UBS Asian Consumer Conference 2016

Dabur India Ltd
Investor Presentation
June 2016
Dabur Overview
One of the oldest and largest FMCG
Companies in the country
World’s 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
1
Ayurveda: Dabur’s Core Philosophy
Stringent
Quality Test
Supporting
cultivation
of rare
herbs for
Ayurvedic
medicines
Ayurvedic
doctors
support
World’s best
Ayurvedic
R&D
facility
LIVEVEDA
PORTAL
Ayurveda- A
Click Away !!!!
2
3
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
4
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
5
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
7
Super Sockist
Sub Sockist
Retailer
Retailer
Consumer
Consumer
Retailer
Consumer
Consumer
Distribution Expansion
•
•
•
•
•
•
•
•
•
8
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 Mar’16
Premiumization is the key …A few Examples
17
INTERNATIONAL
BUSINESS
18
Business Overview
Dabur
International(FY16)
In INR Mn
16161
Organic
Business(70%)
Asia
17%
19
FY15
Inorganic
Business(30%)
FY13
Middle East
Europe
11%
FY14
27121
18338
FY12
Americas
17%
23108
24226
Middle East
33%
Africa
22%
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 IBD’s 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 IBD’s
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 Dabur’s shares are held by the Public
Promoters
68%
29
Consolidated P&L
DIL (Consolidated) P&L in Rs. million
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
PAT(Before extraordinary item)
% of Sales
Extraordinary Item
PAT(After extraordinary Items)
Minority Interest ‐ (Profit)/Loss
PAT (After Extra ordinary item & Minority Int)
% of Sales
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