Dabur India Ltd is a 125-year-old FMCG company and India's third largest in this sector. It has a wide product portfolio spanning various categories like hair care, oral care, skin care, etc. sold through a network of 3.4 million retailers across India. Dabur has pursued international expansion through acquisitions of companies in markets like Middle East, US, and Turkey. It aims to leverage these acquisitions to grow in new international markets and categories. The company has a strong focus on Ayurveda and herbal products where it sees further growth opportunities.

1. DABUR INDIA LTD.
Bhargav Dudagadapa
Gautam Siddharth
1 Vamsikrishna Pedada
Ajinkya Patil
Eshant Gaur
Mohil Poojara

2. DABUR- A COMPANY PROFILE
2

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. VISION AND CORE VALUES
4

5. DABUR- HISTORY
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6. GLOBAL FOOTPRINT
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7. FMCG SECTOR IN INDIA
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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
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9. POTENTIAL IN FMCG
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10.  Low penetration levels offers growth opportunity across
various Consumption Categories
 Rural Penetration is low but catching up with the urban
levels.
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11. MARKET LEADERS- FMCG SECTOR
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Source:: Annual Report Dabur 2011-13

12. DABUR IN FMCG SECTOR
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Source: Investor Relations report Dabur-August 2012

13. FINANCIALS OF DABUR
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14. FINANCIALS IN BRIEF
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Source: Investor relations Report—Dabur August 2012

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
15
Source:Annual Report dabur -2012

16.  Current Market Capitalisation of Dabur (as on 25th
September) ::21699 Crores
 Share Price: 124.65
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Source:Annual Report dabur -2012

17. BUSINESS STRUCTURE
Source: Annual Report 2011-12 17

18. CONSUMER CARE-OVERVIEW
 Source::Industry Relations Report Dabur August 2012 18

19. CONSUMER CARE CATEGORIES
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20. 20

21. 21

22. 22

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
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24. FOOD BUSINESS
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25. Health Supplements
Hair Care
Home Care
High
Skin Care
Market growth
Food Products
Oral Care
Low
Digestive Products
High Low
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Market Share

26. DABUR’S MERGERS AND
ACQUISITIONS
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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
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28. ACQUISITION OF HOBI GROUP
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29. ABOUT THE COMPANY
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30. PRODUCT PORTFOLIO
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31. COMPANY STRUCTURE
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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)
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33. ACQUISITION RATIONALE
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34. ACQUISITION OF NAMASTE LABS, USA
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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
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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
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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 Dabur's already strong presence in Africa
 Dabur's entry into the fast-growing USD 1.5-billion
ethnic hair care products market in the US, Europe
and Africa
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38. ACQUISITION OF FEM CARE PHARMA LTD 38

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%
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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.
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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
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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
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43. DABUR ACQUIRES AJANTA PHARMA CAPSULE BRAND
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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
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45. SWOT ANALYSIS
Strengths
 Competitive pricing
 Ayurvedic Repsitory.
 Strong Brand Image
 Strong Financially
 Strong Research and Innovation base.
 IT base
Weakness
 No direct Outlets.
 Seasonal Demands
 Lack of awareness about Ayurvedic Products 45

46. Opportunities
 Growing Awareness of Ayurveda
 Improper and Unhealthy Food habits
 Growing Rural Markets
 Growing Middle Class Women and Beauty Sector
Threats
 Allopathic Players; Advertising and Distribution
 Growing Substitutes.
 Growing Health Tourism of Kerala.
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47. FUTURE OF DABUR INDIA
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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.
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49. CRITERIA OF M&A
 Foreign Company/Indian Company
 Plans to expand/Already established retail player in
Beauty Care
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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

52. RURAL PLANS
 FMCG Rural rush
 Low Penetration levels
 High Demand
 Revamped Distribution System in 2011.
 Need Sound logistics systems to supplement
Criteria
 Strong localized logistics system.
52

53.  Expansion of Health Suppliments
 Expansion of OTC & Ethicals
 Expansion of Ayurvedic Products
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54. 54