UBS India Conference Mumbai, India - Dabur India Limited

November, 2009
UBS India Conference
Mumbai, India

Dabur : Largest Indian Personal & Healthcare
Company
Herbal & Natural Portfolio
Eight Billion Rupee Brands
4500 Distributors in India
Retail Reach 2,800,000
5 Umbrella Brands
350+ products
4200 employees
15 Manufacturing Locations
20% contribution from
overseas markets
Listed in Forbes’ 200
Best Under-A-Billion
Companies List
Ranked 60th Most Valuable
Indian Company in 2009 in
Business Today's BT-500 List
Ranked 28th in ET-
Brand Equity Most
Trusted Brands 2009
list.
2

Key financials over the years
Rs Mn
30000
25000
20000
15000
10000
5000
0
SALES
CAGR-18%
20803
17565
14170
12356
28341
23963
FY04 FY05 FY06 FY07 FY08 FY09
KEY FINANCIALS : H12009-10
Market Cap $ 2.9 Bn
Cash Flow Rs.2.6 Bn
EBIDTA Margin 19.5%
PAT/Sales 14.4%
RONW 48.4%
Rs Mn
4500
4000
3500
3000
2500
2000
1500
1000
500
1065
NET PROFIT
CAGR-30%
2817
2142
1558
3329
3913
22
20
18
16
14
12
10
EBITDA MARGIN
18.1 18.5 18.3
17.1
15.3
13.3
0
FY04 FY05 FY06 FY07 FY08 FY09
FY04 FY05 FY06 FY07 FY08 FY09
3

Manufacturing Locations-India
Jammu (J&K)
New units being set up at
Baddi and Uttaranchal in
2009-10 for capacity
expansion
Baddi (HP)
Newai (Raj)
Sahibabad (UP)
One of our largest
manufacturing
facilities at Baddi,
HP
Silvassa
Katni, (MP)
Uttaranchal
Sillguri (WB)
Manufacturing Facilities
Multi line integrated facility
at Rudrapur, Uttaranchal
4

Manufacturing Locations-International
Birganj, Nepal
Nepal
Nigeria
Egypt
Dubai
RAK
Bangladesh
Key markets
Manufacturing Facilities
5

Research & Development
New Product
Development
50 Scientists’ team including Ayurvedic
doctors, Pharmacists, Agronomists,
Botanists, Tissue Culture specialists, etc
Collaboration with
government
agencies
Ayuredic
Medicines
Agronomy Initiatives
Personal Care
Foods
Home Care
Contract
cultivation of
herbs
Protecting
endangered
herbs
Technical
assistance to
Farmers
Green House at
Nepal
Environmental
Initiatives
Dabur Introduced more than 20 new products/variants during FY09
Effluent
Management
Alternate sources
of energy
Carbon footprint
mapping
Greenhouse at Nepal
Experts at our R&D facility
6

Distribution Network : Route to Market
Factory
D.C
Stockist
Superstockist
Wholesalers
Semi Wholesalers
Substockist
Institutions
Modern
Trade
Retail Trade
Retail Trade
Shoppers & Consumers
Dabur reaches a total of 2.8 Mn retail outlets; Direct Reach of 0.8 Mn outlets
7

Dabur-Strong presence in FMCG categories
Category Position Market Share Key Brands
Hair Care
Oral Care
Skin Care
OTC Health
3 12%
3 13%
3 7%
1 10%
Dabur Amla hair Oil,
Vatika hair oil & Vatika
Shampoos
Red toothpaste,
Babool,Meswak, Red
toothpowder
Dabur Gulabari, Fem,
Dabur Uveda
Dabur Chyawanprash,
Asavs, Honitus & Other
OTC products
Fruit Juices 1 50%
Real Fruit Juices, Real
Activ
Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; OTC health
includes Over The Counter categories of Health Supplements, Digestives, Ayurvedic Healthcare etc;
Skin care includes moisturizers, face cleaning, lightening, anti ageing & other skin care products.
8

Growth Momentum Continues
25%
20%
15%
12.3%
14.2%
13.6%
15.5%
17.8%
19.4% 19.9%
22.1% 22.4%
10%
5%
0%
Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10
Above growths are value growth for the period
Q2FY10 registered fastest growth in last 18 quarters
9

FMCG Sector : Current Scenario
Economic downturn did not impact FMCG; most
categories witnessing double digit growth.
Significant increase in agri commodity
realizations and investments in agriculture/rural
economy boosted rural growth.
No signs of any significant consumer down
trading so far.
Modern Trade showing signs of revival with
increased offtakes .
Growth to be driven by penetration, innovation
and value proposition.
100
95
90
85
80
75
FMCG space showing steady growth
30
26
19 19 21 20 20 19 17 16 16 20
17
14
10
'Jul-08
'Aug-08
'Sep-08
'Oct-08
'Nov-08
'Dec-08
'Jan-09
'Feb-09
'Mar-09
'Apr-09
'May-09
'Jun-09
FMCG Value Rs.Bn
FMCG Value Grow th % YA
All India U+R Value Estimates for 80+ FMCG categories as tracked
by Nielsen India
0
Rs Bn MAT,09 MAT, 08
FMCG Size 1104.1 927.8
YoY% 19%
Source: AC Neilsen
MAT is immediately preceding 12 months to June.
10

Rural growth drivers
Multitude of structural factors driving rural
demand - incomes, consumptions & govt led
investments.
25.0%
20.0%
Category growth:Urban Vs Rural
20.2%
19.4%
No of rural households with annual income of
more than US$ 2000 have touched 56 mn.
By 2014-15, 150 million people in rural India
will have consumption levels similar to the
‘better-off’ urban consumer of today*.
15.0%
10.0%
5.0%
0.0%
9.3%
13.3%
6.1%
8.0%
2.5%
8.7%
By 2014-15, industry and services will
together account for 38% of rural employment.
This growth will bring with it significant
changes in consumer preferences in rural India.*
Shampoo Hair Oils Toothpaste Chyawanprash
AC Neilsen Apr-June 2009
Urban Rural
Increase in Rural spend by Government
Government has allocated further Rs 400 bn
towards National Rural Employment Generation
Act (NREGA), which will help sustain/rev up
rural demand going forward.
20
15
10
US $ Bn
As a % of GDP, Rs
1.8%
1.6%
1.4%
1.2%
1.0%
0.8%
* Source : CERG report on Consumer India
5
0.6%
0.4%
0.2%
0
0.0%
2006 2007 2008 2009RE 2010BE
Source:Budget Estimates, Morgan Stanley Research
11

Deficient Rainfall-Impact minimal
RAINFALL AS % OF LONG TERM AVERAGE
110%
100%
90%
80%
70%
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Source:Indian Meteorogical Department
Rainfall at 15% below its long-term average for the season.
However Rural consumption steady with impact only in very severely impacted
areas.
Late rainfall towards the season end likely to improve the Rabi outlook.
Government support programs sustaining the consumption.
12

Penetration levels : Sufficient head room
Category Name Category Size (Rs Mn) All India % Urban %
Rural %
Hair Oil 22,631 94 96 93
Health supplements* 1,681 8 14 5
Packaged fruit Beverages 12,000 16 30 10
Mosquito repellants 66,70 32 58 20
Washing powders 47,027 90 93 89
Higher Overall Penetration
Washing cakes/ bars 28,269 88 91 86
Move
Utensil cleaners NA 29 59 16
Rural
Shampoo 19,173 51 Penetration 62 46
Toilet Soap
Tooth Paste
62,170
24,835
91
56
To Urban
levels
96
79
89
45
Tooth Powder 4,551 31 26 33
Fairness Creams NA 16 20 14
Cold Creams NA 1 3 1
Skin Cream 24,551 23 30 19
Branded Baby Oil NA 2 2 1
Increase Urban Penetration
Source : Industry Data, Indian Readership Survey 2008 Round 2
Low penetration levels : room for sustained growth
13

Key Players : FMCG
USD Million
Company Key Categories Sales Profit Market Cap
Hindustan Unilever Ltd Soaps, Detergents, Personal Care, Foods 4383 536 13,321
Tata Tea Tea 1011 115 1126
Nestle India Ltd* Food, Beverages, Infant nutrition 915 119 5197
Dabur India Ltd Personal, Health & Homecare, Foods 590 82 2836
Britannia Industries Ltd Biscuits 706 38 854
Colgate Palmolive (I) Ltd Oral Care & Toiletries 374 61 2044
Marico Ltd. Hair care, Food, Skincare 478 38 1104
Glaxo Smithkline Consumer* Consumer Health Care 309 38 1112
Cadbury India Ltd Chocolates, Confectionery, Nutrition 195 10 Unlisted
Reckitt Benckiser (India) Ltd*** Home Care 168 21 Unlisted
Godrej Consumer Products Ltd Hair Care, Soaps 290 36 1514
Procter & Gamble** Feminine Hygiene, personal care 157 35 462
Source- Published results for year ending 31.03.09; *Year ending 31.12.08; **Year ending 30.06.09 annualized; ***Year ending 31.12.04
14

Dabur’s Business Structure
Dabur operates through three focused Strategic Business Units:
Consumer Care Division:
FMCG portfolio four distinct businesses:
Personal Care, Health Care, Home Care and Foods.
Consumer Health Division:
Range of ethical and OTC products that
deliver the age-old benefits of Ayurveda in modern
ready-to-use formats.
International Business:
Caters to the health & personal care needs of
customers across different international markets
spanning Middle East, North & West Africa, EU and
US through its brands Dabur and Vatika.
70%
8%
20%
* Percentage based on H1FY10 Financials ; Femcare included in Consumer Care Division
15

Robust Brand Architecture
Rs Billion
Brand Architecture
Domestic
Overseas
Total Size
Dabur
Herbal Healthcare
15.3 1.7
17.0
Vatika
Herbal Personal Care
2.1
1.8
3.9
Hajmola
Tasty Digestives
1.3 0.1
1.4
Fem
Skin care range
1.0
*
1.0
Real
Fruit Beverages
2.5 0.5
3.0
Balsara
Home Care
1.2 0.1
1.3
16
*Brand size pertains to FY2008-09 sales in India and overseas; Fem had sales of about Rs.30 mn in overseas markets in FY09.

Consumer Care Division Overview
2003-2004 2006-2007 2007-2008
2008-2009
FPD HCPD Balsara Foods FEM
CCD
FPD:Family Products Division
HCPD: Health Care Products Division
*Foods division was a 100% subsidiary of DIL
Category wise share of CCD sales
6%
13%
44%
25,000
20,000
15,000
10,000
10,158
CCD Sales over the years
CAGR-15.2%
12,250
14,013
16,392
18,658
20620
Rs.Mn
37%
5,000
Health Care Personal Care Foods Home Care
-
FY04 FY05 FY06 FY07 FY08 FY09
17

Consumer care category performance
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
22%
23%
7%
5%
21%
11%
13% 15%
43%
34%
8%
10%
23%
14%
Hair Care
Oral Care
Health
Supplements
Digestives
Skin Care
Home Care
Foods
H1FY10
FY09
Hair care the largest category continuing to post strong growth
Growth picked up in oral care, health supplements, foods and skin care
Foods reported robust growth of 23% during the first half of FY10.
Skin care grew by 43% led by Gulabari brand and its extensions.
. 18

Consumer Care Categories
Hair Oils
Key Brands
36%
8%
16%
3%
6%
31%
Bajaj Dabur Dey's Medical Emami Marico Others
Value Share-ACN June, 09
Shampoos
Dabur Amla:Largest
brand in the
portfolio
Vatika : Value added
coconut oil
Anmol Hair Oil:
Value proposition
24.1%
7.8%
11.2%
7%
45.4%
3.3%
2.0%
Cavinkare Dabur Hindustan Unilever ITC L'oreal P&G Others
Value Share-ACN June, 09
Vatika range of shampoos
Dabur Total Protect Ayurvedic
Shampoo
19

Consumer Care Category
Oral Care
Key Brands
11.5%
3.3%
23.6%
48.7%
12.8%
Anchor Health Colgate Dabur Unilever Others
Value Share-ACN June, 09
Dabur Red:Toothpaste &
Toothpowder
Babool: Targeted @
economy segment
Meswak: Premium
therapeutic toothpaste
Health Supplements
6.3%
0.1%
1.1%
10.9%
13.2%
8.1%
60.3%
Baidyanath Dabur Emami Mayer India Ranbaxy Zandu Others
Value Share-ACN June, 09
Dabur
Chyawanprash:Largest
selling health supplement in
the country
Dabur
Glucose:2 nd
largest player
in the country
Dabur Honey: Largest branded
honey in the country; growing
category through replace sugar
strategy
20

Consumer Care Category
Foods
15.5%
3.7%
Key Brands
45%
36.4%
Dabur Pepsi Priya Gold Others
Value Share-ACN May, 09 ; Fruit Juice category
Skin care*
Real:Flagship beverages
brand
Real Active:Range of 100%
pure juice
Real Burrst: New fruit Drink
brand
3.2%
18.0%
6.4%
6.6%
58.9%
6.8%
Hindustan Lever Emami Dabur
Loreal Cavin Care Others
*Company estimates;Includes Fem skin care portfolio .
Gulabari range of rose based skin care products:
Moisturizer,Face freshener & Rose water.
Fem Skin care :
Acquired recently
21

Consumer Care Category
Digestives
Key Brands
38%
55%
7%
Hajmola Satmola Others
Value Share-ACN March,09
Home Care
Hajmoila: Flagship brand for branded Digestives
Hajmola tasty digestive
candy
5%
20%
31%
20%
Odonil Air wick Premium Ambipur
Value Share-ACN March,09 for Air freshener category
Odonil:Air freshner
range:Largest brand in
the portfolio
Odomos:Mosquito
repplant skin cream
Sanifresh:Toilet
cleaner
22

Key Initiatives:Aggressive product launches
Home & Personal Care:
Vatika Dandruff Control
Shampoo with 3 variants
Dabur Total Protect
Ayurvedic shampoo
Amla Flower Magic
Vatika Almond
Enriched hair oil
launch of Gulabari cold cream &
lotion
Odomos Naturals
Odonil Gel variants
launched
Dazzl Silver & Glass
Cleaners
23

Key Initiatives:Aggressive product launches
Health care & Fruit based beverages:
Re-launch of LDM and RTP
in new pack
New Honey packaging
Babool Mint Gel launched in
key markets
Entered MFD category with
Chyawan Junior; Revamped
the Chyawanprash
packaging
Launch of Lemon & Orange flavours
New Pudina
variant of
Hajmola
Test Launched Burrst : New Fruit
Drinks brand
New variants of Real:
Apple Nectar, Peach
& Black Currant
24

Uveda : New Skin Care Launch
The new Uveda range test
marketed in Delhi & Maharashtra.
Vidya Balan is the new brand
ambassador for Uveda
Good initial response to the brand
In shop promotions
Uveda placement in MT
Uveda ads in print media
25

Developing new price points
Low price point focus especially Rs 10/SKU
RS 20/50 gm SKU
26

Consumer Health Division
Dabur is the largest OTC Healthcare company in
India (Source: Nicholas Hall’s OTC Yearbook 2008)
CHD : The repository of Dabur’s Ayurvedic
Healthcare knowledge
Plans underway to build a comprehensive
strategy for a greater push in OTC Health space.
CHD structure
- OTC (57%) - ETHICAL (43%)
Generics
Tonic
Branded Products Classicals
Branded Ethicals
Focus on Dabur Ayurveda:Generating
equity for Ethical portfolio
Honi- Mint Extension of Honitus
Pudin Hara :Leading Digestives OTC
brand
First ever Ad spend on
Hingoli in Seven years
In shop activations
27

International Business Division
Dabur’s Overseas business now contributes 20% to
consolidated sales led by CAGR of 33% in last 5 years.
Focus markets :
GCC
Egypt
Nigeria
Bangladesh
Nepal
US
High level of localization of manufacturing and
sales and marketing
Leveraging the “Natural” preference among local
consumers to increase share in personal care
categories
Sustained Investments in brand building and
marketing
6000
5000
4000
3000
2000
1000
0
High Growth in IBD : CAGR of 33%
1281
1807
2258
*Category growth in MENA region
2917
3760
5250
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Rs. mn
New products
contributing significantly
to overseas sales
28

Fem Care Acquisition
Fem care acquisition completed on 25 th June, 2009.
First full quarter completed under Dabur
management
Core consumer business of Bleaches & Hair Removing
Creams deliver growth of 29.6% during Q2FY10.
Categories growing at 15-25% offering significant
growth potential
New Herbal Bleach
launched in May 2009
Launched new Fem Herbal Bleach & Complete Hair
Removal system. Herbal HRC in the offing.
Substantial brand building investments in core
brands.
Preity Zinta taken as brand ambassador for Fem.
Hair Removing System
launched
Fem OTC Sales
29

DIL Growth Strategy
Strengthening new Categories
• Skin Care : Ayurvedic skin care range under a new
brand to be launched
• OTC Healthcare : Leveraging Ayurveda knowledge
for a range of OTC herbal products
• 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
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
Targeting Inorganic opportunities
• Market Entry : Acquisitions critical for
building scale in existing categories & markets
• Synergies : Should be synergistic and make a
good strategic fit
• Geographies : domestic and global
opportunities
Expanding across geographies
• Overseas markets : 20% of overall
company;target to sustain higher growth rates
• South India : Increased contribution from 7% to
12%; Continued focus on the relevant portfolio to
grow contribution
30

Topline/Bottomline performance: FY2008-09
Sales : FY 2008-09 vs 2007-08
Sales increased by 18.3% to
touch Rs.28341 Mn during FY09.
18.3%
29000
28000
27000
26000
25000
24000
23000
22000
21000
23963
Consolidated PAT grew at 17.5%
in FY09 touching Rs.3912 Mns. PAT 17.5%
3800
3600
growth of 19% excluding retail. 3329
3400
FY08
28341
FY09
PAT: FY 2008-09 vs 2007-08
4000
3913
Rs. Mns
Rs. Mns
3200
3000
FY08
FY09
31

Topline/Bottomline performance-H1FY10
Dabur delivers robust first half sales
growth of 22.3% driven by strong volume
growth of 14.2%.
- CCD including Foods grows by 17.2%.
-CHD grows by 15.1%.
-IBD grows by 38.2%.
Categories leading the accelerated growth
were- Shampoos, Hair care, Health
Supplements, Skin care & Foods.
PAT in H1FY10 went up by 29.3% for
consolidated business.
EBITDA growth stood at 31%; expansion in
EBITDA margins of 129 bps.
22.3%
29.3%
Sales : H1 FY10 vs H1 FY09
20000
16031
15000
13108
10000
5000
0
H1FY09
H1FY10
PAT : H1 FY10 vs H1 FY09
2500
2308
2000 1785
1500
1000
500
0
H1FY09
H1FY10
Rs. Mns
32

Stock Performance & Shareholding
Dabur’s stock price vis-à-vis NIFTY:
Shareholding*
150
100
50
Indian Public Others
FII's
5% 2%
12%
Banks/MF's/Insur
ance
11%
0
Promoters
70%
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
May-09
Jun-09
Jul-09
*As on 23 rd October 2009
NSE
Dabur
Dabur Outperformed the index by 45% during
the period July 2008-July 2009.
33

DIL Consolidated financials- P&L H1FY10
Rs.Mn
DIL (Consolidated) P&L H1FY10 H1FY09 YoY (%) FY09 FY08 YoY (%)
Gross Sales 16,030.7 13,108.4 22.3% 28341.1 23962.9 18.3%
Less:Excise Duty 123.8 157.1 286.8 352.2
Net Sales 15907 12951 22.8% 28054.3 23610.7 18.8%
Other Operating Income 106.1 153.2 -30.7% 255.5 239.7 6.6%
Material Cost 7346.8 6371.8 15.3% 13761.7 11153.9 23.4%
% of Sales 45.8% 48.6% 48.6% 46.5%
Employee Costs 1318.8 1134.3 16.3% 2347.0 1993.1 17.8%
% of Sales 8.2% 8.7% 8.3% 8.3%
Ad Pro 2339.3 1594.2 46.7% 3432.6 2955.4 16.1%
% of Sales 14.6% 12.2% 12.1% 12.3%
Other Expenses 1965.2 1731.9 13.5% 3808.4 3415.0 11.5%
% of Sales 12.3% 13.2% 13.4% 14.3%
Other Non Operating Income 79.4 111.5 -28.8% 212.9 100.4 112.1%
EBITDA 3122.3 2383.8 31.0% 5,173.0 4,433.4 16.7%
% of Sales 19.5% 18.2% 18.3% 18.5%
Interest Expenses 69.7 79.8 -12.7% 232.1 168.0 38.2%
Depreciation/Amortization 262.6 239.9 9.5% 492.4 421.0 17.0%
Profit Before Tax (PBT) 2790.0 2064.1 35.2% 4448.5 3844.4 15.7%
Taxes 475.0 282.9 67.9% 539.9 506.7 6.6%
Profit After Tax (PAT) 2315.0 1781.2 30.0% 3908.6 3337.7 17.1%
% of Sales 14.4% 13.6% 13.8% 13.9%
Profit After Tax (After Minority Int) 2305.4 1784.5 29.2% 3912.7 3329.2 17.5%
EPS (Rs) 2.7 2.1 4.52 3.85
34

DIL Consolidated Balance Sheet : 30 th September 2009
Rs.Mn
DIL (Consolidated) Balance Sheet
Sources Of Funds
Shareholders' Fund:
Share Capital
YTD Sep 09
865.8
YTD Sep 08
865.1
Reserves & Surplus 9193 7183
10058 8048
Minority Interest 83 44
Loan Funds:
Secured Loans 1133 1523
Unsecured Loans 541 1674 42 1565
Deffered Tax Liability 358 283
TOTAL 12173 9940
Application of funds:
Fixed Assets:
Gross Block 11772 8052
less: Depreciation 3266 2827
Net block 8507 5225
Investments 1121 1744
Current Assets,Loans & Advances
Inventories 4491 4154
Sundry Debtors 2195 2265
Cash & Bank balances 1377 706
Loans & Advances 3414 11477 2735 9860
Current Liabilities 5729 4994
Provisions 3535 2272
9264 7266
Net Current Assets 2213 2594
Miscellaneous Expenditure 79 138
Deffered Tax Assets 257 240
TOTAL 12173 9940
35

Thank You
Investor Relations
Dabur India Ltd
Contact:+91-11-42786000
36