5th Motilal Oswal Global Investor Conference

August, 2009

Dabur : Largest Indian Personal & Healthcare Company

Largest Herbal & Natural Portfolio 4500 Distributors in India Retail Reach 2,800,000 5 Umbrella Brands 350+ products 4200 employees 17 Manufacturing Units Significant overseas business in high growth markets
Dabur India Ltd placed in the list of '20 Stocks You Must Own', prepared by Forbes India Dabur ranked 28th in ETBrand Equity Most Trusted Brands 2009 list. Dabur voted by consumers as the fourth Most Liked Health Brand in the country

Eight Billion Rupee Brands

Key financials over the years..

Rs Mn

Sales
28341

KEY FINANCIALS : 2008-09

Market Cap Cash Flow

$ 2.5 Bn Rs.3.6 Bn

30000 25000 20000 15000 10000 5000 0 FY04

Rs Mn
12356

CAGR-18%
20803 17565 14170

23963

EBIDTA Margin 18.3% PAT/Sales RONW 13.8% 48.4%

FY05

FY06

FY07

FY08

FY09

4500 4000 3500 3000 2500 2000 1500 1000 500 0 FY04
1065

Net Income
CAGR-30%
2142 1558 3329 2817

3913

EBITDA Margin
22 20 18 16 14 12 10 13.3 15.3 17.1 18.1 18.5 18.3

FY05

FY06

FY07

FY08

FY09

FY04

FY05

FY06

FY07

FY08

FY09

Dabur-Strong presence in FMCG categories

Category Hair Care Oral Care Skin Care OTC Health Fruit Juices Position 3 3 2 1 1 Market Share 12% 13% 7% 10% 50% Key Brands
Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos Red toothpaste, Babool,Meswak, Red toothpowder Dabur Gulabari, Fem, Dabur Uveda Dabur Chyawanprash, Asavs, Honitus & Other OTC products Real Fruit Juices, Real Activ

Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder ,OTC health includes Over The Counter categories of Health Supplements, Digestives, Ayurvedic Healthcare etc; Skin care includes moisturisers, face cleaning, lightening, anti ageing & other skin care products.

Topline/Bottomline performance: FY2008-09

Sales : FY 2008-09 vs 2007-08
29000

28341

Sales increased by 18.3% to touch Rs.28341 Mn during FY09.

28000 27000 26000 25000 24000 23000 22000 21000

FY08 FY09

Rs. Mns

18.3%

23963

PAT: FY 2008-09 vs 2007-08

4000 3913

Consolidated PAT grew at 17.5% in FY09 touching Rs.3912 Mns.

Rs. Mns

3800

17.5%

3600 3400 3200 3000 FY08 FY09 3329

Topline/Bottomline performance-Q1FY10
Sales : Q1 FY10 vs Q1 FY09

Sales increased by 22.1% to reach Rs.7480 mn during the quarter. Strong sales growth led by CCD and IBD growing by 17.5% & 52.9% resp. Consolidated PAT grew at 29.4% during Q1FY10 to Rs 914 mn. Significant increase in PAT due to strong topline, improving gross margins and operating leverage despite higher ad spend & tax provisioning.

8000

7480 6124

22.1%

7000 6000 5000 4000 3000 2000 1000 0

Q1FY09

Q1FY10

PAT : Q1 FY10 vs Q1 FY09

1000 914 707

29.4%

800 600 400 200 0

Q1FY09 Q1FY10

Rs. Mns

Dabur: Accelerating growth

Only 0.6% of the growth from consolidation of Fem care

25% 20% 15% 10% 5% 0% 12.3% 14.2% 13.6% 15.5% 17.8% 19.4% 19.9%

22.1%

Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10

Above growths are value growth for the period

One of the highest volume driven growth over last 2 years-16% volume & 3.5%* price during Q1FY10.
* Balance 2.7% growth is due to translation gain in international operations

FMCG Sector : Current Scenario

No signs of slowdown- most categories witnessing double digit growth. Significant increase in agri commodity realizations and investments in agriculture/rural economy boosted rural growth. Poor monsoon could hurt farm incomes and impact agri growth; No impact so far on the rural consumption spending. No material signs of consumer downtradingbarring in categories where price hikes have been in excess of 10-15%. Benign input cost environment foreseeable for next few months; growth to be primarily volume led with little or no price growth in the offing. Modern Trade on low growth trajectory post the turmoil; slack taken over by general trade. Growth will be driven by product differentiation, innovation and distribution efficiency.
100 95 90 85 80 75

FMCG space showing steady growth

30 26 25 19 19 21 19 20 20 20 16 17 16 17 15 14 10 5 0

'Jul-08 'Aug-08

'Oct-08 'Nov-08

'Dec-08 'Jan-09

'Apr-09

FMCG Value Rs.Bn FMCG Value Grow th % YA

All India U+R Value Estimates for 80+ FMCG categories as tracked by Nielsen India

Rs Bn FMCG Size YoY%

Source: AC Neilsen

MAT,09 1104.1 19%

MAT, 08 927.8

MAT is immediately preceding 12 months to June.

'May-09 'Jun-09

'Feb-09 'Mar-09

'Sep-08

Consumer India : What can we expect ?

India is one of the largest and fastest emerging consumer markets in the world with sales of over $23 billion Private consumption expenditure in India grew at a real CAGR of over 7.3% during last 5 years. Pyramid expanding at the middle as deprived sections are shrinking : People in lowest expenditure class will shrink from 45% to 35% by 2014-15*. Share of wallet shifting from foods to personal care, healthcare and household products. Rural India accounts for 70% of population. By 2014-15, 150 million people in rural India will have consumption levels similar to the better-off urban consumer of today*. By 2014-15, industry and services will together account for 38% of rural employment. This growth will bring with it significant changes in consumer preferences in rural India.* Government has allocated further Rs 400 bn towards National Rural Employment Generation Act (NREGA), which will help sustain/rev up rural demand going forward.
* Source : CERG report on Consumer India

GDP Growth expected in the range of around 6-7%

GDP Growth

12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10F 7.5% 9.5% 9.7% 9.0% 6.7% 6.0%

Share of FMCG Categories

Others Baby Care Household 5% 4% 2% OTC Products 4% Hair Care 8% Personal Care 22%

Fabric Care 12% Food Products 43%

Penetration levels : Sufficient head room

Category Name Hair Oil Health supplements* Packaged fruit Beverages Mosquito repellants Washing powders Washing cakes/ bars Utensil cleaners Shampoo Toilet Soap Tooth Paste Tooth Powder Fairness Creams Cold Creams Skin Cream Branded Baby Oil Category Size (Rs Mn) 22,631 1,681 12,000 66,70 28,269 NA 19,173 62,170 24,835 4,551 NA NA 24,551 NA All India % 94 8 16 32 Urban % 96 14 30 93 58 91 59 62 96 79 26 20 3 30 2 Rural % 93 5 10 20 89 86 16 46 89 45 33 14 1 19 1

Higher Overall Penetration

47,027

90 88 29 51 91 56 31 16 1 23 2

Move Rural Penetration To Urban levels

Source : Industry Data, Indian Readership Survey 2008 Round 2

Low penetration levels : room for sustained growth

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Increase Urban Penetration

Daburs Business Structure Dabur operates through three focused Strategic Business Units:

Consumer Care Division:

FMCG portfolio four distinct businesses: Personal Care, Health Care, Home Care and Foods.

72.8%

Consumer Health Division:

Range of ethical and OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats.

7.3%

International Business:
Caters to the health & personal care needs of customers across different international markets spanning Middle East, North & West Africa, EU and US through its brands Dabur and Vatika.
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18.5%

Robust Brand Architecture

Rs Billion

Brand Architecture
Dabur Herbal Healthcare Vatika Premium Personal Care Hajmola Tasty Digestives Fem Skin care range Real Fruit Beverages Balsara Home Care

Domestic

Overseas

Total Size

14.8 2.1 1.3 1.0 2.5 1.2

1.7 1.8 0.1

*

16.5 3.9 1.4 1.0 3.0 1.3

0.5 0.1

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*Brand size pertains to FY2008-09 sales in India and overseas; Fem had sales of about Rs.30 mn in overseas markets in FY09.

Consumer Care Division Overview

2003-2004
FPD HCPD

2006-2007
Balsara

2007-2008
Foods

2008-2009
FEM

CCD

FPD:Family Products Division HCPD: Health Care Products Division *Foods division was a 100% subsidiary of DIL
25,000

CCD Sales over the years CAGR-15.2%

20620 18,658 16,392 14,013 12,250 10,158

Rs.Mn

Category wise share of CCD sales

13% 6% 44%

20,000 15,000 10,000 5,000

37%
Health Care

Personal Care

Foods

Home Care

FY04 FY05 FY06 FY07 FY08 FY09

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Consumer care category performance

25.0% 20.0% 15.0% 10.0% 5.0% 0.0%
Home Care Supplements Digestives & Baby Oils & Oral Care Hair Care Skin Care Candies Health Foods

22% 23% 21% 17% 11% 11%

18% 12%

20% 14% 8% 10%

22% 14%

Q1FY10

FY09

Hair care the largest category continuing strong growth trajectory with 22% growth during Q1FY10. Oral Care (Toothpastes) posted 20.7% growth during the quarter. Foods achieved growth of 21.6% for the quarter. Baby & Skin care grew by 19.7% led by Gulabari brand and its extensions.
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Key Initiatives:Aggressive product launches

Home & Personal Care:

Re-launch of Vatika Dandruff Control Shampoo with 3 variants

New launch:Total Test Launch: protect shampoo Amla Flower Magic

Preity Zinta roped in for the launch of Almond Enriched hair oil

Launch of Re 1 sachet of Dabur Amla Hair Oil

Successful launch of Gulabari cold cream & lotion

Gulabari Rose face freshener

Odomos Naturals introduced

Odonil Gel variants launched

- Dazzl Silver Cleaner & Glass Cleaner being launched. - Lemon & Pine variants of Dazzl

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Key Initiatives:Aggressive product launches

Health care & Fruit based beverages:

Re-launch of LDM and RTP in new pack

75 gm SKU of Babool at Rs.10; New Babool Family pack at Rs.52

Neem variant of Babool gained ground in the herbal Neem category

Entered MFD category with Chyawan Junior; Revamped the Chyawanprash packaging

MS Dhoni: Appointed brand Ambassador for Chyawanprash & Honey

Launch of Lemon & Orange flavours

New Pudina variant of Hajmola received good response

Test Launched Burrst:New Drinks brand

New variants of Real: Apple Nectar,Peach & Black Currant

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Key Initiatives:Aggressive product launches Launching UVEDA-Ayurvedic skin care range

The new Uveda range will be initially test marketed in Delhi NCR & Maharashtra.

Uveda product range

Fairness Crme 10gm, 30gm Moisturizer 50ml, 100ml Face Wash Moisturizing 50ml, 100ml Clarifying 100ml

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Consumer Health Division

Dabur is the largest OTC Healthcare company in India (Source: Nicholas Halls OTC Yearbook 2008) CHD : The repository of Daburs Ayurvedic Healthcare knowledge Plans underway to build a comprehensive strategy for a greater push in OTC Health space.

CHD structure
- OTC (57%) Generics Branded Products - ETHICAL (43%) Tonic Classicals Branded Ethicals

Honi- Mint : Extension of Honitus

Honitus Lozenges & Syrup

Pudin Hara : New campaign

Dabur Antacid : Positive initial response

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International Business Division

High Growth in IBD : CAGR of 33%
6000 5000 4000 3000 2000 1000 0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 1807 1281 2258 3760 2917 5250

Daburs Overseas business now contributes 20% to consolidated sales. Focus markets : GCC Egypt Nigeria Bangladesh Nepal US High level of localization of manufacturing and sales and marketing Leveraging the Natural preference among local consumers to increase share in perosnal care categories Sustained Investments in brand building and marketing New mfg facility at Ras-Al-Kheima catering to strong growth

Rs.Mn
*Category growth in MENA region

New products contributing significantly to overseas sales

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Fem Care Acquisition : Update

Fem care acquisition completed on 25thJune, 2009. Targeting to grow Bleach & Hair Removing Cream (HRC) business faster than the category growths. Launched new Fem herbal Bleach in May, 2009. Substantial brand building investments behind the core brands of Fem bleach & Fem hair removing cream. Preity Zinta taken as brand ambassador for Fem. Media intervention on the core business after almost a year through Fem presents Rakhi ka Swayamwar. Extensive demos in parlours to prove product superiority over the competition.
Skin care categories in which Fem operates
Category Bleaches Hair Removing Creams Category Size (Rs. Cr) Gr (Vol) Gr (Val) 132 194 13.6 8.6 17.4 18.1

New Herbal Bleach launched in May 2009

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DIL Growth Strategy

Entering new Categories
Skin Care : Ayurvedic skin care range under a new brand to be launched OTC Healthcare : Leveraging Ayurveda knowledge for a range of OTC portfolio Fruit Drinks: Entry into the fast growing fruit drinks category leveraging the Real franchise Home care : expansion across air fresheners, insect repellants & hard surface cleaners

Targeting Inorganic opportunities

Market Entry : Acquisitions critical for building scale in existing categories & markets Synergies : Should be synergistic and make a good strategic fit Geographies : domestic and global opportunities

Strong innovation programme

Contribution : New products to contribute 5-6% of revenues Focus Categories : New product activations lined up in all categories Renovation : Packaging renovations to keep older products salient

Expanding across geographies

Overseas markets : 20% of overall company;target to sustain higher growth rates South India : Increased contribution from 6% to 10% ; targeting 15% of domestic revenues

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Stock Performance & Shareholding

Daburs stock price vis--vis NIFTY:

150 100 50

Shareholding pattern
FIIs 11% FIs / Mutual Funds 12% 7%

Promoters 70%

0
Jul-08 Aug-08 Apr-09 Nov-08 Feb-09 Jan-09 Sep-08 Dec-08 Mar-09 May-09 May-09 Oct-08 Jun-09 Jul-09

NSE

Dabur

Dabur Outperformed the index by 45% during the period July 2008-July 2009.

Shareholding as on 24th July 2009

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DIL Consolidated financials- P&L Q1FY10

DIL (Consolidated) P&L Gross Sales Less:Excise Duty Net Sales Other Operating Income Material Cost % of Sales Employee Costs % of Sales Ad Pro % of Sales Other Expenses % of Sales Other Non Operating Income EBITDA % of Sales Interest Expenses Depreciation/Amortization Profit Before Tax (PBT) Taxes Profit After Tax (PAT)(Before exceptional item) % of Sales Profit After Tax(After exceptional Items) Profit After Tax (After Extra ordinary item & Minority Int) EPS (Rs) 913.9 1.06 706.5 0.82 29.4% 910.3 12.2% 910.3 707.4 11.6% 706.5 28.8% 28.7% Q1FY10 7480 53.5 7426.6 46.7 3529 47.2% 597 8.0% 1138 15.2% 981 13.1% 31.6 1,260.7 16.9% 36.7 123.4 1100.6 190.3 Q1FY09 YoY (%) 6124 84.1 6039.8 71.2 3002 49.0% 532 8.7% 814 13.3% 821 13.4% 48.5 991.1 16.2% 40.3 116.6 834.2 126.8 -8.9% 5.8% 31.9% 50.1% -34.8% 27.2% 19.5% 39.7% 12.2% 23.0% -34.4% 17.6% 22.1%

Rs.Mn

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DIL Consolidated Balance Sheet : 30thJune 2009

DIL (Consolidated) Balance Sheet Sources Of Funds Shareholders' Fund: Share Capital Reserves & Surplus Minority Interest Loan Funds: Secured Loans Unsecured Loans Deffered Tax Liability TOTAL Application of funds: Fixed Assets: Gross Block less: Depreciation Net block Investments Current Assets,Loans & Advances Inventories Sundry Debtors Cash & Bank balances Loans & Advances Current Liabilities Provisions Net Current Assets Miscellaneous Expenditure Deffered Tax Assets TOTAL 4035 2111 1835 3023 11003 6068 3538 9606 1397 82 253 11703 3740 2005 691 2425 8862 4857 2837 7694 1168 130 240 8787 11593 3186 8408 1561 7706 2741 4964 2285 1089 1086 2175 358 11703 1181 355 1536 283 8787 865.5 8231 9096 74 865.0 6055 6920 48 YTD June 09 YTD June 08

Rs.Mn

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

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