Dabur India Limited

Corporate Profile
August, 2009

A Trust of 125 Years

 Contents

Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials

2 A Trust of 125 Years

 Dabur today:Largest Indian Personal &
Healthcare Company

Eight Billion Rupee brands

9 Largest Herbal & Natural Portfolio
9 4000 Distributors in India
9 Retail Reach 2,500,000
9 5 Umbrella Brands
9 350+ products
9 4000 employees
9 15 Manufacturing Plants
9 Sizeable Presence in high growth
international markets

3 A Trust of 125 Years

 Journey so far…
1884 The birth of Dabur

The Founder : 1972 The company shifts base to Delhi from Kolkatta
Dr.S.K.Burman

1986 Registered as Public Limited Company

1994 Listed on the Bombay Stock Exchange

1998 Professional team inducted to run the company

Old Office at Calcutta 2000 Crosses Rs 1000 Crore Turnover

2003 Pharmaceutical Business de-merged to focus on core FMCG

2004 Profit exceeds Rs.100 Crore

2005 Acquires Balara strenthening Oral care & provided entry into Home care segment
Corporate office, Ghaziabad
2006 Dabur Figures in Top 10 Great Places To Work

2007 Dabur ranked among 'Asia's Best Under A Billion' enterprises by Forbes

2008 Acquired Fem Care Pharma entering the mainstream Skin care segment

2009 Strong growth momentum continued in spite of general economic downturn

4 A Trust of 125 Years

 Strong Financials
KEY FINANCIALS : 2008-09
Sales
Rs Mn
28341
Market Cap $ 2.3 Bn
30000
CAGR-18% 23963
Cash Flow Rs.3.6 Bn
25000
20803
17565
20000
14170
EBIDTA Margin 18.3%
15000 12356

10000 PAT/Sales 13.8%

5000
RONW 48.4%
0
FY04 FY05 FY06 FY07 FY08 FY09

Rs Mn Net Income
4500 3913 22 EBITDA Margin
4000 CAGR-30% 3329
3500 20
2817 18.5
3000 18.1 18.3
18
2500 2142 17.1
16
2000 1558 15.3
1500 1065 14
13.3
1000
12
500
0 10

FY04 FY05 FY06 FY07 FY08 FY09 FY04 FY05 FY06 FY07 FY08 FY09
5 A Trust of 125 Years
 FY2008-09 : Highest organic growth in the decade

Balsara acquisition
added 10% to
topline in FY06
3000 18.3%
24.0%
2500 15.2%
18.3%
2000 13.8%
12.0%
9.2% 14.7%
1500 7.0%

1000

500
-3.8%
0
FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09
Robust growth driven 13% by volume and around 5% by price increases

6 A Trust of 125 Years

 Manufacturing Locations-India

„ First Ayurvedic
products company to
receive ISO 9002
Jammu (J&K) certification

Baddi (HP)
Sahibabbad (UP) „ Certificate of ‘Good
Manufacturing Practices’
Newai (Raj) to manufacture Ayurveda
Uttaranchal
One of our largest Drugs
manufacturing
Silliguri (WB)
facilities at Baddi,
HP Katni, (MP)
Silvassa

ƒHACCP Certificate
for food facilities at
Nepal and Rajasthan

Dabur Plant at Rudrapur,

Manufacturing Facilities
Uttaranchal

7 A Trust of 125 Years

 Manufacturing Locations-International
Birganj, Nepal

Dabur’s new plant at

Ras Al Kheima

Nepal

Bangladesh
Dubai
Nigeria Egypt
RAK

Key markets

Manufacturing Facilities

8 A Trust of 125 Years

 Research & Development Strengths

Team of 50 Scientists’ including Agronomy Initiatives

Ayurvedic doctors, Pharmacists,
Agronomists, Botanists, Tissue Culture Protecting Technical
specialists, etc endangered assistance to
herbs Farmers

Contract Green House

cultivation of at Nepal
herbs
Strong New Product Development

GREENHOUSE AT DABUR NEPAL DABUR RESEARCH FACILITIES

9Ayurvedic Medicines
9Personal Care
9Foods

9Home Care
9Health Supplements
9 A Trust of 125 Years
 Distribution Network : Route to Market

Factory D.C

Stockist
Stockist Superstockist
Superstockist

Wholesalers
Wholesalers Modern
Modern
Institutions
Institutions
Substockist
Substockist Trade
Trade
Semi
Semi Wholesalers
Wholesalers

Retail
Retail Trade
Trade Retail
Retail Trade
Trade

Shoppers
Shoppers &
& Consumers
Consumers

Dabur reaches a total of 2.5 Mn retail outlets; Direct Reach is 0.7 Mn outlets

10 A Trust of 125 Years

 Contents

Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials

11 A Trust of 125 Years

 Consumer Staples Sector Snapshot
Industry Size (US$ 18 bn)
4
9FMCG industry size pegged at US$ 18 bn.
9Personal care & Food products dominate
the sector 47
49
9Home,Hair & Skin care have low
penetration & huge potential
9Steady growth in most categories OTC Non Food Food

Source : AC Nielsen annual for CY07

Rural growth rates inching towards Urban Category wise share of the sector
20%
16% 15%
15% Others
12% 12% 12% Baby Care Household
4% 5% Personal Care
10% 9% 10% 10% 2%
22%
OTC Products
4%
5% Hair Care
3%
1% 8%
0% -1%
CY03 CY04 CY05 CY06 CY07 CY08
-5% Fabric Care
-8% 12%
-10% Urban Rural
Food Products
Rural India contributes 33% of the overall FMCG sector. 43%

Source: AC Nielsen Source : AC Nielsen

12 A Trust of 125 Years

 Category Penetration

Category Name Category Size (Rs Mn) All India % Urban % Rural %
Hair Oil 22,631 94 96 93
Health supplements* 1,681 8 14 5
Packaged fruit Beverages 12,000 16 30 10

Increase Urban Penetration

Mosquito repellants 66,70 32 58 20

Higher Overall Penetration

Washing powders 47,027 90 93 89
Washing cakes/ bars 28,269 88 Move 91 86
Rural
Utensil cleaners NA 29 Penetration 59 16
Shampoo 19,173 51 To Urban 62 46
Toilet Soap 62,170 91 levels 96 89
Tooth Paste 24,835 56 79 45
Tooth Powder 4,551 31 26 33
Fairness Creams NA 16 20 14
Cold Creams NA 1 3 1
Skin Cream 24,551 23 30 19
Branded Baby Oil NA 2 2 1

Source : Industry Data, Indian Readership Survey 2008 Round 2

Low penetration levels : room for sustained growth

* The category size is representative of Glucose market

13 A Trust of 125 Years
 Key players
USD Million
Company Key Categories Sales Profit Market Cap
Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4383 536 13,417
Tata Tea Tea 1011 115 697
Nestle India Ltd* Food, Beverages, Infant nutrition 915 119 4438
Dabur India Ltd Personal, Health & Homecare, Foods 590 82 2479
Britannia Industries Ltd Biscuits 706 38 729
Colgate Palmolive (I) Ltd Oral Care & Toiletries 374 61 1734
Marico Ltd. Hair care, Food, Skincare 478 38 1104
Glaxo Smithkline Consumer* Consumer Health Care 309 38 940
Cadbury India Ltd*** Chocolates, Confectionery, Nutrition 270 25 Unlisted
Reckitt Benckiser (India) Ltd**** Home Care 168 21 Unlisted
Godrej Consumer Products Ltd Hair Care, Soaps 290 36 1187
Procter & Gamble** Feminine Hygiene, personal care 157 35 462

Source- Published results for year ending 31.03.08; *Year ending 31.12.07; **Year ending 30.06.09 annualized; ***Year ending 31.12.04
^ updated for results announced until 5th May, 2009
14 A Trust of 125 Years
 Contents

Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials

15 A Trust of 125 Years

 Business Structure
Consumer Care Division Consumer Health Division
Personal care,Health care,Home Care & Foods Over the counter (OTC) & Ethical Ayurvedic portfolio

International Business Division

Health & Personal care in International markets

Others
IBD
1%
19%

CHD
7%

CCD
73%
16 A Trust of 125 Years
 CCD Category performance

25.0% 23%

20.0%
14% 14%
15.0% 11% 12%
10%
10.0%
5%
5.0%

0.0%

Digestives &

Baby Oils &

Home Care

Foods
Supplements
Hair Care

Oral Care

Skin Care
Candies
Health

9 Hair care the largest category continued its strong performance

throughout the year with 23% in FY09.
9 Foods category bounced back with 23% growth in Q4FY09 and thus
growing by 14% for the year.

17 A Trust of 125 Years

 Consumer Care Division Overview

2003-2004 2006-2007 2007-2008 2008-2009

Foods* FEM**
CCD
FPD HCPD Balsara

FPD:Family Products Division

HCPD: Health Care Products Division
•Foods division was a 100% subsidiary of DIL
** Acquisition under completion
Foods
Hair Care
Home Care 13%
32%
6%
Baby & Skin Care
5%
Digestives & Candies
7%

Health Suppl Oral Care

19% 18%

Above break up & Financials do not include Fem care acquisition

18 A Trust of 125 Years
 Brand Architecture

• Starting from Ayurveda, the company successfully ventured into herbal arena
becoming the ‘Herbal Specialist’
• While herbal businesses form the core with 85% of revenues, the company’s growth
ambitions are not limited by it.
• A robust brand architecture ensures that the core values remain intact

BRAND ARCHITECTURE

Natural / Non-herbal
Herbal space
space

Vatika
Dabur Hajmola New brand Real Balsara FEM
Premium
Herbal Tasty Ayurvedic Fruit Home Care Fairness Skin
Personal
Healthcare Digestives Skin care Beverages solutions
Care

Rs13.2 bn Rs2 bn Rs1.1bn NA Rs2.2 bn Rs 1 bn Rs 1 bn

•Brand size based on sales in India

19 A Trust of 125 Years
 Hair Oils
Dabur
17%
Others
Market Size Rs 33 Bn 41%
Dabur brands Rs 5.6 bn

Dey's lab Marico

3% 33%
Bajaj
6%

Mustard Amla hair Oil Test Launch: Amla

Enriched Coconut oil Perfumed Hair oil Coconut Hair Oil
Flower Magic

20 A Trust of 125 Years

 Shampoos

Dabur
P&G CavinKare
7%
Market Size Rs 20 Bn 26% 12%

Dabur brands Rs 1.3 bn

L'Oreal
4%

HUL
51%

Re-launch of Vatika Dandruff

Range of Vatika shampoos New launch-Vatika New launch-Vatika balck shine
Control Shampoo with 3
Conditioners shampoo
variants
21 A Trust of 125 Years
 Oral care

Others
14% Dabur
Market Size Rs 31 Bn Anchor 15%
2%
Dabur brands Rs 4.7 bn
Unilever
21% Colgate
48%

* Dabur’s share of oral care is 13% in value terms and

15% in volume terms

Toothpaste with extract of Premium Herbal Ayurvedic herbal

Babool tree Toothpaste toothpaste & powder

22 A Trust of 125 Years

 Health supplements
Chyawanprash Market
Others
9%
Emami
9%
Zandu
7%
Market Size Rs 6 Bn
Dabur

Dabur brands Rs 3.5 bn

B aidyanath 62.4%
12%

Above Market data for Health Supplement

Glucose Honey Chyawanprash & its variants

Glucose:New Brand Dabur Honey : New

ambassador-Cricket player campaign with AB
Zaheer Khan and MS Dhoni
23 A Trust of 125 Years
 Digestives
Others
22% Dabur
32%
Market Size Rs 5 Bn

Dabur brands Rs 1.5 bn Pfizer

13%
Glaxo Knoll
14% 19%

Digestive tablets Mint based remedy for Hajmola candies

digestion
24 A Trust of 125 Years
 Home Care
Mosquito repellant Cream
Market Size Rs 20 Bn category Air freshener category
Others
Others
9%
Dabur brands Rs 1 bn 6%

Above Market data for Entire Home care Dabur Dabur

Category 91%
94%

Odonil Room fresheners New Range of Surface cleaners Sanifresh Toilet Cleaners
25 A Trust of 125 Years
 Foods

8% 6%
2%
Market Size Rs 5 Bn
47%
Dabur brands Rs 2.5 bn 36%

Dabur Foods Tropicana Godrej Xs Fresh Gold Others

Consumer awareness though Range of Real Activ Juice

campaigns Test Launching Burrst:New (100% Juice)
Drinks brand in 1st week of
26 May A Trust of 125 Years
 Consumer Health Division
CHD Portfolio

OTC ETHICAL
(57%) (43%)

Generics Branded Branded Ethicals

Products Tonic Classicals

9 Range of over 260 products OTC portfolio:

9 Focusing on multiple therapeutic areas.
9Distribution coverage of 100,000 chemists,
~12000 vaidyas & 12000 Ayurvedic pharmacies
9Partnership with Institutions such as
Dhanwantry Ayurvedic Hospital for clinical trials
9 Thrust on OTC portfolio to leverage the huge
self medication market
Branded portfolio-
-Dabur Honitus-Syrup & Lozenges for
Cough/Cold,Badam Tail, Dabur active
antacid, Dabur Active Blood Purifier.
Generics-
Ashokarishta & Dashmularishta (Women's
health), Lavan Bhaskar Churna

27 A Trust of 125 Years

 International Business

Global Aspirations IBD over the years

9Started as an Exporter 6000
CAGR +25%
5250
1980’s 9Focus on Order fulfillment 5000

through India Mfg.

3760
(Rs.Mn)
4000

9Set up a franchisee at Dubai 2917

3000
in 1989 2258

Early 90’s 9Demand generation led to

2000 1807

1282

setting up of mfg in Dubai & 1000

Egypt 241

0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
9Renamed franchisee as Dabur
International Ltd
9Target markets divided into 3 categories :
9Local operations further Focus, Potential and Opportunistic Markets
1995-2000
strengthened
9Set up new mfg facilities in
9Leveraging ‘naturals wave’ to market Dabur
Nigeria,RAK & Bangladesh products in GCC & Africa

9Building scale-19% of overall

9Extending Dabur equity in neighboring
Dabur Sales (FY09) markets
Now
9High Levels of Localization

28 9Global Supply chain

A Trust of 125 Years
 Contents

Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials

29 A Trust of 125 Years

 Growth Strategy

EXPAND.. INNOVATE.. ACQUIRE..

PLATFORMS
Others
ƒHerbal platform in the
Natural personal care & health care
products
Deeper penetration Herbal ƒLeveraging ayurveda expertise
and expansion into
new markets
• South India Ayurveda
•Global markets Current categories New categories
North East&West India
MARKETS
South India
CATEGORIES
Global markets Entering new categories
Skincare
Home care
OTC Healthcare

30 A Trust of 125 Years

 Expansion strategy
® Entering new Categories
ƒ Skin Care : New Ayurvedic skin care range under a new brand to be launched
ƒ OTC Healthcare : Leveraging Ayurveda knowledge for a range of OTC portfolio
ƒ Fruit Drinks: Entry into the fast growing fruit drinks category leveraging the Real franchise
ƒ Home care : expansion across air fresheners, insect repellants & hard surface cleaners
® Targeting Inorganic opportunities
ƒ Market Entry : Acquisitions critical for entry into new markets and building scale in existing categories
ƒ Synergies : Should be synergistic and make a good strategic fit
ƒ Geographies : domestic and global opportunities

® Strong innovation programme

ƒ Contribution : New products to contribute 5-6% of revenues
ƒ Focus Categories : New product activations lined up in all categories
ƒ Renovation : Packaging renovations to keep older products salient

® Expanding across geographies

ƒ Overseas markets : 19% of overall company;target to sustain higher growth rates
ƒ South India : Increased contribution from 6% to 10% ; targeting 15% of domestic revenues

31 A Trust of 125 Years

 Contents

Dabur India-Introduction
Consumer Staples-Snapshot
Business overview
Brand/Growth Strategy
Financials

32 A Trust of 125 Years

 Topline/PAT performance: FY2008-09
(Including Retail)
Sales : FY 2008-09 vs 2007-08
2900
2834
2800
Rs. Crore 2700
2600

2500
18.3%
™ Sales increased by 18.3% to 2400 2396

touch Rs.2834 crore during FY09. 2300

2200

™ Consolidated PAT grew at 2100

FY08 FY09
17.5% in FY09 touching Rs.391.2
crore. PAT : FY 2008-09 vs 2007-08
400 391

380

360
17.5%
333
340

320

300
FY08 FY09

33 A Trust of 125 Years

 PAT performance: FY2008-09
(Excluding Retail)

420 408.7
400 Rs. Crore
™PAT growth excluding Retail
380
at 19.7% for FY09. 19.7%
™ The newly set up Retail 360 341.42
Venture incurred loss of Rs 17.9 340
crore during FY09
320

300

FY08 FY09

34 A Trust of 125 Years

 DIL Consolidated financials- P&L Q1FY10
DIL (Consolidated) P&L Q1FY10 Q1FY09 YoY (%)
Gross Sales 748 612 22.1%
Less:Excise Duty 5.4 8.4
Net Sales 742.7 604.0 23.0%
Other Operating Income 4.7 7.1 -34.4%
Material Cost 353 300 17.6%
% of Sales 47.2% 49.0%
Employee Costs 60 53 12.2%
% of Sales 8.0% 8.7%
Ad Pro 114 81 39.7%
% of Sales 15.2% 13.3%
Other Expenses 98 82 19.5%
% of Sales 13.1% 13.4%
Other Non Operating Income 3.2 4.9 -34.8%
EBITDA 126.1 99.1 27.2%
% of Sales 16.9% 16.2%
Interest Expenses 3.7 4.0 -8.9%
Depreciation/Amortization 12.3 11.7 5.8%
Profit Before Tax (PBT) 110.1 83.4 31.9%
Taxes 19.0 12.7 50.1%
Profit After Tax (PAT)(Before exceptional
item) 91.0 70.7 28.7%
% of Sales 12.2% 11.6%
Profit After Tax(After exceptional Items) 91.0 70.7 28.8%
Profit After Tax (After Extra ordinary item
& Minority Int) 91.4 70.7 29.4%
EPS (Rs) 1.06 0.82

35 A Trust of 125 Years

 DIL Consolidated financials- Balance Sheet
(In Rs cr) Q1FY10
DIL (Consolidated) Balance Sheet YTD June 09 YTD June 08
Sources Of Funds
Shareholders' Fund:
Share Capital 86.6 86.5
Reserves & Surplus 823 606
910 692
Minority Interest 7 5
Loan Funds:
Secured Loans 109 118
Unsecured Loans 109 218 35 154

Deffered Tax Liability 36 28

TOTAL 1170 879

Application of funds:
Fixed Assets:
Gross Block 1159 771
less: Depreciation 319 274
Net block 841 496
Investments 156 229
Current Assets,Loans & Advances
Inventories 403 374
Sundry Debtors 211 200
Cash & Bank balances 183 69
Loans & Advances 302 1100 243 886

Current Liabilities 607 486

Provisions 354 284
961 769
Net Current Assets 140 117
Miscellaneous Expenditure 8 13
Deffered Tax Assets 25 24
TOTAL 1170 879
36 A Trust of 125 Years
 Thank You

Investor Relations
Dabur India Ltd
Contact:+91-11-42786000

37 A Trust of 125 Years