A COST ANALYSIS REPORT ON

DABUR INDIA LIMITED

Submitted by
ALAKESH PHUKAN
ROLL NO:- 12

DABUR
Anchored by heritage, Governed by Trust, Propelled by Science

AN OVERVIEW:Dabur India, that made its beginnings with a small pharmacy, but has continued to learn and
grow to a commanding status in the industry is now among on of the largest FMCG company of the
country and the worlds largest Ayurvedic products manufacturing company. It was established over
100 years ago presently catering to health care,personal care & food segment.
In April 2009, the Hon'ble High Court of Judicature at Delhi has sanctioned the Scheme of
Amalgamation of Fem Care Pharma with Dabur India.
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In July 2010, the Company's wholly owned subsidiary Dabur International entered into an
agreement to acquire 100% stake in leading personal care Company in Turkey i.e. Hobi Group firms
Hobi Kozmetik, Zeki Plastik and Ra Pazarlama at a total consideration of US $ 69 million.
Dabur with Revenues of over Rs 8,436 Crores & Market Capitalisation of Rs.44,000
Crores. Building on a legacy of quality and experience of over 131 years, Dabur is today Indias most
trusted name and the worlds largest Ayurvedic and Natural Health Care Company.
Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities
-- Dabur as the master brand for natural healthcare products,Vatika for premium personal
care, Hajmola for digestives, Ral for fruit juices and beverages and Fem for fairness bleaches and
skin care products.
Dabur today operates in key consumer product categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering
over 5.3 million retail outlets with a high penetration in both urban and rural markets.

COMPANYS BUSINESS MISSION AND OBJECTIVE:"Dedicated to the health & wellbeing of every household"
The main principles of Dabur includes Ownership, Passion for winning, Peoples
development, Consumer focus, Team Work and Innovation. Dabur is inspired by Ayurveda.
Originating nearly 5,000 years ago, Ayurvedic texts were researched by Dabur in its quest for natural
remedies. Today, its application in modern life has been renewed through the scientific research and
validation undertaken at Dabur.
SOME ACCOLADES IN 2015-16 :
1) Dabur entered Forbes list of India's Super 50 Companies
2) Dabur Red Paste Dant Sanan and Dabur Goonj - bagged bronze awards at the recently held
WOW Asia Awad
3) Dabur has been named the Best Healthcare Brand in the Consumer Healthcare category by the
Economic Times
4) Dabur has been named the Best Healthcare Brand in the Consumer Healthcare category by the
Economic Times
5) Dabur has ranked 33 in List Of Top Wealth Creators, by Dalal Street

PRODUCT RANGE OF DABUR :-

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HEALTH

FOODS

HOME CARE/PERSONAL

SUPPLEMENT

CONSUMER HEALTH

CARE

Dabur Chawanprash

Real fruit juices

Odonil

Dabur Honitus Cough Syrup

Dabur Honey

Hommade

Odomos

Shilajit Gold

Dabur Glucose-D

Lemoneez

Sanifresh Shine

Dabur Active Blood Purifier

Dabur Stresscom etc.

Hajmola Yoodley

Odopic

Dabur lal tel

Real Burrst etc.

Vatika Gulabari

Dabur Janma Ghutti

Dabur Red Toothpaste

Dabur Super Thanda Oil

Oxilife facial etc.

Dabur NutiGO etc.

INDIA FMCG BUSINESS : CATEGORY WISE SALES OF DOMESTIC FMCG BUSINESS

FY 2015-16 :-

18%

18%

5%

6%
9%

15%

6%

Health S upplement
Home Care

Digestives
Oral Care

23%

OTC and Ethicals

S kin Care

Hair Care
Food

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FINANCIAL REVIEW:During fiscal 2015-16, the Company recorded consolidated sales of 8436.0 crore growing by
8.1%. The Domestic FMCG Business reported growth of 6.3% while the International Business grew
by 11.9%.
The business witnessed a benign cost environment during the year due to a steep correction in
crude oil prices. This led to an improvement in the gross margins with material cost as a percentage of
sales reducing from 47.7% in FY2014-15 to 45% in FY2015-16.
The Advertisement and Promotion expenditure for the year stood at 14.7% as compared to
14.4% in the previous year, which was a reflection of continued investment behind the brands. The
year 2015-16 witnessed many new product launches as well as a revamp of some of our existing
products.
The Companys EBIDTA grew by 17.9% to 1739.0 crore. Consequently, the EBITDA margins
improved to 20.6% during 2015-16 as compared to 18.9% in the previous fiscal. Effective Tax Rate
on a consolidated basis showed a marginal increase going up from 19% in 2014-15 to 19.4%
in 2015-16. Profit After Tax (PAT) after minority interest grew by 17.5% to 1252.7 crores in fiscal
2015-16. PAT margins improved consequently to 14.8% from 13.7% in the previous year.
KEY HIGHLIGHTS OF THE COMPANYS PERFORMANCE DURING FY 2015-16 :Dabur ended the year with steady growth in Sales and Profits. The highlights of Dabur India
Ltds performance during fiscal 2015-16 on a consolidated basis are:
Net Sales grew by 8.1% to 8436.0 crore in fiscal 2015-16, up from 7806.4 crore in 2014-15
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) increased by 17.9% to 1739.0 crore in fiscal 2015-16, up from 1474.4 crore in
2014-15
Profit After Tax (PAT) increased to 1252.7 crore in 2015-16, up 17.5% from 1065.8 crore in
2014-15
Diluted Earnings Per Share (EPS) increased to 7.08 in 2015-16 from 6.03 in 2014-15.
Two more of our brands joined the 100 crore club Dabur Gulabari and Dabur Lal TailOur
STRATEGIC BUSINESS UNITS :Business structure today stands as below : Consumer Care Business incorporating the Health Care and Home & Personal Care (HPC)
accounts for 53% of Consolidated Sales
Foods Business comprising packaged fruit juices and culinary products accounts for 11.4% of
Consolidate Sales

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SBU wise Sale s Bre akdown

4%

32%
53%

11%

Consume r Care
International

Foods
Othe rs

Inter

national Business, including Daburs organic overseas business as well as the acquired

entities of Hobi Group and Namaste Laboratories LLC, accounts for 31.8% of Consolidated
Sales
COMPARITIVE FINANCIAL HIGHLIGHT (LAST 5 YEAR) :-

EBITDA
FY 12

FY 13

FY 14

Sales

FY 15

FY 16

FY 12

FY 13

FY 14

1739

7806

948

1097

FY 16

8436

7073

1474
1288

FY 15

6146
5283

FINANCIAL RESULT :PARAMETER

FY 2015

FY 2016

Net Sales

7806

8436

Other Income

179

237

EBITDA

1474

1739
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EBITDA Margins (%)

18.9%

20.6%

Profit Before Tax

1319

1557

Taxes

251

302

Tax Rate (%)

19%

19%

Profit After Tax (PAT)

1066

1253

PAT Margins (%)

13.7%

14.8%

Net Fixed Assets (incl. Goodwill)

1927

1995

Current Asset, Loans, Advances

2731

3291

Current Liabilities & Provisions

1942

2071

Share Capital

176

176

Reserves & Surplus

3178

3984

Share Holders Fund

3354

4160

Loan Funds

734

791

Earnings per share

6.1

7.1

Divident per share

2.00

2.25

Book value per Share (BVPS)

19.1

23.6

No of Shares (In crs)

175.7

175.9

266

250

46653

43961

FY 2014-15

FY 2015-16

7806.00

8436.00

20.8

18.1

3720.10

3797.00

Employee Expense

689.6

794.8

Advertising & Publicity

1124.4

1242.7

Other Expences

976.8

1099.7

Other Non Operating Income

158.1

219.2

1474.40

1739.00

Finance Cost

40.10

48.00

Depreciation and Amortization

115.00

133.80

Profit before Tax (PBT)

1319.4

1557.20

Financial Position :

Equity Share Data

Share Price (unadjusted)

Market Cap

(CONSOLIDATED) P&L - FY2015-16 FY2014-15

PARAMETER
Net Sales
Other Operating Income
Material Cost

EBITDA

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Tax Expenses
Minority Interest (Profit/Loss)
PAT (After Minority Interest)

250.90

301.80

2.6

2.7

1065.80

1252.7

CONCLUSION :Dabur India Limited has closed the fiscal 2015-2016 with a strong 8.1% growth in Net Sales
which touched Rs 8436.00 Crore. Net Profit for the year recorded 14.8% growth to reach Rs 1252.70
Crore. Dabur India Limited was able to drive steady growth in revenue and profitability across its
markets in India and overseas in spite of economic headwinds and political challenges in many of
these geographies. Dabur India Limited look forward to continuing on the path of excellence and
profitable growth into the coming years.

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