INVESTOR PRESENTATION Dabur India Ltd
FMCG Sector Overview •FMCG is the fourth largest sector in the Indian economy and has grown at an annual average of 11 per cent over the last decade •The current size of the Indian FMCG Market is around USD 45 bn •The urban segment is the largest contributor to the sector- accounting for two-thirds of total revenue •The sector is likely to touch sales of USD 100 bn by 2020 India FMCG Industry USD bn 103.7 47.3 44.9 36.8 34.8 30.2 24.2 21.3 17.8 2007 2008 2009 2010 2011 2012 2013 2015(E) 2020(E) Source: IBEF 1
FMCG Sector Recent Performance FMCG Growth Rate Value Growth Price growth Volume growth 10.3% The FMCG Industry has started to 8.0% show a pick up in demand 6.1% 5.3% 7.0% 4.7% 4.5% 4.6% 3.3% 3.5% 1.5% 0.6% Consumer Confidence Index Q1'14-15 Q2'14-15 Q3'14-15 Q4'14-15 #1 #2 #1 #1 #1 Source: AC Nielsen 130 129 128 126 Inspite of the slowdown India has continued to occupy the top spot for the last 4 quarters as 121 per global consumer confidence index study by Nielsen Q1CY14 Q2CY14 Q3CY14 Q4CY14 Q1CY15 2
FMCG Growth Drivers FMCG Growth Drivers Category Penetration * Rising income driving 91% purchases Toothpaste 63% 84% Hair Oil 72% Growth of Favourable 69% Modern Trade Shampoo 56% demographics & Ecommerce Urban Growth 45% Toilet Cleaner 12% Drivers Rural 21% Glucose 10% 13% Toothpowder 22% Evolving Low penetration consumer and 4% Consumption lifestyle Branded Baby Oil 2% *Penetration Data pertains to FY12 Source : IBEF 3
Dabur Overview Dabur Vatika B&B was awarded the Grand Prix Direct Award in the Goa Fest 2015. 130 years of Trust and Excellence One of the fastest growing FMCG Companies Dabur ranked amongst the Dedicated to the Health and Well- Top 5 Indian companies with Being of every household the best Board of Directors World’s largest in Ayurveda and natural healthcare 20 world class manufacturing Dabur ranked #1 in personal facilities catering to needs of diverse markets care and #22 overall in the Top 50 brands by Millward Strong overseas presence with 31% Brown contribution to consolidated sales 4
Key Milestones • Established by Dr SK Burman in Kolkata 1884 • Came out with first public issue 1994 • Inducted professional management 1998 • Crossed the 1000 crs turnover mark 2000 • Dabur acquired Balsara 2005 • Acquired Fem Pharma 2008 • Acquired Hobi and Namaste 2010 • Dabur crosses billion dollar turnover mark 2012 5
Global Business Footprint UK Turkey Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka Key markets Manufacturing Facilities 6
Domestic Distribution Structure Total reach at 5.3 mn retail Factory outlets, one of the highest among FMCG companies Depot (Carry & Forward Agents) Super stockists Insti Stockists Stockists Modern Trade Stockist Sub stockists Wholesalers Rural trade Retail trade Insti customers Shoppers & Consumers 7
Dabur Performance Snapshot Sales in INR bn Market Cap 78.1 70.7 61.5 in INR bn 52.8 466.5 40.8 313.1 238.9 FY11 FY12 FY13 FY14 FY15 185.4 167.2 Profit After Tax in INR bn FY11 FY12 FY13 FY14 FY15 10.7 9.1 7.6 6.4 5.7 Robust profitable growth translating into superior shareholder returns FY11 FY12 FY13 FY14 FY15 8
Business Structure Domestic FMCG (66%) Domestic (69%) Others (3%) Dabur India Organic Ltd. International (22%) International Namaste Labs (31%) (6%) Hobi Group (3%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY15 9
Sales By Business Vertical Domestic FMCG Business FY15 Healthcare Health Supplements (33%) 18% Foods 19% Digestives Skin Care Domestic 6% 5% HPC(48%) FMCG* Oral Care OTC & 14% Ethicals 9% Hair Care 23% Foods(19%) Home Care 6% International Sales FY15 Europe 12% Middle International Business America East 16% Region Wise Breakdown 32% Asia Africa 17% 23% * Breakdown of Domestic FMCG business basis FY15 Sales 10
Continue to build bigger brands INR 1bn+ INR 10bn+ 14 brands with turnover of INR 1bn+ with 3 brands over 10bn 11
International Business Overview 24226 In INR Mn 23108 Middle South Key Markets Africa 18338 East Asia 16161 8992 Hair Skin Oral Key Categories Care Care Care FY11 FY12 FY13 FY14 FY15 •Comprises 31% of Consolidated Sales in FY15 •Localized supply chain network for efficient business operations •Sustained investment in brands and innovation to grow the topline •Business foray had been entirely organic since 1980’s, until FY2010-11 when we acquired Hobi Group and Namaste Labs 12
International- Competitive Position Hair Cream* 36.4% 36.0% No.1 Position in the Hair Cream 35.2% Category in KSA, UAE and Egypt KSA UAE Egypt 65.7% 65.2% No.1 Position in the Hair Oils Hair Oils* 27.4% Category in KSA & Egypt and No.2 in UAE KSA UAE Egypt *Volume Market Share Mat 2014 13
International Brand Architecture 14
Growth Strategy 1.Continued Focus on Innovation 2.Building Consumer Connect 3.Distribution Expansion 4.Focus on Health and well being 15
1.Continued Focus on Innovation 16
Recently launched India Dabur Baby Keratex Hair Oil Hajmola Chatpat Odomos Roll On Massage Oil International Vatika Argan Vatika Oil Dermoviva Face Vatika Brillantine replenishment Mask Cream AD 17
Product Evolution Chyawanprash Red Toothpowder Hajmola Amla Hair Oil 18
2.Building Consumer Connect 19
Advocacy Initiatives Key Advocacy Initiatives across categories will continue to build consumer connect •Mega comedy talent hunt which saw an overwhelming response from people •Auditions for this talent hunt was organised across various towns to identify the best in stand-up comedy. • Dil Se Dua and Walk to the Moon activations drew good response from consumers •Joining Prime Minister Narendra Modi’s call for his ‘Swachh Bharat Mission’ , a cleanliness drive took place across public conveniences of Sulabh International using Sanifresh 20
Digital Campaigns Vatika Brave & Beautiful campaign Fem Star Face Contest Sanifresh -700 se 7 kadam With a continued increase in the number of Internet users, Digital Media being leveraged for brand building and consumer connect 21
3.Distribution Expansion 22
Distribution Expansion • Rolled out in FY13 to expand direct coverage in rural markets • Direct Village coverage has increased from 14000 villages in FY11 to 44,000 Project Double villages in FY15 • We plan to increase the coverage to 50,000 villages in FY16 and 60,000 in FY17 • Aimed at leveraging the potential of Top 130 towns which contribute to 50% of urban consumption Project 50-50 • Segregating the grocery channel teams for wholesale & retail • Initiative is in line with renewed focus on urban markets • To enhance chemist coverage and provide further impetus to our Health Care portfolio Project Core • Direct Chemist Coverage is currently 213,000 villages • Strategy is to increase coverage and range for better throughput 23
Visibility Initiatives in Modern Trade Real Hajmola Hommade Vatika Red Toothpaste Gulabari Key Initiatives in Modern Trade & E-Commerce enhancing product visibility and availability 23
4.Focus on Health and Well being 24
Health & Well Being Health & Well being - The underlying theme across the portfolio • Ayurveda – Dabur’s core philosophy • Pioneered extension of Ayurveda into personal care and OTC healthcare Innovations in Focus on Ayurvedic Dabur Baby Massage Oil Dabur Honey OTC- No.1 in Women Healthcare Free of paraffin and parabens - Weight Management Health Tonics Safe for babies Category 25
Health & Well Being Health & W ell Being focus has been extended to HPC and Foods Red Tooth Paste- Healthy Is Focused on Ingredient Happy- Effectiveness Campaign theme for Real Juices Odomos Protection from Dengue Activ Fiber based Sanifresh- Toilet Cleaner To safeguard the health of the Juices for a family by ensuring hygiene healthy lifestyle 25
Share Price Performance , Dividend & Shareholding Share Holding Pattern As on 31 st March 2015 Share Price Trend Others DII 6% 5% FII 21% Promoters 68% Dividend History* 250% 250% 200% 200% 200% 175% 175% 175% 150% 150% 140% 130% 115% FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 *Bonus issue in FY07 & FY11 28
Financial Highlights FY2014-15 16.6% 14.5% 10.7% Growth PAT Sales EBITDA Rs. 1066 crs Rs. 7806 crs Rs. 1474 crs 26
Margin Profile FY 2014-15 52.3% 18.9% 13.7% 51.8% 18.3% 13.0% FY14 FY15 FY14 FY15 FY14 FY15 PAT Margin Gross Margin EBITDA Margin 70bps 55bps 63bps 27
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