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

A Trust of 125 Years

Dabur today:Largest Indian Personal & Healthcare Company

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

A Trust of 125 Years

Journey so far
1884 The birth of Dabur
The Founder : Dr.S.K.Burman

1972 The company shifts base to Delhi from Kolkatta 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

A Trust of 125 Years

Strong Financials
Sales
Rs Mn

KEY FINANCIALS : 2008-09

28341

Market Cap Cash Flow

$ 2.3 Bn Rs.3.6 Bn

30000 25000 20000 15000 10000 5000 0 FY04

Rs Mn
12356 14170

CAGR-18%
20803 17565

23963

EBIDTA Margin 18.3% PAT/Sales RONW 13.8% 48.4%

FY05

FY06

FY07

FY08

FY09

Net Income
3913

4500 4000 3500 3000 2500 2000 1500 1000 500 0 FY04 FY05 FY06 FY07 FY08
1065 1558 2142

22 20 18 16 14 12 10
13.3

EBITDA Margin
18.1 17.1 15.3 18.5 18.3

CAGR-30%
2817

3329

FY09

FY04

FY05

FY06

FY07

FY08

FY09

A Trust of 125 Years

FY2008-09 : Highest organic growth in the decade

Balsara acquisition added 10% to topline in FY06

3000 2500 2000 1500 1000 500 0 -3.8% 13.8% 12.0%

18.3% 24.0% 18.3% 9.2% 7.0% 14.7% 15.2%

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

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

6 A Trust of 125 Years

FY09

Manufacturing Locations-India
First Ayurvedic products company to receive ISO 9002 certification

Sahibabbad (UP)

Jammu (J&K) Baddi (HP) Newai (Raj)

One of our largest manufacturing facilities at Baddi, HP

Silvassa

Uttaranchal Silliguri (WB) Katni, (MP)

Certificate of Good Manufacturing Practices to manufacture Ayurveda Drugs

for food facilities at Nepal and Rajasthan

HACCP Certificate

Manufacturing Facilities

Dabur Plant at Rudrapur, Uttaranchal A Trust of 125 Years

Manufacturing Locations-International
Birganj, Nepal

Daburs new plant at Ras Al Kheima

Nepal Dubai Egypt RAK Bangladesh

Nigeria

Key markets Manufacturing Facilities

A Trust of 125 Years

Research & Development Strengths

Team of 50 Scientists including Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue Culture specialists, etc

Agronomy Initiatives
Protecting endangered herbs Contract cultivation of herbs Technical assistance to Farmers Green House at Nepal

Strong New Product Development

GREENHOUSE AT DABUR NEPAL DABUR RESEARCH FACILITIES

Ayurvedic Personal Foods Home

Medicines

Care

Care Supplements
A Trust of 125 Years

Health

Distribution Network : Route to Market Factory D.C

Stockist Stockist Wholesalers Wholesalers

Superstockist Superstockist Institutions Institutions Modern Modern Trade Trade

Substockist Substockist 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)

FMCG industry size pegged at US$ 18 bn. Personal care & Food products dominate the sector Home,Hair & Skin care have low penetration & huge potential Steady growth in most categories
Rural growth rates inching towards Urban
20% 15% 10% 5% 0% -5% -10% CY03 -8% 3% -1% CY04 9% 10% 16% 12% 12% 10% 15% 12%
Baby Care Household 4% 2% OTC Products 4% Hair Care 8% Others 5%

47 49

OTC

Non Food

Food

Source : AC Nielsen annual for CY07

Category wise share of the sector

Personal Care 22%

1% CY05
Urban

CY06
Rural

CY07

CY08

Fabric Care 12% Food Products 43%

Rural India contributes 33% of the overall FMCG sector.

Source: AC Nielsen Source : AC Nielsen

12

A Trust of 125 Years

Category Penetration
Category Name Hair Oil Health supplements* Packaged fruit Beverages Mosquito repellants Washing powders Washing cakes/ bars Utensil cleaners Shampoo Toilet Soap Tooth Paste Tooth Powder Fairness Creams Cold Creams Skin Cream Branded Baby Oil Category Size (Rs Mn) 22,631 1,681 12,000 47,027 28,269 NA 19,173 62,170 24,835 4,551 NA NA 24,551 NA All India % 94 8 16 Urban % 96 14 30 58 Rural % 93 5 10

Higher Overall Penetration

66,70

32 90 88 29 51 91 56 31 16 1 23 2

Increase Urban Penetration

20 89 86 16 46 89 45 33 14 1 19 1

Move Rural Penetration To Urban levels

93 91 59 62 96 79 26 20 3 30 2

Source : Industry Data, Indian Readership Survey 2008 Round 2

Low penetration levels : room for sustained growth

13 * The category size is representative of Glucose market

A Trust of 125 Years

Key players
USD Million

Company
Hindustan Unilever Ltd Tata Tea Nestle India Ltd*

Key Categories Soaps, Detergents, Personal Care, Foods Tea Food, Beverages, Infant nutrition Personal, Health & Homecare, Foods Biscuits Oral Care & Toiletries Hair care, Food, Skincare Consumer Health Care Chocolates, Confectionery, Nutrition Home Care Hair Care, Soaps Feminine Hygiene, personal care

Sales
4383 1011 915

Profit
536 115 119

Market Cap
13,417 697 4438

Dabur India Ltd

Britannia Industries Ltd Colgate Palmolive (I) Ltd Marico Ltd. Glaxo Smithkline Consumer* Cadbury India Ltd*** Reckitt Benckiser (India) Ltd**** Godrej Consumer Products Ltd Procter & Gamble**

590
706 374 478 309 270 168 290 157

82
38 61 38 38 25 21 36 35

2479
729 1734 1104 940 Unlisted Unlisted 1187 462

14

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

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
Personal care,Health care,Home Care & Foods

Consumer Health Division

Over the counter (OTC) & Ethical Ayurvedic portfolio

International Business Division

Health & Personal care in International markets

IBD 19% CHD 7%

Others 1%

CCD 73%

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A Trust of 125 Years

CCD Category performance

25.0% 20.0% 14% 15.0% 10.0% 5.0%
Digestives &

23%

14% 10%

11% 5%

12%

0.0%
Supplements Oral Care Hair Care Health

Baby Oils &

Home Care

Hair care the largest category continued its strong performance

throughout the year with 23% in FY09. Foods category bounced back with 23% growth in Q4FY09 and thus growing by 14% for the year.
17 A Trust of 125 Years

Skin Care

Candies

Foods

Consumer Care Division Overview

2003-2004
FPD HCPD

2006-2007
Balsara

2007-2008
Foods*

2008-2009
FEM**

CCD

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

Health Suppl 19%

Oral Care 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 companys growth ambitions are not limited by it. A robust brand architecture ensures that the core values remain intact BRAND ARCHITECTURE Herbal space
Dabur Herbal Healthcare Vatika Premium Personal Care Rs2 bn

Natural / Non-herbal space

New brand Ayurvedic Skin care NA Real Fruit Beverages Rs2.2 bn Balsara Home Care FEM Fairness Skin solutions Rs 1 bn

Hajmola Tasty Digestives Rs1.1bn

Rs13.2 bn 19

Rs 1 bn

Brand size based on sales in India

A Trust of 125 Years

Hair Oils
Dabur 17%

Market Size

Rs 33 Bn

Dabur brands Rs 5.6 bn

Others 41%

Dey's lab 3%

Bajaj 6%

Marico 33%

Enriched Coconut oil Perfumed Hair oil Coconut Hair Oil 20

Mustard Amla hair Oil

Test Launch: Amla Flower Magic A Trust of 125 Years

Shampoos

Market Size

Rs 20 Bn
L'Oreal 4%

P&G 26%

Dabur 7%

CavinKare 12%

Dabur brands Rs 1.3 bn

HUL 51%

Range of Vatika shampoos New launch-Vatika New launch-Vatika balck shine Conditioners shampoo 21

Re-launch of Vatika Dandruff Control Shampoo with 3 variants A Trust of 125 Years

Oral care
Others 14% Anchor 2% Dabur 15%

Market Size

Rs 31 Bn

Dabur brands Rs 4.7 bn

Unilever 21%

Colgate 48%

* Daburs share of oral care is 13% in value terms and 15% in volume terms

Toothpaste with extract of Babool tree 22

Premium Herbal Toothpaste

Ayurvedic herbal

toothpaste & powder A Trust of 125 Years

Health supplements
Chyawanprash Market
Others 9% Emami 9% Zandu 7%

Market Size

Rs 6 Bn

Dabur brands Rs 3.5 bn

Above Market data for Health Supplement

B aidyanath 1 2%

Dabur 62.4%

Glucose

Honey

Chyawanprash & its variants

Glucose:New Brand ambassador-Cricket player Zaheer Khan 23

Dabur Honey : New campaign with AB and MS Dhoni A Trust of 125 Years

Digestives
Others 22% Dabur 32% Pfizer 13% Glaxo 14% Knoll 19%

Market Size

Rs 5 Bn

Dabur brands Rs 1.5 bn

Digestive tablets 24

Mint based remedy for digestion

Hajmola candies

A Trust of 125 Years

Home Care
Market Size Rs 20 Bn
Mosquito repellant Cream category
Others 9%

Air freshener category

Others 6%

Dabur brands Rs 1 bn
Above Market data for Entire Home care Category

Dabur 91%

Dabur 94%

Odonil Room fresheners 25

New Range of Surface cleaners

Sanifresh Toilet Cleaners A Trust of 125 Years

Foods
Market Size Rs 5 Bn
2% 8% 6%

Dabur brands Rs 2.5 bn

36% Dabur Foods Tropicana Godrej Xs

47%

Fresh Gold

Others

Consumer awareness though campaigns

26

Test Launching Burrst:New Drinks brand in 1st week of May

Range of Real Activ Juice (100% Juice)

A Trust of 125 Years

Consumer Health Division

CHD Portfolio

OTC (57%) Branded Products

ETHICAL (43%)

Generics

Tonic

Classicals

Branded Ethicals

Range of over 260 products Focusing on multiple therapeutic areas. Distribution coverage of 100,000 chemists, ~12000 vaidyas & 12000 Ayurvedic pharmacies Partnership with Institutions such as Dhanwantry Ayurvedic Hospital for clinical trials Thrust on OTC portfolio to leverage the huge self medication market

OTC portfolio: Branded portfolio-Dabur Honitus-Syrup & Lozenges for Cough/Cold,Badam Tail, Dabur active antacid, Dabur Active Blood Purifier. GenericsAshokarishta & Dashmularishta (Women's health), Lavan Bhaskar Churna

27

A Trust of 125 Years

International Business
Global Aspirations
Started as an Exporter
6000

IBD over the years

CAGR +25%
5250 5000

1980s

Focus on Order fulfillment through India Mfg. Set up a franchisee at Dubai in 1989

4000

(Rs.Mn)
2917 2258 1807 1282

3760

3000

Early 90s

Demand generation led to setting up of mfg in Dubai & Egypt Renamed franchisee as Dabur International Ltd

2000

1000 241 0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

1995-2000

Local operations further strengthened Set up new mfg facilities in Nigeria,RAK & Bangladesh Building scale-19% of overall Dabur Sales (FY09) High Levels of Localization Global Supply chain

Target markets divided into 3 categories :

Focus, Potential and Opportunistic Markets

Leveraging naturals wave to market Dabur

products in GCC & Africa

Extending Dabur equity in neighboring

markets

Now
28

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 Natural Deeper penetration and expansion into new markets South India Global markets MARKETS Herbal Ayurveda North East&West India South India Current categories New categories Herbal platform in the personal care & health care products Leveraging ayurveda expertise

CATEGORIES Entering new categories Skincare Home care OTC Healthcare

Global markets

30

A Trust of 125 Years

Expansion strategy
Entering new Categories
Skin Care : New Ayurvedic skin care range under a new brand to be launched
OTC Healthcare : Leveraging Ayurveda knowledge for a range of OTC portfolio Fruit Drinks: Entry into the fast growing fruit drinks category leveraging the Real franchise Home care : expansion across air fresheners, insect repellants & hard surface cleaners

Targeting Inorganic opportunities

Market Entry : Acquisitions critical for entry into new markets and building scale in existing categories Synergies : Should be synergistic and make a good strategic fit Geographies : domestic and global opportunities

Strong innovation programme

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

Expanding across geographies

Overseas markets : 19% of overall company;target to sustain higher growth rates 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 2800

2834

Rs. Crore

2700 2600

Sales increased by 18.3% to touch Rs.2834 crore during FY09. Consolidated PAT grew at 17.5% in FY09 touching Rs.391.2 crore.

18.3%

2500 2400 2300 2200 2100 FY08 FY09

2396

PAT : FY 2008-09 vs 2007-08

400 380 391

17.5%

360 340 320 300 FY08 FY09 333

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A Trust of 125 Years

PAT performance: FY2008-09 (Excluding Retail)

420

408.7
Rs. Crore

PAT growth excluding Retail at 19.7% for FY09. The newly set up Retail Venture incurred loss of Rs 17.9 crore during FY09

400 380

19.7%

360 340 320 300

341.42

FY08

FY09

34

A Trust of 125 Years

DIL Consolidated financials- P&L Q1FY10

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

35

A Trust of 125 Years

DIL Consolidated financials- Balance Sheet Q1FY10 (In Rs cr)

DIL (Consolidated) Balance Sheet Sources Of Funds Shareholders' Fund: Share Capital Reserves & Surplus Minority Interest Loan Funds: Secured Loans Unsecured Loans Deffered Tax Liability TOTAL Application of funds: Fixed Assets: Gross Block less: Depreciation Net block Investments Current Assets,Loans & Advances Inventories Sundry Debtors Cash & Bank balances Loans & Advances Current Liabilities Provisions Net Current Assets Miscellaneous Expenditure Deffered Tax Assets TOTAL 403 211 183 302 1100 607 354 961 140 8 25 1170 374 200 69 243 886 486 284 769 117 13 24 879 1159 319 841 156 771 274 496 229 109 109 218 36 1170 118 35 154 28 879 86.6 823 910 7 86.5 606 692 5 YTD June 09 YTD June 08

36

A Trust of 125 Years

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

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A Trust of 125 Years