GICS Industry : Personal Products l Sub Industry : Personal Products l Website : www.dabur.

com

Dabur India Ltd

Key Stock Indicators
NSE Ticker : Bloomberg Ticker : Face value / Share: Div. Yield (%): DABUR DABUR:IN 1.0 1.9 CMP (as on 17 Feb 2011 Rs/Share): 52-weekrange up to 17 Feb 2011 (rs)(H/L): Market Cap as on 17 Feb 2011 (Rs Mn): Enterprise Value as on 17 Feb 2011 (Rs Mn): Div. Yield (%): 0.0 100.2 215.90/90.75 174,333 174,157 Shares outstanding (mn) : Free Float (%) : Average daily volumes (12 months) : Beta (2 year) : 1740.7 31.3 1,209,376 0.5

Dabur India Limited (DIL) was incorporated in 1975 for manufacture of high-grade edible and industrial guargum powder and its sophisticated derivatives. It is one of the leading FMCG companies in India and the world's largest Ayurvedic and natural healthcare companies. Operations are divided into 3 segments: Consumer care, consumer health and international business

Key Financial Indicators

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m. : Not meaningful

KEY HIGHLIGHTS
New plants, acquisitions and new products launched in FY10 In FY10, the company commissioned a manufacturing facility at Baddi in Himachal Pradesh. It also completed the acquisition of Fem Care Pharma Ltd, which added ~3.5% to the top-line. DIL launched a host of new brands and products in FY10, including the Dabur Uveda range of Ayurvedic skin care products. The other major launch of the year was the Ral Burrst range of fruit-based beverages available in 4 variants. The company also introduced 2 new light hair oil brands Vatika Enriched Almond hair oil and Dabur Amla Flower Magic hair oil to expand its presence in the light hair oils category. Strong market presence and brand equity DIL markets products in more than 60 countries. The company has a strong market position, backed by products with good brand appeal, such as Dabur Chyawanprash (61% share in the chyawanprash market), Dabur Lal Danth Manjan and Dabur Red Toothpaste (13% share in oral care), and Dabur Amla, Vatika and Anmol (16% share in hair oils). Dabur is also the market leader in the fruit juice segment with 55% share through its Real and Active brands. In the digestives segment too, it holds 55% market share, with brands like Hajmola. Furthermore, Dabur is one of the largest producers of ayurvedic drugs in India and the world, a niche segment marked by the presence of a few national and numerous unorganised sector players. Wide distribution network DILs overseas business has, over the years, transformed from being a small operation into a multilocation business spanning and marketing its products in 60 countries all over the world, including the US, the Middle East, North and West Africa, South Asia and Europe. The overseas business has been growing at a CAGR of 36% for the past 6 years and today accounts for almost 20% of DILs sales. In India, the company has a wide distribution network covering 2.8 million (mn) retailers across the country and more than 5,000 distributors. For healthcare products, the company has a reach of 200,000 chemists, ~12,000 vaidyas and 12,000 ayurvedic pharmacies.

Mar-08 23,831.3 18.0 2,902.2 12.2 0.2 3.4 33.0 16.8 51.8 58.0 22.3

Mar-09 28,298.8 17.5 3,900.9 13.8 0.3 4.5 22.0 11.0 53.8 57.9 17.5

Mar-10 34,112.2 19.1 4,981.1 14.6 0.2 5.7 17.4 9.6 56.3 59.3 13.3

Shareholding (As on September 30, 2010)

FII 16% DII 8%

Others 7%

Promoter 69%

Indexed price chart

(index) 140 120 100 80 60 ('000) 8000 7000 6000 5000 4000 3000 2000 1000 0 Nov-10 Apr-10 Mar-10 May-10 Dec-10 Aug-10 Sep-10 Oct-10 Jun-10 Jul-10 Jan-11 NIFTY

KEY RISKS

Rising cost of raw material, transport and storage Competitive market conditions and new entrants to the market Inflationary pressures and other factors affecting demand for products

Stock Performances vis--vis market

Returns (%) YTD DABUR NIFTY
Note: 1) YTD returns are since Apr 01, 2010 to Feb 17, 2011. 2) 1-m, 3-m and 12-m returns are up to Feb 17, 2011.

40 20 Feb-10

1-m 1 -3

3-m 4 -10

12-m 19 14

26 4

Volumes (RHS)

DABUR

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Dabur India Ltd

BACKGROUND
DIL was established as a private limited company in 1936, even though its founder, Dr S K Burman, laid the foundation with a small shop in Calcutta in 1884. DIL is one of the leading FMCG companies in India and the world's largest Ayurvedic and natural healthcare company; Dabur is today among India's most trusted names. The company's FMCG portfolio includes 5 flagship brands with distinct brand identities, with Dabur as the master brand for natural healthcare products, Vatika for premium personal care products, Anmol for affordable personal care products, Hajmola for digestives and Real for fruit-based drinks. In 2005, DIL acquired 3 companies of the Balsara group for Rs 1.43 billion (bn), along with the brands Promise, Babool, and Meswak in oral care and Odomos, Odonil, and Odopic in home care. In 2009, DIL acquired Fem Care Pharma Ltd for Rs 2.6 bn. DILs business structure is divided into 3 segments: Consumer care, which contributes ~71% to total revenues, consumer health, which contributes ~8% and international business, which accounts for ~20%. DIL has 17 world-class manufacturing plants catering to needs of diverse markets. The company markets its products in more than 60 countries across the world.

COMPETITIVE POSITION
Peer Comparison

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m: Not meaningful

Dabur India Ltd Mar-10 34,112.2 19.1 4,981.1 14.6 0.2 5.7 17.4 9.6 56.3 59.3 13.3

Colgate-Palmolive (India) Ltd. Mar-10 20,192.4 24.3 4,232.6 21.0 0.0 29.6 27.9 27.3 183.6 179.8 22.2

Godrej Consumer Products Ltd. Mar-10 12,791.6 22.2 2,481.2 19.4 0.0 11.6 30.3 7.2 35.6 30.1 39.5

Marico Ltd. Mar-10 20,164.2 16.1 2,350.2 11.7 0.7 3.9 31.8 10.4 33.0 44.2 24.6

FINANCIAL PROFILE
Significant increase in top-line and operating margin

Key Financial Indicators Units Revenue Rs mi ll ion Rs mi ll ion Per cent Per cent Per cent Times Per cent Per cent EBITDA ma rgins Per cent PAT PAT ma rgins EBITDA growth PAT growth Gea ring RoCE RoE

Mar-08
23,831.3 18.0 2,902.2 12.2 15.8 21.1 3.3 0.2 51.8 58.0

Mar-09
28,298.8 17.5 3,900.9 13.8 18.7 15.0 34.4 0.3 53.8 57.9

Mar-10
34,112.2 19.1 4,981.1 14.6 20.5 31.7 27.7 0.2 56.3 59.3

Consolidated sales increased by 20.6% to Rs 34.1 bn in FY10, from Rs 28.2 bn in FY09, mainly due to strong double-digit volume growth. The acquisition of Fem Care Pharma Ltd during the year contributed to a 3.5% increase in sales. Operating margin expanded by 160 basis points to 19.1% in FY10 from 17.5% in FY09, due to lower input costs. PAT consequently rose by ~28% to Rs 4.9 bn in FY10 vis--vis Rs 3.9 bn in FY09 principally due to higher operating profits and lower interest expense

Revenue growth Per cent

INDUSTRY PROFILE
FMCG Despite the global economic slowdown experienced over the last year, India's Fast Moving Consumer Goods (FMCG) sector has continued to show robust growth. The FMCG segment includes products like soaps, detergents, oral care, hair care and skin care products. India's FMCG market can be divided into two segments - urban and rural. The urban segment is characterized by high penetration levels and high spending propensity of the urban resident. The rural economy is largely agrarian - directly or indirectly dependent on agriculture as a means of livelihood with relatively lower levels of penetration and a large unorganized sector. In the recent past the government has focused upon development in the rural sector. This includes investments in development of infrastructure and schemes for job creation (such as NREGA). This is resulting in a rise in disposable incomes levels in the rural economy and consequently in demand for FMCGs. The demand is increasing by 18% in the rural areas and by 11% in urban areas. Over 300 million people are expected to move up from the category of rural poor to rural lower middle class between 2005 and 2025 and rural consumption levels are expected to rise to the current levels in urban India by 2017. The FMCG environment in India and overseas is competition intensive and companies need to focus on branding, product development, distribution and innovation to ensure their survival. Product innovations help to gain market share while advertising and sales promotions create visibility for the product.

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Dabur India Ltd

ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio Mar-08 3,848.0 -499.0 364.3 1,629.3 5,342.6 -1,225.3 -1,230.2 Mar-09 4,470.6 -503.6 448.6 -289.8 4,125.8 -1,387.7 -1,432.5 Mar-10 6,025.2 -989.1 502.7 49.1 5,587.9 -1,678.3 828.6 Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Dividend per share (Rs) BV (Rs) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days) Mar-08 15.8 21.1 3.3 18.0 15.6 12.2 44.7 1.5 6.6 58.0 51.8 0.2 25.6 0.2 3.9 1.2 99 Mar-09 18.7 15.0 34.4 17.5 12.7 13.8 38.8 1.8 9.0 57.9 53.8 0.3 21.3 0.5 4.1 1.0 101 Mar-10 20.5 31.7 27.7 19.1 15.9 14.6 34.9 2.0 10.4 59.3 56.3 0.2 52.8 0.3 4.1 1.3 92

Mar-08 23,597.1 23,831.3 4,294.3 18.0 364.3 168.0 86.0 3,189.4 2,902.2 12.2 864.0 3.4

Mar-09 28,044.1 28,298.8 4,940.0 17.5 448.6 232.1 211.3 4,441.3 3,900.9 13.8 865.1 4.5

Mar-10 33,882.9 34,112.2 6,506.5 19.1 502.7 123.2 144.6 6,007.4 4,981.1 14.6 867.6 5.7

Mar-08 864.0 4,828.1 5,692.1 32.7 106.7 877.9 984.7 4,586.6 1,464.8 12,760.9 6,380.0 4,260.9 2,037.2 6,462.9 1,723.2 3,024.8 765.7 12,761.0

Mar-09 865.1 6,911.4 7,776.5 69.5 44.9 2,219.3 2,264.1 4,828.3 1,609.1 16,547.5 7,500.4 5,220.7 3,469.7 7,857.1 1,778.8 3,754.7 1,484.3 16,547.5

Mar-10 869.0 8,146.2 9,015.2 106.7 151.8 1,595.3 1,747.1 4,715.2 2,113.9 17,698.1 9,341.0 6,418.4 2,641.1 8,638.6 1,198.4 4,262.2 1,923.1 17,698.1

Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries)

-2,455.5 52.2 -608.9 -1,516.3 -655.2

-2,820.2 53.6 1,279.5 -1,771.2 -149.0

-849.7 -136.7 -517.0 -2,031.0 -1,614.5

Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

-2,728.2 158.9 606.7 765.7

-587.1 718.5 765.7 1,484.3

-4,299.2 439.0 1,484.3 1,923.1

QUARTERLY RESULTS
Profit and loss account (Rs million) No of Months Revenue EBITDA Interes t Depreci a tion PBT PAT Dec-10 3 10,888.3 2,189.0 53.7 237.9 1,897.4 1,540.5 100.0 20.1 0.5 2.2 17.4 14.1 % of Rev Dec-09 % of Rev 3 9,321.1 1,832.5 37.2 145.6 1,649.7 1,378.4 100.0 19.7 0.4 1.6 17.7 14.8 Sep-10 3 9,895.1 2,195.8 45.9 189.6 1,960.3 1,604.3 100.0 22.2 0.5 1.9 19.8 16.2 % of Rev Dec-10 % of Rev 9 30,107.2 5,911.0 144.3 572.1 5,194.6 4,218.8 100.0 19.6 0.5 1.9 17.3 14.0 Dec-09 9 25,413.5 4,955.2 106.9 408.3 4,440.0 3,691.3 100.0 19.5 0.4 1.6 17.5 14.5 % of Rev

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Dabur India Ltd

FOCUS CHARTS & TABLES
Rs mn 12,000 10,000 8,000 6,000 4,000 2,000 0 Dec-08 Dec-09 Mar-08 Mar-09 Mar-10 Dec-10 Sep-08 Sep-09 Sep-10 Jun-08 Jun-09 Jun-10 10 5 0

Quarterly sales & y-o-y growth

Per cent 25 20 15

Rs mn 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Jun-08 Mar-08

Quarterly PAT & y-o-y growth

Per cent 35 30 25 20 15 10 5 0

Dec-08

Dec-09

Mar-09

Sales

Sales growth y-o-y (RHS)

Net Profit

Net profit growth y-o-y (RHS)

Rs/share 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Dec-08

EPS

Per cent 25 20 15 10 5 0

Movement in operating and net margins

Dec-08

Dec-09

Mar-10

Mar-08

Mar-09

Dec-09

Mar-08

Mar-09

Mar-10

Dec-10

Sep-08

Sep-09

Sep-10

Jun-08

Jun-09

Jun-10

OPM

Mar-10

NPM

Shareholding Pattern (Per cent) Mar 2010 Jun 2010 Promoter 69.0 68.9 FII 14.3 14.8 DII 10.0 10.0 Others 6.8 6.3

Sep 2010 68.7 16.2 8.1 7.0

Dec 2010 68.7 16.4 7.8 7.1

B oard of D irectors D irector N am e An a n d Ch a n d B u rm a n (D r.) R a vi n d ra Ch a n d ra B h a rg a va (M r.) Am i t B u rm a n (M r.) M o h i t V i ve k B u rm a n (M r.) Pra d i p B u rm a n (M r.) Aja y D u a (D r.) S u n i l D u g g a l (M r.) Pri ta m D a s N a ra n g (M r.) S u b b a ra m a n N a ra ya n (D r.) Al b e rt W i s e m a n Pa te rs o n (M r.) V i ja y N a ta ra ja s a rm a Pa tta m a d a i (M r.) An a l ji t S i n g h (M r.)

D esig nation N o n -Exe cu ti ve Ch a i rm a n , Pro m o te rD i re cto r, N o n -Exe cu ti ve D i re cto r N o n -Exe cu ti ve D i re cto r N o n -Exe cu ti ve D i re cto r, Pro m o te rD i re cto r N o n -Exe cu ti ve D i re cto r, Pro m o te rD i re cto r Pro m o te r-D i re cto r N o n -Exe cu ti ve D i re cto r W h o l e ti m e D i re cto r W h o l e ti m e D i re cto r N o n -Exe cu ti ve D i re cto r N o n -Exe cu ti ve D i re cto r N o n -Exe cu ti ve D i re cto r N o n -Exe cu ti ve D i re cto r

Additional Disclosure This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT). Disclaimer This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact 'Client Servicing' at +91-22-33423561, or via e-mail: clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4

Dec-10

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