ABOUT THE COMPANY

Name of the company :Dabur India Limited

Sector classification : Fast Moving Consumer Good

Corporate Office:
Kaushambi
Ghaziabad - 201010
Uttar Pradesh, India
Tel:
+91 (0120) 3982000 (30 Lines)
+91 (0120) 3001000 (30 Lines)

Registered Office:

8/3, Asaf Ali Road,

New Delhi – 110 002
Tel: +91 (011) 23253488

Type of organisation :Public Limited

Board members :
Dabur has an illustrious Board of Directors who are committed to take the company onto
newer levels of human endeavour in the service of mankind. The Board comprises of:
Chairman:- Dr. Anand Burman
Vice Chairman:- amit Burman
Whole time director:
Mr. P D. Narang
Mr. Sunil Duggal
Mr. Pradip Burman

Non whole time director:

His Highness Maharaja, Gaj Singh

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 Mr. P.N. Vijay
Mr. R C. Bhargava
Dr. S Naryana
Partnerships and Production:
Strategic partnerships with leading multinational food and health care companies to
introduce innovations in products and services.
Manufacturing facilities spread across 3 overseas locations to optimise production by
utilising local resources and the most modern technology available.

Geographical reach :

Org history:

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The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a
physician tucked away in Bengal. His mission was to provide effective and affordable cure for
ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook
the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and
plague.
Soon the news of his medicines traveled, and he came to be known as the trusted 'Daktar' or
Doctor who came up with effective cures. And that is how his venture Dabur got its name -
derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to
produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no
access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the
company growing from a fledgling medicine manufacturer in a small Calcutta house, to a
household name that at once evokes trust and reliability.
Highlights
 1986 - Starts experimental and clinical studies on herbal and Ayurvedic formulations,
conducting more than 200 validation studies to ensure the quality of ingredients as well
as finished products.
 1988 - Keeping consumer preferences in mind, develops Hajmola Candy - a candy
variant of Hajmola digestive tablets that gives a tangy, sweet-sour taste.
 1990 - A modern analytical laboratory equipped with HPLC, HPTLC, GLC set up
 199s1 - To break into cancer research, DRF sets up an oncology screening laboratory.
 1993 - Strengthens the value of Chyawanprash as an immunity builder after conducting
more than 12 clinical trials to validate traditional claims of its immunomodulation
properties.
 1994 - First organisation in the world to isolate the anticancer drug, Paclitaxel, from the
leaves of Himalayan Yew Tree using a unique eco-friendly process that doesn't harm the
tree. This facilitated manufacture of cheaper anticancer medicines.
 1995 - Taking a lead in beauty care, DRF develops Vatika Hair Oil, a value-added
coconut based hair oil that improves on plain coconut oil.
 1996 - Bringing the taste of traditional Indian kitchens to modern households, DRF
develops ethnic cooking pastes branded and marketed as the Hommade range.
 1997 - Catering to health conscious people looking for natural nourishment, DRF
develops preservatives-free fruit juices, launched as Real Juices.
 1998 - Develops New Livfit for hepatitis B & E virus infections
 1999 - Continues with oncology research by developing 2 more plant-based anticancer

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 drugs.

PRODUCT PORTFOLIO
Dabur Health Care Product Range:
Dabur's Health Care range brings for you a wide selection of herbal products, to provide
complete care for varying individual needs. We derive our products from the time-tested heritage
of Ayurveda, backed by the most modern scientific test and trials. That ensure unfailing quality
and safety in anything you pick

Dabur Chyawanprash- Shilajit Gold -

Dabur Chyawanshakti- Hajmola - Nature Care -
Glucose D- Hajmola Candy - Sat Isabgol -
Pudin Hara - Shilajit -
(Liquid and Pearls) Shankha Pushpi -
Pudin Hara G - Sarbyna Strong -
Dabur Hingoli -

Dabur Lal tail-

Dabur Janma Ghunti-

Dabur Personal Care Product Range

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Dabur presents its range of herbal personal care products, created to make you look and feel
good deep down. Bringing together the gentle touch of nature and Ayurveda’s wisdom. Backed
by the unfailing quality of Dabur Products.

Amla Hair Oil - - Vatika Henna Conditioning Shampoo

Amla Lite Hair Oil - - Vatika Anti-Dandruff Shampoo
Vatika Hair Oil - - Vatika Root Strengthening Shampoo
Anmol Sarson Amla -

Gulabari - - Dabur Red Toothpaste

Vatika Fairness Face Pack - - Babool Toothpaste
Vatika Saffron Glow Soap - Meswak Toothpaste
with Sandal - - Promise Toothpaste
- Dabur Lal Dant Manjan

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 - Dabur Binaca Toothbrush

Stresscom

Antistress immune modulator

Broncorid

For the management of stable asthma and breathlessness.

Madhuvaani

Efficacy of Sitopladichurna with goodness of honey

Trifgol

Isabgol based natural fibre laxative.

Lipistat

Hypolipidaemic and Cardioprotective.

Rheumatil gel Rheumatil oil

Quickly absorbed and relieves unlimited mobility without
joint pain any pain
Rheumatil tab
Ensures easy mobility without
pain and inflammation

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 Mensta

Complete Control 30 days a month.

Dabur Foods Product Range

Tastes like eating a fruit 100% Natural Fruit Juice Pure natural Honey

Hommade - a range of Lemoneez is a Natural Lemon Juice Capsico - a fiery red-pepper sauce.
culinary ingredients
giving you 'The taste
of Indian Kitchen'.

MARKETING STRATEGIES AND SALES

We intend to significantly accelerate profitable growth. To do this, we will:

 Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology
 Be the preferred company to meet the health and personal grooming needs of our target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science

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  Provide our consumers with innovative products within easy reach
 Build a platform to enable Dabur to become a global ayurvedic leader
 Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel
 Be responsible citizens with a commitment to environmental protection
 Provide superior returns, relative to our peer group, to our shareholder

CUSTOMER SATISFACTION

Rapid economic growth, expanding populations and rising incomes have opened up a wide vista
of opportunities in emerging consumer markets. Emerging-market multinationals (EMMs) have
left no stone unturned when identifying new markets. They are proactive in using their local
knowledge and creating those markets themselves.

“ We work very closely with consumer to improve product portfolio mix and ensure that we
offer the right product in the right geographies”

HUMAN RESOURCES MANAGEMENT

Good corporate governance and transparency in actions of the management is key to a strong
bond of trust with the Company’s stakeholders. Dabur understands the importance of good

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governance and has constantly avoided an arbitrary decision-making process. Our initiatives
towards this end include:
 Professionalisation of the board
 Lean and active Board(reduced from 16 to 10 members)
 Less number of promoters on the Board
 More professionals and independent Directors for better management
 Governed through Board committees for Audit, Remuneration, Shareholder Grievances,
Compensation and Nominations
 Meets all Corporate Governance Code requirements of SEBI

SUPPLY CHAIN MANAGEMENT

Ddabur India Limited supplied that product through Mr. Graeme A. Fraser as the head of
Sourcing, buying & Merchandising for the specialty retail venture. Mr. Fraser will be
responsible for all aspects of H&B Stores Ltd's supply chain activities, including the
development of the vendor base, overall administration of procurement processes and
Marketing. Mr. Fraser is originally from New Zealand and lived in Asia for some 8 years.

FINANCIAL STATEMENT

Profit loss account

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

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 Income:

Operating income 2,093.63 1,745.14 1,345.50 1,231.10

Expenses

Material consumed 1,023.94 778.27 582.43 546.73

Manufacturing expenses 54.02 39.24 27.10 22.45

Personnel expenses 149.69 118.66 98.31 82.09

Selling expenses 337.69 403.42 316.46 322.30

Adminstrative expenses 138.93 100.90 80.24 76.22

Expenses capitalised - - - -

Cost of sales 1,704.27 1,440.48 1,104.55 1,049.78

Operating profit 389.36 304.66 240.95 181.31

Other recurring income 7.38 3.14 1.05 2.93

Adjusted PBDIT 396.74 307.80 242.01 184.24

Financial expenses 8.55 4.43 5.73 4.66

Depreciation 25.75 21.98 19.05 17.10

Other write offs 5.67 6.49 4.26 1.49

Adjusted PBT 356.78 274.90 212.97 160.99

Tax charges 48.40 32.15 25.78 17.00

Adjusted PAT 308.37 242.76 187.19 143.99

Non recurring items 8.40 9.32 1.90 4.03

Other non cash adjustments -0.86 -0.13 0.21 -0.05

Reported net profit 315.92 251.94 189.29 147.97

Earnigs before appropriation 545.07 426.95 314.52 229.09

Equity dividend 129.60 122.13 100.32 71.59

Preference dividend - - - -

Dividend tax 22.03 17.13 14.07 9.77

Retained earnings 393.44 287.70 200.13 147.73

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Balance sheet
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Sources of funds

Owner's fund

Equity share capital 86.40 86.29 57.33 28.64

Share application money - - - -

Preference share capital - - - -

Reserves & surplus 441.92 316.90 390.54 309.43

Loan funds

Secured loans 16.45 19.28 19.23 15.70

Unsecured loans 0.24 0.26 1.25 32.77

Total 545.01 422.73 468.35 386.54

Uses of funds

Fixed assets

Gross block 467.93 404.30 328.23 317.46

Less : revaluation reserve - - - -

Less : accumulated depreciation 189.77 168.97 142.46 135.12

Net block 278.17 235.33 185.77 182.35

Capital work-in-progress 16.26 3.71 13.07 9.26

Investments 270.37 145.35 275.08 270.94

Net current assets

Current assets, loans & advances 576.82 397.78 285.68 253.35

Less : current liabilities & provisions 610.57 379.27 324.12 335.16

Total net current assets -33.75 18.52 -38.44 -81.81

Miscellaneous expenses not written 13.95 19.82 32.87 5.81

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 Total 545.01 422.73 468.35 386.54

Notes:

Book value of unquoted investments 67.99 65.99 234.43 227.12

Market value of quoted investments 205.19 80.82 43.43 46.18

Contingent liabilities 171.24 153.25 190.02 175.62

Number of equity sharesoutstanding
8640.23 8628.84 5733.03 2864.20
(Lacs)
Cash flow (Rs crore

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Profit before tax 365.18 284.22 214.36 165.02

Net cashflow-operating activity 313.29 234.43 194.34 206.99

Net cash used in investing activity -179.77 -60.57 -27.51 -60.38

Netcash used in fin. activity -119.30 -168.06 -139.45 -60.38

Net inc/dec in cash and equivlnt 14.22 5.79 27.39 -1.23

Cash and equivalnt begin of year 54.04 44.45 10.65 11.89

Cash and equivalnt end of year 68.26 50.25 38.04 10.65

Ratios
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

Per share ratios

Adjusted EPS (Rs) 3.57 2.81 3.27 5.03

Adjusted cash EPS (Rs) 3.93 3.14 3.67 5.68

Reported EPS (Rs) 3.67 2.92 3.30 5.17

Reported cash EPS (Rs) 4.03 3.25 3.70 5.82

Dividend per share 1.50 1.75 2.50 2.50

Operating profit per share (Rs) 4.51 3.53 4.20 6.33

Book value (excl rev res) per share (Rs) 5.95 4.44 7.24 11.60

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 Book value (incl rev res) per share (Rs.) 5.95 4.44 7.24 11.60

Net operating income per share (Rs) 24.23 20.22 23.47 42.98

Free reserves per share (Rs) 4.33 2.80 5.21 9.69

Profitability ratios

Operating margin (%) 18.59 17.45 17.90 14.72

Gross profit margin (%) 17.36 16.19 16.49 13.33

Net profit margin (%) 15.07 14.41 14.04 11.99

Adjusted cash margin (%) 16.17 15.51 15.63 13.17

Adjusted return on net worth (%) 59.95 63.32 45.10 43.33

Reported return on net worth (%) 61.58 65.75 45.56 44.54

Return on long term funds (%) 68.43 68.63 48.02 47.57

Leverage ratios

Long term debt / Equity 0.01 0.01 0.01 0.02

Total debt/equity 0.03 0.04 0.04 0.14

Owners fund as % of total source 96.93 95.37 95.62 87.46

Fixed assets turnover ratio 4.67 4.50 4.24 4.02

Liquidity ratios

Current ratio 0.94 1.05 0.88 0.75

Current ratio (inc. st loans) 0.91 0.96 0.81 0.66

Quick ratio 0.57 0.63 0.52 0.36

Inventory turnover ratio 12.52 13.44 14.44 11.74

Payout ratios

Dividend payout ratio (net profit) 47.86 55.24 60.49 54.96

Dividend payout ratio (cash profit) 43.54 49.63 53.85 48.83

Earning retention ratio 50.83 42.64 38.89 43.50

Cash earnings retention ratio 55.38 48.66 45.66 49.96

Coverage ratios
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 Adjusted cash flow time total debt 0.04 0.07 0.09 0.29

Financial charges coverage ratio 46.43 69.48 42.26 39.53

Fin. charges cov.ratio (post tax) 41.75 64.33 38.09 36.75

Component ratios

Material cost component (% earnings) 49.05 45.86 42.97 45.05

Selling cost Component 16.12 23.11 23.52 26.18

Exports as percent of total sales 4.49 3.96 1.97 3.02

Import comp. in raw mat. consumed 0.97 1.22 0.72 1.38

Long term assets / total Assets 0.48 0.48 0.61 0.64

Bonus component in equity capital (%) 87.46 87.58 81.74 63.55

Capital structure
Authorized Paid Up Paid Up Face
From Year To Year Class Of Share Issued Capital l
Capital Shares (Nos) Value
2007 2008 Equity Share 145.00 86.40 864022973 1

2006 2007 Equity Share 125.00 86.29 862883808 1

2005 2006 Equity Share 125.00 57.33 573302784 1

2004 2005 Equity Share 50.00 28.64 286419713 1

2003 2004 Equity Share 50.00 28.62 286249052 1

2002 2003 Equity Share 50.00 28.57 285749934 1

2001 2002 Equity Share 50.00 28.56 285593520 1

2000 2001 Equity Share 50.00 28.52 285214830 1

1999 2000 Equity Share 50.00 28.52 28521483 10

1998 1999 Equity Share 50.00 28.51 28508950 10

1997 1998 Equity Share 50.00 28.51 28508950 10

1996 1997 Equity Share 50.00 28.51 28508950 10

1995 1996 Equity Share 50.00 28.51 28508950 10

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 1994 1995 Equity Share 50.00 28.51 28508950 10

1993 1994 Equity Share 30.00 28.51 28508950 10

1992 1993 Equity Share 5.25 4.55 4550520 10

1991 1992 Equity Share 5.25 4.55 4550520 10

RESEARCH AND DEVELOPMENT

Dabur's main asset is its knowledge base and the backup of research initiatives through modern
science. Dabur deals mainly with traditional Ayurvedic products, we take care to conduct
rigorous trials and authentication of processes so that our consumers get the best. Dabur
Research Foundation (DRF), set up in 1979 as an independent research organisation, spearheads
the R&D activity of the Company.
DRF is well equipped with the most modern research facilities and more than 125 highly
qualified scientists from diverse fields like Ayurvedic doctors, chemists and phytochemists,
botanists, agronomists, clinical pharmacologists, microbiologists, food technologists, bio-
technologists, oil technologists, oncologists, and so on. We have been involved in developing
products for consumer applications as well as highly specialised areas of genomics, proteomics
and bio-informatics. Through the ceaseless quest of our scientists in frontier areas, Dabur has
been able to mark a presence even in critical aspects of health care like cancer therapy.
Our Research Areas
Dabur Research Foundation is not only limited to conducting tests and trials, but carries out
research in over 10 diverse areas:
• Ayurvedic Research - relating traditional knowledge with modern science
• Pharmaceutical Research - developing and testing drugs
• Phytopharmaceuticals - getting better resources from nature
• Biotechnology - scientific techniques for preservation
• Agronomy -- scientific regeneration and propagation
• Personal Care Products - developing natural solutions
• Analytical - studying and testing active chemicals
• Synthetic Chemistry - developing new molecules and intermediates
• Oncology Research and Molecular Biology - researching new anti-cancer remedies
• New Drug & Peptide Research - developing new drugs and delivery systems
• Food Research - developing healthy and natural foods
• Clinical Research - studies and tests for total safety of drugs
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 FUTURE PLAN
Having completed its biggest restructuring exercise in recent times, Dabur India has charted a
more focused, flexible and resource-led path for sustained growth for its FMCG business.
Catalyst examines the fine print.

1) Dabur plans to set up a major manufacturing facility in Pakistan by March 2008. The
company expects revenues of Rs 750 million in the first year of operations in Pakistan. The
project is aimed at tapping the high potential Pakistan and Afghanistan markets for cosmetic,
ayurvedic medicines and health food .
2) Dabur India plans to set up a chain of 300-400 retail outlets, based on the health and beauty
platform, across the country over the next few years. Dabur India is estimated to earmark an
investment of Rs 2 billion for its retail foray. It is expected that the company would roll out the
first few stores by the end of the calendar year.

INFORMATION TECHNOLOGY PERFORMANCE

In Dabur India Limited knowledge and technology are key resources which have helped the
Company achieve higher levels of excellence and efficiency. Towards this overall goal of
technology-driven performance, Dabur is utilizing Information Technology in a big way. This
will help in integrating a vast distribution system spread all over India and across the world. It
will also cut down costs and increase profitability.
Our major IT Initiatives:
 Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st
April 2006 for all business units.
 Implementation of a country wide new WAN Infrastructure for running centralized ERP
system.
 Setting up of new Data Centre at KCO Head Office.
 Extension of Reach System to distributors for capturing Secondary Sales Data.
 Roll out of IT services to new plants and CFAs.
Future Challenges:
 Forward Integration of SAP with Distributors and Stockists.
 Backward Integration of SAP with Suppliers.
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  Implementation of new POS system at Stockist point and integration with SAP-ERP.
 Implementation of SAP HR and payroll.
 SAP Roll-out to DNPL and other new businesses.

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