FINANCIAL ANALYSIS OF GODREJ CONSUMER PRODUCTS LIMITED & DABUR INDIA LIMITED

Research Proposed By: Cleopatra G. DCunha MMS 1 B Roll No 72

INTRODUCTION
GODREJ CONSUMER PRODUCTS LIMITED
Godrej Consumer Products (GCPL) is a flagship company of the Godrej Group. GCPL is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments. The companys focus is on providing its customers with innovative, value for money solutions for meeting their daily needs and improving the quality of their life. This is achieved through the brands the company markets. GCPLs brands, which include Good Knight, Cinthol, Fairglow, Godrej No. 1, Expert, Hit, Jet, Ezee, Protekt and Snuggy, among others, are household names across the country. The 'Good Knight' brand has been placed at an overall rank 12 and continues to be the most trusted household care brand in the country in Brand Equity's Most Trusted Brands Survey, 2010. GCPL is among the largest marketer of toilet soaps in the country. Fairglow, India's first fairness soap, created marketing history as one of the most successful innovations. The company employs 950 people and has offices in Mumbai, Delhi, Kolkata and Chennai which ensure pan-India coverage. Its factories located at Malanpur (Madhya Pradesh), Thana and Katha (Himachal Pradesh), Guwahati (Assam) and Sikkim cater to the diverse requirements of its product portfolio. GCPL also have a strong emerging presence in markets outside India. With the acquisition of Keyline Brands in the United Kingdom, Rapidol and Kinky Group, South Africa and Godrej Global Mideast FZE, it owns international brands and trademarks in Europe, Australia, Canada, Africa and the Middle East. As part of increasing its global footprint, GCPL has also recently acquired Tura, a leading medicated brand in West Africa, Megasari Group, a leading household care company in Indonesia and Issue Group and Argencos, two leading hair colorant companies in Argentina. GCPL is driven by its mission to continuously enhance the quality of life of consumers in high-growth markets with superior-quality and affordable home care, personal care and hygiene products

DABUR INDIA LIMITED

Dabur India Limited is India's leading FMCG Company with interests in health care, personal care and foods. Dabur has a history of more than 100 years and the company has carved a niche for itself in the field of Ayurvedic medicines. The products of Dabur are marketed in more than 60 countries worldwide. It has17 ultra-modern manufacturing units spread around the globe. Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India. Chairman and CEO Companys Turnover Mr. Sunil Duggal Rs. 2891 Crore (FY10)

Structure and Divisions

3 major strategic business units (SBU)

1.

Consumer Care Division (CCD) address consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods Master brands:
y y y y y

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 f ood 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. Leader in herbal digestives with 90% market share

2.

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:

y y y y y y y y

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

3.

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 personal care categories Focus markets:
y y y y y y y

GCC Egypt Nigeria Bangladesh Nepal US High level of localization of manufacturing and sales & marketing

4.

3 Subsidiary Group companies y Dabur International y Fem Care Pharma y Newu 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). Latest Happenings 2009: Dabur Red Toothpaste joins 'Billion Rupee Brand' club .

NEED FOR STUDY

The main purpose of doing this project is to apply the various theoretical aspects of Financial Management & Analysis of Financial Statements to the financial statements of the 2 companies, viz. Dabur India Limited & Godrej Consumer Products Limited. Based on the applications one can determine the growth of these 2 companies over the past 3 years. The results obtained can help its existing & potential investors in decision making.