPD: Health Care Products Division Balsara and Fem were acquisitions Foods division was a 100% subsidiary of DIL Category-wise Share of CCD Sales CCD Sales - Historic
Slide 15: Consumer Care Categories: Hair Oil, Shampoo
CONSUMER CARE CATEGORIES Hair Oil Key Brands Market Share 7% 37% 16% 3% 6% 31% Bajaj Dabur Dey's Medical Emami Marico Others Dabur Amla: Vatika: Value added Anmol Hair Oil: Value Share-ACN Share ACN June June, 09 Largest brand in coconut oil Value proposition the portfolio Shampoo Key Brands Market
Slide 16: Consumer Care Categories: Oral Care, Health Supplements
CONSUMER CARE CATEGORIES Oral Care Market Share Key Brands 14.3% 13.2% 49.7% 22.8% Colgate HUL Dabur Others Dabur Red: Toothpaste Babool: Targeted at Meswak: Premium & Toothpowder economy segment therapeutic Value Share Share-ACN ACN March March, 2010 toothpaste Health Supplements Key Brands Chyawan
Slide 17: Consumer Care Categories: Foods, Skin Care
CONSUMER CARE CATEGORIES Foods Key Brands Market Share 13.0% 52.0% 35.0% Dabur Pepsi Others Real: Flagship Real Activ: Range C Company E Est. t MMar, 2010 for f Fruit F it Juice J i category t of 100% pure juice beverages brand Skin Care Market Share* Key Brands 18.0% 58.9% 3.2% 6.4% 6.6% 6.8% Hindu
Slide 18: Consumer Care Categories: Digestives, Home Care
CONSUMER CARE CATEGORIES Digestives Market Share Key Brands 37% 55% 8% Hajmola: Flagship brand Hajmola tasty Hajmola Satmola Others for branded Digestives digestive candy Value a ue Share-ACN S a e C March, a c , 2010 0 0 Home Care Air Fresheners – Market Share Key Brands 20% 26% 5% 20% 30% Odonil A
Slide 19: Consumer Health Division
CONSUMER HEALTH DIVISION Description CHD Structure 9 CHD: Repository of Dabur’s Ayurvedic Healthcare knowledge 9 Plans underway to build a comprehensive O C (64%) OTC (6 %) ETHICAL C (36%) strategy for a greater push in OTC Health 9 Generics 9 Tonic space 9 Range of over 260 products 9 Branded Produ
Slide 20: OTC Health Care Portfolio
OTC HEALTH CARE PORTFOLIO Gastro Intestinal Cough and Cold Rejuvenation Pudin Honitus Shilajit Hara Women’s Health Memory Enhancer Medicated Oils Dabur Shankha Active Pushpi Badam Tail Blood Purifier Baby Care Rubs and Balms Dabur B l Balm Strong 20 20
Slide 21: International Business Division
INTERNATIONAL BUSINESS DIVISION Started as an Set up a franchisee at Renamed franchisee as Dabur Building scale-18% of Exporter Dubai in 1989 International Ltd overall Dabur Sales Focus on Order Demand generation Local operations further strengthened High Levels of Localization fulfi
Slide 22: International Business - Product Portfolio
INTERNATIONAL BUSINESS - PRODUCT PORTFOLIO Existing Products NPDs and Relaunches Vatika Hamam Zaith Hair Oils Vatika Shampoos – Hair Fall Control Vatika Conditioners Dabur Herbal Toothpaste Hair Creams Hair a Treatments eat e ts Vatika Hair Oil V tik DermoViva Vatika D Vi Soaps S 22 22
Slide 23: Our Strategy
OUR STRATEGY Three pronged Growth Strategy Acquire Expand Innovate Our differentiation is the herbal and ayurvedic platform Acquire 9 Acquisitions critical for building scale in existing categories & markets 9 Should be synergistic and make a good strategic fit 9 Target opportunities in our focus ma
Slide 24: Acquisition of Hobi Group, Turkey
ACQUISITION OF HOBI GROUP, TURKEY 9 Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 9 This is Dabur’s first overseas acquisition 9 Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era 9 Product r
Slide 25: Financial Performance – FY2009-10
FINANCIAL PERFORMANCE – FY2009-10 Sales: FY10 v/s FY09 EBITDA Margin: FY10 v/s FY09 in Rs. million 40000 34,167 20.00% 19.6% 28,341 19.50% 30000 19.00% 20000 18 50% 18.50% 18.3% 10000 18.00% 0 17.50% FY09 FY10 FY09 FY10 PAT*: FY10 v/s FY09 9 Sales growth led primarily by continued double digit volum
Slide 26: Financial Performance - H1 and Q2 FY 2010-11
FINANCIAL PERFORMANCE - H1 and Q2 FY 2010-11 Sales: H1FY11 v/s H1FY10 Sales: Q2FY11 v/s Q2FY10 in Rs. Crores in Rs. Crores 1,905 2000 1,628 1200 980 1500 1000 855 800 1000 600 500 400 200 0 0 H1FY10 H1FY11 Q2FY10 Q2FY11 ¾ Sales for H1FY11 increased by 17% and by 14.7% in Q2 FY11 primarily driven by
Slide 27: Stock Performance and Shareholding Pattern
STOCK PERFORMANCE AND SHAREHOLDING PATTERN Market Capitalization in Rs. billion Shareholding Structure* 170 Indian FIIs, 16.4 % Public and Others, 7.0 % / Banks/FIs// Prom oters, 68.7% 17 Insurance Cos., 6.9% Mutual Funds, 0.9 % 2001 2010 *As on October 22, 2010 Dabur’s market capitalization has inc
Slide 28: Consolidated P&L Q2 FY11 and H1 FY11
CONSOLIDATED P&L Q2 FY11 and H1 FY11 In Rs. crores Q2FY11 Q2FY10 YoY (%) H1 FY11 H1FY10 YoY (%) Gross Sales 980.5 854.8 14.7% 1,904.8 1,628.4 17.0% Less: Excise Duty 7.7 7.0 15.6 12.4 Net Sales 972 8 972.8 847 8 847.8 14 7% 14.7% 1 889 3 1,889.3 1 616 1 1,616.1 16 9% 16.9% Other Operating Income 10.
Slide 29: Consolidated Balance Sheet – Sept 30, 2010
CONSOLIDATED BALANCE SHEET – Sept 30, 2010 In Rs. crores As on Sept 10 As on Sept 09 Sources Of Funds Shareholders' Fund: Share Capital 174.1 86.6 Reserves & Surplus 1,037.5 690.7 1,211.1 777.2 Minority Interest 4.5 8.3 Loan Funds: Secured Loans 99.7 99 7 113.3 113 3 Unsecured Loans 235.3 54.1 335.1
Slide 30: Investor Relations
Investor Relations Dabur India Ltd Contact:+91-11-42786000 30 30