Dabur India-Introduction Dabur India Introduction
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Dabur India Limited Corporate p Profile June, 2010 1 1 Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 2 2 Dabur India: Key Highlights 9 Leading personal and healthcare company : Among top four FMCG Companies in India 9 Revenue of more than Rs. 34.2 billion and profits of more than Rs. 5.0 billion in FY2009-10 9 g brand equity q y Strong Dabur is a household brand Vatika and Real are Superbrands Hajmola , Real & Dabur ranked among India India’s s Most Admired Brands 9 Wide distribution network covering 2.8 million retailers across the country 9 Strong overseas presence with 18% contribution to consolidated sales Eight Billion Rupee Brands 3 3 Strong Financials Sales in Rs. million 40000 35000 30000 25000 20000 15000 10,997 12,004 12,849 12,356 14,170 FY01 FY02 FY03 FY04^ FY05 17,565 20,803 23,963 28,341 34 167 34,167 10000 5000 0 FY06* FY07 EBITDA Margin (in %) FY10** in Rs. million 22.0% 20.0% 17.1% 18.0% 14 0% 14.0% FY09 Net Profit in % 16.0% FY08 18.1% 18.5% 18.3% 19 6% 19.6% 15.3% 13.3% 6000 4000 3000 2000 12.0% 5,032 5000 1,065 1 558 1,558 2,142 2,817 3,329 3,913 1000 10.0% 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY04 FY05 FY06 FY07 FY08 FY09 FY10 ^Sales show a decline in FY04 on account of de-merger of Pharma business *Balsara acquisition added 10% to topline in FY06 ** Fem acquisition added 3.5% to topline in FY10 4 4 Key Milestones 1884 1972 1986 1994 •The birth of Dabur •The company shifts base to Delhi from Kolkata •Registered as Public Limited Company p y •Listed on the Bombay Stock Exchange g 1998 2000 2003 2004 •Professional team inducted to run the company •Crosses Rs 1000 Crore Turnover •Pharmaceutical Business de-merged to focus on core FMCG •Profit exceeds Rs.100 Crore 2005 2006 2007 2008 •Acquires Acquires Balsara strengthening Oral care & provided entry into Home care segment •Dabur Dabur Figures in Top 10 Great Places To Work •Dabur Dabur ranked among 'Asia's Best Under A Billion' enterprises by Forbes •Acquired Acquired Fem Care Pharma entering the mainstream Skin care segment 2010 •Touched US$3.5 billion market cap 5 5 Strong Manufacturing Backbone Manufacturing Locations - Global Manufacturing Locations in India 4 3 Nepal Nigeria Egypt UAE Birganj, Nepal 7 2 1 Bangladesh 5 6 8 1 S hib b d U 1.Sahibabad, U.P P 2. Uttaranchal 3.Baddi, H.P 4.Jammu, J&K 5.Katni, M.P Manufacturing Facilities 6.Siliguri, W.B 7.Jaipur, Rajasthan 8 Sil assa 8.Silvassa 6 6 Robust Distribution Network Factory C&FA St ki t Stockist (Carry & Forward Agents) S Super St Stockist ki t Wholesalers Institutions & Modern trade Sub Stockist RETAIL TRADE CONSUMERS Direct + Indirect Reach covering 2.8 Mn Retail Outlets 7 7 Research & Development Strengths Dabur introduced more than 20 new products/variants during FY09 Collaboration with govt agencies New Product Development 9 Ayurvedic Medicines 9 Personal Care 9 Foods 9 Home Care 9 OTC Healthcare Team off 50 scientists T i ti t including Ayurvedic doctors, Pharmacists, Agro-nomists, Botanists, Tissue Culture specialists etc specialists, Environmental Initiatives Agronomy Initiatives 9 Effluent Management 9 Protecting endangered herbs 9 Alternate sources of energy 9 Technical assistance to farmers 9 Carbon footprint mapping 9 Contract cultivation of herbs 9 Green House at Nepal 8 8 Ayurveda – The Science of Life 9 Ayurveda – The core philosophy 9 Traditional Indian system of medicine 9 Ayurveda, the ancient Indian system of medicine based on natural and holistic living, derives from two Sanskrit words - Ayu or life, and Veda or knowledge. 9 This Science of Life analyses the human body through a combination of the body, mind and spirit. 9 Originating nearly 5,000 years ago, Ayurvedic texts were researched by Dabur in its quest for natural remedies. Today, its application in modern life has been renewed th through h th the scientific i tifi research h and d validation lid ti undertaken d t k at Dabur 9 Dabur has 125 years experience & knowledge in Ayurveda 9 Successful extension of Ayurveda into personal care and OTC healthcare 9 Riding Ridi global l b l trend t d off “Back “B k to t Nature” N t ” 9 9 Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 10 10 FMCG Industry Snapshot Key Highlights FMCG Industry Size Indian FMCG industry around US$ 25 bn. size estimated at Personal care & Food products dominate the sector in Rs. billion b ll Many categories are currently small and offer huge potential FMCG Industry Size Steady double digit growth in the sector Growth rate (%) Rural India contributes c. 33% of the overall FMCG sector. MAT Dec 2008 MAT Dec 2009 1,023.9 1,161.1 13.4% Source: AC Nielsen FMCG Growth : Urban & Rural 20% 16% 12% 15% 9% 10% 5% 3% -1% 0% CY03 -8% -5% CY04 -10% Source: AC Nielsen 10% 15% Category-wise share of the Sector 18% 11% 12% 12% 10% Baby Care 2% Household Others 4% 5% OTC Products 4% Hair Care 8% Personal Care 22% 1% CY05 Urban CY06 CY07 CY08 CY09 Fabric Care 12% Food Products 43% Rural Source: AC Nielsen 11 11 India: Consumption Story Aggregate Consumption across Income Brackets in trillion, Indian Rupees, 2000 70 4x 34 Middle Class 17 7 10 Middle Class Source : Mckinsey Global Institute Analysis By 2025 2025, India is poised to become the world world's s fifth largest consuming country from current position of twelfth Note: Annual Income (in Indian Rupees, 2000): Globals >1,000,000; Strivers =500,000-1,000,000; Seekers=200,000-499,999; Aspirers=90,000-199,999; Deprived=<90,000 12 12 Penetration Levels: Sufficient Headroom 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 80% 77% 57% 42% 67% 59% 37% 32% 18% Toothpaste Shampoo Hair Oil Rural Penetration Skin Cream 18% Mosquito Repellants Urban Penetration Source: Industry Data, IIFL 9 Low penetration levels offer room for growth across consumption categories 9 Rural penetration catching up with urban penetration levels 13 13 Per Capita Consumption: Room for Growth India has low per capita consumption as compared to other emerging economies Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) in US$ in US$ 9 7.7 7.4 8 2.7 3 2.5 2.4 7 2 6 5 4 1.5 3.2 1.1 1.0 1 3 2 0.8 1 0.3 0.5 0.3 0 0 China Indonesia India Malaysia China h Thailand Indonesia d India d Malaysia l Thailand h l d Toothpaste – Per Capita Consumption (in US$) in US$ 3.5 2.9 3 2.5 2.0 2 1.5 1 1.0 0.5 0.4 0.5 0 China Indonesia India Malaysia Thailand Source: MOSL 14 14 Key Players: FMCG USD Million Company Key Categories Sales Profit Market Cap Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4,638 557 11,325 Nestle India Ltd* Food, Beverages, Infant nutrition 1,140 146 5,999 Dabur India Ltd Personal, Health & Homecare, Foods 753 112 3,516 Britannia Industries Ltd* Biscuits 760 34 872 Colgate Palmolive (I) Ltd* Oral Care & Toiletries 377 64 2,191 Marico Ltd. Hair care, Food, Skincare 591 51 1,526 Glaxo Smithkline Consumer* Consumer Health Care 427 52 1,570 Godrej Consumer Products Ltd Hair Care, Soaps 454 75 2,309 Procter & Gamble^ Feminine Hygiene, personal care 172 40 1,399 Source: Published results for year ending 31.03.10 *Year ending 31.12.09 Note: Market Cap. as of 17.05.10 ^Year ending 30.06.09 15 15 Dabur: Strong Presence in FMCG Categories Category Position Market Share Key Brands Hair Care 3 12% Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos O lC Oral Care 3 13% Red toothpaste, Babool, Meswak, Red toothpowder Skin Care 3 7% Chyawanprash 1 63% Dabur Chyawanprash Digestives 1 55% Hajmola Fruit Juices 1 45% Real Fruit Juices, Real Activ Dabur Gulabari, Fem, Dabur Uveda Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Ski care includes Skin i l d moisturizers, i t i f face cleaning, l i li ht i lightening, anti ti ageing i & other th skin ki care products d t Digestives includes herbal digestives 16 16 Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 17 17 Business Structure Dabur operates through three focused Strategic Business Units Business Unit Consumer Care Division Revenue Share Description FMCG portfolio comprising distinct businesses: • Personal Care • Health Care • Home Care • Foods four 72% Consumer Health Division Range of ethical and OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats 8% International I t ti l Business Caters to the health & personal care needs of customers across different international markets spanning Middle East, North & West Africa, South Asia, EU and US through its brands Dabur and Vatika 18% Note: Percentage share in revenue based on FY10 Financials ; Femcare included in Consumer Care Division 18 18 Consumer Care Division Overview HCPD FPD 2003-2004 Balsara Foods FEM 2006-2007 2007-2008 2008-2009 CCD FPD: Family Products Division HCPD: Health Care Products Division Balsara and Fem were acquisitions Foods division was a 100% subsidiary of DIL Category-wise Share of CCD Sales Home C Skin Care Care 5.2% 2.4% Foods 14 2% 14.2% Hair Care 31.4% CCD Sales - Historical in Rs. million Digestives 8.6% Health Suppleme nts 19 9% 19.9% Oral Care 18.2% Note: Percentage share in revenue for FY10 19 19 Brand Overview Health Care Personal Care Home Care Foods 20 20 Brand Architecture 9 Starting from Ayurveda, the company successfully ventured into herbal arena becoming the ‘Herbal Specialist’ 9 While herbal businesses form the core with 85% of revenues, the company’s growth ambitions are not limited by it. 9 A robust brand architecture ensures that the core values remain intact Brand Architecture Herbal Space Dabur Herbal Healthcare Vatika Premium Personal Care Hajmola Tasty Digestives Rs 17.0 bn Rs 3.9 bn Rs 1.4 bn Natural / Non-herbal Space Uveda Ayurvedic Skin care Real Fruit Beverages Balsara FEM Home Care Fairness Skin solutions NA Rs 3.0 bn Rs 1.3 bn Rs 1.0 bn B and size Brand si e pertains pe tains to FY2008-09 FY2008 09 sales in India and o overseas; e seas Fem had sales of about abo t Rs.30 Rs 30 mn in o overseas e seas markets ma kets in FY09 21 21 Consumer Care Categories Hair Oil Key Brands Market Share 7% 37% 16% 3% 6% 31% Bajaj Dabur Dey's Medical Emami Marico Others Dabur Amla: Largest brand in the portfolio Value Share-ACN Share ACN June June, 09 Vatika: Value added coconut oil Anmol Hair Oil: Value proposition Shampoo Key Brands Market Share 13.5% 11.2% 6.0% 23.8% 45.5% Cavinkare Dabur HUL P&G Value Share-ACN Mar, 10 Vatika range of shampoos Dabur Total Protect Ayurvedic Shampoo 22 22 Consumer Care Categories (Contd.) Oral Care Key Brands Market Share 14.3% 13.2% 49.7% 22.8% Colgate HUL Dabur Others Value Share Share-ACN ACN March March, 2010 Dabur Red: Toothpaste & Toothpowder Babool: Targeted at economy segment Meswak: Premium therapeutic toothpaste Health Supplements Key Brands Chyawanprash – Market Share 5.6% 7.9% 11.1% 12.7% 62 7% 62.7% Baidyanath Dabur Emami Value Share-ACN March, 2010 Zandu Others Dabur Chyawanprash: Largest selling health supplement in the country Dabur Glucose: 2nd largest player in the country Dabur Honey: Largest b branded d dh honey in the h country; growing category through replace sugar strategy 23 23 Consumer Care Categories (Contd.) Foods Key Brands Market Share 3.7% 15.5% 45% 36.4% Dabur Pepsi Priya Gold Others V l Value Sh Share-ACN ACN M May, 09 ; Fruit F it JJuice i category t Real: Flagship beverages brand Real Activ: Range of 100% pure juice Real Burrst: New fruit Drink brand Skin Care Key Brands Market Share* 18.0% 58.9% 3.2% 6.4% 6.6% 6.8% Hindustan Lever Loreal Emami Cavin Care Dabur Others *Company estimates; Includes Fem skin care portfolio Gulabari range of rose based skin care products: Moisturizer, Face freshener & Rose water Fem Skin care : Acquired recently 24 24 Consumer Care Categories (Contd.) Digestives Key Brands Market Share 37% 55% 8% Hajmola Satmola Hajmola: Flagship brand for branded Digestives Others Hajmola tasty digestive candy Value a ue Share-ACN S a e C March, a c , 2010 0 0 Home Care Key Brands Air Fresheners – Market Share 20% 26% 20% 5% 30% Odonil Air wick Premium Ambipur Others Value Share-ACN March, 2010 for Aerosols category Odonil: Air freshner range: Largest brand in the portfolio Odomos: Mosquito repellant skin cream Sanifresh: Toilet cleaner 25 25 Fem Care 9 Fem Care was acquired on June 25, 2009 and has been merged with Dabur India Ltd. retrospectively from April 1, 2009 9 Fem Care grew by 16.6% during 1st July 2009 to 31st March 2010 inspite of portfolio rationalization 9 During the period 1st July 2009 to 31st March 2010, PAT of Fem Care increased to Rs.18.5 crore led by expansion in EBITDA margins from 12% to 28% K Key Initiatives I iti ti driving d i i growth: th 9 Continuous media presence across key categories with national TV campaign for Fem Herbal Bleach, Oxy bleach & Hair Removal System (HRS). 9 Making brands more visible across trade channels. channels 9 Building the superiority of FEM bleaches through seminars & demonstrations 9 Parlor channel being leveraged and scaled up; parlour seminars held in key cities Oxy Bleach International Fashion Week in Media Visibility Drives 26 26 Consumer Health Division CHD Structure Description Dabur is the largest OTC Healthcare company in India (Source: Nicholas Hall’s OTC Yearbook 2008) CHD: Repository of Dabur’s Ayurvedic Healthcare knowledge Plans underway to build a comprehensive strategy for a greater push in OTC Health space Range of over 260 products Focusing on multiple therapeutic areas. Distribution coverage of 100,000 chemists, ~120,00 120 00 vaidyas & 12,000 12 000 Ayurvedic pharmacies Partnership with Institutions such as Dhanwantry Ayurvedic Hospital for clinical trials Thrust on OTC portfolio to leverage the huge self medication market OTC portfolio Branded p 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 OTC (64%) ETHICAL (36%) 9 Generics 9 Tonic 9 Branded Products 9 Classicals 9 Branded Ethicals Honi- Mint Extension of Honitus P di H Pudin Hara :Leading L di Digestives OTC brand Focus on Dabur Ayurveda: Generating equity for Ethical portfolio First ever Ad spend on Hingoli in Seven years In shop activations 27 27 International Business Division Started as an Exporter Focus on Order fulfillment through India Mfg. 1980’s 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-20% of overall Dabur Sales (FY09) High Levels of Localization Global Supply chain 2003 Onwards Today Early 90’s Highlights Dabur’s overseas business contributes 18% to consolidated sales led by CAGR of 29% in last 6 years F Focus markets: k t GCC Egypt Nigeria Bangladesh Nepal U.S. High level of localization of manufacturing and sales and marketing Leveraging the “Natural” preference among local consumers to increase share in personal care categories Sustained investments in brand building and marketing High Growth in IBD in Rs. million New products contributing significantly to overseas sales 28 28 International Business – Product Portfolio Existing Products Hair Oils NPDs and Relaunches Vatika Shampoos Vatika Conditioners Vatika Hamam Zaith – Hair Fall Control Dabur Herbal Toothpaste Hair Creams Hair a Treatments eat e ts Vatika Hair Oil V tik DermoViva Vatika D Vi S Soaps 29 29 Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 30 30 Growth Strategy EXPAND DABUR INDIA LIMITED ACQUIRE INNOVATE THREE PRONGED STRATEGY FOR SUSTAINING GROWTH 31 31 Expansion Strategy Strengthening new categories 9 Skin Care: Ayurvedic skin care range g under a new brand launched; Acquisition of Fem 9 OTC Healthcare: Leveraging Ayurveda knowledge for a range of OTC herbal products 9 Fruit Drinks and Culinary: Entry into the fast growing fruit drinks category leveraging the Real franchise Targeting inorganic opportunities 9 Market Entry: y Acquisitions q critical for building scale in existing categories & markets 9 Synergies: Should be synergistic and make a good strategic fit 9 Geographies: Opportunities in focus markets Strong innovation programme 9 Contribution: New products to contribute 5-6% of revenues 9 Focus Categories: New product activations planned up in all categories 9 Renovation: R i P Periodic i di b brand d renovations to keep older products salient Expanding across geographies 9 Overseas markets: 20% of overall company; target to sustain higher growth rates 9 South India: Increased contribution from 7% to 12%; Continued focus on the relevant portfolio to grow contribution 32 32 Index Dabur India India-Introduction Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 33 33 Financial Performance – FY2010 (Audited) Sales: FY10 v/s FY09 EBITDA Margin: FY10 v/s FY09 in Rs. million 40000 28,341 30000 20000 34,167 10000 0 FY09 FY10 PAT*: FY10 v/s FY09 in Rs. million 6000 4000 3,912 5,032 19.6% 18.3% FY09 FY10 9 Sales growth led primarily by continued double digit volume growth 9 Fem Care Pharma which was acquired in 20082008 09 and merged with DIL w.e.f. April 1, 2009 added about 3.5% in FY10 to topline. 9 EBITDA margin expanded by 130 bps during FY10 led by y lower input p costs. 2000 0 FY09 20.00% 19.50% 19.00% 18 50% 18.50% 18.00% 17.50% FY10 * PAT refers to Net Profit after Minority Interest 9 PAT increased by 28.6% during FY10 due to strong topline, improving gross margins and operating leverage despite higher ad spend & tax provisioning 34 34 Stock Performance & Shareholding Pattern Dabur’s Stock Price vis-à-vis NIFTY Shareholding Structure* FIIs, 14.5 % Banks/FIs/ Insurance Cos., 8.0 % Indian Public P bli and d Others, 6. 6% Prom oters, 69.0% Mutual Funds, 1.9 % Prices rebased to 100 *As on April 30, 2010 Dabur Outperformed the index by 26% during the period May 2009 to April 2010 35 35 Accolades Ranked 25th most valuable brand in the list of India's 100 Most Valuable Brands, by 4Ps. Dabur India Ltd has been awarded the Top Marketer A Award d ffor 2009 iin th the Consumer Goods category by Pitch magazine Listed in Forbes’ 200 Best Under-A-Billion Companies List Dabur India Ltd was ranked the Business Leader in the FMCG Personal Care Category at the NDTV Profit Business Leadership Award 2008 Ranked 79th in 'Super 100' list announced by Business India Ranked 182 in ET-500, the annual listing of India's Blue Chip companies by The Economic Times. Also ranked as the fourth largest pure-play FMCG company in the list. Ranked R k d 28th iin ET-Brand ET B d Equity Most Trusted Brands 2009 list. Voted as the fourth Most Liked Health Brand in the country in consumer survey conducted by 'Complete Wellbeing' magazine 36 36 Investor Relations Dabur India Ltd Contact:+91-11-42786000 37 37
