Dabur India Ltd

Investor Presentation
June 2016

Dabur Overview
One of the oldest and largest FMCG
Companies in the country

Worlds largest in Ayurveda and

natural healthcare

Total reach of 5.3mn outlets, one of

the highest among FMCG companies

20 world class manufacturing facilities

catering to needs of diverse markets

Strong overseas presence with 31%

contribution to consolidated sales

Ayurveda: Daburs Core Philosophy

Stringent
Quality Test

Supporting
cultivation
of rare
herbs for
Ayurvedic
medicines

Ayurvedic
doctors
support

Worlds best
Ayurvedic
R&D
facility

LIVEVEDA
PORTAL

Ayurveda- A
Click Away !!!!

Comprehen
sive product
range

Global Business Footprint

UAE
3

Egypt

Nigeria

Turkey

Sri
Lanka

Banglad
esh

Nepal

Robust Growth Trajectory..

in INR bn

20.4

23.6

28.1

FY07^

FY08

FY09

33.9

FY10

40.8

FY11^^

52.8

FY12

61.5

FY13

70.7

FY14

78.1

84.4

FY15

FY 16

12.5
in INR bn

2.8

3.3

3.9

FY07^

FY08

FY09

5.0

FY10

5.7

FY11^^

6.5

FY12

7.6

FY13

9.1

FY14

10.7

FY15

FY 16

Superior Shareholder Returns

INR Bn

525

467

440

FY15

FY 16

313

82

95

85

FY07^

FY08

FY09

175%

150%

175%

138

167

185

FY10

FY11^^

FY12

FY08

FY09

FY13

FY14

200%

115%

FY07

239

FY10

FY11

130%

FY12

150%

FY13

175%

FY14

200%

FY15

^ ^^Bonus issue in FY07 & FY11

Current
225%

FY16

Strong Financial Profile

41.6

52.5%

33.5
26.6
17.2

FY12

34.0%

38.3%

43.6%

45.2%

FY14

FY15

21

FY13

FY14

FY15

FY16

FY12

FY13

7.1

21.9%
17.9%

17.8%

18.2%

6.1

18.9%
3.7

FY12
6

FY13

FY14

FY15

FY16

FY16

FY12

4.4

FY13

5.2

FY14

FY15

*includes Non- Operating income

FY16

Distribution Framework
We reach to
5.3mn
outlets !!!

GT Stockist

Factory

Factory

C&F

C&F

MT Stockist

Insti Stockist

Wholesaler

Super Sockist

Sub Sockist

Retailer

Retailer

Consumer

Consumer

Retailer

Consumer

Consumer

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
villages in FY15
Focus on increasing efficiency and productivity of the channel

Aimed at leveraging the potential of Top 130 towns which contribute to 50%
of urban consumption
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
Direct Chemist Coverage is currently 213,000
Strategy is to increase coverage and range for better throughput

Business Structure
Domestic FMCG
(65%)
Domestic (68%)
Others (4%)

Dabur India
Ltd.

Organic
International
(22%)
International
(32%)

Namaste Labs
(6%)

Hobi Group (3%)

* Others include Retail, Commodity exports etc
Note: % figure in brackets indicate % share in Consolidated Sales for FY16
9

Sales By Business Vertical

Healthcare
(33%)
Domestic
FMCG*

HPC(49%)

Foods(18%)

Americas
17%

International Business
Region Wise Breakdown

Europe
11%
Asia
17%

* Breakdown of Domestic FMCG business basis FY16 Sales

10

Middle East
33%

Africa
22%

INDIA
BUSINESS

11

Business Strategy
Healthcare

12

Home &
Personal Care

Foods

Increasing
Doctor Advocacy

Premiumization &
Differentiation

Leveraging the
Fruit equity
associated with
the Real brand

Thrust on
building the OTC
portfolio

Strong innovation
pipeline

Focus on Healthy
range of products

Focus on Health and Well-Being

The theme of Health
and Well-Being cuts
across the product
portfolio

13

Doctor Advocacy
platform being builtBoth Ayurvedic and
Allopathic doctor reach
to be ramped up

Building Consumer Connect

14

Continue to build bigger brands

15

16 brands with turnover of INR 1bn+ with 3 brands over 10bn

Competitive Position
#Relative Competitive Position

#1

Honey

#1

#2

Chyawanprash Baby Massage

Oil

Healthcare
16

#2

Glucose

#2

Hair Oils

#1

Air Freshners

#1

Skin CareBleaches

#2

#3

Toilet
Cleaners

Oral Care

Home and Personal Care

#1

#1

Mosquito
Repellant
Creams

Juices

Foods

* Position basis Nielsen Market Share data MAT Mar16

Premiumization is the key A few Examples

17

INTERNATIONAL
BUSINESS

18

Business Overview
Dabur
International(FY16)

In INR Mn
16161

Organic
Business(70%)

FY15

Inorganic
Business(30%)

Europe
12%

Africa
23%

FY13

Middle East
Middle East
32%

America
16%

19

FY14

27121

18338

FY12

Asia
17%

23108

24226

Africa
Europe
Asia
America

Saudi Arabia, UAE

Egypt, Nigeria, Kenya, South
Africa
Turkey, UK
Nepal, Bangladesh, Pakistan
USA

FY16

The Journey
2015-2018
2011-2014
2007-10

2003-2006

2002
Trading Model
through a franchisee
Hair Oil was
mainstay
No localization

20

Franchisee bought
out and renamed
Dabur International
Portfolio expansion
beyond Hair Oils
Focus on building
demand

Entry into Personal

Care segments
Manufacturing
locations expanded
Systems and
processes
implemented

Hobi and Namaste

acquired which led to
geographic expansion
Innovative product
offerings
Management
bandwidth expanded

Enter into African

Markets
Expand portfolio
Cross pollinate
ideas and leanings
from different units

IBD: Evolution of Amla brand

Oldest brand in IBDs portfolio
Hamam
Zaith
Leaveon
Oils
Shampoos &
Conditioners
Snake
Oil
Hair
creams
Hair Oils
Variants

Hair
Oils

2003
21

IBD: Evolution of Vatika brand

Largest brand in IBDs
portfolio
Hair
Colors

Hamam
Zaith
Conditioners
Shampoo

Hair
Cream
VHO

2003
22

Hair
Gels

Hair
Serum

IBD: Evolution of Dermoviva brand

Launched in 2011

Toners
Face
scrub
Face
wash
Wipes
Skin
Lotions
Creams
Hand
Wash

Skin
Serum
Soaps
23

IBD: Evolution of Oral Care

Launched in 2006
Antiageing
Mouth
wash
RTP
Herbal
Toothpaste
Miswak
Herbal
Gel
Herbal
ToothPaste

2006
24

Organic International Business

Oral Care
2%

Others
5%

Styling &
Hamamzaith
12%
Skin Care
7%

Hair Cream
13%

Shampoo
14%
Hair Oil
93%

Others
4%

Oral
Care
11%

Hair Oil
39%

The Organic International Business has evolved from being just a

Hair Oil business to a diversified personal care entity

25

Inorganic Business

Key Geographies
Straightening

USA & Africa

Styling

Shampoo & Conditioner

26

Key Geography

Turkey

Shampoo

Hair
Styling

Liquid
Soap

Skin &
Body Care

Consolidated Financial Highlights FY16

Growth %
SALES

EBITDA

PAT
27

8.1%

17.9%

17.5%

Rs Crs
8436

1739

1253

Sustainability: A Key Focus

2918

acres under
cultivation for rare
medicinal herbs in India

13 States covered under

our Agronomical
Initiatives

28

2,028

beneficiary
families of our Self
Help Group initiatives

1,674
farmers/beneficiaries of
our Agronomical
initiatives in India

18,00,000
schoolkids benefited
from health & oral
hygiene programmes

586 women trained

at our vocational
training centers

Shareholding Pattern and Share Price Trend

Public
32%

32% of Daburs shares are held by the Public

Promoters
68%

29

Consolidated P&L
DIL(Consolidated)P&LinRs.million
NetSales
OtherOperatingIncome
MaterialCost
%ofSales
EmployeeCosts
%ofSales
AdPro
%ofSales
OtherExpenses
%ofSales
OtherNonOperatingIncome
EBITDA
%ofSales
InterestExp.andFin.Charges
Depreciation&Amortization
ProfitBeforeTax(PBT)
ExceptionalItem
TaxExpenses
PAT(Beforeextraordinaryitem)
%ofSales
ExtraordinaryItem
PAT(AfterextraordinaryItems)
MinorityInterest (Profit)/Loss
PAT(AfterExtraordinaryitem&MinorityInt)
%ofSales

30

Q4FY16
21,573
40
9,763
45.3%
2,020
9.4%
2,836
13.1%
2,840
13.2%
563
4,717
21.9%
131
360
4,226
0
892
3,334
15.5%
0
3,334
15

Q4FY15
19,448
49
9,059
46.6%
1,723
8.9%
2,654
13.6%
2,604
13.4%
447
3,903
20.1%
103
282
3,519
0
670
2,849
14.6%
0
2,849
1

YoY(%)
10.9%

3,319

2,848

16.6%

15.4%

14.6%

7.8%
17.2%
6.9%
9.1%
26.0%
20.8%
27.0%
27.6%
20.1%
33.2%
17.0%

17.0%

FY16
84,360
181
37,970
45.0%
7,948
9.4%
12,427
14.7%
10,997
13.0%
2,192
17,390
20.6%
480
1,338
15,572
0
3,018
12,555
14.9%
0
12,555
27

FY15
78,064
208
37,201
47.7%
6,896
8.8%
11,244
14.4%
9,768
12.5%
1,581
14,744
18.9%
401
1,150
13,194
0
2,509
10,685
13.7%
0
10,685
26

YoY(%)
8.1%

12,527

10,658

17.5%

14.8%

2.1%
15.3%
10.5%
12.6%
38.7%
17.9%
19.7%
16.3%
18.0%
20.3%
17.5%

17.5%

13.7%

Statement of Assets and Liabilities

Particulars
EQUITY AND LIABILITIES
1 Shareholders funds
(a) Share capital
(b) Reserves and surplus
Sub-total - Shareholders' funds
2. Minority interest
3. Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (net)
(c) Long-term provisions
Sub-total - Non-current liabilities
4. Current liabilities
(a) Short-term borrowings
(b) Trade payables
(c )Other current liabilities
(d) Short-term provisions
Sub-total - Current liabilities
TOTAL - EQUITY AND LIABILITIES
B ASSETS
1. Non-current assets
(a) Fixed assets
(b) Goodwill on consolidation
(c) Non-current investments
(d) Long-term loans and advances
(e) Other non-current assets
Sub-total - Non-current assets
2 Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and bank balances
(e) Short-term loans and advances
(f) Other current assets
Sub-total - Current assets
Total -Assets

31

As at 31/03/2016
(Audited)

As at 31/03/2015
(Audited)

1759.1
39841.6
41,600.7
216.8

1756.5
31784.9
33,541.4
181.6

3414.5
765.4
508.8
4,688.7

2105.7
587.1
462.1
3,155.0

4,497.4
13,301.8
3,567.4
3,332.0
24,698.6
71,204.8

5,229.8
10,958.5
5,415.2
2,581.4
24,184.9
61,062.8

13,732.8
6,214.0
17,873.1
295.1
181.7
38,296.7

13,060.3
6,214.0
13,874.0
207.5
201.3
33,557.1

7,365.4
10,965.0
8,097.0
2,204.0
3,265.3
1,011.4
32,908.1
71,204.8

4,259.7
9,732.7
7,108.4
2,760.4
2,788.7
855.8
27,505.7
61,062.8

In INR Mn

Thank You