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DABUR INDIA LTD.

Bhargav Dudagadapa

Gautam Siddharth

Vamsikrishna Pedada

Ajinkya Patil

Eshant Gaur

Mohil Poojara

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DABUR- A COMPANY PROFILE

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Established in 1884, More than 125 years of Trust and Excellence

3rd largest FMCG company in India.

Strong Brand Equity Vatika and Real are Superbrands Dabur is a household Brand Hajmola, Real and Dabur Honey

amongst Most Admired Brands in India

Wide distribution network covering 3.4 Million Retailers across the country.

17 World class manufacturing plants

Strong Overseas Presence.

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VISION AND CORE VALUES

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DABUR- HISTORY

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GLOBAL FOOTPRINT

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FMCG SECTOR IN INDIA

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FMCG Industry and its Vibrant growth Rural Sector-Market of the Future FMCG sector is expected to grow at 12-17% upto

2020 and would touch a market value of 4000-6000 billion Rupees- Booz and Company

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POTENTIAL IN FMCG

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Low penetration levels offers growth opportunity across various Consumption Categories

Rural Penetration is low but catching up with the urban levels.

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MARKET LEADERS- FMCG SECTOR

Source:: Annual Report Dabur 2011-13

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DABUR IN FMCG SECTOR

Source: Investor Relations report Dabur-August 2012

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FINANCIALS OF DABUR

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Source: Investor relations Report—Dabur August 2012

FINANCIALS IN BRIEF

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Sales Growth was a combination of volume growth, price increase and marginal transaction gains

Material Costs eased with material costs at 50% of sales in Q1FY13 Vs 52.3% Q1FY12

Source:Annual Report dabur -2012

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Source:Annual Report dabur -2012

Current Market Capitalisation of Dabur (as on 25th September) ::21699 Crores

Share Price: 124.65

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BUSINESS STRUCTURE

Source: Annual Report 2011-12

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CONSUMER CARE-OVERVIEW

Source::Industry Relations Report Dabur August 2012

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CONSUMER CARE CATEGORIES

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OTC AND ETHICALS

Repository of Ayurveda

Range of over 260 products

Strong Distribution Network

Focus on growing OTC Portfolio

Inorganic growth as a way forward

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FOOD BUSINESS

25Market Share

Health Supplements

Food Products

Digestive Products

Oral Care

Mark

et

gro

wth

Hair Care

LowHigh

Hig

hLow

Skin Care

Home Care

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DABUR’S MERGERS AND ACQUISITIONS

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INTERNATIONAL BUSINESS

Focus Markets GCC, Egypt, Turkey, Bangladesh, Nepal, US

High level of localization of manufacturing and sales and Marketing

Sustained Investment in brand building and Marketing

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ACQUISITION OF HOBI GROUP

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ABOUT THE COMPANY

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PRODUCT PORTFOLIO

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COMPANY STRUCTURE

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TRANSACTION

Dabur International to acquire 100% stake in three companies in the group: Hobi Kozmetik Zeki Plastik Ra Pazarlama

First Overseas acquisition by Dabur Total Consideration = USD 69 million (about

Rs 324 crore)

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ACQUISITION RATIONALE

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ACQUISITION OF NAMASTE LABS, USA

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NAMASTE LABORATORIES Founded in 1996 Markets a portfolio of products under the brand

‘Organic root stimulator’ brands Present in the US, and in several other countries in

Africa, Middle East, Europe and Caribbean Region of North America

Revenue of $93 million for the calendar year 2010 with EBITDA of about $12 million

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TRANSACTION Deal value - $100 million (about Rs451 crore) all-

cash deal Dermoviva Skin Essentials – wholly owned subsidiary

of Dabur completed the acquisition 100% stake in Namaste Laboratories LLC and its

three subsidiary companies — Hair Rejuvenation & Revitalisation Nigeria Limited, Healing Hair Laboratories International, LLC and Urban Laboratories International, LLC along with its South

African arm 2nd overseas acquisition by DIL

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RATIONALE

Will serve as a gateway to the US market for Dabur’s portfolio of consumer products

Enhances profitability Increases stakeholders value Adds to Dabur's already strong presence in

Africa Dabur's entry into the fast-growing USD 1.5-

billion ethnic hair care products market in the US, Europe and Africa

38ACQUISITION OF FEM CARE PHARMA LTD

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FPCL

Fem Care Pharma Limited was promoted in 1982

Listed on Bombay Stock Exchange since 1994

The company markets bleach, liquid soaps and hair removing creams under the ‘Fem’ brand

Distribution reach covering 1,25,000 retail outlets; also covers 25,000 parlours directly

Highly profitable company with gross margins of over 60%

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DEAL STRUCTURE DIL has signed an agreement to acquire 72.15%

stake from the existing promoters. The transaction values FCPL at an equity value of Rs �

282.4 crores. Dabur to make an open offer to acquire further 20% �

of the FCPL’s equity share capital. Specialty chemicals division and some other �

investments will be bought over by promoters at book value or market value whichever is higher.

Acquisition to be funded through internal accruals of �Dabur India Ltd.

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RATIONALE Revenue Synergies

Brand provides access to DIL into fast expanding skin care market at mass price points

Higher reach/penetration for FCPL portfolio through DIL’s distribution network

Potential for extending FEM brand into other related skin care categories.

Potential in International markets: FEM & Jaquline brands have presence in GCC/Middle east markets which can be expanded.

FCPL’s parlour outreach to be leveraged for promoting Dabur’s personal care portfolio

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RATIONALE Cost Synergies

Combined business to unlock synergies : Sales & Distribution, Marketing, Supply Chain, Sourcing & Manufacturing

FCPL’s Baddi unit synergistic with DIL’s own skin care plans

Greater efficiencies possible in trade and distribution Combined Adpro spends can be leveraged to reduce

media costs FCPL’s R&D knowledge in skin care to supplement domain

knowledge for DIL

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DABUR ACQUIRES AJANTA PHARMA CAPSULE BRAND

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AJANTA 30 PLUS Launched in 1990 as an herbal energizer capsule Key brand for Ajanta Pharmaceuticals 30-Plus is one of the oldest and strongest health care

energizer brands in the country

The financial terms and conditions of the deal were not disclosed

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SWOT ANALYSIS

Strengths Competitive pricing Ayurvedic Repsitory. Strong Brand Image Strong Financially Strong Research and Innovation base. IT baseWeakness No direct Outlets. Seasonal Demands Lack of awareness about Ayurvedic Products

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Opportunities Growing Awareness of Ayurveda Improper and Unhealthy Food habits Growing Rural Markets Growing Middle Class Women and Beauty

Sector

Threats Allopathic Players; Advertising and

Distribution Growing Substitutes. Growing Health Tourism of Kerala.

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FUTURE OF DABUR INDIA

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RETAIL STORE

‘New U’ –A retail store for complete makeover of women The brands under NewU includes Dabur’s own private

label, NewU, range of affordably priced cosmetics such as nail paints, facial kits and hair accessory among others

Rising beauty consciousness. The roughly Rs 7,000 crore organized and unorganized

hair and beauty industry is growing at the CAGR of 35%. At this rate, it has the potential to become a Rs-30 ,000 crore business by 2015

Expansion of presence in Retail sector. FDI in Muli-Retail Online Marketing.

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CRITERIA OF M&A

Foreign Company/Indian Company Plans to expand/Already established retail

player in Beauty Care

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GROWTH IN AFRICAN MARKET

Africa Epi-Center of our growt Africa’s real compound GDP growth, about 5

percent annually between 2002 and 2009 Consumer Spending to be boosted by 35% till

2015. New plants in South Africa, Kenya and

Nigeria coming up. Products acquired through Namaste Lab and

Hoby have to be leveraged in these markets Manufacturing Plants to be set up in Egypt

and Nigeria Inorganic growth

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RURAL PLANS

FMCG Rural rush Low Penetration levels High Demand Revamped Distribution System in 2011. Need Sound logistics systems to supplement

Criteria Strong localized logistics system.

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Expansion of Health Suppliments Expansion of OTC & Ethicals Expansion of Ayurvedic Products

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Thank You