Presented By :-

Saikrishna Gourayya Jakkan.

Roll no:- 2224.
 AGENDA :-
 Dabur – Overview

 Business Structure

 India Business

 International Business

 The Way Forward

 Our Value Creators

 Dabur is the largest Science– Based Ayurveda Company
Overview Awards
 Established in 1884 – 135 years of trust and
 Dabur wins ICSI National Award for Excellence in
excellence ..
Corporate Governance 2019
 One of the world’s largest in Ayurveda and natural
healthcare  Dabur ranked in the India’s Top 50 Valuable
 Having one of the largest distribution network in Companies by Business Today
India, covering ~6.7 mn outlets  Dabur Red Paste rated as 2nd most trusted brand by
 20 world class manufacturing facilities catering to the consumers in the Oral Care category by the Brand
needs of diverse markets Equity India’s Most Trust Brands 2017

 Strong overseas presence with ~28% contribution to

consolidated sales  Dabur moves up 4 Places in Fortune India 500
List; ranked 163 in the list for 2015

Market
cap: US$
11bn  Dabur ranked 25 in the list of Best Companies for
CSR in India, according to the Economic Times
 Manufacturing Facilities Located Across the Globe
 12 manufacturing locations in  8 international manufacturing locations
India..
UAE
Baddi
Jammu

Sahibabad
Egypt
`
Alwar
Pantnagar Tezpur
Newai Nigeria

Katni
South
Africa

Narendrapur Turkey
Silvasa

Nasik Pithampur
Shrilanka

Bangladesh

Nepal
 One of the largest Distribution Network in
India..
Urban Rural

Factory Factory

C&F C&F

GT Stockist MT Stockist Insti Stockist Super Stockist

Wholesaler Sub Stockist

Retailer Retailer Retailer

Consumer Consumer Consumer Consumer

 Strong Financial Profile
CAGR : • Revenue has become ~3x over
11.9%
the last 10 years
70.9 78.3 78.7 77.0 77.5
Revenue from 53.1
61.7 • Last 3 years’ revenue looks optically
Operations 34.0
41.0
static due to change in accounting
28.1
standards, demonetization and
implementation of GST
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Operating Profit OperatingMargins (%)

20.9%
18.9% 19.5% 19.3% 19.6%
16.9% 16.8% 16.0% 16.6% 16.7%
15.2 15.1 16.2 Steady increase in operating
Operating 11.8 13.1 margin, touching 20.9% in FY18
Profit 8.9 9.9
6.4 8.0
4.7

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Profit After Tax (PAT) PAT Margins(%)

16.6% 17.5%
15.9%
13.8% 14.7% 13.9%
• PAT has grown at a CAGR of 15%
13.2% 13.5%
12.1% 12.4%
12.5 12.8 13.5 over the last 10 years
PAT 9.3 10.5
6.4 7.6 • PAT margin went up to 17.5%
5.0 5.7
3.9
in FY18

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Note: All figures are in INR bn FY09 to FY15 is basis IGAAP, FY16 and FY17 are as per IndAS and FY18 is as per IndAS and takes into account GST
 FY – 19 Consolidated Balance Sheet
GST adjusted growth of 13.2%

• Domestic business revenue grew by 15.5% led by volume growth of 14.1%

6,405
• Growth in International Business was impacted by continued under performance of
MENA markets andadverse currency movement

Revenue 5,715

9M FY18 9M FY19

13.3% 1,282
• Media spends were 8.0% of revenue

1,132 Other expenditure was at 9.0% vs 9.7% in 9M FY18 on account of cost

•
Operating savings and efficiencies
Profit Consolidated Operating Margin at 20.0% as compared to
19.8% in 9M FY18
•

9M FY18 9M FY19
 Business Structure :-

Domestic International
72 % 28 %

Domestic Other Organic Acquired

FMCG 12 % 67 % 33 %
78 %
…and Market leadership in most categories :-

#1 #1 #1
#1 #1 #3 #1 #2
#2 #2 #2

Honey Chyawanprash Baby Glucose Hair oil Oral Care Skin Toilet Air mosquito juices
Massage Oil Care Cleaners Freshners Repellant
Bleaches creams

Home and personal care Food

Health Care
 Urban Strategy Enabling Technology
Leveraging potential through Channel based Using technology to track and improve performance
approach
and automate processes

Rural Strategy
Split the front line teams into two to increase reach New Avenues of Growth
and frequency – Showing significant positive gains Leveraging the alternate channels of MT and E-comm
to grow at a rapid pace

Portfolio Focus
Leveraging split teams for focused portfolio building
1,090,408

1,022,974

916,869 910,095 912,332

Under Project Buniyaad , direct reach has touched ~1.1mn outlets and total reach (direct +
indirect) increased to ~6.7 mn oulets
 Channel Changes
Evolution of Channel Saliency

32.9 Superstockist, MT and E-comm gaining

31.5 31.5
saliency; Wholesale and Enterprise
continues to shrink

24.5
23.5 23.1
22.6 23.0
21.7

13.8
12.5
11.6
10.1
8.7

6.2

0.6 0.8 1.4

GT Retail Wholesale Superstockist MT E-comm Enterprise*

Y17 FY18 9M FY19

  Recent products launched

Oxy Pro Clear Facial Kit Dabur Red Gel Odonil Zipper Vatika Shampoo Anmol Jasmine HO
with Satt Poshan

Odomos Fabric Roll On Vatika Enriched Coconut Hair Oil Hajmola Chat Cola Real Mocktails Honey Squeezy –
225 gms.
 International Business – Strategic Levers :-

 Capitalize on global Back to Nature trend

Innovation  Drive penetration through value offerings

 Distributor restructuring
 Real-time analytics
GTM  JBP (Joint Business Planning) with Key Accounts

 Saving initiatives
Cost Management  Manufacturing efficiencies
 The way of Forward
Capability Driving Innovation
Improvement 5 1 and Renovation for
Market Leadership

4 2 Regionalization
Cost Optimisation
and Improving
Service Levels

Channel Focus
Strategy
 Driving Innovation and Renovation for Market Leadership

 Focus on Core and Scalable Brands

Enhanced Investments in Core Brands

Accelerated Growth from Scalable Brands

  Creating Competitive
Leverage

Superior Claims Superior Formulation Superior Packaging

Superiority over
mineral oils

Superiority over
other Almond HO

2x stronger hair vs
Other Amla HO
  Driving NPDs
The Way Ahead

9M FY19

Strengthening
our
Ayurvedic/
Natural
Offerings

Products
for
Gen Y and Z

Premiumization
  Media Strategy for Driving Brand
Preference
Consolidated Buys with Impact
Fragmented Brand Buys
Value Ads
Key Shift
in
Approach Impact Lead Core
Prime Time Focus
CPRP Focus

Network Core Prime High Brand

Deals Time Focus on Saliency Integrations

Reduction in Focus
Long Tail / on Sponsorships
Optimising Top and
Programs Impact
Channel Mix
  Regionalization :-
12 geographical clusters
+
3 channel clusters

RISE
Regional Insights
And
Pilot started in North East
Speed of Execution
-Growth rate of 30%+

RI : Regional Insights SE : Speed of Execution

(Long Term Strategic) (Quick Wins, Low Investment)

• Capture Consumer, Packaging and Media Insights  Trade interventions

• Use Analytics for Specific meaningful actions  Activations and visibility drives

• Dive into new adjacent categories  Distribution initiatives

• Regions to provide new growth opportunities  Consumer promotions

  Channel Focus Strategy :-
Rural Focus E-commerce/ MT Focus

Range Expansion • E-commerce and MT saliency going up

– Strong growth across platforms

1. Increase lines sold in • Backed by media activation, visibility and
rural consumer promotions

1. Conversion of bigger
substockist to direct

Drive Sell Out

1.Activations involving RSP

2.Involvement of
Substockist
3.Activation and sell out at
Wholesale
  Capability Improvement :-

Matrix Organisation  Strengthening the Team

E-Comm Team
Sales
DRDC
Parlor Channel Head

Marketing
Marketing Services
Healthcare Head

Operations
Trade Marketing OTC Head

Ayurveda Head

Shared Goals across Functions

Digital Head
  The next Growth wave :-

Build bigger brands

More than 15 brands in the range of INR >0.1 to 1 bn which can grow to INR 1bn+

Continued Innovation and Renovation for Younger Consumers

NPD pipeline primed to deliver new products in key categories – 4-5 new products every year

Driving distribution expansion

Direct reach of ~1.2 mn, increasing the no. of SKUs, rural potential, IT enablement, data analytics and e-
commerce

Consumer Health
Strong core competence, low competitive intensity, strong profitability, low penetration

Geographical expansion
Expand into overseas focus markets where our brands are relevant – MENA, Africa, SAARC
  Intellectual Capital :-

126 scientists
are part of the strong in-house research wing

In FY18,
R&D team developed 16 new products
for India and International markets

11 Patent Applications

5 Research Papers Published

3 Patents where final specifications were filed

 Human Capital :-
 Natural Capital :-

Dabur is a Product Carbon Footprint

(PCF) Certified company from TUV
NORD for three products
Dabur Chyawanprash
Dabur Honey
Réal Juices