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A PROJECT REPORT ON ANNUAL REPORT OF DABUR INDIA LIMITED.

Guide Ms. Radhika Bhutani

Submitted by Neha Gupta Enrollment no. 01720803910 MBA 1st Semester

BHAGWAN PARSHURAM INSTITUTE OF TECHNOLOGY (A Unit of Bhartiya Brahmin Charitable Trust) AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

About the company 2. Dabur at a glance 5. Vision of Dabur India ltd 3. Competitor Analysis 2 3 5 7 8 10 13 15 16 2 . Corporate governance 8. Product line of the Company 6. Corporate information 4.Table of contents 1. Board of directors 9. Financial analysis of the annual report 2009-2010 7.

and which has an annual turnover of over Rs 15 billion. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do).ABOUT THE COMPANY Over its 120 years of existence. 3 . Dabur has consistently ranked among India’s top brands. The trust levels that this brand enjoys are phenomenally high. it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally. An umbrella name for a variety of products. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. the Dabur brand has stood for goodness through a natural lifestyle. There’s a great sense of responsibility for investors’ funds on view. Dabur is an investor friendly brand as its financial performance shows. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm. While Ries and Trout may ask ―What does Dabur stand for—shampoo or digestive tablets?‖ The answer is fairly simple. ranging from hair care to honey. while managing not to alienate earlier generations of loyal customers.

TEAM WORK We work together on the principle of mutual trust & transparency in a boundary-less organisation. CONSUMER FOCUS We have superior understanding of consumer needs and develop products to fulfill them better. PEOPLE DEVELOPMENT People are our most important asset. We are intellectually honest in advocating proposals. including recognizing risks. PASSION FOR WINNING We all are leaders in our area of responsibility. We accept personal responsibility. with a deep commitment to deliver results. and accountability to meet business needs. and we encourage & reward excellence. We add value through result driven training.VISION of the company "Dedicated to the health and well being of every household" PRINCIPLES of the company OWNERSHIP This is our company. 4 . We are determined to be the best at doing what matters most.

INTEGRITY We are committed to the achievement of business success with integrity. We are honest with consumers. with business partners and with each other. 5 .INNOVATION Continuous innovation in products & processes is the basis of our success.

CORPORATE INFORMATION BOARD OF DIRECTORS CHAIRMAN Dr. P. Sunil Duggal Mr. P. N. Bhargava Mr. Amit Burman DIRECTORS Mr. Pradip Burman Mr. Analjit Singh Dr. Ajay Dua GM (FINANCE) & COMPANY SECRETARY Mr. D. Narayan Mr. Albert Wiseman Paterson Mr. Mohit Burman Mr. C. Jain 6 . R. Vijay Dr. K. A. S. Narang Mr. Anand Burman VICE CHAIRMAN Mr.

Basu & Co INTERNAL AUDITORS Price Waterhouse Coopers Pvt. Ltd. (U.39412525. Kaushambi. IDBI Bank Ltd.P. Ghaziabad . CORPORATE OFFICE Dabur India Limited Dabur Tower.com Email: investors@dabur.).dabur.AUDITORS. The Royal Bank of Scotland Citibank NA HDFC Bank Ltd. BANKERS Punjab National Bank Standard Chartered Bank The Hongkong & Shanghai Banking Corporation Ltd. 3982000 Fax: 0120 .com 7 . Chartered Accountants M/s G. India Tel: 0120 .201 010. Sahibabad.4374935 Website: www.

Burman at Kolkata Setting up first manufacturing plant at Garhia Production of Ayurvedic medicines Establishment of research laboratories Dabur India (Dr.1.000 crores Super specialty drugs Demerges Phrmaceuticals business Acquires balsara Acquires Fem Care Pharma 8 . incorporated Launched Dabur Chyawanprash in tin pack Sahibabad factory / Dabur Research Foundation Public Limited Company Joint venture with Agrolimen of Spain Cancer treatment Comes with first Public issue Joint Ventures 3 separate divisions Foods Division / Project STARS Professionals to manage the Company Turnover of Rs. Ltd. Burman) Pvt. Established by Dr.K. S.DABUR AT A GLANCE 1884 1896 Early 1900s 1919 1936 1949 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000 2001 2003 2005 2008 Birth of Dabur.

Lemoneez. Tasty Digestives Tasty fun-filled digestives available in interesting formats like tablets and candies. 9 . Dabur Honey Natural Personal Care A premium personal care brand & a leader in its category. Hajmola appeals to all age groups. Dabur is known for providing a range of efficacious and timetested health care products based on the principles of Ayurveda like Dabur Chyawanprash.PRODUCT LINE OF DABUR Herbal & Ayurvedic Health Care A trusted name in natural healthcare for the past 125 years. Vatika is a popular name in the natural personal care space offering a whole range of nature-based solutions like Dabur amla. Hommade. Fruit-based Beverages India's leading brand of packaged fruit juices. Réal provides the largest range of refreshing & healthy fruit juices that are 100% natural and free of preservatives like Dabur Active. Vatika hair oil.

10 . Fem offers a range of fairness bleaches and hair removing solutions.Fairness Bleaches & Skin Care A new member in the family of Dabur's key brands. Several skin care products like Dabur Gulabari and Dabur Uveda are offered by Dabur.

the company was able to manage costs well leading to a sizeable increase in operating margins during the year.5 crore in 2009-10 from Rs 517.3 crore.1 crore in 2008-09. The steady growth achieved by the Company has been enabled by sustained investments in marketing and brand building.FINANCIAL ANALYSIS In a year which was beset with external challenges such as below average monsoons. production. drought in some parts of the country.4% 11 .834. and introduction of a host of new products and variants added to this growth and helped Dabur gain a strong foothold in several high-growth and highly competitive categories across the consumer goods space. digestives & foods.7 crore while Net Profit grew 28. Dabur continued to report strong growth in sales across its businesses and geographies. During the year.6% to Rs 3.6%  Earnings before interest. rising food inflation and sharp currency fluctuations.7 crore in 2009-10 from Rs 2. depreciation. taxes and amortization (EBIDTA) increased to Rs 669. the Company saw robust volume-led growth across key categories like hair care.416. skin care.416. distribution. On a consolidated basis. a leading player in the women's skin care products market. Revenues grew by 20.1% to go up to Rs 501. supply chain and by driving operational efficiencies across all its functions. health supplements. The highlights of the Company’s performance in 2009-10 on a consolidated basis are:  Consolidated Sales increased to Rs 3. In spite of sharp fluctuations in input costs and an overall inflationary scenario. The acquisition of Fem Care Pharma. registering a growth of 20. oral care.3 crore in 2008-09. registering a growth of 29.

7% in 2008-09  Consolidated Turnover grew by 20. 2009. the company test.5% to the topline during 2009-10. Available in 4 variants. (―Fem‖ or ―Fem Care‖).1%  Net profit after tax and after minority interest for the year at Rs.3430. The Fem Care legal entity has since been merged with Dabur and the merger takes effect retrospectively from 1st April 2009.launched a host of new brands and products. Packed with herbal extracts derived from a blend of authentic Ayurvedic ingredients that are documented in Ayurvedic scriptures of Bhavprakash Nighantu and proven actives. The other major launch of the year was the Réal Burrst range of fruit-based beverages. During 2009-10 Dabur completed the acquisition of Fem Care Pharma Ltd.80 crore as compared to Rs.27 crore is higher by Rs. 2852. including Dabur Uveda range of Ayurvedic skin care products. Consolidated profits after tax (PAT) went up to Rs 501. the Uveda range is well researched and proven to enhance skin tone and texture.8 in 2009-10 from Rs 4. increasing by 28.21 crore in the previous year   Earnings per share (EPS) went up to Rs 5.5 in 2008-2009 Return on Net worth of the company increased to 53.2 crore. margins and profits post the closing of the deal which was effected on 25th June.110.28% to Rs.06 crore as compared to Rs. The acquisition has added about 3. infact the company has shown good growth in revenues.3 crore in 2009-10 from Rs 391. The High Court order to this effect was passed on 2nd June 2010. The operations of Fem Care Pharma Limited have been integrated with Dabur. this non-carbonated light fruit beverage range offers the benefits of refreshment and thirst quenching qualities to the consumers. The company also introduced two new light hair oil brands – Vatika Enriched 12 . 391.27 crore in the previous year. During the year.5% in 2009-10 from 47.501.

FMCG portfolio includes 13 . under which the Company plans to double its sales and profits from current levels to reach revenues of Rs 7.000 crore by the fiscal year 2013-14.000 crore and profits of Rs 1. Dabur has drawn up a strategic plan for the next four years.Almond hair oil & Dabur Amla Flower Magic hair oil to expand its presence in the light hair oils category.

Shareholder Grievances. The principles of good corporate governance is to ensure fairness in all transactions within and outside the company with investors. compliance of law and voluntary adherence to ethical standards which are inevitable for achieving organisational efficiency. customers. Dabur understands and respects its fiduciary role in the corporate world. 14 . partners. Dabur understands the importance of good governance and has constantly avoided an arbitrary decision-making process. Dabur is committed to good corporate Governance and has benchmarked itself in line with global practices. This attitude of Dabur has earned recognition and has strengthened its bond of trust with stakeholders and the society at large. Remuneration. employees. It has always endeavoured to pursue growth by adhering to highest national and international standards of corporate governance. 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.CORPORATE GOVERNANCE Good corporate governance and transparency in actions of the management is key to a strong bond of trust with the Company’s stakeholders. Compensation and Nominations  Meets all Corporate Governance Code requirements of SEBI Corporate Governance is the implementation of best management practices. enhancing shareholders value and discharge of social responsibility. The company had in fact adopted Corporate Governance and disclosure practices much before they were mandated by legislation. Adoption of Corporate Governance and disclosure practices attract the best of capital and talent for any organisation and create value and wealth on a sustainable and long term basis. competitors and the society at large.

etc. professionalism and accountability. 15 . employees. fair and transparent processes and reporting systems. The board of directors. It`s initiatives towards this end include: professionalization of the Board. accountability and equity in all facets of its operations and all its interactions with shareholders. the senior management.Corporate Governance Philosophy The Company's philosophy is to achieve business excellence and optimize longterm value for its shareholders on a sustained basis through ethical business conduct. integrity. employees. The company`s focus revolves around values based on transparency. and going beyond the mandated Corporate Governance Code requirements of SEBI. lenders and regulatory bodies. The corporate governance structure in the Company assigns responsibilities and entrusts authority among different participants in the organisation viz. It envisages attainment of the highest level of transparency.

Number of Board Meetings The Board of Directors met four times during the year: on April 29. on 3rd September. none of the Directors are members of more than 10 Board level committees. 2010 is in confirmity with Clause 49 of the listing agreement. The maximum gap between any two meetings was less than four months. 2009. During the year. which stipulates that a Company shall have an optimum combination of Executive and Non. nor are they Chairmen of more than five committees in which they are members. Dr Ajay Dua was appointed to the Board as NonExecutive Independent Director. 2010. 2010. 2009. The Company has held at least one Board meeting in every three months.Executive Directors. 2009. and January 27. as stipulated under Clause 49. two Non-Executive Promoter Directors and six Non-Executive Independent Directors. The composition of the Board as on 31st March. 2009. Dabur's Board consists of 12 members. who is a Non-Executive Promoter Director.Board of Directors Composition of the Board As on March 31. and where the Chairman being a Non-Executive director is also a promoter of the Company. October 26. the Board comprises of three Executive Directors (of whom one is Promoter Director). Besides the Chairman. at least one-half of the Board should comprise of Independent Directors. 16 . Directors' Attendance Record and Directorships held As mandated by Clause 49. with not less than 50 per cent of the Board comprising of Non-Executive Directors. July 27.

Marico. 17 . The pleasantly perfumed hair oil has its main market in the Hindi belt and also has significant presence in eastern and western India. a fifty-year old brand. the company has also decided to enhance its retail presence by nearly 20 per cent from the existing 5 lakh retail outlets in an attempt to reach the rural parts.n COMPETITOR ANALYSIS The key competitor’s of Dabur in the Hair Oil segment are Keo Karpin. In fact over time it has become the gold standard for purity. Marico’s Parachute is premium edible grade oil. is a pioneer in the light hair oil category. a market leader in its category. Besides. Bajaj. Bajaj has two flagship oil brands . Parachute's primary target has been women of all ages. Dabur is one of India's largest player in the hair oil segment and the fourth largest producer of FMCG. not only in the urban sections of India but also in the rural sector. HLL has two products. Overall it has a share of 4% in hair oil market. Emami has existence in hair oil market through Himani Navratan oil and Himani Oil. Emami. The brand has a huge loyalty.Bajaj Brahmi Amla and Bajaj Almond Drops — currently have a value share of 19 per cent and 12 per cent in their respective oil categories as per ORG-Marg. Overall it has a market share of 4% in hair oil market. HLL which together with Dabur have about 64% of India's domestic market. Parachute is positioned on the platform of purity. and had grown to a business level in 2003 of about 650 million dollars per year. Overall it has a 3% share in hair oil market. Emami has taken Madhuri Dixit as brand ambassador for emami oil and Amitabh Bachchan for Himami Navratan Oil. We have tried to analyse the competition for Dabur in the Hair Care segment as follows: Keo Karpin. Its share is 6% of the total hair oil market. It was established in 1884. Dabur Hair Oils have a market share of 19%. It has a market share of 28%. Synonymous with pure coconut oil in the market. Clinic Plus Hair Oil and All Clear Clinic Hair Oil.

Its market share is 12%. which together with Dabur have about 85% of India's domestic market. doing 110 million dollars of business annually.Its Chyawanprash has a market share of 10%. but also provides Chyawanprash and other health products. Dabur Chyawanprash (herbal honey) has a market share of 61%. Zandu and Himani. The company focuses primarily on Ayurvedic products (in 1930. named after an 18thcentury Ayurvedic. and specializes in Ayurvedic medicines. though only a portion is involved with Ayurvedic products. the company is mainly involved with toiletries and cosmetics.The key competitor’s of Dabur in the Chyawanprash segment are Baidyanath. founded in 1974. 18 . (Baidyanath for short) was founded in 1917 in Calcutta. Zandu Pharmaceutical Works was incorporated in Bombay in 1919. but the pharmaceutical division was separated off about 30 years later). through its Himani line. one of its international products is Shikakai (soap pod) Shampoo. Dabur is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. provides a diverse range of products. The Emami Group. though it has recently expanded into the FMCG sector with cosmetic and hair care products. pharmaceuticals were added. We have tried to analyse the competition for Dabur in the Chyawanprash segment as follows: Sri Baidyanath Ayurvedic Bhawan Ltd.