Dabur India Ltd

BSE: 500096 | NSE: DABUR | ISIN: INE016A01026 
Market Cap: [Rs.Cr.] 36,302 | Face Value: [Rs.] 1
Industry: Personal Care - Indian

 Discuss this stock

Management Discussions

Management Discussion

The global economic environment continued to remain challenging in fiscal 2013-14 withslower than expected growth in GDP. This was largely due to deceleration of growth in someof the emerging market economies triggered by domestic policy weaknesses, tight monetaryconditions and investment and supply constraints. According to an update published by theInternational Monetary Fund (IMF) in April 2014, the global economy is expected to recoverduring 2014-15, mainly led by advanced economies. Growth in emerging market and developingeconomies is expected to pick up modestly. Fig. 1, provides IMF estimates for GDP growthof key economies during 2014.

The Indian economy hasn't remained unscathed from the global economic slowdown andwitnessed deceleration in GDP growth rates. Interestingly though, India's share in theWorld GDP based on purchasing power parity (PPP) has continued to move up and despite theslowdown in growth over the last few years, it continues to show an upward trend, implyingthat India is doing better than the rest of the world and its share of global GDP (PPP)continues to increase. Fig. 2 provides the trend of India's share in global GDP.

As per IMF, India's GDP growth is expected to recover from 4.4% in 2013 to 5.4% in2014, supported by slightly stronger global growth, improving export competitiveness andimplementation of recently approved investment projects. Pickup in exports in recentmonths and measures to curb gold imports have contributed to lowering the current accountdeficit. Policy measures to bolster capital flows have further helped reduce externalvulnerabilities. Overall growth is expected to firm up on policies supporting investmentand a confidence boost from recent policy actions, but may remain below trend. Consumerprice inflation is expected to remain an important challenge, but should continue to moveonto a downward trajectory. Fig. 3 shows consumer inflation in India as estimated by IMF.

The macro-economic slowdown which had earlier impacted most of the sectors of theIndian economy such as autos, consumer durables and industrials, now has a bearing on theFast Moving Consumer Goods (FMCG) industry. Fiscal 2013-14 has been a tough year forIndian consumer sector. On the one hand, food inflation remained high during the year andon the other, there were uncertainties about job prospects and the state of the economy.Given these factors, there has been a deceleration in FMCG growth rates.

According to AC Nielsen, FMCG sector growth rates slipped to single digits in themiddle of fiscal 2013-14. However, they inched up marginally towards the end of fiscal2013-14. Refer Fig.5.

Towards the middle of fiscal 2013-14, there was a sharp depreciation in the IndianRupee (INR) and it touched record lows, primarily as an outcome of widening currentaccount and fiscal deficits. There has been some improvement on this front and the INR hasrecovered from the lows it witnessed around the middle of fiscal 2013-14. Refer Fig. 4.

Despite deceleration in FMCG sector growth rates, India continued to occupy the topspots as per global consumer confidence index study by Nielsen in addition to an uptick inconsumer confidence in the later half of fiscal 2013-14 as presented in Fig.6.

We expect the resilience of India's economic fundamentals combined with increasingconsumerism driven by the factors stated below to lead to brighter times ahead for theFMCG sector:

• Favourable demographics and rising income levels

• Total consumption expenditure set to increase - expected to reach nearly USD3600 billion by 2020 from USD 1328 billion in 2012

• Working population (aged between 15 and 64 years) estimated to increase from 780million in 2011 to 900 million by 2030

• India's middle income population estimated to reach 267 million by 2016 from 160million in 2011

• Rural FMCG market size to grow from USD 12 billion in 2011 to USD 100 billion by2025 driven by increase in per capita disposable incomes.


Building on its enhanced rural retail footprint and innovative consumer-connectinitiatives, Dabur India Ltd sailed through the challenging business environment to post astrong growth in Sales and Profit during the 2013-14 financial year. The Company's Salescrossed the Rs. 7,000 crore mark as was envisaged in the four year strategic plan whichwas completed in fiscal 2014. Your Company is now set to embark upon the next strategicplan starting 1st April 2014 which would guide the Company forward into thenext 4 years.

Good growth momentum was witnessed across key categories and geographies with both theDomestic FMCG business and the International Business reporting strong volume drivengrowth during fiscal 2013-14.

As a company, Dabur is well connected to its consumers and endeavours to provideproducts that meet their needs and requirements. We recognize that understanding consumerbehaviour and needs is critical to not just creating efficacious products but alsodeveloping effective marketing communications. Dabur has been engaging with consumers allthrough the year, basis which a host of new products and variants were developed, acrossproduct categories and geographies, which received encouraging response.

The new product launches in India during the year include a premium health supplementcalled Dabur Ratnaprash, Vatika Olive Enriched Hair Oil, Vatika Enriched Coconut Oil withHibiscus, Vatika Premium Naturals Shampoo with Hibiscus and Reetha, Fem Fairness Naturalswith no added ammonia, besides u


new Ayurvedic ethical medicines in different therapeutic areas, India's first range ofdrinking yoghurts under the brand Real Activ and fruit-milk shakes under the brand Real.In addition, we have also launched a new Anardana variant of Hajmola tablets, which hasemerged as a fairly successful variant. The pace of new launches was kept up in ourInternational Business as well with the introduction of Amla Leave-On Oils, Fem Gold HairRemoving Cream, Dermoviva Face Wash, Dermoviva Face Scrub, Vatika Hair May onnaise, VatikaHair Color Creme, Fem Halawa, Straightening and Strengthening Treatment by HAIRepair™under the brand ORS and other products during fiscal 2013-14.

Project Double which was launched during 2012 to double our direct distribution reachin rural India was consolidated and taken further during fiscal 2013-14. Today, ourproducts directly reach over 38,250 villages as compared to a reach of 14,865 villages inMarch 2011. This initiative has not just helped us manage the overall slowdown by boostingsales from the rural markets but also expanded our product basket in rural India, whichhas translated into higher and more profitable sales. As a result, we are now witnessingdemand from the hinterland for products like packaged juices under the brand Real, Femfairness bleaches and Home Care products which were till now considered as very urbancentric. This clearly indicates that the aspirations of rural consumers are increasinglyaligning with their urban counterparts, leading to a steady shift in consumer preferencetowards branded consumer products.

We continued to leverage the various melas and haats organized across rural Indiathrough the year to build greater consumer connect and generate trials for our variousproducts. These initiatives not only gave the rural consumers an opportunity to experienceDabur products, but also generated a huge buzz and positive word for the brands.

In addition to the haats, we engaged with our consumers throughout the year withvarious initiatives such as our mass awareness campaigns (Immune India, Oral Hygienecamps, Health Camps etc.), informative sessions and other promotional events. Appreciationby means of consumer recognitions and awards as well as sustained improvement in customersatisfaction is testimony to our improving customer relationships.

Fiscal 2013-14 also saw Dabur take its beauty, health and wellness products to thedigital world with four dedicated portals. The Company invested in creating an onlinecontent warehouse for its brands in Oral Care, Skin Care, Hair Care and Health Carecategories. Digital media like YouTube, Facebook etc. were used to popularize the productsand create awareness about them. These web initiatives have helped us better connect withthe internet savvy and particularly the younger generation.

The FCMG retail landscape in urban India is witnessing the emergence of chemist outletsas a key trade channel. Today, the chemists play an active role in promoting OTC productswith the flexibility to drive sales of particular brands and products and are fastemerging as retailers of a larger range of health and personal care products. Besidesbeing critical retail points, chemists also act as advisors to consumers seeking solutionsto treat moderate and non-critical health problems. As consumers are increasingly shiftingto self-medication and tend to visit a doctor only for serious ailments, they value theadvice of chemists in the context of OTX/OTC products. The chemists are better educatedand informed as compared to grocers, and give practical suggestions to consumers regardingspecific healthcare issues, hence influencing OTC purchase in a big way.

As India's most trusted healthcare brand, Dabur has already set in motion an initiativeto tap the chemist network in a more focused manner. We have organized our sales teamsspecifically to cater to the demands of this channel and also enhance distribution ofHealth Care and personal products portfolio through the chemist network. In the firstphase, Dabur plans to significantly increase its direct coverage in the chemist channel inurban markets and increase the availability of its product range in this channel. Theproject is already under implementation and we expect to derive benefits from theincreased coverage going ahead.

Riding on these initiatives, Dabur drove demand and generated strong volume-led growtheven though the environment remained challenging. Though there was emergence of pockets ofinflation driven by factors such as adverse exchange rate movements, we continued toinvest strongly behind our brands and enhance our distribution network.

The highlights of Dabur India Ltd's performance during fiscal 2013-14 on a consolidatedbasis are:

• Net Sales grew by 15.1% to Rs. 7,073.2 crores in fiscal 2013-14 from Rs. 6,146.4crores in fiscal 2012-13

• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)increased to Rs. 1,287.9 crores in fiscal 2013-14, from Rs. 1,096.7 crores in fiscal2012-13, recording a growth of 17.4%

• Profit After Tax (PAT) increased to Rs. 913.9 crores in 2013-14, up 19.7% fromRs. 763.4 crores in 2012-13

• Earnings Per Share (EPS) increased to Rs. 5.21 in 2013-14 from Rs. 4.35 in2012-13


Our business structure today stands as below:

Consumer Care Business incorporating the Health Care and Home &Personal Care (HPC) verticals, which accounts for 53.4% of consolidated sales

Foods, comprising fruit-based beverages and culinary pastes business,which contributes 11.2% to consolidated sales

International Business, which includes Dabur's organic overseas businessas well as the acquired entities of Hobi Group and Namaste Laboratories LLC. This verticalnow accounts for 32.4% of Dabur's consolidated sales


The Consumer Care Business is the largest business vertical of Dabur India Ltd. Thisvertical includes our core FMCG business, comprising Health Supplements, OTC &Ethicals, Digestives, Hair Care, Skin Care, Oral Care and Home Care. With strong growthacross most of the key categories, this vertical ended fiscal 2013-14 with a growth of12.8%.


India is witnessing a marked increase in the incidence of lifestyle-related diseases,such as cardiovascular, diabetes etc. With increasing urbanization and problems associatedwith modern-day living, the disease profiles are shifting from infectious tolifestyle-related, particularly in urban India. Rural India is also seeing a higheroccurrence of non-communicable lifestyle related diseases.

With this, matters of health are today taking prime space in the minds of everyindividual. This growing awareness is today seen across age-groups, pop-strata andgeographies. As a result, people, largely in urban India, are increasingly taking to thevirtual world to meet their need for information on preventive health care.

With a legacy and experience of nearly 130 years, brand Dabur evokes trust in itsconsumers and is well placed to cater to the consumers' increasing demand for holistichealth care. Health Care is a key pillar of growth for Dabur, and we have been rolling outa slew of new initiatives aimed at further deepening our commitment towards the health& well-being of every household.

Besides a range of digital initiatives, Dabur has also built a network of doctors andexperts who regularly interact with consumers/patients, addressing their health care needsand offering health solutions. Recognizing the fact that schools play a paramount role inshaping a child's future since they are the primary caregivers during the formative years,Dabur also undertook a host of initiatives focused on schools to educate kids on varioushealth and nutrition matters. These initiatives have resulted in Dabur being named theMost Trusted Leader in the Ayurveda category in the Brand Trust Report 2013, released byTrust Research Advisory.

Dabur's Health Care vertical comprises Health Supplements, Digestives, OTC andAyurvedic Ethical Products. Dabur has a highly experienced R&D (Research &Development) team and access to the centuries old knowledge of Ayurveda, the benefits ofwhich are now being validated with science, to develop efficacious products that arecontemporary and in ready-to-use formats offering our consumers holistic health andwell-being.

Health Supplements

Dabur's Health Supplements portfolio comprises three key brands - Dabur Chyawanprash,Dabur Honey and Dabur Glucose. Together, these brands now contribute to 22.0% of ConsumerCare sales. Fiscal 2013-14 saw Dabur roll out a series of new communication campaigns andconsumer activations, both on-ground and in the virtual world, which helped this categoryend the year with a strong 16.4% growth.

Dabur Chyawanprash, the largest brand in this portfolio, continued to be positioned asan immunity specialist. This specialist positioning was taken forward with the brand usingthe advocacy route to spread the message of building immunity and protection fromdiseases. Towards this end, we identified key opinion leaders and doctors to spread theword around the need to strengthen immunity as a foundation of health and well being. Thebrand also signed up Bollywood celebrity Madhuri Dixit for the campaign, which was verywell received and ranked amongst the best advertising campaigns by Brand Equity.

A host of innovative marketing initiatives, integration with popular television serialsand adoption of specialist advertising networks further improved the brand's visibility. Aspecial online campaign was launched which helped us reach out to over 40 millionconsumers in the virtual world. A team of professionals have also been deputed to interactwith the medical fraternity and spread awareness regarding the product benefits andvarious scientific studies conducted on the product to support the claims. Theseinitiatives helped the brand, including the fruit-flavoured variants and the sugar-freevariant, report strong double digit growth during the year.

For the past few years, Dabur Chyawanprash's Immune India campaign has been reachingout to schools across the country to educate students and teachers on the need forimmunity. This year, we took this campaign a step further with the Dabur ChyawanprashImmune India School Challenge through which Dabur Chyawanprash, along with FortisHealthcare, ran a five-month-long competition that sought to spread health awarenessamongst school kids. This initiative helped us reach out to a large number of childrenacross 2,500 schools.

While reaching out to kids on the one hand with education-led initiatives, Your Companyhas also been aware of the growing needs of its adult consumers and has taken steps toaddress them. In order to meet their combined need for immunity, vigour and vitality,Dabur has introduced a premium health supplement called Ratnaprash. Test-launched in sevenkey states, Ratnaprash is a power-packed formula that fights fatigue and keeps one activeall-day long. Enriched with the power of potent natural ingredients like Moti, Kesar,Musali, Brahmi and Amla, Dabur Ratnaprash has been specially developed for adults andhelps rebuild strength, stamina, vigour, vitality and energy which are drained by thestress of day-to-day living. The product has been well received by consumers across thetarget states, and will be rolled out nationally in fiscal 2014-15.

The other major brand in this category, Dabur Honey, which is the largest branded honeyin India, continued to report strong growth despite stiff competition from regionalplayers and price increases due to a surge in raw material prices. Dabur rolled out acampaign, featuring cine star Bipasha Basu to establish Dabur Honey as a weight managementexpert. A high-decibel initiative was also launched - both in the digital space and alsoin the print media to engage consumers and introduce them to the world of Honey-basedrecipes that are simple to cook and are tasty & healthy. Celebrity chef Vikas Khannawas signed up to promote recipes based on Dabur Honey. A compilation of Honey-based easyrecipes is also shared through magazine integration and visitors to the Dabur Honeywebsite are invited to share their own recipes. Riding on these initiatives, the brandgrew well across regions, SKUs and channels.

The Glucose category faced some compression due to a relatively cooler and shortersummer, which had some impact on Dabur Glucose as well. However the brand managed toperform better than the category and ended the year with a gain in market share. DaburGlucose moved away from the generic positioning of 'energy' to a more focused anddifferentiated proposition of 'cooling energy. This proposition was communicated through amega campaign featuring cine star Ajay Devgn.


The Digestives portfolio, which contributes 7.5% to Consumer Care sales, grew by 17.2%in fiscal 2013-14. While Hajmola is one of the major brands in this portfolio, thisbusiness vertical also has a variety of other brands such as Pudin Hara, Hingoli, NatureCare, Sat Isabgol, Lavan Bhaskar Churana and Triphala Churana.

The Hajmola franchise performed well during fiscal 2013-14 and the Anardana variantintroduced at the beginning of the year, emerged as one of the most successful variants inrecent years. Fiscal 2013-14 witnessed brand Hajmola roll out a mega sampling exercisethat helped it reach out to over 30 lacs individuals. Moving away from the earlierstrategy of targeting on-the-go consumption, we decided to focus on in-home sampling. Thisproved to be a major success, helping the brand not only reach out to a large audience butalso generate significant word-of-mouth publicity. A host of new initiatives and specialpacks are being planned to further drive in-home consumption of Hajmola tablets.

Following the successful consolidation of Pudin Hara franchise within the overallDigestives vertical, we saw the Pudin Hara franchise grow by strong double digits with allformats - Pearls, Liquids and Lemon Fizz - performing well. Dabur Pudin Hara undertook aunique initiative in Kanpur -- Dabur Pudin Hara Thandak Ki Chaaon -- under which a 20 feethigh umbrella, with a diameter of 34 feet and 120 kg in weight, was erected in the city.This campaign engaged the residents of Kanpur and sought to establish the cooling &instant relief properties of Pudin Hara. This initiative entered the Limca Book of Recordsas the World's largest Umbrella. Dabur has continued with Ram Kapoor as the brandambassador for Pudin Lemon Fizz and a new campaign is proposed to be launched this summer.Your company is now re-launching the entire Pudin Hara range giving it a common lookacross all formats. This will also help target lookalikes and spurious products. NatureCare, Lavan Bhaskar Churana, Triphala Churana and Sat Isabgol, which are the other brandsin the Digestives portfolio, performed well during fiscal 2013-14.

OTC Products

Dabur's OTC portfolio, which accounts for 7.4% of Consumer Care, offers a variety ofproducts in categories such as Cough & Cold, Men's Health Care, Women's Health Careand Baby Care. This portfolio ended the year 2013-14 with a 10.1% growth.

The Indian over-the-counter or OTC market is growing at a fast pace driven byincreasing reliance on OTC products to address common ailments, increased awareness levelsand greater penetration of OTC products in rural areas.

In this category, it is highly important to build a relationship of trust and comfortwith the customers to ensure loyalty and generate repeat purchase. As a company, Daburmakes efforts to connect with its consumers and develop products that meet their needs andrequirements. The Company has been undertaking a host of initiatives both on-ground andthrough mass media to spread awareness about various OTC products and their benefits,besides executing new visibility campaigns across chemist outlets to reach out toconsumers and enhance the availability of our OTC range.

Dabur's flagship brand in the Baby Care category - Dabur Lal Tail, today controls athird of the baby massage oil market. A new series of campaigns was unveiled this year topropagate the benefits of Dabur Lal Tail and also address some of the queries raised byconsumers. Specially targeted TVCs were made to convey the benefits of key ingredients inthe product, a move that worked well with the brand witnessing an uptick in market shares.As part of a consumer-connect initiative, the product was also sampled with over 300,000new mothers through maternity clinics across India. An encouraging aspect is the fact thegrowth has been all-round with demand from Metro cities growing at a much faster clip,reflecting the fact that a growing number of urban mothers are also opting for Dabur LalTail.

In the Cough & Cold category, Honitus continued to perform well. To drive deeperinto rural India on the back of increased footprint, your Company has introduced a 50mlpack of Honitus cough syrup. In addition, the year marked the re-launch of HonitusLozenges range with a new packaging that aligns it with Honitus syrup. A new Honey Tulsivariant in Honitus lozenges was launched and well received.

A special drive was also undertaken targeting paediatricians and chemists under whichwe initiated doctor detailing of Honitus and Dabur Lal Tail in key cities this year inaddition to in-clinic consumer education.

The new launches and campaigns were supported by on-ground sampling exercise coveringnearly 5 lac kids and consumer activations, which added excitement around the brand. Aspart of its efforts to reach out to kids, Dabur Honitus joined hands with a private FMradio channel and launched a nation-wide hunt to identify child radio-jockeys. Thisinitiative, christened 'Dabur Honitus BIG Junior RJ', was conducted across the country andthe winners got a chance to host on-air shows. The Men's Health Care category tooreported strong growth, led by the flagship energizer brand Shilajit Gold. Riding on thestrength of focused print media advertisements and word-of-mouth publicity, demand forDabur Shilajit Gold grew at a robust pace. The product has been re-launched with a newpack to give it a premium look and feel.

During fiscal 2013-14, Dabur initiated Project CORE (Chemist Outlet and RangeExpansion) to significantly enhance direct reach in the Chemist channel and increase therange of products that are made available through this channel. The project aims to giveDabur the widest reach in the Chemist channel amongst competitors in the OTC segment. Theprogramme has been initiated in top 150 towns, which contribute the largest share of theOTC business in urban India. In these 150 towns the Company's coverage is expected toincrease from 31,385 chemists to around 53,217 chemists in the first phase. The initialphase of rollout is focused in North, East and West regions of the country.

In fiscal 2013-14 special visibility drive was conducted across 5,000-plus chemistretail outlets for Dabur's key OTC brands like Dabur Lal Tail, Dabur Janma Ghunti,Dashmularishta, Ashokatrishta and Shilajit Gold across Chhattisgarh, Madhya Pradesh,Gujarat and Maharashtra. In addition, awareness campaigns and health camps were conductedfor the two women's Health Care brands - Dashmularishta and Ashokarishta Asavs. The newcommunication sought to extend the brands' usage and relevance beyond the post-natalperiod and established them as excellent products for overall rejuvenation.

For the first time, some of smaller emerging brands like Dabur Mahanarayan Tail, DaburShankhpushpi and Dabur Badam Tail were supported with special campaigns in the mediaacross key markets, a move that paid rich dividend and helped these brands grow in strongdouble digits.

Ayurvedic Ethicals

Dabur has a wide range of ethical healthcare products based upon the age-old system ofAyurveda. These products are derived from natural sources and form part of this holistichealthcare system, focusing on all-round well-being. The Ayurvedic Ethicals portfolio,which now contributes 4.2% to Consumer Care, performed well growing by 14.9% during fiscal2013-14.

The entire Ethical & Classical umbrella range, covering 418 products and 623 SKUs,was re-launched this year with a contemporary look and feel. During fiscal 2013-14, therange was promoted aggressively through focused activities at Dabur Ayurvedic Centres, inaddition to special Health Camps and Vaid (Ayurvedic doctors) meets throughout the year.

In all, 500 Health Camps were organized across the country during fiscal 2013-14, whichhelped us reach out to more than 3 lac consumers. In addition, a large number of doctormeets were organized and Dabur initiated visits to nine medical colleges in Delhi,Varanasi, Handia and Amritsar to conduct special activations aimed at educating the futureAyurvedic medical professionals about the Dabur range of ethical and classical medicines.

A mega visibility drive was launched under which in-clinic communication andinformation guides for consumers were placed at outlets, besides counter branding wasenhanced at 3,000 key Ayurvedic outlets across the country. Your Company has also put inplace an initiative to educate the people manning counters at key Ayurvedic outlets aboutthe Dabur range.

Engagement programmes were conducted for Vaids throughout the year and nearly 700practising Vaids and key opinion leaders visited our Sahibabad unit, a move that helpedenhance Dabur's brand equity and perception amongst Ayurvedic practitioners. Specialinitiatives were also run on the digital medium to create more awareness about ourproducts and brands.

The year saw Dabur expand its Ethical range with the introduction of two new products-- Kanak Makara Dwaj and Taruni Kusumakar Churna.

As part of its plans to propagate the benefits of Ayurveda, Dabur has launched India'sfirst Ayurvedic Medical Journal, 'Ayurveda Samvad'. This quarterly journal, first of itskind in India, will cover detailed information about the various clinical trials beingconducted on Ayurvedic medicines. It is a part of Dabur's constant endeavour to propagatemessages on the Ayurvedic way of life to manage health and diseases. It will also featurearticles covering original scientific studies in the field of Ayurvedic medicines withdirect clinical significance, addressing health care issues and public health policy.


The home and personal care market in India has been growing at a steady pace year onyear, driven by increasing per capita income, rapid urbanization and the risingaspirations among young Indians. While personal grooming products have largely beentargeting the discerning female consumer, beauty and personal care products are nowincreasingly becoming gender-specific. There is a rising aspiration among Indian men tolook better groomed and this, interestingly, is not restricted to big cities only but isvisible in smaller towns too. We have been responding to these emerging trends in themarket with offerings to cater to the beauty and grooming needs of every section of thesociety.

The Home & Personal Care (HPC) vertical in Dabur's Consumer Care Business coverscategories like Hair Care (Hair Oils and Shampoos), Oral Care (toothpastes andtoothpowder) and Skin & Body Care, besides a host of Home Care products like AirFresheners, Mosquito Repellents and Toilet Cleaners. Almost all of these categories havebeen witnessing high levels of competitive intensity in the recent years in a bid tocapture the consumer's mind space.

Dabur, on the strength of its well established brands and a highly differentiatedproduct range, has performed well in spite of stiff competition and ended the year withstrong volume-led growth. We believe that consumer satisfaction is the single mostimportant measure of success for us and the increasing demand for our products validatesthe trust that consumers place in them.

Hair Care

Indian consumers consider hair care as an integral part of their daily beauty andgrooming regime. As the incidence of hair styling grows in the country, the fear ofchemicals harming the hair has also emerged as an area of great concern. Dabur, with itsportfolio of natural hair care solutions, has been addressing this concern and providesthe most-preferred natural hair care brands in the country today.

Our Hair Care portfolio comprises a range of natural hair oils and shampoos. This rangehas now been extended with the launch of natural hair conditioners. During fiscal 2013-14,Dabur's Hair Care portfolio grew by 7.1% and now contributes to 28.1% of the Consumer CareBusiness.

After few years of reporting strong double-digit growth, the Hair Oil industry showedsome signs of weakening in the later part of fiscal 2013-14. This slowdown was prevalentacross all segments of the Hair Oil market with categories like coconut hair oils,perfumed hair oils, light hair oils and cooling hair oils slowing down.

Even during these trying times, Dabur's key hair oil brands -Dabur Amla Hair Oil andthe recently-launched Dabur Almond Hair Oil performed well. Our flagship hair oil brandDabur Amla Hair Oil reported good volume growth during the year and further cemented itsposition as the largest and most preferred perfumed hair oil brand in the country with aconsumer base of over 60 million users.

The company continued to move forward on its two-pronged strategy with Dabur Amla,targeting the mustard oil users in the Hindi belt on one hand and communicating thebenefit of Dabur Amla to consumers in South India on the other. To drive home this messagein South India, we organized a regional beauty contest, 'Hunt for Black Beautiful Hair'and joined hands with a leading private FM radio station in Tamil Nadu to host a megainitiative that helped us reach out to over 3 lac women in the state. These initiativeshave helped build a strong base in South India for Dabur Amla hair Oil and this region isreporting strong growth for the brand.

Within just two years of its launch, Dabur Almond Hair Oil has emerged as an importantplayer in the light hair oil category with its unique hair nutrition proposition helpinggain consumer mind share. This brand was rated as a Breakthrough Innovation Winner andranked amongst the Most Innovative and Successful New Launches by The Economic Times-BrandEquity in March, 2014. In order to generate further trials for Dabur Almond in ruralpockets, the Company introduced two new SKUs - a 3ml sachet for Re 1 and a 30ml pack forRs. 15 - which further drove demand for this brand.

Dabur's coconut hair oil brand, Vatika Enriched Coconut Hair Oil, remained under somepressure as the coconut hair oil category witnessed a decline. Your Company continued toinvest behind the brand with special testimonial-led campaigns and consumer activations inkey markets to establish Vatika as the preferred coconut hair oil brand among the youth.

The year 2013-14 marked the expansion of the Vatika hair oil portfolio with theintroduction of two new products - the first was a new hair oil fortified with thegoodness of Hibiscus, under the brand Vatika. This is the first-ever hair care product inIndia that is enriched with Hibiscus, traditionally known to be effective in combatinghair loss and dandruff. This was initially launched in South India and given theencouraging response from consumers, it has now been introduced in other geographies too.Southern cine star Samantha Prabhu is the face of the new Vatika Enriched Coconut hair oilwith Hibiscus.

This was followed by launch of Vatika Olive Enriched Hair Oil, which furtherstrengthened our presence in the perfumed light hair oil market. This is the first everOlive hair oil in the country enriched with Almond Proteins and Aloe Vera. The new VatikaOlive Enriched Hair Oil comes with the proposition of extra hair-fall control and nonsticky, silky, bouncy hair.

Going forward, your Company plans to expand its hair oils portfolio with theintroduction of specialized products to cater to the emerging hair care needs of itsconsumers.

Dabur's shampoo range under the brand Vatika continued to perform well in fiscal2013-14 driven by the herbal proposition and focused marketing mix. During the year, Daburexpanded the Vatika shampoo portfolio with the launch of Vatika Premium Naturals Shampoowith Hibiscus, Reetha and Olive Conditioning to further enhance its share in thiscategory.

Your Company also introduced Vatika conditioners during the year, in a limited scale.The product is currently being sampled with consumers as a free promotion along withVatika shampoos.

Skin & Body Care

The personal grooming market in India has been witnessing good growth at both ends ofthe age bracket. On the one hand, a growing population of young Indians is entering thecategory spurred by greater awareness and rapid growth of digital media. On the otherhand, the middle aged and older population is also seeking specialised products to lookyounger and delay the onset of ageing.

The Skin & Body Care business for Dabur comprises two key brands - Fem (forfairness bleaches and hair removing creams) and Gulabari (for Rose-based Skin Careproducts). Your Company has been offering skin solutions under these two brands to meetthese growing need gaps in the market, which has helped Dabur's Skin & Body Carebusiness end the year with a 13.2% growth. A number of innovative consumer activationswere rolled out during the year, which helped spread awareness about Dabur's beauty brandsand also build a long-term emotional connection between the brands and the customers.

During the year, Dabur re-launched the entire Fem facial bleach portfolio as FemFairness Naturals. This all new skin fairness range has no added ammonia and is fortifiedwith natural ingredients like Saffron, Milk and Vitamin E, making the entire usageexperience healthy and pleasant.

The new Fem Fairness Naturals range has 4 products under it - Fem Fairness NaturalsSaffron Creme Bleach for fair skin, Fem Fairness Naturals Pearl for darker skin, FemFairness Naturals Gold Bleach for special occasions and Fem Turmeric Herbal Bleach pricedvery affordably in the range of Rs. 25 to Rs. 34 for a month's fairness benefit. Fem alsobecame the first fairness bleach brand to be dermatologically tested to be safe on skin.

Innovation has always been a key strength of Dabur. It is our ever growing focus onR&D that helps us offer unique solutions to the consumer needs and another example ofour innovation capability was the launch of the a unique gel based facial bleach --OxyLife Gel Bleach with Aloe Vera. It is the first bleach that is packed with the goodnessof Oxygen and Aloe Vera together, making it mild and gentle for the skin.

To meet the growing demand for male grooming products, Dabur launched OxyLife Men CremeBleach and a specialised male professional facial bleach. This new male facial bleach isan Oxygen-rich formula specially developed for men's skin. It removes month-long dullnessin just 15 minutes. Derived from Sea Salts, its powder activator acts as a detoxifier withits exfoliation properties. All the new introductions have been very well received byconsumers.

Taking brand Fem's association with natural glow and beauty to the consumer activationplatform, your Company organized a beauty pageant across North India, offering young womena platform to showcase their beauty and enter the mainstream world of modelling. Theinitiative was a big hit across the region and Dabur plans to roll it out on a much largerscale in fiscal 2014-15.

Tapping the rural potential, Dabur has now introduced Fem facial bleaches in sachets, afirst-ever in the category. Fem sachets are available at Rs. 12 (Fem Turmeric) and Rs. 15(Fem Gold). Dabur has also been aggressively working on enhancing and empowering its salonnetwork by extending its partnerships across the country and creating products speciallyaimed at the professional beauty care market. Catering to this section's needs, Fem haslaunched new professional packs especially for parlours.

These initiatives helped brand Fem perform well and gain market share.

Gulabari, the second major brand in our Skin Care portfolio, saw range expansion withthe launch of Dabur Gulabari Pearl Fairness Moisturising Lotion. Another addition to therange was Dabur Gulabari Facepack, which also received encouraging response. The motherbrand Gulabari continued to take forward its communication campaign on multiple ways touse Dabur Gulabari Rose Water. We are now running a new campaign that seeks to deepen ourengagement with consumers by seeking their ideas and views. Through this initiative, wehave asked consumers to share their beauty formulae that include Dabur Gulabari as a keyingredient. We have already received close to 10,000 ways of using Dabur Gulabari and someof the best ideas would be taken into account to add more formats to the brand.

Oral Care

Dabur's Oral Care portfolio grew by 13.8% during fiscal 2013-14, and now accounts for17.0% of Consumer Care Business. The portfolio comprises two key product categories -toothpaste and toothpowder.

Dabur's toothpaste portfolio grew by 16.4% during the fiscal despite heightenedcompetitive intensity and entry of new players. Dabur Red Paste, with its stronglydifferentiated positioning, continues to be the key growth driver for Dabur and registeredstrong gains in market share. It crossed the Rs. 200-crore turnover mark during the year,becoming one of our fastest brands to achieve this landmark. During the year, the brandlaunched a mega exchange offer, the biggest-ever by any brand, which helped generate freshtrials and win a whole new set of consumers. The Company received over half a millionentries for this exchange offer.

In addition to the sustained media activity on the brand, Dabur also rolled out aseries of school contact programmes to increase oral hygiene awareness among childrenacross the country. Dental camps were also organized across various schools to improve thedental hygiene levels among school kids in India and educate them about best dental carepractices. This initiative covered the entire spectrum -- from the most modern urbanschools to the local rural schools.

The year also saw Dabur re-launch its premium toothpaste brand Meswak with a superiorformulation. Our economy segment brand Babool, riding on sustained media support, arrestedthe decline and registered a recovery during the year.

Dabur's toothpowder portfolio under the brand Dabur Lal Dant Manjan reported steadydemand, riding on rural activation programmes that sought to convert non-dentifrice usersto toothpowder.

Home Care

Dabur's Home Care portfolio continued on a strong growth trajectory in fiscal 2013-14and ended the year with 19.8% growth. This was driven by new launches, focused mediaactivity and high-decibel consumer-connect initiatives across product categories. Theportfolio, which covers Air Fresheners, Mosquito Repellents and Toilet Cleaners, todaycomprises 7.3% of the Consumer Care Business at Dabur.

With growing urbanisation and a rise in the number of dual income households, consumersare increasingly adopting lifestyle products such as air fresheners and hard surfacecleaners resulting in strong growth for the Home Care category in India. The demand forHome Care products is not limited to urban markets as even rural consumers areincreasingly switching to branded products, thanks mainly to an increase indisposable incomes in rural India.

Odonil, Dabur's leading home and air freshening brand, emerged as the key growth driverfor this category, in the face of stiff competition from branded and private labeloperators on one hand and unorganized sector on the other. With the launch of new formatslike Gels and One-Touch Sprays, Odonil has now established itself as a complete airfreshening expert with a variety of air care solutions.

The Odonil blocks format was re-launched in an improved avatar offering 2x fragrance.The brand signed Cine Star Madhuri Dixit as its new brand ambassador for promoting the newOdonil 2x range, reinforcing the transformative effect of fragrance on our ambience aswell as on our state of mind.

The mosquito repellent brand Odomos performed well during fiscal 2013-14, riding onaggressive education and community service initiatives across markets. The brand also tookforward its school contact programme that sought to educate kids about the variousmosquito-borne diseases and ways to protect themselves from mosquito bite. We are nowpreparing to expand our presence in this category with the launch of a new range of modernformats.

The toilet cleaner brand Sanifresh also performed well during the year, driven by animproved formulation and sustained media campaign.


As consumer preferences shift towards a healthier lifestyle, thanks to growingawareness and a wider global exposure, food habits too are showing a marked change. Peoplein urban India are increasingly looking at wholesome and convenient solutions that providethe required nutrition. This has provided a fillip to the packaged fruit-based beverageand juice segment, a category that Dabur operates in with its brands Real and Real Activ.To cater to this growing need, Dabur has been expanding its fruit-based beverage andjuices portfolio with the introduction of new variants and products that are nutritionalyet convenient.

Dabur's Foods segment had another fruitful year with strong growth of 19.7%. The Foodsbusiness now contributes 11.2% to consolidated sales. What was even more encouraging wasthe fact that the growth was not restricted to traditional juice variants, but some of ourexotic variants were also big growth drivers. Continuous innovation and focus on consumerinsights has resulted in doubling of sales of this vertical in last four years. Realcrossed the US$ 100 million mark to become the biggest Dabur brand in the country, withover 100 million litres of juice sold during the year.

In addition to fruit juices, Dabur's Foods business includes culinary pastes and pureesunder the brand Hommade.

Dabur continued to introduce new juice variants, besides entering new fruit-juice-basedfunctional food categories to drive demand and also generate excitement in the market. Theyear saw Dabur introduce superfruit juices in India under a new sub-brand Real SUPAFruits,in addition to test marketing fruit juice-based drinking yoghurts under the brand RealActiv and fruit milk shakes under the brand Real. This summer also marked the launch of100% tender coconut water under the brand Real Activ in north India.

The SUPAFruits range has been launched with two variants - Strawberry-Plum and GojiBerry-Pink Guava. Superfruits equal super nutrition as they are packed with antioxidants,vitamins, minerals, and other fruit nutrients that help promote overall health.

Dabur continued to invest behind its food brands with special campaigns and a host ofconsumer initiatives, including participation in popular trade fairs to reach out to alarge number of consumers and sample the new variants. Real's special occasion gift packs,initially offered during Rakhi and Diwali, have become hugely popular. Responding toconsumer demand, we have now started offering similar specially designed gift packs forother occasions and festivals such as Baisakhi, Lohri (combo pack of Real juices withRevri), Eid (Real juices with dates) and Christmas (Real plum juice combos) etc. This hasadded to the excitement around the brand and indicates its growing popularity. Variousconsumer activations were also done to reach consumers directly. Among these activations,'Real Run for Children' set a new Limca Book Record with children signing 5,000 postcardsaddressed to the President of India demanding Right to Education for underprivilegedchildren.

During the festive season, covering Rakhi and Diwali, Real launched a unique signaturecampaign, titled 'Dil se Dua', wherein the brand sought support for underprivilegedchildren. Dabur encouraged people to sign on a pledge to support the kids and against eachsignature, Dabur committed to give one pack of Real fruit beverage to a needy kid. YourCompany also ran a special initiative at Durga Puja pandals in Delhi and Kolkata underwhich packs of Real fruit juice were served at the pandals as part of the Pujacelebrations.

Dabur also embarked on a mega campaign to drive awareness in South India with speciallycreated DTH campaigns, TVCs, outdoor hoardings, bus shelters and Modern Trade branding. Asa result, our imagery scores have improved a lot in South India, driving growth in theregion. A branding and placement initiative was also launched at Modern Trade outletsacross the county to create stronger relevance for the consumer. Under this, Real fruitjuice packs and Hommade culinary pastes were placed at fruit & vegetable counters atthese outlets, which helped build category connect.


Dabur's International Business continued on the strong growth trajectory growing by22.3% to Rs. 2,310.8 crores in fiscal 201314. The International Business now contributes32.4% to consolidated sales. Our major international markets are Middle East, Africa, Asia(ex-India), Americas and Europe.

Dabur's International Business started as an exports business in the early 1980s forthe Indian diaspora in the Middle East. Gradually the business expanded and started tocater to the local population in the Middle East and neighbouring markets as well. Drivenby our understanding of consumer behavior which we had developed over the years, westarted customizing our product offerings for the local population. Our products inInternational Business are largely based on herbal and natural proposition which offersstrong differentiation as compared to products offered by other local and global consumercompanies in these markets.

Our International Business expansion strategy has largely been organic and our twoacquisitions - Namaste Laboratories LLC and Hobi Group happened after we had established asubstantial base in the International Business.

Localised supply chains have been the cornerstone of Dabur's expansion strategy in theInternational Business. To this effect, we have set up manufacturing facilities in UAE,Egypt, Nigeria, Turkey, Nepal, Bangladesh and Sri Lanka.

The pace of innovation has been very high in the International Business and incontinuation of this strategy, fiscal 2013-14 witnessed several new product launches inHair Care and Skin Care categories.

Middle East

Middle East, is our largest international geography by sales, comprising 28% ofInternational Business. Our biggest markets in Middle East is GCC (Gulf Co-operativeCouncil), particularly KSA (Kingdom of Saudi Arabia), UAE, Kuwait and Oman. In thisregion, we operate in categories such as Hair Oils, Hair Creams, Shampoos, Hamam Zaith,Hair Gels and other Hair Care and Skin Care products. The region reported strong doubledigit growth during fiscal 2013-14.

Within GCC, Saudi Arabia, which is one of our key markets, continued to perform welland witnessed an uptick in market shares. We maintained our leadership position in theHair Oils category in Saudi Arabia with market shares increasing to 69% v/s 66% last year.Similarly in Hair Creams, market shares increased to 35% v/s 29.5% last year and wecontinued to be the dominant player in Saudi Arabia. In UAE, our Hair Oils market shareswere stable at 23% and we maintained our leadership position in Hair Creams with marketshares increasing to 33% v/s 29% last year.

The region witnessed a flurry of new product activity comprising launch of Vatika HairMayonnaise, Vatika Brillantine Shine, Vatika Gel Creams, Vatika Ingredient Range ofShampoos, Amla range of Shampoos and Conditioners, Amla Leave-On Oils, Fem Gold HairRemoving Cream and Fem Halawa. In addition, Vatika garnered a space in the Hair Colorscategory by successfully extending Vatika Naturals Hair Color Creme in many of ourinternational markets.


Africa comprises 21% of our International Business. With a population of around 1billion people, Africa offers substantial growth opportunities in the long run for theconsumer sector. As per African Development Bank, some of the key drivers for consumersector growth in Africa are:

Population growth and urbanization: The African population is growing at 2% perannum. The continent's total population is therefore projected to increase by 50% from 1billion in 2010 to over 2 billion by 2060. At the same time, the percentage of Africansliving in cities is expected to increase to 50% in 2030 from 37% in 2009. Together, thesetwo factors are expected to foster the number of new consumers entering the Africanmarket.

Poverty reduction and the emergence of the middle

class: With high levels of economic growth across the continent, poverty levels asa percentage of total population are forecast to decline to 20% in 2020 from 48% in 2008.In turn, the "middle class" (i.e., people earning between USD 2 and USD 20 aday, in real terms) is expanding in Africa. The combined effect of poverty reduction andmiddle-class expansion provides huge potential for greater spending in the consumer goodsmarket.

Though there is a long term potential for consumer sector growth in Africa, there aresome challenges such as highly heterogeneous and segmented markets and underdevelopedinfrastructure and distribution channels. Our task is to overcome these challenges andgrow in this high potential continent.

At present, our key markets in Africa are Egypt and Nigeria and these two marketstogether comprise 12% of our International Business. In spite of political instabilitythroughout the year, Dabur's business in Egypt performed well in fiscal 2013-14. Wemaintained our leadership position in Hair Oils and our market share increasedsubstantially to 62% as compared to 53% last year. In Hair Creams as well, we maintainedour leadership position with a 56% market share. In Nigeria, though there were minorupheavals during the year, our toothpaste business witnessed stable market shares. Fiscal2013-14 marked an entry into Home Care by Dabur in the Nigerian Market with the launch ofSaniFresh.

In addition the North African region has emerged as a high growth market for our rangeof Hair Care and Oral Care products. In order to cater to growing demand in this region anew wholly owned subsidiary - Dabur Tunisie in Tunisia was incorporated and there areplans to set up a manufacturing facility at Tunisia to cater to the local and neighbouringmarkets.

Namaste Laboratories LLC which we had acquired in fiscal 201011 is a key pillar of ourAfrica expansion strategy Namaste's product suite comprising range of Hair Straighteningand Relaxing products along with products such as Olive Oil based Shampoos, Conditionersand Hair nourishment products are helping us in targeting a bigger portion of the AfricanHair Care market. In order to capture these opportunities, Dabur has established adedicated business unit for Sub Saharan Africa, tasked with further enhancing our presencein Africa. To optimise the supply chain for Namaste's products in Africa, manufacturing ofNamaste products in our Ras-al-Khaimah facility in UAE has commenced and addition ofanother line at our existing manufacturing facility in Nigeria is under consideration.Further, local manufacturing is being considered in South Africa, thereby ensuring thatDabur continues to tap into the growing potential of Africa. During the year, we continuedto streamline distribution networks in these markets in order to extend the reach andavailability of Namaste products which led to strong double digit growth for Namasteproducts in Africa.

Asia (Ex-India)

Asia (ex-India) contributes 16% to our International Business. Our key markets in thisregion are Nepal, Bangladesh and Pakistan.

Nepal is our key market in Asia (ex-India) and comprises 7% of International Business .The year witnessed new launches such as Hajmola Anardana, Dabur Herbal Toothpaste, DaburSalt Toothpaste, Real Supafruits, Odonil Gel and Aerosols. Real Fruit Juice, which is akey seller in the local Nepal market, was steady in spite of increase in competitiveintensity. In addition, we continued with our efforts to strengthen the distributionnetwork and increase availability of our products in retail channels .

Bangladesh performed well with 26% growth in spite of political disturbances in thecountry. We commissioned a facility in Bangladesh for manufacturing a range of Hair Oils,Shampoos, Toothpastes and Dabur Honey for the local market. Some of the new launches infiscal 2013-14 were Vatika Naturals Hair Fall Control Shampoo, Vatika Naturals Nourish& Protect Shampoo, Real juices and Gulabari Pearl Fairness Moisturizer.

Pakistan performed well and grew by 39% in fiscal 2013 -14. The growth was mainly ledby Hajmola followed by other brands like Dabur Amla, Vatika Shampoo and Vatika Hair Oils.


Our business in the Americas contributes 22% to the International Business. Dabur'spresence in the Americas is largely an outcome of the acquisition of Namaste LaboratoriesLLC in fiscal 2010-11, which has Hair Straightening, Relaxing and Nourishment products forpeople of African origin living in the U.S. The strategic rationale for acquiring NamasteLaboratories LLC was to leverage this product suite to further expand our business inAfrica while continuing to grow its market share in the U.S.

Namaste's performance in the U.S. was stable in fiscal 2013-14, post the rebrandingexercise which was undertaken in fiscal 2012-13. The rebranding exercise in which we hadrebranded Namaste's 'Organic Root Stimulator' brand as 'ORS', had caused disruptions inbusiness during fiscal 2012-13 due to the transition and re-launch of the entireportfolio. However the business posted a steady recovery during 2013-14.

In fiscal 2012-13, we had launched Curls Unleashed range of products in which were onthe natural platform and made with natural ingredients like safflower oil, sweet almondoil and shea butter. In continuation with our focus on the naturals platform, a newthree-step Straightening and Strengthening Treatment by HAIRepair™ was introduced infiscal 2013-14 which has been formulated with natural ingredients like aloe vera, coconutand wheat protein and the treatment helps the hair become nourished, shiny and luxuriouslysoft.

During fiscal 2013-14, the celebrity stylist DaRico Jackson was taken as the brandambassador to the HAIRepair™ line of products. Referenced as the "Go-to-GlamGuru", Jackson's talents have been used by celebrities such as Nia Long, KeyshiaCole, Tasha Smith, Teyonah Parris, and Kelly Price just to name a few.

At present, Namaste derives 68% of its revenues from the U.S. and the rest from marketslike Africa, Europe, Caribbean and Middle East.

In addition to the Namaste business, Dabur also sells some of its own products in theU.S. to the ethnic Indian community and has a small private label Oral Care businesscatering to institutional buyers. This business witnessed steady growth during the year.

Europe (Including Turkey)

Europe comprises 13% of the International Business with Turkey being the key market.Turkey-based Hobi Group, which we had acquired in fiscal 2010-11, performed well duringthe year, and now contributes 9% to International Business sales. Fiscal 2013-14 saw thecontinued integration of markets and processes for Hobi Group and Dabur with the Gulf andAfrican regions performing well for Hobi products. Some of the Hobi products such as hairgels, wet wipes and hand wash received a good response in the MENA region. As part of theintegration process to unlock synergies between Dabur and Hobi, Fem brand from Dabur'sportfolio was launched in Turkey in 2012- 13 and it continued to elicit positive responsein fiscal 2013- 14. In view of the successful introduction of Fem in Turkey, otherproducts from Dabur's portfolio are likely to be added going ahead.

Besides Turkey, Dabur has some presence in U.K. and other parts of Europe selling itsrange of Personal Care products largely to the Indian diaspora. Namaste business also hassome footprint in Europe which performed well.


With millions of consumers interacting with each other in the virtual world, consumingcontent online and even making purchase decisions online, the digital space has become abig marketplace. Today, print and television campaigns are not only leading to a sale butalso resulting in an Internet search as consumers are seeking to build awareness andexchange notes with friends and peers.

Dabur believes that content is key in digital communication. Content that is engagingand builds dialogue and engagement with the consumers is what drives any digital brandcampaign. Dabur has invested in creating content warehouse for its brands bydeveloping 4 new interactive websites addressing Oral Care, Skin Care, Hair Care andHealth Care categories. The portal - is aimed at connecting andcreating a network of medical professionals, both Ayurvedic and Allopathic anddisseminating information regarding various Ayurvedic and Health Care products from Dabur.This portal also provides medical professionals an easy access to the various clinical andpre-clinical trials/studies conducted on various products and medicines from Dabur. Wealready have 28,000 doctors enrolled on this portal.

Our other portal, is an effort to reach out to consumers who areincreasingly taking to the digital world to seek information about not just general healthand wellness, but also consultation and remedies for common ailments. An increasing trendis fast developing in India where consumers are seeking solutions to ailments and lookingfor scientific information on healthcare issues on the Internet. Similarly, has been developed with the intent to connect with digitallyactive consumers seeking advice on beauty products and beauty tips, seeks to regularly interact with consumers, addressing their oralhealth queries and disseminating information regarding oral hygiene besides offering oralcare solutions.

Each of these portals are packed with content like Do-It-Yourself videos, naturalbeauty and healthcare tips, recipes, customized contents etc that help connect,communicate and engage with the consumers. Youtube is another digital forum that Daburuses to engage and communicate with its consumers.

Apart from executing regular visibility and exposure building initiatives for brandslike Odonil, Real fruit beverages etc. by running pre-rolls on Youtube, your Company hasalso conducted an impact building exercise for Dabur Red Paste by taking up a Youtubemasthead which generated 8.7 million impressions within just 24 hours. Prior to this, asimilar initiative was conducted for Real to build consumer awareness on the Pomegranatevariant of the brand, which also generated similar results. Special mocktail recipes usingReal juices were are also shared with consumers through this channel.

Dabur has also been effectively using social media like Facebook, Twitter and LinkedInto not just build an emotional bond with its consumers but also to disseminate informationabout its products. Facebook pages have been created for almost every single brand andeach of them have a huge fan following. The brands Vatika, Real and Dabur Chywanprash havebeen able to reach out to millions of consumers through these initiatives.


Dabur is committed to the Health & Well being of every household in the country andour highly motivated sales team has been helping us deliver this promise to every nook andcorner of the country. Dabur products are available in more than 5 million outlets acrossthe country making it amongst the most widely distributed FMCG companies in India.

Project CORE

Health Care is central to our future growth plans. With increasing health awareness,OTC products are gaining consumer preference and offer enormous growth potential andopportunity.

During the year, Dabur initiated a programme titled Project CORE (Chemist Outlet andRange Expansion) to significantly enhance our direct reach in the chemist channel andincrease the range of products that are made available through this channel. The projectaims to give Dabur the widest reach in the chemist channel amongst competitors in the OTCsegment.

The programme has been initiated in top 150 towns, which contribute the largest shareof the OTC business in urban India. In these 150 towns the Company's coverage is expectedto increase from 31,385 chemists to 53,217 chemists in the first phase. The initial phaseof rollout is focused in North, East and West regions of the country.

Detailed assessment of current chemist coverage was done for all markets across thecountry, following which distribution objectives were defined for each town, basis thecharacteristics of each town cluster.

The task in urban markets was to enhance Chemist coverage per lac population andincrease the range availability. On the other hand, the task in the rural terrain was tostrengthen the distribution network for overall Health Care portfolio. A specialisedapproach was also put in place to leverage the potential of Specialty Pharma counterswithin Organized Retail, which is also developing as a key format with dedicated fieldresources, called Health Care Associates, have been deployed to service chemists in thetop urban markets. They have been provided with hand-held devices and enabling toolsintegrated to the overall technology platform of Sales@Dabur. The requirements of channelspecific capability building have been addressed through special training modules and asupervisory layer to guide them through the job. While the programme has already beenrolled out in parts of urban India, the rural rollout is scheduled for fiscal 2014-15.

The coverage expansion initiatives have been supplemented with focused investments onbrand visibility and loyalty programme for the channel.

Project Double

Rural India accounts for nearly 50% of the domestic FMCG sales for Dabur. During2012-13 Your Company had launched Project Double in order to increase its coverage of therural markets. As a result of this expansion, Dabur had doubled its direct reach to over30,091 villages with local distribution points and field resources in place. During fiscal2013-14 the Company further expanded its coverage to 38,250 villages (refer Fig. 11) andcontinued to invest behind IT enablement and increasing productivity of its sales force.This initiative helped the Company drive sales in rural India as well as expand itsproduct portfolio by catering to increasing demand for products such as Skin Care and HomeCare.

This distribution expansion initiative has been supplemented through a series offocused activations that sought to engage rural consumers whose purchase decisions areguided by the quality-value paradigms and stress on functionality rather than frills.Direct engagement with consumers through participation in village Haats and Melas helpedus reach out to a large audience and gave the consumers a chance to touch, feel andexperience various Dabur products.

Modern Trade

Modern Trade plays a key role in the retail landscape of this country today andcontributes close to 9-10% of the FMCG industry sales. The key players in this market havealso sharply defined not just their strategy, but also their choice of formats andbusiness models. Given this revamp, Modern Trade penetration is rapidly increasing in thecountry with their footprint now extending to smaller markets too. This channel is nowdeveloping specialty formats catering to the specific needs of shoppers. In addition,Cash-and-Carry is emerging as an important format with presence across key states in thecountry.

Dabur has also reconfigured its approach to Modern Trade with a focus on greatercollaboration with its customers. Under this, we have developed a key account managementstructure with a focus on improving engagement levels and organizing the sales systemaligned to account level focus in servicing.

In addition, a greater impetus was put on high quality in-store execution. Largeinvestments were made in augmenting the quality of merchandising effort to improve thein-store execution capability. To enable dynamic tracking and measurement of the impact,hand-held devices and relevant technology were provided to the teams. Category andbrand-level opportunities were identified and leveraged, resulting in share gains acrosscategories during the year. Thanks to these measures, sales through this channel reportedgood growth and share gains. Dabur was awarded the 'Best Supplier Award' for the year fromone of the largest customers in Modern Trade.

Leveraging IT - Project DISHA

Dabur places enormous confidence on the quality of systems and processes that enablesthe sales team to focus their energies on the core activity of selling, and that too withgreater efficiency. Substantial investments have been made on Information Technology insales at Dabur during the last financial year. We strongly believe that IT candramatically enhance efficiencies and positively impact our performance.

All the IT initiatives in Sales@Dabur are anchored under Project DISHA and are aimed toachieve three key objectives:

• For the customers, improve the ease of doing business with Dabur

• Improving the quality and impact of field sales efficiencies

• Converting data into actionable information for the sales team

The stockist transaction software Drishti today covers around 80% of urban business,gathering real time market information. Dynamic dashboards have been created to enablestockists and sales teams to focus their actions in market place across various dimensionsof operational efficiencies.

The comprehensive IT-enabled Order Capture System was made available to all stockistslinked to Drishti. The system proactively alerts the stockists with suggested orders atSKU levels, helping them manage the ordering process by exceptions, releasing time tofocus in the market. The creation of centralized order processing cells have also enhancedthe speed of processing and eliminated processing errors.


Dabur operates its specialised beauty retail business under the brand 'NewU'. Thisbusiness is operated under Dabur's wholly-owned subsidiary H&B Stores Ltd. The NewUstores merchandise a wide range of beauty care products and are mainly located in premiumhigh footfall malls. These stores offer a unique blend of domestic and internationalbrands covering a vast variety of colour cosmetics, fragrances, skin care, personal careand beauty and fashion accessories.

At the end of fiscal 2013-14, NewU's retail footprint stood at 46 stores across India,covering not only metro cities, but also Tier-2 cities. A majority of the NewU stores arelocated in the Delhi-NCR region. The business witnessed sales growth of 19.6% during theyear as nearly all stores reported a good increase in sales with an enhanced andstreamlined product range.

A number of new international beauty brands were introduced through the NewU storenetwork during the year. These include Rimmel Colour Cosmetics, Sally Hansen, Kappa andBeverly Hill Polo Club fragrances. The beauty and fashion accessories range has also beenenhanced. In addition, NewU has now launched its our own Private Label - ZENSUAL - whichincludes a range of beauty products in Body Lotion, Body Washes, Make-Up Remover and LipBalms categories. We also increased our NewU nail enamel range and strengthened our BeautyFormulas portfolio during the year.

NewU continued its joint marketing initiatives and in-store activations with top vendorpartners which boosted sales. During the year, we undertook 425 in-store makeover sessionsfor consumers. Our customer loyalty program, AdvantageU, now has a database of over 8 lacmembers. During the year, NewU also extended its ecommerce footprint and has now puttogether an alliance with Amazon.


At Dabur, we believe that operations hold the key to gaining a competitive advantageand maintaining a high customer satisfaction rate. Dabur believes in continually strivingfor higher and better levels of quality not just in its products, but also in itsoperations, without losing sight of its commitments towards the environment andcommunities where it operates. Details of our various environment and community-ledinitiatives have been provided in the Business Responsibility Report section.

A host of initiatives were also taken towards new product and pack introductions,improve safety awareness and quality improvement. Safety, for us, is non-negotiable. Byworking across the entire value chain - from sourcing, manufacturing and logistics throughto innovation, advertising and promotions and pricing, we can use our scale to gainefficiencies, reach new markets and meet our sustainability targets.

Two Dabur brands -- Vatika Shampoo and Real Diwali Gift Pack - have bagged the AsiaStarinternational packaging award in fiscal 2013-14. AsiaStar is the only regional packagingaward anywhere in Asia, and is also known as 'The Packaging Oscar of Asia'.

Domestic Manufacturing

Dabur today has manufacturing plants spread across 12 locations in India - Baddi(Himachal Pradesh), Pantnagar (Uttaranchal), Sahibabad (Uttar Pradesh), Jammu, Silvassa,Nasik, Alwar, Katni, Narendrapur, Pithampur, Newai (Rajasthan), and Siliguri (WestBengal). Nearly 90% of our products are manufactured at company-owned units with thebalance being produced at third party facilities.

Various energy conservation techniques have been initiated and successfully implementedacross all domestic manufacturing units. These initiatives have helped us reduce fuelusage at our manufacturing plants by 25% during the year, and this has come in spite of anincrease in production.

We are now taking our energy conservation initiatives to the next level and havealready initiated the process of adopting renewable solar energy at our Corporate Officein Ghaziabad, besides evaluating the same for two unit clusters in Baddi and Pantnagar.

Fiscal 2013-14 saw Dabur being honoured with a number of operational excellence awards.Dabur's Greenfield unit at Baddi was awarded the Silver Greentech Safety award in the FMCGsector. This award, recognizes exemplary operations, systems and the evidence of theirimpact to business vitality. Besides, Dabur's Pantnagar Unit was awarded the Runners-Upprize in the Manufacturing Today Award 2013 - Excellence in Technology. This awardrecognized the Company's efforts to drive various technological initiatives like AutoSleeving machine, 33KV dedicated express feeder, Solar street lights, BHRS (Boiler Blowdown & Heat Recovery System) etc, which have together contributed in reducing themanufacturing overheads at the plant.

Dabur was also awarded the Best in Class Manufacturing Excellence Award for the yearand the Workplace Safety & Health Innovation Award for 2014. The ManufacturingExcellence Award is given to a company which has transformed the manufacturing processesand systems positively, while reducing costs and enhancing productivity at a manufacturingplant. These awards are a result of the continual efforts being put in by Dabur to improveits Operations, which include introducing new systems like TPM, Six Sigma, 5S, Leanmanufacturing, Energy aving projects, upgrading technology, improving outputs and alsoimproving safety standards.

International Business Manufacturing

Localised manufacturing and supply chain have been an important aspect of ourInternational Business strategy. We have manufacturing facilities in UAE, Turkey, Egypt,Nigeria, Nepal, Bangladesh and Sri Lanka. The Sri Lanka and Bangladesh manufacturingfacilities were commissioned in fiscal 2013-14. The Sri Lanka facility is a fruit juicemanufacturing facility and is envisaged to largely cater to the South and West Indianmarkets besides the local Sri Lanka market. The new manufacturing facility in Bangladeshwill manufacture a range of Hair Oils, Shampoos, Toothpastes and Dabur Honey for the localmarket.

Our largest manufacturing facility in International Business is located at Ras alKhaimah (RAK) and during fiscal 2013-14, its capacity was significantly enhanced to caterto growing demand in the GCC markets. In addition, new facilities for Hair Creams,Toothpaste and Hair Serum were commissioned.

In the Egypt plant, entire manufacturing operations have been consolidated in to thenew Green Field factory which was commissioned in the previous year. In addition,commercial production has been started for new product categories of Hair Gels, Henna HairColours and Fem Hair Removing Creams.

The Analytical testing capability has been increased across factories in ourInternational Business, especially for plants exporting to Europe so as to align with newEC 1223 Cosmetic regulation requirement and change in Preservatives guidelines. Halalcertification was also obtained for 157 products produced in the UAE.


Committed and motivated employees are your Company's most important assets. Dabur'speople philosophy has been to enable an organizational culture that values decentralizedand entrepreneurial working. We are committed to creating a transparent organization thathelps our employees hone their skills and enable them to deliver superior performance.

During fiscal 2013-14, Dabur focused on various strategic learning programmes, employeeengagement and health management initiatives aimed at the overall development of ourdynamic workforce. Dabur's Human Resource Development programme includes a structuredapproach in employee engagement, resourcing, performance and compensation management,competency-based development, career and succession planning and organization building. Wehave developed processes like Career Development Centre (CDC) at Dabur, which enables ouremployees know where they stand vis-a-vis organizational expectations and helps theindividual grow in their career within the organization. CDCs also help us identifypotential candidates under the succession planning programme.

Our Performance Management System is anchored in a Balanced Scorecard-based approachthat helps us look at the value created by the employee, not only through his/herfinancial contribution towards the organizations' top line and bottom line, but also theintangible wealth created by the employee through improvements in business process,organizational learning & development. We provide growth opportunities for employeesthrough job rotations, cross-geography/function movements etc. These are plannedproactively in consultation with the candidates and their department heads.

Dabur has a structured Management Trainee programme, YMDP (Young Manager DevelopmentProgramme), wherein we hire a set of Management Trainees from premier B-schools and helpthem grow with the Company. Some of the fresh hires are even given overseas exposure. Wealso undertake lateral hiring and have seen many people join Dabur in leadership positionsfrom much bigger companies and MNCs.

This year we have launched a new initiative, YSLP (Young Sales Leadership Programme),with an objective to select and nurture young MBAs from next tier B-Schools forstrengthening our sales talent pipeline. These graduates will be put through anaccelerated structured training programme for 30 months so that they are ready to take upthe ASM role at the end of the training period.

Our rural distribution enhancement programme, Project Double, has helped Dabur expandits rural footprint and reach out to villages of 3,000 population. This meant adding more'Feet on Street' in these markets. Almost all of these new foot soldiers are sons of thesoil who have been hired from the local villages and districts. In order to execute ourlatest sales initiative, Project CORE, 360 feet on street resources with relevantexperience were hired in a short period of time and the project went live as per the plan.

Leadership development continues to be one of the key initiatives of the Company.Globally acclaimed programs are taken up on regular basis under this initiative andexposure given to identified talents. Our LEAD programme, launched in 2011, is now beingrolled out for the next fifty of our top leaders. This process is being conducted with thehelp of a global HR consulting firm. Over the years, this initiative has helped us developa Dabur Leadership Framework for analyzing and addressing individual and team performancedevelopment opportunities.

Our institutionalized rewards and recognition programme APPLAUSE encourages people tothink out of the box and recognizes their efforts through rewards and career growthopportunities. Being in a hyper-competitive environment, we demand higher levels ofcommitment from our employees and these programmes help increase employee engagementlevels and create more employee touch points and opportunities to recognize talent, bothon a formal and informal basis.

At Dabur, we believe that creating and maintaining a diverse workforce is a businessimperative. We see diversity as a competitive advantage and key ingredient for growth.Hence, we are striving to build an inclusive workplace that promotes cultural agility,global mindset and diversity of experience and thoughts. Towards this end, Your Companyhas seen a growing number of women joining the workforce through targeted hiring atB-School campuses. Dabur is proud to announce that today, many of our brand managersacross categories in India are women. Around a quarter of Management Trainees recruitedduring the last few years have been women. We also celebrate International Women's Day atDabur offices every year. This year Dabur Head office hosted a special session on Wellnessfor our women employees by a doctor from a reputed Delhi-NCR based Hospital.

For the first time, Rural SPORT, a unique Audio Visual based in house training programfor rural workforce was conducted across all the zones. It demonstrates a person making asales call, capturing at every step the right and wrong actions. This AV-based approachensures that the training delivery is very user friendly. SPORT has been selected toreceive the ASTD (American Society for Training & Development) Award for Excellence inPractice Citation in the Organizational Learning and Development category.

Dabur continues to maintain its record on industrial relations without any interruptionin work. As on March 31, 2014, the Company had 6,382 employees on its rolls across theglobe.


Innovation and R&D have always been integral to Dabur's DNA. Dabur has a strongin-house research wing, Dabur Research & Development Centre (DRDC) that follows a'bush-to-brand' approach. Your Company has set up in-house nurseries that grow severalrare herbs that go into its various products. DRDC undertakes detailed tests on individualingredients and products to ensure that the final product meets customer needs andaspirations. This in-depth knowledge about nature and natural ingredients is one of ourbig strengths, not just while developing efficacious products for our consumers but alsofor devising ways to recycle and re-use the herbal waste and to effectively conduct lifecycle analysis of our products.

Your company is conducting regular and in-depth shelf life studies and devisingeffective means of disposal without endangering the environment. Dabur is also commencingwork on Life Cycle Analysis of its products to identify risks and opportunities along theentire value chain. This, we believe, will help further enhance our environmentalresponsibility efforts.

Dabur has been conducting scientific research and third-party clinical trials on itsproducts to prove the efficacy of its various products and their ingredients, and toensure better delivery of value to its consumers. About 12 preclinical and three clinicalstudies were organized by the DRDC team in fiscal 2013-14.

All our Ayurveda-based products follow the traditional Indian form of medicine andremain true to the Ayurvedic scriptures. While the efficacy of its Ayurvedic and naturalproducts are being proven through science on one hand, Dabur is also working towardsmaking Ayurveda more contemporary and relevant for today's generation through up-gradationand formulation changes. Today, Dabur has a wide range of products based on Ayurveda andoffering the benefits of Ayurveda in modern ready-to-use formats, a move that has beenappreciated by consumers.

During the year, Dabur's R&D was instrumental in bringing out a number ofsuccessful innovations both in India and overseas markets. These new product were launchedin various categories such as Hair Care, Skin Care, Health Care and Foods. Details ofthese have been provided in the discussion on the business segments.


During fiscal 2013-14, Dabur witnessed sales growth of 15.1% on the back of robustvolumes across categories and markets. The year registered double digit volume growth on aconsolidated basis.

We encountered inflationary headwinds in some agri-based inputs such as copra, spices,herbs and honey during fiscal 2013-14. Pressures on our input basket were furthercompounded by adverse currency exchange rate movements which led to inflation in importedraw materials such as fruit concentrates and crude-oil linked inputs such as packagingmaterials. We managed to navigate these challenges through calibrated price increases andefficient buying which resulted in reduction of material costs to 48.1% of sales in fiscal2013-14 as compared to 49.1% in fiscal 2012-13.

Fiscal 2013-14 witnessed a rise in new product activity and renovation of the existingportfolio which was well supported by higher investments and this was reflected inAdvertisement & Publicity increasing to 14.1% of sales in fiscal 2013-14 as comparedto 13.6% in fiscal 2012-13.

Consequently, our EBITDA margins improved to 18.2% as compared to 17.8% in fiscal2012-13. The Effective Tax Rate on a consolidated basis was stable at 19.3% and Profitafter Tax (PAT) grew by 19.7% to Rs. 913.9 crores in fiscal 2013-14. Fig. 12 provides asummary of the consolidated income statement.

Fig. 12: Consolidated Income Statement (Summary)

Particulars (in Rs. crores) FY13 FY14 YoY(%)
Net Sales 6,146.4 7,073.2 15.1%
Other Operating Income 22.7 21.2 -6.6%
Material Cost 3,019.1 3,400.0 12.6%
% of Sales 49.1% 48.1%
Employee Expense 498.9 607.7 21.8%
% of Sales 8.1% 8.6%
Advertising & Publicity 837.0 999.7 19.4%
% of Sales 13.6% 14.1%
Other Expenses 826.3 930.6 12.6%
% of Sales 13.4% 13.2%
Other Non Operating Income 108.9 131.5 20.8%
EBITDA 1,096.6 1,287.9 17.4%
% of Sales 17.8% 18.2%
Finance Costs 58.9 54.2 -8.1%
Depreciation & Amortization 84.7 97.5 15.1%
Profit Before Tax (PBT) 953.0 1136.2 19.2%
Exceptional Item -4.7 0.0
Tax Expenses 182.6 219.1 20.0%
PAT (Before extraordinary item) 765.7 917.2 19.8%
% of Sales 12.5% 13.0%
Extraordinary Item 0.1 -0.7
PAT(After extraordinary Items) 765.8 916.4 19.7%
Minority Interest - Profit/(Loss) 2.4 2.5
PAT (After Minority Interest) 763.4 913.9 19.7%
% of Sales 12.4% 12.9%
Diluted EPS ( Rs. ) 4.35 5.21 19.6%

Fiscal 2013-14 continued to witness improvement in capital efficiency as reflected inreduction in working capital as days of sales to 13 days as compared to 18 days in fiscal2012-13 (refer Fig. 13). In addition, Fixed Asset Turnover increased to 6.1x in fiscal2013-14 as compared to 5.8x in fiscal 2012-13 (refer Fig. 14) even though we had incurredcapital expenditure of Rs. 206.5 crores on new manufacturing facilities in Bangladesh, SriLanka and Egypt and regular capex in other facilities across markets.

Fig. 13: Working Capital

As Days of Sales FY13 FY14
Trade Receivables 29 35
Inventories 50 50
Trade Payables 43 57
Working Capital 16 13

Note: In the above figure, Working Capital = Current Assets (excluding Cash and CurrentInvestments) less Current Liabilities (excluding Short Term Borrowings and Current Portionof Long Term Debt)

Fig. 14: Fixed Asset Turnover
Ratio FY13 FY14
Fixed Asset Turnover 5.8x 6.1x

Note: Fixed Assets above excluding Goodwill

Improvement in capital efficiency and margin profile of the business translated intoimprovement in return ratios with Return on Invested Capital (ROIC) increasing to 43.6% infiscal 2013-14 as compared to 38.3% in fiscal 2012-13.

Fig. 15: Return Ratios
Ratio FY13 FY14
Return on Invested Capital (ROIC) 38.3% 43.6%
Return on Equity (ROE) 36.5% 34.4%

On the back of increase in Free Cash Flow (refer Fig. 16) due to higher Cash Flow fromOperations, the Balance Sheet continued to strengthen with Net Cash position increasing toRs. 678.4 crores as on March 2014 as compared to Rs. 189.1 crores as on March 2013 (ref.Fig. 17).

Fig. 16: Free Cash Flow Generation

in Rs. crores FY13 FY14
Free Cash Flow (FCF) 645.7 888.0

Note: FCF = Cash Flow from Operations Less Capex

Fig. 17: Debt and Cash Position

in Rs. crores Mar-13 Mar-14
Total Debt 1,257.6 951.1
Total Cash & Cash Equivalent 1,446.7 1,629.5
Net Cash 189.1 678.4

The total dividend for fiscal 2013-14 has been 175% of par value, which includingcorporate tax on dividends translates into a payout ratio of 53% of Standalone PAT and 40%of Consolidated PAT. Overall the financial position of the Company remained strong withthe networth of the Company increasing to Rs. 2,656 crore as compared to Rs. 2,095.2 crorein the previous fiscal.


India offers long term growth opportunities and our initiatives to increase our directcoverage in rural India through Project Double, improve our presence in chemist channelthrough Project CORE and increase our presence in Modern Trade are steps towardsexploiting these opportunities. In addition, we are planning to leverage our brands, deepunderstanding of consumer behaviour and robust distribution network for new offeringswithin Health Care, HPC and Foods categories. In terms of threats, the key threats arevolatility in exchange rates and inflation in input costs.


Going ahead, macro-economic headwinds and heightened competitive intensitynotwithstanding, we would strive to continue to drive profitable growth on the back ofenhanced distribution, innovative marketing mix and new initiatives across categories andgeographies.


The Company has a well-placed, proper and adequate internal control system, whichensures that all assets are safeguarded and protected and that the transactions areauthorised, recorded and reported correctly. The Company's internal control systemcomprises audit and compliance by in-house Internal Audit Division, supplemented byinternal audit checks from Pricewaterhouse Coopers Private Limited, the Internal Auditorsand various transaction auditors. The Internal Auditors independently evaluate theadequacy of internal controls and concurrently audit the majority of the transactions invalue terms. Independence of the audit and compliance is ensured by direct reporting ofInternal Audit Division and Internal Auditors to the Audit Committee of the Board.

To further strengthen the internal control process, the Company has developed a verycomprehensive legal compliance manual called e-nForce\ which drills down from the CEO tothe executive level person who is responsible for compliance. This process is fullyautomated and generates alerts for proper and timely compliance.

To read the report of the Audit Committee on internal control and adequacy, refer tothe section on Corporate Governance of the Annual Report.


Dabur, like any other enterprise having national as well global business interests, isexposed to business risks which may be internal as well as external. Key risks faced bythe Company include, macro-economic slowdown which can put pressure on disposable incomes,persistently high inflationary trends, unfavourable exchange rate fluctuations and anyunexpected changes in regulatory framework. To ensure our long-term corporate success, itis therefore essential that risks be effectively identified, analysed and then mitigatedby means of appropriate control measures. We have a comprehensive risk management systemin place, which enables us to recognise and analyse risks early and to take theappropriate action.

This system is implemented as an integral part of our business processes across theentire Dabur operations and includes recording, monitoring, and controlling internalenterprise business risks and addressing them through informed and objective strategies.

Some of the key risks faced by the Company in today's scenario are exchange ratevolatility and continued inflationary trend which is not only increasing cost pressures,but may also lead to demand compression for FMCG products. Increase of imitation/fakeproducts and brands can hamper our growth. Any unexpected changes in regulatory frameworkpertaining to fiscal benefits and health-related issues which may impact parts of ourbusiness or profitability is one of risks faced by the Company. A slowdown in overalleconomic growth can lead to pressure on disposable incomes and spending power of people.

The Company is well aware of these risks and challenges and has put in place mechanismsto ensure that they are managed and mitigated with adequate timely actions.


Statements in this Management Discussion & Analysis describing Dabur's objectives,projections, estimates and expectations may be 'forward looking statements' within themeaning of applicable laws and regulations.

Actual results may differ substantially or materially from those expressed or implied.Important developments that could affect the Company's operations include a downward trendin the FMCG industry, rise in input costs, exchange rate fluctuations and significantchanges in political and economic environment, environment standards, tax laws, litigationand labour relations.


Peer Comparison

Company Market Cap
(Rs. in Cr.)
Dabur India 36,301.66 52.86 19.07 33.23 38.8 46.0 0.08
Godrej Consumer 28,649.98 50.12 9.47 36.86 19.5 23.5 0.10
Marico 16,477.20 29.44 8.35 17.57 29.1 28.5 0.32
Emami 12,282.97 32.91 13.23 19.74 46.7 49.2 0.06
Bajaj Corp 3,442.65 22.77 6.59 15.51 33.3 42.9 0.00
Safal Herbs 188.50 0.00 21.18 0.00 10.8 5.6 1.10
J L Morison(I) 58.23 0.00 0.78 14.19 -3.7 -1.8 0.21
MFL India 21.80 31.84 0.65 5.07 0.6 5.2 0.44
JHS Sven.Lab. 18.61 0.00 0.41 5.72 -10.5 0.9 0.97
GKB Ophthalmics 16.10 22.17 0.90 8.18 -1.8 7.5 0.81
Amar Remedies 15.88 0.00 0.07 6.45 19.1 17.6 1.29
Paramount Cosmet 10.50 6.99 0.47 4.12 6.9 11.5 0.69
Enjayes Natural 7.28 0.00 2.10 0.00 0.0 0.0 0.74
Birla Pacific 5.72 5.67 0.06 0.00 0.0 0.0 0.00
Ador Multi Prod. 3.12 0.00 0.87 0.00 -9.1 -10.4 0.13

Futures & Options Quote

Expiry Date
207.50 7.15  (3.6%)
Instrument: FUTSTK
Expiry Date: 31 Jul 2014
Open Price: 199.05
Average Price: 205.42
No. of Contracts Traded: 5,282,000
Open Interest: 978,000
Underlying: DABUR
Market Lot: 2000
Previous Close: 207.50
Day’s High | Low: 208.70 | 199.05
Turnover (Cr.): 108.50
Open Int. Change: -466,000.00 ( [32.3]% )
View detailed F& O quotes >>

Key Information

Key Executives:

Anand Burman , Chairman  

Amit Burman , Vice Chairman  

Mohit Burman , Director  

P D Narang , Whole-time Director  

Company Head Office / Quarters:
Asaf Ali Road,
New Delhi,
New Delhi-110002
Phone : 91-11-23253488/23276739
Fax : 91-11-23289142/23221174
E-mail :
Web :
Karvy Computershare Pvt Ltd
Plot No 17-24
Vittal Rao Nagar


28 29 30 31 01 02 03
listIssue Opening : Vishal Fabrics
Economic Events
list Loans & Discounts Corp (YoY)
list AiG Performance of Manufacturing Index
list Sanofi India | Tata Motors | Dr Reddy's Labs | Godrej Inds.