Description
It explains about Industry Trends in FMCG industry, PEST Analysis of FMCG Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the Dabur India , it's Finance performance, SWOT analysis of Dabur India and Various Strategies employed.
Agenda
? FMCG industry size of India ? Key players at FMCG ? PEST analysis ? Competitor Analysis ? SWOT Analysis ? Dabur India Limited overview ? Dabur: Strong Presence in FMCG Categories ? Segment wise market share of Dabur ? International business ? Growth Strategy ? Acquisitions of Hobi Group, Turkey and Namaste Laboratories ? Recent Financial Performance ? Recent Accolades
FMCG Industry size (India)
? Of the entire FMCG sector, Food is 52%, Non-Food at 45% and OTC 3% ? Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics ? FMCG industry expected to grow in mid to high teens going ahead ? The FMCG market is set to treble from US$ 13.1 billion in 2009 to US$ 33.4 billionin2015
Net Sales in Rs crores
5283 3391 4071
FY10
FY11
FY12
Key players at FMCG
Company
Hindustan Unilever Ltd Nestle India Ltd Dabur India Ltd Godrej Consumer
Key categories
Soaps, Detergents, Personal Care, Foods Food, Beverages, Infant Nutrition Personal, Health & Homecare, Foods Hair Care, Soaps
Colgate Palmolive Ltd Glaxo Smithkline Consumer Marico Ltd. Procter & Gamble Britannia Industries Ltd
Oral Care & Toiletries Consumer Health Care Hair care, Food, Skincare Feminine Hygiene personal care Biscuits
PEST analysis
Political ? Stable political government. ? Restrictions in import policies. ? Rise in customs duty on petrol & diesel. ? Partial withdrawal of stimulus packages Economical ? Inflation rate ? Decreased GDP ? Increase in disposable income. ? Indian FMCG Recorded 16% Sales Growth in last fiscal. The FMCG sector is the4thlargest sector of Indian economy with market size of more than 60,000crore Social ? Rising rural India. ? Consumerism. ? Demography Technological ? Research and development intensity ? Information technology
COMPETITOR ANALYSIS
The key competitors are Keo Karpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India's domestic market. Emami: Himani Navratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market. Bajaj: Bajaj Brahmi Amla and Bajaj Almond Drops currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Maricos: Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute's primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HUL It has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3%share in hair oil market. The key competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu andHimani, which together with Dabur have about 85% of India's domestic market. Dabur Chyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows:
SWOT Analysis
?
STRENGTH Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties)
? ? ?
WEAKNESS
Seasonal demand like chyawanprash in winter High price Vatika Limited deffenrtiation in some products like vatika
? ? ?
Core knowledge of Ayurveda Strong Brand Image Distribution Network, Extensive Supply Chain, IT Initiatives and R & D
? ? ?
OPPORTUNITIES
Export opportunities Increasing demand by people Market development
? ?
THREATS
Existing competition like Zandu, Himani, Baidyanath New entrant threats from substitutes like Bryllcream for vatika hair oil
Dabur India Limited overview
? Established in 1884 - more than 127 years of Trust & Excellence ? Among top 4 FMCG companies in India ? World?s largest in Ayurveda and natural healthcare ? Revenue of r US$1 Billion (Rs 5,283 Crore) and Market Capitalisation of US$4 Billion (Rs 20,000 Crore) ? Wide distribution network covering 3.4 million retailers across the country ? 23 world class manufacturing plants catering to needs of diverse markets ? Strong overseas presence with 30% contribution to consolidated sales ? Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. ? Headquarters: Kaushambi Ghaziabad - 201010 Uttar Pradesh, India
? Top management: Dr. Anand Burman (Chairman) Mr. Amit Burman (Vice-Chairman) Mr. Sunil Duggal (CEO) ? Employees approximately 3000
Dabur: Strong Presence in FMCG Categories
Category Hair Care Oral Care Skin Care
Position 3 3 3
Market share Key Brands 12% 13% 7% 67% 56% 52% 50% 25% Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos Red toothpaste, Babool, Meswak, Red toothpowder Dabur Gulabari, Fem Dabur Chyawanprash Hajmola Real Fruit Juices, Real Activ Dabur Honey Dabur Glucose
Ayurvedic 1 Tonics Digestives 1 Fruit Juices Honey Glucose 1 1 2
Segment wise market share of Dabur
Market share in Hair Oil
Dabur Emami Bajaj Others Marico
Market share of Digestives
Hajmola Satmola others
15% 30% 8%
36%
56% 5% 42% 8%
Market share of Home care
Odomos GoodKnight others
Market share in Foods
Dabur Pepsi others
19%
13%
12% 35% 69%
52%
International business
?
Focus markets:
? Egypt ? Nigeria
? Turkey ? Bangladesh ? Nepal ? U.S. ? ? ? Leveraging the “Natural” preference among local consumers to increase share in personal care categories High level of localization of manufacturing and sales and marketing Sustained investments in brand building and marketing
Growth Strategy:
Three Growth Strategies
Expand
Innovate
Acquire
Expand ? Strengthening presence in existing categories and markets as well entering new geographies ? Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories ? Calibrated international expansion – local manufacturing pp y y g and supply chain to enhance flexibility/ reduce response time to change in market demands Innovate ? Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a.
? Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire ? Acquisitions critical for building scale in existing categories & markets
? Should be synergistic and make a good strategic fit ? Target opportunities in our focus markets
Acquisitions of Hobi Group, Turkey
? Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 ? Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era ? Product range of the company is complementary to our product range
? Acquisition provides an entry into another attractive emerging market and a good
platform to leverage this across the region
Acquisitions of Namaste Laboratories
? 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 ? Namaste is a leading ethnic hair care products company, having products for women of colour, with revenues of $95 million from US, Europe, Middle East and African markets ? 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.
? 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
? At an acquisition price of $100 million, the deal value is at 1.1x Sales and 8.3x
EBITDA
Recent Financial Performance
Total sales (in Rs Crores )
5283 4077
FY11
FY12
Profit After Tax (in Rs Crores )
645 567
FY11
FY12
Recent Accolades
Dabur India Ltd CEO Sunil Duggal
Dabur India Ltd awarded the Aaj Tak
Dabur India Ltd ranked amongst
ranked amongst the Top 10 Best CEOs for Investor Relations in India
Care Award for its environment initiatives
the Top 3 Green Business Leaders in the FMCG industry
Dabur Uveda range of Ayurvedic skin care products listed amongst the '30 New Beauty Finds' by India Today Woman
Dabur India Ltd Director Mohit Burman ranked in the India Hot 100 list. Mr. Burman ranked 53 in the list
Dabur India Ltd Chairman Dr. Anand Burman ranked amongst India's Most Powerful CEOs
doc_544171700.docx
It explains about Industry Trends in FMCG industry, PEST Analysis of FMCG Industry, Competitor Analysis, SWOT analysis, Company Description, General Information about the Dabur India , it's Finance performance, SWOT analysis of Dabur India and Various Strategies employed.
Agenda
? FMCG industry size of India ? Key players at FMCG ? PEST analysis ? Competitor Analysis ? SWOT Analysis ? Dabur India Limited overview ? Dabur: Strong Presence in FMCG Categories ? Segment wise market share of Dabur ? International business ? Growth Strategy ? Acquisitions of Hobi Group, Turkey and Namaste Laboratories ? Recent Financial Performance ? Recent Accolades
FMCG Industry size (India)
? Of the entire FMCG sector, Food is 52%, Non-Food at 45% and OTC 3% ? Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favourable demographics ? FMCG industry expected to grow in mid to high teens going ahead ? The FMCG market is set to treble from US$ 13.1 billion in 2009 to US$ 33.4 billionin2015
Net Sales in Rs crores
5283 3391 4071
FY10
FY11
FY12
Key players at FMCG
Company
Hindustan Unilever Ltd Nestle India Ltd Dabur India Ltd Godrej Consumer
Key categories
Soaps, Detergents, Personal Care, Foods Food, Beverages, Infant Nutrition Personal, Health & Homecare, Foods Hair Care, Soaps
Colgate Palmolive Ltd Glaxo Smithkline Consumer Marico Ltd. Procter & Gamble Britannia Industries Ltd
Oral Care & Toiletries Consumer Health Care Hair care, Food, Skincare Feminine Hygiene personal care Biscuits
PEST analysis
Political ? Stable political government. ? Restrictions in import policies. ? Rise in customs duty on petrol & diesel. ? Partial withdrawal of stimulus packages Economical ? Inflation rate ? Decreased GDP ? Increase in disposable income. ? Indian FMCG Recorded 16% Sales Growth in last fiscal. The FMCG sector is the4thlargest sector of Indian economy with market size of more than 60,000crore Social ? Rising rural India. ? Consumerism. ? Demography Technological ? Research and development intensity ? Information technology
COMPETITOR ANALYSIS
The key competitors are Keo Karpin, Emami, Bajaj, Marico, HLL which together with Dabur have about 64% of India's domestic market. Emami: Himani Navratan oil and Himani Oil. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. Overall it has a share of 4% in hair oil market. Bajaj: Bajaj Brahmi Amla and Bajaj Almond Drops currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Besides, the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts. Maricos: Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. Parachute's primary target has been women of all ages. The brand has a huge loyalty, not only in the urban sections of India but also in the rural sector. It has a market share of 28%. HUL It has two products, Clinic plus Hair Oil and All Clear Clinic Hair Oil. Overall it has a 3%share in hair oil market. The key competitors of Dabur in the Chyawanprash segment are Baidyanath, Zandu andHimani, which together with Dabur have about 85% of India's domestic market. Dabur Chyawanprash (herbal honey) has a market share of 61%.We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows:
SWOT Analysis
?
STRENGTH Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties)
? ? ?
WEAKNESS
Seasonal demand like chyawanprash in winter High price Vatika Limited deffenrtiation in some products like vatika
? ? ?
Core knowledge of Ayurveda Strong Brand Image Distribution Network, Extensive Supply Chain, IT Initiatives and R & D
? ? ?
OPPORTUNITIES
Export opportunities Increasing demand by people Market development
? ?
THREATS
Existing competition like Zandu, Himani, Baidyanath New entrant threats from substitutes like Bryllcream for vatika hair oil
Dabur India Limited overview
? Established in 1884 - more than 127 years of Trust & Excellence ? Among top 4 FMCG companies in India ? World?s largest in Ayurveda and natural healthcare ? Revenue of r US$1 Billion (Rs 5,283 Crore) and Market Capitalisation of US$4 Billion (Rs 20,000 Crore) ? Wide distribution network covering 3.4 million retailers across the country ? 23 world class manufacturing plants catering to needs of diverse markets ? Strong overseas presence with 30% contribution to consolidated sales ? Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. ? Headquarters: Kaushambi Ghaziabad - 201010 Uttar Pradesh, India
? Top management: Dr. Anand Burman (Chairman) Mr. Amit Burman (Vice-Chairman) Mr. Sunil Duggal (CEO) ? Employees approximately 3000
Dabur: Strong Presence in FMCG Categories
Category Hair Care Oral Care Skin Care
Position 3 3 3
Market share Key Brands 12% 13% 7% 67% 56% 52% 50% 25% Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos Red toothpaste, Babool, Meswak, Red toothpowder Dabur Gulabari, Fem Dabur Chyawanprash Hajmola Real Fruit Juices, Real Activ Dabur Honey Dabur Glucose
Ayurvedic 1 Tonics Digestives 1 Fruit Juices Honey Glucose 1 1 2
Segment wise market share of Dabur
Market share in Hair Oil
Dabur Emami Bajaj Others Marico
Market share of Digestives
Hajmola Satmola others
15% 30% 8%
36%
56% 5% 42% 8%
Market share of Home care
Odomos GoodKnight others
Market share in Foods
Dabur Pepsi others
19%
13%
12% 35% 69%
52%
International business
?
Focus markets:
? Egypt ? Nigeria
? Turkey ? Bangladesh ? Nepal ? U.S. ? ? ? Leveraging the “Natural” preference among local consumers to increase share in personal care categories High level of localization of manufacturing and sales and marketing Sustained investments in brand building and marketing
Growth Strategy:
Three Growth Strategies
Expand
Innovate
Acquire
Expand ? Strengthening presence in existing categories and markets as well entering new geographies ? Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories ? Calibrated international expansion – local manufacturing pp y y g and supply chain to enhance flexibility/ reduce response time to change in market demands Innovate ? Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a.
? Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire ? Acquisitions critical for building scale in existing categories & markets
? Should be synergistic and make a good strategic fit ? Target opportunities in our focus markets
Acquisitions of Hobi Group, Turkey
? Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 ? Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era ? Product range of the company is complementary to our product range
? Acquisition provides an entry into another attractive emerging market and a good
platform to leverage this across the region
Acquisitions of Namaste Laboratories
? 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 ? Namaste is a leading ethnic hair care products company, having products for women of colour, with revenues of $95 million from US, Europe, Middle East and African markets ? 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.
? 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
? At an acquisition price of $100 million, the deal value is at 1.1x Sales and 8.3x
EBITDA
Recent Financial Performance
Total sales (in Rs Crores )
5283 4077
FY11
FY12
Profit After Tax (in Rs Crores )
645 567
FY11
FY12
Recent Accolades
Dabur India Ltd CEO Sunil Duggal
Dabur India Ltd awarded the Aaj Tak
Dabur India Ltd ranked amongst
ranked amongst the Top 10 Best CEOs for Investor Relations in India
Care Award for its environment initiatives
the Top 3 Green Business Leaders in the FMCG industry
Dabur Uveda range of Ayurvedic skin care products listed amongst the '30 New Beauty Finds' by India Today Woman
Dabur India Ltd Director Mohit Burman ranked in the India Hot 100 list. Mr. Burman ranked 53 in the list
Dabur India Ltd Chairman Dr. Anand Burman ranked amongst India's Most Powerful CEOs
doc_544171700.docx