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DABUR INDIA LTD.    Bhargav Dudagadapa    Gautam Siddharth1   Vamsikrishna Pedada    Ajinkya Patil    Eshant Gaur    Mohil...
DABUR- A COMPANY PROFILE2
   Established in 1884, More than    125 years of Trust and Excellence   3rd largest FMCG company in    India.   Strong...
VISION AND CORE VALUES                         4
DABUR- HISTORY                 5
GLOBAL FOOTPRINT                   6
FMCG SECTOR IN INDIA7
 FMCG Industry and its Vibrant growth Rural Sector-Market of the Future FMCG sector is expected to grow at 12-17% upto ...
POTENTIAL IN FMCG                    9
 Low penetration levels offers growth opportunity across  various Consumption Categories Rural Penetration is low but ca...
MARKET LEADERS- FMCG SECTOR                                           11    Source:: Annual Report Dabur 2011-13
DABUR IN FMCG SECTOR                                                        12  Source: Investor Relations report Dabur-Au...
FINANCIALS OF DABUR13
FINANCIALS IN BRIEF                                                          14    Source: Investor relations Report—Dabur...
   Sales Growth was a                                combination of volume                                growth, price i...
 Current Market Capitalisation of Dabur (as on 25th  September) ::21699 Crores Share Price: 124.65                      ...
BUSINESS STRUCTURE  Source: Annual Report 2011-12   17
CONSUMER CARE-OVERVIEW   Source::Industry Relations Report Dabur August 2012   18
CONSUMER CARE CATEGORIES                           19
20
21
22
OTC AND ETHICALS                    Repository of Ayurveda                    Range of over 260                     prod...
FOOD BUSINESS                24
Health Supplements                                               Hair Care                    Home Care             High  ...
DABUR’S MERGERS AND     ACQUISITIONS26
INTERNATIONAL BUSINESS                       Focus Markets                       GCC, Egypt, Turkey, Bangladesh, Nepal, ...
ACQUISITION OF HOBI GROUP                            28
ABOUT THE COMPANY                    29
PRODUCT PORTFOLIO                    30
COMPANY STRUCTURE                    31
TRANSACTION   Dabur International to acquire 100% stake in three    companies in the group:     Hobi Kozmetik     Zeki ...
ACQUISITION RATIONALE                        33
ACQUISITION OF NAMASTE LABS, USA                                   34
NAMASTE LABORATORIES Founded in 1996 Markets a portfolio of products under the brand ‘Organic root  stimulator’ brands ...
TRANSACTION Deal value - $100 million (about Rs451 crore) all-cash deal Dermoviva Skin Essentials – wholly owned subsidi...
RATIONALE Will serve as a gateway to the US market for  Dabur’s portfolio of consumer products Enhances profitability I...
ACQUISITION OF FEM CARE PHARMA LTD   38
FPCL Fem Care Pharma Limited was promoted in 1982 Listed on Bombay Stock Exchange since 1994 The company markets bleach...
DEAL STRUCTURE DIL has signed an agreement to acquire 72.15% stake from  the existing promoters. ™The transaction values...
RATIONALE   Revenue Synergies       Brand provides access to DIL into fast expanding skin care market        at mass pri...
RATIONALE   Cost Synergies       Combined business to unlock synergies : Sales &        Distribution, Marketing, Supply ...
DABUR ACQUIRES AJANTA PHARMA CAPSULE BRAND                                             43
AJANTA 30 PLUS Launched in 1990 as an herbal energizer capsule Key brand for Ajanta Pharmaceuticals 30-Plus is one of t...
SWOT ANALYSISStrengths Competitive pricing Ayurvedic Repsitory. Strong Brand Image Strong Financially Strong Research...
Opportunities Growing Awareness of Ayurveda Improper and Unhealthy Food habits Growing Rural Markets Growing Middle Cl...
FUTURE OF DABUR INDIA47
RETAIL STORE   ‘New U’ –A retail store for complete makeover of women   The brands under NewU includes Dabur’s own priva...
CRITERIA OF M&A Foreign Company/Indian Company Plans to expand/Already established retail player in  Beauty Care        ...
GROWTH IN AFRICAN MARKET Africa Epi-Center of our growt Africa’s real compound GDP growth, about 5  percent annually bet...
51
RURAL PLANS FMCG Rural rush Low Penetration levels High Demand Revamped Distribution System in 2011. Need Sound logis...
 Expansion of Health Suppliments Expansion of OTC & Ethicals Expansion of Ayurvedic Products                           ...
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Dabur Profile
Mergers and Acquisitions

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  1. 1. DABUR INDIA LTD. Bhargav Dudagadapa Gautam Siddharth1 Vamsikrishna Pedada Ajinkya Patil Eshant Gaur Mohil Poojara
  2. 2. DABUR- A COMPANY PROFILE2
  3. 3.  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. 3
  4. 4. VISION AND CORE VALUES 4
  5. 5. DABUR- HISTORY 5
  6. 6. GLOBAL FOOTPRINT 6
  7. 7. FMCG SECTOR IN INDIA7
  8. 8.  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 8
  9. 9. POTENTIAL IN FMCG 9
  10. 10.  Low penetration levels offers growth opportunity across various Consumption Categories Rural Penetration is low but catching up with the urban levels. 10
  11. 11. MARKET LEADERS- FMCG SECTOR 11 Source:: Annual Report Dabur 2011-13
  12. 12. DABUR IN FMCG SECTOR 12 Source: Investor Relations report Dabur-August 2012
  13. 13. FINANCIALS OF DABUR13
  14. 14. FINANCIALS IN BRIEF 14 Source: Investor relations Report—Dabur August 2012
  15. 15.  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 15Source:Annual Report dabur -2012
  16. 16.  Current Market Capitalisation of Dabur (as on 25th September) ::21699 Crores Share Price: 124.65 16 Source:Annual Report dabur -2012
  17. 17. BUSINESS STRUCTURE Source: Annual Report 2011-12 17
  18. 18. CONSUMER CARE-OVERVIEW Source::Industry Relations Report Dabur August 2012 18
  19. 19. CONSUMER CARE CATEGORIES 19
  20. 20. 20
  21. 21. 21
  22. 22. 22
  23. 23. 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 23
  24. 24. FOOD BUSINESS 24
  25. 25. Health Supplements Hair Care Home Care High Skin CareMarket growth Food Products Oral Care Low Digestive Products High Low 25 Market Share
  26. 26. DABUR’S MERGERS AND ACQUISITIONS26
  27. 27. 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 27
  28. 28. ACQUISITION OF HOBI GROUP 28
  29. 29. ABOUT THE COMPANY 29
  30. 30. PRODUCT PORTFOLIO 30
  31. 31. COMPANY STRUCTURE 31
  32. 32. 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) 32
  33. 33. ACQUISITION RATIONALE 33
  34. 34. ACQUISITION OF NAMASTE LABS, USA 34
  35. 35. 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 35
  36. 36. 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 36
  37. 37. RATIONALE Will serve as a gateway to the US market for Dabur’s portfolio of consumer products Enhances profitability Increases stakeholders value Adds to Daburs already strong presence in Africa Daburs entry into the fast-growing USD 1.5-billion ethnic hair care products market in the US, Europe and Africa 37
  38. 38. ACQUISITION OF FEM CARE PHARMA LTD 38
  39. 39. 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% 39
  40. 40. 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. 40
  41. 41. 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 41
  42. 42. 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 42
  43. 43. DABUR ACQUIRES AJANTA PHARMA CAPSULE BRAND 43
  44. 44. 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 44
  45. 45. SWOT ANALYSISStrengths 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 45
  46. 46. Opportunities Growing Awareness of Ayurveda Improper and Unhealthy Food habits Growing Rural Markets Growing Middle Class Women and Beauty SectorThreats Allopathic Players; Advertising and Distribution Growing Substitutes. Growing Health Tourism of Kerala. 46
  47. 47. FUTURE OF DABUR INDIA47
  48. 48. 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. 48
  49. 49. CRITERIA OF M&A Foreign Company/Indian Company Plans to expand/Already established retail player in Beauty Care 49
  50. 50. 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 50
  51. 51. 51
  52. 52. RURAL PLANS FMCG Rural rush Low Penetration levels High Demand Revamped Distribution System in 2011. Need Sound logistics systems to supplementCriteria Strong localized logistics system. 52
  53. 53.  Expansion of Health Suppliments Expansion of OTC & Ethicals Expansion of Ayurvedic Products 53
  54. 54. 54
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