dabur india presentation
TRANSCRIPT
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Dabur is the market leader in consumer products based on the traditional Indian ayurvedic herbal system of medicine. It has a fairly well-diversified product profile.
It operates in the following consumer product categories: hair oil, health supplements (Chyawanprash and digestives), oral care, shampoos, baby care, skin care, home care, and foods (juices and cooking pastes).
Dabur’s core products, Chyawanprash (a health supplement), Dabur Amla Kesh Tel (herbal hair oil) and Hajmola (a digestive) dominate and have become generic in their categories, holding the majority market share in these segments.
Furthermore, Dabur has successfully demonstrated its ability to brand and market over-the-counter (OTC) products in new Ayurvedic segments such as cough syrups (for example, Honitus).
Dabur:Overview
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Dabur: Key Milestones
1884•Dr. SK Burman started an Ayurvedic Pharmacy in Kolkatta
1972•The company shifted base to Delhi from Kolkata
1986•Registered as Public Limited Company
1994•Listed on the Bombay Stock Exchange
1998•Professionalized with Burman Family handing over day to management
2003•Pharmaceutical Business de-merged to focus on FMCG business
2004•International Business set up in Dubai to tap overseas opportunity
2005•Acquired Balsara strengthening Oral care & gaining entry into Home care
2006•Dabur Figured in Top 10 Great Places To Work
2008•Acquired Fem Care Pharma entering mainstream Skin care
2010• Overseas acquisitions -Hobi Group, Turkey andNamaste Laboratories, US
2011•Crossed Rs. 40 bn mark in annual revenues and Market Cap of US $4 billion.
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Indian FMCG Market Segment
Baby Care2%
Household4%
OTC Products4%
Hair Care8%
Others5%
Fabric Care12%
Personal Care 22%
Food Products43%
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24.9 23
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Budget to Budget Sectoral Indices Return:
Top 5 Gain (In %) Top 5 Fall (In %)
Financial Year 2011 - 2012
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Category Analysis of Product Segment
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India’s Product Market Share peer comparision :Robust & Growing
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Category Analysis of Product Segment
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India’s Product Market Share peer comparision :Robust & Growing
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Dabur : Manufacturing facilities in tax-free zones
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Threat Of Substitute Products
Threat Of New
Entrants
Bargaining Power Of Customers
Bargaining Power Of Suppliers
Rivalry Among Existing Competitors
FMCG or Healthcare products esp. Ayurvedic, hardly have substitutes - so this threat is not very significant.
However, some product substitutes and similar products by competitors do exist.
Constantly re invent its existing product lines in order to cope up with the innovations of its competitors.
Advantages -125 year legacy, first mover, learning curve, brand loyalty, patents ,economies of scale
No significant entry barriers
Has increased dramatically due to – a wide range of available choices from competitors, both local and global
Dabur has to formulate strategy in such a manner to keep abreast with the increasing competition by improving the quality and reducing the prices over the period.
Very strong bond with the suppliers
Has a policy of accountability to stakeholders - be it customers, shareholders, employees or suppliers (who have a vested interest in making it all happen)
Key players and competitors of Dabur India currently are: Hindustan Unilever Ltd., Nestle India Ltd., Britannia Industries Ltd., Colgate Palmolive Ltd., Marico Ltd., Galaxo Smithkline consumer, Cadbury India ltd., Reckitt Benckiser Ltd., Procter & Gamble,Himani, Baidyanath and Zandu for Dabur Chyawanprash Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil
Dabur has to constantly relook its strategy and keep reinventing and branding, in order to maintain and increase its market presence
Dabur: Porter’s Five Force Analysis
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Dabur : Strategic Business Units
Consumer Care
Division
• FMCG portfolio comprising four
distinct businesses:
• Personal Care
• Consumer Health Care
• Home Care
• Foods
International Business Division
Catering to health and personal care needs of customers across different international markets spanning Middle East and Africa, South Asia, EU and U.S.
Consumer Health
Division
Range of ethical and OTC products that deliver the age‐old benefits of Ayurveda in modern ready‐to‐use formats
Note: Percentage share in revenue based on FY11 Financials ; Hobi and Namaste included in International Business Division
68%
22%
8%
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Dabur: Robust Distribution Network
Factory
C&FA
Super Stockist
Institutions & Modern trade
Wholesalers Sub Stockist
RETAIL TRADE
CONSUMERS
(Carry & Forward Agents)
Stockist
Direct + Indirect Reach covering 2.8 Mn Retail Outlets
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Team of scientists includingAyurvedic doctors, Pharmacists,Agronomists, Botanists, TissueCulture specialists, etc.
Strong New Product Development•Ayurvedic Medicines•Personal Care• Foods•Home Care•OTC Healthcare
Agro Biotech Initiatives•Protecting endangered herbs•Technical assistance to farmers•Contract cultivation of herbs•Green House at Nepal
Dabur introduced more than 20 new products/variants during FY11
Dabur Research FacilitiesAgronomy Initiatives : Greenhouse atDabur Nepal & Uttaranchal
Dabur: Research & Development Focus
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** Fem acquisition added 3.5% to topline in FY10
^^Hobi and Namaste acquisitions added 4% to topline in FY11
Dabur: Financial Performance
Sales Turnover
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19.90%19.80%
18.30%18.50%18.10%
FY07 FY08 FY09 FY10 FY11
In %
Dabur: Financial Performance
EBITDA Margin (in %)
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252.08
316.77
373.55
433.33
471.41
FY07 FY08 FY09 FY10 FY11
In Rs.Cr.
Dabur: Financial Performance
Net Profit After Tax
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66.07 67.51
47.98
61.62
44.16
FY07 FY08 FY09 FY10 FY11
Return On Capital Employed(%)
Dabur: Financial Performance
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2.92
3.67
4.32
4.98
2.71
FY07 FY08 FY09 FY10 FY11
In Rs.
Earning Per Share
Dabur: Financial Performance
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0.050.03
0.19
0.14
0.23
FY07 FY08 FY09 FY10 FY11
Dabur: Financial Performance
Debt Equity Ratio
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Market Capitalization
Dabur: Financial Performance
8629 8640 8651 8676
17407
FY07 FY08 FY09 FY10 FY11
in Rs. Cr.
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Dabur:Dabur:
P/E Ratio =
Market Share price
-----------------
Earnings Per Share
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Indian Promoter 68.64
Mutual Funds / UTI 0.29
FII 19.15
Foreign Promoter 0.06
FI/Bank/Insurance 5.42
Bodies Corporate 0.43
NRIs/OCBs 0.36
General public5.66
DIL Shareholding Pattern as on 31st December, 2011DIL Shareholding Pattern as on 31st December, 2011
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Our differentiation is the herbal and ayurvedic platform
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 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
Dabur: Growth Strategy
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Dabur ranked 182 in theET-500 list of India Inc'sHeroes
Dabur ranked 7th Most Respected Company in the Fast Moving ConsumerGoods space in India
Dabur ranked among Top 10 Best Companies To Work For in the Consumer Goods and Durables sector
Chyawanprash,Hajmola,Real chosen by Indian consumers as 'Power Brands 2010-11'
Dabur ranked 200 inthe Fortune India 500list that ranks India's500 largest corporations
Dabur ranked in the Top100 in Business Today'sBT 500 list of India's MostValuable Companies.Dabur was ranked 62
Dabur India Ltd awardedthe Best Run Award InSupply Chain by SAP
Dabur moves up totake the 78th spot inthe Super-100 list,released by BusinessIndia
Dabur : Recent Accolades
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Recommendations:
Dabur is the limited product appeal of traditional Ayurvedic products which needs to be taking full potential to tab its Ayurveda Heritage.
low tax rates because of factory locations in areas that are designated as tax benefit zones; any change in this law could affect earnings.
Dabur needs to be strong in Key Markets further expanding the distribution network, also reaching out to new geographies.
As the competition increases, Company needs to constantly invest in the brand in the form of higher A&P spendings.
As high competition intensity in consumer care division business, company should focus more on its healthcare (CHD), OTC and International Business over the next 2-3 years.
Rural Distribution Initiatives - ASTRA – Re-organizing the distribution network in Rural areas. (pilot successful in UP and Maharashtra).
Increasing supply chain efficiency through Improved Planning thus increasing operational Efficiency.
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http://www.moneycontrol.com/competition/daburindia/comparison/DI
http://myiris.com/shares/company/writeDet.php?icode=dabindia#rec
http://www.moneycontrol.com/financials/daburindia/ratios/DI
http://money.livemint.com/IID50/F100096/ShareHolding/Company.aspx
Bibliography:
http://www.moneycontrol.com/company-facts/daburindia/management/DI#DI
http://breport.myiris.com/RKGSSL/DABINDIA_20120202.pdf
http://www.dabur.com/Investors%20Relation-Performance%20at%20a%20Glance
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PRESENTED BY: MET – MFM SEM-II( 2011-2014)
NAME ROLL NO.
GULSHAN PATIL 94
RUPESH GAJARE 71
ASHISH OZA 119
JAIMIT THAKKAR 113
SIDDHESH KOTHARE 80
BONNIE LOBO 81
SANJAY NIHALANI 89