A COST ANALYSIS REPORT ON

DABUR INDIA LIMITED

Submitted by
ALAKESH PHUKAN
ROLL NO:- 12
 DABUR
Anchored by heritage, Governed by Trust, Propelled by Science

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

COMPANYS BUSINESS MISSION AND OBJECTIVE:-

"Dedicated to the health & wellbeing of every household"
The main principles of Dabur includes Ownership, Passion for winning, Peoples
development, Consumer focus, Team Work and Innovation. Dabur is inspired by Ayurveda.
Originating nearly 5,000 years ago, Ayurvedic texts were researched by Dabur in its quest for natural
remedies. Today, its application in modern life has been renewed through the scientific research and
validation undertaken at Dabur.

SOME ACCOLADES IN 2015-16 :

1) Dabur entered Forbes list of India's Super 50 Companies
2) Dabur Red Paste Dant Sanan and Dabur Goonj - bagged bronze awards at the recently held
WOW Asia Awad

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3) Dabur has been named the Best Healthcare Brand in the Consumer Healthcare category by the
Economic Times
4) Dabur has been named the Best Healthcare Brand in the Consumer Healthcare category by the
Economic Times
5) Dabur has ranked 33 in List Of Top Wealth Creators, by Dalal Street

PRODUCT RANGE OF DABUR :-

HEALTH FOODS HOME CARE/PERSONAL CONSUMER HEALTH

SUPPLEMENT CARE
Dabur Chawanprash Real fruit juices Odonil Dabur Honitus Cough Syrup
Dabur Honey Hommade Odomos Shilajit Gold
Dabur Glucose-D Lemoneez Sanifresh Shine Dabur Active Blood Purifier
Dabur Stresscom etc. Hajmola Yoodley Odopic Dabur lal tel
Real Burrst etc. Vatika Gulabari Dabur Janma Ghutti
Dabur Red Toothpaste Dabur Super Thanda Oil
Oxilife facial etc. Dabur NutiGO etc.

INDIA FMCG BUSINESS : CATEGORY WISE SALES OF DOMESTIC FMCG BUSINESS

FY 2015-16 :-

18.00% 18.00%

5.00% 6.00%

9.00%
15.00%

6.00%
23.00%

Health Supplement Digestives OTC and Ethicals Hair Care

Home Care Oral Care Skin Care Food

FINANCIAL REVIEW:-
During fiscal 2015-16, the Company recorded consolidated sales of 8436.0 crore growing by
8.1%. The Domestic FMCG Business reported growth of 6.3% while the International Business grew
by 11.9%.

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 The business witnessed a benign cost environment during the year due to a steep correction in
crude oil prices. This led to an improvement in the gross margins with material cost as a percentage of
sales reducing from 47.7% in FY2014-15 to 45% in FY2015-16.
The Advertisement and Promotion expenditure for the year stood at 14.7% as compared to
14.4% in the previous year, which was a reflection of continued investment behind the brands. The
year 2015-16 witnessed many new product launches as well as a revamp of some of our existing
products.
The Companys EBIDTA grew by 17.9% to 1739.0 crore. Consequently, the EBITDA margins
improved to 20.6% during 2015-16 as compared to 18.9% in the previous fiscal. Effective Tax Rate
on a consolidated basis showed a marginal increase going up from 19% in 2014-15 to 19.4%
in 2015-16. Profit After Tax (PAT) after minority interest grew by 17.5% to 1252.7 crores in fiscal
2015-16. PAT margins improved consequently to 14.8% from 13.7% in the previous year.

KEY HIGHLIGHTS OF THE COMPANYS PERFORMANCE DURING FY 2015-16 :-

Dabur ended the year with steady growth in Sales and Profits. The highlights of Dabur India
Ltds performance during fiscal 2015-16 on a consolidated basis are:
Net Sales grew by 8.1% to 8436.0 crore in fiscal 2015-16, up from 7806.4 crore in 2014-15
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) increased by 17.9% to 1739.0 crore in fiscal 2015-16, up from 1474.4 crore in
2014-15
Profit After Tax (PAT) increased to 1252.7 crore in 2015-16, up 17.5% from 1065.8 crore in
2014-15
Diluted Earnings Per Share (EPS) increased to 7.08 in 2015-16 from 6.03 in 2014-15.
Two more of our brands joined the 100 crore club Dabur Gulabari and Dabur Lal TailOur

STRATEGIC BUSINESS UNITS :-

Business structure today stands as below :-
Consumer Care Business incorporating the Health Care and Home & Personal Care (HPC)
accounts for 53% of Consolidated Sales
Foods Business comprising packaged fruit juices and culinary products accounts for 11.4% of
Consolidate Sales

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 SBU wise Sales Breakdown

4.00%

32.00%

53.00%

11.00%

Consumer Care Foods

International Others
Inter
national Business, including Daburs organic overseas business as well as the acquired
entities of Hobi Group and Namaste Laboratories LLC, accounts for 31.8% of Consolidated
Sales

COMPARITIVE FINANCIAL HIGHLIGHT (LAST 5 YEAR) :-

EBITDA Sales
FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16

8436
1739

7806
7073
1474

6146
1288

5283
1097
948

FINANCIAL RESULT :-

PARAMETER FY 2015 FY 2016

Net Sales 7806 8436
Other Income 179 237
EBITDA 1474 1739
EBITDA Margins (%) 18.9% 20.6%
Profit Before Tax 1319 1557

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Taxes 251 302
Tax Rate (%) 19% 19%
Profit After Tax (PAT) 1066 1253
PAT Margins (%) 13.7% 14.8%
Financial Position :
Net Fixed Assets (incl. Goodwill) 1927 1995
Current Asset, Loans, Advances 2731 3291
Current Liabilities & Provisions 1942 2071
Share Capital 176 176
Reserves & Surplus 3178 3984
Share Holders Fund 3354 4160
Loan Funds 734 791
Equity Share Data
Earnings per share 6.1 7.1
Divident per share 2.00 2.25
Book value per Share (BVPS) 19.1 23.6
No of Shares (In crs) 175.7 175.9
Share Price (unadjusted) 266 250
Market Cap 46653 43961

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

PARAMETER FY 2014-15 FY 2015-16

Net Sales 7806.00 8436.00
Other Operating Income 20.8 18.1
Material Cost 3720.10 3797.00
Employee Expense 689.6 794.8
Advertising & Publicity 1124.4 1242.7
Other Expences 976.8 1099.7
Other Non Operating Income 158.1 219.2
EBITDA 1474.40 1739.00
Finance Cost 40.10 48.00
Depreciation and Amortization 115.00 133.80
Profit before Tax (PBT) 1319.4 1557.20
Tax Expenses 250.90 301.80

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Minority Interest (Profit/Loss) 2.6 2.7
PAT (After Minority Interest) 1065.80 1252.7

CONCLUSION :-

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

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