About
Dabur India Ltd
Dabur India Ltd is one of the leading FMCG Companies in India and a global leader in Ayurveda with a portfolio of over 250 Herbal and Ayurvedic products. The Company operate in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. Their FMCG portfolio 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, Real for fruit juices and beverages and Fem for fairness bleaches and skin care products.
The Company operates through three Strategic Business Units, Consumer Care Division (CCD), International Business Division (IBD) and Consumer Health Division (CHD). Their CCD business is divided into four key portfolios: healthcare, personal care, home care and foods. Their CHD business offers a range of healthcare products. Their IBD business includes brands, such as Dabur Amla and Vatika.
The company has 20 state-of-the-art manufacturing facilities spread across the globe. Of these, 12 production facilities are located in India with key manufacturing locations being Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal) besides seven factories located at Sahibabad (Uttar Pradesh), Jammu, Silvassa, Alwar, Katni, Narendrapur, Pithampur and Nasik. The Foods business is serviced by manufacturing facilities at Newai (Rajasthan) and Siliguri (West Bengal). Outside India, the company has manufacturing facilities in Dubai, Sharjah, Ras-al- Khaimah, Egypt, Nigeria, Nepal and Bangladesh.
The company has a wide distribution network, covering 6 million retail outlets with a high penetration in both urban and rural markets. Their products also have a huge presence in the overseas markets and are available in over 120 countries across the globe. Their brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue accounts for over 30% of the total turnover.
Dabur India Ltd was incorporated on September 16, 1975 for manufacture of high-grade edible & industrial guargum powder and its sophisticated derivatives. In the year 1978, the company launched Hajmola tablet, an Ayurvedic medicine used as a digestive aid. In the year 1979, they set Dabur Research Foundation. Also, they commenced commercial production at the most modern herbal medicines plant in Sahibabad. In the year 1986, the Company was converted into a Public Limited Company. In the year 1988, they launched the pharmaceutical medicines.
In the year 1989, the company converted the Ayurvedic digestive formulation into a children's fun product with the launch of Hajmola Candy. In the year 1992, they launched a new range of coconut oil under the brand name 'Anmol'. Also, they developed Dab 10, an intermediate for anti-cancer drug, 'Taxol'. The Company entered into a Joint Venture Agreement with Guldenhorst BV Netherland to form a Company for manufacture and marketing of all types of bubble gum, chewing gum, toffees, chocolate, cocoa related products and sugar based spreading creams etc.
In the year 1994, the company entered into capital market with their public issue. Also, they entered into oncology segment during the year. In the year 1996, the company entered into foods business with the launch of Real Fruit Juice, the first local brand of 100% pure natural fruit juices made to international standards. In 1997, the company set up a new manufacturing unit with a high degree of automation at Baddi (H.P.) to produce company's well-known brands, namely Chyawanprash, Janma Ghunti, Ayurvedic Oils and Asva-Arishtas.
In the year 1998, Burman family handed over management of the company to professionals. The company signed a joint venture with Bongrain International SA of France to form a new company under the name of Dabon International Ltd. In the year 1999, the company entered into an agreement with their Spanish partner Agrolimen to offload their 49% stake in the joint venture company General De Confiteria India Ltd in favor of an Agrolimen Group Company.
In the year 2000, the company launched Efarelle Comfort, a natural menstrual pain reliever. Also, the company's ayurvedic specialties division launched plain isabgol husk under the brand name Nature Care. In the year 2001, the company entered into the highly specialized area of cancer therapy.
In the year 2003, the company demerged their pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, the company 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. Also, they made a tie up with Free Markets Inc for using leading edge technologies to execute online markets for its procurement needs.
In the year 2005, the company acquired Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market for the consideration of Rs 143-crore all-cash deal. In the year 2006, Besta Cosmetics Ltd was amalgamated with the company with effect from April 1, 2006. Also, the company incorporated a subsidiary company under the name Asian Consumer Care Pakistan Pvt Ltd to sell FMCG products in Pakistan. In the year 2007, Dabur Foods Ltd was amalgamated with the company with effect from April 1, 2007 to extract synergies and unlock operational efficiencies.
During the year 2009-10, the company acquired 20% of the equity share capital of Fem Care Pharma Limited (FEM) from the public shareholders, in addition to the controlling stake of 72.15% acquired from their existing promoters thereby increasing the total controlling stake to 92.15%. Also, as per the scheme of amalgamation, Fem Care Pharma Ltd was amalgamated with the company with effect from April 1, 2009. The scheme became effective on June 18, 2010.
During the year 2010-11, the company acquired Turkey's leading personal care products maker Hobi Kosmetik Group through Dabur International Ltd, a wholly owned subsidiary of the company for USD 69 million. In January 2011, they acquired 100% equity in Namaste Laboratories LLC of the US, a leading ethnic hair care group based in Chicago with operations in US, Europe and Africa, through Dermoviva Skin Essentials Inc, a wholly owned subsidiary of the Company for USD 100 million. They launched India's first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched in Orange and Mango flavoured variants.
In the year 2011, the company launched their first-ever online shopping portal www.daburuveda.com. With this, the company 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. The company acquired Ajanta Pharma's over-the-counter energizer brand '30-Plus'.
In January 31, 2012, the company's step down subsidiary, Zeki Plastik Imalati Sanayi ve Ticaret Anonim Sirketi merged with another step down subsidiary - Hobi Kozmetik Imalat Sanayi Ve Ticaret Anonim Sirketi. Accordingly, Zeki Plastik Imalati Sanayi ve Ticaret Anonim Sirketi ceased to be the company's step down subsidiary company with effect from January 31, 2012.
In 2012, Namaste Cosmeticos Ltd, became new step down subsidiary Company in Brazil. The company also expanded its range of fruit juices viz. Real Activ.
In 2013, Dabur Enters Yoghurt Drink Market With Brand Real Activ. The company Expands Skin Care Portfolio and launches Oxy Life Gel Bleach. The company Launches New Fruit Juice Range: Real SupaFruits. Dabur Launches Indias First Oral Health Portal.
In 2014, Dabur Launches India's First Ayurvedic Medical Journal. The company also enters Packaged Coconut Water market with Real Activ.
In 2015 Dabur India Ltd inked an agreement with Starcom MediaVest Group (SMG). The company has introduced an array of professional salon facial products for men and women under the Oxlife brand. The company also introduced the sugar-free version of its popular ayurvedic product Chyawanprash named Ratnaprash SugarFree.
On 12 October 2015, Dabur India announced its entry into the Jasmine Hair Oil category with the launch of Vatika Jasmine Non-Sticky Coconut Hair Oil. The product, developed after extensive research, provides nourishment of coconut oil, jasmine extracts and is enriched with Silicon Oils that helps restore moisture balance in hair and give smooth, manageable less frizzy hair.
On 24 February 2016, Dabur India announced that it has inked a license agreement with the Government of India to commercially produce two new Ayurvedic drugs viz. Ayush-64 for treatment of Malaria and Ayush-82 for management of Diabetes. Dabur India also signed a Memorandum of Understanding (MoU) with the Central Council of Research in Ayurvedic Sciences (CCRAS), an apex research body under the Ministry of AYUSH, Government of India, for collaboration and co-operation in pharmaceutical R&D for different novel dosage forms and drug development in Ayurveda. Dabur India Ltd said it is preparing to commercially produce the two new Ayurvedic medicines within the next 6 months and these medicines will be available in various formats. The Ayurvedic formulations for both these medicines were developed by CCRAS.
On 1 November 2016, Dabur South Africa (Pty) Ltd announced an agreement with South Africa's CTL Group of Companies to acquire its Personal Care, Hair Care & Creams businesses for 18.8 million ZAR (around USD 1.5 million). Under the agreement, Dabur South Africa (Pty) Ltd - the wholly-owned subsidiary of Dabur International Ltd - will acquire the business of development, manufacturing, packaging and sale of Personal Care products (Hair Care and Creams) of CTL Contracting Proprietary Limited, in addition to certain equipment of Carbotec Laboratories Proprietary Limited and immovable property from CTL Management and Personnel Services Proprietary Limited. Dabur International Ltd is an overseas subsidiary of Dabur India.
On 7 February 2017, Dabur India's pure-play beauty retail venture NewU announced the launch of Sri Lanka's Ayurvedic beauty brand Spice Island in India. This marks the Indian entry of Spice Island, which will be available exclusively at NewU outlets across the country, and will feature a range of premium Skin Care, Bath & Body Care and Hair Care products.
On 14 March 2017, Dabur India announced the launch of first-ever Mobile Honey-Testing Lab in India. This unique on-the-go lab has been designed specially to check raw Honey at source to reduce adulteration in honey and ensure that purity is maintained.
On 29 March 2017, Dabur India announced the commissioning of its new manufacturing facility in Tezpur, Assam. The plant, set up with an investment of Rs 250 crore, is the most modern and environment friendly manufacturing facility in the consumer goods industry in India. The manufacturing facility, located in Balipara Industrial area, will manufacture the entire range of Dabur's Ayurvedic Medicines, Health Supplements, Hair Oils, Shampoos, Toothpastes, Skin Care and Home Care products. The new facility has been constructed in a record time of eight months since its ground-breaking in July 2016 and will house the most modern production lines for consumer products in India. The state-of-the-art manufacturing facility is spread over 30 acres of land and is expected to give a quantum leap to the capacity of Dabur India to meet the growing demand for its products.
On 26 September 2017, Dabur India announced its alliance with Amazon to take its products global. Dabur's collaboration with Amazon will help it expand and increase its product penetration into the US market. Under this collaboration, Amazon will help Dabur take around 30 products from its popular range such as, Vatika hair oil, Meswak toothpaste, Red toothpaste, Chyawanprash to name a few, to consumers in the US. Along with the existing wide range, Dabur will also offer an exclusive range of products specially created for Amazon's global customers. As part of this association, Amazon through its Global Selling Program will provide an avenue to Dabur to take its vast range of well-known and sough-after ayurvedic and natural products to millions of global customers on Amazon.com in the US and eventually across other Amazon marketplaces.
In year 2018-19, Dabur Herbal Toothpaste was relaunched with a refurbished marketing mix and packaging upgrade with enhanced
focus on ingredients. During fiscal 2019-20, the Company launched new products in India, mainly including Ethnic Masala Range of Juices in 2 additional variants, Masala Mixed Fruit and Masala Aam Panna, Real Mixed Berries Juice, Real Aloe Vera Kiwi Juice, Real Fruit ORS, Real Koolerz - INR 10 SKU of mango drink, Babool Ayurvedic Toothpaste, Dabur Glucoplus C - Mango Flavour, Amla Kids Hair Oil and Shampoo, Fem Fruit Crème Bleach, a range of 7 Ayurvedic Single Herb Churnas which includes three Immunity-boosters like GiloyChurna, Amla Churna and Ashwagandha Churna. The other products in this range are Hareetaki (Harad) Churna, Neem Churna, Arjun ChhalChurna and Brahmi Churna, Fem Fruit Crème Bleach, Nature Care Kabz Over for treatment of constipation, a new variant of Hajmola called the HajmolaChatpati Hing, two new fragrances in Odonil Aerosol, Floral Bliss and Ocean Breeze, Dabur ArshoghaniVati, an Ayurvedic medicine beneficial for treatment of piles, Dabur Tulsi drops, Dabur Immunity Kit, Dabur Amla Juice, Dabur Giloy-Neem-Tulsi Juice, Dabur Hand Sanitize, Dabur &Dazzl Surface Sanitizers and Odonil Air Sanitizer. In Overseas markets, it launched VatikaMenz Hair Tonic, Dabur Amla Keratin Serum, Dabur Herbolene Natural Jelly, Real Juices in UAE, Japan and Bahrain, Vatika Hair Wax, ORS Olive Oil Fix-It Range, Vatika Hair Food and Dabur Honitus Herbal Lozenges in UAE. In terms of distribution, the Company increased its direct reach from 1.1 million to 1.2 million, taking the total reach to 6.7 million outlets. Excel Investments (FZC) (previously FZE), in Sharjah, UAE, had become a step down subsidiary company of Dabur India Limited w.e.f. 20th August, 2019 upon acquisition of management control of this new subsidiary by Dabur International Limited (a wholly owned subsidiary of Dabur India Limited).
During the year 2020-21, Company expanded their portfolio with the launch of new brands like Dabur Vedic Suraksha Tea, Dabur Pure Herbs tablets and Dabur Himalayan Apple Cider Vinegar. It launched the Dabur Vedic Suraksha Tea. The growth in this portfolio was led by immunity-building medicines like Giloy Ghanvati tablets, Stresscom (Ashwagandha) capsules and premium Chyawanprash variant Ratnaprash. A host of new products were also launched during the year, like Dabur Nasal Drops, to expand the Dabur Ayurvedic Ethicals portfolio. Apart from these, the Company entered the Siddha medicines market with the launch of Kabasura Kudineer, which possesses strong anti-inflammatory, analgesic, anti-viral, anti-bacterial, anti-fungal, antioxidant, hepato-protective, anti-pyretic, anti-asthmatic and immunomodulatory properties. Herbodynamic India Limited was incorporated on 24 February, 2021 as a wholly owned subsidiary Company of the Company. The Company expanded the Honey portfolio with the launch of Tulsi Honey and Ashwagandha Honey.
During the year 2022, the Company focused on their power brands, comprising of Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus, Pudin Hara, Dabur Red Paste, Dabur Amla Hair Oil, Real and Vatika. In terms of distribution network, they increased direct reach from 1.28 million to 1.31 million, taking the total reach to 6.9 million outlets. It also added another exclusive brand London Notes' for fragrances category and launched body mists. It launched various new products such as Dabur Vatika Shampoo, PET Fruit Juice etc.
During the year 2022-23, Herbodynamic India Limited, which was a wholly owned subsidiary of the Company has ceased to be subsidiary of the Company w.e.f. January 11, 2023. Asian Consumer Care Private Limited (Bangladesh), step down subsidiary of the Company had become a step down wholly owned subsidiary of the Company w.e.f. November 24, 2022, upon acquisition of remaining 24% of equity shares held by the Joint Venture partner- M/s Advanced Chemicals Industries Limited. Further, post-acquisition, name of Asian Consumer Care Private Limited was changed to Dabur Bangladesh Private Limited w.e.f. February 16, 2023. The Company had acquired 51% equity shareholding of Badshah Masala Private Limited from its existing shareholders and promoters and consequently upon the acquisition, Badshah has become a subsidiary of the Company w.e.f. January 2, 2023.
The Company launched Dabur Cool King Hair Oil during the year 2022-23. New product like Vatika Ayurvedic Shampoo, Dabur Herb'l Toothpaste Range, Hajmola LimCola and ChatCola variants, Badam Amla Hair Oil, and Dabur Baby were also introduced in the market taking the count to 25. Herbal Plus (with ingredients like Ginger, coconut, and baking soda) and Herb'l Kids, got launched during 2023.
Dabur India Ltd
Company History
Dabur India Ltd is one of the leading FMCG Companies in India and a global leader in Ayurveda with a portfolio of over 250 Herbal and Ayurvedic products. The Company operate in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. Their FMCG portfolio 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, Real for fruit juices and beverages and Fem for fairness bleaches and skin care products.
The Company operates through three Strategic Business Units, Consumer Care Division (CCD), International Business Division (IBD) and Consumer Health Division (CHD). Their CCD business is divided into four key portfolios: healthcare, personal care, home care and foods. Their CHD business offers a range of healthcare products. Their IBD business includes brands, such as Dabur Amla and Vatika.
The company has 20 state-of-the-art manufacturing facilities spread across the globe. Of these, 12 production facilities are located in India with key manufacturing locations being Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal) besides seven factories located at Sahibabad (Uttar Pradesh), Jammu, Silvassa, Alwar, Katni, Narendrapur, Pithampur and Nasik. The Foods business is serviced by manufacturing facilities at Newai (Rajasthan) and Siliguri (West Bengal). Outside India, the company has manufacturing facilities in Dubai, Sharjah, Ras-al- Khaimah, Egypt, Nigeria, Nepal and Bangladesh.
The company has a wide distribution network, covering 6 million retail outlets with a high penetration in both urban and rural markets. Their products also have a huge presence in the overseas markets and are available in over 120 countries across the globe. Their brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenue accounts for over 30% of the total turnover.
Dabur India Ltd was incorporated on September 16, 1975 for manufacture of high-grade edible & industrial guargum powder and its sophisticated derivatives. In the year 1978, the company launched Hajmola tablet, an Ayurvedic medicine used as a digestive aid. In the year 1979, they set Dabur Research Foundation. Also, they commenced commercial production at the most modern herbal medicines plant in Sahibabad. In the year 1986, the Company was converted into a Public Limited Company. In the year 1988, they launched the pharmaceutical medicines.
In the year 1989, the company converted the Ayurvedic digestive formulation into a children's fun product with the launch of Hajmola Candy. In the year 1992, they launched a new range of coconut oil under the brand name 'Anmol'. Also, they developed Dab 10, an intermediate for anti-cancer drug, 'Taxol'. The Company entered into a Joint Venture Agreement with Guldenhorst BV Netherland to form a Company for manufacture and marketing of all types of bubble gum, chewing gum, toffees, chocolate, cocoa related products and sugar based spreading creams etc.
In the year 1994, the company entered into capital market with their public issue. Also, they entered into oncology segment during the year. In the year 1996, the company entered into foods business with the launch of Real Fruit Juice, the first local brand of 100% pure natural fruit juices made to international standards. In 1997, the company set up a new manufacturing unit with a high degree of automation at Baddi (H.P.) to produce company's well-known brands, namely Chyawanprash, Janma Ghunti, Ayurvedic Oils and Asva-Arishtas.
In the year 1998, Burman family handed over management of the company to professionals. The company signed a joint venture with Bongrain International SA of France to form a new company under the name of Dabon International Ltd. In the year 1999, the company entered into an agreement with their Spanish partner Agrolimen to offload their 49% stake in the joint venture company General De Confiteria India Ltd in favor of an Agrolimen Group Company.
In the year 2000, the company launched Efarelle Comfort, a natural menstrual pain reliever. Also, the company's ayurvedic specialties division launched plain isabgol husk under the brand name Nature Care. In the year 2001, the company entered into the highly specialized area of cancer therapy.
In the year 2003, the company demerged their pharmaceuticals business from the FMCG business into a separate company as part of plans to provider greater focus to both the businesses. With this, the company 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. Also, they made a tie up with Free Markets Inc for using leading edge technologies to execute online markets for its procurement needs.
In the year 2005, the company acquired Balsara's Hygiene and Home products businesses, a leading provider of Oral Care and Household Care products in the Indian market for the consideration of Rs 143-crore all-cash deal. In the year 2006, Besta Cosmetics Ltd was amalgamated with the company with effect from April 1, 2006. Also, the company incorporated a subsidiary company under the name Asian Consumer Care Pakistan Pvt Ltd to sell FMCG products in Pakistan. In the year 2007, Dabur Foods Ltd was amalgamated with the company with effect from April 1, 2007 to extract synergies and unlock operational efficiencies.
During the year 2009-10, the company acquired 20% of the equity share capital of Fem Care Pharma Limited (FEM) from the public shareholders, in addition to the controlling stake of 72.15% acquired from their existing promoters thereby increasing the total controlling stake to 92.15%. Also, as per the scheme of amalgamation, Fem Care Pharma Ltd was amalgamated with the company with effect from April 1, 2009. The scheme became effective on June 18, 2010.
During the year 2010-11, the company acquired Turkey's leading personal care products maker Hobi Kosmetik Group through Dabur International Ltd, a wholly owned subsidiary of the company for USD 69 million. In January 2011, they acquired 100% equity in Namaste Laboratories LLC of the US, a leading ethnic hair care group based in Chicago with operations in US, Europe and Africa, through Dermoviva Skin Essentials Inc, a wholly owned subsidiary of the Company for USD 100 million. They launched India's first fruit-flavoured Chyawanprash. Dabur Chyawanprash was launched in Orange and Mango flavoured variants.
In the year 2011, the company launched their first-ever online shopping portal www.daburuveda.com. With this, the company 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. The company acquired Ajanta Pharma's over-the-counter energizer brand '30-Plus'.
In January 31, 2012, the company's step down subsidiary, Zeki Plastik Imalati Sanayi ve Ticaret Anonim Sirketi merged with another step down subsidiary - Hobi Kozmetik Imalat Sanayi Ve Ticaret Anonim Sirketi. Accordingly, Zeki Plastik Imalati Sanayi ve Ticaret Anonim Sirketi ceased to be the company's step down subsidiary company with effect from January 31, 2012.
In 2012, Namaste Cosmeticos Ltd, became new step down subsidiary Company in Brazil. The company also expanded its range of fruit juices viz. Real Activ.
In 2013, Dabur Enters Yoghurt Drink Market With Brand Real Activ. The company Expands Skin Care Portfolio and launches Oxy Life Gel Bleach. The company Launches New Fruit Juice Range: Real SupaFruits. Dabur Launches Indias First Oral Health Portal.
In 2014, Dabur Launches India's First Ayurvedic Medical Journal. The company also enters Packaged Coconut Water market with Real Activ.
In 2015 Dabur India Ltd inked an agreement with Starcom MediaVest Group (SMG). The company has introduced an array of professional salon facial products for men and women under the Oxlife brand. The company also introduced the sugar-free version of its popular ayurvedic product Chyawanprash named Ratnaprash SugarFree.
On 12 October 2015, Dabur India announced its entry into the Jasmine Hair Oil category with the launch of Vatika Jasmine Non-Sticky Coconut Hair Oil. The product, developed after extensive research, provides nourishment of coconut oil, jasmine extracts and is enriched with Silicon Oils that helps restore moisture balance in hair and give smooth, manageable less frizzy hair.
On 24 February 2016, Dabur India announced that it has inked a license agreement with the Government of India to commercially produce two new Ayurvedic drugs viz. Ayush-64 for treatment of Malaria and Ayush-82 for management of Diabetes. Dabur India also signed a Memorandum of Understanding (MoU) with the Central Council of Research in Ayurvedic Sciences (CCRAS), an apex research body under the Ministry of AYUSH, Government of India, for collaboration and co-operation in pharmaceutical R&D for different novel dosage forms and drug development in Ayurveda. Dabur India Ltd said it is preparing to commercially produce the two new Ayurvedic medicines within the next 6 months and these medicines will be available in various formats. The Ayurvedic formulations for both these medicines were developed by CCRAS.
On 1 November 2016, Dabur South Africa (Pty) Ltd announced an agreement with South Africa's CTL Group of Companies to acquire its Personal Care, Hair Care & Creams businesses for 18.8 million ZAR (around USD 1.5 million). Under the agreement, Dabur South Africa (Pty) Ltd - the wholly-owned subsidiary of Dabur International Ltd - will acquire the business of development, manufacturing, packaging and sale of Personal Care products (Hair Care and Creams) of CTL Contracting Proprietary Limited, in addition to certain equipment of Carbotec Laboratories Proprietary Limited and immovable property from CTL Management and Personnel Services Proprietary Limited. Dabur International Ltd is an overseas subsidiary of Dabur India.
On 7 February 2017, Dabur India's pure-play beauty retail venture NewU announced the launch of Sri Lanka's Ayurvedic beauty brand Spice Island in India. This marks the Indian entry of Spice Island, which will be available exclusively at NewU outlets across the country, and will feature a range of premium Skin Care, Bath & Body Care and Hair Care products.
On 14 March 2017, Dabur India announced the launch of first-ever Mobile Honey-Testing Lab in India. This unique on-the-go lab has been designed specially to check raw Honey at source to reduce adulteration in honey and ensure that purity is maintained.
On 29 March 2017, Dabur India announced the commissioning of its new manufacturing facility in Tezpur, Assam. The plant, set up with an investment of Rs 250 crore, is the most modern and environment friendly manufacturing facility in the consumer goods industry in India. The manufacturing facility, located in Balipara Industrial area, will manufacture the entire range of Dabur's Ayurvedic Medicines, Health Supplements, Hair Oils, Shampoos, Toothpastes, Skin Care and Home Care products. The new facility has been constructed in a record time of eight months since its ground-breaking in July 2016 and will house the most modern production lines for consumer products in India. The state-of-the-art manufacturing facility is spread over 30 acres of land and is expected to give a quantum leap to the capacity of Dabur India to meet the growing demand for its products.
On 26 September 2017, Dabur India announced its alliance with Amazon to take its products global. Dabur's collaboration with Amazon will help it expand and increase its product penetration into the US market. Under this collaboration, Amazon will help Dabur take around 30 products from its popular range such as, Vatika hair oil, Meswak toothpaste, Red toothpaste, Chyawanprash to name a few, to consumers in the US. Along with the existing wide range, Dabur will also offer an exclusive range of products specially created for Amazon's global customers. As part of this association, Amazon through its Global Selling Program will provide an avenue to Dabur to take its vast range of well-known and sough-after ayurvedic and natural products to millions of global customers on Amazon.com in the US and eventually across other Amazon marketplaces.
In year 2018-19, Dabur Herbal Toothpaste was relaunched with a refurbished marketing mix and packaging upgrade with enhanced
focus on ingredients. During fiscal 2019-20, the Company launched new products in India, mainly including Ethnic Masala Range of Juices in 2 additional variants, Masala Mixed Fruit and Masala Aam Panna, Real Mixed Berries Juice, Real Aloe Vera Kiwi Juice, Real Fruit ORS, Real Koolerz - INR 10 SKU of mango drink, Babool Ayurvedic Toothpaste, Dabur Glucoplus C - Mango Flavour, Amla Kids Hair Oil and Shampoo, Fem Fruit Crème Bleach, a range of 7 Ayurvedic Single Herb Churnas which includes three Immunity-boosters like GiloyChurna, Amla Churna and Ashwagandha Churna. The other products in this range are Hareetaki (Harad) Churna, Neem Churna, Arjun ChhalChurna and Brahmi Churna, Fem Fruit Crème Bleach, Nature Care Kabz Over for treatment of constipation, a new variant of Hajmola called the HajmolaChatpati Hing, two new fragrances in Odonil Aerosol, Floral Bliss and Ocean Breeze, Dabur ArshoghaniVati, an Ayurvedic medicine beneficial for treatment of piles, Dabur Tulsi drops, Dabur Immunity Kit, Dabur Amla Juice, Dabur Giloy-Neem-Tulsi Juice, Dabur Hand Sanitize, Dabur &Dazzl Surface Sanitizers and Odonil Air Sanitizer. In Overseas markets, it launched VatikaMenz Hair Tonic, Dabur Amla Keratin Serum, Dabur Herbolene Natural Jelly, Real Juices in UAE, Japan and Bahrain, Vatika Hair Wax, ORS Olive Oil Fix-It Range, Vatika Hair Food and Dabur Honitus Herbal Lozenges in UAE. In terms of distribution, the Company increased its direct reach from 1.1 million to 1.2 million, taking the total reach to 6.7 million outlets. Excel Investments (FZC) (previously FZE), in Sharjah, UAE, had become a step down subsidiary company of Dabur India Limited w.e.f. 20th August, 2019 upon acquisition of management control of this new subsidiary by Dabur International Limited (a wholly owned subsidiary of Dabur India Limited).
During the year 2020-21, Company expanded their portfolio with the launch of new brands like Dabur Vedic Suraksha Tea, Dabur Pure Herbs tablets and Dabur Himalayan Apple Cider Vinegar. It launched the Dabur Vedic Suraksha Tea. The growth in this portfolio was led by immunity-building medicines like Giloy Ghanvati tablets, Stresscom (Ashwagandha) capsules and premium Chyawanprash variant Ratnaprash. A host of new products were also launched during the year, like Dabur Nasal Drops, to expand the Dabur Ayurvedic Ethicals portfolio. Apart from these, the Company entered the Siddha medicines market with the launch of Kabasura Kudineer, which possesses strong anti-inflammatory, analgesic, anti-viral, anti-bacterial, anti-fungal, antioxidant, hepato-protective, anti-pyretic, anti-asthmatic and immunomodulatory properties. Herbodynamic India Limited was incorporated on 24 February, 2021 as a wholly owned subsidiary Company of the Company. The Company expanded the Honey portfolio with the launch of Tulsi Honey and Ashwagandha Honey.
During the year 2022, the Company focused on their power brands, comprising of Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus, Pudin Hara, Dabur Red Paste, Dabur Amla Hair Oil, Real and Vatika. In terms of distribution network, they increased direct reach from 1.28 million to 1.31 million, taking the total reach to 6.9 million outlets. It also added another exclusive brand London Notes' for fragrances category and launched body mists. It launched various new products such as Dabur Vatika Shampoo, PET Fruit Juice etc.
During the year 2022-23, Herbodynamic India Limited, which was a wholly owned subsidiary of the Company has ceased to be subsidiary of the Company w.e.f. January 11, 2023. Asian Consumer Care Private Limited (Bangladesh), step down subsidiary of the Company had become a step down wholly owned subsidiary of the Company w.e.f. November 24, 2022, upon acquisition of remaining 24% of equity shares held by the Joint Venture partner- M/s Advanced Chemicals Industries Limited. Further, post-acquisition, name of Asian Consumer Care Private Limited was changed to Dabur Bangladesh Private Limited w.e.f. February 16, 2023. The Company had acquired 51% equity shareholding of Badshah Masala Private Limited from its existing shareholders and promoters and consequently upon the acquisition, Badshah has become a subsidiary of the Company w.e.f. January 2, 2023.
The Company launched Dabur Cool King Hair Oil during the year 2022-23. New product like Vatika Ayurvedic Shampoo, Dabur Herb'l Toothpaste Range, Hajmola LimCola and ChatCola variants, Badam Amla Hair Oil, and Dabur Baby were also introduced in the market taking the count to 25. Herbal Plus (with ingredients like Ginger, coconut, and baking soda) and Herb'l Kids, got launched during 2023.
Dabur India Ltd
Directors Reports
To,
The Members,
Your directors have pleasure in presenting the 48th Annual Report on the
business and operations of the Company, together with the audited financial statements for
financial year ended March 31, 2023 ("FY 2022-23").
FINANCIAL RESULTS
The standalone and consolidated financial performance of Company is summarised in the
table below:
(` in crores)
| Particulars |
Consolidated |
Standalone |
|
FY 2022-23 |
FY 2021-22 |
FY 2022-23 |
FY 2021-22 |
| Revenue from |
11,975.28 |
11,281.84 |
9,076.52 |
8,521.05 |
| Operations including other Income |
|
|
|
|
| Less: Expenses |
|
|
|
|
| Cost of goods sold |
6,268.67 |
5,639.69 |
4,855.01 |
4,377.21 |
| Employee benefits expenses |
1,137.00 |
1,079.95 |
725.96 |
678.71 |
| Finance cost |
78.24 |
38.60 |
46.37 |
18.67 |
| Depreciation and Amortization expenses |
310.96 |
252.89 |
188.29 |
160.39 |
| Other Expenses |
1,960.10 |
1,915.23 |
1,402.57 |
1,389.76 |
| Total Expenses |
9,754.97 |
8,926.36 |
7,218.20 |
6,624.74 |
| Profit before share of profit from joint venture and exceptional items and tax |
2,220.31 |
2,355.48 |
NA |
NA |
| Share of profit/(loss) of Joint Venture |
(1.63) |
(1.80) |
NA |
NA |
| Profit before exceptional2,218.68 items and tax |
|
2,353.68 |
1,858.32 |
1,896.31 |
| Exceptional items |
- |
(85.00) |
(29.65) |
- |
| Profit before tax |
2,218.68 |
2,268.68 |
1,828.67 |
1,896.31 |
| Tax expense |
517.35 |
526.38 |
455.41 |
463.38 |
| Net Profit for the year |
1,701.33 |
1,742.30 |
1,373.26 |
1,432.93 |
| Other comprehensive income / (loss) for the year |
(225.39) |
(88.42) |
(80.56) |
(28.03) |
| Total comprehensive income for the year |
1,475.94 |
1,653.88 |
1,292.70 |
1,404.90 |
| Total comprehensive income attributable to - |
|
|
|
|
| Owners of the Holding Company |
1481.66 |
1,650.02 |
NA |
NA |
| Non-Controlling interest |
(5.72) |
3.86 |
NA |
NA |
TRANSFER TO RESERVES
There is no amount proposed to be transferred to reserves.
DIVIDEND
The Company has paid an interim dividend of Rs.2.50 per share of Re.1/- each fully paid
up (being 250%) on November
17, 2022. We are pleased to recommend a final dividend of Rs.2.70 per equity share of
Re.1/- each fully paid up (being 270%) for FY 2022-23. The dividend recommended, if
approved by the members, will be paid to the members within the period stipulated under
the Companies Act, 2013 ("the Act"). The aggregate dividend for the year will
amount to Rs.5.20 per equity share of Re.1/- each fully paid up (being 520%) being same
i.e. Rs.5.20 per share of Re.1/- each fully paid up (being 520%) declared last year. The
dividend payout ratio for the current year is at 54.15%. The dividend recommended is in
accordance with the Company's Dividend Distribution Policy.
Dividend Distribution Policy
To bring transparency in the matter of declaration of dividend and protect the
interests of investors, Dabur had in place a Dividend Policy since long. The Policy was
revised in the board meeting held on May 07, 2021 in accordance with Regulation 43A of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing
Regulations") and the Act and has been displayed on the Company's website at link
https://www.dabur.com/sites/ default/files/2021-05/166-Dividend-Distribution-Policy_0.pdf
Unpaid/ unclaimed Dividend
Pursuant to the provisions of Section 124(5) of the Act, final dividend for FY 2014-15
amounting to Rs. 38,85,694/- and interim dividend for FY 2015-16 amounting to Rs.
62,53,174/- which remained unpaid/ unclaimed for a period of 7 years, from the date it was
lying in the unpaid dividend account, has been transferred by the Company to the Investors
Education and Protection Fund ("IEPF") of the Central Government. The due dates
for transfer of unpaid dividend to IEPF for subsequent years is provided in the Corporate
Governance Report. The list of unpaid dividend declared up to FY 2021-22 (updated up to
the date of 47th Annual General Meeting held on August 12, 2022) and for
interim dividend declared during FY 2022-23 is available on Company's website
www.dabur.com. Shareholders are requested to check the said lists and if any dividend due
to them remains unpaid in the said lists, can approach the Company for release of their
unpaid dividend.
FINANCIAL STATEMENTS
As per the provisions of the Act and in accordance with the Circulars issued by the
Ministry of Corporate Affairs ("MCA") and Securities and Exchange Board of India
(SEBI), from time to time, the Annual Report 2022-23 containing Balance
Sheet, Statement of Profit & Loss, other statements and notes thereto, including
consolidated financial statements, prepared as per the requirements of Schedule III to the
Act, Directors' Report (including Integrated Reporting and Management Discussion &
Analysis and Corporate Governance Report) is being sent to all shareholders through
permitted mode.
The Annual Report 2022-23 is also available at the Company's website at www.dabur.com.
Consolidated Financial Statements
In compliance with the applicable provisions of the Act including the Indian Accounting
Standard Ind AS 110 on Consolidated Financial Statements, this Annual Report also includes
Consolidated Financial Statements for FY 2022-23. During FY 2022-23, Consolidated Total
Income was Rs.11,975.28 crores as against Rs.11,281.84 crores in the previous year
yielding a growth of 6.15%. Further, Net Profit after Tax (after minority interest) for
the year stood at Rs.1707.15 crores as against Rs.1,739.22 crores in the previous year.
OPERATIONS AND BUSINESS PERFORMANCE
Kindly refer to the Integrated Reporting and Management Discussion & Analysis and
Corporate Governance Report which forms part of this report.
CORPORATE GOVERNANCE
Good governance practices are a norm at Dabur. The Company is committed to focus on
long term value creation and protecting stakeholders' interests by applying proper care,
skill and diligence to business decisions. Besides complying with the legal framework of
corporate governance practices, Dabur has voluntarily adopted and evolved various
practices of governance conforming to highest ethical and responsible standards of
business, globally benchmarked. The Company has also formulated a Policy on Group
Governance to monitor the governance of its unlisted subsidiaries across the globe.
The report on Corporate Governance as stipulated under the Listing Regulations forms
part of the Annual Report.
A certificate from Auditors of the Company regarding compliance of the conditions of
Corporate Governance, as stipulated under Schedule V of the Listing Regulations is annexed
as "Annexure 1" and forms part of this report.
BUSINESS RESPONSIBILITYAND SUSTAINABILITY REPORT
At Dabur, fulfilment of environmental, social and governance responsibility is an
integral part of the way the Company conducts its business.
In terms of the Regulation 34 of the Listing Regulations, the Business Responsibility
and Sustainability Report is available on the website of the Company www.dabur.com at
weblink https://www.dabur.com/investor/financial-information/
reports/1271/Business-Responsibility-Reports . Any Member interested in obtaining a
physical copy of the same may write to the Company Secretary at the Registered Office of
the Company.
CREDIT RATING
During the year, the Company has sustained its long-term bank facility credit rating of
AAA (Stable) which has been reaffirmed by CRISIL. The highest credit rating of AAA awarded
by CRISIL reflects the highest degree of safety regarding timely servicing of financial
obligations. Further CRISIL has reaffirmed the rating of NCD programme of the Company as
AAA (Stable). The rating indicates highest degree of safety regarding timely servicing of
financial obligation. The rated instrument carries lowest credit risk. The Company's short
term bank facility credit rated as A1+ by CRISIL, has been reaffirmed. The rating of A1+
for Commercial Paper has also been reaffirmed by CRISIL. This highest rating of A1+
indicates a very strong degree of safety with regard to timely payment of interest &
principal. Such instruments carry lowest credit risk.
Further, ICRA has reaffirmed the rating on long term NCD programme of the Company as
AAA (Stable) and assigned the rating on the proposed NCD programme of the Company as AAA
(Stable). The rating indicates highest degree of safety regarding timely servicing of
financial obligation. The rated instrument carries lowest credit risk and the outlook on
the long-term rating is stable. ICRA has also assigned the rating on the Bank limits
(rated on long term and short scale) of Rs. 1,000 crores of the Company. Long term Bank
limits have been rated as AAA and Short-term limits as A1+. Outlook on the long-term
Rating is stable.
DIRECTORS
Pursuant to Sections 149, 152 and other applicable provisions of the Act, one-third of
such of the Directors as are liable to retire by rotation, shall retire every year and, if
eligible, offer themselves for re-appointment at every Annual General Meeting (AGM).
Consequently, Mr. Amit Burman (DIN: 00042050), director will retire by rotation at the
ensuing AGM, and being eligible, offers himself for re-appointment in accordance with
provisions of the Act.
Mr. P. D. Narang (DIN: 00021581) was re-appointed as a Whole time Director of the
Company designated as Group Director– Corporate Affairs for a period of 5 years from
April 1, 2023 to March 31, 2028 by the Members at the AGM of the Company held on August
12, 2022 and accordingly will continue to be a Key Managerial Personnel of the Company.
Mr. Rajiv Mehrishi (DIN: 00208189) was appointed as a Non-Executive Independent
Director of the Company for a period of 5 consecutive years from September 01, 2021 to
August 31, 2026 by the Members at the AGM of the Company held on August 12, 2022.
Mr. Mohit Malhotra (DIN: 08346826) was appointed as the whole-time director of the
Company for a period of five years w.e.f. January 31, 2019, and his tenure shall end on
January 30, 2024. In terms of Sections 196, 197, 198, 203 and other applicable provisions
of the Act and upon recommendation of the Nomination and Remuneration Committee, the Board
of Directors of the Company in their meeting held on May 04, 2023 have re-appointed him as
a Whole Time Director and
Chief Executive Officer of the Company for a further period of 5 years with effect from
January 31, 2024 to January 30, 2029 and have recommended his re-appointment for approval
of the members at the ensuing AGM.
As per Sections 149, 150 and 152 read with Schedule IV of the Act, the Company had
appointed Mr. Ajit Mohan Sharan (DIN: 02458844) as Non-Executive Independent Director of
the Company for a term of 5 (five) consecutive years w.e.f. January 31, 2019 to January
30, 2024. He is eligible for re-appointment as Independent Director. Considering the good
performance evaluation report of the director, the Board of Directors of the Company, on
the recommendation of Nomination and Remuneration Committee, in their meeting held on May
04, 2023 have re-appointed him for a second term of 5 (five) consecutive years, with
effect from January 31, 2024 to January 30, 2029, subject to approval of shareholders in
the ensuing AGM. The Company has received necessary disclosures and notice with respect to
re-appointment of Mr. Ajit Mohan Sharan.
Further,pursuanttoSections149,152,161readwithSchedule IV and other applicable
provisions of the Act, Companies (Appointment and Qualification of Directors) Rules, 2014
and Listing Regulations and upon recommendation of Nomination and Remuneration Committee,
the Board of Directors of the Company at their meeting held on May 4, 2023 have appointed
Mrs. Satyavati Berera (DIN: 05002709) as an Additional Director in the category of
Non-Executive Independent Director of the Company w.e.f. June 01, 2023 for a period of 5
consecutive years till May 31, 2028, subject to approval of the shareholders at the
ensuing AGM, for a period of 5 consecutive years from the date of appointment. The Company
has received necessary disclosures and notice with respect to appointment of Mrs. Berera.
After close of the FY 2022-23, Dr. Anand Chand Burman (DIN: 00056216) who was appointed
on March 25, 2022 as an alternate director to Mr. Amit Burman (DIN:00042050),
Non-Executive Promoter Director, has ceased from the position of Alternate Director on
April 8, 2023, upon return of Mr. Amit Burman to India.
A brief resume of the directors being appointed/ re-appointed, the nature of expertise
in specific functional areas, names of companies in which they hold directorships,
committee memberships/ chairmanships, their shareholding in the Company, etc., have been
furnished in the explanatory statement to the notice of the ensuing AGM.
The Nomination and Remuneration Committee and the Board of Directors of the Company
recommend their appointment / reappointment at the ensuing AGM.
The Company has received necessary declaration from all the Independent Directors under
Section 149(7) of the Act and Regulation 25(8) of the Listing Regulations confirming that
they meet the criteria of independence as laid down in Section 149(6) of the Act and
Regulation 16(1)(b) of the Listing Regulations. The Company has also received from them
declaration of compliance of Rule 6(1) & (2) of the Companies (Appointment and
Qualifications of Directors) Rules, 2014, regarding online registration with the Indian
Institute of Corporate Affairs, Manesar, for inclusion/ renewal of name in the data bank
of Independent Directors. With regard to integrity, expertise and experience (including
the proficiency) of the Independent Directors, the Board of Directors have taken on record
the declarations and confirmations submitted by the Independent Directors and is of the
opinion that they are persons of integrity and possesses relevant expertise and experience
and their continued association as Director will be of immense benefit and in the best
interest of the Company. With regard to proficiency of the independent Directors,
ascertained from the online proficiency self-assessment conducted by the Institute, as
notified under Section 150(1) of the Act, the Board of Directors have taken on record the
information submitted by Independent Directors that they have complied with the applicable
laws.
None of the Directors of the Company are related inter-se except for Dr. Anand Chand
Burman (alternate director to Mr. Amit Burman), who is father of Mr. Aditya Burman, in
terms of Section 2(77) of the Act including rules made thereunder.
Key Managerial Personnel
As at March 31, 2023, following are the Key Managerial Personnel (KMP) of the Company
as per Sections 2(51) and 203 of the Act: z Mr. Pritam Das Narang, Whole time
director z Mr. Mohit Malhotra, Whole time director & Chief Executive officer z
Mr. Ashok Kumar Jain, Executive Vice President (Finance) and Company Secretary z
Mr. Ankush Jain, Chief Financial Officer.
Policy on Directors' appointment and Policy on remuneration
Pursuant to Section 134(3)(e) and Section 178(3) of the Act, the policy on appointment
of Board members including criteria for determining qualifications, positive attributes,
independence of a director and the policy on remuneration of directors, KMP and other
employees are annexed as "Annexure 2 & 3" respectively to this report. The
same are also available on the website of the Company at www.dabur.com at weblink https://
www.dabur.com/sites/default/files/2021-05/111972-policy-on-appointment-of-board-members.pdf
Particulars of remuneration of Directors/ KMP/ Employees
Disclosures pertaining to remuneration and other details as required under Section
197(12) of the Act and Rule 5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is annexed as ‘Annexure 4A' to this report.
Further, in terms of the provisions of Section 197(12) of the Act read with Rule 5(2) and
5(3) of the aforesaid Rules, a statement showing the names and other particulars of
employees drawing remuneration in excess of the limits set out in the said rules is
annexed as ‘Annexure 4B' to this report.
Employees Stock Option Plan
During FY 2022-23, 46,83,795 options were granted to eligible employees of the Company
in terms of Employees Stock Option Plan (Dabur ESOP 2000).
Further, during the year under review, there have been no changes in the Employees
Stock Option Plan (Dabur ESOP 2000) of the Company. Further, it is confirmed that the ESOP
Scheme of the Company is in compliance with (Share Based Employee Benefits and Sweat
Equity) Regulations, 2021.
The applicable disclosures as stipulated under Regulation 14 of SEBI (Share Based
Employee Benefits and Sweat Equity)
Regulations, 2021 with regard to Employees Stock Option Plan of the Company are
available on the website of the Company at www.dabur.com and web link for the same is
https://www.dabur.com/investor/investor-information/esops
A certificate from the Secretarial Auditors of the Company certifying that the Employee
Stock Option Scheme of the Company is implemented in accordance with the SEBI
(Share Based Employee Benefits and Sweat Equity)
Regulations, 2021 and in accordance with the resolutions passed in the General Body
Meetings will be available for inspection during the AGM to any person having right to
attend the meeting.
Performance Evaluation of the Board, its Committees and Individual Directors including
Independent Directors
Pursuant to applicable provisions of the Act and the Listing Regulations, the Board, in
consultation with its Nomination and Remuneration Committee, has formulated a framework
containing, inter-alia, the criteria for performance evaluation of the entire Board of the
Company, its Committees and individual directors, including Independent Directors. The
framework is monitored, reviewed and updated by the Board, in consultation with the
Nomination and Remuneration Committee, based on need and new compliance requirements.
The annual performance evaluation of the Board, its Committees and each Director has
been carried out for the FY 2022-23 in accordance with the framework. The details of
evaluation process of the Board, its Committees and individual directors, including
independent directors have been provided under the Corporate Governance Report which forms
part of this Report.
Directors' Responsibility Statement
Pursuant to the provisions under Section 134(3)(c) and 134(5) of the Act, with respect
to Directors' Responsibility Statement, the Directors confirm:
a) That in the preparation of the annual accounts, the applicable accounting standards
had been followed and no material departures have been made from the same;
b) That they had selected such accounting policies and applied them consistently, and
made judgements and estimates that are reasonable and prudent, so as to give a true and
fair view of the state of affairs of the Company at the end of the financial year and of
the profit and loss of the Company for that period;
c) That they had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 2013, for
safeguarding the assets of the Company and for preventing and detecting fraud and other
irregularities;
d) That they had prepared the annual accounts on a going concern basis;
e) That they had laid down internal financial controls to be followed by the company
and that such internal financial controls are adequate and were operating effectively; and
f) That they had devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating effectively.
STATUTORY AUDITORS AND THEIR REPORT
Pursuant to the provisions of Section 139 of the Act and Rules made thereunder, M/s. G.
Basu & Co., Chartered Accountants (Firm Registration No. 301174E) were appointed as
Statutory Auditors of the Company for a term of five consecutive years, to hold office
from the conclusion of the 47 th AGM held on August 12, 2022 until the
conclusion of 52nd AGM of the Company to be held in the calendar year 2027.
M/s G. Basu & Co., Chartered Accountants, have submitted their Report on the
Financial Statements of the Company for the FY 2022-23, which forms part of the Annual
Report 2022-23. There are no observations (including any qualification, reservation,
adverse remark or disclaimer) of the Auditors in the Audit Reports issued by them which
call for any explanation/comment from the Board of Directors.
The Auditors have also confirmed that they have subjected themselves to the peer review
process of Institute of Chartered Accountants of India (ICAI) and hold a valid certificate
issued by the Peer Review Board of the ICAI.
COST AUDITORS AND THEIR REPORT
Pursuant to the provisions of Section 148 of the Act read with Companies (Cost Records
and Audit) Rules 2014, M/s Ramanath Iyer & Company, Cost Accountants, (Firm's
Registration No. 000019) have been re-appointed as Cost Auditors for the financial year
2023-24 to conduct cost audit of the accounts maintained by the Company in respect of the
various products prescribed under the applicable Cost Audit Rules. The remuneration of
Cost Auditors has been approved by the Board of Directors on the recommendation of Audit
Committee. The requisite resolution for ratification of remuneration of Cost Auditors by
members of the Company has been set out in the Notice of ensuing AGM.
The Cost Auditors have certified that their appointment is within the limits of Section
141(3)(g) of the Act and that they are not disqualified from appointment within the
meaning of the said Act.
The Cost Audit Report for the financial year 2021-22, issued by M/s Ramanath Iyer &
Company, Cost Auditors, in respect of the various products prescribed under Cost Audit
Rules was filed with the Ministry of Corporate Affairs on August 23, 2022.
There were no observations (including any qualification, reservation, adverse remark,
or disclaimer) of the Cost Auditors in the Report issued by them for the financial year
2021-22 which call for any explanation/comment from the Board ofDirectors.
SECRETARIAL AUDITORS AND THEIR REPORT
M/s Chandrasekaran Associates, Company Secretaries, were appointed as Secretarial
Auditors of the Company for FY 2022-23. The Secretarial Audit Report submitted by them for
the said financial year in the prescribed form MR-3 pursuant to the provisions of Section
204 of the Act and Regulation 24A(1) of the Listing Regulations is annexed as
‘Annexure 5' to this report.
The observations made by the Secretarial Auditors in the Report issued by them for FY
2022-23are self-explanatory and do not require any further explanation/comment from the
Board of Directors.
M/s Chandrasekaran Associates, Company Secretaries have been re-appointed to conduct
the secretarial audit of the Company for FY 2023-24. They have confirmed that they are
eligible for the said appointment.
INTERNAL FINANCIAL CONTROL SYSTEM
According to Section 134(5)(e) of the Act, the term Internal Financial Control (IFC)
means the policies and procedures adopted by the company for ensuring the orderly and
efficient conduct of its business, including adherence to company's policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information.
The Company has a well-placed, proper and adequate IFC system which ensures that all
assets are safeguarded and protected and that the transactions are authorised, recorded
and reported correctly. The Company's IFC system also comprises due compliances with
Company's policies and Standard Operating Procedures (SOPs) and audit and compliance by
internal audit checks from Pricewaterhouse Coopers Pvt. Ltd., the Internal Auditors. The
Internal Auditors independently evaluate the adequacy of internal controls and
concurrently audit the majority of the transactions in value terms. Independence of the
audit and compliance is ensured by direct reporting of Internal Auditors to the Audit
Committee of the Board.
To further strengthen the internal control process, the Company has developed a very
comprehensive legal compliance system called "e-nforce", which drills down from
the CEO to the executive level person who is responsible for compliance. This process is
fully automated and generate alerts for proper and timely compliance.
Adequacy of Internal Financial Controls with reference to the financial statements
The Act re-emphasizes the need for an effective Internal Financial Control system in
the Company which should be adequate and shall operate effectively. Rule 8(5)(viii) of
Companies (Accounts) Rules, 2014 requires the information regarding adequacy of Internal
Financial Controls with reference to the financial statements to be disclosed in the
Directors' Report.
To ensure effective Internal Financial Controls, the Company has laid down the
following measures:
• All operations are executed through Standard Operating Procedures (SOPs) in all
functional activities for which key manuals have been put in place. The manuals are
updated and validated as and when required.
• All legal and statutory compliances are ensured on a monthly basis for all
locations in India through a fully automated tool called "e-nforce". Non-
compliance, if any, is seriously taken by the management and corrective actions are taken
immediately. Any regulatory amendment is updated periodically in the system.
• Approval of all transactions is ensured through a pre- approved Delegation of
Authority (DOA) Schedule which is in-built into the SAP system. DOA is reviewed
periodically by the management and compliance of DOA is regularly checked and monitored by
the auditors.
• The Company follows a robust 2-tier internal audit process: Tier-1: Management/
Strategic/ Proprietary audits are conducted on regular basis throughout the year as per
agreed audit plan.
Tier-2: Transaction audits are conducted regularly to ensure accuracy of financial
reporting, safeguard and protection of all the assets. Stock audit is conducted on
quarterly basis at all locations in India. Fixed Asset Verification is done on an annual
basis including Ind AS-36 testing at all locations.
The audit reports for the above audits are compiled and submitted to management
committee and audit committee for review and necessary action.
• The Company's Books of Accounts are maintained in SAP and transactions are
executed through SAP (ERP) setups to ensure correctness/ effectiveness of all
transactions, integrity and reliability of reporting.
• The Company has a comprehensive risk management framework which is evaluated by
the Audit Committee annually.
• The Company has a robust mechanism of building budgets at an integrated cross-
functional level. The budgets are reviewed on a monthly basis so as to analyze the
performance and take corrective action, wherever required.
• The Company has in place a well-defined Whistle Blower Policy/ Vigil Mechanism.
• The Company has a system of Internal Business Reviews. All departmental heads
discuss their business issues and future plans in monthly review meetings. They review
their achievements vs. budgets in quarterly review meetings. Specialized issues like
investments, property, FOREX are discussed in their respective internal committee
meetings.
• Compliance of secretarial functions is ensured by way of secretarial audit.
• Compliance relating to cost records of the company is ensured by way of cost
audit.
DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT
Dabur has in place comprehensive risk assessment and mitigation framework, which
is reviewed by the Board periodically. The Risk Management Committee of the Board is
responsible for preparation of Risk Management Plan, reviewing and monitoring the same on
regular basis, identifying and reviewing critical risks on regular basis, updating the
Risk Register on quarterly basis, reporting of key changes in critical risks to the Board
on an ongoing basis and a detailed report on yearly basis, evaluation of risk management
systems by the Audit Committee on yearly basis and such other functions as may be
prescribed by the Board.
The Committee holds quarterly meetings to review the critical risks identified. The
risks faced by the Company, their impact and their minimization procedures are assessed
categorically under the broad heads of High, Medium and Low risks.
Further, the risks control systems are instituted to ensure that the risks in each
business process are mitigated. The two joint Chief Risk Officers (CROs) are responsible
for the overall risk governance in the Company and reports directly to the Management
Committee (MANCOM), which consists of various functional heads. The Board provides
oversight and reviews the Risk Management Policy. The Board is responsible for framing,
implementing and monitoring the risk management plan of the Company. During the year,
Pricewaterhouse Coopers Pvt. Ltd., Internal auditors, had tested the Risk & Control
Matrices for various processes as a part of Internal financial control framework.
In line with the Listing Regulations, cyber security risk is included in the risk
management plan and a Risk Management Policy with respect to Commodities, including
through hedging is also in place.
In the opinion of the Board there has been no identification of elements of risk that
may threaten the existence of the Company.
NATURE OF BUSINESS
There has been no change in the nature of business of the Company.
Dabur has a diverse portfolio consisting of a number of brands and sub-brands across
the three verticals of Home and Personal care, Healthcare and Foods. The Company has
presence across various channels such as general groceries, chemists, organized retail and
ecommerce.
During the year, the key pillars of Company's strategy were as follows:
1. Expanding the Total Addressable Market: The Company continued to innovate
to increase the total addressable market of its portfolio. New products contributed to
around 4% of the revenue during FY 2022-23. Some of the key launches in the domestic
market were:
| Health Supplements |
• Dabur Vedic Green Tea Detox Kahwa |
|
• Dabur Vedic Tea |
|
• Dabur Gur Chyawanprash |
|
• Dabur Hadjod and Gokshura Tablets |
|
• Dabur Ratnaprash Sugar Free |
| Digestives |
• Hajmola Amla Candy |
| OTC |
• Dabur Castor Oil |
| Ethicals |
• Dabur Shuddh Shilajit |
|
• Dabur Shodhit Guggulu |
|
• Dabur Aampachak Kadha |
|
• Dabur Gulkand |
|
• Dabur Sarpagandhaghan Vati |
|
• Dabur Arnica Hair Oil |
|
• Dabur Calendula Soap |
|
• Dabur Pushpadhanwa Ras |
| Hair Oils |
• Vatika Neelibhringa 21 Hair Oil |
| Oral Care |
• Dabur Herb'l (Olive and Blackseed Variants) |
|
• Dabur Red BAE Fresh Gel |
| Home Care |
• Odonil Air Freshener Neem |
| Skin Care |
• Gulabari Moisturizing Body Lotion |
|
• Oxylife Salon Professional Aqua Manicure & Pedicure Kit |
|
• Fem Sanitary Napkins |
| Beverages |
• Real Vitamin Boost Range (Mixed Fruit, Guava, Litchi) |
|
• Real Milkshakes (Chocolate Frappe and Caf? Frappe) |
|
• Dabur Sharbat-e-Azam Dry Fruit Syrup Range (Badam Kesaria, Kesaria Thandai) |
| Food |
• Real Peanut Butter |
2. Expanding Distribution Coverage and Improving Efficiency:
a. In terms of distribution, the Company increased its direct reach from 1.31 million
to 1.40 million, taking the total reach to 7.7 million outlets.
b. Village coverage expansion continued in FY 2022-23 with village coverage crossing 1
lakh villages from 89,840 villages in FY 2021-22. This expansion in reach was supported
through Project Yoddha, wherein Dabur continue to partner with local representatives in
villages to ensure its brands and products reached every rural household, helped to
increase penetration and stabilize business in rural markets.
c. Improving efficiency of the sales & distribution network was a key priority for
the Company. The steps taken using technology-enabled interventions helped drive the EDGE
(Everyday Great Execution) score up by 1,500 bps.
d. E-commerce with 30% growth and Modern Trade with 17% growth continued to be drivers
of its growth.
3. Efficiency in the Value Chain and Cost Management: Dabur continued to
keep a close eye on the value chain and further increased its focus on driving both
operational and financial improvements in the face of high inflation.
Further updates regarding operational performance and projects undertaken by the
subsidiary companies can be referred in the report on performance of subsidiaries
presented elsewhere in this report.
SUBSIDIARIES
Dabur Tunisie, a step down wholly owned subsidiary company which was decided to be
dissolved during the financial year 2017-18, is under process of liquidation and expected
to be completed by December 31, 2023.
Herbodynamic India Limited, which was a wholly owned subsidiary of the Company, had
applied for voluntary striking off under the provisions of Section 248 of the Act in April
2022, as it had not commenced any business since incorporation. The Company was struck off
from the register of Registrar of Companies, NCT of Delhi & Haryana and had dissolved
and ceased to be subsidiary of the Company w.e.f. January 11, 2023.
Asian Consumer Care Private Limited (Bangladesh), step down subsidiary of the Company
had become a step down wholly owned subsidiary of the Company w.e.f. November 24, 2022,
upon acquisition of remaining 24% of equity shares held by the Joint Venture partner- M/s
Advanced Chemicals Industries Limited. Further, post-acquisition, name of Asian Consumer
Care Private Limited was changed to Dabur Bangladesh Private Limited w.e.f. February 16,
2023.
During the year, the Company had acquired 51% equity shareholding of Badshah Masala
Private Limited (Badshah) from its existing shareholders and promoters. Upon completion of
transaction on January 2, 2023, Badshah has become a subsidiary of the Company w.e.f.
January 2, 2023.
Pursuant to Section 129 (3) of the Act and Ind - AS 110 issued by the Institute of
Chartered Accountants of India, Consolidated Financial Statements presented by the
Company include the financial statements of its subsidiaries
During the year, no other company, except the companies as mentioned above, has become
or ceased to be subsidiary, joint venture or associate of the Company.
Further, a separate statement containing the salient features of the financial
statements of Subsidiaries/
Associate/Joint Venture of the Company in the prescribed form AOC-1 has been disclosed
in the Consolidated Financial Statements.
The Financial Statements, as required, of the subsidiary companies shall be available
on website of the Company at www.dabur.com.
Report on the highlights of performance of Subsidiaries, Associates and Joint Venture
Companies and their contribution to the overall performance of the company.
Pursuant to Section 134 of the Act and Rule 8(1) of the Companies (Accounts) Rules,
2014 the report on highlights of performance of subsidiaries, associates and joint venture
companies and their contribution to the overall performance of the Company is annexed as
‘Annexure 6' to this report.
Information with respect to financial position of the above entities can be referred in
form AOC-1 which has been disclosed in the Consolidated Financial Statements.
Details of policy developed and implemented on Corporate Social Responsibilities (CSR)
initiatives
The Company has in place a CSR policy in line with Schedule VII of the Act. As per the
policy the CSR activities are focused not just around the plants and offices of the
Company, but also in other geographical area based on the needs of the communities. The
four focus areas where special Community Development programmes were run during the year
are:
1. Eradicating hunger, poverty and malnutrition.
2. Promoting Health care including preventive health care.
3. Ensuring environmental sustainability.
4. Promotion of Education.
During the year CSR programmes were also conducted in areas of z Vocational
Training and Women empowerment, and z Promotion of Sports
The annual report on CSR activities is furnished in ‘Annexure 7' which is annexed
to this report.
CHANGE IN CAPITAL STRUCTURE AND LISTINGOF SHARES
The paid-up share capital of the Company as on March 31, 2023 is Rs.1,77,17,63,464/-
divided into 1,77,17,63,464 equity shares of Re.1/- each. The Company's equity shares are
listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). During
the year, 39,06,981 equity shares of Re.1/- each were allotted under ESOP scheme of the
Company and admitted for trading on NSE and BSE.
The shares are actively traded on NSE and BSE and have not been suspended from trading.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE COMPANY
There have been no material changes and commitments affecting the financial position of
the Company which have occurred between the end of the financial year of Company to which
the financial statements relate and date of this report, which forms part of this report.
DISCLOSURES
Number of Meetings of the Board
During FY 2022-23, 5 (five) Board Meetings were held. details thereof kindly refer to
the section "Board of Directors - Number of Board Meetings", in the Corporate
Governance Report.
Disclosure on Audit Committee
The details pertaining to the composition of the Audit Committee as at March 31, 2023
including its terms of reference and attendance of directors at the Committee Meetings has
been provided in the section ‘Committees of the Board - Audit Committee', in the
Corporate Governance Report, which forms part of this Report.
All recommendations of Audit Committee were accepted by the Board of Directors.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
Pursuant to provisions of Section 134 of the Act read with Rule 8(3) of the Companies
(Accounts) Rules, 2014 the details of Conservation of Energy, Technology
Absorption, Foreign Exchange Earnings and Outgo are annexed as ‘Annexure 8' to this
report.
Environmental, Health and Safety (EHS) Review
Details with respect to Environmental, Health and Safety (EHS) review are
annexed as ‘Annexure 9' to this report.
Annual Return
The Annual Return as on March 31, 2023 in the prescribed Form No. MGT-7, pursuant to
Section 92 of the Act is available on the website of the Company at www.dabur.com at the
link https:// www.dabur.com/investor/investor-information/annual-return
Particulars of Loans, Guarantees or Investments under Section 186 of the Act
Particulars of loans, guarantees and investments under Section 186 of the Act as at the
end of FY 2022-23 are provided in the standalone financial statements (refer Note No. 48).
Contracts or arrangements with related parties under Section 188(1) of the Act
With reference to Section 134(3)(h) of the Act, all contracts and arrangements with
related parties under Section 188(1) of the Act, entered by the Company during the
financial year, were approved by the Audit Committee and wherever required, also by the
Board of Directors. No contract or arrangement required approval of shareholders by a
resolution. Further, during the year, the Company had not entered into any contract or
arrangement with related parties which could be considered ‘material' (i.e.
transactions entered into individually or taken together with previous transactions during
the financial year, exceeding rupees one thousand crore or ten percent of the annual
consolidated turnover as per the last audited financial statements of the Company,
whichever is lower) according to the policy of the Company on materiality of Related Party
Transactions.
Further, there were no transactions undertaken during the year which were not at an
arm's length basis, hence the disclosure under Form AOC-2 is not applicable to the
Company.
You may refer to Related Party transactions in Note No. 55 of the Standalone Financial
Statements for more details.
Details in respect of frauds reported by Auditors other than those which are reportable
to the Central Government
The Statutory Auditors, Cost Auditors or Secretarial Auditors of the Company have not
reported any frauds to the Audit Committee or to the Board of Directors under section
143(12) of the Act, including rules made there under.
Disclosure on Public Deposits
During the year under review, the Company has neither accepted nor renewed any deposits
in terms of Chapter V of the Act and Rules framed thereunder.
Disclosure on Vigil Mechanism
The Company has established a vigil mechanism through which directors, employees and
business associates may report unethical behavior, malpractices, wrongful conduct, fraud,
violation of Company's code of conduct, leak or suspected leak of unpublished price
sensitive information without fear of reprisal. The Company has set up a Direct Touch
initiative, under which all directors, employees, business associates have direct access
to the Chairman of the Audit committee, and also to a three-member direct touch team
established for this purpose. The direct touch team comprises one senior woman member so
that women employees of the Company feel free and secure while lodging their complaints
under the policy. Further information on the subject can be referred to in section
‘Policies, Affirmations and Disclosures' - Whistle-Blower Policy / Vigil Mechanism of
the Corporate Governance Report.
Disclosure on Cost Records
Pursuant to provisions of Section 134 of the Act read with Rule 8(5)(ix) of the
Companies (Accounts) Rules, 2014 it is confirmed that maintenance of cost records as
specified the Central Government under sub-section (1) of section 148 of the Act, is
required by the Company and accordingly such accounts and records are made and maintained.
Disclosure under Sexual Harassment of Women at the Workplace (Prevention, Prohibition
& Redressal) Act, 2013
At Dabur, all employees are of equal value. There is no discrimination between
individuals at any point based on race, colour, gender, religion, political opinion,
national extraction, social origin, sexual orientation or age.
At Dabur, every individual is expected to treat his/her colleagues with respect and
dignity. This is enshrined in values and in the Code of Ethics & Conduct of Dabur.
The Company also has in place ‘Prevention of Sexual Harassment Policy' in line
with the requirements of The Sexual Harassment of Women at the Workplace (Prevention,
Prohibition & Redressal) Act, 2013. All employees (permanent, contractual, temporary
and trainees) are covered under this policy.
The Company has complied with provisions relating to the constitution of Internal
Complaints Committee (ICC) under The Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 to redress complaints received regarding sexual
harassment.
The Direct Touch (Whistle-Blower & Protection Policy) policy also provides a
platform to all employees for reporting unethical business practices at workplace without
the fear of reprisal and help in eliminating any kind of misconduct in the system. The
policy also includes misconduct with respect to discrimination or sexual harassment.
The following is a summary of sexual harassment complaints received and disposed of
during the year: z No. of complaints received: Nil z No. of complaints
disposed of: NA z No. of complaints pending: Nil
Significant and material orders passed by the regulators or courts or tribunals
impacting the going concerns status and company's operations in future
The Company has not received any significant or material orders passed by any
regulatory authority, court or tribunal which shall impact the going concern status and
Company's operations in future.
Other Disclosures
1. Details of application made or any proceedings pending under the Insolvency and
Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end
of the financial year: During the year, one petition was filed by Visiontech Automation
(Partnership Firm) under section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), as
an operational creditor, against Dabur India Limited claiming an amount of Rs.1.68 crore
as operational debt under the IBC. Dabur is contesting the petition filed by the
operational creditor and has filed its reply before the NCLT, New Delhi. As at the end of
financial year the case is pending for hearing before the NCLT, New Delhi.
2. The details of difference between amount of the valuation done at the time of
one-time settlement and the valuation done while taking loan from the Banks or Financial
Institutions along with reasons thereof: There were no transaction requiring disclosure or
reporting in respect of matter relating to instance of onetime settlement with any bank or
financial institution.
Secretarial Standards
The applicable Secretarial Standards, i.e. SS-1 and SS-2, relating to ‘Meetings of
the Board of Directors' and ‘General Meetings', respectively, have been duly followed
by the Company.
NDUSTRIAL RELATIONS
The Company maintained healthy, cordial and harmonious industrial relations at all
levels. The enthusiasm and unstinting efforts of employees have enabled the Company to
remain at the leadership position in the industry. It has taken various steps to improve
productivity across organization.
ACKNOWLEDGEMENT
Your directors place on record their gratitude to the Central Government, State
Governments and Company's Bankers for the assistance, co-operation and encouragement they
extended to the Company. Your directors also wish to place on record their sincere thanks
and appreciation for the continuing support and unstinting efforts of investors, vendors,
dealers, business associates and employees in ensuring an excellent all around operational
performance.
For and on behalf of the Board
|
Mohit Burman |
| Place: New Delhi |
Chairman |
| Date : 04 May, 2023 |
DIN: 00021963 |
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