Dabur presentation

Dabur Profile
Mergers and Acquisitions

1. Dabur India Ltd. Bhargav Dudagadapa Gautam Siddharth Vamsikrishna Pedada Ajinkya Patil Eshant Gaur Mohil Poojara 1

2. Dabur - A Company Profile 2

3. Established in 1884, More than 125 years of Trust and Excellence 3 rd largest FMCG company in India. Strong Brand Equity Vatika and Real are Superbrands Dabur is a household Brand Hajmola , Real and Dabur Honey amongst Most Admired Brands in India Wide distribution network covering 3.4 Million Retailers across the country. 17 World class manufacturing plants Strong Overseas Presence. 3

4. Vision and Core Values 4

5. Dabur - History 5

6. Global Footprint 6

7. f mcg sector In India 7

8. FMCG Industry and its Vibrant growth Rural Sector-Market of the Future FMCG sector is expected to grow at 12-17% upto 2020 and would touch a market value of 4000-6000 billion Rupees- Booz and Company 8

9. Potential in fmcg 9

10. Low penetration levels offers growth opportunity across various Consumption Categories Rural Penetration is low but catching up with the urban levels. 10

11. Market leaders- FMCG sector Source:: Annual Report Dabur 2011-13 11

12. Dabur in fmcg sector Source: Investor Relations report Dabur-August 2012 12

13. Financials of Dabur 13

14. Source: Investor relations Report—Dabur August 2012 Financials in brief 14

15. Sales Growth was a combination of volume growth, price increase and marginal transaction gains Material Costs eased with material costs at 50% of sales in Q1FY13 Vs 52.3% Q1FY12 Source:Annual Report dabur -2012 15

16. Source:Annual Report dabur -2012 Current Market Capitalisation of Dabur (as on 25 th September) ::21699 Crores Share Price: 124.65 16

17. Business Structure Source: Annual Report 2011-12 17

18. Consumer care-Overview Source::Industry Relations Report Dabur August 2012 18

19. Consumer Care Categories 19

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23. OTC and Ethicals Repository of Ayurveda Range of over 260 products Strong Distribution Network Focus on growing OTC Portfolio Inorganic growth as a way forward 23

24. Food Business 24

25. Market Share Health Supplements Food Products Digestive Products Oral Care Market growth Hair Care Low High High Low Skin Care Home Care 25

26. DABUR’s Mergers and Acquisitions 26

27. International Business Focus Markets GCC, Egypt, Turkey, Bangladesh, Nepal, US High level of localization of manufacturing and sales and Marketing Sustained Investment in brand building and Marketing 27

28. Acquisition of Hobi group 28

29. About the company 29

30. Product Portfolio 30

31. Company Structure 31

32. Transaction Dabur International to acquire 100% stake in three companies in the group : Hobi Kozmetik Zeki Plastik Ra Pazarlama First Overseas acquisition by Dabur Total Consideration = USD 69 million (about Rs 324 crore ) 32

33. Acquisition Rationale 33

34. Acquisition of namaste labs, USa 34

35. Namaste laboratories Founded in 1996 M arkets a portfolio of products under the brand ‘Organic root stimulator’ brands P resent in the US, and in several other countries in Africa, Middle East, Europe and Caribbean Region of North America Revenue of $93 million for the calendar year 2010 with EBITDA of about $12 million 35

36. transaction Deal value - $100 million (about Rs451 crore ) all-cash deal Dermoviva Skin Essentials – wholly owned subsidiary of Dabur completed the acquisition 100% stake in Namaste Laboratories LLC and its three subsidiary companies — Hair Rejuvenation & Revitalisation Nigeria Limited, Healing Hair Laboratories International, LLC and Urban Laboratories International, LLC along with its South African arm 2 nd overseas acquisition by DIL 36

37. rationale W ill serve as a gateway to the US market for Dabur’s portfolio of consumer products Enhances profitability Increases stakeholders value Adds to Dabur's already strong presence in Africa Dabur's entry into the fast-growing USD 1.5-billion ethnic hair care products market in the US, Europe and Africa 37

38. Acquisition of Fem Care Pharma Ltd 38

39. FPCL Fem Care Pharma Limited was promoted in 1982 Listed on Bombay Stock Exchange since 1994 The company markets bleach, liquid soaps and hair removing creams under the ‘Fem’ brand Distribution reach covering 1,25,000 retail outlets; also covers 25,000 parlours directly Highly profitable company with gross margins of over 60% 39

40. Deal structure DIL has signed an agreement to acquire 72.15% stake from the existing promoters. ™ The transaction values FCPL at an equity value of Rs 282.4 crores. ™ Dabur to make an open offer to acquire further 20% of the FCPL’s equity share capital. ™Specialty chemicals division and some other investments will be bought over by promoters at book value or market value whichever is higher . ™Acquisition to be funded through internal accruals of Dabur India Ltd . 40

41. rationale Revenue Synergies Brand provides access to DIL into fast expanding skin care market at mass price points Higher reach/penetration for FCPL portfolio through DIL’s distribution network Potential for extending FEM brand into other related skin care categories. Potential in International markets: FEM & Jaquline brands have presence in GCC/Middle east markets which can be expanded. FCPL’s parlour outreach to be leveraged for promoting Dabur’s personal care portfolio 41

42. rationale Cost Synergies Combined business to unlock synergies : Sales & Distribution, Marketing, Supply Chain, Sourcing & Manufacturing FCPL’s Baddi unit synergistic with DIL’s own skin care plans Greater efficiencies possible in trade and distribution Combined Adpro spends can be leveraged to reduce media costs FCPL’s R&D knowledge in skin care to supplement domain knowledge for DIL 42

43. Dabur acquires ajanta pharma capsule brand 43

44. Ajanta 30 plus Launched in 1990 as an herbal energizer capsule K ey brand for Ajanta Pharmaceuticals 30-Plus is one of the oldest and strongest health care energizer brands in the country The financial terms and conditions of the deal were not disclosed 44

45. SWOT ANALYSIS Strengths Competitive pricing Ayurvedic Repsitory . Strong Brand Image Strong Financially Strong Research and Innovation base. IT base Weakness No direct Outlets. Seasonal Demands Lack of awareness about Ayurvedic Products 45

46. Opportunities Growing Awareness of Ayurveda Improper and Unhealthy Food habits Growing Rural Markets Growing Middle Class Women and Beauty Sector Threats Allopathic Players; Advertising and Distribution Growing Substitutes. Growing Health Tourism of Kerala. 46

47. FUTURE OF DABUR INDIA 47

48. Retail Store ‘New U’ –A retail store for complete makeover of women The brands under NewU includes Dabur’s own private label, NewU , range of affordably priced cosmetics such as nail paints, facial kits and hair accessory among others Rising beauty consciousness. The roughly Rs 7,000 crore organized and unorganized hair and beauty industry is growing at the CAGR of 35%. At this rate, it has the potential to become a Rs-30 ,000 crore business by 2015 Expansion of presence in Retail sector. FDI in Muli -Retail Online Marketing. 48

49. Criteria of M&A Foreign Company/Indian Company Plans to expand/Already established retail player in Beauty Care 49

50. Growth in African market Africa Epi -Center of our growt Africa’s real compound GDP growth, about 5 percent annually between 2002 and 2009 Consumer Spending to be boosted by 35% till 2015. New plants in South Africa, Kenya and Nigeria coming up. Products acquired through Namaste Lab and Hoby have to be leveraged in these markets Manufacturing Plants to be set up in Egypt and Nigeria Inorganic growth 50

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52. Rural Plans FMCG Rural rush Low Penetration levels High Demand Revamped Distribution System in 2011. Need Sound logistics systems to supplement Criteria Strong localized logistics system. 52

53. Expansion of Health Suppliments Expansion of OTC & Ethicals Expansion of Ayurvedic Products 53

54. Thank You 54