Investors Presentation Dabur April 06

DABUR INDIA LIMITED
PRESENTATION TO INVESTORS
April 2006
1 Dabur.Celebrate Life
AGENDA
INDUSTRY SCENARIO
COMPANY BACKGROUND
BUSINESS PROFILE
GROWTH STRATEGY
KEY FINANCIALS & UPDATES
CONSUMER SECTOR OVERVIEW
•Buoyancy in FMCG Sector

•Moderate price increases across categories
•GDP growth continues to be strong
• Heightened new product development activities to take advantage of
increasing demand
•Increase in demand led by
•Changing lifestyles
•Favorable demographics
•Increasing disposable incomes
•Advent of modern trade
STRONG ECONOMIC OUTLOOK
12.00%
9.60% 9.00%
10.00% 9.10% 8.90%
7.90% 8.00%
7.80%
8.00% 6.80% 6.60%
6.80% 6.60%
6.00%
4.00%
3 YRS OF STABLE GROWTH
3.30% 3.00%
2.00% 1.10%
Growth in %
0.00%
FY02 FY03 FY04 FY05 FY06E
-2.00%
-4.00%
-6.00%
Agriculture
-8.00% -7.2% Industry
-10.00% Services
9.00% 8.50%
Years 7.50%
8.00% 6.90%
7.00%
5.80%
GDP GROWTH OF 8.1% IN HY 06 6.00%
5.00% 4.00%
4.00%
3.00%
2.00%
1.00%
0.00%
* Source : CSO FY02 FY03 FY04 FY05 FY06E
FMCG SECTOR PERFORMANCE - SNAPSHOT
35%
30% 30%
28%
26%
25% Volume
GROWTH ACROSS
Value
20%
17%
CATEGORIES
15%
12%
11%
10% 8%
5%
5% 3% 3.3%
0%
Pe rfum e d Coconut Oil Norm al Anti dandruff Toothpas te s
Hair Oil s ham poo s ham poo
Source: AC Nielsen Retail Audit report Dec 05

AGENDA
INDUSTRY SCENARIO
COMPANY BACKGROUND
BUSINESS PROFILE
GROWTH STRATEGY
DABUR GROUP – AN INTRODUCTION
Largest Indian Personal &

World Leader in Ayurveda
Health care Company – Portfolio of over 400
Revenue of over USD 350 mn
Herbal / Ayurvedic Products
Market Cap of USD 1.5 Bn
Professionally Managed A Trusted Indian Strong Internal Competencies

Strong rating on governance Robust Manufacturing Set up &
by CRISIL Brand State of the Art R&D Facilities
DABUR GROUP – ON GROWTH PATH
CAGR of 20% in revenues
1800
1600
1400
1200
1000 Dabur
India
800
Dabur
600
Pharma
400
200
0
1980
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
Dabur Pharma was part of Dabur India prior to 2003; Pharma business demerged into separate 2005
company in 2003-04
OUTPERFORMING THE SECTOR
Outperformed the industry in 2004-05, 2003-04 and 2002-03
Dabur vs Industry: Sales Growth

Dabur vs Industry: PAT Growth
20% 46%
16% 50%
37%
15% 12% 40% 32%
30% Dabur
Growth (%)
10% 7% Dabur
Growth (%)
6% 20% Industry
5% 9% 10% 10%
5% Industry
10%
-0.30%
0% 0%
FY03 FY04 FY05 FY03 FY04 FY05
-5%
Years
Years
•Source : Published Results of FMCG companies
MANAGEMENT – BEYOND PROMOTERS
A commitment of the Burmans to make Dabur a professionally

1998
managed outfit – move out of executive role
Board of Directors restructured to provide more room for

2002 independent directors
Dabur Rated at “GVC Level 2” by Crisil on Corporate

2003 Governance & Value Creation on a scale of 8
Best practices strengthened in Board processes, Shareholder

2004 Disclosures, Internal Audit and Risk Mapping
2005 Awarded by ICSI for Excellence in Corporate Governance
STRONG COMPETENCIES …
The Range & The Value Add Brand Capabilities Strong Supply Chain Capability
Comprehensive Innovative Processes Distribution reach of

Range of Products around 1.6 million retail
Product Adaptation
outlets
Proven Efficacy
Media & Advertising
Assured Supply of rare
Strong R&D and Management
medicinal herbs in a cost
Claims Support
Modern Trade effective manner
Management
GMP certified
Calibrated NPD Process manufacturing facilities in
India & the Middle East
MANUFACTURING PRESENCE - India
Jammu,
J&K
Sahibabad,
UP
Baddi, HP Birganj,
Nepal
Jaipur,
Rajasthan Pantnagar,
Uttaranchal
Silvassa
Narendrapur,
W.B
3 more facilities
Kanpur, UP
added with Balsara
Acquisition
Over 27 CFA’s Manufacturing
across the country Facilities
MANUFACTURING PRESENCE – THE BIGGER PICTURE
London, Moscow,
U.K. Russia
New Jersey,
U.S.A
Birganj, Nepal
Cairo, Egypt
Dhaka,
Bangladesh
Lagos,Nigeria
Offices
Dubai, U.A.E
Branch
Manufacturing
Facilities
…..On the Expansion Mode
AGENDA
INDUSTRY SCENARIO
COMPANY BACKGROUND
BUSINESS PROFILE
GROWTH STRATEGY
DABUR INDIA LTD - BUSINESS DIVISIONS
CONSUMER CARE Range of personal care and

DIVISION 62%
health care products
CONSUMER HEALTH Range of Ayurvedic medicines

DIVISION 8%
and OTC Ayurvedic products
INTERNATIONAL Dabur’s international business 9%

BUSINESS DIVISION based in Dubai
Dabur Foods Ltd, a 100% subsidiary

FOODS BUSINESS comprising Real Fruit Juices, 10%
Hommade cooking pastes & Lemoneez
This business having been recently

BALSARA BUSINESS 10%
acquired by Dabur, comprises of
Oral Care and Household Products
(Breakup based on nine month period ending Dec 2005) 15 Dabur.Celebrate Life
DABUR INDIA LTD – CCD REVENUE BREAKUP
For nine months ending Dec 05(including Balsara)
Home Car e
6% He a lt h
supple me nt s
23%
Hair Car e
31% Diges tives
10%
Baby &Skin Car e

8%
Or al Car e
22%
CCD – HAIR OILS CATEGORY
Key Highlights Competitive Profile
Hair Oils Category
Hair oil market estimated at Rs.15.5 Marico

28%
bn Others
36%
Two large domestic players – Dabur &

HLL
Marico dominate the category 3%
Dabur
Bajaj Keo Karpin 19%
Dabur’s Key Brands 4%
Emami 6%
4%
Dabur Amla Hair Oil
Vatika Hair Oil
Anmol Sarson Amla Hair Oil
CCD – SHAMPOO CATEGORY
Market size estimated at Rs. 10.5 bn Shampoo Category

Dabur
6% Others
Low penetration and consumption 7%
indicates category potential Ayur
4%
P&G HLL
Stabilization in the category after 16% 53%
price wars Cavinkare
14%
Dabur’s Key Brands

Vatika Henna Conditioning Shampoo
Vatika Anti Dandruff Shampoo
Anmol Silky Black Shampoo
CCD – ORAL CARE CATEGORY
Oral care market estimated at Rs.23bn

Oral Care Category
Ajanta India
Toothpastes account for 80%, 2%
toothpowders are 20% of the category Others
9%
Anchor
Dabur with 12.4% share is no.3 player Health
after HLL and Colgate 5%
Dabur
Balsara acquisition has enabled Dabur to 12%
be present in all price segments of HLL Colgate
toothpastes 26% 46%
Dabur’s key brands

Dabur Red Toothpowder
Dabur Red Toothpaste
Babool Toothpaste
Meswak Toothpaste
Promise Toothpaste
CCD – HEALTH SUPPLEMENTS CATEGORY

Chyawanprash Category
Chyawanprash category size estimated at Zandu

Rs 2 bn Others
7% 10%
Dabur pioneered the Chyawanprash

Baidyanath
category over 30 years ago and is the
market leader 11%
Dabur
Received “Brand re-launch of the 63%
Year” award from IMA Emami
Chyawanprash variant ‘Chyavanshakti’ 9%
launched
Dabur Honey : largest national player in

branded honey
Grown at a CAGR of 26 % during FY 03
– FY 05
CCD – DIGESTIVES & CONFECTIONERY CATEGORY
Digestives Category
Digestives market including antacids is

estimated at Rs.2.5 bn Glaxo S m ithkline
Others
5%
12%
Dabur defined the Herbal Digestives

segment using traditional Ayurvedic P fiz er
17%
remedies
K noll D abu r
P h armaceutical 44%
22%
Hajmola tablets
Hajmola candy
Hajmola Anardana
Pudin Hara
Hingoli
CCD – SKIN & BABY CARE CATEGORY
Skin and Baby Care market size estimated at Rs Baby Oil Category
13 bn
AD Others
Dabur Lal Tail is the largest selling baby oil in Vitamin 13% Dabur Lal
Tail
India Keo Karpin 4%
36%
4%
Bertolli
Dabur Gulabari – A branded rose water 4%
offering, is one of the fastest growing in this Olemessa

Figaro
4% J&J
segment 10% 25%
Skincare identified as one of thrust areas going

forward
Vatika Fairness Face Pack
Dabur Anmol Cold Cream launched in
2004-05
Vatika Honey & Saffron Soap under test
launch
HOME CARE
Key Highlights
With the Balsara acquisition, Dabur has
entered the household care category with
4 offerings
Odonil : a generic name in Air freshener
segment
Odomos : dominant share of personal
application insect repellants
Odopic – Dishwashing and surface cleaner
with strong equity in West India
Sanifresh : No.2 in toilet cleaner market
Total market size estimated at about

Rs.20 billion
Attractive categories with CAGR of 15-
25% and low penetration levels
CONSUMER HEALTH DIVISION
Key Highlights
LivFit
One of the key businesses identified as a
growth driver
Over 260 medicines for treating a range of
ailments and body conditions
All Dabur products undergo scientific tests
and clinical validation processes
Tie-ups with Ayurvedic hospitals and colleges
for research and promotion of Ayurveda
Dabur Ayurvedic Counters to reach out to
consumers directly
Thrust on OTC health care range in future
Major OTC Cough Life Style Women

Joint Pain Digestives
categories & Cold Diseases Health
FOODS BUSINESS DIVISION
Market Dynamics Competitive Profile

Category estimated at Rs. 2.2 bn
Others
Real Fruit Juice (Dabur) & 3%
Tropicana (PepsiCo) dominate the Tropicana
category 40%
Dabur
57%
Increasing health consciousness
leading to category growth of 30%
Focus on innovation and strong

growth

Real Fruit Juices
Real Activ Fruit & Veg Juices
Coolers
Hommade
IBD – A BACKGROUND
Stage 4
Stage 3 Extending local
International presence
Stage 2
business THE NEXT
Local LOGICAL STEP
Stage 1 Manufacturing • Acquired
Redrock and •Strategy in place to
• Set up renamed it Dabur establish strong global
Exporter Redrock,a International presence
franchisee in 1989 Limited •High Levels of
at Dubai Localization in Focus
• Prior to 1989 • Local
• Focus on Operations Markets
• Focus on Order Demand strengthened in •Continue to seed
Fulfillment generation Dubai and Egypt Potential markets till
• Domestic • Local • New they are upgraded to
Manufacturing Manufacturing Manufacturing Focus Market
Initiated in Dubai facilities set up in
and Egypt Nigeria and
Bangladesh
We are Here
FOCUS MARKETS – An Overview
DABUR IBD – FOCUS MARKETS
South Asian Arabia Africa North America

Subcontinent
Pakistan, Nepal & GCC Countries

Nigeria & Egypt U.S.A & UK
Bangladesh
POTENTIAL MARKETS – AN OVERVIEW
DABUR IBD – POTENTIAL MARKETS
South Asia Arabia CIS
Russia & Other

Sri Lanka & Malaysia Iran, Iraq & Sudan
CIS markets
AGENDA
INDUSTRY SCENARIO
COMPANY BACKGROUND
BUSINESS PROFILE
GROWTH STRATEGY
THE GROWTH STRATEGY
Others PLATFORMS
Herbal specialist platform
Natural Herbal platform in the personal care &
health care products
Leveraging Ayurveda expertise
Herbal
Deeper penetration and

expansion into new markets Ayurveda
South India
Current categories New categories
Global markets
North East&West India
MARKETS
South India CATEGORIES
Entering new categories
Global markets Skincare
Home care
OTC Healthcare
BRAND DNA – THE POWER BRAND STRATEGY
Vatika Dabur Hajmola Anmol Real
VFM range Fruit

Herbal Digestives &
Herbal Beauty Hair Care & Beverages
Healthcare Confectionery
Skin Care
Hair Oils Oral Care Digestive Hair Care Natural

tablets Fruit
Shampoos Health Shampoos Juices
Supplements Digestive
Skin Care Candies Skin care Coolers
OTC Health
Care Other
Digestives
Classical
Ayurvedic
medicines
AGENDA
INDUSTRY SCENARIO
COMPANY BACKGROUND
BUSINESS PROFILE
GROWTH STRATEGY
KEY HIGHLIGHTS: 2004-05
Growth of 10.5% in DIL and

Sales 15.6% for consolidated
Growth of 46.3% in DIL and for

Net profit consolidated
ROCE Increased from 34.9% to 38.7%

for DIL
EBIDTA % Increased from 12% to 14.8%

for DIL
Went down from negative 5

Working Capital days to negative 20 days
250% dividend- payout ratio of

Div Payout
48.3%
Performance Snapshot – YTD 31st Dec ‘05
CONSOLIDATED SALES GROWTH: 24.3%
DIL STANDALONE SALES GROWTH: 8.5%
CONSOLIDATED PAT GROWTH: 46.5%
DIL STANDALONE PAT GROWTH: 30%
CONSOLIDATED EBIDTA GROWTH: 42.3%
DIL STANDALONE EBDITA GROWTH: 31.8%
THE WAY FORWARD….
Deliver
shareholder
value in terms
of
Inorganic growth Strong free cash
strategy to flows,
acquire EVA
businesses/
ROCE and
brands that
Sharp focus on Dividend
provide good
operational payouts
strategic fit and
efficiencies to
synergies
Continue to help reach
outperform profit goals
category and
sector growth
THANK YOU

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DABUR INDIA LIMITED

 KEY FINANCIALS & UPDATES

•Buoyancy in FMCG Sector

Source: AC Nielsen Retail Audit report Dec 05

 KEY FINANCIALS & UPDATES

Largest Indian Personal &

Professionally Managed A Trusted Indian Strong Internal Competencies

CAGR of 20% in revenues

Outperformed the industry in 2004-05, 2003-04 and 2002-03

Dabur vs Industry: Sales Growth

•Source : Published Results of FMCG companies

A commitment of the Burmans to make Dabur a professionally

Board of Directors restructured to provide more room for

Dabur Rated at “GVC Level 2” by Crisil on Corporate

Best practices strengthened in Board processes, Shareholder

2005 Awarded by ICSI for Excellence in Corporate Governance

Comprehensive Innovative Processes Distribution reach of

 KEY FINANCIALS & UPDATES

CONSUMER CARE Range of personal care and

CONSUMER HEALTH Range of Ayurvedic medicines

INTERNATIONAL Dabur’s international business 9%

Dabur Foods Ltd, a 100% subsidiary

Hommade cooking pastes & Lemoneez

This business having been recently

For nine months ending Dec 05(including Balsara)

Baby &Skin Car e

Key Highlights Competitive Profile

Hair Oils Category

Hair oil market estimated at Rs.15.5 Marico

Two large domestic players – Dabur &

Key Highlights Competitive Profile

Market size estimated at Rs. 10.5 bn Shampoo Category

Dabur’s Key Brands

Key Highlights Competitive Profile

Oral care market estimated at Rs.23bn

Dabur’s key brands

Key Highlights Competitive Profile

Chyawanprash category size estimated at Zandu

Dabur pioneered the Chyawanprash

Dabur Honey : largest national player in

Key Highlights Competitive Profile

Digestives market including antacids is

Dabur defined the Herbal Digestives

Key Highlights Competitive Profile

offering, is one of the fastest growing in this Olemessa

Skincare identified as one of thrust areas going

Total market size estimated at about

Major OTC Cough Life Style Women

Market Dynamics Competitive Profile

Focus on innovation and strong

Dabur’s Key Brands

DABUR IBD – FOCUS MARKETS

South Asian Arabia Africa North America

Pakistan, Nepal & GCC Countries

DABUR IBD – POTENTIAL MARKETS

South Asia Arabia CIS

Russia & Other

 KEY FINANCIALS & UPDATES

Deeper penetration and

Vatika Dabur Hajmola Anmol Real

VFM range Fruit

 Hair Oils  Oral Care  Digestive  Hair Care  Natural

 KEY FINANCIALS & UPDATES

KEY FINANCIALS & UPDATES

KEY FINANCIALS & UPDATES

KEY FINANCIALS & UPDATES

KEY FINANCIALS & UPDATES

Hair Oils Oral Care Digestive Hair Care Natural

KEY FINANCIALS & UPDATES