Dabur Foods Limited • Annual Report 2004-05
To, The Members, Dabur Foods Ltd. Your Directors have pleasure in presenting the 8
Annual Report on the business and operations of the Company together withthe audited statement of accounts for the year ended 31
BUSINESS PERFORMANCE AND FINANCIAL RESULTS:
Your Company registered another year of fantastic performance in 2004-05 by growing sales by 51% and tripling profit. Thebusiness crossed the landmark of Rs.100 crs sales mark. The business recorded a turnover of Rs.130.14 crores and profit aftertax of Rs.5.25 crores. The key highlights of performance are:•Real Juice strengthened market leadership position and also crossed the Rs 100 crs balance sheet sales mark.•Strong growth from new product launches and exports.•The line extensions of Hommade also continued to drive the growth. The primary growth drivers of your business were its two fruit juice brands ––“Real” and”“Real Activ”. Real grew by 40 per centand Real Activ recorded an even more impressive growth of 43% during 2004-05. During the year your Company repositionedits offerings to put in place a well-segmented product strategy. Your Company now has three distinct brands across the freshfruit juice category. Activ’s new identity, which has now become distinct from the Real brand, has been brought out in its new contemporary and trendy packaging. The Activ range now has five flavours including the two new additions – Mixed FruitCucumber Spinach Juice and Mixed Fruit Beetroot Carrot Juice.Expanding it’s portfolio, your company launched a new innovative brand to tap an emerging consumer need. While Realcontinues to be the offering in the medium segment with growth thrust provided by continuously launching new flavours, theeconomy end of the portfolio consists of “Coolers”. These drinks are based on traditional Indian formulations, which have acooling effect on the body. They were launched in 3 flavours — Watermelon, Pomegranate and Aam Panna. The Hommade brand grew by 41% in 2004-05. This brand offers a range of cooking pastes, tomato puree, coconut milk and hasrecently test marketed a soup concentrate.Besides the retails channel, the product is extensively distributed in the food services channel, dominating this channel by making it available in the best hotels, restaurants, airlines and several institutions like business houses to Indian army. In thecurrent year, a separate brand called Nature’s Best has been created for institutional sales and it consists of products likeketchup and corn powder. There was impressive growth in sales of honey to institutions, which is done in special 1 kg packsDabur Foods’ multi-fruit processing facility at Siliguri, West Bengal under the name of its wholly owned subsidiary – PasadensaFoods Limited became fully operational during the year. The plant produces pulp and concentrates and has brought the Company a step closer to achieving full backward integration and realising the resultant cost efficiencies. The plant meets the stringentrequirements of the Codex Alimentarius Commission Guidelines, the Recommended International Code of Practices and theGeneral Principles of Food Hygiene.In 2004-05, Dabur Foods acquired a new facility near Jaipur for manufacturing fruit juices. The plant currently has manufacturingfacilities for 200 ml packs. This facility will be upgraded to manufacture 1 litre and 200 ml packs of ‘Real’ brand of fruit juice andalso the ‘Coolers’ range of products. With this acquisition, the Company will be able to de-risk its business by considerably reducing its reliance on the Nepal plant.
ParticularsAmt. (Rs. in‘lacs) Turnover13014.72Profit before Tax570.26Less: Provision for Tax- current44.71Profit after Tax525.55Loss Brought Forward(2006.83)Balance carried over to Balance Sheet(1481.28)