Investors Presentation Dabur April 06

8/7/2019 Investors Presentation Dabur April 06

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1 Dabur.Celebrate Life

DABUR INDIA LIMITEDDABUR INDIA LIMITED

PRESENTATION TO INVESTORSPRESENTATION TO INVESTORS

April 2006


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AGENDA

INDUSTRY SCENARIO

COMPANY BACKGROUND

BUSINESS PROFILE

GROWTH STRATEGY

KEY FINANCIALS & UPDATES


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4/364 Dabur.Celebrate Life

STRONG ECONOMIC OUTLOOK

3 YRS OF STABLE GROWTH

GDP GROWTH OF 8.1% IN HY 06

* Source : CSO

5.80%

4.00%

8.50%

6.90%7.50%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

FY02 FY03 FY04 FY05 FY06E

6.80%

-7.2%

9.60%

1.10%

6.60%

9.10% 8.90%

3.00%

6.80%

3.30%

7.80% 8.00%

6.60%

7.90%

9.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

FY02 FY03 FY04 FY05 FY06E

Years

Growthin%

Agriculture

Industry

Services



FMCG SECTOR PERFORMANCE - SNAPSHOT

GROWTH ACROSS

CATEGORIES

5%

12%

17%

26%

3%

30%

11%

8%

28%

3.3%

0%

5%

10%

15%

20%

25%

30%

35%

Perfumed

Hair Oil

Coconut Oil Normal

shampoo

Anti dandruff

shampoo

Toothpastes

Volume

Value

Source: AC Nielsen Retail Audit report Dec 05



AGENDA

INDUSTRY SCENARIO

COMPANY BACKGROUND

BUSINESS PROFILE

GROWTH STRATEGY



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DABUR GROUP ON GROWTH PATH

CAGR of 20% in revenues

0

200

400

600

800

1000

1200

1400

1600

1800

1980

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

Dabur

India

Dabur

Pharma

Dabur Pharma was part of Dabur India prior to 2003; Pharma business demerged into separate

company in 2003-04



OUTPERFORMING THE SECTOR

Outperformed the industry in 2004Outperformed the industry in 2004--05, 200305, 2003--04 and 200204 and 2002--0303

Dabur vs Industry: Sales Growth

6%

12%

16%

5%

7%

-0.30%

-5%

0%

5%

10%

15%

20%

FY03 FY04 FY05

Years

Growth(%) Dabur

Industry

Dabur v s Industry: PAT Growth

32%37%

46%

10% 10%9%

0%

10%

20%

30%

40%

50%

FY03 FY04 FY05

Years

Growth(%) Dabur

Industry

Source : Published Results of FMCG companies



MANAGEMENT BEYOND PROMOTERS

1998A commitment of the Burmans to make Dabur a professionally

managed outfit move out of executive role

2002Board of Directors restructured to provide more room for

independent directors

2003Dabur Rated at GVC Level 2 by Crisil on Corporate

Governance & Value Creation on a scale of 8

2004Best practices strengthened in Board processes, Shareholder

Disclosures, Internal Audit and Risk Mapping

2005 Awarded by ICSI for Excellence in Corporate Governance



STRONG COMPETENCIES

The Range & The Value Add Brand Capabilities Strong Supply Chain Capability

Comprehensive

Range of Products

Proven Efficacy

Strong R&D and

Claims Support

Innovative Processes

Product AdaptationMedia & Advertising

Management

Modern Trade

Management

Calibrated NPD Process

Distribution reach of

around 1.6 million retail

outlets

Assured Supply of rare

medicinal herbs in a cost

effective manner

GMP certified

manufacturing facilities in

India & the Middle East



MANUFACTURING PRESENCE - India

Narendrapur,

W.B

Jammu,

J&K

Baddi, HP

Pantnagar,

Uttaranchal

Sahibabad,

UP

Jaipur,

Rajasthan

Manufacturing

Facilities

3 more facilities3 more facilitiesadded with Balsaraadded with Balsara

AcquisitionAcquisition

Over 27 CFAsOver 27 CFAs

across the countryacross the country

Silvassa

Birganj,

Nepal

Kanpur, UP


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MANUFACTURING PRESENCE THE BIGGER PICTURE

Offices

Branch

New Jersey,

U.S.A

London,U.K.

Moscow,Russia

Lagos,Nigeria

Cairo, Egypt

Dubai, U.A.E

Birganj, Nepal

Dhaka,

Bangladesh

Manufacturing

Facilities ..On the Expansion Mode..On the Expansion Mode


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AGENDA

INDUSTRY SCENARIO

COMPANY BACKGROUND

BUSINESS PROFILE

GROWTH STRATEGY



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DABUR INDIA LTD - BUSINESS DIVISIONS

CONSUMER CARECONSUMER CARE

DIVISIONDIVISION

Range of personal care andRange of personal care and

healt h care product shealt h care product s

CONSUMER HEALTHCONSUMER HEALTH

DIVISIONDIVISION

Range of Ayurvedic medicinesRange of Ayurvedic medicines

and OTC Ayurvedic product sand OTC Ayurvedic product s

INTERNATIONALINTERNATIONAL

BUSINESS DIVISIONBUSINESS DIVISION

Dabur s internat ional businessDabur s internat ional business

based in Dubaibased in Dubai

FOODS BUSINESSFOODS BUSINESSDabur Foods Lt d, a 100% subsidiaryDabur Foods Lt d, a 100% subsidiary

comprising Real Fruit Juices,comprising Real Fruit Juices,

Hommade cooking pastes & LemoneezHommade cooking past es & Lemoneez

BALSARA BUSINESSBALSARA BUSINESS

Thi s business having been recent lyThis business having been recent ly

acquired by Dabur, comprises ofacqui red by Dabur, comprises of

Oral Care and Household Product sOral Care and Household Product s

62%

8%

9%

10%

10%

(Breakup based on nine month period ending Dec 2005)


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DABUR INDIA LTD CCD REVENUE BREAKUP

For nine months ending Dec 05(including Balsara)

Baby & Skin Car e

8%

Digestives

10%

Health

supplements

23%

Home Car e

6%

Hair Car e

31%

Or al Car e

22%


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CCD HAIR OILS CATEGORY

Competitive ProfileKey Highlights

Hair Oils Category

Hair oil market estimated at Rs.15.5bn

Two large domestic players Dabur &

Marico dominate the category

Daburs Key Brands

Dabur Amla Hair Oil

Vatika Hair Oil

Anmol Sarson Amla Hair Oil

HLL3%Dabur

19%Keo Karpin

6%

Bajaj

4%Emami

4%

Marico28%Others

36%


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CCD SHAMPOO CATEGORY

Key Highlights Competitive Profile

Market size estimated at Rs. 10.5 bn

Low penetration and consumption

indicates category potential

Stabilization in the category afterprice wars

Daburs Key Brands

Vatika Henna Conditioning Shampoo

Vatika Anti Dandruff Shampoo

Anmol Silky Black Shampoo

Shampoo Category

HLL53%

Cavinkare

14%

P&G16%

Ayur

4%

Dabur6% Others

7%


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CCD ORAL CARE CATEGORY


Oral care market estimated at Rs.23bn

Toothpastes account for 80%,toothpowders are 20% of the category

Dabur with 12.4% share is no.3 playerafter HLL and Colgate

Balsara acquisition has enabled Dabur tobe present in all price segments oftoothpastes

Daburs key brands

Dabur Red Toothpowder

Dabur Red Toothpaste

Babool Toothpaste

Meswak ToothpastePromise Toothpaste

Oral Care Category

HLL

26%

Anchor

Health

5%

Others

9%

Dabur

12%Colgate

46%

Ajanta India

2%


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Chyawanprash category size estimated at

Rs 2 bn

Dabur pioneered the Chyawanprash

category over 30 years ago and is the

market leaderReceived Brand re-launch of the

Year award from IMA

Chyawanprash variant Chyavanshakti

launched

Dabur Honey : largest national player in

branded honey

Grown at a CAGR of 26 % during FY 03

FY 05


Chyawanprash Category

CCD HEALTH SUPPLEMENTS CATEGORY

Emami

9%

Zandu

7% Others10%

Dabur63%

Baidyanath

11%


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CCD DIGESTIVES & CONFECTIONERY CATEGORY


Digestives market including antacids isestimated at Rs.2.5 bn

Dabur defined the Herbal Digestivessegment using traditional Ayurvedic

remedies

Daburs Key Brands

Hajmola tablets

Hajmola candyHajmola Anardana

Pudin Hara

Hingoli

Digestives Category

Knoll

Pharmaceutical

22%

Pfizer

17%

Glaxo S mithkline

12%

Others

5%

Dabur

44%


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CONSUMER HEALTH DIVISION

Key HighlightsLivFit

One of the key businesses identified as a

growth driver

Over 260 medicines for treating a range ofailments and body conditions

All Dabur products undergo scientific tests

and clinical validation processes

Tie-ups with Ayurvedic hospitals and colleges

for research and promotion of Ayurveda

Dabur Ayurvedic Counters to reach out to

consumers directly

Thrust on OTC health care range in future

CoughCough

& Cold& Cold

Joint PainJoint Pain DigestivesDigestives Life StyleLife Style

DiseasesDiseases

WomenWomen

HealthHealth

Major OTCcategories


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FOODS BUSINESS DIVISION

Dabur

57%

Tropicana

40%

Others

3%

Competitive ProfileMarket Dynamics

Category estimated at Rs. 2.2 bn

Real Fruit Juice (Dabur) &Tropicana (PepsiCo) dominate thecategory

Increasing health consciousnessleading to category growth of 30%

Focus on innovation and stronggrowth

Daburs Key Brands

Real Fruit Juices

Real Activ Fruit & Veg Juices

Coolers

Hommade


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IBD A BACKGROUND

ExporterExporter

Prior to 1989

Focus on Order

Fulfillment

Domestic

Manufacturing

LocalLocal

ManufacturingManufacturing

Set up

Redrock,a

franchisee in 1989at Dubai

Focus on

Demand

generation

Local

ManufacturingInitiated in Dubai

and Egypt

InternationalInternational

businessbusiness

Acquired

Redrock and

renamed it Dabur

International

Limited Local

Operations

strengthened in

Dubai and Egypt

New

Manufacturingfacilities set up in

Nigeria and

Bangladesh

Stage 1

Stage 2

Stage 3

Stage 4

THE NEXTLOGICAL STEP

Strategy in place to

establish strong global

presence

High Levels ofLocalization in Focus

Markets

Continue to seed

Potential markets till

they are upgraded to

Focus Market

We are Here

Extending localExtending local

presencepresence


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POTENTIAL MARKETS AN OVERVIEW

DABUR IBDDABUR IBD POTENTIAL MARKETSPOTENTIAL MARKETS

South AsiaSouth Asia

Sri Lanka & Malaysia Iran, Iraq & SudanRussia & Other

CIS markets

ArabiaArabia CISCIS


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AGENDA

INDUSTRY SCENARIO

COMPANY BACKGROUND

BUSINESS PROFILE

GROWTH STRATEGY



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CATEGORIES

PLATFORMS

MARKETS

Natural

Global markets

Current categories

Ayurveda

Herbal

North East&West India

South India

New categories

Others

Herbal specialist platform Herbal platform in the personal care &

health care products

Leveraging Ayurveda expertise

Entering new categories

Skincare

Home care

OTC Healthcare

Deeper penetration andexpansion into new markets

South India

Global markets

THE GROWTH STRATEGY


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AGENDA

INDUSTRY SCENARIO

COMPANY BACKGROUND

BUSINESS PROFILE

GROWTH STRATEGY



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KEY HIGHLIGHTS: 2004-05

SalesSalesGrowth of 10.5% in DIL and

15.6% for consolidated

Net profitNet profit Growth of 46.3% in DIL and forconsolidated

ROCEROCE Increased from 34.9% to 38.7%

for DIL

Increased from 12% to 14.8%

for DILEBIDTA %EBIDTA %

Working CapitalWorking CapitalWent down from negative 5

days to negative 20 days

Div PDiv Payoutayout 250% dividend- payout ratio of48.3%


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Performance Snapshot YTD 31st Dec 05

CONSOLIDATED SALES GROWTH: 24.3%

DIL STANDALONE SALES GROWTH: 8.5%

CONSOLIDATED PAT GROWTH: 46.5%

DIL STANDALONE PAT GROWTH: 30%

CONSOLIDATED EBIDTA GROWTH: 42.3%

DIL STANDALONE EBDITA GROWTH: 31.8%

THE WAY FORWARD


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THE WAY FORWARD.

Continue to

outperform

category and

sector growth

Sharp focus on

operational

efficiencies tohelp reach

profit goals

Inorganic growth

strategy to

acquirebusinesses/

brands that

provide good

strategic fit and

synergies

Deliver

shareholder

value in termsof

Strong free cash

flows,

EVAROCE and

Dividend

payouts


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THANK YOU

Documents

Investors Presentation Dabur April 06