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.
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.
Dabur India Ltd
Directors Reports
To,
The Members,
Your Directors have pleasure in presenting the 47th Annual Report on
the business and operations of the Company, together with the audited financial statements
for the financial year ended March 31, 2022 ("FY 2021-22").
Financial Results
The standalone and consolidated financial performance of the Company is
summarised in the table below: (` in crores)
| Particulars |
consolidated |
standalone |
|
2021-22 |
2020-21 |
2021-22 |
2020-21 |
| Revenue from |
11,281.84 |
9,886.94 |
8,521.05 |
7,461.38 |
| Operations including other income |
|
|
|
|
| Less Expenses: |
|
|
|
|
| Cost of goods sold |
5,639.69 |
4,788.96 |
4,377.21 |
3,696.82 |
| Employee benefits |
1,079.95 |
1,033.46 |
678.71 |
655.82 |
| expenses |
|
|
|
|
| Finance cost |
38.60 |
30.81 |
18.67 |
9.14 |
| Depreciation and |
252.89 |
240.13 |
160.39 |
143.40 |
| Amortization expenses |
|
|
|
|
| Other Expenses |
1915.23 |
1,736.55 |
1,389.76 |
1,272.89 |
| total expenses |
8,926.36 |
7,829.91 |
6,624.74 |
5,778.07 |
| Profit before share of profit from joint
venture and exceptional items and tax |
2,355.48 |
2,057.03 |
na |
na |
| Share of profit/(loss) of Joint Venture |
(1.80) |
(1.01) |
NA |
NA |
| Profit before exceptional items and tax |
2,353.68 |
2,056.02 |
1,896.31 |
1,683.31 |
| Exceptional items |
(85.00) |
- |
- |
- |
| Profit before tax |
2,268.68 |
2,056.02 |
1,896.31 |
1,683.31 |
| Tax expense |
526.38 |
361.07 |
463.38 |
301.42 |
| Net Profit for the year |
1,742.30 |
1,694.95 |
1,432.93 |
1,381.89 |
| Other comprehensive |
(88.42) |
(88.21) |
(28.03) |
(16.13) |
| income / (loss) for the year |
|
|
|
|
| total comprehensive |
1,653.88 |
1,606.74 |
1,404.90 |
1,365.76 |
| income for the year |
|
|
|
|
| total comprehensive |
|
|
|
|
| income attributable to - |
|
|
|
|
| Owners of the Holding Company |
1,650.02 |
1,606.51 |
NA |
NA |
| Non-Controlling interest |
3.86 |
0.23 |
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 25, 2021. We are pleased to recommend a
dividend of Rs.2.70/- per equity share of Re.1/- each fully paid up (being 270%) for FY
2021-22. The dividend recommended, if approved by the members, will be paid to the members
within the period stipulated by 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%) as against Rs.4.75/- per share of Re.1/- each fully paid up
(being 475%) declared last year. The dividend payout ratio for the current year is at
52.76%. 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/img/
upload-files/166-Dividend-Distribution-Policy.pdf
UNPAID/ UNCLAIMED DIVIDEND
Pursuant to the provisions of Section 124(5) of the Act, final dividend
for FY 2013-14 amounting to Rs.52,85,517.24/- and interim dividend for FY 2014-15
amounting to Rs.63,41,973.00/- 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
2020-21 (updated up to the date of 46th Annual General Meeting held on August 19, 2021)
and for interim dividend declared during FY 2021-22 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, from time
to time, the Annual Report 2021-22 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 2021-22 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
Accounting Standard Ind AS 110 on Consolidated Financial Statements, this Annual Report
also includes Consolidated Financial Statements for FY 2021-22. During FY 2021-22,
Consolidated Total Income was Rs.11,281.84 Crores as against Rs. 9,886.94 Crores in the
previous year yielding a growth of 14.1%. Further, Net Profit after Tax (after minority
interest) for the year stood at Rs.1,739.22 crores as against Rs.1,693.30 Crores in the
previous year yielding a growth of 2.7%.
OPERATIONS AND BUSINESS PERFORMANCE
Kindly refer to 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 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 attached as "Annexure 1" and forms part
of this report.
Business ResPOnsiBility anD sustainaBility RePORt
At Dabur, fulfilmentof environmental, social and governance
responsibility is an integral part of the way the Company conducts its business.
In terms of the amended 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/in/en-us/investor/investor-information/business-responsibility-&-sustainability-report.
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,hasbeenreaffirmed.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 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.
Directors
Pursuant to Section 149, 152 and other applicable provisions of the
Companies Act, 2013, 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
AGM. Consequently, Mr. Saket Burman (DIN: 05208674), director will
retire by rotation at the ensuing AGM, and being eligible, offers himself for
re-appointment in accordance with provisions of the Act. Further, Dr. Anand C. Burman was
appointed as an alternate director to Mr. Amit Burman by the Board of Directors in its
meeting held on March 25, 2022.
Mr. P. D. Narang was appointed as the whole time director of the
Company for a period of five years w.e.f. April 01, 2018 and his tenure shall end on March
31, 2023. In terms of Section 196, 197, 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 05, 2022 have reappointed him as a Whole Time Director for a further
period of 5 years effective April 1, 2023 till March 31, 2028 and have recommended his
re-appointment for approval of the members at the ensuing Annual General Meeting.
Further, pursuant to Section 149, 152, 161 read with Schedule IV and
other applicable provisions of the Companies Act, 2013, 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 August
03, 2021 had appointed Mr. Rajiv Mehrishi (DIN: 00208189) as an
Additional Director in the category of Non-Executive Independent Director of the Company
with effect from September 01, 2021, subject to approval of the shareholders at the next
AGM, for a period of 5 consecutive years from the date of appointment. Mr. Rajiv Mehrishi
has given consent for his appointment and has also submitted necessary disclosures with
respect to his appointment.
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 NRC and the Board of Directors of the Company recommend their
appointment/ re-appointment at the ensuing AGM.
The Company has received necessary declaration from all the Independent
Directors under Section 149(7) of the Act 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 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 Director appointed during FY 2021-22, the Board of Directors have taken on
record the declarations and confirmations submitted by the Independent Director and is of
the opinion that he is a person of integrity and possesses relevant expertise and
experience and his continued association as Director will be of immense benefit and in the
best interest of the Company. of the independent Director, With regard to proficiency
ascertained fromtheonlineproficiencyself-assessment test 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 Director that he has complied with the applicable
laws.
None of the Directors of the Company are related inter-se, in terms of
section 2(77) of the Act including rules made thereunder.
Key Managerial Personnel
As at March 31, 2022, following were the Key Managerial Personnel (KMP)
of the Company as per Section 2(51) and 203 of the Act: z Mr. P D 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 is enclosed 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/img/upload-files/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 enclosed as ‘Annexure 4A'
to this report. Further, in terms of the provisions of Section 197(12) of the Act read
with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel)
Rules, 2014, a statement showing the names and other particulars of
employees drawing remuneration in excess of the limits set out in the said rules is
attached as ‘Annexure 4B' to this report.
Employees Stock Option Plan
During FY 2022, 46,99,065 options were granted in 5 tranches 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 SEBI .
(ShareBasedEmployeeBenefits) Regulations, 2014
The applicable disclosures as stipulated under Regulation 14 of SEBI
(Share Based Employee Benefits) Regulations, 2014 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 http://www.
dabur.com/in/en-us/investor/investor-information/esops
Secretarial Auditors of the Company Acertificate certifying that the
Employee Stock Option Scheme of the
Company is implemented in accordance with the SEBI (Share Based
Employee Benefits) Regulations, 2014 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
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 financial
year 2021-22 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(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 have 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
Statutory Auditors
Pursuant to the provisions of Section 139 of the Act, and rules made
thereunder, M/s. Walker Chandiok & Co LLP, Chartered Accountants, (Firm Registration
No. 001076N/ N500013) were appointed as Statutory Auditors of the Company for a term of
five consecutive years, to hold office from the conclusion of the 42nd AGM held on 26th
July, 2017 until the conclusion of 47th AGM of the Company to be held in the calendar year
2022. They shall retire at the ensuing AGM.
The Board of Directors of your company have proposed appointment of
M/s. G. Basu & Co., Chartered Accountants (Firm Registration No. 301174E) as Statutory
Auditors of the Company for a term of five consecutive years, to hold office from the
conclusion of the ensuing AGM until the conclusion of 52nd AGM of the Company to be held
in the calendar year 2027. Pursuant to Section 139 and 141 of the Act and relevant Rules
prescribed there under, M/s. G. Basu & Co. have confirmed that they are not
disqualified from being appointed as Auditors of the Company.
Report of Statutory Auditors
M/s. Walker Chandiok & Co LLP, Chartered Accountants, have
submitted their Report on the Financial Statements of the Company for the FY 2021-22,
which forms part of the Annual Report 2021-22. 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 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
As per Section 148 of the Act read with Companies (Cost Records and
Audit) Rules 2014, M/s Ramanath Iyer & Company, Cost Accountants, (Firm's
Membership No. 000019) have been re-appointed as Cost Auditors for the financial year
2022-23 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 2020-21, 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
September 1, 2021.
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 2020-21 which call for any explanation from the Board of Directors.
secRetaRial auDitORs anD theiR RePORt
M/s. Chandrasekaran Associates, Company Secretaries, were appointed as
Secretarial Auditors of the Company for the financial year 2021-22 pursuant to section 204
of the Act. The Secretarial Audit Report submitted by them in the prescribed form MR- 3 is
attached as ‘Annexure 5' to this report.
There are no qualifications or observations or adverse remarks or
disclaimer of the Secretarial Auditors in the
Report issued by them for the financial year 2021-22 which call for any
explanation from the Board of Directors.
M/s Chandrasekaran Associates, Company Secretaries have been
re-appointed to conduct the secretarial audit of the Company for the financial year
2022-23. They have confirmed that they are eligible for the said appointment.
INTE RNAL 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
(SOP`s) and audit and compliance by in-house Internal
Audit Division, supplemented 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 Board`s report.
To ensure effective Internal Financial Controls the Company has laid
down the following measures: z 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. z
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. z 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. z 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 The risksregularly 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. z 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. z The Company has a comprehensive risk
management framework which is evaluated by the Audit Committee annually. z 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. z The Company has in place a
well-defined Whistle Blower Policy/ Vigil Mechanism. z 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. z Compliance of secretarial functions
is ensured by way of secretarial audit. z 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
risksidentified. 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 has also been framed by the Company.
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 company followed a channel focus
strategy whereby each channel was leveraged through specific strategies and teams. This
led to high growth in channels such as general groceries, chemists and ecommerce.
During fiscal 2021-22, innovation continued to be a cornerstone of
Dabur's strategy and the following new products were launched:
In india:
Health Supplements
• Dabur Chyawanprakash Tablets
• Dabur Chyawanprash Spout Pack
• Dabur Honey Throat Relief
• Arjuna and Shatavari Tablets in Pure Herb Range
Digestives
• Dabur Pudin Hara Drops
• Hajmola LimCola
OTC
• Dabur Ayush Kwath Drops
• Dabur Oliv-O-Oil
• Dabur Honitus Sugar Free
Ethicals
• Dabur Chyawanprash Sharangdhar Samhita
• Dabur Anu Tailam
• Dabur CalDab Tablets
• Dabur Kovirakshak Kit
• Dabur Ayush-64 Tablets
• Dabur Restora Gold
• Dabur Agnisandeepan Churna
• Dabur Panchagun Tail
Hair Oils
• Dabur Gold Coconut Oil z Dabur Anmol Gold in Yellow
Packaging (RISE Initiative)
Shampoo & Post Wash
• Vatika Neem & Aloe Vera Shampoo (Germ Protection)
• Vatika Shampoo Refill Pack
• Home Care
• Odomos Protect Liquid Vaporiser
Skin Care
• Dabur Aloe Vera Nourishing Gel
Beverages
• Real Fizzin (Apple, Masala Cold and Tangy variants)
• Real Juices in PET (Mango, Mixed Fruit, Guava, Litchi, Anar)
• Dabur Sharbat-e-Azam and Khus Syrup
Food
• Dabur Hommade Red Chilli Pickle (Addition to the Pickles Range)
• Dabur Hommade Sattu
The following were e-comm first/ e-comm exclusive products launched in
India:
Health Supplements
• Dabur Kesarprash
• Dabur Vita
• Dabur Honey Tasties
OTC
• Dabur Baby Super Pants (addition to the Dabur Baby Range)
Shampoo & Post Wash
• Vatika Neem & Aloe Vera Shampoo (Germ Protection)
• Vatika Shampoo Refill Pack
Home Care
• Odomos Protect Liquid Vaporiser
Skin Care
• Dabur Vatika Face Wash Range (Neem, Sandalwood and Honey
variants)
Food
• Real Chia and Roasted Pumpkin Seeds
New product launches under International Business:
| • Vatika Nourishing Oil Shampoo Range (Hydrate & Nourish
with 100% extracts of Natural Shea Butter for Dry Hair, Detox & Nourish with 100%
extracts of Natural Avocado for Dull Hair, Strengthen & Nourish with 100% extracts of
Natural Hibiscus for Weak Hair) |
| • Vatika Naturals Shampoo Range (Moroccan Argan, Turkish
Black Seed, Spanish Garlic, Spanish Olive, Egg Protein, Indian Henna) |
| • Vatika Hot Oil Treatment Range (Black Seed and Argan) |
| • Vatika Castor Enriched Hair Oil |
| • Dermoviva Skin Superfood (Avocado, Pomegranate and
Turmeric) |
| • Dermoviva Range of Facewash, Face Scrub and Face Mask |
| • Dabur Hommade Range (Garlic Paste, Ginger Paste, Ginger
Garlic Paste, Tamarind Paste) |
| • Dabur Herbolene Healing Petroleum Jelly (Aloe Vera, Cocoa
Butter, Argan) |
| • Dabur GlycoDab Tablets |
| • Dabur Triphala Churna |
| • Dabur Shilajit Capsules |
| • Dabur Tulsi Drops |
| • Dabur Hepano Tablets |
| • Hobby Naturals Liquid Handwash Range |
| • Hobby Style & Protect Range of Shampoos |
| • Hobby Style & Protect Gel Wax |
| • Hobby Style & Protect Keratin Hair Styling Spray |
| • Vatika Baby Shampoo and Massage Oil |
| • Dermoviva Baby Olive Moisturising Lotion |
| • ORS Beard & Hair Men (Beard Cream, Beard Oil, Anti Bump
Gel) |
| • Vatika Ayurveda Shampoo and Conditioner Range in US |
| • Dabur Organic Ghee in UK |
During the year, the Company continued its focus on its power brands
– Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus, Pudin Hara, Dabur
Red Paste,
Dabur Amla Hair Oil, Real and Vatika. All power brands (except Dabur
Chyawanprash, Dabur Pudin Hara and Dabur Honey) registered strong growths during the year.
Dabur
Chywanprash and Dabur Honey reported muted growths on account of the
high base of last year.
In terms of distribution, the Company increased its direct reach from
1.28 million to 1.31 million, taking the total reach to 6.9 million outlets. E-commerce
continued to be the growth leader and saw its saliency improve during the year. Modern
Trade marked a recovery during the year with mobility restrictions easing and increased
footfalls.
Village coverage expansion continued with village coverage reaching
89,840 villages from 59,217 villages at the start of the year. This expansion in reach
along with the expansion of Project Yoddha, wherein we continue to partner with local
representatives in villages to ensure that our brands and products reached every rural
household, helped to increase penetration and post strong growth in rural areas.
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 17-18, is under process of liquidation
and is expected to be completed by December, 2022. Further, Herbodynamic India Limited,
wholly owned subsidiary of the
Company has applied for striking off under the provisions of
Section 248 of the Act in April 2022, as it has not commenced any
business during the year.
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.
Further, a separate statement containing the salient features of the
financial statements of subsidiaries 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 attached 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 six focus areas where special Community Development programmes were run
during the FY 2021-22 are:
1. Corona Support Initiatives.
2. Eradicating hunger, poverty and malnutrition.
3. Promoting Health care including preventive health care.
4. Ensuring environmental sustainability.
5. Promotion of Education.
6. Vocational Training and Women empowerment.
The annual report on CSR activities is furnished in ‘Annexure
7' which is attached to this report.
chanGe in caPital stRuctuRe anD listinG OF shaRes
The paid up share capital of the Company as on March 31, 2022 is
Rs.1,76,78,56,483/- divided into 1,76,78,56,483 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, 4,31,134 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 the date of this
report.
DisclOsuRes
Number of Meetings of the Board
During FY 2021-22, 5 (five) Board Meetings were held. For 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, 2022 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 attached as ‘Annexure
8' to this report.
Environmental, Health and Safety (EHS) Review
Details with respect to Environmental, Health and Safety
(EHS) review are attached as ‘Annexure 9' to this
report.
annual Return
The Annual Return as on March 31, 2022 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/in/en-us/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 2021-22 are provided in the
standalone financial statements (refer Note No. 46).
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
exceeding ten percent of the annual consolidated turnover as per the last audited
financial statements entered into individually or taken together with previous
transactions during the financial year) 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 arms' 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. 53 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) of
the Companies (Accounts) Rules, 2014 it is confirmed that maintenance of cost records as
specified by 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 on the basis of 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.
During the year, one complaint was received and disposed of. There was
no complaint pending at the end of the year.
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.
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.
IN DUSTRIAL 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 |
P. D. narang |
| Place: New Delhi |
Director |
Director |
| Date : 5 May, 2022 |
DIN: 00021963 |
DIN: 00021581 |
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