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Transcript of Dabur India
FINANCIAL REPORT
ON
2008-2010
SUBMITTED TO SUBMITTED BY
Mr. LALIT BHALLA DEVENDRA OJHA
MBA(HONS.)
ROLL- RQ1101A14
Dabur At A GLANCE
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status.
Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment
to our partners and stakeholders. The results of our policies and initiatives speak for themselves.
Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09)
3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and
International Business Division (IBD)
3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu and 8 step down subsidiaries:
Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer
Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield
International (UAE) and Jaquline Inc. (USA).
17 ultra-modern manufacturing units spread around the globe
Products marketed in over 60 countries
Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail
outlets all over India
Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct
business portfolios of Personal Care, Health Care, Home Care & Foods
Master brands:
Dabur - Ayurvedic healthcare products
Vatika - Premium hair care
Hajmola - Tasty digestives
Réal - Fruit juices & beverages
Fem - Fairness bleaches & skin care products
9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey
Strategic positioning of Honey as food product, leading to market leadership (over
75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market
share.
Vatika Shampoo has been the fastest selling shampoo brand in India for three years in
a row
Hajmola tablets in command with 60% market share of digestive tablets category.
About 2.5 crore Hajmola tablets are consumed in India every day
Leader in herbal digestives with 90% market share
Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and Ayurvedic OTC products that
deliver the age-old benefits of Ayurveda in modern ready-to-use formats
Has more than 300 products sold through prescriptions as well as over the counter
Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
- Nature Care Isabgol
- Madhuvaani
- Trifgol
Division also works for promotion of Ayurveda through organised community of
traditional practitioners and developing fresh batches of students
International Business Division (IBD) caters to the health and personal care needs of customers across different
international markets, spanning the Middle East, North & West Africa, EU and the US with its brands Dabur & Vatika .
Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total
sales
Leveraging the 'Natural' preference among local consumers to increase share in
perosnal care categories
Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US
High level of localization of manufacturing and sales & marketing
FOUNDER AND LEADERS
Founding Thoughts
"What is that life worth which cannot bring comfort to others"
The doorstep 'Daktar'
The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in
Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With
missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of
those days, like cholera, malaria and plague.
Soon the news of his medicines traveled, and he came to be known as the trusted
'Daktar' or Doctor who came up with effective cures. And that is how his venture Dabur got its name - derived
from the Devanagri rendition of Daktar Burman.
Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no
access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling
medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability.
BOARD OF DIRECTORS
Dabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate
governance.
The Board comprises of:
Chairman
Vice-Chairman
Dr. Anand Burman
Mr. Amit Burman
Whole Time Directors
Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip Burman
Non Whole Time Promoters, Directors
Mr. Mohit Burman
Independent Directors
Mr. Bert Paterson Mr. P. N. Vijay Mr. R C Bhargava Dr. S. Narayan
Mr. Analjit Singh Dr. Ajay Dua
MILESTONES
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has come a long way in popularising and making easily available a whole range of products based on the traditional science of Ayurveda. And Dabur has set very high standards in developing products and processes that meet stringent quality norms. As it grows even further, Dabur will continue to mark up on major milestones along the way, setting the road for others to follow...
1884 - Established by Dr. S K Burman at Kolkata
1896 - First production unit established at Garhia
1919 - First R&D unit established
Early 1900s - Production of Ayurvedic medicines Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It is the first Company to provide health care through scientifically tested and automated production of formulations based on our traditional science.
1930 - Automation and upgradation of Ayurvedic products manufacturing initiated
1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
1940 - Personal care through Ayurveda Dabur introduces Indian consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So popular is the product that it becomes the largest selling hair oil brand in India.
1949 - Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded Chyawanprash in India.
1957 - Computerisation of operations initiated
1970 - Entered Oral Care & Digestives segment Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to the masses.
1972 - Shifts base to Delhi from Calcutta
1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet.
1979 - Dabur Research Foundation set up
1979 - Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time
1984 - Dabur completes 100 years
1988 - Launches pharmaceutical medicines
1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage.
1994 - Comes out with first public issue
1994 - Enters oncology segment
1994 - Leadership in health care Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source
1996 - Enters foods business with the launch of Real Fruit Juice
1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real becomes the fastest growing and largest selling brand in the country.
1998 - Burman family hands over management of the company to professionals
2000 - The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has grown from a small beginning based on traditional health care. To a commanding position amongst an august league of large corporate businesses.
2001 - Super specialty drugs With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets.
2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4 crore
2003 - Dabur demerges Pharmaceuticals business Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, Dabur India now largely comprises of the FMCG business that include personal care products, healthcare products and Ayurvedic Specialities, while the Pharmaceuticals business would include Allopathic, Oncology formulations and Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the Pharmaceutical business.
Maintaining global standards
As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification.
Science for nature
Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation.
2005 - Dabur aquires Balsara As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market, in a Rs 143-crore all-cash deal.
2005 - Dabur announces bonus after 12 years Dabur India announced issue of 1:1 Bonus share to the shareholders of the company, i.e. one share for every one share held. The Board also proposed an increase in the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore.
2006 - Dabur crosses $2 bln market cap, adopts US GAAP. Dabur India crosses the $2-billion mark in market capitalisation. The company also adopted US GAAP in line with its commitment to follow global best practices and adopt highest standards of transparency and governance.
2006 - Approves FCCB/GDR/ADR up to $200 million Moving forward on the inorganic growth path, Dabur India decides to raise up to $200 million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or any other securities.The capital raised will be used to fund Dabur's aggressive growth ambitions and acquisition plans in India and abroad.
2007 - Celebrating 10 years of Real Dabur Foods unveiled the new packaging and design for Real at the completion of 10 years of the brand. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits.
2007 - Foray into organised retail Dabur India announced its foray into the organised retail business through a wholly-owned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format.
2007 - Dabur Foods merged with Dabur India Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with itself to extract synergies and unlock operational efficiencies. The integration will also help Dabur sharpen focus on the high growth business of foods and beverages, and enter newer product categories in this space.
2008 - Acquires Fem Care Pharma Dabur India acquires Fem Care Pharma, a leading player in the women's skin care market. Besides an entry into the high-growth skin care market with an established brand name FEM, this transaction also offers Dabur a strong platform to enter newer product categories and markets.
2009 - Dabur Red Toothpaste joins 'Billion Rupee Brands' club Dabur Red Toothpaste becomes the Dabur's ninth Billion Rupee brand. Dabur Red Toothpaste crosses the billion rupee turnover mark within five years of its launch.
2010 - Dabur makes its first overseas acquisition Dabur makes its first overseas acquisition, buying Hobi Kozmetik Kozmetik Group, a leading personal care products company in Turkey, for $69 million.
2010 - Dabur acquired 100% equity in Namaste Lab Dabur acquired 100% equity in Namasté Laboratories LLC of the US for $100 million. This marks Dabur’s entry into the fast-growing ethnic hair care products market in U.S., Europe and Africa.
2010 - Dabur Chyawanprash Launched Orange & Mango Flavours Dabur launches India’s first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched in Orange and Mango flavoured variants.
2010 - Dabur Amla Hair Oils enters Limca Book of Records Dabur Amla Hair Oils enters Limca Book of Records for achieving a record feat of hosting the longest ever non-stop head massage marathon.
2011 - Dabur enters professional skin care market. Dabur enters professional skin care market with the launch of OxyLife Professional Facial Kit, created exclusively for professional use.
2011 - Dabur launches its first-ever online shopping portal Dabur India Ltd. launches its first-ever online shopping portal www.daburuveda.com With this, Dabur is the first Indian FMCG company to launch a dedicated online shopping portal for its beauty products range. The portal will be the online gateway for consumers to know, understand, buy and gift the exclusive Dabur Uveda range of skincare products.
2011 - Dabur India acquires 30-Plus from Ajanta Pharma Dabur India Ltd acquired Ajanta Pharma’s over-the-counter energizer brand ’30-Plus’.
Segment Wise Competitor list:
Category Dabur’s Share Main Competitors
Fruit Juice 58% Real and Active Tropicanna
Fruit Drinks (coolers) 1% Coolers Frooti And Maaza
Hair oil Coconut base 6.4% Vatika HLL
Shampoo Vatika 7.1% HLL and P&G
Hair care (overall) 27% HLL, P&G and
Himalaya
Chyawanprash 64% Himani, Zhandu and
Himalaya
Honey 40% Himani, Hamdard
and local Players
Digestives 37% Paras and local
players
COMMON SIZE BALANCE SHEET
Industry :Personal Care - Indian – Large
(Rs in Crs) Year
Mar 08 % of B/S Mar 09 % of B/S Mar 10 % of B/S
SOURCES OF FUNDS :
Share Capital
86.4 15.83% 86.51 9.84% 86.9 10.11%
Reserves Total
441.92 80.99% 651.69 74.09% 662.48 77.09%
Total Shareholders Funds
528.32 96.82% 738.2 83.93% 749.38 87.20%
Secured Loans
16.45 3.01% 10.65 1.21% 24.27 2.82%
Unsecured Loans
0.89 0.16% 130.72 14.86% 85.7 9.97%
Total Debt
17.34 3.18% 141.37 16.07% 109.97 12.80%
Total Liabilities
545.66 100.00% 879.57 100.00% 859.35 100.00%
APPLICATION OF FUNDS :
Gross Block
467.94 85.76% 518.77 58.98% 687.23 79.97%
Less : Accumulated Depreciation
189.77 34.78% 210.45 23.93% 236.28 27.50%
Net Block
278.17 50.98% 308.32 35.05% 450.95 52.48%
Capital Work in Progress
16.26 2.98% 51.71 5.88% 23.31 2.71%
Investments
270.37 49.55% 436.9 49.67% 348.51 40.56%
Inventories
201.15 36.86% 261.72 29.76% 298.44 34.73%
Sundry Debtors
100.46 18.41% 112.36 12.77% 130.48 15.18%
Cash and Bank
68.26 12.51% 143.69 16.34% 163.91 19.07%
Loans and Advances
182.94 33.53% 227.28 25.84% 325.12 37.83%
Total Current Assets
552.81 101.31% 745.05 84.71% 917.95 106.82%
Current Liabilities
317.22 58.14% 331.21 37.66% 432.06 50.28%
Provisions
265.41 48.64% 332.89 37.85% 440.1 51.21%
Total Current Liabilities
582.63 106.78% 664.1 75.50% 872.16 101.49%
Net Current Assets
-29.82 -5.46% 80.95 9.20% 45.79 5.33%
Miscellaneous Expenses not written off 13.95 2.56% 8.64 0.98% 2.74 0.32%
Deferred Tax Assets
24.01 4.40% 23.54 2.68% 23.82 2.77%
Deferred Tax Liability
27.28 5.00% 30.49 3.47% 35.77 4.16%
Net Deferred Tax
-3.27 -0.60% -6.95 -0.79% -11.95 -1.39%
Total Assets
545.66 100.00% 879.57 100.00% 859.35 100.00%
ANALYSIS OF Common size balance sheet
1. The share capital is showing an increasing trend i.e. Rs 86.4 cr in 2008 to Rs 86.51 in 2009 to Rs 86.9 cr in 2010 year by year but their percentage shows a decreasing trend because they are being compared with total liabilities.
2. Total reserves of the company in 2008 is Rs 441.92 cr and Rs 651.69 cr in 2009 and Rs 662.48 cr in 2010. This is because there is huge transfer of fund from Profit & Loss Account i.e amount equivalent to Rs 90 cr in 2009 and Rs 130 cr in 2010.
3. Since share capital and total reserves both of the company are increasing it will certainly increase the total
shareholders funds.
4. Secured loans are decreasing as it was 3.01 % in 2008 and 2.82 % in 2010 because company is trying to write off its debt but in order to repay its debt they are differing their liabilities such as advances from customers , unpaid dividends, creditors for expenses. This in turn increases company’s total liabilities. In 2010 company show decrease in total liability due to decrease in unsecured loans.
5. The net block of the company is 50.98% in 2008 , it decrease 35.05% in 2009 and again increases to 52.48% in 2010 as compared to total assets. It is due to the major acquisition by the company.Fem Care acquisition in 2009-10.
6. The sundry debtor of the coming decrease in year 2008-09 by 6% but in year 2009-10 it increases by 3% because the company had Debts Outstanding for a period exceeding six months.
7. Proportion of working capital for the year 2009 is 3 times that of 2008 since the company’s current assets have increased but for the year 2010 it is half of 2009.
COMPARATIVE BALANCE SHEET
Industry :Personal Care - Indian – Large
(Rs in Crs)
comparison of 08-09
comparison of 09-10
Year
Mar 08 Mar 09 Mar 10 changes in
absolute fig. percentage
change
changes in absolute fig.
percentage change
SOURCES OF FUNDS :
Share Capital
86.4 86.51 86.9 0.11 0.13%
0.39 0.45%
Reserves Total
441.92 651.69 662.48 209.77 47.47%
10.79 1.66%
Total Shareholders Funds
528.32 738.2 749.38 209.88 39.73%
11.18 1.51%
Secured Loans
16.45 10.65 24.27 -5.8 -35.26%
13.62 127.89%
Unsecured Loans
0.89 130.72 85.7 129.83 14587.64%
-45.02 -34.44%
Total Debt
17.34 141.37 109.97 124.03 715.28%
-31.4 -22.21%
Total Liabilities
545.66 879.57 859.35 333.91 61.19%
-20.22 -2.30%
APPLICATION OF FUNDS :
Gross Block
467.94 518.77 687.23 50.83 10.86%
168.46 32.47%
Less : Accumulated Depreciation
189.77 210.45 236.28 20.68 10.90%
25.83 12.27%
Net Block
278.17 308.32 450.95 30.15 10.84%
142.63 46.26%
Capital Work in Progress
16.26 51.71 23.31 35.45 218.02%
-28.4 -54.92%
Investments
270.37 436.9 348.51 166.53 61.59%
-88.39 -20.23%
Inventories
201.15 261.72 298.44 60.57 30.11%
36.72 14.03%
Sundry Debtors
100.46 112.36 130.48 11.9 11.85%
18.12 16.13%
Cash and Bank
68.26 143.69 163.91 75.43 110.50%
20.22 14.07%
Loans and Advances
182.94 227.28 325.12 44.34 24.24%
97.84 43.05%
Total Current Assets
552.81 745.05 917.95 192.24 34.78%
172.9 23.21%
Current Liabilities
317.22 331.21 432.06 13.99 4.41%
100.85 30.45%
Provisions
265.41 332.89 440.1 67.48 25.42%
107.21 32.21%
Total Current Liabilities
582.63 664.1 872.16 81.47 13.98%
208.06 31.33%
Net Current Assets
-29.82 80.95 45.79 110.77 -371.46%
-35.16 -43.43%
Miscellaneous Expenses not written off 13.95 8.64 2.74 -5.31 -38.06%
-5.9 -68.29%
Deferred Tax Assets
24.01 23.54 23.82 -0.47 -1.96%
0.28 1.19%
Deferred Tax Liability
27.28 30.49 35.77 3.21 11.77%
5.28 17.32%
Net Deferred Tax
-3.27 -6.95 -11.95 -3.68 112.54%
-5 71.94%
Total Assets
545.66 879.57 859.35 333.91 61.19%
-20.22 -2.30%
ANALYSIS OF Comparative balance sheet
1. The share capital of the company shows an increase of 0.13 % in 2008-09 as compared to 0.45 % in year 2009-10.
From 2008 to 2010, the share capital is almost constant. It means company is not issuing any shares in the market
or no body is investing in the company.
2. The reserves and surplus in year 2008-09 has increased by 47.47 % since it has large amount of profits but in year
2009-10 they increase by only 1.66 % due to the acquisitions its first overseas acquisition, buying Hobi Kozmetik
Kozmetik Group, a leading personal care products company in Turkey, for $69 million.
3. The company is trying to write off its Secured loans in 2008-09 but it taking unsecured loans from Security Deposit
from Dealers and Others ,Short term Loan from Banks , Interest free Sales Tax Loan. But in 2009-10 the company
took huge amount of secured loans from Banks as a Short Term Loans, Deferred Payment Credit.
4. Sundry debtors in 2008 is Rs 100.46 crore and 112.36 crore in 2009.there is increment of 11.85 %. Similiarly there is
increase of 16.13 % in 2009-10 an almost same amount in last three years, amount of sales are increasing year by
year . It have two reasons ,company is giving more emphasis on cash sales, and receivables are frequently converted
into cash(debtors turnover ratio is good).it is a good indicator of company’s liquidity position.
5. Total assets of the company has increased by Rs 333.91 crore in 2008-09 because current liabilities decreased by
13.98 % and total current assets increased by 34.78 %.
COMMON SIZE INCOME STATEMENT
Industry :Personal Care - Indian - Large (Rs in Crs) Year
Mar 08 % of B/S Mar 09 % of B/S Mar 10 % of B/S
INCOME :
Sales Turnover
2,117.79 101.65% 2,423.68 101.15% 2,879.54 100.83%
Excise Duty
34.39 1.65% 27.52 1.15% 23.58 0.83%
Net Sales
2,083.40 100.00% 2,396.16 100.00% 2,855.96 100.00%
Other Income
30.29 1.45% 44.19 1.84% 41.64 1.46%
Stock Adjustments
3.04 0.15% 38.89 1.62% 9.68 0.34%
Total Income
2,116.73 101.60% 2,479.24 103.47% 2,907.28 101.80%
EXPENDITURE :
0.00%
Raw Materials
747.32 35.87% 937.13 39.11% 992.21 34.74%
Power & Fuel Cost
38.42 1.84% 36.63 1.53% 35.43 1.24%
Employee Cost
138.16 6.63% 154.7 6.46% 197.62 6.92%
Other Manufacturing Expenses
315.49 15.14% 358.33 14.95% 432.15 15.13%
Selling and Administration Expenses
390.67 18.75% 429.25 17.91% 566.4 19.83%
Miscellaneous Expenses
84.83 4.07% 96.32 4.02% 111.04 3.89%
Total Expenditure
1,714.89 82.31% 2,012.36 83.98% 2,334.85 81.75%
Operating Profit
401.84 19.29% 466.88 19.48% 572.43 20.04%
Interest
10.92 0.52% 14.47 0.60% 13.49 0.47%
Gross Profit
390.92 18.76% 452.41 18.88% 558.94 19.57%
Depreciation
25.75 1.24% 27.42 1.14% 31.91 1.12%
Profit Before Tax
365.17 17.53% 424.99 17.74% 527.03 18.45%
Tax
40.57 1.95% 47.48 1.98% 89.66 3.14%
Fringe Benefit tax
7.08 0.34% 6.51 0.27% 0 0.00%
Deferred Tax
0.75 0.04% -2.55 -0.11% 4.04 0.14%
Reported Net Profit
316.77 15.20% 373.55 15.59% 433.33 15.17%
ANALYSIS OF Common size income statement .
1. There has been an increase in Expenses of the company because the company has paid wages, bonus and deposited
provident fund to the employees and also company has spent another huge amount on manufacturing, selling and
administration.
2. The Net Profit of the company in 2008 was 15.20% when compared with net sales, in 2009 it was 15.59% and in
2010 it is 15.17%. PAT increased by 28.7% during the FY10 due to strong topline, improved gross margins and
operating leverage despite higher ad spend & increased taxation.
3. The Raw material’s cost in 2008 was 35.87% which has increased to 39.11% in 2009 that shows company had good
opening inventory for the fiscal year.
4. Operating profit in 2008 was at 19.29% as compared to 19.48% in 2009 non-operating income stood at 0.43% of
sales as compared to 0.75% in the previous year.
5. Depreciation in 2008 was 1.24% when compared with 1.14% in 2009 and then further it has decreased to 1.12% in
2010 ,this shows that the company has amortized equally over the period of time.
COMPARATIVE INCOME STATEMENT Industry :Personal Care - Indian – Large
(Rs in Crs)
comparison of 08-09
comparison of 09-10
Year Mar 08 Mar 09 Mar 10 changes in
absolute fig. percentage
change
changes in absolute fig.
percentage change
INCOME :
Sales Turnover 2,117.79 2,423.68 2,879.54 305.89 14.44%
455.86 18.81%
Excise Duty 34.39 27.52 23.58 -6.87 -19.98%
-3.94 -14.32%
Net Sales 2,083.40 2,396.16 2,855.96 312.76 15.01%
459.80 19.19%
Other Income 30.29 44.19 41.64 13.90 45.89%
-2.55 -5.77%
Stock Adjustments 3.04 38.89 9.68 35.85 1179.28%
-29.21 -75.11%
Total Income 2,116.73 2,479.24 2,907.28 362.51 17.13%
428.04 17.26%
EXPENDITURE :
0.00
Raw Materials 747.32 937.13 992.21 189.81 25.40%
55.08 5.88%
Power & Fuel Cost 38.42 36.63 35.43 -1.79 -4.66%
-1.20 -3.28%
Employee Cost 138.16 154.7 197.62 16.54 11.97%
42.92 27.74%
Other Manufacturing Expenses 315.49 358.33 432.15 42.84 13.58%
73.82 20.60%
Selling and Administration Expenses 390.67 429.25 566.4 38.58 9.88%
137.15 31.95%
Miscellaneous Expenses 84.83 96.32 111.04 11.49 13.54%
14.72 15.28%
Total Expenditure 1,714.89 2,012.36 2,334.85 297.47 17.35%
322.49 16.03%
Operating Profit 401.84 466.88 572.43 65.04 16.19%
105.55 22.61%
Interest 10.92 14.47 13.49 3.55 32.51%
-0.98 -6.77%
Gross Profit 390.92 452.41 558.94 61.49 15.73%
106.53 23.55%
Depreciation 25.75 27.42 31.91 1.67 6.49%
4.49 16.37%
Profit Before Tax 365.17 424.99 527.03 59.82 16.38%
102.04 24.01%
Tax 40.57 47.48 89.66 6.91 17.03%
42.18 88.84%
Fringe Benefit tax 7.08 6.51 0 -0.57 -8.05%
-6.51 -100.00%
Deferred Tax 0.75 -2.55 4.04 -3.30 -440.00%
6.59 -258.43%
Reported Net Profit 316.77 373.55 433.33 56.78 17.92%
59.78 16.00%
ANALYSIS OF Comparative income statement
1. The difference of Net Sales of the company in 08-09 was at Rs.312.76 cr and that in 09-10 was Rs.459.80 cr, we can see that it has increased from 15.01% to 19.19 in two financial years. Dabur recorded another year of strong growth with sales going up by 19.6% to Rs. 3,390.9 crores for FY2009-10 . Fem Care Pharma which was acquired in 2008-09 and consolidated with DIL w.e.f. June, 25 2009 added about 3% to topline
2. The Other Income of the company has increased to Rs.30.29 cr in 2008 when compared to Rs.44.19 cr which is an increase of 45.89% , this is due to the fact that the company export Subsidy, Rent Realized, Sale of Scrap, Miscellaneous Receipts, Profit on Sale of current investments other than trade, Profit on Sale of long term investment other than trade, Profit on Sale of Fixed Assets.
3. The company achieved a significant improvement in EBIDTA margins which increased from 18.3% in 2008-09 to 19.6% during 2009-10. This was a result of comprehensive planning, forecasting and hedging strategy for procurement of raw and packing materials which was also aided by lower input costs during first half of the year.
4. PAT increased by 28.7% during the FY10 due to strong topline, improved gross margins and operating leverage despite higher ad spend & increased taxation. Increase in fixed assets due to Fem acquisition and Capital expenditure on new manufacturing units at Baddi and Pantnagar.
5. Material costs lower by 15% due to benign input costs environment especially in first half of the year. Inflation during second half did not have a major impact due to effective procurement strategies.
TREND ANALYSIS OF BALANCE SHEET
Industry :Personal Care - Indian – Large
(Rs in Crs) Year
Mar 07 Mar 08 Mar 09 Mar 10
Mar-07 Mar-08 Mar-09 Mar-10
SOURCES OF FUNDS :
Share Capital
86.29 86.4 86.51 86.9
100% 100.13% 100.25% 100.71%
Reserves Total
316.9 441.92 651.69 662.48
100% 139.45% 205.65% 209.05%
Total Shareholders Funds
403.19 528.32 738.2 749.38
100% 131.03% 183.09% 185.86%
Secured Loans
19.28 16.45 10.65 24.27
100% 85.32% 55.24% 125.88%
Unsecured Loans
0.8 0.89 130.72 85.7
100% 111.25% 16340% 10713%
Total Debt
20.08 17.34 141.37 109.97
100% 86.35% 704.03% 547.66%
Total Liabilities
423.27 545.66 879.57 859.35
100% 128.92% 207.80% 203.03%
APPLICATION OF FUNDS :
Gross Block
404.3 467.94 518.77 687.23
100% 115.74% 128.31% 169.98%
Less : Accumulated Depreciation
168.97 189.77 210.45 236.28
100% 112.31% 124.55% 139.84%
Net Block
235.33 278.17 308.32 450.95
100% 118.20% 131.02% 191.62%
Capital Work in Progress
3.71 16.26 51.71 23.31
100% 438.27% 1393.80% 628.30%
Investments
145.35 270.37 436.9 348.51
100% 186.01% 300.58% 239.77%
Current Assets, Loans & Advances
Inventories
157.37 201.15 261.72 298.44
100% 127.82% 166.31% 189.64%
Sundry Debtors
60.98 100.46 112.36 130.48
100% 164.74% 184.26% 213.97%
Cash and Bank
50.25 68.26 143.69 163.91
100% 135.84% 285.95% 326.19%
Loans and Advances
127.81 182.94 227.28 325.12
100% 143.13% 177.83% 254.38%
Total Current Assets
396.41 552.81 745.05 917.95
100% 139.45% 187.95% 231.57%
Less : Current Liabilities and Provisions
Current Liabilities
277.7 317.22 331.21 432.06
100% 114.23% 119.27% 155.59%
Provisions
78.38 265.41 332.89 440.1
100% 338.62% 424.71% 561.50%
Total Current Liabilities
356.08 582.63 664.1 872.16
100% 163.62% 186.50% 244.93%
Net Current Assets
40.33 -29.82 80.95 45.79
100% -73.94% 200.72% 113.54%
Miscellaneous Expenses not written off
19.82 13.95 8.64 2.74
100% 70.38% 43.59% 13.82%
Deferred Tax Assets
1.37 24.01 23.54 23.82
100% 1752.55% 1718.25% 1738.69%
Deferred Tax Liability
22.64 27.28 30.49 35.77
100% 120.49% 134.67% 157.99%
Net Deferred Tax
-21.27 -3.27 -6.95 -11.95
100% 15.37% 32.68% 56.18%
Total Assets
423.27 545.66 879.57 859.35
100% 128.92% 207.80% 203.03%
ANALYSIS OF TREND IN BALANCE SHEET
1. Total reserves of the company showing an increasing trend through all years from 2008-2010 .The inference we can
draw from this is that the company can go for expansion of the business in future i.e. it can go for acquisition.
2. Its assets are increasing hence this can be concluded that company’s liquidity position is on good track. 3. Company’s share capital remains almost constant from 2008-10 means it has not issued new shares in the market.
4. Liabilities of the company is also increasing in the form of unsecured loans this aptly indicates the company’s
credibility in the market, besides this if it keeps on following the same growth trend in acquiring secured loans, it will create a threat to the financial stability.
5. The steady growth achieved by your Company has been enabled by sustained investments in marketing and brand
building, distribution, production, supply chain and by driving operational efficiencies across all its functions. The acquisition of Fem Care Pharma, a leading player in the women's skin care products market, and introduction of a host of new products and variants added to this growth and helped Dabur gain a strong foothold in several high-growth and highly competitive categories across the consumer goods space.
TREND ANALYSIS OF INCOME STATEMENT
Industry :Personal Care - Indian - Large
(Rs in Crs)
Year
Mar 07(12) Mar 08(12) Mar 09(12) Mar 10(12)
Mar 07(12)
Mar 08(12)
Mar 09(12)
Mar 10(12)
INCOME :
Sales Turnover
1,637.36 2,117.79 2,423.68 2,879.54
100% 129.34% 129.34% 175.86%
Excise Duty
36.93 34.39 27.52 23.58
100% 93.12% 93.12% 63.85%
Net Sales
1,600.43 2,083.40 2,396.16 2,855.96
100% 130.18% 130.18% 178.45%
Other Income
19.31 30.29 44.19 41.64
100% 156.86% 156.86% 215.64%
Stock Adjustments
22.19 3.04 38.89 9.68
100% 13.70% 13.70% 43.62%
Total Income
1,641.93 2,116.73 2,479.24 2,907.28
100% 128.92% 128.92% 177.06%
EXPENDITURE :
Raw Materials
558.4 747.32 937.13 992.21
100% 133.83% 133.83% 177.69%
Power & Fuel Cost
30.59 38.42 36.63 35.43
100% 125.60% 125.60% 115.82%
Employee Cost
109.77 138.16 154.7 197.62
100% 125.86% 125.86% 180.03%
Other Manufacturing Expenses
255.13 315.49 358.33 432.15
100% 123.66% 123.66% 169.38%
Selling and Administration Expenses
319.85 390.67 429.25 566.4
100% 122.14% 122.14% 177.08%
Miscellaneous Expenses
55.18 84.83 96.32 111.04
100% 153.73% 153.73% 201.23%
Total Expenditure
1,328.92 1,714.89 2,012.36 2,334.85
100% 129.04% 129.04% 175.70%
Operating Profit
313.01 401.84 466.88 572.43
100% 128.38% 128.38% 182.88%
Interest
6.81 10.92 14.47 13.49
100% 160.35% 160.35% 198.09%
Gross Profit
306.2 390.92 452.41 558.94
100% 127.67% 127.67% 182.54%
Depreciation
21.98 25.75 27.42 31.91
100% 117.15% 117.15% 145.18%
Profit Before Tax
284.22 365.17 424.99 527.03
100% 128.48% 128.48% 185.43%
Tax
31.52 40.57 47.48 89.66
100% 128.71% 128.71% 284.45%
Fringe Benefit tax
3.28 7.08 6.51 0
100% 215.85% 215.85% 0.00%
Deferred Tax
-2.66 0.75 -2.55 4.04
100% -28.20% -28.20% -151.88%
Reported Net Profit
252.08 316.77 373.55 433.33
100% 125.66% 125.66% 171.90%
ANALYSIS OF TREND IN INCOME STATEMENT
1. Increasing expenditure in the form of power and fuel cost, employee cost and miscellaneous expenses, cost dearly
in the fluctuation in sales turnover
2. Net sales of dabur are increasing year by year. Sales during 2009-10 were significantly volume-driven, with volumes
accounting for around three fourths of the revenue growth. The input cost pressures were managed effectively and
the company did not take any significant price increases during the year. Growth rates across quarters have been
consistent and reflect your company’s sound business strategies and strong execution capabilities.
3. Depreciation shows an increasing trend which thereby indicates increase in assets as this is evident in the balance
sheet.
4. Revenues grew by 20.6% to Rs 3,416.7 crore while Net Profit grew 28.1% to go up to Rs 501.3 crore. The steady
growth achieved by your Company has been enabled by sustained investments in marketing and brand building,
distribution, production, supply chain and by driving operational efficiencies across all its functions.
SWOT ANALYSIS OF DABUR INDIA LIMITED
SWOT stands for Strengths, Weaknesses, Opportunities and Threats, and is an important tool often used to highlight where a business or organization is, and where it could be in the future. It looks at internal factors, the strengths and weaknesses of a business, and external factors, the opportunities and threats facing the business. The following SWOT analysis looks at Dabur India which is operating in FMCG industry. STRENGTH:
Having alliances with other strong and popular businesses is a major plus point for Dabur India as it helps bring in new customers and make business more effective.
Keeping costs lower than their competitors and keeping the cost advantages helps Dabur india pass on some of the benefits to consumers.
A strong brand is an essential strength of Dabur India as it is recognised and respected.
Dabur India’s international operations mean a wider customer base, a stronger brand and a bigger chunk of the global market.
Development and innovation are high at Dabur India with regard to their products/services, which is a sure strength in its overall performance.
Supplier relationships are strong at Dabur India, which can only be seen as strength in their overall performance. WEAKNESSES:
Lower scope of investing in technology and achieving economies of scale, especially in small sectors
Low exports levels
"Me-tooʺ products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market
OPPORTUNITIES:
Dabur india could benefit from Governmental support, in the form of grants, allowances, training etc.
The changes in the way consumers spend and what they buy provides a big opportunity for dabur india to explore.
dabur india is in good financial position, which is an opportunity for them to explore in terms of investment in new projects.
Decrease in taxation gives an opportunity for dabur india to reduce prices or increase profits.
The growth of the fmcg industry is an opportunity for dabur india to grasp. THREATS:
Consumer lifestyle changes could lead to less of a demand for dabur India products/services.
Tax increases placing additional financial burdens on dabur india could be a threat.
Change in demographics could threaten dabur india.
New products/services from rival firms could lead to dabur india's products/services being less in demand.
Changes in the way consumers shop and spend and other changing consumer patterns could be a threat to dabur india's performance.