Dabur corporate-profile-august-2012

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Dabur corporate-profile-august-2012

  1. 1. Dabur India Limited Corporate Profile August 2012 1 1
  2. 2. Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 2 2
  3. 3. Dabur India: Overview Established in E t bli h d i 1884 - more ththan 125 Twelve Billion Rupee Brands l illi d Years of Trust & Excellence Among top 4 FMCG companies in India World’s largest in Ayurveda and natural g y healthcare Revenue of Rs. 53.2 billion and profits of Rs. 6.4 billion in FY2011-12 Strong brand equity Dabur is a household brand Vatika and Real are Superbrands Hajmola , Real & Dabur ranked among India’s Most Admired Brands 12 Brands with sales of over Rs. 1 billion each Wide distribution network covering 3.4 g million retailers across the country Dabur has been Dabur ranked Dabur ranked 17 world class manufacturing plants ranked as the Most as No. 2 Most the No. 2 Indian Trusted Leader in Social Brand of Green Brand by catering to needs of diverse markets the Healthcare India, in the Green Brands category in the Social Media Global Survey Strong overseas presence with c. 30% c Brand Trust Report report launched contribution to consolidated sales 2012 at Click Asia Summit 2012 “Dabur has surpassed the US$ 1 billion mark in revenues” 3 3
  4. 4. Dabur: Vision and Core Values Vision •Dedicated to the health and well being of every household Ownership Passion for Integrity Winning Core Values People Innovation Development Consumer Team Work Focus 4 4
  5. 5. Key Milestones 1884 1972 1986 •Dr. SK Burman •The company •Registered as started an Ayurvedic shifted base to Public Limited Pharmacy in Kolkatta Delhi from Kolkata Company 1994 1998 2003 •Listed on the •Professionalized with •Pharmaceutical Business Bombay Stock B b St k Burman Family handing B F il h di de-merged t focus on core d d to f Exchange over day to FMCG business management 2004 2005 2006 •International •Acquired Balsara •Dabur Figured in Top Business set up in strengthening Oral 10 Great Places To Dubai to tap overseas care & gaining entry Work opportunity into Home care 2008 2010 2012 •Acquired Fem Care • Overseas acquisitions - •Crossed Rs. 50 bn Pharma entering Hobi Group, Turkey and p, y mark in annual mainstream Skin care Namaste Laboratories, US revenues and Market Cap of c. US$4 billion 5 5
  6. 6. Performance at a Glance (5 years) Net Sales Sales (Rs. billion) Net Profit (Rs. billion) 6.5 52.8 5.7 5.0 40.8 33.9 3.9 28.1 3.3 23.6 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 EBITDA (Rs. billion) (R billi ) Shareholders F d (R billion) Sh h ld Funds (Rs. billi ) 9.5 8.3 17.2 6.7 13.9 5.2 4.4 9.3 8.2 6.2 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 6 6
  7. 7. Global Footprint UK Turkey Canada Nepal UAE U.S. Egypt B’Desh Nigeria Domestic Mfg. Locations Key markets Manufacturing FacilitiesOur strategy is to localize manufacturing, supply chain and product offerings to suit consumer requirements in each geography 7 7
  8. 8. Distribution Overview Factory (Carry & Forward Agents) DepotStockists Super stockists Insti Stockists Modern Trade Military / CSD Stockist Wholesalers Sub stockists Retail trade Rural trade Unit Canteens Insti customers Direct reach Shoppers & Consumers 0.7 Mln outlets Direct + Indirect Reach c. 3.4 mn Retail Outlets 8 8
  9. 9. Research & Development FocusTeam of scientists includingAyurvedic doctors, Pharmacists, Strong New Product DevelopmentAgronomists, Botanists, Tissue Ayurvedic MedicinesCulture specialists, etc. Personal Care Foods Home CareAgro Biotech Initiatives OTC Healthcare Protecting endangered herbs Technical assistance to farmers Contract cultivation of herbs Green House at Nepal Dabur Research Facilities Agronomy Initiatives : Greenhouse at Dabur Nepal & Uttaranchal 9 9
  10. 10. Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 10 10
  11. 11. FMCG Industry Snapshot FMCG Industry Size (in Rs. bn) FMCG Industry Urban (in Rs. bn) FMCG Industry Rural (in Rs. bn)2,0001,800 1,807 1,400 8001,600 1,566 1,201 700 606 1,200 1 2001,400 1,040 1 040 600 526 1,0001,200 5001,000 800 400 800 600 300 600 400 200 400 200 100 200 0 0 0 MAT Jun 11 MAT Jun 12 MAT Jun 11 MAT Jun 12 MAT Jun 11 MAT Jun 12 Source: AC Nielsen Overview FMCG sector in India continues on a strong growth path with both Urban and Rural India contributing to growth Rural India contributes to c one third of FMCG growth. c. sales in India Growth driven by increasing consumption led by rise in incomes, changing lifestyles and favorable demographics As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range of 12% to 17% upto 2020 and would touch a market size between of Rs. 4,000 to Rs. 6,200 billion 11 11
  12. 12. Penetration Levels: Sufficient Headroom Rural Penetration Urban Penetration90% 80%80% 77%70% 67% 57% 59%60%50% 42%40% 37% 32%30% 26% 18% 18% 19%20%10% 3% 5% 4% 2%0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito  Instant  Hair Dyes Floor Cleaners Repellants Noodles Source: Industry data Low penetration levels offer room for growth across consumption categories Rural penetration still lower but catching up with urban penetration levels 12 12
  13. 13. Per Capita Consumption: Room for GrowthIndia 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$9 3 2.7 27 7.4 7.7 778 2.5 2.476 25 1.54 3.2 1.0 1.13 12 0.8 0.5 0.31 0.30 0 China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand Toothpaste – Per Capita Consumption (in US$) in US$ 3.5 2.9 3 2.5 2.0 20 2 1.5 1.0 1 0.5 0.4 0.5 0 China Indonesia India Malaysia Thailand Source: MOSL 13 13
  14. 14. Key Players: FMCG in Rs. million Rs Company Key Categories Sales Profit Market Cap Soaps, Detergents, Hindustan Unilever Ltd 229,877 , 27,907 , 1,031,500 , , Personal Care, Foods Care Food, Beverages, Infant Nestle India Ltd* 74,908 9,616 425,135 nutrition Personal, Health & , Dabur India Ltd 52,832 52 832 6,449 6 449 209,133 209 133 Homecare, Foods Godrej Consumer Hair Care, Soaps 48,509 7,267 210,268 Colgate Palmolive (I) Ltd Oral Care & Toiletries 26,239 4,465 161,865 Glaxo Smithkline Consumer* Consumer Health Care 26,855 3,552 118,041 Marico Ltd. Hair care, Food, Skincare 39,968 3,171 119,269 Britannia Industries Ltd Biscuits 54,607 1,995 54,135 Procter & Gamble Hygiene Feminine Hygiene, 10,003 1,509 74,255 and Health Care^ personal care Market Cap as of Aug 8 2012 Cap. 8,Source: Published results for year ending 31.03.12*Year ending 31.12.11^Year ending 30.06.11 14 14
  15. 15. Dabur: Strong Presence in FMCG Categories Category Position Market Share Key Brands Dabur Amla hair Oil, Vatika hair oil & Hair Care 3 12% Vatika Shampoos Red toothpaste, Babool, Meswak, Red Oral Care 3 13% toothpowder Ayurvedic 1 67% Dabur Chyawanprash Tonics Digestives 1 56% Hajmola Fruit Juices 1 52% Real Fruit Juices, Real Activ Honey 1 50% Dabur Honey Glucose 2 25% Dabur Glucose Skin Care 1 50% Fem (Bleaches) Air Freshener 1 40% OdonilHair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives 15 15
  16. 16. Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 16 16
  17. 17. Business Structure Dabur India Limited Domestic Business International (69.7%) Business (30.3%) Consumer Dabur Hobi Namaste Foods Retail Others* Care International Group Labs. LLC (10.1%) ( ) ( (0.8%) ) ( (2.7%)) (56.0%) (56 0%) (17.5%) (17 5%) (2.6%) (2 6%) (10.3%) (10 3%) Note: % figure in brackets indicate % share in Consolidated Sales for FY12* Others includes Commodity Exports etc 17 17
  18. 18. Consumer Care Overview Category-wise Share of Consumer Care Sales Health  Oral Care Supplements 17% 21% Skin Care 6% Digestives Home Care 8% 6% OTC & Ethicals Hair Care 12% 30% Hair Care is the largest category and contributes to 29% of Consumer Care sales Health Supplements contribute to 22% of Consumer Care sales Oral Care, comprising toothpastes and toothpowders contributes to 18% of Consumer Care salesNote: Percentage share based on revenue for FY12 18 18
  19. 19. Consumer Care Categories Hair Oils Key Brands #2 player in Hair Oils Dabur Amla: Vatika: Value added Anmol Hair Oil: Largest brand in coconut oil Value proposition the portfolio Shampoo Key Brands #4 player in Shampoos Vatika range of shampoos 19 19
  20. 20. Consumer Care Categories Oral Care Key Brands #3 player in Toothpastes #2 player in Meswak: Premium Toothpowder Dabur Red: Toothpaste Babool: Targeted at therapeutic & Toothpowder economy segment toothpaste Skin Care Key Brands #2 player in l i Skin Lightening Gulabari G l b i range off Uveda: Range of U d R f Fem range of Bleaches rose based skin Ayurvedic Skin care products Care 20 20
  21. 21. Consumer Care Categories Home Care Key Brands #1 player in Air Fresheners #1 player in p y Mosquito Repellant Creams Odonil: Air freshner Odomos: Mosquito Sanifresh: #2 player in Toilet l i T il t range: LLargest brand tb d repellant skin cream ll t ki Toilet cleaner in the portfolio Cleaners Odonil became one of the Billion Rupee Brands during 2011-12 21 21
  22. 22. Consumer Care Categories Health S H lth Supplements l t Key Brands #1 player in Ayurvedic Tonics y #2 player in Glucose Dabur Honey: Largest Dabur Chyawanprash: Dabur Glucose: branded honey in the #1 player in Largest selling health 2nd largest country; growing supplement in the player in the branded Honey country category through replace country sugar strategy g gy Digestives Key Brands #1 player in Herbal Digestives Hajmola: Flagship brand Hajmola tasty for branded Digestives digestive candy 22 22
  23. 23. Consumer Care Categories OTC and Ethicals d Ethi l Description CHD Structure Repository of Dabur’s Ayurvedic Healthcare knowledge Range of over 260 products Focusing on multiple therapeutic areas. OTC (64%) ETHICAL (36%) Distribution coverage of 200,000 chemists, Generics Tonic ~12,000 vaidyas & 12,000 Ayurvedic pharmacies Branded Products Classicals Focus on growing the OTC Health-Care Branded Ethicals portfolio aggressively Healthcare Focus OTC Healthcare is Rs.130 billion size industry Expected to grow at 14-15% p.a. as preference for Over-the-Counter products accelerates Dabur to expand its presence by : Consolidating / expanding current portfolio Launching new products in emerging therapeutic areas Look at inorganic opportunities Acquired the energizer brand, Thirty Plus from Ajanta Pharma in May 2011 Range of OTC products 23 23
  24. 24. Foods Business Foods portfolio comprises Juices and Culinary range Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Foods business has surpassed the Rs. 5 billion mark in sales Foods Key Brands #1 player in Fruit Juices Real: Flagship R l Fl hi Real Activ: Range beverages brand of 100% pure juice 24 24
  25. 25. International BusinessStarted as an Set up a franchisee at Renamed franchisee as Dabur Building scale- c 30% of scale c.Exporter Dubai in 1989 International Ltd Consol. SalesFocus on Order Demand generation Local operations further strengthened High Levels of Localizationfulfillment through led to setting up of Set up new mfg facilities in Nigeria,RAK Global Supply chainIndia Mfg. mfg in Dubai & Egypt & Bangladesh 1980’s Early 90’s 2003 Onwards Today Highlights High Growth in IBD Dabur s Dabur’s overseas business contributes c c. 18000 in Rs million Rs. 16,161 30% to consolidated sales led by CAGR of 16000 32% in last 6 years 14000 12000 Focus markets: 10000 8,922 GCC 8000 6,025 4,770 , Egypt E t 6000 3,760 3 760 4000 2,258 2,917 Nigeria 2000 1,281 1,807 Turkey 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Bangladesh Nepal p International Sales Breakdown (FY12) 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 25 25
  26. 26. Africa and Middle East Overview Real GDP Growth Rates (YoY) in % Africa’s Bulging Base Source: IMF Source: McKinsey on Africa, June 2010 Middle East and Africa have witnessed stable GDP growth rates Between 2005 and 2015, it is estimated that in Africa, the share of individuals earning above US$1,000 will grow from 39% to 55%. The rapidly emerging African middle class could number as many as 300 million, out of a total population of one billion The sheer volumes and the growth in the number of aspirational consumers with disposable income creates huge opportunities for consumer products companies 26 26
  27. 27. Acquisition of Hobi Group, TurkeyAcquisition of Hobi Group, Turkey for a totalconsideration of US$ 69 Million completed onOctober 7, 2010Hobi manufactures and markets hair, skin andbody care products under the brands Hobbyand New EraProduct range of the company iscomplementary to our product rangeAcquisition provides an entry into anotherattractive emerging market and a goodplatform to leverage this across the region 27 27
  28. 28. Acquisition of Namaste LaboratoriesDabur India Limited through its subsidiary Dabur International Limited acquired 100% stakein Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011Namasté is a leading ethnic hair care products company, having products for women ofcolour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and AfricanmarketsThe company markets a portfolio of hair care products under the brand ‘Organic RootStimulator’ and has a strong presence in ethnic hair care market for women of colour.Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5billion and tap into significant market opportunity in the fast growing hugely populated (~1 growing,Bn) yet highly underpenetrated consumer markets of Sub Saharan AfricaWe intend to grow the non U.S. business ahead of U.S. business and are taking initiatives inthis directionWe have commenced local manufacturing for Namaste at our RAK facility in UAE 28 28
  29. 29. Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 29 29
  30. 30. Growth Strategy Three pronged Growth Strategy Expand Innovate Acquire Our differentiation is the herbal and ayurvedic platformExpand Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories Calibrated international expansion – local manufacturing and supply chain to enhance flexibility p g pp y y / reduce response time to change in market demandsInnovate Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. 5 6% Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste)Acquire Acquisitions critical for building scale in existing categories & markets Should be synergistic and make a good strategic fit Target opportunities in our focus markets 30 30
  31. 31. Agenda Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance 31 31
  32. 32. Recent Financial Performance 16000 14,620 14 620 Consolidated Sales grew by 21 4% during 21.4% 14000 12,046 12000 Q1FY13 10000Revenue  8000 Sales growth was a combination of volume(in Rs. mn) 6000 growth, price increases and marginal 4000 2000 translation gains l i i 0 Q1 FY12 Q1 FY13 3,000 EBITDA i increased b 20 5% and EBITDA margin d by 20.5% d i 2,403 2,500 1,995 was stable at 16.4% in Q1FY13 v/s 16.6% in 2,000 Q1FY12EBITDA   1,500((in Rs. mn) ) 1,000 Material costs eased, with material costs at 500 50.0% of sales in Q1FY13 v/s 52.2% in Q1FY12 / 0 Adpro during the quarter increased to 15.7% as Q1 FY12 Q1 FY13 compared to 12.6% in previous year 2000 Above factors translated into growth in 1,546 1500 1,279 Consolidated PAT (before extraordinary item)PAT*  1000 of 20.8%.((in Rs. mn) ) Extraordinary loss of Rs. 49 million due to sale y 500 of stake in Weikfield International (UAE) 0 Q1 FY12 Q1 FY13 32 * Before Extraordinary Items 32
  33. 33. Market Cap & Shareholding Cumulative Returns to Shareholders^ Shareholding Structure*250% Others, 200% 188% 193% DIIs, 6.7% 6.9% 166% FIIs, 17.7%150%100% 59% Promoters, 50% 68.7% 0% Jun‐09 Jun‐10 Jun‐11 Jun‐12 ^Based on an investment made in June 2008 *As on June 30, 2012 Dabur has provided strong returns to its shareholders over the years At present, Dabur has a market cap of INR  209 billion (as of Aug 8, 2012) 33 33
  34. 34. Consolidated P&L In Rs. million Q1FY13 Q1FY12 YoY (%) Net Sales 14,619.7 12,045.8 21.4% Other Operating Income 97.3 65.0 Material Cost 7,316.4 6,289.8 16.3% % of Sales % of Sales 50.0% 50 0% 52.2% 52 2% Employee Costs 1,062.0 913.3 16.3% % of Sales 7.3% 7.6% Ad Pro 2,292.1 1,514.8 51.3% % of Sales 15.7% 12.6% Other Expenses 1,888.1 1,549.2 21.9% % of Sales 12.9% 12.9% Other Non Operating Income 244.6 151.3 61.7% EBITDA 2,403.0  1,995.1  20.4% % of Sales % of Sales 16.4% 16.6% Interest Exp. and Fin. Charges 212.6 145.0 46.6% Depreciation & Amortization 267.0 248.4 7.5% Profit Before Tax (PBT) 1,923.4 1,601.7 20.1% Tax Expenses 377.7 322.5 17.1% PAT(Before extraordinary item) PAT(B f di i ) 1545.7 1545 7 1279.2 1279 2 20.8% 20 8% % of Sales 105.7% 106.2% Extraordinary Item 49.3 PAT(After extraordinary Items) 1496.4 1279.2 17.0% Minority Interest ‐ (Profit)/Loss y ( )/ 2.4 1.8 PAT (After Extra ordinary item & Minority Int) 1494.0 1277.4 17.0% % of Sales 10.2% 10.6% 34 34
  35. 35. Consolidated Statement of Assets and Liabilities As at As at In Rs. mn Rs (Period ended) 30/06/2012 (previous year end) 31/03/2012 A EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,743 1,742 (b) Reserves and surplus 16,708 15,427 (c) Money received against share warrants Sub total Shareholders Sub-total - Shareholders funds 18,451 17,169 2 Share application money pending allotment 3 Minority interest * 23 33 4 Non-current liabilities - - (a) Long-term borrowings 8,168 7,272 (b) Deferred tax liabilities (net) 288 274 (c) Other long-term liabilities - - (d) Long term provisions Long-term 6,751 6 751 6,576 6 576 Sub-total - Non-current liabilities 15,207 14,122 5 Current liabilities (a) Short-term borrowings 3,210 3,471 (b) Trade payables 8,887 8,592 (c) Other current liabilities 888 1,198 (d) Short-term provisions 1,611 1,639 Sub-total - Current liabilities 14,597 14,900 TOTAL - EQUITY AND LIABILITIES 48,278 46,223 B ASSETS 1 Non-current assets (a) Fixed assets 9,216 8,854 (b) Goodwill on consolidation * 7,804 7,826 (c) Non-current investments 743 893 (d) Deferred tax assets (net) - - (e) Long-term loans and advances 4,649 4,327 (f) Other non-current assets 661 719 Sub-total - Non-current assets 23,074 22,618 2 Current assets (a) Current investments 4,686 3,932 (b) Inventories 8,307 8,239 (c) Trade receivables 4,452 4,617 (d) Cash and cash equivalents 4,853 4,484 (e) Short-term loans and advances 2,038 1,543 (f) Other current assets 868 789 Sub-total - Current assets 25,205 23,605 35 TOTAL - ASSETS 48,278 46,223 35
  36. 36. Recent AccoladesDabur has been voted by Dabur has been ranked Dabur ranked as No. Dabur India Ltd has beenconsumers as Indian as the Most Trusted 2 Most Social Brand ranked among the Top 10PowerBrand 2011-2012P B d 2011 2012 Leader i th H lth L d in the Healthcare of India in the Social India, ‘Best C ‘B t Companies To Work i T W k category in the Brand Media report For’ in the Manufacturing Trust Report 2012 launched at Click sector by Business Today Asia Summit 2012 Dabur ranked 184 in Daburs greenfield unit in Daburs Baddi Units Dabur ranked 37 in list the FE-500 list of Baddi awarded LEED awarded Silver of Indias Greatest Indias Finest India Silver Rating for Certification for Wealth Creators 2011. Companies achieving Green Building Enhancing Manufacturing h f Dabur has been ranked Standards & Supply Chain 30 in the list of Indias Excellence, by ET–India Top Employment Manufacturing Excellence Generators by Business cell & Economy magazine 36 36
  37. 37. Disclaimer Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties Such statements are based on a number of assumptions estimates uncertainties. assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. Actual results can differ materially from those anticipated in the Company´s forward‐looking statements as a result of a variety of factors, including those set forth from time to time in the Company´s press releases and reports and those set forth from time to time in the Company´s analyst calls and discussions. We do not assume any obligation to update the forward‐looking p y y y g p g statements contained in this presentation. No part of this presentation shall form the basis of or may be relied upon in connection with any contract or commitment. This presentation is being presented solely for your information and is subject to change without notice. 37 37
  38. 38. Investor Relations Dabur India LtdContact:+91-11-42786000 38 38

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