INDUSTRYPROFILE

FMCG is the acronym of Fast Moving Consumer Goods

which is also known as Consumer Packaged Goods (CPG).
Fast moving consumer goods are products that have a
quick turnover, and relatively low cost. The Fast Moving
Consumer Goods (FMCG) is those consumables which are
normally consumed by the consumers at a regular interval.
The purchasers usually put less thought into the purchase
of FMCG than they do for other durable products such as
electronic items. In comparison with other industries such
as automobiles, computers, and airlines, FMCG business
has a steady rate of growth, for it does not suffer from
huge recession and layoffs every time the economy starts
to dip. In FMCG business absolute profit made on the
products is relatively small. Since they generally sell in
large numbers, the overall profit on such products can be
huge.

The Indian FMCG sector with a market size of US$ 23.74

billion is the fourth largest sector in the economy. A well-
established distribution network, intense competition
between the organized and unorganized segments
characterizes the sector. FMCG Sector is expected to grow
by over 30% by 2010. That will translate into an annual
growth of 10% over a 5-year period.

The Federation of Indian Chambers of Commerce and

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Industry (FICCI) predicted that the Indian FMCG industry is
expected to grow 20% during 2003-10 with rising
disposable income, changing lifestyle and rapid
urbanization.

Common FMCG Products

Some common FMCG product categories include food and dairy

products, glassware, products, pharmaceuticals, consumer
electronics, packaged food products, plastic goods, printing and
stationery, household products, photography, drinks etc. and
some of the examples of FMCG products are coffee, tea, dry
cells, greeting cards, gifts, detergents, tobacco and cigarettes,
watches, soaps etc. Within the Indian FMCG industry, there are
few sectors that will grow more than 20% during 2008-2009,
like shaving cream at 23%, skin/fairness cream at 22%,
shampoos at 21.3%, skin care & cosmetics at 20%, tooth-
powder at 22% and care products.

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 Market potentiality of FMCG
Industry

With the presence of 12.2% of the world population in the

villages of India, the Indian rural FMCG market is something no
one can overlook. Increased focus on farm sector will boost
rural incomes, hence providing better growth prospects to the
FMCG companies. Better infrastructure facilities will improve
their supply chain. FMCG sector is also likely to benefit from
growing demand in the market. Because of the low per capita
consumption for almost all the products in the country, FMCG
companies have immense possibilities for growth. And if the
companies are able to change the mindset of the consumers,

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i.e. if they are able to take the consumers to branded products
and offer new generation products, they would be able to
generate higher growth in the near future.

Some of the merits of FMCG industry, which made this industry

as a potential ones are low operational cost, strong distribution
networks, and presence of renowned FMCG companies.

Population growth is another factor which is responsible behind

the success of this industry. The prediction of higher sales
growth of FMCG products is based on strong economic
fundamentals such as rising disposable income of people. Now
people can afford to spend on quality FMCG products.

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 SCOPE OF FMCG SECTOR
Consumer Spending:-
Private consumption expenditure in India grew at a real
CAGR of over 7.3% during last 5 years
Pyramid expanding at the middle as deprived sections
are shrinking: People in lowest expenditure class will
shrink from 45% to 35% by 2014-15*.
Share of wallet shifting from food to household and
personal care, durables, apparel, communication,
education and entertainment.
Younger population getting added : 50% of the
population below 25 years; 200 mn people will enter the
working age of 15-60 years over the next 2 decades
Rural India accounts for 70% of population. By 2014-
15, 150 million people in rural India will have
consumption levels similar to the better-off urban
consumer of today.
Low Penetration Level:
The demand for lifestyle products is boosted by the rising
aspiration and modern facilities. As the spending power of
consumers is going up, the sales of FMCG products in India will
rise too. Therefore, companies need to improve the quality of

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products and employ right marketing mix by implementing new
technologies such as Customer Relationship Management.
Because of the low per capita consumption for almost all the
products in the country, FMCG companies have immense
possibilities for growth. And if the companies are able to
change the mindset of the consumers, i.e. if they are able to
take the consumers to branded products and offer new
generation products, they would be able to generate higher
growth in the near future. Hence both in Rural and Urban India,
there is room for sustained growth.

Availability of raw materials

Because of the diverse agro-climatic conditions in India, there
is a large raw material base suitable for food processing
industries. India is the largest producer of livestock, milk,
sugarcane, coconut, spices and cashew and is the second
largest producer of rice, wheat and fruits &vegetables.

Labor cost comparison:

Low cost labor gives India a competitive advantage. India's
labor cost is amongst the lowest in the world, after China &
Indonesia. Low labor costs give the advantage of low cost of
production. Many MNC's have established their plants in India
to outsource for domestic and export markets.

Presence across value chain:-

Indian companies have their presence across the value chain of
FMCG sector, right from the supply of raw materials to

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packaged goods in the food-processing sector. This brings India
a more cost competitive advantage. For example, Amul
supplies milk as well as dairy products like cheese, butter, etc.

FMCG Sector Outlook

No signs of slowdown- most categories witnessing double

digit growth driven by sustained off takes in rural sector.
Rural India consumption story continues led by increase in
agri commodity realizations and investments in
agriculture/rural economy.
No material signs of consumer down trading barring in
categories where price hikes have been in excess of 10-
15%.
Benign input cost environment foreseeable for next few
quarters; growth to be primarily volume led with little or
no price growth in the offing.

COMPANY DETAIL

Founding Thoughts

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 "What is that life worth which cannot bring
comfort to others"

With the above thought Dr. S.K Burman (1856-1907)

tucked away in Bengal. His mission was to provide
effective and affordable cure for ordinary people in far-
flung villages. With missionary zeal and fervor, Dr. Burman
undertook the task of preparing natural cures for the
killer disease of those days, like cholera, malaria and
plague

Highlights of the Dabur India

1884 The company started its operations as an Ayurvedic Pharmacy in
Calcutta

1919 The first company to Initiate research on Ayurveda

1940-50 Entry into Consumer products through launch of Dabur Amla Hair Oil
& Chyawanprash

1970-80 Entry into Oral care & Digestives through launch of Dabur LDM &
Hajmola

1994 Pharmaceutical business de-merged from Dabur India creating Dabur

Pharma

1996 Promoter family moved out of executive role inducting professional

managers including CEO

1998 The Company got Listed on Bombay Stock Exchange

2004 Launched "Real" India's first packaged fruit juice marking its entry
into Health beverages

2005 Acquired Balsara having Oral care and Home Care products

2007 Board restructured : Induction of younger members on the Board

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2009 Fem care acquisition

AMAZING FACTS ABOUT DABUR

DABUR has one of the largest Herbal & Natural Portfolio.

Daburs domestic distribution network comprises 50 C&F
agents and about 4,500 distributors.
Driven by the sheer popularity of its product portfolio,
Dabur finds a place of pride in over 2.5 million retail
outlets in India with geographic footprint spanning over 60
countries.

It has a sizeable presence in high growth international

markets with14 Manufacturing Plants and provides
employment to over 3500 employees.

There are major 5 Umbrella Brands and over 350 well

performing products.

Head quarters Ghaziabad, Type-NSE,BSE

Website- www.dabur.com.

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 Key Financial Performance Overview

Robust revenue growth led by CCD & IBD. Most of the

categories performed well with Shampoos, Hair Oils Foods and
Toothpastes contributing proportionately higher to the growth.
Fem care take over process completed on 25thJune, 2009 and
results consolidated for 6 days of the quarter.

Consolidated Sales increased to Rs. 2834.1 crore in

2008-09 from Rs.2396.3 crore in 2008-09, registering
agrowth of 18.3%.
Earnings before interest, depreciation, taxes and
amortization (EBIDTA) increased to Rs. 517.3 crore in
2008-09 from Rs. 443.3 crore in 2007-08, registering
growth of 16.7%
Consolidated Profits After Tax (PAT) went up to Rs. 391.2
crore in 2008-09 from Rs.332.9 crore, going up by
17.5%.

Awards & Recognitions

Dabur has received many Awards and Accolades in recognition

of its-achievements at various levels. During the year Dabur
bagged various Awards and Recognitions in different categories
and for different Brands.

For the Company

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 Ranked amongst India's most innovative companies by
Business Today-Monitor Group Survey.
Ranked 28th in the list of India's Top 50 Most Valuable
(company) Brands by Brand Finance.

Its Brands

Hajmola, one of the strongest brands in Dabur's Portfolio,

has been listed among the Top 18 Iconic Brands in India..
Dabur Brands-Hajmola, Dabur Amla and Vatika have
debuted in the Economic Times Brand Equity's most trusted
Brands 2008 list.

Its Chief Executive Officer

Mr. Sunil Duggal was named the best corporate leader of

2008 at the B&E leadership and Excellence Awards, and
also ranked among India's most valuable CEOs by
Business World.

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CONSUMER CARE DIVISION OVERVIEW

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Extension of existing brands to more subcategories and making
more choice available to consumers, coupled with increased
focus on rural penetration, was the key platform on which CCD
leveraged its growth during 2008-09. The division reported
growth of 13.8%, supported by-strong performance across
various segments. The CCD business is divided into four key
portfolios: healthcare, personal care, home care and foods.
These cater to a number of consumer market segments
including hair care, oral care, baby and skin care, health
supplements, digestives, home care and foods. Share of these
product segments in CCD sales is presented in Figure:

Health Care:
With a share of 44%, the Health Care segment continued to be
the largest contributor to CCD's sales during the fiscal,
reporting impressive growth across all its three categories:
Health Supplements, Oral Care and Digestives.

Personal Care:
Comprising Hair Care and Baby & Skin Care, this portfolio is the
second largest contributor to CCD sales, with a 37 % share.
During 2008-09, this portfolio reported a strong 21.5% growth,
of which significant growth came out of higher volumes a
considerable achievement given the intense and
challenging inflationary scenario in terms of the input costs that

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impacted the FMCG industry during the year. Led by impressive
growth across brands, the Personal Care portfolio emerged as
the fastest growing segment in CCD during the year.

Home Care:-

Dabur is a significant player in the evolving and under

penetrated Home Care category in India. Home Care portfolio,
which came into the Dabur fold with the acquisition of Balsara
in 2005, has a share of 5.7% of CCD revenues. The portfolio
registered a growth of9.7% during 2008-09.
The portfolio comprises of 3 categories: Air Care, Mosquito
Repellants and Surface Cleaners.
Foods:-

Foods division, which was merged with CCD during 2008-09 is

now fully integrated with the consumer care division and
contributes 13.3% to the CCD sales, this segment comprises
mainly fruit beverages under the Real & Active brands and
culinary additives under the Homemade brand. The foods
business recorded a growth of 14.4% for the year, riding on the
plank of health & wellness and established superiority.

International Business Division:-

The division, which has been transformed from being a small

operation into a multi-location business spreading through the
Middle East, North Africa, West Africa and South Asia, grew by

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39.9% during the year and emerged as the fastest growing
division of the Company. This acceleration in growth of IBO led
to its contribution to Dabur's consolidated revenue going up to
18.5% for FY09 from 15.7% a year ago.

The key categories accelerating the division's growth are Hair

Creams, Toothpastes, Hair Oils and Conditioners is pertinent to
mention that the brand architecture in the Company's overseas
markets remains similar to that in India, though the products
sold under these brands are customized and modified to the
requirements of these markets.

DABUR VISION, MISSION,CORE VALUES

Vision: "Dedicated to the health and well being of every

household"

This is our company. We accept personal responsibility, and

accountability to meet business needs.

We all are leaders in our area of responsibility, with a deep

commitment to deliver results. We are determined to be the
best at doing what matters most.

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 People are our most important asset. We add value through
result driven training, and we encourage & reward excellence.

We have superior understanding of consumer needs and

develop products to fulfill them better.

We work together on the principle of mutual trust &

transparency in a boundary-less organization.

Continuous innovation in products & processes is the basis of

our success.

We are committed to the achievement of business success

with integrity. We are honest with consumers, with business
partners and with each other.

STRATEGIC INTENT OF DABUR

INDIA

Dabur India intends to significantly accelerate

profitable growth.
Focus on growing our core brands across categories,
reaching out to new geographies, within and outside India,
and improve operational efficiencies by leveraging
technology

Be the preferred company to meet the health and personal

grooming needs of our target consumers with safe,

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 efficacious, natural solutions by synthesizing our deep
knowledge of ayurveda and herbs with modern science

. Provide our consumers with innovative products within

easy reach

Build a platform to enable Dabur to become a global

ayurvedic leader

Be a professionally managed employer of choice,

attracting, developing and retaining quality personnel

. Be responsible citizens with a commitment to

environmental protection

Provide superior returns, relative to our peer group, to our

shareholders

DABUR GROUPS

With a basket including personal care, health care and food

products, Dabur India Limited has set up subsidiary Group
Companies across the world that can manage its businesses
more efficiently.

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Given the vast range of products, sourcing, production and
marketing have been divested to the group companies that
conduct their operations independently:

DABUR WORLD WIDE

Dabur's mission of popularizing a natural lifestyle transcends

national boundaries. Today, there is growing global awareness
on alternative medicine, nature-based and holistic lifestyles and
an interest in herbal products. Dabur has been in the
forefront of popularizing this alternative way of life,
marketing its products in more than 60 countries all
over the world.

Over the years, Dabur's overseas business has successfully

transformed from being a small operation into a multi-
location business spreading through the Middle East,
North Africa, West Africa and Sou

Our Products Worldwide

We have spread ourselves wide and deep to be close to our

overseas consumers. Our overseas product portfolio is tailor-
made to suit the needs and aspirations of our growing
consumer base in the international markets.

Offices and representatives in Europe, UK, America

and Africa

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 AA special herbal health care and personal care range
successfully selling in markets ranging from the Middle
East, Far East, North Africa and Europe
Inroads into several European and American markets that
have good potential due to resurgence of the back-to-
nature movement
Export of Active Pharmaceutical Ingredients (APIs),
manufactured under strict international quality
benchmarks, to Europe, Latin America, Africa, and
other Asian countries
Export of food and textile grade natural gums, extracted
from traditional plant sources

Partnerships & Production

Strategic partnerships with leading multinational food

and health care companies to introduce innovations in
products and services

Six modern manufacturing facilities spread across

South Asia, Middle East and Africa to optimize
production by utilizing local resources and the most
modern technology avai

MANUFACTURING FACILITIES IN INDIA

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Mr. Sunil Duggal took over as the Chief Executive Officer of
Dabur India Limited in June 2002, holding reins of the
organization he joined in 1995.

Mr. Duggal started his career as a management trainee in

Wimco Limited in 1981 after getting his Engineering Degree
(Electrical & Electronics) from BITS, Pilani, and Business
Management from IIM, Calcutta. His stint at Wimco continued
till 1994, with a break in between when he joined Bennett
Coleman & Co. Ltd for a short period. In 1994, he moved to
Pepsi Foods as GM, Sales Operation.

In 1995, he joined the Dabur family as General Manager (Sales

& Marketing) of the Family Products Division with products like
Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This
Division spearheaded the spectacular growth recorded by
Dabur in this period. Vatika was also launched during this
period and is now the Company's second biggest brand.

With his dynamic spirit and leadership abilities, he soon

became Vice-President and SBU-Head of the Family Products
Division. In July 2000 Mr. Duggal was appointed Director Sales
and Marketing of Dabur India Limited. And in 2002, he became
the CEO of the Company - a professional with valuable
experience to steer the company ahead in its growth plans.

Spanning a career of over 20 years, Mr. Sunil Duggal has

travelled widely across India and handled diverse portfolios that
have helped him understand the dynamics of FMCG businesses
and market trends. He is well versed in the intricacies of India's
regional diversities and consumer needs.
Mr. Duggal lives in Delhi with his wife and one child. Whenever
he gets a break from his official responsibilities, Mr. Duggal likes
to spend time at home with his family and an occasional round
of golf.

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 DABUR FOODS LTD. PROFILE

A research conducted by Blackstone Market Facts even pointed out that

Real was preferred by over 50% of the respondents. Whats more, Real
was liked for being the better tasting juice - a category where likeability is
primarily driven by taste.

Made from best quality fruits, Real does not have artificial flavors and
preservatives, and offer your kids not just great taste, but also FRUIT
POWER - the power of fruits the power to stay ahead. Loaded with the
power of Vitamin C, Real fruit juices have all the necessary nutrients that
keep you active all day long.

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 BRIEF ABOUT LEMONEEZ BRAND

A 250 ml bottle of Lemoneez is equal to juice 25 lemons approximately

Lemoneez Advantage:

Do away with hassles of cutting and squeezing lemons.

Provides consistent lemon taste and flavor, anytime of the year.

Lemoneez Usage:
Prepare Nimbu Pani

Prepare Lemon Tea

Add delicious lemon tang to Salads and Indian Curries,Marinate Meat

In fact, it can be used in place of lemon anywhere

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 BRIEF ABOUT CAPSICO BRAND
Raw Material used:
Ingredients- Fresh red pepper, vinegar, salt, cumin oil, permitted
emulsifying and stabilizing agents
Description- Long, slender and thin variety of chillies with rich red
colour and characteristic flavour and aroma of red chillies
Sourcing- Bihar, Andra Pradesh, Rajasthan and Karnataka
Locations-
Packing- Gunny bags

Product Attributes Finished Products:

Colour Red
Flavour Natural, characteristic red chilli flavour with cumin note
Consistency Freely flowable

Product Benefits:
Natural mild characteristic red chili flavor, with no added artificial flavors

Right balance of pungency to give the perfect taste and flavor

Maturation in wooden casks for seasons together gives the spicy smooth
flavor of red chilies

Prepared under hygienic conditions as per International specifications.

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 BRIEF ABOUT NATURES BEST BRAND

Under the `Nature's Best' brand meant for its institutional buyers, Dabur
Foods now intends supplying tomato purees, ketchups and dressings to
the smaller food kiosks and 5-Star hotels. Adds Mr Sharma, "There is a
need for packaged solutions, especially from the smaller eating kiosks
that lack space in their operations. Besides, tomatoes are used most in
Indian cooking.''

Dabur Foods, a 100 per cent subsidiary of Dabur India Ltd, has launched
Natures Best, a brand that will cater exclusively to the institutional
sector. The first product launched under this brand is tomato ketchup.

BIBLIOGRAPHY

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 www.dabur.com

www.wikipedia.com

Philip Kotler

www.ask.com

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 THANK
YOU

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