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2008-2010 SUBMITTED TO Mr. LALIT BHALLA SUBMITTED BY DEVENDRA OJHA MBA(HONS.) ROLL- RQ1101A14
Dabur At A GLANCE
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.
Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09) 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD) 3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA). 17 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India
Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods
Master brands: Dabur - Ayurvedic healthcare products Vatika - Premium hair care Hajmola - Tasty digestives Ral - Fruit juices & beverages Fem - Fairness bleaches & skin care products 9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day Leader in herbal digestives with 90% market share
Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats
Has more than 300 products sold through prescriptions as well as over the counter Major categories in traditional formulations include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include: - Nature Care Isabgol - Madhuvaani - Trifgol Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North & West Africa, EU and the US with its brands Dabur & Vatika .
Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales
Leveraging the 'Natural' preference among local consumers to increase share in perosnal care categories
Founding Thoughts "What is that life worth which cannot bring comfort to others"
The doorstep 'Daktar' 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.
BOARD OF DIRECTORS
Dabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate governance. The Board comprises of:
Vice-Chairman Chairman
Independent Directors
Mr. P. N. Vijay
Mr. R C Bhargava
Dr. S. Narayan
MILESTONES
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has come a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And Dabur has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow...
1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s - Production of Ayurvedic medicines Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science. 1930 - Automation and upgradation of Ayurvedic products manufacturing initiated 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated 1940 - Personal care through Ayurveda Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India. 1949 - Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India.
1957 - Computerisation of operations initiated 1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses. 1972 - Shifts base to Delhi from Calcutta 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet. 1979 - Dabur Research Foundation set up 1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984 - Dabur completes 100 years 1988 - Launches pharmaceutical medicines 1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage. 1994 - Comes out with first public issue 1994 - Enters oncology segment 1994 - Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice 1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country. 1998 - Burman family hands over management of the company to professionals 2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses. 2001 - Super specialty drugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets. 2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore 2003 - Dabur demerges Pharmaceuticals business Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, Dabur India now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business. Maintaining global standards
As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Science for nature Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. 2005 - Dabur aquires Balsara As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market, in a Rs 143-crore all-cash deal. 2005 - Dabur announces bonus after 12 years Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one share for every one share held. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore. 2006 - Dabur crosses $2 bln market cap, adopts US GAAP. Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance. 2006 - Approves FCCB/GDR/ADR up to $200 million Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other securities.The capital raised will be used to fund Dabur's aggressive growth ambitions and acquisition plans in India and abroad. 2007 - Celebrating 10 years of Real Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of the brand. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits.
2007 - Foray into organised retail Dabur India announced its foray into the organised retail business through a wholly-owned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. 2007 - Dabur Foods merged with Dabur India Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational efficiencies. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space. 2008 - Acquires Fem Care Pharma Dabur India acquires Fem Care Pharma, a leading player in the women's skin care market. Besides an entry into the high-growth skin care market with an established brand name FEM, this transaction also offers Dabur a strong platform to enter newer product categories and markets. 2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste crosses the billion rupee turnover mark within five years of its launch. 2010 - Dabur makes its first overseas acquisition Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a leading personal care products company in Turkey, for $69 million. 2010 - Dabur acquired 100% equity in Namaste Lab Dabur acquired 100% equity in Namast Laboratories LLC of the US for $100 million. This marks Daburs entry into the fast-growing ethnic hair care products market in U.S., Europe and Africa. 2010 - Dabur Chyawanprash Launched Orange & Mango Flavours Dabur launches Indias first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched in Orange and Mango flavoured variants.
2010 - Dabur Amla Hair Oils enters Limca Book of Records Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of hosting the longest ever non-stop head massage marathon. 2011 - Dabur enters professional skin care market. Dabur enters professional skin care market with the launch of OxyLife Professional Facial Kit, created exclusively for professional use. 2011 - Dabur launches its first-ever online shopping portal Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com With this, Dabur is the first Indian FMCG company to launch a dedicated online shopping portal for its beauty products range. The portal will be the online gateway for consumers to know, understand, buy and gift the exclusive Dabur Uveda range of skincare products. 2011 - Dabur India acquires 30-Plus from Ajanta Pharma Dabur India Ltd acquired Ajanta Pharmas over-the-counter energizer brand 30-Plus.
Category Fruit Juice Fruit Drinks (coolers) Hair oil Coconut base Shampoo Vatika Hair care (overall) Chyawanprash Honey
Daburs Share 58% Real and Active 1% Coolers 6.4% Vatika 7.1% 27% 64% 40%
Main Competitors Tropicanna Frooti And Maaza HLL HLL and P&G HLL, P&G and Himalaya Himani, Zhandu and Himalaya Himani, Hamdard and local Players Paras and local players
Digestives
37%
Mar 08 86.4 441.92 528.32 16.45 0.89 17.34 545.66 467.94 189.77 278.17 16.26 270.37 201.15 100.46 68.26 182.94 552.81 317.22
% of B/S 15.83% 80.99% 96.82% 3.01% 0.16% 3.18% 100.00% 85.76% 34.78% 50.98% 2.98% 49.55% 36.86% 18.41% 12.51% 33.53% 101.31% 58.14%
Mar 09 86.51 651.69 738.2 10.65 130.72 141.37 879.57 518.77 210.45 308.32 51.71 436.9 261.72 112.36 143.69 227.28 745.05 331.21
% of B/S 9.84% 74.09% 83.93% 1.21% 14.86% 16.07% 100.00% 58.98% 23.93% 35.05% 5.88% 49.67% 29.76% 12.77% 16.34% 25.84% 84.71% 37.66%
Mar 10 86.9 662.48 749.38 24.27 85.7 109.97 859.35 687.23 236.28 450.95 23.31 348.51 298.44 130.48 163.91 325.12 917.95 432.06
% of B/S 10.11% 77.09% 87.20% 2.82% 9.97% 12.80% 100.00% 79.97% 27.50% 52.48% 2.71% 40.56% 34.73% 15.18% 19.07% 37.83% 106.82% 50.28%
Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets
5. The net block of the company is 50.98% in 2008 , it decrease 35.05% in 2009 and again increases to 52.48% in 2010 as compared to total assets. It is due to the major acquisition by the company.Fem Care acquisition in 2009-10. 6. The sundry debtor of the coming decrease in year 2008-09 by 6% but in year 2009-10 it increases by 3% because the company had Debts Outstanding for a period exceeding six months. 7. Proportion of working capital for the year 2009 is 3 times that of 2008 since the companys current assets have increased but for the year 2010 it is half of 2009.
Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets
EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax
747.32 38.42 138.16 315.49 390.67 84.83 1,714.89 401.84 10.92 390.92 25.75 365.17 40.57 7.08
35.87% 1.84% 6.63% 15.14% 18.75% 4.07% 82.31% 19.29% 0.52% 18.76% 1.24% 17.53% 1.95% 0.34%
937.13 36.63 154.7 358.33 429.25 96.32 2,012.36 466.88 14.47 452.41 27.42 424.99 47.48 6.51
0.00% 39.11% 1.53% 6.46% 14.95% 17.91% 4.02% 83.98% 19.48% 0.60% 18.88% 1.14% 17.74% 1.98% 0.27%
992.21 35.43 197.62 432.15 566.4 111.04 2,334.85 572.43 13.49 558.94 31.91 527.03 89.66 0
34.74% 1.24% 6.92% 15.13% 19.83% 3.89% 81.75% 20.04% 0.47% 19.57% 1.12% 18.45% 3.14% 0.00%
0.75 316.77
0.04% 15.20%
-2.55 373.55
-0.11% 15.59%
4.04 433.33
0.14% 15.17%
1. There has been an increase in Expenses of the company because the company has paid wages, bonus and deposited provident fund to the employees and also company has spent another huge amount on manufacturing, selling and administration. 2. The Net Profit of the company in 2008 was 15.20% when compared with net sales, in 2009 it was 15.59% and in 2010 it is 15.17%. PAT increased by 28.7% during the FY10 due to strong topline, improved gross margins and operating leverage despite higher ad spend & increased taxation. 3. The Raw materials cost in 2008 was 35.87% which has increased to 39.11% in 2009 that shows company had good opening inventory for the fiscal year. 4. Operating profit in 2008 was at 19.29% as compared to 19.48% in 2009 non-operating income stood at 0.43% of sales as compared to 0.75% in the previous year. 5. Depreciation in 2008 was 1.24% when compared with 1.14% in 2009 and then further it has decreased to 1.12% in 2010 ,this shows that the company has amortized equally over the period of time.
Mar 07 86.29 316.9 403.19 19.28 0.8 20.08 423.27 404.3 168.97 235.33 3.71 145.35 157.37 60.98 50.25 127.81 396.41
Mar 08 86.4 441.92 528.32 16.45 0.89 17.34 545.66 467.94 189.77 278.17 16.26 270.37 201.15 100.46 68.26 182.94 552.81
Mar 09 86.51 651.69 738.2 10.65 130.72 141.37 879.57 518.77 210.45 308.32 51.71 436.9 261.72 112.36 143.69 227.28 745.05
Mar 10 86.9 662.48 749.38 24.27 85.7 109.97 859.35 687.23 236.28 450.95 23.31 348.51 298.44 130.48 163.91 325.12 917.95
Mar-07 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Mar-08 100.13% 139.45% 131.03% 85.32% 111.25% 86.35% 128.92% 115.74% 112.31% 118.20% 438.27% 186.01% 127.82% 164.74% 135.84% 143.13% 139.45%
Mar-09 100.25% 205.65% 183.09% 55.24% 16340% 704.03% 207.80% 128.31% 124.55% 131.02% 1393.80% 300.58% 166.31% 184.26% 285.95% 177.83% 187.95%
Mar-10 100.71% 209.05% 185.86% 125.88% 10713% 547.66% 203.03% 169.98% 139.84% 191.62% 628.30% 239.77% 189.64% 213.97% 326.19% 254.38% 231.57%
277.7
317.22
331.21
432.06
100%
114.23%
119.27%
155.59%
Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets
0 4.04 433.33
OPPORTUNITIES: Dabur india could benefit from Governmental support, in the form of grants, allowances, training etc. The changes in the way consumers spend and what they buy provides a big opportunity for dabur india to explore. dabur india is in good financial position, which is an opportunity for them to explore in terms of investment in new projects. Decrease in taxation gives an opportunity for dabur india to reduce prices or increase profits. The growth of the fmcg industry is an opportunity for dabur india to grasp. THREATS: Consumer lifestyle changes could lead to less of a demand for dabur India products/services. Tax increases placing additional financial burdens on dabur india could be a threat. Change in demographics could threaten dabur india. New products/services from rival firms could lead to dabur india's products/services being less in demand. Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to dabur india's performance.