Dabur:Overview

Dabur is the market leader in consumer products based on the traditional Indian ayurvedic herbal system of medicine. It has a fairly well-diversified product profile.

It operates in the following consumer product categories: hair oil, health supplements (Chyawanprash and digestives), oral care, shampoos, baby care, skin care, home care, and foods (juices and cooking pastes). Daburs core products, Chyawanprash (a health supplement), Dabur Amla Kesh Tel (herbal hair oil) and Hajmola (a digestive) dominate and have become generic in their categories, holding the majority market share in these segments.

Furthermore, Dabur has successfully demonstrated its ability to brand and market over-the-counter (OTC) products in new Ayurvedic segments such as cough syrups (for example, Honitus).

Dabur: Key Milestones

1884
Dr. SK Burman started an Ayurvedic Pharmacy in Kolkatta

1972
The company shifted base to Delhi from Kolkata

1986
Registered as Public Limited Company

1994
Listed on the Bombay Stock Exchange

1998
Professionalized with Burman Family handing over day to management

2003
Pharmaceutical Business de-merged to focus on FMCG business

2004
International Business set up in Dubai to tap overseas opportunity

2005
Acquired Balsara strengthening Oral care & gaining entry into Home care

2006
Dabur Figured in Top 10 Great Places To Work

2008
Acquired Fem Care Pharma entering mainstream Skin care

2010
Overseas acquisitions Hobi Group, Turkey and Namaste Laboratories, US

2011
Crossed Rs. 40 bn mark in annual revenues and Market Cap of US $4 billion.

Indian FMCG Market Segment

Baby Care 2%

Others 5% Hair Care 8%

Fabric Care 12% Food Products 43% Personal Care 22%

Household 4% OTC Products 4%

Budget to Budget Sectoral Indices Return:

24.9

Top 5 Gain (In %)

Top 5 Fall (In %)

23 15.2 11.1 1.1

-13.2 -12.9 -17.4

CONS DURA FMCG HEALTH CARE AUTO Cap Goods Oil & Gas Bankex Metal Power

-10.7

Financial Year 2011 - 2012

PSU

-25

Category Analysis of Product Segment

Indias Product Market Share peer comparision :Robust & Growing

Category Analysis of Product Segment

Indias Product Market Share peer comparision :Robust & Growing

Dabur : Manufacturing facilities in tax-free zones

Dabur: Porters Five Force Analysis

Threat Of Substitute Products FMCG or Healthcare products esp. Ayurvedic, hardly have substitutes so this threat is not very significant. However, some product substitutes and similar products by competitors do exist. Constantly re invent its existing product lines in order to cope up with the innovations of its competitors. Threat Of New Entrants Advantages -125 year legacy, first mover, learning curve, brand loyalty, patents ,economies of scale No significant entry barriers Bargaining Power Of Customers Has increased dramatically due to a wide range of available choices from competitors, both local and global Dabur has to formulate strategy in such a manner to keep abreast with the increasing competition by improving the quality and reducing the prices over the period. Bargaining Power Of Suppliers Very strong bond with the suppliers Has a policy of accountability to stakeholders - be it customers, shareholders, employees or suppliers (who have a vested interest in making it all happen) Rivalry Among Existing Competitors Key players and competitors of Dabur India currently are: Hindustan Unilever Ltd., Nestle India Ltd., Britannia Industries Ltd., Colgate Palmolive Ltd., Marico Ltd., Galaxo Smithkline consumer, Cadbury India ltd., Reckitt Benckiser Ltd., Procter & Gamble,Himani, Baidyanath and Zandu for Dabur Chyawanprash Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil Dabur has to constantly relook its strategy and keep reinventing and branding, in order to maintain and increase its market presence

Dabur : Strategic Business Units

Consumer Care Division

68%

FMCG portfolio comprising four distinct businesses: Personal Care Consumer Health Care Home Care Foods Catering to health and personal care needs of customers across different international markets spanning Middle East and Africa, South Asia, EU and U.S. Range of ethical and OTC products that deliver the ageold benefits of Ayurveda in modern readytouse formats

International Business Division

22%

8%

Consumer Health Division

Note: Percentage share in revenue based on FY11 Financials ; Hobi and Namaste included in International Business Division

Dabur: Robust Distribution Network

Factory
C&FA (Carry & Forward Agents)

Stockist

Super Stockist Sub Stockist

Institutions & Modern trade

Wholesalers

RETAIL TRADE CONSUMERS

Direct + Indirect Reach covering 2.8 Mn Retail Outlets

Dabur: Research & Development Focus

Team of scientists including Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue Culture specialists, etc.

Strong New Product Development

Ayurvedic Medicines Personal Care Foods Home Care OTC Healthcare

Agro Biotech Initiatives

Protecting endangered herbs Technical assistance to farmers Contract cultivation of herbs Green House at Nepal Dabur Research Facilities Dabur introduced more than 20 new products/variants during FY11 Agronomy Initiatives : Greenhouse at Dabur Nepal & Uttaranchal

Dabur: Financial Performance Sales Turnover

** Fem acquisition added 3.5% to topline in FY10 ^^Hobi and Namaste acquisitions added 4% to topline in FY11

Dabur: Financial Performance EBITDA Margin (in %)

In %
19.80%

19.90%

18.50% 18.10%

18.30%

FY07

FY08

FY09

FY10

FY11

Dabur: Financial Performance Net Profit After Tax

471.41 433.33 In Rs.Cr. 373.55 316.77 252.08

FY07

FY08

FY09

FY10

FY11

Dabur: Financial Performance

Return On Capital Employed(%)

66.07 67.51 61.62 47.98 44.16

FY07

FY08

FY09

FY10

FY11

Dabur: Financial Performance

Earning Per Share

In Rs. 4.32 3.67 2.92 2.71 4.98

FY07

FY08

FY09

FY10

FY11

Dabur: Financial Performance

Debt Equity Ratio

0.19 0.14

0.23

0.05 0.03

FY07

FY08

FY09

FY10

FY11

Dabur: Financial Performance

Market Capitalization
in Rs. Cr.

17407

8629

8640

8651

8676

FY07

FY08

FY09

FY10

FY11

Dabur:

BSE: Market Share Price Flactuation

250

200

150

BSE: Market Share Price Flactuation

100

50

P/E Ratio = Market Share price -----------------

0 Mar-03

Mar-04

Mar-05

Mar-06

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Earnings Per Share

DIL Shareholding Pattern as on 31st December, 2011

FI/Bank/Insurance 5.42 Foreign Promoter 0.06 FII 19.15 Bodies Corporate 0.43 NRIs/OCBs 0.36 General public 5.66

Indian Promoter 68.64

Mutual Funds / UTI 0.29

Dabur: Growth Strategy

Our differentiation is the herbal and ayurvedic platform

Expand

Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories Calibrated international expansion local manufacturing and supply chain to enhance flexibility/reduce response time to change in market demands

Innovate
Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste)

Acquire
Acquisitions critical for building scale in existing categories & markets Should be synergistic and make a good strategic fit Target opportunities in our focus markets

Dabur : Recent Accolades

Dabur ranked 182 in the ET-500 list of India Inc's Heroes

Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods space in India

Dabur ranked among Top 10 Best Companies To Work For in the Consumer Goods and Durables sector

Chyawanprash,Hajmola ,Real chosen by Indian consumers as 'Power Brands 2010-11'

Dabur ranked 200 in the Fortune India 500 list that ranks India's 500 largest corporations

Dabur ranked in the Top 100 in Business Today's BT 500 list of India's Most Valuable Companies. Dabur was ranked 62

Dabur India Ltd awarded the Best Run Award In Supply Chain by SAP

Dabur moves up to take the 78th spot in the Super-100 list, released by Business India

Recommendations:
Dabur is the limited product appeal of traditional Ayurvedic products which needs to be taking full potential to tab its Ayurveda Heritage. low tax rates because of factory locations in areas that are designated as tax benefit zones; any change in this law could affect earnings. Dabur needs to be strong in Key Markets further expanding the distribution network, also reaching out to new geographies. As the competition increases, Company needs to constantly invest in the brand in the form of higher A&P spendings. As high competition intensity in consumer care division business, company should focus more on its healthcare (CHD), OTC and International Business over the next 2-3 years. Rural Distribution Initiatives - ASTRA Re-organizing the distribution network in Rural areas. (pilot successful in UP and Maharashtra). Increasing supply chain efficiency through Improved Planning thus increasing operational Efficiency.

Bibliography:
http://www.moneycontrol.com/competition/daburindia/comparison/DI http://myiris.com/shares/company/writeDet.php?icode=dabindia#rec http://www.moneycontrol.com/financials/daburindia/ratios/DI http://money.livemint.com/IID50/F100096/ShareHolding/Company.aspx http://www.moneycontrol.com/company-facts/daburindia/management/DI#DI http://breport.myiris.com/RKGSSL/DABINDIA_20120202.pdf http://www.dabur.com/Investors%20Relation-Performance%20at%20a%20Glance

PRESENTED BY: MET MFM SEM-II( 2011-2014)

NAME GULSHAN PATIL RUPESH GAJARE ASHISH OZA JAIMIT THAKKAR SIDDHESH KOTHARE BONNIE LOBO SANJAY NIHALANI

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