Description
Dabur (Dabur India Ltd.)is India's largest Ayurvedic medicine & related products manufacturer.Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions, from common cold to chronic paralysis. Dabur International, a fully owned subsidiary of Dabur India formerly held shares in the UAE based Weikfield International, which it disposed of on 25 June 2012
A Trust of 125 Years
Dabur India Limited
Corporate Profile
August, 2009
A Trust of 125 Years
Contents
Contents
Dabur India
Dabur India
-
-
Introduction
Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials
2 2
A Trust of 125 Years
Dabur today:Largest Indian Personal &
Healthcare Company
Eight Billion Rupee brands
3 3
Largest Herbal & Natural Portfolio
4000 Distributors in India
Retail Reach 2,500,000
5 Umbrella Brands
350+ products
4000 employees
15 Manufacturing Plants
Sizeable Presence in high growth
international markets
A Trust of 125 Years
Journey so far…
1884 The birth of Dabur
1972 The company shifts base to Delhi from Kolkatta
1986 Registered as Public Limited Company
1994 Listed on the Bombay Stock Exchange
1998 Professional team inducted to run the company
2000 Crosses Rs 1000 Crore Turnover
2003 Pharmaceutical Business de-merged to focus on core FMCG
2004 Profit exceeds Rs.100 Crore
2005 Acquires Balara strenthening Oral care & provided entry into Home care segment
2006 Dabur Figures in Top 10 Great Places To Work
2007 Dabur ranked among 'Asia's Best Under A Billion' enterprises by Forbes
2008 Acquired Fem Care Pharma entering the mainstream Skin care segment
2009 Strong growth momentum continued in spite of general economic downturn
The Founder :
Dr.S.K.Burman
Old Office at Calcutta
Corporate office, Ghaziabad
4 4
A Trust of 125 Years
Rs Mn
Rs Mn
Strong Financials
EBITDA Margin
Net Income
Sales
CAGR-18%
CAGR-30%
5 5
12356
14170
17565
20803
23963
28341
0
5000
10000
15000
20000
25000
30000
FY04 FY05 FY06 FY07 FY08 FY09
1065
1558
2142
2817
3329
3913
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY04 FY05 FY06 FY07 FY08 FY09
13.3
15.3
17.1
18.1
18.5
18.3
10
12
14
16
18
20
22
FY04 FY05 FY06 FY07 FY08 FY09
KEY FINANCIALS : 2008-09
Market Cap $ 2.3 Bn
Cash Flow Rs.3.6 Bn
EBIDTA Margin 18.3%
PAT/Sales 13.8%
RONW 48.4%
A Trust of 125 Years
FY2008-09 : Highest organic growth in the decade
Balsara acquisition
added 10% to
topline in FY06
Robust growth driven 13% by volume and around 5% by price increases
7.0%
9.2%
12.0%
13.8%
-3.8%
24.0%
14.7%
15.2%
18.3%
18.3%
0
500
1000
1500
2000
2500
3000
F
Y
0
0
F
Y
0
1
F
Y
0
2
F
Y
0
3
F
Y
0
4
F
Y
0
5
F
Y
0
6
F
Y
0
7
F
Y
0
8
F
Y
0
9
6 6
A Trust of 125 Years
Baddi (HP)
Jammu (J&K)
Silliguri (WB)
Newai (Raj)
Silvassa
Katni, (MP)
Uttaranchal
Sahibabbad (UP)
Manufacturing Locations-India
Manufacturing Facilities
One of our largest
manufacturing
facilities at Baddi,
HP
Dabur Plant at Rudrapur,
Uttaranchal
First Ayurvedic
products company to
receive ISO 9002
certification
Certificate of ‘Good
Manufacturing Practices’
to manufacture Ayurveda
Drugs
HACCP Certificate
for food facilities at
Nepal and Rajasthan
7 7
A Trust of 125 Years
Birganj, Nepal Birganj, Nepal
Manufacturing Facilities
Manufacturing Locations-International
Egypt
Dubai
Bangladesh
Nepal
RAK
Nigeria
Key markets
Dabur’s new plant at
Ras Al Kheima
8 8
A Trust of 125 Years
Team of 50 Scientists’ including
Ayurvedic doctors, Pharmacists,
Agronomists, Botanists, Tissue Culture
specialists, etc
GREENHOUSE AT DABUR NEPAL DABUR RESEARCH FACILITIES
Research & Development Strengths
Agronomy Initiatives
Contract
cultivation of
herbs
Protecting
endangered
herbs
Green House
at Nepal
Technical
assistance to
Farmers
Ayurvedic Medicines
Personal Care
Foods
Home Care
Health Supplements
Strong New Product Development
9 9
A Trust of 125 Years
Distribution Network : Route to Market
Stockist
Stockist
Wholesalers
Wholesalers
Retail Trade
Retail Trade
Semi Wholesalers
Semi Wholesalers
Superstockist
Superstockist
Institutions
Institutions
D.C
D.C
Shoppers & Consumers
Shoppers & Consumers
Factory
Factory
Substockist
Substockist
Retail Trade
Retail Trade
Dabur reaches a total of 2.5 Mn retail outlets; Direct Reach is 0.7 Mn outlets
Modern
Trade
Modern
Trade
10 10
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples
Consumer Staples
-
-
Snapshot
Snapshot
Business overview
Brand/Growth Strategy
Financials
11 11
A Trust of 125 Years
Consumer Staples Sector Snapshot
OTC Products
4%
Food Products
43%
Personal Care
22%
Others
5%
Household
4%
Fabric Care
12%
Hair Care
8%
Baby Care
2%
Category wise share of the sector
Industry Size (US$ 18 bn)
Source : AC Nielsen annual for CY07
Source : AC Nielsen
Rural growth rates inching towards Urban
Source: AC Nielsen
3%
9%
10%
12% 12%
15%
-8%
-1%
1%
16%
10%
12%
-10%
-5%
0%
5%
10%
15%
20%
CY03 CY04 CY05 CY06 CY07 CY08
Urban Rural
Rural India contributes 33% of the overall FMCG sector.
49
47
4
OTC Non Food Food
FMCG industry size pegged at US$ 18 bn. FMCG industry size pegged at US$ 18 bn.
Personal care & Food products dominate Personal care & Food products dominate
the sector the sector
Home,Hair & Skin care have low Home,Hair & Skin care have low
penetration & huge potential penetration & huge potential
Steady growth in most categories Steady growth in most categories
12 12
A Trust of 125 Years
Category Penetration
Move
Rural
Penetration
To Urban
levels
I
n
c
r
e
a
s
e
U
r
b
a
n
P
e
n
e
t
r
a
t
i
o
n
H
i
g
h
e
r
O
v
e
r
a
l
l
P
e
n
e
t
r
a
t
i
o
n
Low penetration levels : room for sustained growth
Source : Industry Data, Indian Readership Survey 2008 Round 2
* The category size is representative of Glucose market
Hair Oil 22,631 94 96 93
Health supplements* 1,681 8 14 5
Packaged fruit Beverages 12,000 16 30 10
Mosquito repellants 66,70 32 58 20
Washing powders 47,027 90 93 89
Washing cakes/ bars 28,269 88 91 86
Utensil cleaners NA 29 59 16
Shampoo 19,173 51 62 46
Toilet Soap 62,170 91 96 89
Tooth Paste 24,835 56 79 45
Tooth Powder 4,551 31 26 33
Fairness Creams NA 16 20 14
Cold Creams NA 1 3 1
Skin Cream 24,551 23 30 19
Branded Baby Oil NA 2 2 1
Rural % Category Size (Rs Mn) Category Name All India % Urban %
13 13
A Trust of 125 Years
Source- Published results for year ending 31.03.08; *Year ending 31.12.07; **Year ending 30.06.09 annualized; ***Year ending 31.12.04
^ updated for results announced until 5
th
May, 2009
Key players
USD Million
14 14
Company Key Categories Sales Profit Market Cap
Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4383 536 13,417
Tata Tea Tea 1011 115 697
Nestle India Ltd* Food, Beverages, Infant nutrition 915 119 4438
Dabur India Ltd Personal, Health & Homecare, Foods 590 82 2479
Britannia Industries Ltd Biscuits 706 38 729
Colgate Palmolive (I) Ltd Oral Care & Toiletries 374 61 1734
Marico Ltd. Hair care, Food, Skincare 478 38 1104
Glaxo Smithkline Consumer* Consumer Health Care 309 38 940
Cadbury India Ltd*** Chocolates, Confectionery, Nutrition 270 25 Unlisted
Reckitt Benckiser (India) Ltd**** Home Care 168 21 Unlisted
Godrej Consumer Products Ltd Hair Care, Soaps 290 36 1187
Procter & Gamble** Feminine Hygiene, personal care 157 35 462
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Business overview
Brand/Growth Strategy
Financials
15 15
A Trust of 125 Years
Consumer Care Division
Personal care,Health care,Home Care & Foods
Consumer Health Division
Over the counter (OTC) & Ethical Ayurvedic portfolio
International Business Division
Health & Personal care in International markets
Business Structure
16 16
CHD
7%
IBD
19%
Others
1%
CCD
73%
A Trust of 125 Years
5%
10%
12%
23%
14%
11%
14%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
H
a
i
r
C
a
r
e
O
r
a
l
C
a
r
e
H
e
a
l
t
h
S
u
p
p
l
e
m
e
n
t
s
D
i
g
e
s
t
i
v
e
s
&
C
a
n
d
i
e
s
B
a
b
y
O
i
l
s
&
S
k
i
n
C
a
r
e
H
o
m
e
C
a
r
e
F
o
o
d
s
Hair care the largest category continued its strong performance
throughout the year with 23% in FY09.
Foods category bounced back with 23% growth in Q4FY09 and thus
growing by 14% for the year.
CCD Category performance
17 17
A Trust of 125 Years
Consumer Care Division Overview
FPD HCPD
2003-2004
Balsara
2006-2007 2007-2008
Foods*
CCD
2008-2009
FEM**
Above break up & Financials do not include Fem care acquisition
FPD:Family Products Division
HCPD: Health Care Products Division
•Foods division was a 100% subsidiary of DIL
** Acquisition under completion
18 18
Oral Care
18%
Foods
13%
Hair Care
32%
Home Care
6%
Baby & Skin Care
5%
Digestives & Candies
7%
Health Suppl
19%
A Trust of 125 Years
Brand Architecture
• Starting from Ayurveda, the company successfully ventured into herbal arena
becoming the ‘Herbal Specialist’
• While herbal businesses form the core with 85% of revenues, the company’s growth
ambitions are not limited by it.
• A robust brand architecture ensures that the core values remain intact
Herbal space
Natural / Non-herbal
space
Dabur
Herbal
Healthcare
Vatika
Premium
Personal
Care
Hajmola
Tasty
Digestives
Real
Fruit
Beverages
Balsara
Home Care
New brand
Ayurvedic
Skin care
Rs13.2 bn Rs2 bn Rs1.1bn NA Rs2.2 bn Rs 1 bn
BRAND ARCHITECTURE
•Brand size based on sales in India
FEM
Fairness Skin
solutions
Rs 1 bn
19 19
A Trust of 125 Years
Hair Oils
Dabur
17%
Marico
33%
Bajaj
6%
Others
41%
Dey's lab
3%
Rs 5.6 bn Dabur brands
Rs 33 Bn Market Size
Enriched Coconut oil Perfumed Hair oil Coconut Hair Oil
Mustard Amla hair Oil
20 20
Test Launch: Amla
Flower Magic
A Trust of 125 Years
Shampoos
Rs 1.3 bn Dabur brands
Rs 20 Bn Market Size
HUL
51%
L'Oreal
4%
P&G
26%
CavinKare
12%
Dabur
7%
Range of Vatika shampoos New launch-Vatika
Conditioners
New launch-Vatika balck shine
shampoo
21 21
Re-launch of Vatika Dandruff
Control Shampoo with 3
variants
A Trust of 125 Years
Oral care
Anchor
2%
Others
14%
Unilever
21%
Colgate
48%
Dabur
15%
Rs 4.7 bn Dabur brands
Rs 31 Bn Market Size
Toothpaste with extract of
Babool tree
Ayurvedic herbal
toothpaste & powder
Premium Herbal
Toothpaste
* Dabur’s share of oral care is 13% in value terms and
15% in volume terms
22 22
A Trust of 125 Years
Health supplements
Baidyanath
12%
Emami
9%
Zandu
7%
Dabur
62.4%
Others
9%
Rs 3.5 bn Dabur brands
Rs 6 Bn Market Size
Above Market data for Health Supplement
Chyawanprash Market
Glucose
Honey
Chyawanprash & its variants
23 23
Glucose:New Brand
ambassador-Cricket player
Zaheer Khan
Dabur Honey : New
campaign with AB
and MS Dhoni
A Trust of 125 Years
Digestives
Dabur
32%
Knoll
19%
Glaxo
14%
Pfizer
13%
Others
22%
Rs 1.5 bn Dabur brands
Rs 5 Bn Market Size
Digestive tablets
Hajmola candies Mint based remedy for
digestion
24 24
A Trust of 125 Years
Home Care
Odonil Room fresheners
New Range of Surface cleaners
Sanifresh Toilet Cleaners
Dabur
94%
Others
6%
Air freshener category
Dabur
91%
Others
9%
Mosquito repellant Cream
category
Rs 1 bn Dabur brands
Rs 20 Bn Market Size
Above Market data for Entire Home care
Category
25 25
A Trust of 125 Years
Foods
2%
8%
47%
36%
6%
Dabur Foods Tropicana Godrej Xs Fresh Gold Others
Range of Real Activ Juice
(100% Juice)
Consumer awareness though
campaigns
Rs 2.5 bn Dabur brands
Rs 5 Bn Market Size
26 26
Test Launching Burrst:New
Drinks brand in 1st week of
May
A Trust of 125 Years
Consumer Health Division
CHD Portfolio
OTC
(57%)
ETHICAL
(43%)
Generics
Branded
Products
Classicals
Branded Ethicals
Tonic
OTC portfolio:
Branded portfolio-
-Dabur Honitus-Syrup & Lozenges for
Cough/Cold,Badam Tail, Dabur active
antacid, Dabur Active Blood Purifier.
Generics-
Ashokarishta & Dashmularishta (Women's
health), Lavan Bhaskar Churna
Range of over 260 products
Focusing on multiple therapeutic areas.
Distribution coverage of 100,000 chemists,
~12000 vaidyas & 12000 Ayurvedic pharmacies
Partnership with Institutions such as
Dhanwantry Ayurvedic Hospital for clinical trials
Thrust on OTC portfolio to leverage the huge
self medication market
27 27
A Trust of 125 Years
International Business
Global Aspirations
Started as an Exporter
Focus on Order fulfillment
through India Mfg.
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
Building scale-19% of overall
Dabur Sales (FY09)
High Levels of Localization
Global Supply chain
1980’s
Early 90’s
1995-2000
Now
IBD over the years
(Rs.Mn)
CAGR +25%
Target markets divided into 3 categories :
Focus, Potential and Opportunistic Markets
Leveraging ‘naturals wave’ to market Dabur
products in GCC & Africa
Extending Dabur equity in neighboring
markets
28 28
241
1282
1807
2258
2917
3760
5250
0
1000
2000
3000
4000
5000
6000
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Brand/Growth Strategy
Financials
29 29
A Trust of 125 Years
EXPAND.. INNOVATE.. ACQUIRE..
Deeper penetration
and expansion into
new markets
• South India
•Global markets
Natural
Global markets
Current categories
Ayurveda
Herbal
North East&West India
South India
New categories
Others
CATEGORIES
MARKETS
Entering new categories
Skincare
Home care
OTC Healthcare
PLATFORMS
Herbal platform in the
personal care & health care
products
Leveraging ayurveda expertise
Growth Strategy
30 30
A Trust of 125 Years
Entering new Categories
Skin Care : New 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
Expanding across geographies
Overseas markets : 19% of overall company;target to sustain higher growth rates
South India : Increased contribution from 6% to 10% ; targeting 15% of domestic revenues
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
Targeting Inorganic opportunities
Market Entry : Acquisitions critical for entry into new markets and building scale in existing categories
Synergies : Should be synergistic and make a good strategic fit
Geographies : domestic and global opportunities
Expansion strategy
31 31
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials
Financials
32 32
A Trust of 125 Years
Topline/PAT performance: FY2008-09
(Including Retail)
2396
2834
2100
2200
2300
2400
2500
2600
2700
2800
2900
FY08 FY09
18.3%
Rs. Crore
Sales : FY 2008-09 vs 2007-08
333
391
300
320
340
360
380
400
FY08 FY09
17.5%
PAT : FY 2008-09 vs 2007-08
Sales increased by 18.3% to
touch Rs.2834 crore during FY09.
Consolidated PAT grew at
17.5% in FY09 touching Rs.391.2
crore.
33 33
A Trust of 125 Years
PAT performance: FY2008-09
(Excluding Retail)
341.42
408.7
300
320
340
360
380
400
420
FY08 FY09
19.7%
Rs. Crore
PAT growth excluding Retail
at 19.7% for FY09.
The newly set up Retail
Venture incurred loss of Rs 17.9
crore during FY09
34 34
A Trust of 125 Years
DIL Consolidated financials- P&L Q1FY10
35 35
DIL (Consolidated) P&L Q1FY10 Q1FY09 YoY (%)
Gross Sales 748 612 22.1%
Less:Excise Duty 5.4 8.4
Net Sales 742.7 604.0 23.0%
Other Operating Income 4.7 7.1 -34.4%
Material Cost 353 300 17.6%
% of Sales 47.2% 49.0%
Employee Costs 60 53 12.2%
% of Sales 8.0% 8.7%
Ad Pro 114 81 39.7%
% of Sales 15.2% 13.3%
Other Expenses 98 82 19.5%
% of Sales 13.1% 13.4%
Other Non Operating Income 3.2 4.9 -34.8%
EBITDA 126.1 99.1 27.2%
% of Sales 16.9% 16.2%
Interest Expenses 3.7 4.0 -8.9%
Depreciation/Amortization 12.3 11.7 5.8%
Profit Before Tax (PBT) 110.1 83.4 31.9%
Taxes 19.0 12.7 50.1%
Profit After Tax (PAT)(Before exceptional
item) 91.0 70.7 28.7%
% of Sales 12.2% 11.6%
Profit After Tax(After exceptional Items) 91.0 70.7 28.8%
Profit After Tax (After Extra ordinary item
& Minority Int) 91.4 70.7 29.4%
EPS (Rs) 1.06 0.82
A Trust of 125 Years
DIL Consolidated financials- Balance Sheet
Q1FY10
(In Rs cr)
36 36
DIL (Consolidated) Balance Sheet
Sources Of Funds
Shareholders' Fund:
Share Capital 86.6 86.5
Reserves & Surplus 823 606
910 692
Minority Interest 7 5
Loan Funds:
Secured Loans 109 118
Unsecured Loans 109 218 35 154
Deffered Tax Liability 36 28
TOTAL 1170 879
Application of funds:
Fixed Assets:
Gross Block 1159 771
less: Depreciation 319 274
Net block 841 496
Investments 156 229
Current Assets,Loans & Advances
Inventories 403 374
Sundry Debtors 211 200
Cash & Bank balances 183 69
Loans & Advances 302 1100 243 886
Current Liabilities 607 486
Provisions 354 284
961 769
Net Current Assets 140 117
Miscellaneous Expenditure 8 13
Deffered Tax Assets 25 24
TOTAL 1170 879
YTD June 09 YTD June 08
A Trust of 125 Years
Thank You
Investor Relations
Dabur India Ltd
Contact:+91-11-42786000
37 37
doc_434013528.pdf
Dabur (Dabur India Ltd.)is India's largest Ayurvedic medicine & related products manufacturer.Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions, from common cold to chronic paralysis. Dabur International, a fully owned subsidiary of Dabur India formerly held shares in the UAE based Weikfield International, which it disposed of on 25 June 2012
A Trust of 125 Years
Dabur India Limited
Corporate Profile
August, 2009
A Trust of 125 Years
Contents
Contents
Dabur India
Dabur India
-
-
Introduction
Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials
2 2
A Trust of 125 Years
Dabur today:Largest Indian Personal &
Healthcare Company
Eight Billion Rupee brands
3 3
Largest Herbal & Natural Portfolio
4000 Distributors in India
Retail Reach 2,500,000
5 Umbrella Brands
350+ products
4000 employees
15 Manufacturing Plants
Sizeable Presence in high growth
international markets
A Trust of 125 Years
Journey so far…
1884 The birth of Dabur
1972 The company shifts base to Delhi from Kolkatta
1986 Registered as Public Limited Company
1994 Listed on the Bombay Stock Exchange
1998 Professional team inducted to run the company
2000 Crosses Rs 1000 Crore Turnover
2003 Pharmaceutical Business de-merged to focus on core FMCG
2004 Profit exceeds Rs.100 Crore
2005 Acquires Balara strenthening Oral care & provided entry into Home care segment
2006 Dabur Figures in Top 10 Great Places To Work
2007 Dabur ranked among 'Asia's Best Under A Billion' enterprises by Forbes
2008 Acquired Fem Care Pharma entering the mainstream Skin care segment
2009 Strong growth momentum continued in spite of general economic downturn
The Founder :
Dr.S.K.Burman
Old Office at Calcutta
Corporate office, Ghaziabad
4 4
A Trust of 125 Years
Rs Mn
Rs Mn
Strong Financials
EBITDA Margin
Net Income
Sales
CAGR-18%
CAGR-30%
5 5
12356
14170
17565
20803
23963
28341
0
5000
10000
15000
20000
25000
30000
FY04 FY05 FY06 FY07 FY08 FY09
1065
1558
2142
2817
3329
3913
0
500
1000
1500
2000
2500
3000
3500
4000
4500
FY04 FY05 FY06 FY07 FY08 FY09
13.3
15.3
17.1
18.1
18.5
18.3
10
12
14
16
18
20
22
FY04 FY05 FY06 FY07 FY08 FY09
KEY FINANCIALS : 2008-09
Market Cap $ 2.3 Bn
Cash Flow Rs.3.6 Bn
EBIDTA Margin 18.3%
PAT/Sales 13.8%
RONW 48.4%
A Trust of 125 Years
FY2008-09 : Highest organic growth in the decade
Balsara acquisition
added 10% to
topline in FY06
Robust growth driven 13% by volume and around 5% by price increases
7.0%
9.2%
12.0%
13.8%
-3.8%
24.0%
14.7%
15.2%
18.3%
18.3%
0
500
1000
1500
2000
2500
3000
F
Y
0
0
F
Y
0
1
F
Y
0
2
F
Y
0
3
F
Y
0
4
F
Y
0
5
F
Y
0
6
F
Y
0
7
F
Y
0
8
F
Y
0
9
6 6
A Trust of 125 Years
Baddi (HP)
Jammu (J&K)
Silliguri (WB)
Newai (Raj)
Silvassa
Katni, (MP)
Uttaranchal
Sahibabbad (UP)
Manufacturing Locations-India
Manufacturing Facilities
One of our largest
manufacturing
facilities at Baddi,
HP
Dabur Plant at Rudrapur,
Uttaranchal
First Ayurvedic
products company to
receive ISO 9002
certification
Certificate of ‘Good
Manufacturing Practices’
to manufacture Ayurveda
Drugs
HACCP Certificate
for food facilities at
Nepal and Rajasthan
7 7
A Trust of 125 Years
Birganj, Nepal Birganj, Nepal
Manufacturing Facilities
Manufacturing Locations-International
Egypt
Dubai
Bangladesh
Nepal
RAK
Nigeria
Key markets
Dabur’s new plant at
Ras Al Kheima
8 8
A Trust of 125 Years
Team of 50 Scientists’ including
Ayurvedic doctors, Pharmacists,
Agronomists, Botanists, Tissue Culture
specialists, etc
GREENHOUSE AT DABUR NEPAL DABUR RESEARCH FACILITIES
Research & Development Strengths
Agronomy Initiatives
Contract
cultivation of
herbs
Protecting
endangered
herbs
Green House
at Nepal
Technical
assistance to
Farmers
Ayurvedic Medicines
Personal Care
Foods
Home Care
Health Supplements
Strong New Product Development
9 9
A Trust of 125 Years
Distribution Network : Route to Market
Stockist
Stockist
Wholesalers
Wholesalers
Retail Trade
Retail Trade
Semi Wholesalers
Semi Wholesalers
Superstockist
Superstockist
Institutions
Institutions
D.C
D.C
Shoppers & Consumers
Shoppers & Consumers
Factory
Factory
Substockist
Substockist
Retail Trade
Retail Trade
Dabur reaches a total of 2.5 Mn retail outlets; Direct Reach is 0.7 Mn outlets
Modern
Trade
Modern
Trade
10 10
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples
Consumer Staples
-
-
Snapshot
Snapshot
Business overview
Brand/Growth Strategy
Financials
11 11
A Trust of 125 Years
Consumer Staples Sector Snapshot
OTC Products
4%
Food Products
43%
Personal Care
22%
Others
5%
Household
4%
Fabric Care
12%
Hair Care
8%
Baby Care
2%
Category wise share of the sector
Industry Size (US$ 18 bn)
Source : AC Nielsen annual for CY07
Source : AC Nielsen
Rural growth rates inching towards Urban
Source: AC Nielsen
3%
9%
10%
12% 12%
15%
-8%
-1%
1%
16%
10%
12%
-10%
-5%
0%
5%
10%
15%
20%
CY03 CY04 CY05 CY06 CY07 CY08
Urban Rural
Rural India contributes 33% of the overall FMCG sector.
49
47
4
OTC Non Food Food
FMCG industry size pegged at US$ 18 bn. FMCG industry size pegged at US$ 18 bn.
Personal care & Food products dominate Personal care & Food products dominate
the sector the sector
Home,Hair & Skin care have low Home,Hair & Skin care have low
penetration & huge potential penetration & huge potential
Steady growth in most categories Steady growth in most categories
12 12
A Trust of 125 Years
Category Penetration
Move
Rural
Penetration
To Urban
levels
I
n
c
r
e
a
s
e
U
r
b
a
n
P
e
n
e
t
r
a
t
i
o
n
H
i
g
h
e
r
O
v
e
r
a
l
l
P
e
n
e
t
r
a
t
i
o
n
Low penetration levels : room for sustained growth
Source : Industry Data, Indian Readership Survey 2008 Round 2
* The category size is representative of Glucose market
Hair Oil 22,631 94 96 93
Health supplements* 1,681 8 14 5
Packaged fruit Beverages 12,000 16 30 10
Mosquito repellants 66,70 32 58 20
Washing powders 47,027 90 93 89
Washing cakes/ bars 28,269 88 91 86
Utensil cleaners NA 29 59 16
Shampoo 19,173 51 62 46
Toilet Soap 62,170 91 96 89
Tooth Paste 24,835 56 79 45
Tooth Powder 4,551 31 26 33
Fairness Creams NA 16 20 14
Cold Creams NA 1 3 1
Skin Cream 24,551 23 30 19
Branded Baby Oil NA 2 2 1
Rural % Category Size (Rs Mn) Category Name All India % Urban %
13 13
A Trust of 125 Years
Source- Published results for year ending 31.03.08; *Year ending 31.12.07; **Year ending 30.06.09 annualized; ***Year ending 31.12.04
^ updated for results announced until 5
th
May, 2009
Key players
USD Million
14 14
Company Key Categories Sales Profit Market Cap
Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4383 536 13,417
Tata Tea Tea 1011 115 697
Nestle India Ltd* Food, Beverages, Infant nutrition 915 119 4438
Dabur India Ltd Personal, Health & Homecare, Foods 590 82 2479
Britannia Industries Ltd Biscuits 706 38 729
Colgate Palmolive (I) Ltd Oral Care & Toiletries 374 61 1734
Marico Ltd. Hair care, Food, Skincare 478 38 1104
Glaxo Smithkline Consumer* Consumer Health Care 309 38 940
Cadbury India Ltd*** Chocolates, Confectionery, Nutrition 270 25 Unlisted
Reckitt Benckiser (India) Ltd**** Home Care 168 21 Unlisted
Godrej Consumer Products Ltd Hair Care, Soaps 290 36 1187
Procter & Gamble** Feminine Hygiene, personal care 157 35 462
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Business overview
Brand/Growth Strategy
Financials
15 15
A Trust of 125 Years
Consumer Care Division
Personal care,Health care,Home Care & Foods
Consumer Health Division
Over the counter (OTC) & Ethical Ayurvedic portfolio
International Business Division
Health & Personal care in International markets
Business Structure
16 16
CHD
7%
IBD
19%
Others
1%
CCD
73%
A Trust of 125 Years
5%
10%
12%
23%
14%
11%
14%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
H
a
i
r
C
a
r
e
O
r
a
l
C
a
r
e
H
e
a
l
t
h
S
u
p
p
l
e
m
e
n
t
s
D
i
g
e
s
t
i
v
e
s
&
C
a
n
d
i
e
s
B
a
b
y
O
i
l
s
&
S
k
i
n
C
a
r
e
H
o
m
e
C
a
r
e
F
o
o
d
s
Hair care the largest category continued its strong performance
throughout the year with 23% in FY09.
Foods category bounced back with 23% growth in Q4FY09 and thus
growing by 14% for the year.
CCD Category performance
17 17
A Trust of 125 Years
Consumer Care Division Overview
FPD HCPD
2003-2004
Balsara
2006-2007 2007-2008
Foods*
CCD
2008-2009
FEM**
Above break up & Financials do not include Fem care acquisition
FPD:Family Products Division
HCPD: Health Care Products Division
•Foods division was a 100% subsidiary of DIL
** Acquisition under completion
18 18
Oral Care
18%
Foods
13%
Hair Care
32%
Home Care
6%
Baby & Skin Care
5%
Digestives & Candies
7%
Health Suppl
19%
A Trust of 125 Years
Brand Architecture
• Starting from Ayurveda, the company successfully ventured into herbal arena
becoming the ‘Herbal Specialist’
• While herbal businesses form the core with 85% of revenues, the company’s growth
ambitions are not limited by it.
• A robust brand architecture ensures that the core values remain intact
Herbal space
Natural / Non-herbal
space
Dabur
Herbal
Healthcare
Vatika
Premium
Personal
Care
Hajmola
Tasty
Digestives
Real
Fruit
Beverages
Balsara
Home Care
New brand
Ayurvedic
Skin care
Rs13.2 bn Rs2 bn Rs1.1bn NA Rs2.2 bn Rs 1 bn
BRAND ARCHITECTURE
•Brand size based on sales in India
FEM
Fairness Skin
solutions
Rs 1 bn
19 19
A Trust of 125 Years
Hair Oils
Dabur
17%
Marico
33%
Bajaj
6%
Others
41%
Dey's lab
3%
Rs 5.6 bn Dabur brands
Rs 33 Bn Market Size
Enriched Coconut oil Perfumed Hair oil Coconut Hair Oil
Mustard Amla hair Oil
20 20
Test Launch: Amla
Flower Magic
A Trust of 125 Years
Shampoos
Rs 1.3 bn Dabur brands
Rs 20 Bn Market Size
HUL
51%
L'Oreal
4%
P&G
26%
CavinKare
12%
Dabur
7%
Range of Vatika shampoos New launch-Vatika
Conditioners
New launch-Vatika balck shine
shampoo
21 21
Re-launch of Vatika Dandruff
Control Shampoo with 3
variants
A Trust of 125 Years
Oral care
Anchor
2%
Others
14%
Unilever
21%
Colgate
48%
Dabur
15%
Rs 4.7 bn Dabur brands
Rs 31 Bn Market Size
Toothpaste with extract of
Babool tree
Ayurvedic herbal
toothpaste & powder
Premium Herbal
Toothpaste
* Dabur’s share of oral care is 13% in value terms and
15% in volume terms
22 22
A Trust of 125 Years
Health supplements
Baidyanath
12%
Emami
9%
Zandu
7%
Dabur
62.4%
Others
9%
Rs 3.5 bn Dabur brands
Rs 6 Bn Market Size
Above Market data for Health Supplement
Chyawanprash Market
Glucose
Honey
Chyawanprash & its variants
23 23
Glucose:New Brand
ambassador-Cricket player
Zaheer Khan
Dabur Honey : New
campaign with AB
and MS Dhoni
A Trust of 125 Years
Digestives
Dabur
32%
Knoll
19%
Glaxo
14%
Pfizer
13%
Others
22%
Rs 1.5 bn Dabur brands
Rs 5 Bn Market Size
Digestive tablets
Hajmola candies Mint based remedy for
digestion
24 24
A Trust of 125 Years
Home Care
Odonil Room fresheners
New Range of Surface cleaners
Sanifresh Toilet Cleaners
Dabur
94%
Others
6%
Air freshener category
Dabur
91%
Others
9%
Mosquito repellant Cream
category
Rs 1 bn Dabur brands
Rs 20 Bn Market Size
Above Market data for Entire Home care
Category
25 25
A Trust of 125 Years
Foods
2%
8%
47%
36%
6%
Dabur Foods Tropicana Godrej Xs Fresh Gold Others
Range of Real Activ Juice
(100% Juice)
Consumer awareness though
campaigns
Rs 2.5 bn Dabur brands
Rs 5 Bn Market Size
26 26
Test Launching Burrst:New
Drinks brand in 1st week of
May
A Trust of 125 Years
Consumer Health Division
CHD Portfolio
OTC
(57%)
ETHICAL
(43%)
Generics
Branded
Products
Classicals
Branded Ethicals
Tonic
OTC portfolio:
Branded portfolio-
-Dabur Honitus-Syrup & Lozenges for
Cough/Cold,Badam Tail, Dabur active
antacid, Dabur Active Blood Purifier.
Generics-
Ashokarishta & Dashmularishta (Women's
health), Lavan Bhaskar Churna
Range of over 260 products
Focusing on multiple therapeutic areas.
Distribution coverage of 100,000 chemists,
~12000 vaidyas & 12000 Ayurvedic pharmacies
Partnership with Institutions such as
Dhanwantry Ayurvedic Hospital for clinical trials
Thrust on OTC portfolio to leverage the huge
self medication market
27 27
A Trust of 125 Years
International Business
Global Aspirations
Started as an Exporter
Focus on Order fulfillment
through India Mfg.
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
Building scale-19% of overall
Dabur Sales (FY09)
High Levels of Localization
Global Supply chain
1980’s
Early 90’s
1995-2000
Now
IBD over the years
(Rs.Mn)
CAGR +25%
Target markets divided into 3 categories :
Focus, Potential and Opportunistic Markets
Leveraging ‘naturals wave’ to market Dabur
products in GCC & Africa
Extending Dabur equity in neighboring
markets
28 28
241
1282
1807
2258
2917
3760
5250
0
1000
2000
3000
4000
5000
6000
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Brand/Growth Strategy
Financials
29 29
A Trust of 125 Years
EXPAND.. INNOVATE.. ACQUIRE..
Deeper penetration
and expansion into
new markets
• South India
•Global markets
Natural
Global markets
Current categories
Ayurveda
Herbal
North East&West India
South India
New categories
Others
CATEGORIES
MARKETS
Entering new categories
Skincare
Home care
OTC Healthcare
PLATFORMS
Herbal platform in the
personal care & health care
products
Leveraging ayurveda expertise
Growth Strategy
30 30
A Trust of 125 Years
Entering new Categories
Skin Care : New 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
Expanding across geographies
Overseas markets : 19% of overall company;target to sustain higher growth rates
South India : Increased contribution from 6% to 10% ; targeting 15% of domestic revenues
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
Targeting Inorganic opportunities
Market Entry : Acquisitions critical for entry into new markets and building scale in existing categories
Synergies : Should be synergistic and make a good strategic fit
Geographies : domestic and global opportunities
Expansion strategy
31 31
A Trust of 125 Years
Contents
Contents
Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials
Financials
32 32
A Trust of 125 Years
Topline/PAT performance: FY2008-09
(Including Retail)
2396
2834
2100
2200
2300
2400
2500
2600
2700
2800
2900
FY08 FY09
18.3%
Rs. Crore
Sales : FY 2008-09 vs 2007-08
333
391
300
320
340
360
380
400
FY08 FY09
17.5%
PAT : FY 2008-09 vs 2007-08
Sales increased by 18.3% to
touch Rs.2834 crore during FY09.
Consolidated PAT grew at
17.5% in FY09 touching Rs.391.2
crore.
33 33
A Trust of 125 Years
PAT performance: FY2008-09
(Excluding Retail)
341.42
408.7
300
320
340
360
380
400
420
FY08 FY09
19.7%
Rs. Crore
PAT growth excluding Retail
at 19.7% for FY09.
The newly set up Retail
Venture incurred loss of Rs 17.9
crore during FY09
34 34
A Trust of 125 Years
DIL Consolidated financials- P&L Q1FY10
35 35
DIL (Consolidated) P&L Q1FY10 Q1FY09 YoY (%)
Gross Sales 748 612 22.1%
Less:Excise Duty 5.4 8.4
Net Sales 742.7 604.0 23.0%
Other Operating Income 4.7 7.1 -34.4%
Material Cost 353 300 17.6%
% of Sales 47.2% 49.0%
Employee Costs 60 53 12.2%
% of Sales 8.0% 8.7%
Ad Pro 114 81 39.7%
% of Sales 15.2% 13.3%
Other Expenses 98 82 19.5%
% of Sales 13.1% 13.4%
Other Non Operating Income 3.2 4.9 -34.8%
EBITDA 126.1 99.1 27.2%
% of Sales 16.9% 16.2%
Interest Expenses 3.7 4.0 -8.9%
Depreciation/Amortization 12.3 11.7 5.8%
Profit Before Tax (PBT) 110.1 83.4 31.9%
Taxes 19.0 12.7 50.1%
Profit After Tax (PAT)(Before exceptional
item) 91.0 70.7 28.7%
% of Sales 12.2% 11.6%
Profit After Tax(After exceptional Items) 91.0 70.7 28.8%
Profit After Tax (After Extra ordinary item
& Minority Int) 91.4 70.7 29.4%
EPS (Rs) 1.06 0.82
A Trust of 125 Years
DIL Consolidated financials- Balance Sheet
Q1FY10
(In Rs cr)
36 36
DIL (Consolidated) Balance Sheet
Sources Of Funds
Shareholders' Fund:
Share Capital 86.6 86.5
Reserves & Surplus 823 606
910 692
Minority Interest 7 5
Loan Funds:
Secured Loans 109 118
Unsecured Loans 109 218 35 154
Deffered Tax Liability 36 28
TOTAL 1170 879
Application of funds:
Fixed Assets:
Gross Block 1159 771
less: Depreciation 319 274
Net block 841 496
Investments 156 229
Current Assets,Loans & Advances
Inventories 403 374
Sundry Debtors 211 200
Cash & Bank balances 183 69
Loans & Advances 302 1100 243 886
Current Liabilities 607 486
Provisions 354 284
961 769
Net Current Assets 140 117
Miscellaneous Expenditure 8 13
Deffered Tax Assets 25 24
TOTAL 1170 879
YTD June 09 YTD June 08
A Trust of 125 Years
Thank You
Investor Relations
Dabur India Ltd
Contact:+91-11-42786000
37 37
doc_434013528.pdf