DABUR INDIA LTD DABUR INDIA LTD INVESTOR PRESENTATION INVESTOR PRESENTATION March’15 1
Indian Econom y Real GDP Growth Rate Inflation Trend 8.0% 7.8% 7.5% 8 8.9% % 6.5% 7.4%* 5.5% 5.4% 6.7% 5.2% 5.1% 4.38% 4.3% 4.9% 3.7% CPI 4.5% WPI 2.4% 1.8% 0.1% 0.0% -0.4% FY11 FY12 FY13 FY14 FY15E Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Source: CSO & RBI estim ates Source: Office of Econom ic Adviser, CSO estim ates IIP Trend IIP Trend 3.9% Early signs of revival in the economy as 3.4% 2.5% reflected in improving Macroeconomic 1.7% indicators indicators 0.5% % 0.4% IIP has started to report growth June'14 July'14 Aug'14 Sep'14 Oct'14 Nov'14 Dec'14 -4.2% 2 Source: Office of Econom ic Adviser, CSO estim ates *Basis revised base year -2011-12.
FMCG Sector – Recent Perform ance India FMCG Sector Growth Rate Growth Val YA (%) Growth Vol YA (%) Price Led Growth (%) I i i l i Initial signs of revival in FMCG f i l i FMCG 13% 13% Consumption. However, consumer 11% 10 % demand still sluggish in most 9 % 8 .0 % 11% categories categories 10 % 6 % 6 % 6 % 6 % 5% % 6 % 8 % 5% 4 .5% 5% 5% 3.5% 2% 1% 3% 3% 2% 2% Q2'12-13Q1'13-14Q2'13-14Q3'13-14Q4'13-14Q1'14-15Q2'14-15Q3'14-15 ' ' ' ' ' ' ' ' Consum er Confidence Index and Global Rank #1 #1 #1 #2 #2 Rank 129 128 126 121 115 Inspite of the slowdown India has occupied the top spot as per has occupied the top spot as per global consumer confidence index study by Nielsen Q4CY13 Q1CY14 Q2CY14 Q3CY14 Q4CY14 3 Source: Nielsen
FMCG Sector – Long Term Potential Intact Indian Consum er industry is expected to grow ~ 12-17% pa over the next 5-6 years… Source: CII – ‘FMCG roadm ap to 2020 estim ates’, Barclays Research estim ates S C ‘ CG d i ’ l h i The Indian FMCG sector could touch a market size between Rs. 4,000 to Rs. 6,200 billion by 2020 4
Dabur Overview One of the fastest Dedicated to the 130 years of Trust and growing FMCG growing FMCG Health and Well Being Health and Well- Being Excellence E ll Com panies of every household 19 world class World’s largest in Sales of Rs. 70 .7 billion m anufacturing Ayurveda and natural and profits of Rs. 9.1 facilities catering to healthcare healthcare billion in FY20 13-14 billion in FY20 13 14 needs of diverse needs of diverse m arkets Strong overseas presence with 32% contribution to consolidated sales consolidated sales 5.3 m n retail outlet reach in India 14 billion Rupee brands 5
Key Milestones 18 8 4- Established 1994- Com es out 1940 - Personal Care by Dr. S K Burm an y with first public p th through Ayurveda h A d at Kolkata issue 20 0 0 20 0 0 - Crossed the Crossed the 1998 1998 - Inducted I d t d 20 0 5 - Dabur 10 0 0 Crores Professionalised aquired Balsara turnover m ark Managem ent 20 12 - Dabur 20 10 - Dabur 20 0 8 - Dabur crosses Billion- acquired Hobi & acquired Fem Care Dollar turnover Nam aste Pharm a m ark Dabur ranked 46 in BT- Dabur ranked # 1 in Dabur ranked am ongst Dabur ranked am ongst 50 0 list of India's Most 5 personal care and # 22 personal care and # 22 the Top 5 Indian the Top 5 Indian India's Most Adm ired India's Most Adm ired Valuable Com panies; up overall in the Top 50 com panies with the Com panies by Forbes 21 places brands by Millward Brown best Board of Directors India 6
Dabur - Perform ance Snapshot “Robust p rofita ble grow th “ b fi bl h Sales tra nsla ting into sup erior in INR bn sha rehold er returns” 70.7 61 5 61.5 52.8 40.8 Market Capitalization 33.9 28.1 in INR bn 466.4 313.1 313.1 FY09 FY FY FY10 FY11 FY FY12 FY FY13 FY FY14 FY 238 .9 18 5.4 Profit after Tax 167.2 137.8 8 5.4 13.0 in INR bn in INR bn 11.0 9.1 FY0 9 FY10 FY11 FY12 FY13 FY14 Mar'15 9.0 7.6 6.4 7.0 5.7 5.0 3.9 5.0 3.0 1.0 7 FY09 FY10 FY11 FY12 FY13 FY14 -1.0
Global Business Footprint UK Turkey y Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka Key markets Manufacturing Facilities Our stra tegy is to loca lize m a nufa cturing, sup p ly cha in a nd p rod uct offerings to suit consum er requirem ents in ea ch geogra p hy 8
Continue to build bigger brands INR 5 bn+ INR 1 bn+ 14 bra nd s w ith turnov er of INR 1bn + 9
Dom estic Distribution Structure Factory Factory (Carry & Forward Agents) (Carry & Forward Agents) Depot Depot Depot Depot Insti Stockists Insti Stockists Stockists Stockists Super stockists Super stockists Modern Trade Modern Trade Stockist Stockist Wholesalers Wholesalers Wholesalers Wholesalers Sub stockists Sub stockists Sub stockists Sub stockists Insti customers Insti customers Retail trade Retail trade Rural trade Rural trade Shoppers & Consumers Shoppers & Consumers Tota l rea ch a t 5.3 m n reta il outlets, one of the highest a m ong FMCG com p a nies 10
Business Structure Dabur India Ltd. Dom estic (68 %) • Dom estic FMCG (65%) • Others (3%) O (3%) International (32%) • Orga nic Interna tiona l (21%) • Na m a ste La bs (8 %) ( ) • Hobi Group (3%) Note: % Note: % figure in brackets indicate % figure in brackets indicate % share in Consolidated Sales for FY14 share in Consolidated Sales for FY14 * Others include Retail, Commodity exports etc 11
Sales by Business Vertical Intl Dom estic Others Dabur FMCG Business Consol Consol (3%) (3%) (65%) (32%) Health HPC Foods Care (48%) (18%) (18%) ( (34%) ) Dom estic International FMCG(Contribution)* Business(Contribution)* Health HPC 28% Foods Middle East care Health 21% Supplem ents Africa Foods 18 % 18 % 16% Skin Care Asia Digestives 5% 6% 22% America OTC & Oral Care Oral Care Ethicals Ethicals 14 % 10 % 13% Europe Hair Care 23% 12 Hom e Care *As per FY14 figures 6%
Healthcare (HC) Category Key Products and Brands Market Position Chyawanprash: Honey: Glucose: # 1 in Ayurvedic Tonics Tonics (Chyawanprash) Health Supplements # 1 in branded Honey # 2 in Glucose i Gl Herbal Digestives: g # 1 in Herbal Digestives Digestives Digestives Baby Care: Cough & Cold: Women’s Health: # 1 in Ayurvedic OTC & OTC OTC Ethicals 13
Hom e & Personal Care (HPC) Category C t Key Products and Brands Market Position Hair Oils: Shampoo: # 2 in Hair Oils # 4 in Sham poos 4 S p H i C Hair Care Toothpastes : Toothpowder: # 3 in Toothpastes Oral Care # 2 in Toothpowders Toothpowders Air Freshener: Mosquito Rep. Cream: Toilet Cleaner: q p # 1 in Air Fresheners # 1 in Air Fresheners # 1 in Mosquito Home Care Repellant Cream s # 2 in Toilet Cleaners # 2 in Toilet Cleaners Skin Bleaches Rose Water Creams & Lotions # 1 in Skin # 1 in Skin Skin Care Lightening 14 (Bleaches)
Foods Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Culinary range is under Hommade brand Key Products and Brands Market Position Juices & Nectars: Juices & Nectars: # 1 in Fruit Juices # Offer wide range of beverages-More th than 30 variants i t Culinary: 15
Distribution Initiatives Project Core Project Double • To enhance chemist coverage and • To enhance chemist coverage and Rolled out during 2012-13 to expand Rolled out during 2012-13 to expand • • direct coverage in rural markets provide further impetus to our Health Care portfolio This led to strong volume led growth in • • Initial roll out in urban markets • Initial roll out in urban markets rural business with improved product rural business with improved product across 150 towns width and profitability • Direct Chemist Coverage: Continued focus on improving coverage, • ▫ ▫ range and availability of our products in d il bilit f d t i Old 1 72 lacs Old- 1.72 lacs rural areas ▫ Current-2.12 lacs • 350 resources added at front end 438 8 8 438 8 8 4 2254 40 510 • Stra tegy 30 0 91 178 8 2 14 8 65 14 8 65 Increase in Coverage- for better Increased Range- Mar'11 Mar'12 Mar'13 June'14 Sep'14 Dec'14 throughput g p S g Selling of health care brands Dabur - Direct Village Coverage 16
Focus on Innovations Healthcare Chocolate Chyawanprash y p Hajm ola Variants j Liver Protection& Functioning g & Ratnaprash Hom e & Personal Care Hom e & Personal Care Foods Foods Odonil Blocks- Anm ol Jasm ine Keratex Oil Night Queen Coconut Water Drinking Yogurt and White Rose & Supa Fruits
Visibility Drive in Modern Trade Hajm ola Real Hom m ade Red Toothpaste Gulabari Vatika 18
Impactful Activations & Digital Initiatives Hom e & Personal Care Foods Heathcare Captain of Indian Football team Captain of Indian Football team endorsed Real at a press Vatika Brave & Beautiful Website for Honey Diet Plan conference Sanifresh 700 se 7 kadam 19
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