Dabur
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Dabur as PDF for free.
More details
- Words: 1,552
- Pages: 24
Dabur India Limited
Presentation to Investors December 2004
1
Overview
One of the largest FMCG companies in India Consolidated Turnover of Rs.13.3 billion ( USD 300 mn)
Differentiated products Strong herbal and natural profile More than 100 years of experience in Ayurveda
Wide distribution network Covering 1.5 million retail outlets High penetration in urban and rural areas
Brand strength Strong brands in diverse categories of health and personal care Mother brand “Dabur” trusted for natural and herbal healthcare
2
Growth over last 10 yrs Sales : CAGR 16% 14000
Pharmaceuticals business of the company was demerged into Dabur Pharma Limited w.e.f. 1st April, 2003
11665 11632
12000
1838
2163
10426 9148.00
10000
8114
8000
10485
7068
11480
5618
6000 3160
4000
4041
2000 0 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 1200
PAT :23% CAGR 24% PAT : CAGR
1000
131
774
800
PHARMA FMCG
1012
779 644
600 343
400 200
FMCG + PHARMA
140
414
450
501
720
239 148
0 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
Rs.in Rs.in million
3
Corporate Governance
Professionally managed company Evolved from being a family managed enterprise until 1997-98 Rated at “GVC Level 2” by Crisil on Corporate Governance & Value Creation on a scale of 8 Board committees in place for Audit, Remuneration, Shareholder Grievances, Compensation and Nominations Best practices imbibed in Board processes, management, internal audit and risk evaluation
4
Dabur India Ltd. : Business Divisions
CONSUMER CARE DIVISION CONSUMER HEALTH DIVISION INTERNATIONAL BUSINESS DIVISION
FOODS
Range of personal care and health care products viz. hair care, oral care, skin care, baby care, health supplements and digestives International Business 10%
Range of health care products comprising Ayurvedic medicines and OTC Ayurvedic products
Foods 6%
Misc 1%
Consumer Health Division 6%
Dabur’s international business based in Dubai ; Having operations in Middle East, Asia, Africa, Australia, UK , US and Canada
Consumer Care Division 77%
* Division wise break down of Consolidated Revenues FY2003-04
Dabur Foods Ltd, a 100% subsidiary comprising Real Fruit Juices, Hommade cooking pastes & Lemoneez 5
Structure DABUR INDIA LIMITED
CONSUMER CONSUMER HEALTH HEALTH DIVISION DIVISION
CONSUMER CONSUMER CARE CAREDIVISION DIVISION
MISC. MISC. BUSINESS BUSINESS
Subsidiaries Dabur Dabur Nepal Nepal Pvt Pvt Ltd Ltd
Dabur Dabur Foods Foods Ltd Ltd
Dabur Dabur Egypt Egypt Ltd Ltd
Dabur Dabur International International Ltd Ltd
Asian Asian Consumer Consumer Care Care Pvt Pvt Ltd Ltd,, Bangla Bangla Desh Desh
African African Consumer Consumer Care Care Ltd Ltd,, Nigeria Nigeria
Weikfield Weikfield Intl.(UAE) Intl.(UAE) Llc Llc 6
6
Outperforming the sector
Outperformed the industry in 2003-04 and 2002-03
37%
40%
32%
35% 30% 25% 20% 15% 10% 5%
12%
10%
9%
6%
5%
-0.3%
0% -5%
Sales FY04
PAT FY04
Dabur
Sales FY03
PAT FY 03
FMCG Industry
•Source : Published Results of FMCG companies
7
Hair Oils Hair Oils market estimated by ORG at Rs.14.2 bn Dabur holds 19% share with product offerings in all categories Marico 28%
Others 36%
HLL 3% Bajaj 4%
Dabur 19% Emami 4%
Keo Karpin 6%
Value added products having herbal USP Dabur Amla hair oil – a perfumed hair oil with amla extract , Dabur’s largest brand Vatika Hair Oil - Coconut based hair oil with added herbs, one of the fastest growing brands in hair oil market Anmol Mustard Amla Hair Oil - newly launched on economy platform
8
Shampoos Shampoo category estimated by ORG at Rs.9 bn Value growth slowing down due to price cuts Dabur Entered Shampoo category in 1997-98, now hold 6% share Dominating the herbal niche in this highly competitive category
Nyle 3%
Lux 9%
Vatika 6%
Ayur 4%
Clinic Plus 26%
Chik 11% Head & Shoulders 7%
Vatika Henna Cream Conditioning Shampoo Vatika Anti Dandruff Shampoo Anmol Natural Shine Shampoo – launched in current year
Sunsilk 17% Clinic All Clear 11%
Pantene 7%
9
Oral Care
One of the largest personal care categories estimated at Rs.21 bn. Toothpowders account for 20% of the category Dabur holds 28% share in toothpowder market with Dabur Red Toothpowder Launched Dabur Red Toothpaste in 03-04
An Ayurvedic product Captured 1% share of toothpaste market in first year
Toothpowder 20%
Toothpaste 80%
10
Health Supplements Chyawanprash – largest Ayurvedic medicine with market size of about Rs.2 billion Dabur is market leader with 65% share Efficacy studies at leading research centers support product effectiveness Aggressive marketing inputs being aimed at category expansion
11% 12%
5%
7%
65%
Dabur Baidyanath Zandu Himani Others
11
Digestives Dabur holds 29% of the overall digestives market estimated at Rs.4 billion Leader in the herbal digestives category with 90% market share Products include Hajmola Tablet & Candy Pudin Hara (liquid, capsule & effervescent powder) Hingoli
Host of new product introductions under Hajmola brand
12
Baby Care & Skin Care Dabur’s baby care range includes baby oils and tonics Dabur Lal Tail – a baby massage oil with Ayurvedic formulation Dabur Janma Ghunti - Ayurvedic tonic for infants Gripe Water - Digestive tonic for babies Dabur Baby Olive Oil - Herb enriched olive oil for massage of infants
Dabur’s Skin care range includes Dabur Gulabari - Rose Water , a natural astringent and skin toner Gulabari Face Pack - blend of sandal and rose in a face pack Vatika Fairness Face Pack
13
Consumer Health Division
More than 100 years expertise in herbal Ayurvedic formulations. Over 260 medicines for treating a range of ailments and body conditions Manufacturing practices follow the Government’s GMP norms All Dabur products undergo scientific tests and clinical validation processes Tie-ups with Ayurvedic hospitals and colleges for research and promotion of Ayurveda Thrust on OTC health care range in future
Major OTC Categories
Cough & Cold
Joint Pain
Digestives
Life Style Diseases
Women Health
14
Growth Strategy ¾ Dabur as “herbal specialist”
PLATFORMS Others
¾ Leverage key brands to deliver growth by: Entering new categories Expanding presence in markets within India Growing global markets
Natural
Herbal
Ayurveda Current categories
New categories
North East&West India
South India
CATEGORIES
Global markets
MARKETS
15
Key Growth Drivers
Strong pipeline of extensions, variants and new products in existing categories Entry into new categories in skin care and OTC health care Consumer Health Division to launch the OTC range of Ayurvedic products Increasing presence in South India which contributes lower than other regions at present `Value for money’ brand Anmol for the price sensitive personal care segments International Business to strengthen presence in existing markets and enter new geographies aggressively
16
Brand Architecture
Vatika
Dabur
Hajmola
Anmol
Real
Herbal Beauty
Herbal Healthcare
Digestives & Confectionery
VFM range Hair Care & Skin Care
Fruit Beverages
17
Global Strategy ¾Expand business in South East Asia, Middle East and Africa
Developing Markets
¾Similar consumer preferences and media spillover ¾ Promote 100% subsidiaries / Joint ventures to overcome tariff barriers
¾Target Indian diaspora in the first horizon
Developed Markets
¾Large potential markets for herbal/Ayurvedic Offerings ¾Set up distribution alliances for entering mainstream herbal segments
Targeting to increase overseas revenues from 10% to 15% in next 2-3 years
18
Financials FY 2003-04 HY 2004-05
19
Key Highlights : 2003-04
Net Profit of the company increased by 40.6% Sales recorded growth of 9.5% Dabur India posted negative net working capital coming at par with best in FMCG industry Return on Capital Employed went up to 34.9% from 27.2% Return on Net Worth increased to 38.6% from 32.3% 51% reduction in debt from Rs.817 mn to Rs.398 mn EBIDTA margin went up to 12.0% from 10.6% Highest ever turnover of 4% from new products launched during the year Economic Value Added (EVA) increased from Rs.406 mn to Rs.680 mn. Highest ever dividend of 200% : payout ratio up to 57% 20
Key Highlights :HY 2004-05 12.3 per cent growth in sales of Dabur India, consolidated sales up by 18.9 per cent. Net profit increased by 42.1 per cent in Dabur India and 39.8 per cent on consolidated basis ROCE went up from 29.3 per cent to 39.1 per cent and RONW improved from 35.8 per cent to 42.1 per cent. EBIDTA margin of Dabur India went up from 12.2 per cent to 14 per cent due to significant operational efficiencies . On consolidated basis the margin went up from 12.8 per cent to 13.6 per cent . Consumer Care Division recorded growth of 12 per cent . Interim dividend of 100% declared by the Board
21
Capital Employed : Dabur India Rs.Crore
Dabur India practically debt free with further repayment of loans Net accretion in fixed assets of Rs.23 Crore on account of new units Net Working Capital increased due to strategic stocking of materials such as honey, oils, amla extract, polymer, saffron etc amounting to about Rs.21 Crore
400 334
350
316
300 250 200
178
155
150
171
30.9.04
127
31.3.04
100 22
50
(17)
0 -50
Net Fixed Assets
350 300 250 200 150 100 50 0
Investments
Net Working Capital
302
Total Capital Employed
267
30.9.04 31.3.04
22
40
Loans
Shareholders funds
Capital Employed changes on Consolidated basis mainly on account of Dabur India Ltd only
22
Outlook
Continue to outperform sectoral and category growths Operational efficiencies in focus Cash reserves to be used for acquisitions Deliver shareholder value in terms of EVA, ROCE and dividend payouts
23
Thank You
24
Presentation to Investors December 2004
1
Overview
One of the largest FMCG companies in India Consolidated Turnover of Rs.13.3 billion ( USD 300 mn)
Differentiated products Strong herbal and natural profile More than 100 years of experience in Ayurveda
Wide distribution network Covering 1.5 million retail outlets High penetration in urban and rural areas
Brand strength Strong brands in diverse categories of health and personal care Mother brand “Dabur” trusted for natural and herbal healthcare
2
Growth over last 10 yrs Sales : CAGR 16% 14000
Pharmaceuticals business of the company was demerged into Dabur Pharma Limited w.e.f. 1st April, 2003
11665 11632
12000
1838
2163
10426 9148.00
10000
8114
8000
10485
7068
11480
5618
6000 3160
4000
4041
2000 0 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 1200
PAT :23% CAGR 24% PAT : CAGR
1000
131
774
800
PHARMA FMCG
1012
779 644
600 343
400 200
FMCG + PHARMA
140
414
450
501
720
239 148
0 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
Rs.in Rs.in million
3
Corporate Governance
Professionally managed company Evolved from being a family managed enterprise until 1997-98 Rated at “GVC Level 2” by Crisil on Corporate Governance & Value Creation on a scale of 8 Board committees in place for Audit, Remuneration, Shareholder Grievances, Compensation and Nominations Best practices imbibed in Board processes, management, internal audit and risk evaluation
4
Dabur India Ltd. : Business Divisions
CONSUMER CARE DIVISION CONSUMER HEALTH DIVISION INTERNATIONAL BUSINESS DIVISION
FOODS
Range of personal care and health care products viz. hair care, oral care, skin care, baby care, health supplements and digestives International Business 10%
Range of health care products comprising Ayurvedic medicines and OTC Ayurvedic products
Foods 6%
Misc 1%
Consumer Health Division 6%
Dabur’s international business based in Dubai ; Having operations in Middle East, Asia, Africa, Australia, UK , US and Canada
Consumer Care Division 77%
* Division wise break down of Consolidated Revenues FY2003-04
Dabur Foods Ltd, a 100% subsidiary comprising Real Fruit Juices, Hommade cooking pastes & Lemoneez 5
Structure DABUR INDIA LIMITED
CONSUMER CONSUMER HEALTH HEALTH DIVISION DIVISION
CONSUMER CONSUMER CARE CAREDIVISION DIVISION
MISC. MISC. BUSINESS BUSINESS
Subsidiaries Dabur Dabur Nepal Nepal Pvt Pvt Ltd Ltd
Dabur Dabur Foods Foods Ltd Ltd
Dabur Dabur Egypt Egypt Ltd Ltd
Dabur Dabur International International Ltd Ltd
Asian Asian Consumer Consumer Care Care Pvt Pvt Ltd Ltd,, Bangla Bangla Desh Desh
African African Consumer Consumer Care Care Ltd Ltd,, Nigeria Nigeria
Weikfield Weikfield Intl.(UAE) Intl.(UAE) Llc Llc 6
6
Outperforming the sector
Outperformed the industry in 2003-04 and 2002-03
37%
40%
32%
35% 30% 25% 20% 15% 10% 5%
12%
10%
9%
6%
5%
-0.3%
0% -5%
Sales FY04
PAT FY04
Dabur
Sales FY03
PAT FY 03
FMCG Industry
•Source : Published Results of FMCG companies
7
Hair Oils Hair Oils market estimated by ORG at Rs.14.2 bn Dabur holds 19% share with product offerings in all categories Marico 28%
Others 36%
HLL 3% Bajaj 4%
Dabur 19% Emami 4%
Keo Karpin 6%
Value added products having herbal USP Dabur Amla hair oil – a perfumed hair oil with amla extract , Dabur’s largest brand Vatika Hair Oil - Coconut based hair oil with added herbs, one of the fastest growing brands in hair oil market Anmol Mustard Amla Hair Oil - newly launched on economy platform
8
Shampoos Shampoo category estimated by ORG at Rs.9 bn Value growth slowing down due to price cuts Dabur Entered Shampoo category in 1997-98, now hold 6% share Dominating the herbal niche in this highly competitive category
Nyle 3%
Lux 9%
Vatika 6%
Ayur 4%
Clinic Plus 26%
Chik 11% Head & Shoulders 7%
Vatika Henna Cream Conditioning Shampoo Vatika Anti Dandruff Shampoo Anmol Natural Shine Shampoo – launched in current year
Sunsilk 17% Clinic All Clear 11%
Pantene 7%
9
Oral Care
One of the largest personal care categories estimated at Rs.21 bn. Toothpowders account for 20% of the category Dabur holds 28% share in toothpowder market with Dabur Red Toothpowder Launched Dabur Red Toothpaste in 03-04
An Ayurvedic product Captured 1% share of toothpaste market in first year
Toothpowder 20%
Toothpaste 80%
10
Health Supplements Chyawanprash – largest Ayurvedic medicine with market size of about Rs.2 billion Dabur is market leader with 65% share Efficacy studies at leading research centers support product effectiveness Aggressive marketing inputs being aimed at category expansion
11% 12%
5%
7%
65%
Dabur Baidyanath Zandu Himani Others
11
Digestives Dabur holds 29% of the overall digestives market estimated at Rs.4 billion Leader in the herbal digestives category with 90% market share Products include Hajmola Tablet & Candy Pudin Hara (liquid, capsule & effervescent powder) Hingoli
Host of new product introductions under Hajmola brand
12
Baby Care & Skin Care Dabur’s baby care range includes baby oils and tonics Dabur Lal Tail – a baby massage oil with Ayurvedic formulation Dabur Janma Ghunti - Ayurvedic tonic for infants Gripe Water - Digestive tonic for babies Dabur Baby Olive Oil - Herb enriched olive oil for massage of infants
Dabur’s Skin care range includes Dabur Gulabari - Rose Water , a natural astringent and skin toner Gulabari Face Pack - blend of sandal and rose in a face pack Vatika Fairness Face Pack
13
Consumer Health Division
More than 100 years expertise in herbal Ayurvedic formulations. Over 260 medicines for treating a range of ailments and body conditions Manufacturing practices follow the Government’s GMP norms All Dabur products undergo scientific tests and clinical validation processes Tie-ups with Ayurvedic hospitals and colleges for research and promotion of Ayurveda Thrust on OTC health care range in future
Major OTC Categories
Cough & Cold
Joint Pain
Digestives
Life Style Diseases
Women Health
14
Growth Strategy ¾ Dabur as “herbal specialist”
PLATFORMS Others
¾ Leverage key brands to deliver growth by: Entering new categories Expanding presence in markets within India Growing global markets
Natural
Herbal
Ayurveda Current categories
New categories
North East&West India
South India
CATEGORIES
Global markets
MARKETS
15
Key Growth Drivers
Strong pipeline of extensions, variants and new products in existing categories Entry into new categories in skin care and OTC health care Consumer Health Division to launch the OTC range of Ayurvedic products Increasing presence in South India which contributes lower than other regions at present `Value for money’ brand Anmol for the price sensitive personal care segments International Business to strengthen presence in existing markets and enter new geographies aggressively
16
Brand Architecture
Vatika
Dabur
Hajmola
Anmol
Real
Herbal Beauty
Herbal Healthcare
Digestives & Confectionery
VFM range Hair Care & Skin Care
Fruit Beverages
17
Global Strategy ¾Expand business in South East Asia, Middle East and Africa
Developing Markets
¾Similar consumer preferences and media spillover ¾ Promote 100% subsidiaries / Joint ventures to overcome tariff barriers
¾Target Indian diaspora in the first horizon
Developed Markets
¾Large potential markets for herbal/Ayurvedic Offerings ¾Set up distribution alliances for entering mainstream herbal segments
Targeting to increase overseas revenues from 10% to 15% in next 2-3 years
18
Financials FY 2003-04 HY 2004-05
19
Key Highlights : 2003-04
Net Profit of the company increased by 40.6% Sales recorded growth of 9.5% Dabur India posted negative net working capital coming at par with best in FMCG industry Return on Capital Employed went up to 34.9% from 27.2% Return on Net Worth increased to 38.6% from 32.3% 51% reduction in debt from Rs.817 mn to Rs.398 mn EBIDTA margin went up to 12.0% from 10.6% Highest ever turnover of 4% from new products launched during the year Economic Value Added (EVA) increased from Rs.406 mn to Rs.680 mn. Highest ever dividend of 200% : payout ratio up to 57% 20
Key Highlights :HY 2004-05 12.3 per cent growth in sales of Dabur India, consolidated sales up by 18.9 per cent. Net profit increased by 42.1 per cent in Dabur India and 39.8 per cent on consolidated basis ROCE went up from 29.3 per cent to 39.1 per cent and RONW improved from 35.8 per cent to 42.1 per cent. EBIDTA margin of Dabur India went up from 12.2 per cent to 14 per cent due to significant operational efficiencies . On consolidated basis the margin went up from 12.8 per cent to 13.6 per cent . Consumer Care Division recorded growth of 12 per cent . Interim dividend of 100% declared by the Board
21
Capital Employed : Dabur India Rs.Crore
Dabur India practically debt free with further repayment of loans Net accretion in fixed assets of Rs.23 Crore on account of new units Net Working Capital increased due to strategic stocking of materials such as honey, oils, amla extract, polymer, saffron etc amounting to about Rs.21 Crore
400 334
350
316
300 250 200
178
155
150
171
30.9.04
127
31.3.04
100 22
50
(17)
0 -50
Net Fixed Assets
350 300 250 200 150 100 50 0
Investments
Net Working Capital
302
Total Capital Employed
267
30.9.04 31.3.04
22
40
Loans
Shareholders funds
Capital Employed changes on Consolidated basis mainly on account of Dabur India Ltd only
22
Outlook
Continue to outperform sectoral and category growths Operational efficiencies in focus Cash reserves to be used for acquisitions Deliver shareholder value in terms of EVA, ROCE and dividend payouts
23
Thank You
24
