Dabur India Limited - MCX-sx

Transcription

Dabur India Limited
Corporate Profile
March 2013
1
1
Agenda
Dabur India-Introduction
FMCG Industry Scenario
Business Overview
Growth Strategy
Recent Performance
2
2
Dabur India: Overview
9
Established
E
t bli h d iin 1884 - more than
th
125
Years of Trust & Excellence
9
Among top 4 FMCG companies in India
9
g
in Ayurveda
y
and natural
World’s largest
healthcare
9
Revenue of Rs. 53.2 billion and profits of
Rs. 6.4 billion in FY2011-12
9
Strong brand equity

Dabur is a household brand

Vatika and Real are Superbrands

Hajmola , Real & Dabur ranked among
India’s Most Admired Brands
9
12 Brands with sales of over Rs. 1 billion
each
9
g
distribution networks
One of the largest
covering 5.8 million retailers across India
9
17 world class manufacturing plants
catering to needs of diverse markets
9
Strong overseas presence with c.
c 30%
contribution to consolidated sales
Twelve
l
Billion
illi
Rupee Brands
d
Dabur ranked as
Most Trusted
HealthCare,
Ayurveda brand in
India
Dabur moves up
15 places, ranked
186 in Fortune
India 500 list
“Dabur has surpassed the US$ 1 billion mark in revenues”
Ranked
amongst Top
100 Most
Exciting Brands
in India
3
3
Dabur: Vision and Core Values
Vision
•Dedicated to the health and well being of every household
Ownership
Passion for
Winning
Integrity
Core
Values
Innovation
Team Work
People
Development
Consumer
Focus
4
4
Key Milestones
1884
1972
1986
•Dr. SK Burman
started an Ayurvedic
Pharmacy in Kolkatta
•The company
shifted base to
Delhi from Kolkata
•Registered as
Public Limited
Company
1994
1998
2003
•Listed on the
B
Bombay
b
Stock
St k
Exchange
•Professionalized with
B
Burman
Family
F
il handing
h di
over day to
management
•Pharmaceutical Business
d
de-merged
d to
t focus
f
on core
FMCG business
2004
2005
2006
•International
Business set up in
Dubai to tap overseas
opportunity
•Acquired Balsara
strengthening Oral
care & gaining entry
into Home care
•Dabur Figured in Top
10 Great Places To
Work
2008
2010
2012
•Acquired Fem Care
Pharma entering
mainstream Skin care
• Overseas acquisitions -
•Crossed Rs. 50 bn
mark in annual
revenues and Market
Cap of c. US$4 billion
p, Turkey
y and
Hobi Group,
Namaste Laboratories, US
5
5
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
28.1
3.9
33.9
3.3
23.6
FY08
FY09
FY10
FY11
FY12
EBITDA (Rs.
(R billion)
billi )
FY08
FY09
FY10
FY11
FY12
Sh
Shareholders
h ld
F
Funds
d (R
(Rs. billion)
billi )
9.5
17.2
8.3
13.9
6.7
4.4
5.2
8.2
9.3
6.2
FY08
FY09
FY10
FY11
FY12
FY08
FY09
FY10
FY11
FY12
6
6
Global Footprint
Distribution Overview
Factory
Depot
Stockists
(Carry & Forward Agents)
Insti Stockists
Super stockists
Modern Trade
Stockist
Wholesalers
Retail trade
Military / CSD
Sub stockists
Rural trade
Shoppers & Consumers
Unit Canteens
Insti customers
Direct reach
0.8 mn outlets
3rd largest distribution network with a total reach of 5.8 mn retail outlets
8
8
Research & Development Focus
Team of scientists including
Ayurvedic doctors, Pharmacists,
Agronomists, Botanists, Tissue
Culture specialists, etc.
Strong New Product Development
9 Ayurvedic Medicines
9 Personal Care
9 Foods
9 Home Care
Agro Biotech Initiatives
9 OTC Healthcare
9 Protecting endangered herbs
9 Technical assistance to farmers
9 Contract cultivation of herbs
9 Green House at Nepal
Dabur Research Facilities
Agronomy Initiatives : Greenhouse at
Dabur Nepal & Uttaranchal
9
9
Agenda
Business Overview
Growth Strategy
Recent Performance
10
10
FMCG Industry Snapshot
FMCG Industry Size (in Rs. bn)
FMCG Industry Urban (in Rs. bn)
2,500
2,000
1,626
1 895
1,895
1,200
1,500
1,000
500
0
MAT Sep '11
MAT Sep '12
1 262
1,262
1 400
1,400
1,082
FMCG Industry Rural (in Rs. bn)
800
700
600
1,000
500
800
400
600
300
400
200
200
100
0
0
MAT Sep '11
MAT Sep '12
544
MAT Sep '11
633
MAT Sep '12
Source: AC Nielsen
Overview
9 FMCG sector in India continues to grow well in both urban and rural areas. Rural
India contributes to c.
c one third of FMCG sales in India
9 Growth driven by increasing consumption led by rise in incomes, changing
lifestyles and favorable demographics
9 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 by 2020
11
11
Penetration Levels: Sufficient Headroom
Rural Penetration
Urban Penetration
90%
80%
80%
77%
67%
70%
50%
59%
57%
60%
42%
40%
37%
32%
26%
30%
18%
20%
19%
18%
10%
3%
2%
5%
4%
0%
Toothpaste
Shampoo
Hair Oil
Skin Cream
Mosquito Repellants
Instant Noodles
Hair Dyes
Floor Cleaners
Source: Industry data
9 Low penetration levels offer room for growth across consumption categories
9 Rural penetration still lower but catching up with urban penetration levels
12
12
Per Capita Consumption: Room for Growth
India 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
77
7.7
7.4
8
27
2.7
3
2.5
2.4
7
2
6
5
4
1.5
3.2
1.1
1.0
1
3
2
0.8
1
0.3
0.5
0.3
0
0
China
Indonesia
India
Malaysia
China
Thailand
Indonesia
India
Malaysia
Thailand
Toothpaste – Per Capita Consumption (in US$)
in
US$
3.5
2.9
3
2.5
20
2.0
2
1.5
1
1.0
0.5
0.4
0.5
0
China
Indonesia
India
Malaysia
Thailand
Source: MOSL
13
13
Key Players: FMCG
in Rs.
Rs million
Company
Key Categories
Sales
Profit
Market Cap
Hindustan Unilever Ltd
Soaps, Detergents,
Personal Care,
Care Foods
229,877
,
27,907
,
975,094
,
Nestle India Ltd*
Food, Beverages, Infant
nutrition
83,023
10,679
455,564
Dabur India Ltd
Health Care,, Personal
Care, Homecare, Foods
52 832
52,832
6 449
6,449
233 640
233,640
Godrej Consumer
Hair Care, Soaps
48,509
7,267
248,455
Colgate Palmolive (I) Ltd
Oral Care & Toiletries
26,239
4,465
184,447
Glaxo Smithkline Consumer*
Consumer Health Care
30,794
4,368
177,802
Marico Ltd.
Hair care, Food, Skincare
39,968
3,171
140,394
Britannia Industries Ltd
Biscuits
54,607
1,995
59,422
Procter & Gamble Hygiene
and Health Care^
Feminine Hygiene,
personal care
12,947
1,813
81,151
Source: Published results for year ending 31.03.12
Market Cap
Cap. as of March 5
5, 2013
*Year ending 31.12.12
^Year ending 30.06.12
14
14
Dabur: Strong Presence in FMCG Categories
Category
Position
Market Share
Key Brands
Hair Care
3
12%
Dabur Amla hair Oil, Vatika hair oil &
Vatika Shampoos
Oral Care
3
13%
Red toothpaste, Babool, Meswak, Red
toothpowder
Ayurvedic
Tonics
1
67%
Dabur Chyawanprash
Digestives
1
56%
Hajmola
Fruit Juices
1
55%
Real Fruit Juices, Real Activ
Honey
1
50%
Dabur Honey
Glucose
2
25%
Dabur Glucose
Skin Care
(Bleaches)
1
50%
Fem
Air Freshener
1
40%
Odonil
Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives
15
15
Agenda
Business Overview
Growth Strategy
Recent Performance
16
16
Business Structure
Dabur India
Limited
International
Business (30.3%)
Domestic Business
(69.7%)
Consumer
Care
(56 0%)
(56.0%)
Foods
(10.1%)
(
)
Retail
(0.8%)
(
)
Others*
(2.7%)
(
)
Dabur
International
(17 5%)
(17.5%)
Hobi
Group
(2 6%)
(2.6%)
Namaste
Labs. LLC
(10 3%)
(10.3%)
Note: % figure in brackets indicate % share in Consolidated Sales for FY12
* Others includes Commodity Exports etc
17
17
Consumer Care Overview
Category-wise Share of Consumer Care Sales
Oral Care
17%
Skin Care
6%
Home Care
6%
Hair Care
30%
Health Supplements
21%
Digestives
8%
OTC & Ethicals
12%
9 Hair Care is the largest category and contributes to 29% of Consumer Care sales
9 Health Supplements contribute to 22% of Consumer Care sales
9 Oral Care, comprising toothpastes and toothpowders contributes to 18% of
Consumer Care sales
Note: Percentage share based on revenue for FY12
18
18
Consumer Care Categories
Hair Oils
Key Brands
#2 player in
Hair Oils
Dabur Amla:
Largest brand in
the portfolio
Vatika: Value added
coconut oil
Almond Hair Oil
Shampoo
Key Brands
#4 player in
Shampoos
Vatika range of shampoos
19
19
Oral Care
Key Brands
#3 player in
Toothpastes
#2 player in
Toothpowder
Dabur Red: Toothpaste
& Toothpowder
Babool: Targeted at
economy segment
Meswak: Premium
therapeutic
toothpaste
Skin Care
Key Brands
#1 player
l
in
i
Skin Care
(Bleaches)
Fem range of Bleaches
Gulabari
G
l b i range off
rose based skin
care products
Uveda:
U
d Range
R
off
Ayurvedic Skin
Care
20
20
Home Care
Key Brands
#1 player in Air
Fresheners
#1 p
player
y
in
Mosquito Repellant
Creams
#2 player
l
in
i Toilet
T il t
Cleaners
Odonil: Air freshner
range: Largest
L
t brand
b
d
in the portfolio
Odomos: Mosquito
repellant
ll t skin
ki cream
Sanifresh:
Toilet cleaner
9Odonil became one of the Billion Rupee Brands during 2011-12
21
21
H lth Supplements
Health
S
l
t
Key Brands
#1 player in
Ayurvedic
y
Tonics
#2 player in
Glucose
#1 player in
branded Honey
Dabur Chyawanprash:
Largest selling health
supplement in the
country
Dabur Glucose:
2nd largest
player in the
country
Dabur Honey: Largest
branded honey in the
country
Digestives
Key Brands
#1 player in
Herbal
Digestives
Hajmola: Flagship brand
for branded Digestives
Hajmola tasty
digestive candy
22
22
OTC and
d Ethicals
Ethi l
9 Repository of Dabur’s Ayurvedic Healthcare knowledge
9 Range of over 260 products
9 Focusing on multiple therapeutic areas
9 Focus on growing the OTC Health-Care portfolio aggressively
Key OTC Brands
Lal Tail
Honitus
Janma Ghunti
Dashmularishta
Ashokarishta
23
23
Foods Business
9 Foods portfolio comprises Juices and Culinary range
9 Juices are under the brands – Real, Activ and Burrst
9 Culinary range is under Hommade brand
9 Foods business has surpassed the Rs. 5 billion mark in sales
Foods
Key Brands
#1 player in
Fruit Juices
Real:
R
l Fl
Flagship
hi
beverages brand
Real Activ: Range
of 100% pure juice
24
24
International Business
Started as an
Exporter
Focus on Order
fulfillment through
India Mfg.
1980’s
Set up a franchisee at
Dubai in 1989
Demand generation
led to setting up of
mfg in Dubai & Egypt
Renamed franchisee as Dabur
International Ltd
Local operations further strengthened
Set up new mfg facilities in Nigeria,RAK
& Bangladesh
Early 90’s
2003 Onwards
Highlights

Dabur s overseas business contributes c.
Dabur’s
c
30% to consolidated sales led by CAGR of
32% in last 6 years
Focus markets:
GCC
Egypt
E
t
Nigeria
Turkey
Bangladesh
Nepal
p
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
Building scale
scale- c.
c 30% of
Consol. Sales
High Levels of Localization
Global Supply chain
Today
High Growth in IBD
18000
in Rs
Rs. million
16,161
16000
14000
12000
8,922
10000
8000
6000
4000
2000
2,258 2,917
1,281 1,807
3 760
3,760
4,770
,
6,025
0
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
International Sales Breakdown (FY12)
25
25
Africa and Middle East Overview
Real GDP Growth Rates (YoY) in %
Source: IMF
Africa’s Bulging Base
Source: McKinsey on Africa, June 2010
9 Middle East and Africa have witnessed stable GDP growth rates
9 Between 2005 and 2015, it is estimated that in Africa, the share of individuals earning
above US$1,000 will grow from 39% to 55%.
9 The rapidly emerging African middle class could number as many as 300 million, out of a
total population of one billion
9 The sheer volumes and the growth in the number of aspirational consumers with
disposable income creates huge opportunities for consumer products companies
26
26
Acquisition of Hobi Group, Turkey
9 Acquisition of Hobi Group, Turkey for a total
consideration of US$ 69 Million completed on
October 7, 2010
9 Hobi manufactures and markets hair, skin and
body care products under the brands Hobby
and New Era
9 Product
range
of
the
company
complementary to our product range
is
9 Acquisition provides an entry into another
attractive emerging market and a good
platform to leverage this across the region
27
27
Acquisition of Namaste Laboratories
9 Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake
in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011
9 Namasté is a leading ethnic hair care products company, having products for women of
colour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and African
markets
9 The company markets a portfolio of hair care products under the brand ‘Organic Root
Stimulator’ and has a strong presence in ethnic hair care market for women of colour.
9 Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5
billion and tap into significant market opportunity in the fast growing,
growing hugely populated (~1
Bn) yet highly underpenetrated consumer markets of Sub Saharan Africa
9 We intend to grow the non U.S. business ahead of U.S. business and are taking initiatives in
this direction
9 We have commenced local manufacturing for Namaste at our RAK facility in UAE
28
28
Agenda
Business Overview
Growth Strategy
Recent Performance
29
29
Growth Strategy
Three pronged Growth Strategy
Expand
Innovate
Acquire
Our differentiation is the herbal and ayurvedic platform
Expand
9 Strengthening presence in existing categories and markets as well entering new geographies
9 Maintain dominant share in categories where we are category builders like Health Supplements,
Honey etc. and expand market shares in other categories
9 Calibrated international expansion
p
– local manufacturing
g and supply
pp y chain to enhance flexibility
y
/ reduce response time to change in market demands
Innovate
9 Strong focus on innovation. Have rolled out new variants & products which have contributed to
around 5
5-6%
6% of our growth p.a.
9 Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste)
Acquire
9 Acquisitions critical for building scale in existing categories & markets
9 Should be synergistic and make a good strategic fit
9 Target opportunities in our focus markets
30
30
Recent Launches - India
Babool: Salt Variant
Thirty Plus
Activ: Banana Strawberry and
Green Apple Punch Variants
Odonil Gels
Gulabari: Saffron &
Turmeric
Cold Cream
Gulabari: Moisturizing Lotion
Fem: Saffron and Pearl Variants
31
31
31
Recent Launches - International
Vatika Enriched
Hair Oil – Black
Seed
Vatika Henna Hair
Color
Dabur – Medicated
Toothpaste
Vatika
Professional
Range
g
Curls Unleashed Range
32
32
32
Agenda
Business Overview
Growth Strategy
Recent Performance
33
33
Recent Financial Performance
Revenue (in Rs. Cr.)
EBITDA (in Rs. Cr.)
PAT* (in Rs. Cr.)
* After minority interest
¾ Consolidated Sales grew by 17.7% during
9MFY13
¾ Sales growth was a combination of volume
growth, price increases and translation gains
¾ EBITDA increased by 17.6%
17 6% and EBITDA margin
was steady at 18.0% in 9MFY13
¾ Material costs eased, with material costs at
49.4% of sales in 9MFY13 v/s 51.2% in 9MFY12
¾ Adpro
d
increased
d to 14.0% in 9MFY13 v/s
/ 12.2%
in 9MFY12
¾ Ab
Above factors
f t
t
translated
l t d into
i t growth
th off 18.7%
18 7%
in Consolidated PAT
¾ PAT Margins were steady at 12.2% in 9MFY13
34
34
Market Cap & Shareholding
Market Cap (Rs. Million)
Shareholding Structure*
231,800
DIIs, 5.1%
Others, 6.6%
FIIs 19 6%
FIIs, 19.6%
137,997
22,403
31,760
Mar‐2000
Mar‐2005
Promoters, 68.7%
Mar‐2010
Feb‐2013
*As of Dec 31, 2012
¾ Dabur has witnessed exponential increase in market capitalization over the years
¾ At present, Dabur has a market cap of INR 234 billion (as of March 5, 2013)
35
35
Consolidated P&L
IIn Rs. mn
R
Net Sales
Other Operating Income
Material Cost
% of Sales
Employee Costs
% of Sales
Ad Pro
% of Sales
Other Expenses
% of Sales
Other Non Operating Income
EBITDA
% of Sales
Interest Exp. and Fin. Charges
Depreciation & Amortization
Profit Before Tax (PBT)
Exceptional Item
Tax Expenses
Provision for Taxation for Earlier years
PAT(Before extraordinary item)
% of Sales
Extraordinary Item
PAT(After extraordinary Items)
y
((Profit)/Loss
)/
Minority Interest ‐
PAT (After Extra ord. item & Min. Int)
% of Sales
Q3FY13
16,307.2
52.6
7,953.6
48.8%
1,229.5
7.5%
2,350.5
14.4%
2,081.1
12.8%
220.3
2,965.4 18.2%
77.8
305.2
2,582.4
0.0
477.5
Q3FY12
14,526.8
46.0
7,404.0
51.0%
1,025.4
7.1%
1,982.4
13.6%
1,851.6
12.7%
167.1
2,476.6 17.0%
182.9
238.5
2,055.1
0.0
336.9
YoY (%)
Y
Y (%)
12.3%
2104.8
12.9%
0.0
2104.8
‐6.2
2111.1
12.9%
1718.3
11.8%
0.0
1718.3
‐10.0
1728.3
11.9%
22.5%
7.4%
19.9%
18.6%
12.4%
31.8%
19.7%
‐57.5%
27.9%
25.7%
41.8%
22.5%
22.1%
9MFY13
46,152.9
171.8
22,794.7
49.4%
3,503.3
7.6%
6,450.6
14.0%
6,006.6
13.0%
715.2
8,284.6 18.0%
439.2
842.4
7,003.0
‐46.6
1319.5
9MFY12
39,195.9
139.7
20,075.1
51.2%
2,917.9
7.4%
4,774.7
12.2%
4,985.9
12.7%
460.4
7,042.5 18.0%
481.2
739.1
5,822.1
0.0
1086.5
5637.0
12.2%
0.8
5637.8
9.1
5628.7
12.2%
4735.7
12.1%
0.0
4735.7
‐8.2
4743.9
12.1%
YoY (%)
Y
Y (%)
17.7%
13.5%
20.1%
35.1%
20.5%
55.3%
17.6%
‐8.7%
14.0%
20.3%
21.4%
#DIV/0!
19.0%
19.0%
18.7%
36
36
Consolidated Statement of Assets and Liabilities
Dabur India Limited
Consolidated Statement of Assets and Liabilities (Amount in Rs
Rs.mn)
mn)
Particulars
As at 31/12/2012 (Unaudited) As at 31/03/2012 (Audited)
Â EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital
1,743
1,742
(b) Reserves and surplus
18,799
15,430
Sub-total - Shareholders
Shareholders' funds
2. Share application money pending
allotment
3. Minority interest
4. Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (net)
(c) Other long-term
long term liabilities
(d) Long-term provisions
Sub-total - Non-current liabilities
5. Current liabilities
(a) Short-term borrowings
(b) Trade payables
(c )Other current liabilities
((d)) Short-term pprovisions
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) Deferred tax assets (net)
(e) Long-term loans and advances
(f) Other non-current assets
Sub-total - Non-current assets
2 Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and cash equivalents
(e) Short-term loans and advances
(f) Other current assets
Sub-total - Current assets
Total -Assets
20 542
20,542
17 172
17,172
106
30
5,497
322
0
6,569
12,388
6,830
274
0
5,799
12,904
3,728
5,138
8,636
1,579
,
19,082
52,117
3,409
2,581
7,713
2,415
,
16,117
46,223
9,930
7,807
997
0
4,382
1,844
24,960
8,873
7,807
893
0
3,935
1,019
22,527
5,446
7,340
5,836
4,350
3,638
548
27,158
52,118
3,932
8,239
4,617
4,184
2,401
322
23,696
46,223
37
37
Recent Accolades
Dabur has been voted by
consumers as Indian
P
PowerBrand
B
d 2011-2012
2011 2012
Dabur ranked 184 in
the FE-500 list of
India's Finest
Companies
Dabur has been ranked
as the Most Trusted
L d in
Leader
i the
th Healthcare
H lth
category in the Brand
Trust Report 2012
Dabur ranked as No.
2 Most Social Brand
of India,
India in the Social
Media report
launched at Click
Asia Summit 2012
Dabur's greenfield unit in
Baddi awarded LEED
India Silver Rating for
achieving Green Building
Standards
Dabur's Baddi Units
awarded Silver
Certification for
Enhancing
h
Manufacturing
f
& Supply Chain
Excellence, by ET–India
Manufacturing Excellence
cell
Dabur India Ltd has been
ranked among the Top 10
‘B t Companies
‘Best
C
i To
T Work
W k
For’ in the Manufacturing
sector by Business Today
Dabur ranked 37 in list
of India's Greatest
Wealth Creators 2011.
Dabur has been ranked
30 in the list of India's
Top Employment
Generators by Business
& Economy magazine
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Disclaimer
Some of the statements made in this presentation contain forward looking information that involve a
number of risks and uncertainties.
uncertainties Such statements are based on a number of assumptions,
assumptions estimates,
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
p y analyst
y calls and discussions. We do not assume anyy obligation
g
to update
p
the forward‐lookingg
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.
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Investor Relations
Dabur India Ltd
Contact:+91-11-42786000
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