Dabur India Limited

Corporate Profile
March 2013

1
1

Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance

2
2

Dabur India: Overview

9

Established
E
t bli h d iin 1884 - more than
th
125
Years of Trust & Excellence

Among top 4 FMCG companies in India

g
in Ayurveda
y
and natural
Worlds largest
healthcare

Revenue of Rs. 53.2 billion and profits of

Rs. 6.4 billion in FY2011-12

Strong brand equity

Dabur is a household brand

Vatika and Real are Superbrands

Hajmola , Real & Dabur ranked among

Indias Most Admired Brands

12 Brands with sales of over Rs. 1 billion

each

g
distribution networks
One of the largest
covering 5.8 million retailers across India

17 world class manufacturing plants

catering to needs of diverse markets

Strong overseas presence with c.

c 30%
contribution to consolidated sales

Twelve
l
Billion
illi
Rupee Brands
d

Dabur ranked as
Most Trusted
HealthCare,
Ayurveda brand in
India

Dabur moves up
15 places, ranked
186 in Fortune
India 500 list

Dabur has surpassed the US$ 1 billion mark in revenues

Ranked
amongst Top
100 Most
Exciting Brands
in India

3
3

Dabur: Vision and Core Values

Vision

Dedicated to the health and well being of every household

Ownership

Passion for
Winning

Integrity

Core
Values
Innovation

Team Work

People
Development

Consumer
Focus

4
4

Key Milestones
1884

1972

1986

Dr. SK Burman
started an Ayurvedic
Pharmacy in Kolkatta

The company
shifted base to
Delhi from Kolkata

Registered as
Public Limited
Company

1994

1998

2003

Listed on the
B
Bombay
b
Stock
St k
Exchange

Professionalized with
B
Burman
Family
F
il handing
h di
over day to
management

Pharmaceutical Business
d
de-merged
d to
t focus
f
on core
FMCG business

2004

2005

2006

International
Business set up in
Dubai to tap overseas
opportunity

Acquired Balsara
strengthening Oral
care & gaining entry
into Home care

Dabur Figured in Top

10 Great Places To
Work

2008

2010

2012

Acquired Fem Care

Pharma entering
mainstream Skin care

Overseas acquisitions -

Crossed Rs. 50 bn
mark in annual
revenues and Market
Cap of c. US$4 billion

p, Turkey
y and
Hobi Group,
Namaste Laboratories, US

5
5

Performance at a Glance (5 years)

NetSales

Sales (Rs. billion)

Net Profit (Rs. billion)

6.5
52.8

5.7
5.0

40.8
28.1

3.9

33.9

3.3

23.6

FY08

FY09

FY10

FY11

FY12

EBITDA (Rs.
(R billion)
billi )

FY08

FY09

FY10

FY11

FY12

Sh
Shareholders
h ld
F
Funds
d (R
(Rs. billion)
billi )
9.5
17.2

8.3
13.9

6.7
4.4

5.2
8.2

9.3

6.2

FY08

FY09

FY10

FY11

FY12

FY08

FY09

FY10

FY11

FY12

6
6

Global Footprint

Distribution Overview
Factory
Depot

Stockists

(Carry & Forward Agents)

Insti Stockists

Super stockists
Modern Trade
Stockist

Wholesalers

Retail trade

Military / CSD

Sub stockists

Rural trade

Shoppers & Consumers

Unit Canteens

Insti customers
Direct reach
0.8 mn outlets

3rd largest distribution network with a total reach of 5.8 mn retail outlets
8

Research & Development Focus

Team of scientists including
Ayurvedic doctors, Pharmacists,
Agronomists, Botanists, Tissue
Culture specialists, etc.

Strong New Product Development

9 Ayurvedic Medicines
9 Personal Care
9 Foods
9 Home Care

Agro Biotech Initiatives

9 OTC Healthcare

9 Protecting endangered herbs

9 Technical assistance to farmers
9 Contract cultivation of herbs
9 Green House at Nepal
Dabur Research Facilities

Agronomy Initiatives : Greenhouse at

Dabur Nepal & Uttaranchal

9
9

Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance

10
10

FMCG Industry Snapshot

FMCG Industry Size (in Rs. bn)

FMCG Industry Urban (in Rs. bn)

2,500
2,000

1,626

1 895
1,895

1,200

1,500
1,000
500
0

MATSep'11

MATSep'12

1 262
1,262

1 400
1,400

1,082

FMCG Industry Rural (in Rs. bn)

800
700
600

1,000

500

800

400

600

300

400

200

200

100

MATSep'11

MATSep'12

544

MATSep'11

633

MATSep'12
Source:ACNielsen

Overview
9 FMCG sector in India continues to grow well in both urban and rural areas. Rural
India contributes to c.
c one third of FMCG sales in India
9 Growth driven by increasing consumption led by rise in incomes, changing
lifestyles and favorable demographics
9 As per a study conducted by Booz & Company, FMCG sector is expected to grow
in the range of 12% to 17% upto 2020 and would touch a market size between of
Rs. 4,000 to Rs. 6,200 billion by 2020
11
11

Penetration Levels: Sufficient Headroom

RuralPenetration

UrbanPenetration

90%
80%

80%

77%

67%

70%

50%

59%

57%

60%

42%

40%

37%

32%
26%

30%

18%

20%

19%

18%

10%

3%

2%

5%

4%

0%

Toothpaste

Shampoo

HairOil

SkinCream

Mosquito
Repellants

Instant
Noodles

HairDyes

FloorCleaners

Source:Industrydata

9 Low penetration levels offer room for growth across consumption categories
9 Rural penetration still lower but catching up with urban penetration levels

12
12

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

77
7.7

7.4

27
2.7

3
2.5

2.4

7
2

6
5
4

1.5

3.2

1.1

1.0

3
2

0.8

0.3

0.5

0.3

China

Indonesia

India

Malaysia

China

Thailand

Indonesia

India

Malaysia

Thailand

Toothpaste Per Capita Consumption (in US$)

in
US$
3.5

2.9

3
2.5

20
2.0

2
1.5
1

1.0
0.5

0.4

0.5
0

China

Indonesia

India

Malaysia

Thailand

Source: MOSL

13
13

Key Players: FMCG

in Rs.
Rs million
Company

Key Categories

Sales

Profit

Market Cap

Hindustan Unilever Ltd

Soaps, Detergents,
Personal Care,
Care Foods

229,877
,

27,907
,

975,094
,

Nestle India Ltd*

Food, Beverages, Infant

nutrition

83,023

10,679

455,564

Dabur India Ltd

Health Care,, Personal

Care, Homecare, Foods

52 832
52,832

6 449
6,449

233 640
233,640

Godrej Consumer

Hair Care, Soaps

48,509

7,267

248,455

Colgate Palmolive (I) Ltd

Oral Care & Toiletries

26,239

4,465

184,447

Glaxo Smithkline Consumer*

Consumer Health Care

30,794

4,368

177,802

Marico Ltd.

Hair care, Food, Skincare

39,968

3,171

140,394

Britannia Industries Ltd

Biscuits

54,607

1,995

59,422

Procter & Gamble Hygiene

and Health Care^

Feminine Hygiene,
personal care

12,947

1,813

81,151

Source: Published results for year ending 31.03.12

Market Cap
Cap. as of March 5
5, 2013

*Year ending 31.12.12

^Year ending 30.06.12

14
14

Dabur: Strong Presence in FMCG Categories

Category

Position

Market Share

Key Brands

Hair Care

12%

Dabur Amla hair Oil, Vatika hair oil &

Vatika Shampoos

Oral Care

13%

Red toothpaste, Babool, Meswak, Red

toothpowder

Ayurvedic
Tonics

67%

Dabur Chyawanprash

Digestives

56%

Hajmola

Fruit Juices

55%

Real Fruit Juices, Real Activ

Honey

50%

Dabur Honey

Glucose

25%

Dabur Glucose

Skin Care
(Bleaches)

50%

Fem

Air Freshener

40%

Odonil

Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives

15
15

Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance

16
16

Business Structure
Dabur India
Limited

International
Business (30.3%)

Domestic Business
(69.7%)

Consumer
Care
(56 0%)
(56.0%)

Foods
(10.1%)
(
)

Retail
(0.8%)
(
)

Others*
(2.7%)
(
)

Dabur
International
(17 5%)
(17.5%)

Hobi
Group
(2 6%)
(2.6%)

Namaste
Labs. LLC
(10 3%)
(10.3%)

Note: % figure in brackets indicate % share in Consolidated Sales for FY12

*OthersincludesCommodityExportsetc

17
17

Consumer Care Overview

Category-wise Share of Consumer Care Sales

OralCare
17%

SkinCare
6%
HomeCare
6%

HairCare
30%

Health
Supplements
21%

Digestives
8%

OTC&Ethicals
12%

9 Hair Care is the largest category and contributes to 29% of Consumer Care sales
9 Health Supplements contribute to 22% of Consumer Care sales
9 Oral Care, comprising toothpastes and toothpowders contributes to 18% of
Consumer Care sales

Note: Percentage share based on revenue for FY12

18
18

Consumer Care Categories

Hair Oils
Key Brands

#2 player in
Hair Oils

Dabur Amla:
Largest brand in
the portfolio

Vatika: Value added

coconut oil

Almond Hair Oil

Shampoo
Key Brands

#4 player in
Shampoos

Vatika range of shampoos

19
19

Consumer Care Categories

Oral Care
Key Brands

#3 player in
Toothpastes

#2 player in
Toothpowder

Dabur Red: Toothpaste

& Toothpowder

Babool: Targeted at
economy segment

Meswak: Premium
therapeutic
toothpaste

Skin Care
Key Brands

#1 player
l
in
i
Skin Care
(Bleaches)
Fem range of Bleaches

Gulabari
G
l b i range off
rose based skin
care products

Uveda:
U
d Range
R
off
Ayurvedic Skin
Care
20
20

Consumer Care Categories

Home Care
Key Brands

#1 player in Air
Fresheners
#1 p
player
y
in
Mosquito Repellant
Creams
#2 player
l
in
i Toilet
T il t
Cleaners

Odonil: Air freshner

range: Largest
L
t brand
b
d
in the portfolio

Odomos: Mosquito
repellant
ll t skin
ki cream

Sanifresh:
Toilet cleaner

9Odonil became one of the Billion Rupee Brands during 2011-12

21
21

Consumer Care Categories

H lth Supplements
Health
S
l
t
Key Brands

#1 player in
Ayurvedic
y
Tonics
#2 player in
Glucose
#1 player in
branded Honey

Dabur Chyawanprash:
Largest selling health
supplement in the
country

Dabur Glucose:
2nd largest
player in the
country

Dabur Honey: Largest

branded honey in the
country

Digestives
Key Brands

#1 player in
Herbal
Digestives
Hajmola: Flagship brand
for branded Digestives

Hajmola tasty
digestive candy
22
22

Consumer Care Categories

OTC and
d Ethicals
Ethi l
9 Repository of Daburs Ayurvedic Healthcare knowledge
9 Range of over 260 products
9 Focusing on multiple therapeutic areas
9 Focus on growing the OTC Health-Care portfolio aggressively

Key OTC Brands

Lal Tail

Honitus

Janma Ghunti

Dashmularishta

Ashokarishta
23
23

Foods Business
9 Foods portfolio comprises Juices and Culinary range
9 Juices are under the brands Real, Activ and Burrst
9 Culinary range is under Hommade brand
9 Foods business has surpassed the Rs. 5 billion mark in sales

Foods
Key Brands

#1 player in
Fruit Juices

Real:
R
l Fl
Flagship
hi
beverages brand

Real Activ: Range

of 100% pure juice

24
24

International Business
Started as an
Exporter
Focus on Order
fulfillment through
India Mfg.

1980s

Set up a franchisee at
Dubai in 1989
Demand generation
led to setting up of
mfg in Dubai & Egypt

Renamed franchisee as Dabur

International Ltd
Local operations further strengthened
Set up new mfg facilities in Nigeria,RAK
& Bangladesh

Early 90s

2003 Onwards

Highlights

Dabur s overseas business contributes c.

Daburs
c
30% to consolidated sales led by CAGR of
32% in last 6 years
Focus markets:
GCC
Egypt
E
t
Nigeria
Turkey
Bangladesh
Nepal
p
U.S.
High level of localization of manufacturing
and sales and marketing
Leveraging the Natural preference among
local consumers to increase share in personal
care categories
Sustained investments in brand building and
marketing

Building scale
scale- c.
c 30% of
Consol. Sales
High Levels of Localization
Global Supply chain

Today

High Growth in IBD

18000

in Rs
Rs. million

16,161

16000
14000
12000

8,922

10000
8000
6000
4000
2000

2,258 2,917
1,281 1,807

3 760
3,760

4,770
,

6,025

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

International Sales Breakdown (FY12)

25
25

Africa and Middle East Overview

Real GDP Growth Rates (YoY) in %

Source: IMF

Africas Bulging Base

Source: McKinsey on Africa, June 2010

9 Middle East and Africa have witnessed stable GDP growth rates
9 Between 2005 and 2015, it is estimated that in Africa, the share of individuals earning
above US$1,000 will grow from 39% to 55%.
9 The rapidly emerging African middle class could number as many as 300 million, out of a
total population of one billion
9 The sheer volumes and the growth in the number of aspirational consumers with
disposable income creates huge opportunities for consumer products companies
26
26

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 Hobi manufactures and markets hair, skin and
body care products under the brands Hobby
and New Era
9 Product
range
of
the
company
complementary to our product range

is

9 Acquisition provides an entry into another

attractive emerging market and a good
platform to leverage this across the region

27
27

Acquisition of Namaste Laboratories

9 Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake
in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011
9 Namast is a leading ethnic hair care products company, having products for women of
colour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and African
markets
9 The company markets a portfolio of hair care products under the brand Organic Root
Stimulator and has a strong presence in ethnic hair care market for women of colour.
9 Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5
billion and tap into significant market opportunity in the fast growing,
growing hugely populated (~1
Bn) yet highly underpenetrated consumer markets of Sub Saharan Africa
9 We intend to grow the non U.S. business ahead of U.S. business and are taking initiatives in
this direction
9 We have commenced local manufacturing for Namaste at our RAK facility in UAE

28
28

Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance

29
29

Growth Strategy
Three pronged Growth Strategy
Expand

Innovate

Acquire

Our differentiation is the herbal and ayurvedic platform

Expand
9 Strengthening presence in existing categories and markets as well entering new geographies
9 Maintain dominant share in categories where we are category builders like Health Supplements,
Honey etc. and expand market shares in other categories
9 Calibrated international expansion
p
local manufacturing
g and supply
pp y chain to enhance flexibility
y
/ reduce response time to change in market demands
Innovate
9 Strong focus on innovation. Have rolled out new variants & products which have contributed to
around 5
5-6%
6% of our growth p.a.
9 Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste)
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 markets
30
30

Recent Launches - India

Babool: Salt Variant

Thirty Plus

Activ: Banana Strawberry and

Green Apple Punch Variants

Odonil Gels

Gulabari: Saffron &

Turmeric
Cold Cream
Gulabari: Moisturizing Lotion

Fem: Saffron and Pearl Variants

31

31
31

Recent Launches - International

Vatika Enriched
Hair Oil Black
Seed

Vatika Henna Hair

Color

Dabur Medicated
Toothpaste

Vatika
Professional
Range
g

Curls Unleashed Range

32

32
32

Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance

33
33

Recent Financial Performance

Revenue
(inRs.Cr.)

EBITDA
(inRs.Cr.)

PAT*
(inRs.Cr.)

* After minority interest

Consolidated Sales grew by 17.7% during

9MFY13
Sales growth was a combination of volume
growth, price increases and translation gains

EBITDA increased by 17.6%

17 6% and EBITDA margin
was steady at 18.0% in 9MFY13
Material costs eased, with material costs at
49.4% of sales in 9MFY13 v/s 51.2% in 9MFY12
Adpro
d
increased
d to 14.0% in 9MFY13 v/s
/ 12.2%
in 9MFY12
Ab
Above factors
f t
t
translated
l t d into
i t growth
th off 18.7%
18 7%
in Consolidated PAT
PAT Margins were steady at 12.2% in 9MFY13

34
34

Market Cap & Shareholding

Market Cap (Rs. Million)

Shareholding Structure*

231,800

DIIs,5.1%

Others,
6.6%

FIIs 19 6%
FIIs,19.6%

137,997
22,403

31,760

Mar2000

Mar2005

Promoters,
68.7%

Mar2010

Feb2013
*As of Dec 31, 2012

Daburhaswitnessedexponentialincreaseinmarketcapitalizationovertheyears
Atpresent,DaburhasamarketcapofINR234billion(asofMarch5,2013)

35
35

Consolidated P&L
IInRs.mn
R
NetSales
OtherOperatingIncome
MaterialCost
%ofSales
EmployeeCosts
%ofSales
AdPro
%ofSales
OtherExpenses
%ofSales
OtherNonOperatingIncome
EBITDA
%ofSales
InterestExp.andFin.Charges
Depreciation&Amortization
ProfitBeforeTax(PBT)
ExceptionalItem
TaxExpenses
ProvisionforTaxationforEarlieryears
PAT(Beforeextraordinaryitem)
%ofSales
ExtraordinaryItem
PAT(AfterextraordinaryItems)
y
((Profit)/Loss
)/
MinorityInterest
PAT(AfterExtraord.item&Min.Int)
%ofSales

Q3FY13
16,307.2
52.6
7,953.6
48.8%
1,229.5
7.5%
2,350.5
14.4%
2,081.1
12.8%
220.3
2,965.4
18.2%
77.8
305.2
2,582.4
0.0
477.5

Q3FY12
14,526.8
46.0
7,404.0
51.0%
1,025.4
7.1%
1,982.4
13.6%
1,851.6
12.7%
167.1
2,476.6
17.0%
182.9
238.5
2,055.1
0.0
336.9

YoY(%)
Y
Y (%)
12.3%

2104.8
12.9%
0.0
2104.8
6.2
2111.1
12.9%

1718.3
11.8%
0.0
1718.3
10.0
1728.3
11.9%

22.5%

7.4%
19.9%
18.6%
12.4%
31.8%
19.7%
57.5%
27.9%
25.7%
41.8%

22.5%
22.1%

9MFY13
46,152.9
171.8
22,794.7
49.4%
3,503.3
7.6%
6,450.6
14.0%
6,006.6
13.0%
715.2
8,284.6
18.0%
439.2
842.4
7,003.0
46.6
1319.5

9MFY12
39,195.9
139.7
20,075.1
51.2%
2,917.9
7.4%
4,774.7
12.2%
4,985.9
12.7%
460.4
7,042.5
18.0%
481.2
739.1
5,822.1
0.0
1086.5

5637.0
12.2%
0.8
5637.8
9.1
5628.7
12.2%

4735.7
12.1%
0.0
4735.7
8.2
4743.9
12.1%

YoY(%)
Y
Y (%)
17.7%
13.5%
20.1%
35.1%
20.5%
55.3%
17.6%
8.7%
14.0%
20.3%
21.4%
#DIV/0!
19.0%

19.0%
18.7%

36
36

Consolidated Statement of Assets and Liabilities

Dabur India Limited
Consolidated Statement of Assets and Liabilities (Amount in Rs
Rs.mn)
mn)
Particulars
As at 31/12/2012 (Unaudited) As at 31/03/2012 (Audited)
EQUITY AND LIABILITIES
1 Shareholders funds
(a) Share capital
1,743
1,742
(b) Reserves and surplus
18,799
15,430
Sub-total - Shareholders
Shareholders' funds
2. Share application money pending
allotment
3. Minority interest
4. Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (net)
(c) Other long-term
long term liabilities
(d) Long-term provisions
Sub-total - Non-current liabilities
5. Current liabilities
(a) Short-term borrowings
(b) Trade payables
(c )Other current liabilities
((d)) Short-term pprovisions
Sub-total - Current liabilities
TOTAL - EQUITY AND LIABILITIES
B ASSETS
1. Non-current assets
(a) Fixed assets
(b) Goodwill on consolidation
(c) Non-current investments
(d) Deferred tax assets (net)
(e) Long-term loans and advances
(f) Other non-current assets
Sub-total - Non-current assets
2 Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short-term loans and advances
(f) Other current assets
Sub-total - Current assets
Total -Assets

20 542
20,542

17 172
17,172

106

30

5,497
322
0
6,569
12,388

6,830
274
0
5,799
12,904

3,728
5,138
8,636
1,579
,
19,082
52,117

3,409
2,581
7,713
2,415
,
16,117
46,223

9,930
7,807
997
0
4,382
1,844
24,960

8,873
7,807
893
0
3,935
1,019
22,527

5,446
7,340
5,836
4,350
3,638
548
27,158
52,118

3,932
8,239
4,617
4,184
2,401
322
23,696
46,223

37
37

Recent Accolades

Dabur has been voted by

consumers as Indian
P
PowerBrand
B
d 2011-2012
2011 2012

Dabur ranked 184 in

the FE-500 list of
India's Finest
Companies

Dabur has been ranked

as the Most Trusted
L d in
Leader
i the
th Healthcare
H lth
category in the Brand
Trust Report 2012

Dabur ranked as No.

2 Most Social Brand
of India,
India in the Social
Media report
launched at Click
Asia Summit 2012

Dabur's greenfield unit in

Baddi awarded LEED
India Silver Rating for
achieving Green Building
Standards

Dabur's Baddi Units

awarded Silver
Certification for
Enhancing
h
Manufacturing
f
& Supply Chain
Excellence, by ETIndia
Manufacturing Excellence
cell

Dabur India Ltd has been

ranked among the Top 10
B t Companies
Best
C
i To
T Work
W k
For in the Manufacturing
sector by Business Today

Dabur ranked 37 in list

of India's Greatest
Wealth Creators 2011.
Dabur has been ranked
30 in the list of India's
Top Employment
Generators by Business
& Economy magazine

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Disclaimer

Some of the statements made in this presentation contain forward looking information that involve a
number of risks and uncertainties.
uncertainties Such statements are based on a number of assumptions,
assumptions estimates,
estimates
projections or plans that are inherently subject to significant risks, as well as uncertainties and
contingencies that are subject to change. Actual results can differ materially from those anticipated in the
Companys forwardlooking statements as a result of a variety of factors, including those set forth from
time to time in the Companys press releases and reports and those set forth from time to time in the
Companys
p y analyst
y calls and discussions. We do not assume anyy obligation
g
to update
p
the forwardlookingg
statements contained in this presentation.
No part of this presentation shall form the basis of or may be relied upon in connection with any contract
or commitment. This presentation is being presented solely for your information and is subject to change
without notice.

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Investor Relations
Dabur India Ltd
Contact:+91-11-42786000

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