dabur india limited corporate profile meet/100096_20090701.pdf · dabur india-introduction consumer...

A Trust of 125 Years

Dabur India LimitedCorporate Profile

July, 2009


ContentsContents

Dabur IndiaDabur India--Introduction Introduction

Consumer Staples-Snapshot

Business overview

Brand/Growth Strategy

Financials

22


Dabur today:Largest Indian Personal & Healthcare Company

Eight Billion Rupee brands

33

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


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

44


Rs Mn

Rs Mn

Strong Financials

EBITDA MarginNet Income

Sales

CAGR-18%

CAGR-30%

55

1235614170

17565

20803

23963

28341

0

5000

10000

15000

20000

25000

30000

FY04 FY05 FY06 FY07 FY08 FY09

1065

1558

2142

2817

3329

3913

0500

10001500200025003000350040004500


13.3

15.3

17.118.1 18.5 18.3

10

12

14

16

18

20

22


KEY FINANCIALS : 2008-09

Market Cap $ 2 Bn

Cash Flow Rs.3.6 Bn

EBIDTA Margin 18.3%

PAT/Sales 13.8%

RONW 48.4%


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

3000FY

00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

66


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

77


Birganj, NepalBirganj, Nepal

Manufacturing Facilities

Manufacturing Locations-International

EgyptDubai Bangladesh

Nepal

RAK

Nigeria

Key markets

Dabur’s new plant at Ras Al Kheima

88


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

99


Distribution Network : Route to Market

StockistStockist

WholesalersWholesalers

Retail Trade Retail Trade

Semi WholesalersSemi Wholesalers

SuperstockistSuperstockist

InstitutionsInstitutions

D.CD.C

Shoppers & ConsumersShoppers & Consumers

FactoryFactory

SubstockistSubstockist

Retail TradeRetail Trade

Dabur reaches a total of 2.5 Mn retail outlets; Direct Reach is 0.7 Mn outlets

Modern Trade

Modern Trade

1010


ContentsContents

Dabur India-Introduction

Consumer StaplesConsumer Staples--Snapshot Snapshot

Business overview


Financials

1111


Consumer Staples Sector Snapshot

OTC Products4%

Food Products43%

Personal Care22%

Others5%

Household4%

Fabric Care12%

Hair Care8%

Baby Care2%

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.

4947

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 sectorthe sector

Home,Hair & Skin care have low Home,Hair & Skin care have low penetration & huge potentialpenetration & huge potential

Steady growth in most categoriesSteady growth in most categories

1212


Category Penetration

MoveRural

PenetrationTo Urban

levels

Incr

ease

Urb

an P

enet

rati

on

Hig

her

Ove

rall

Pene

trat

ion

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 93Health supplements* 1,681 8 14 5Packaged fruit Beverages 12,000 16 30 10Mosquito repellants 66,70 32 58 20Washing powders 47,027 90 93 89Washing cakes/ bars 28,269 88 91 86Utensil cleaners NA 29 59 16Shampoo 19,173 51 62 46Toilet Soap 62,170 91 96 89Tooth Paste 24,835 56 79 45Tooth Powder 4,551 31 26 33Fairness Creams NA 16 20 14Cold Creams NA 1 3 1Skin Cream 24,551 23 30 19Branded Baby Oil NA 2 2 1

Rural %Category Size (Rs Mn)Category Name All India % Urban %

1313


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 5th May, 2009

Key playersUSD Million

Company Key Categories Sales Profit Market Cap Hindustan Unilever Ltd*^ Soaps, Detergents, Personal Care, Foods 3269 420 10,215

Tata Tea Tea 1011 115 697

Nestle India Ltd*^ Food, Beverages, Infant nutrition 865 113 3400

Dabur India Ltd^ Personal Care,Healthcare, Foods 567 80 1820Britannia Industries Ltd Biscuits 555 27 553

Colgate Palmolive (I) Ltd Oral Care & Toiletries 343 40 1276

Marico Ltd.^ Hair care, Food, Skincare 478 38 814

Glaxo Smithkline Consumer*^ Consumer Health Care 309 38 673

Cadbury India Ltd Chocolates, Confectionery, Nutrition 195 10 Unlisted

Reckitt Benckiser (India) Ltd*** Home Care 168 21 Unlisted

Godrej Consumer Products Ltd^ Hair Care, Soaps 278 35 722

Procter & Gamble**^ Feminine Hygiene, personal care 157 35 462

1414


ContentsContents



Business overview Business overview


Financials

1515


Consumer Care DivisionPersonal care,Health care,Home Care & Foods

Consumer Health DivisionOver the counter (OTC) & Ethical Ayurvedic portfolio

International Business DivisionHealth & Personal care in International markets

Business Structure

1616

CHD

7%

IBD

19%

Others

1%

CCD

73%


5%

10%12%

23%

14%11%

14%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Hai

r Ca

re

Ora

l Ca

re

Hea

lth

Supp

lem

ents

Dige

stiv

es &

Cand

ies

Baby

Oils

&

Skin

Car

e

Hom

e Ca

re

Food

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

1717


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

1818

Oral Care 18%

Foods13%

Hair Care 32%

Home Care6%

Baby & Skin Care 5%

Digest ives & Candies7%

Health Suppl 19%


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

DaburHerbal

Healthcare

VatikaPremium Personal

Care

HajmolaTasty

Digestives

RealFruit

Beverages

BalsaraHome Care

New brandAyurvedicSkin care

Rs13.2 bn Rs2 bn Rs1.1bn NA Rs2.2 bn Rs 1 bn

BRAND ARCHITECTURE

•Brand size based on sales in India

FEMFairness Skin

solutions

Rs 1 bn

1919


Hair OilsDabur 17%

Marico33%Bajaj

6%

Others41%

Dey's lab3%

Rs 5.6 bnDabur brandsRs 33 BnMarket Size

Enriched Coconut oil Perfumed Hair oil Coconut Hair Oil Mustard Amla hair Oil

2020

Test Launch: AmlaFlower Magic


Shampoos

Rs 1.3 bnDabur brands

Rs 20 BnMarket Size

HUL51%

L'Oreal4%

P&G26%

CavinKare12%

Dabur7%

Range of Vatika shampoos New launch-Vatika Conditioners

New launch-Vatika balck shine shampoo

2121

Re-launch of Vatika Dandruff Control Shampoo with 3 variants


Oral care

Anchor2%

Others14%

Unilever21% Colgate

48%

Dabur15%


Rs 31 BnMarket 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

2222


Health supplements

Baidyanath12%

Emami9%

Zandu7%

Dabur62.4%

Others9%


Rs 6 BnMarket Size

Above Market data for Health Supplement

Chyawanprash Market

Glucose Honey Chyawanprash & its variants

2323

Glucose:New Brand ambassador-Cricket player

Zaheer Khan

Dabur Honey : New campaign with AB and MS Dhoni


Digestives

Dabur

32%

Knoll

19%

Glaxo

14%

Pfizer

13%

Others

22%


Rs 5 BnMarket Size

Digestive tablets Hajmola candiesMint based remedy for digestion

2424


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 bnDabur brands

Rs 20 BnMarket Size

Above Market data for Entire Home care Category

2525


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 5 BnMarket Size

2626

Test Launching Burrst:NewDrinks brand in 1st week of May


Consumer Health DivisionCHD Portfolio

OTC (57%)

ETHICAL (43%)

Generics Branded Products Classicals Branded EthicalsTonic

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

2727


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

2828

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


ContentsContents



Business overview

Brand/Growth Strategy Brand/Growth Strategy

Financials

2929


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

CATEGORIESMARKETS

Entering new categoriesSkincare Home careOTC Healthcare

PLATFORMS

Herbal platform in the personal care & health care products

Leveraging ayurveda expertise

Growth Strategy

3030


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 geographiesOverseas 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 opportunitiesMarket 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

3131


ContentsContents



Business overview


Financials Financials

3232


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.

3333


PAT performance: FY2008-09

(Excluding Retail)

341.42

408.7

300

320

340

360

380

400

420

FY08 FY09

19.7%

Rs. CrorePAT growth excluding Retail

at 19.7% for FY09.The newly set up Retail

Venture incurred loss of Rs 17.9 crore during FY09

3434


DIL Consolidated financials- P&L Q4&FY09

3535

Rs Crores

DIL (Consolidated) P&L Q4FY09 Q4FY08 YoY (%) FY09 FY08 YoY (%)Gross Sales 737 615 19.9% 2,834 2396 18.3%Less:Excise Duty 5 8 29 35

Net Sales 732 606 20.6% 2805 2361 18.8%Other Operating Income 4.7 9.8 -52.4% 26 24 6.6%

Material Cost 342 280 22.4% 1376 1115 23.4%

% of Sales 46.4% 45.5% 48.6% 46.5%

Employee Costs 59 53 10.6% 235 199 17.8%

% of Sales 8.0% 8.7% 8.3% 8.3%

Ad Pro 96 74 29.4% 343 296 16.1%

% of Sales 13.1% 12.1% 12.1% 12.3%

Other Expenses 104 101 3.3% 381 342 11.5%

% of Sales 14.2% 16.4% 13.4% 14.3%

Other Non Operating Income 4.3 4.0 7.8% 21.3 10.0 112.1%

EBITDA 138.5 111.6 24.1% 517 443 16.7%% of Sales 18.8% 18.2% 18.3% 18.5%

Interest Expenses 8.3 3.5 135.0% 23 17 38.2%

Depreciation/Amortization 14.4 11.7 22.9% 49 42 17.0%

Profit Before Tax (PBT) 115.8 96.4 20.2% 445 384 15.7%Taxes 10.5 13.1 -19.9% 54 51 6.6%

Profit After Tax (PAT)(Before exceptional item) 105.3 83.2 26.5% 391 334 17.1%

% of Sales 14.3% 13.5% 13.8% 13.9%

Profit After Tax(After exceptional Items) 105.3 82.5 27.7% 391 333 17.4%

Profit After Tax (After Extra ordinary item & Minority Int) 104 79.6 31.0% 391 332.9 17.5%EPS (Rs) 1.21 0.92 4.52 3.85


DIL Consolidated financials- Balance Sheet FY09(In Rs cr)

3636

DIL (Consolidated) Balance SheetSources Of FundsShareholders' Fund:Share Capital 86.5 86.4

Reserves & Surplus 731 531

818 618

Minority Interest 5 5

Loan Funds:Secured Loans 96 98

Unsecured Loans 132 228 2 99

Deffered Tax Liability 32 27

TOTAL 1081 749

Application of funds:Fixed Assets:

Gross Block 859 730

less: Depreciation 299 264

Net block 559 465

Investments 347 203

Current Assets,Loans & AdvancesInventories 375 302

Sundry Debtors 178 172

Cash & Bank balances 148 77

Loans & Advances 249 951 223 774

Current Liabilities 483 458

Provisions 325 274

808 732Net Current Assets 143 42

Miscellaneous Expenditure 9 14

Deffered Tax Assets 24 24

TOTAL 1081 749

YTD March 09 YTD March 08


Thank You

Investor RelationsDabur India Ltd

Contact:+91-11-42786000

3737

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