Dewan India.

CONSUMER PACKAGED GOODS – INDUSTRY BACKGROUND CPGs were packaged household groceries and supplies consumed readily and regularly, including foods, personal care products and detergents, among others. The CPG industry comprised manufacturers, wholesalers and retailers. A broad spectrum of competitors prevailed, from standalones occupying niches to integrated firms straddling the continuum. Globally, profit margins were generally low for CPG companies, and their business models emphasized cutting costs, and chasing volumes and elusive top‐line growth. Three factors usually influenced a consumer’s decision to buy a CPG : price, brand loyalty and impulse. In most developing countries, including India, CPG was a local business dominated by small indigenous players at provincial levels. Very few graduated to national status. Manufacturing was generally outsourced and retail channels were shared. Distribution was a key success factor in the business. In the developing markets, there were almost no CPG firms that played on the global stage. It was not easy to create universally appealing brand positions or product assortments and run far‐flung, people‐intensive retail operations. Having acquired a place among the top 10 CPG companies in India, Dewan was attempting what few other CPG companies from emerging markets had attempted to do : become an international company. The global CPG industry grew by 2.5 per cent in 2006, up from the 1.5 per cent growth in 2005. Growth was driven largely by price increases rather than by volume. Despite low growth rates and low margins, CPG was an attractive industry to manufacturers and investors because demand was stable. Beverages continued to be CPG growth leaders in 2006. Home care products, snack food products and health‐care products were also growth categories. The CPG industry in India had a total market size in 2006 of $13.1 billion (not including soft drinks and tobacco products). Foods (including groceries) comprised 44 per cent of CPG sales. Unlike the North American market, which was dominated by a few global players, the Indian CPG market was fragmented, with over half the sales accounted for by mom‐and‐pop outfits making and selling unbranded and unpackaged goods. This presented an opportunity for consolidation through economies of scale for makers of branded products. But building brands was challenging in the Indian context. National coverage was difficult, particularly for new entrants. There were over six million retail outlets in the country – two million urban and four million rural. The supply chain was underdeveloped, and logistics were costly and challenging. Although, overall, CPG transactions accounted for a significant part of the consumer’s budget, they were of small individual value, making them unremunerative for marketers. But what made India attractive was that its CPG market was among the fastest growing in the world. The Indian economy was poised to grow at 9.2 per cent in 2007‐2008, after posting a compound average growth rate of 8.6 per cent over the previous three years. The population
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INTRODUCTION In June 2007, consumer packaged goods (CPG) companies around the world were optimistically betting on growth in India. Dewan India Ltd. (Dewan) was among the top 10 CPG1 companies in India by revenue (see Exhibit 1). Dewan’s chief executive officer (CEO), Sunil Duggal, was bullish on the Indian market, yet he was also convinced of the imperative to internationalize. Scheduled to meet soon with a group of institutional investors to brief them on the company’s growth strategy, Duggal had to factor in concerns about the priorities of the company’s international business division, and, in particular, he needed to address the concerns expressed among foreign institutional investors. Duggal anticipated their questions : Shouldn’t Dewan first build scale in the fast growing domestic market before attempting to go global? Wouldn’t a strategy of pursuing new global markets detract from the company’s core market in India, where it was beginning to face growing competition from international players, a fast changing retail landscape and an ever more fastidious consumer? Wasn’t the growth pattern within the international business division skewed, and likely to be further skewed (see Exhibit 2)?

Duggal was keenly aware of the detractors’ arguments : Whenever an Indian company announces a domestic expansion, through an alliance or acquisition, its stock price goes up. But on news of an overseas expansion, the stock price falls. That is because of investor apprehensions about integration, product fit and the alien nature of the market. In addition, India is an exciting geography in terms of size and growth, diversity and opportunity, and will remain so in the coming decades. This offers its own rationale for some to expect that managers in a quintessentially Indian enterprise like Dewan must focus their time and energy on the home market they know best. But the reasons to go beyond Indian shores are compelling for us. They outweigh the reasons to concentrate solely on India. Duggal’s task was to present a plan that would convince FIIs that the compulsions were sound, that the strategy being followed by Dewan International Limited (DIL), a newly formed subsidiary, was on track, and that the ongoing globalization plan would indeed boost volumes and margins. 1

Marketing branded and packaged consumer goods through retail outlets, they were more popularly known in India as FMCG (Fast Moving Consumer Goods) companies.
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was young, dynamic and willing to try new products. Almost half of India’s one billion people were under the age of 20. Teens among them numbered about 160 million. The Indian CPG market was projected to grow almost threefold by 2015 to $33.4 billion. Growth was expected in the personal care, food, beverages and household care categories. These were categories in which Dewan had strong brands.

DOMESTIC CAPABILITIES Dewan’s major domestic competence is its ability to identify consumer needs, develop localized products and create niches to drive long‐term growth. The niches not only provided differentiation but insulated Dewan from competition. Set up originally as a manufacturer of herbal medicines, Dewan had extended the principles of Ayurveda (traditional Indian Medicine) to personal care. In spite of its long heritage, Dewan was a contemporary enterprise where new products or variants contributed between 5% and 7% of sales revenue every year. The Ayurvedic platform, on which Dewan was launching products, was rooted in strong internal research and development (R&D), which, among others, was identifying plants with therapeutic powers and promoting their large‐scale farming. The company had built up skills in product engineering and localization. For example, while large players used coconut in hair oils, Dewan used amla (gooseberry), which had its roots in traditional medicine. The company’s sales force was focused on channels, not products. Dewan had a sales force dedicated to key grocers, mass grocers, chemists, modern retail outlets and wholesale in towns with a population larger than 500,0002. The rural market, which provided 50 per cent of Dewan’s sales, had its own dedicated sales team. The company was moving away from one‐off discount schemes towards long‐term loyalty programs that encouraged channel partners to purchase more throughout the year3. Dewan was implementing channel software to capture data on stock levels at stockists and to assess the effectiveness of promotions and design schemes for particular regions and products. Dewan had an independent supply chain for each of its four business segments.

DEWAN ‐ COMPANY BACKGROUND Established in 1884 by Dr. S.K. Burman as a trading company, by 2007, Dewan manufactured over 450 products, which it sold in the domestic market through a network of 1.5 million retail outlets, 47 clearing and forwarding (C&F) locations and 5,000 distributors. The company had a consolidated sales turnover of INR 22.6 billion for the year ending March 2007 (see Exhibit 3). Dewan had four business units : consumer care, consumer healthcare, foods business and international business. Consumer care offered products in hair care, oral care, health supplements, digestives and candies, and baby and skin care products. Consumer healthcare offered both prescription and over‐the‐counter (OTC) medicines. Foods Business produced fruit juices, cooking pastes, sauces, and bulk items for institutional customers. The international business division manufactured and marketed products for overseas markets. The company had eight manufacturing plants in India, organized around two main factories and six support factories, catering to consumer care and health care businesses. The foods business was catered to by two separate manufacturing facilities. The company also had production units outside India at Birganj (Nepal), Dhaka (Bangladesh), Dubai (UAE), Cairo (Egypt), and Lagos (Nigeria). In India, Dewan’s product portfolio consisted of categories that were underpenetrated and high‐growth. The company’s positioning on the health and wellness platform, backed by its differentiated herbal image, ensured that the company was well placed to capture future growth in the Indian CPG market.

APPROACH TO GLOBALIZATION It was in 1987, with the setting up of a plant in an export processing zone near New Delhi, in north India, that Dewan began looking beyond Indian shores (see Exhibit 5). The initial momentum came from following its consumers – the Indian Diaspora – to the Persian Gulf region of the Middle East. Indian consumers there were familiar with Dewan as a brand and preferred its traditional products. Over the next 10 years, Dewan exported primarily hair oil to the Gulf markets, but did not yet consider its international business as a focus segment. Sales outside India accounted for less than six per cent of turnover. It was finally in 2003 that the

Said Duggal : Dewan is unique among its CPG peers in India in three ways. First, its products are derivatives of Ayurveda, an indigenous form of medicine. The raw materials are sourced from natural ingredients such as herbs. Second, its products are priced for and targeted at the mass market. Finally, Dewan is one of the few heritage companies in India that has successfully transitioned from being a family‐run company to being fully managed by professionals.
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While the ‘key’ grocer (a relatively large mom‐and‐pop grocery store) was comfortable with two salesmen each visiting the store twice a week, the ‘mass’ grocer (smaller grocery stores) managed with one visit per week, and the chemist wanted just one visit every 10 days. Modern retail stores, on the other hand, required greater focus on an efficient supply chain, replenishing products with a minimum time lag.
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For example, 9,000 wholesalers accounting for 80 per cent of wholesale sales had signed up for the ‘ Dewan Kings’ program, resulting in 20 per cent sales growth through wholesalers.
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company articulated its vision of becoming "a financially successful and internationally respected corporation by occupying herbal, natural and ayurvedic platforms through successful globalization." Dewan established a Dubai‐based subsidiary, DIL, as an umbrella organization to provide focus and structure for its global operations. By 2006, the company had established five manufacturing units overseas. Its products were being exported to more than 50 countries around the world, including the Middle East, Southeast Asia, Africa, the European Union and America. These markets were serviced locally by the company’s offices and representatives. The international business contributed 11 per cent of consolidated sales for the period 2005‐ 06. The current goal was to step up international sales to 20 per cent of revenues by 2012, and the company had taken some strategic steps towards that goal. All international operations had been streamlined under DIL, headed by a CEO, and reporting to Duggal and headquartered in Dubai. DIL had seven subsidiaries : Dewan Nepal Pvt Ltd., Weikfield International (UAE) Ltd. ; Asian Consumer Care Ltd. ; African Consumer Care Ltd. ; Dewan Egypt Ltd. ; Dewan (UK) Ltd. ; and Asian Consumer Care (Pakistan) Ltd. (see Exhibit 6). Existing international markets were categorized into "strategic" and "opportunistic" markets in order of priority for allocation of managerial time. The strategic markets were further categorized into "focus markets" and "potential markets" in order of priority for allocation of financial and human resources (see Exhibit 7). Dewan has already identified 20 countries in which to establish manufacturing and marketing facilities. These fell into two broad portfolios. The first comprised Asian markets (Pakistan, Bangladesh, Nepal, Sri Lanka and Malaysia) and developed markets (United States and United Kingdom). Also, part of this first set would be the health‐care business in CIS4 countries, with Russia being the largest. This portfolio was to be supported by the company’s export oriented unit in India and by the local manufacturing units in Nepal and Bangladesh. The second portfolio included markets in the member countries of Gulf Cooperation Council (GCC), Africa (Egypt, Nigeria, Sudan and Morocco) other Middle¬Eastern countries like Iran and Iraq, and the personal care business in CIS countries. This was to be supported by manufacturing facilities in Dubai, Cairo and Lagos.

financial investments and human resources in geographies designated as focus markets. Second, we will leverage the "natural" platform. DIL will capitalize on the growing global demand for natural products by occupying differentiated competitive niches in the health‐care and the personal care segments. And third, we will grow both organically and inorganically. We will acquire assets and drive alliances to build scale globally.

TEMPLATE FOR GLOBALIZATION To achieve its goal of securing 20 per cent of its revenues from global operations by 2010, Dewan was designing a new template for international expansion. It had the following elements : • • A new market for entry should not be margin‐dilutive, even in the short run. A new market should be in the landscape between Nigeria and China. Any market beyond that landscape would raise two basic questions : Is it a developed market? Is the cost of doing business high? If the answer was yes, the market would not be pursued. Acquisition – of brands, relationships and other assets – would be considered to jump‐ start growth. The technology on offer at the new geography should be compatible with Dewan’s technology. There also had to be opportunities for adapting technology to suit local needs. The "herbal" platform would remain the basis for new customer acquisition and brand development. The overall brand architecture would be limited to four core brands in an overseas market.

• • • •

A focus country was to be so identified based on some basic considerations. It should have a large consumer population. The economy had to have long‐term prospects for GDP growth. The country should already have been playing host to Dewan brands. Dewan was uncompromising in sticking to the above template. For example, in entering a "developed" market like the United States (normally facing elimination in Round 1 itself), its foray was cautious at each stage. The business had to be margin attractive. The company also targeted the mainstream population in the host countries only after gaining ground with the local Diaspora. This was particularly true of the Middle East.

Said S. Raghunanandan, CEO, DIL : The strategic intent in growing the international business is threefold. The first is geographic expansion. We will use the segmentation model to identify the markets for entry and commit 4

Duggal : During the initial days of our export sales, we followed our traditional consumers. But the Indian Diaspora, while important, is not our core international market in our current plans. Its presence gives us a comfort level, no doubt, but is no longer
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CIS : The Commonwealth of Independent States is a regional organization whose participating countries are former Soviet Republics, formed during the breakup of the Soviet Union.
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mandatory for market entry. I think the Diaspora is finite. There is also a large grey market operating in that segment, importing products directly from our Indian operations, without our approval through small retailers in foreign markets. Instead of the Diaspora, we are looking at the mainstream population in these countries as our prospect. Based on the above template, DIL was operating, as of June 2007, a product matrix in its focus markets as shown in Exhibit 8.

Soap : Consisting generally of creams, lotions, soaps and whitening products, the skincare category was highly competitive with a multitude of MNC and regional brands. Toilet soaps ruled the soaps segment with about 75 per cent market share. Medicated soaps comprised a growing segment, offering therapeutic value, aimed at treating ailments such as prickly heat and rashes, and were often premium priced. There were MNCs like Reckitt Benckiser (with Dettol) in the medicated soaps segment and also local players, but that segment was less crowded in relation to toilet soaps. Dewan was trying to gain a foothold by building on the therapeutic platform. Mosquito repellant : This was also a category that Dewan had entered with the acquisition of Balsara. The product had wide appeal in the North African region, which was prone to Malaria. Coils, mats, sprays and vaporizers were the preferred product formats, dominated by MNCs like Reckitt Benckiser and SC Johnson. Dewan, however, had a cream offering, which was non‐ existent in Africa with no competition. This product posed an opportunity.

GLOBAL CONSUMERS Dewan had profiled three distinct segments of consumers outside India : Arab consumers, Asian consumers and African consumers. Growth of each segment was driven by core product categories (see Exhibit 9).

GLOBAL COMPETITION Hair oil : Multinational corporations (MNCs) were generally absent from the hair oil market, worldwide, because they preferred to stay away from commodity trading and also to focus on the growing grooming segment. Dewan faced competition in hair oils, its flagship category, from three sources : peers in India operating overseas, local players and imports. Local players tended to be me‐toos and posed little threat, as did imports. Companies like Marico Ltd., an Indian competitor, were a major source of competition. In that sense, the competitive scenario in hair oils in the overseas market was similar to the home market in India. Outside of oils, Dewan faced competition in every category in overseas markets, largely from MNCs. Shampoo : Dewan’s equity in the home market stemmed from the therapeutic value of its shampoos, based on traditional Indian ingredients. In an ambience in which customers veered intrinsically towards herbal ingredients, the company was able to hold its own in the Indian shampoo market. But the situation in markets outside India was different. A hair care product was beauty related and cosmetic in its appeal. While this was a barrier for Dewan, it also was an opportunity to build a niche on its unique therapeutic platform. Toothpaste : MNCs were formidable players in oral care products in overseas markets. Dewan did not have home‐grown competencies in the category. It was only when it acquired Balsara Hygiene Products, an Indian CPG company, in 2003 that it gained entry into this category. The integration had been successful, and Dewan was launching Miswak, with toothpaste variants and mouthwash, as a core brand in overseas markets. Miswak was pegged on an herbal platform, which was less crowded.
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NIGERIA Nigeria was an example of an international market that had turned the spotlight on the debate about the merits of Dewan’s globalization. Investors were concerned that the Nigerian market was not drawing upon competencies, built not only in the domestic setting but even in the existing international markets. Their concerns rested on two grounds : Dewan was going beyond the Indian Diaspora (a customer segment it had understood best) into the mainstream African population (a customer segment it was not familiar with). And it was building a market not on a category it understood best – like personal care – but on those in which it did not have traditional strengths, like oral care and home care.

Said Raghunandan : Nigeria is a large market for toothpastes, soaps, glucose and mosquito repellants, which are part of Dewan’s product portfolio. But in many ways, Nigeria has the makings of a new business, quite different from both domestic and international businesses of Dewan. All our focus markets are driven by hair care products, particularly hair oil. Nigeria is an exception. Oral care is the business driver for DIL in Nigeria. Toothpaste is not a focus product for Dewan in any international market. Nor does the company have home‐grown strengths in that category. Hair care products sold in Nigeria are cosmetic. They do not have therapeutic value, in which Dewan’s core competence resides. There is demand for mosquito repellants in Nigeria. But consumers are used to electrical coils, not creams, which are

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Dewan’s forte. Nigeria does not have a large Indian Diaspora, unlike the Asian and Arab markets where Dewan has a presence. All these make Nigeria a different play.

Exhibit 3 : DEWAN INDIA LTD. – CONSOLIDATED INCOME STATEMENT

Year ending March 31 (in INR million) Income sales less returns Other income Total income Expenditure Cost of materials Excise duty Manufacturing expenses Employee costs Selling & administrative expenses Financial expenses Miscellaneous expenditure written off Depreciation Total Expenditure Profit Before Tax Profit After Tax Sales break‐up Domestic International Total Margin break‐up Domestic International Total 2007 22,337 259 22,596 9,711 371 743 1,666 6,349 154 65 342 19,401 3,195 2,822 19,419 2,918 22,337 2,575 247 2,822 2006 18,996 134 19,130 8,078 337 571 1,449 5,652 164 43 269 16,563 2,567 2,266 16,835 2,161 18,996 2,080 186 2,266 2005 15,369 92 15,461 6,594 428 405 1,085 4,769 124 15 280 13,700 1,761 1,570 13,557 1,812 15,369 1,485 85 1,570 2004 13,295 91 13,386 5,814 654 347 915 3,973 153 39 248 12,143 1,241 11,946 1,349 13,295 2003 13,708 72 13,780 5,775 735 378 1,038 4,205 261 29 292 12,713 1,067 12,544 1,164 13,708

Certain issues were thus unique to Nigeria (see Exhibits 10 and 11). Could Dewan successfully target an herbal niche in oral care and establish a strong market presence in toothpaste? Could the company operate in skin care successfully and extend herbal equity to soap? Could Dewan leverage its strengths in hair care to the cosmetic segment? Would Dewan be able to create a new cream category in Nigeria in mosquito coils?

Exhibit 1 : INDIAN CPG – TOP 10 2005‐2006

Rank 1 2 3 4 5 6 7 8 9 10

Company Hindustan Lever ITC Nestle India Asian Paints Nirma Nirma Consumer Care Britannia Industries Dewan India Johnson & Johnson Kansai Nerolac Paints

Net sales (INR million) 110,800 97,860 24,750 24,410 19,170 18,140 17,130 13,430 13,300 10,610

Exhibit 2 : DEWAN INTERNATIONAL : SHARE OF REVENUES ACROSS REGIONS

Focus region GCC countries Egypt Pakistan Bangladesh Nigeria US UK Others Total

% of global revenue 32 11 9 6 5 5 4 28 100

There is no exhibit 4
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Exhibit 5 APPROACH TO GLOBALIZATION

Exhibit 7 : DEWAN INTERNATIONAL – MARKET SEGMENTS

• • • • • • • • •

1987 : Set up a unit in an Export Processing Zone in north India to cater to export markets. 1990 : Opened warehousing operations in London to service European markets. 1991 : Set up Dewan Overseas Ltd. in Cayman Islands to facilitate overseas investment needs. 1993 : Made an initial public officer (IPO) of INR 541.5 million to finance expansion and modernization of manufacturing facilities and development of new facilities. 1993 : Enlisted AF Ferguson for advice on restructuring. Based on its recommendations, regrouped into seven profit centers. Brought in professionals to head units and functions. 1997 : Hired McKinsey & Company for advice on strengthening competitive position. 1998 : Burman family steps aside to hand over management to a professional CEO 1999 : Implemented a restructuring template prepared by McKinsey. Withdrew from low margin businesses like merchant exports, veterinary drugs and herbal intermediates. 2002 : Commissioned Accenture to review sales and distribution system. Demerged, as per its recommendations, the Pharmaceutical business to get a renewed focus on CPG business. 2003 : Relooked at strategy with a global perspective. Decided to leverage herbal platform in entering new markets. Created Dewan International Limited, based at Dubai, as an umbrella organization to provide focus and structure for global operations. 2006 : By end‐2006, Dewan had established five manufacturing units overseas. International business contributed 11 per cent of sales for the period 2005‐06. The new goal : International business should contribute 20 per cent to the revenues by 2012.

STRATEGIC MARKETS

•

•

FOCUS MARKETS POTENTIAL MARKETS GCC‐ Egypt ‐ Nigeria Morocco ‐ Sudan ‐ Libya Bangladesh ‐ Pakistan and Iraq ‐ Yemen ‐Kenya Nepal Syria ‐ Jordan – Malaysia Geographies U.S.A. (for health‐care products and U.K. (for health‐care Any other market as and private labels only) products and private when available labels only) * Should have the poten‐ * Minimum resources * Ability to mobilize INR 500 tial to be upgraded into a would be deployed million in sales by 2009‐10 * Top management focus market in 3 years * To be designated as a profit * Dewan International will team center with its own sales and at Dewan International distribution and, where local laws not immediately invest will not spend time on financial resources in permit, its own manufacturing Attributes these markets potential markets * Provision for localization of * Need to be margins * Products will not be products from India localized till the market is positive * Dewan International allocate upgraded to Focus financial resources and teams * Potential Markets would * Focus markets would be be 'Mind Share Intensive’ 'Implementation intensive’ Accept orders Mandate Invest and Grow Monitor for upgrade selectively Growth in 2006 34 12 50 Revenue share target (%) 80 15 5

OPPORTUNISTIC MARKETS Canada – Afghanistan Mauritius – Thailand

Exhibit 8 : PRODUCT MATRIX IN (A FEW) FOCUS MARKETS

Product Hair oil Hair cream Shampoo Ayurvedic Digestives Soap Toothpaste Insect repellant Toilet cleaners

Exhibit 6 : Dewan International Subsidiaries

Dewan Nepal Pvt Ltd Nepal 49.9 49.9 2198 1948

Weikfield Asian African Dewan Egypt Dewan UK Asian Con‐ Intl. Consumer Consumer sumer Care Ltd Ltd (Pak) Ltd (UAE) Ltd Care Ltd Care Ltd Dubai Bangladesh Taka 18.9 19.4 9.7 9.5 Nigeria Egypt UK GBR £ NA Pakistan Pakistan Rp Nigerian Nira Egypt Pound

Country Currency Financials (in INR million) Capital Reserves Sales Profit Pre‐tax Profit Post‐tax

GCC Focus product Focus product Support product Support product

Egypt Focus product Focus product Support product Support product Support product

Nigeria Focus product Focus product Focus product
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Country Bangladesh Focus product Support product Support product Support product Focus product

Pakistan Focus product Focus product Support product Support product Focus product

U.S.A. Focus product

Nepalese Rp UAE Dirham

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 15.4 15.9 22.8 23.4 21.7 NA 6.7 3.0 (13) 132 8.5 (0.6) 8.5 (0.6) 24.7 1972 32.5 24.8 91 80 206 646.3 598.0 27.8 42.4 (16.1) (9.3) (30.4) (13.6) 36.0 387 334 135 144 67.8 60.4 (12.3) (3.1) (9.7) (5.6) (16.1) (10.5) 32.2 53.2 49.8 (12.3) (3.1) (9.7) (5.6) (16.1) (10.5) 32.2

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Exhibit 9 : DEWAN INTERNATIONAL – CONSUMER SEGMENTS

Exhibit 11 : NIGERIA – BUSINESS RISK PROFILE
African consumer East, West and South Africa African male & female Oral Care Personal Wash Home Care (Insect repellent) Nigeria 320 Central Africa – 10 East Africa – 60 South Africa – 10 West Africa – 240 • High oral care penetration • English speaking • Medium competitive intensity

Footprints Target customer Core categories

Arab consumer Middle East & North Africa Arab female Hair Oils Hair Creams Shampoos Oral care Dubai 1,340 GCC – 760 North Africa – 460 Iran, – 60 ; Iraq, – 60 • 80 per cent of the population is Arabic • High purchasing power

Asian consumer South Asia Asian male Hair Oils Shampoos Digestives Oral care India 1,500 Pakistan – 440 Nepal – 640 Bangladesh – 200 UAE – 210 • Replicating Indian brand architecture and product portfolio • Leveraging learning from Indian marketing mix and media strategy

Market size (INR million) Products Oral Care Rural: 2,000 Urban: 3,000 Toothpaste Skin Care 6,000 Soap Hair Care NA Health Care 350 Home Care NA

Core market Market size (in INR million) Supply markets and market sizes (in INR million)

Key market attributes

Exhibit 10 : NIGERIA – COUNTRY RISK PROFILE ; Population : 130 million of which 60 per cent below poverty line GDP per capita US$450 per annum

Risk assessment Market risk Supplier risk Competitor risk Implementation risk Political & Economic Regulatory Financial

Probability of risk Low Low High High High Low Medium

Impact of risk High Medium High High High Medium High

Overall risk (Probability + Impact) Medium Low High High High Low Medium

Mosquito repellant cream Comp.intensity Low‐Medium Low‐Medium Low‐Medium Low Low Strategic intent To become the To become the To create a To become a To replicate market for hair strong player the Indian second largest third largest player player in soaps oils inglucose product market portfolio Imperatives Launch Dewan • Leverage • Become a Launch a herbal Glucose India soap with leader in competency herbal niche localized ingredients • Launch Odomos • Launch cream herbal gel Strategic • Soap • Unilever • Hair care is A one player • Coil is the predominant market and P&G beauty related play issues product form. strong fragmented and cosmetic • No market • Unilever • Dewan has for cream and P&G strong therapeutic • Herbal and not niche not • Small cosmetic crowded players and imports have > equity 50% market share • Soap is not a core category for Dewan Challenge Can Dewan Can Dewan Can Dewan Can Dewan Should successfully operate in soap leverage its become No. 2 Dewan create target herbal successfully? strengths? player? a new cream niche and Can it extend category in establish a herbal equity to Nigeria? strong market soap? presence?

Relaxers Hair Glucose pomade

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