Second Quarter - Dabur India Limited

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Dabur India LimitedOctober 28, 2010Gagan Ahluwalia:Thank you. Good afternoon ladies and gentlemen. On behalf of the management of Dabur IndiaLimited, I extend a warm welcome to all participants in this conference call pertaining to theresults for the period ended 30 th September, 2010. Present here with me are Mr. Sunil Duggal,CEO, Dabur India Limited, Mr. Raghunathan, CFO, Mr. Ashok Jain, General Manager, Financeand Company Secretary, Mr. Saibal Sengupta, General Manager, Finance. I would now requestMr. Duggal to give us an overview of the company's performance, post which we shall have aQ&A. Thank you and hand over to Mr. Duggal.Sunil Duggal:Thank you Gagan. Good afternoon ladies and gentlemen. I welcome you to the Dabur IndiaConference Call regarding the results for the quarter and half-year ended September 30, 2010.Dabur India has registered a growth of 17 % in consolidated sales and 16.9% in profit after taxduring the first half of financial year 2011. The quarter witnessed 14.7% growth in consolidatedsales and 15.4% growth in profit after tax.The Consumer Care Division (CCD) registered 16.5% growth for the half-year and 14.2% for thequarter. Although some price increases have been put into effect to offset inflation, more thanthree-fourths of the growth was volume lead. The division witnessed strong growth momentumin health supplements, home care and foods. Hair oils grew 12.4% during the half-year and 7.1%for the quarter. Dabur's largest hair oil brand, Dabur Amla reported growth of 14.9% for the halfyearand 10.4% for the quarter inspite of high competitive activity. Vatika Hair Oil grew at10.7% for the half-year and was flat during the quarter. Anmol Coconut Oil reported a growth ofabout 7% during both half-year and quarter.Shampoos category contracted by 15% during the half-year and by 13.9% during the quarterprimarily on account of disruptive competition and aggressive promotional activity witnessedduring the period. In addition base effect kicked in as the first half of last year had witnessedhighest ever growth of 37%. Vatika Shampoos’ restage has been completed along with newcommunication and marketing inputs. Early signs of revival of the brand are visible as marketshare improved to 6.5% during the recent quarter from around 6% in the beginning of the year.Anti-dandruff variant of Vatika Shampoo posted a growth of 9% during the quarter.Health supplements reported a growth of 36.2% for the half-year and 31.1% during the quarter.Dabur Chyawanprash grew by 50.4% for the half-year and 44.3% for the quarter led byimmunity building campaigns and positioning on around the year usage platform. An interestingnew initiative has been undertaken with the launch of flavoured Chyawanprash in orange andmango flavors to extend the feel of this product to more customers. Dabur Glucose continuedwith market share gains and posted an impressive performance with 48.6% growth during thehalf-year and 28.8% for the quarter. Dabur Honey grew by 15.8% for the half-year and 14.5%during the quarter driven by introduction of new SKUs and sustained marketing activities.Oral care recorded a growth of 15.3% for the half-year and 11.1% during the quarter. Toothpastegrew by 20.5% during the half-year and by 14% during the quarter recording gain in marketshare of more than 100 basis points over last year. All the three brands in this category RedPage 2 of 25
Dabur India LimitedOctober 28, 2010Toothpaste, Babul and Meswak have reported good performance. Dabur Red Toothpowderregistered a growth of 7.1% during the quarter reversing the declining trends seen earlier.Skin care category posted a growth of 11% during the half-year and 8.8% for the quarter.Gulabari brand grew by 15.5% for the half-year and 8.8% for the quarter. Sales of Gulabari Rosewater increased by 13.6% for the quarter; however, lower growth in Gulabari cream and lotionpulled down overall growth for the brand. These products are expected to pickup with the onsetof winter. Fem portfolio grew by 10% for the half-year and 11.9% for the quarter while Fembleaches reported 12.6% growth during the half-year and 10.5% for the quarter. The hairremoving creams witnessed an uptick post relaunch in the second quarter of the fiscal. Fem liquidsoaps are undergoing a changeover in formulation, which would provide additional benefit ofprotection from germs. These are being introduced in the next quarter. Uveda brand continues tobe present in select markets and is planned to be extended in a phased manner with enhancedproduct range.Digestive category grew by 14.4% during the half year with similar growths during the quarter.The Hajmola brand reported steady growth driven by new variants and innovative customeractivation.Home care registered a strong growth of 37.4% for the half-year and 42.1% during the quarter.Odonil grew by 73.4% during the half-year and 71.7% for the quarter post relaunch in the lastquarter of the previous fiscal. Electric air fresheners, which were launched under the nameOdonil Pluggy to target this emerging sub-category of air fresheners had a good initial launchand are gaining acceptability in the market. Odomos grew by 32.9% for the half year and 48.8%for the quarter on the back of extended monsoons, which led to spread of mosquito relateddiseases. Odomos oil the first mosquito repellent of its kind, which was again launched in thefirst quarter, took foray into the rural markets, received encouraging response.Foods category reported a good growth of 21.3% during the half-year and 21.9% for the quarterled by strong performance by Real and Active juices portfolio. Dabur’s culinary brand Hommadecontinued its good performance posting 33.4% growth in the half-year and 30.5% for the quarter.Consumer health division (CHD) witnessed a growth of 12.2% during the half-year and 14.1%for the quarter. Pudin Hara grew by 14.9% for the half year and 20.9% for the quarter driven bylaunch of Pudin Hara Lemon Fizz. Honitus registered a robust growth of 40.3% for the quarter.Post completion of CHD’s strategic review, new OTC products are all set to be launched fromQ3 onwards.Dabur's international business continued its strong growth with sales increasing by 18.7% duringthe quarter and 23.3% during the half-year. Key markets of MENA and West Africa recordedsame currency growth of 24% during Q2 while Nepal sales showed a minor contraction of 2%due to local disturbances which have since been resolved. Overall the international business isshowing a good momentum with deepening presence in existing markets of Middle East, NorthPage 3 of 25
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Second Quarter - Dabur India Limited

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