Financial Analysis of Dabur

Financial Analysis of

Annual Report for

Dabur

Submitted to:

Prof. Vandana Gupta

Submitted By:-

Abhay Karan Singh Khurana 211006

Akshat Jain 211012

Anurag Jain 211027

Deepanshu Pahuja 211042

Dhruv Bhurani 211043

Gunjan Bhateja 211049

TABLE OF CONTENTS

S No Chapters Page No

1. INTRODUCTION OF DABUR & ITS PROFILE 6

1.1 Introduction to Dabur 7

1.2 Board of Directors 8

1.3 Dabur: At a Glance 9

2. ANALYSIS OF OPERATING PERFORMANCE 12

2.1 Analysis of Sales Mix 13

2.2 Peer Comparison 15

3. FINANCIAL STATEMENT ANALYSIS 18

3.1 Ratio Analysis 19

3.2 Trend Analysis 31

3.3 Balance Sheet & Income Statement Comparison 34

4. CASH FLOW STATEMENT ANALYSIS 45

5. SWOT ANALYSIS 49

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ACKNOWLEDGEMENTAny job in this world, however trivial or tough cannot be accomplished without the assistance of others. We would hereby take the opportunity to express our indebtness to people who have helped us to accomplish this task.

We would also like to express sincere gratitude to Prof. Vandana Gupta at FORE School of Management for guiding us in every possible way and sharing her experiences to help us.

We take this opportunity to thank all those people who have directly or indirectly helped us in making of this report.

Abhay Karan Singh Khurana

(211006)

Akshat Jain Prof. Vandana Gupta

(211012)

Anurag Jain

(211027)

Deepanshu Pahuja

(211042)

Dhruv Bhurani

(211043)

Gunjan Bhateja

(211049)

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DECLARATION

The investigatory project on the topic “Financial Analysis of Financial Report: Dabur” is prepared by Preet Varun Singh on the partial fulfillment MBA 1st Trimester. This project is original and is not copied from anywhere else up to my knowledge.

Abhay Karan Singh Khurana

(211006)

Akshat Jain

(211012)

Anurag Jain

(211027)

Deepanshu Pahuja

(211042)

Dhruv Bhurani

(211043)

Gunjan Bhateja

(211049)

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Chapter 1

Introduction of Dabur & Its Profile

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Introduction to DaburAbout Dabur

The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague.

Soon the news of his medicines traveled, and came to be known. As the trusted 'Daktar' or Doctor who came up with effective cures. And that is how his venture Dabur got its name - derived from the Devanagri rendition of Daktar Burman.Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability.

Dabur India Limited is the fourth largest FMCG Company in India with Revenues of over US$1 Billion (Rs 5,283 Crore) and Market Capitalization of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company.

Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 3.4 million retail outlets with a high penetration in both urban and rural markets.

Dabur’s products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, Africa, SAARC countries and the US. Dabur’s overseas revenues account for over 30% of the total turnover.

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.

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Board of DirectorsDabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate governance. The Board comprises of:

Chairman Vice-ChairmanDr. Anand Burman Mr. Amit

BurmanWhole Time Directors

Mr. P.D. Narang Mr. Sunil Duggal

Non Whole Time Promoters, Directors

Mr. Mohit Burman Mr. Saket Burman

Independent Directors

Mr. Albert Wiseman Paterson

Mr. P. N. Vijay Mr. R C Bhargava Dr. S. Narayan

Dr. Ajay Dua

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Dabur: At a GlanceDabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves

Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09) 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health

Division (CHD) and International Business Division (IBD) 3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu. 17 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries

Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India

Short Description of Three Major Strategic Business Units (SBU’s)

a) Consumer Care Division (CCD):-

Consumer Care Business, which incorporates the entire FMCG business of Dabur comprising Health care and Home & Personal care verticals accounts for 56% of the Company’s consolidated revenues

International Business Division (IBD), which includes Dabur’s organic overseas business as well as the acquired entities, Hobi Group and Namaste Laboratories LLC, accounts for 30.3% of Dabur’s consolidated revenues.The Consumer Care Business is the largest segment, contributing to 56% of consolidated sales and grew by 11.4% during fiscal 2011-12. The segment is divided into the key verticals of Health care and Home and Personal care.

17

30

21

6

6

8

12

Category-Wise Share of Consumer Care Sales

Oral CareHair CareHealth SupplementsHome CareSkin CareDigestivesOTC & Ethicals

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Master Brands:

Dabur - Ayurvedic healthcare products Vatika - Premium hair care Hajmola - Tasty digestives Réal - Fruit juices & beverages Fem - Fairness bleaches & skin care products

9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey

Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market

Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.

Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row

Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day

Leader in herbal digestives with 90% market share

b) Foods Division:-

Foods Division, consisting of fruit-based beverages and culinary pastes business, contributes 10.1% of total sales.

Dabur’s Foods Business emerged as the star performer of 2011-12 as the category crossed Rs. 500 crores in sales. This marks a 10-fold jump in its sales in nine years, a big achievement given the fact that this business is driven purely by packaged fruit juices -- a category that was almost nonexistent a decade ago and was pioneered by Dabur. The Foods business at present includes fruit juices and nectars under the brands Réal and Réal Activ and culinary pastes under the brand Hommade.

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c) International Business Division (IBD):-

Dabur’s International Business continued on a strong growth trajectory with sales growing by 78.3% to Rs. 1,616 crores. The International Business now contributes 30.3% to consolidated sales. Fiscal 2011-12 was the first full year of the two overseas acquisitions – Hobi Group and Namaste Laboratories, LLC under the Dabur fold.

During the year, these acquisitions were ssimilated and integrated with the existing organic overseas business. If we were to look at the growth in sales of the organic business excluding acquisitions, nthe business grew by 27.1% to Rs. 929.9 crores. Our key geographies by total overseas revenues now are: Middle East, Africa, Asia and U.S.

22

3026

16

6

International Sales Split

AfricaMiddel EastUSAsiaOthers

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Chapter 2

Analysis of Operating Performance

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I. Analysis of Sales MixConsumer

Care Business

Foods Others Total

Current Year

Previous Year

Current Year

Previous Year

Current Year

Previous Year

Current Year

Previous Year

RevenueExternal sales 3,06,341 2,74,833 53,434 43,795 14,502 7,809 3,74,277 3,26,437Inter-segment salesTotal Revenue 3,06,341 2,74,833 53,434 43,795 14,502 7,809 3,74,277 3,26,437% contribution of Each Sector

82% 85% 14% 13% 4% 2%

(All Figures in Rs. Lacs)

82%

14% 4%

% Sales in the Year 2012Consumer Care Business Foods Others

85%

13% 2%

% Sales in the Year 2011Consumer Care Business Foods Others

Although the revenue from Consumer Care Business increased by 11.6%, the percentage of contribution to sales from the Consumer Care Business decreased by 3%. Also the total revenue from the “Others” segment also doubled. Overall, there was an increase in revenues contributed by each segment of the company.

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Sales: - Domestic Vs. Export For the year

ended March 31, 2012

% in total sales

For the year ended March

31, 2011

% in total sales

Sales of Products

5,32,482 4,10,985

Domestic 4,78,724 89.90% 3,70,940 90.26%Export 53,758 10.10% 40,045 9.74%


89.90%

10.10%

Domestic/Export Sales in the year 2012Domestic Export

90.26%

9.74%

Domestic/Export Sales in the year 2011Domestic Export

There was an increase of 34% in the exports of Dabur which increased the percentage share of exports in the total sales from 9.74% to 10.10% over the two years.

Also the domestic sales increased by 27% over the two years.

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II. Peer ComparisonReturn on Net Worth

Return on Net Worth (%)

2009 2010 2011 2012Dabur 51.20 58.04 46.29 37.09HUL 121.34 85.25 87.57 76.62ITC 21.18 21.30 22.91 23.97

P&G 37.91 40.64 33.62 25.11(All Figures in Rs. Lacs)

2009 2010 2011 20120

20

40

60

80

100

120

140

DaburHULITCP&G

The amount of net income returned as a percentage of shareholders equity. Return on net worth measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

RONW is expressed as a percentage and calculated as:

Return on Net Worth = Net IncomeNet Worth

Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares.

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The RONW of Dabur increased from 09-10, but it started decreasing there onwards. The RONW in the year 2012 was 37.09%, 14% less than 2009. This trend was experienced by the entire FMCG sector where the RONW decreased. Only ITC was able to improve its RONW marginally.

Profit Margins

Profit Margins2009 2010 2011 2012

Dabur 15.44 15.03 14.27 12.17HUL 12.09 12.29 11.56 12.07ITC 21.18 21.30 22.91 23.97

P&G 22.36 19.31 14.54 12.85(All Figures in Rs. Lacs)

2009 2010 2011 20120

5

10

15

20

25

30

DaburHULITCP&G

A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.

Dabur’s profit margin has been decreasing over the past years by a small percentage. the decreasing profit margin can be attributed towards incresing the inventory. Dabur is doing better than some of its competitiors.

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Return On Assets

Return on Assets2009 2010 2011 2012

Dabur 8.43 8.60 5.85 7.17HUL 9.45 11.84 12.19 16.25ITC 32.37 36.95 37.66 21.12

P&G 106.79 135.56 164.70 185.03


2009 2010 2011 20120

20

40

60

80

100

120

140

160

180

200

DaburHULITCP&G

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".

The formula for return on assets is: Net IncomeTotal Assets

The return on assets has been stagnant for Dabur and the competitors of the company are doing better.

Also the company has increased its investments which may prove vital for the company in future.

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Chapter 3

Financial Statement Analysis

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I. Ratio AnalysisSolvency Ratios

The long-term solvency of a business is affected by the extent of debt used to finance the assets of the company. The presence of heavy debt in a company’s capital structure is thought to reduce the company’s solvency because debt is more risky than equity. Important indicators of a firm’s solvency are discussed below:-

1) Debt-Equity Ratio – It measures the relationship of the capital provided by creditors to the amount provided by shareholders. Debt includes interest-bearing liabilities, both short-term & long-term, but excludes operating liabilities. A lower Debt-Equity Ratio is better for the company.

Debt-Equity Ratio = Total Debt

Total Shareholder Funds

Debt-Equity RatioYear 2009 2010 2011 2012

Total Debt 14,137 10,997 25,201 27,781Shareholder Fund 73,820 74,938 1,10,116 1,30,327Debt-Equity Ratio 0.19 0.14 0.22 0.21


Debt-Equity Ratio0

0.05

0.1

0.15

0.2

0.25

2009201020112012

These ratios are very low. Which indicates that in the coming future the company can easily increase the amount of leverage in its capital structure. Also, over the years the ratio has increased showing indicating that the company has started relying more on external borrowings. (both long-term &

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short-term) However, the proportion of the Debt still is very low in comparison to the Equity of the company.

2) Debt-Assets Ratio – Determines how much of the company's assets have been financed by debt. It is calculated by adding short-term and long-term debt and then dividing by the company's total assets. The lower it is, the better it is for the company.

Debt-Assets Ratio = Total DebtTotal Assets

Debt-Assets RatioYear 2009 2010 2011 2012

Total Debt 14,137 10,997 25,201 27,781Total Assets 1,55,062 1,74,346 2,40,791 2,84,071

Debt-Assets Ratio 0.09 0.06 0.10 0.09(All Figures in Rs. Lacs)

Debt-Assets Ratio0

0.02

0.04

0.06

0.08

0.1

0.12

2009201020112012

A lower Debt-Asset Ratio indicated that most of the assets of the company are financed through its Equity Funds. Also, the ratio has decreased from the years 09-10 & 11-12 which signify an increasing dependence of the company on equity funds for the purpose of financing its assets & less dependence on its Debt. This is a good sign for the company, as it reduces the chances of default of payment.

3) Interest Coverage Ratio – This is the measure of protection available to the creditors for payment of interest charges by the company. It shows whether the company has sufficient income to cover its interest requirements by a wide margin.

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It is calculated by dividing the profit before interest, tax and depreciation by the interest expense.

Interest Coverage Ratio = Earnings before Interest, Tax & DepreciationInterest Payments to Borrowers

Interest Coverage RatioYear 2009 2010 2011 2012

EBITA 46,974 57,020 67,709 66,701Interest Payments 1,338 560 1,293 1,410Interest Coverage

Ratio35.1 101.82 52.36 47.30


Interest Coverage Ratio0

20

40

60

80

100

120

2009201020112012

A high Interest Coverage Ratio implies that there is adequate safety for payment of interest even if there was a drop in the company’s earnings. Although the ratio initially increased & then decreased, it is still maintained at a healthy level.

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Liquidity Ratios

Liquidity is the ability of a business to meet its short-term obligations when they fall due. An enterprise should have enough liquid and other current assets which can be converted into cash so that it can pay its suppliers & lenders on time. For evaluating Dabur’s liquidity, we examine the following ratios:-

1) Current Ratio – It is a widely used indicator of a company’s ability to pay its debts in the short-term, and shows the amount of current assets a company has per rupee of current liabilities. Here, “current assets” include loans &advances and “current liabilities” include provisions. It is an important indicator of a company’s current and prospective liquidity position.

Current Ratio = Current AssetsCurrent Liabilities

Current RatioYear 2009 2010 2011 2012

Current Assets 74,505 91,795 1,39,732 1,63,062Current Liabilities 66,410 87,216 92,384 1,07,742

Current Ratio 1.12 1.05 1.34 1.32(All Figures in Rs. Lacs)

Current Ratio0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2009201020112012

A low Current Ratio implies a strained liquidity position for the company.

However, FMCG companies usually do not have a high current ratio because of fast conversion of inventory into cash. Therefore the Current Ratio of Dabur is less than normal. Another reason for the low ratio is that the company follows a conservative policy and has high provisions (almost 50%

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of the liabilities) which increases the liabilities and decreases this ratio. Still a gradual increase in the ratio indicates favourable conditions for the company.

2) Quick Ratio - The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better is the position of the company.

Quick Ratio = Current Assets - InventoryCurrent Liabilities

Quick RatioYear 2009 2010 2011 2012

Quick Assets 48,333 61,951 93,673 1,10,205Current Liabilities 66,410 87,216 92,384 1,07,742

Quick Ratio 0.72 0.71 1.01 1.02(All Figures in Rs. Lacs)

Quick Ratio0

0.2

0.4

0.6

0.8

1

1.2

2009201020112012

Inventory in case of Dabur forms a significant part of current Assets, hence quick ratio is low. However, the ratio has improved over the past two years, indicating that the ability of the firm to meet its short-term obligations using its quick assets has improved.

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3) Net Working Capital - It represents operating liquidity available to a business.

Net working capital is calculated as: Current Assets - Current Liabilities.

Net Working CapitalYear 2009 2010 2011 2012

Current Assets 74,505 91,795 1,39,732 1,63,062Current Liabilities 66,410 87,216 92,384 1,07,742

Net Working Capital

8,095 4,579 47,348 55,320


Net Working Capital0

10,000

20,000

30,000

40,000

50,000

60,000

2009201020112012

The NWC shot up from a modest 4,579 in ‘10 to a healthy 47,348 in ’11. This was mainly because the current assets of the company grew due to an increase in investments, inventory and cash balances whereas the current liabilities remained stable.

4) Inventory Turnover Ratio – This ratio shows the number of times a company’s inventory is turned into sales. Investment in inventory represents idle cash. The lesser the inventory, the greater the cash available for meeting operating needs. Besides, lean, fast-moving inventory runs a lower risk of obsolescence and reduces interest, insurance & storage charges.

Inventory Turnover Ratio = Cost of Goods SoldAverage Inventory

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Year 2009 2010 2011 2012Cost of Goods Sold 1,22,243 1,37,393 1,27,405 1,48,370Average Inventory 24,586 28,008 37,952 46,061

Inventory Turnover Ratio

4.97 4.90 3.35 3.22


Inventory Turnover Ratio0

1

2

3

4

5

6

2009201020112012

Inventory Turnover Ratio is usually high for an FMCG company. However, in the case of Dabur the company has accumulated huge amounts of inventory over the years. This has led to a gradual decrease in the ITR of the company. Such high levels of inventory strain the company’s liquidity & availability of cash within a short time frame.

5) Debtor Turnover Ratio – A company’s ability to collect from its customers in a prompt manner enhances its liquidity. The Debtor Turnover Ratio measures the efficacy of the firm’s credit policy and collection mechanism and shows the number of times each year the debtors turn into cash. High DTR indicates that debtors are being converted rapidly into cash and the quality of the company’s portfolio of debtors is good.

Debtor Turnover Ratio = Net Average Credit SalesAverage Debtors

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Year 2009 2010 2011 2012Net Avg. Credit

Sales2,42,368 2,65,206 3,08,053 3,51,997

Average Debtors 11,236 12,142 16,647 21,332Debtor Turnover

Ratio21.57 21.84 18.50 16.50


Debtor Turnover Ratio0

5

10

15

20

25

2009201020112012

Although the DTR of the company has decreased over the previous years, it still was able to maintain a healthy Debtor Turnover Ratio of 16.50 in the year 2012. This indicates a favourable debtor portfolio of the company.

6) Creditor Turnover Ratio – It compares creditors with the total credit purchases & signifies the credit period enjoyed by the firm in paying creditors. Accounts payable include both sundry creditors and bills payable.

The Credit Turnover Ratio represents the number of days used by the firm to repay its creditors. A high creditor turnover ratio signifies that the creditors are being paid promptly. This situation enhances the credit worthiness of the company. However a very favourable ratio to this effect also shows that the business is not taking the full advantage of credit facilities allowed by the creditors.

Creditor Turnover Ratio = Net Average Credit PurchasesAverage Creditors’

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Year 2009 2010 2011 2012Net Avg. Credit

Purchases1,22,243 1,29,818 1,32,399 1,37,888

Average Creditors 28,143 31,522 42,194 53,998Creditor Turnover

Ratio4.34 4.11 3.13 2.55


Creditor Turnover Ratio0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2009201020112012

Over the years the amount of Creditors has increased whereas the Net Purchases have remained stable. This has been a major factor contributing to the decrease in the creditor turnover ratio. Although CTR is decreasing it is still maintained at a level which is favourable for the creditors’ of the company.

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Collection Period vs. Credit Period

2009 2010 2011 20120

20

40

60

80

100

120

140

160

Collection PeriodCredit Period

The collection period is less as compared to the credit period enjoyed by the company which is in favour of the company. This means that the company has managed its debtors well and the suppliers are having a high degree of faith in it, it also enjoys a good reputation with the creditors.

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Profitability Ratios

Profitability ratios measure the degree of operating success of the company. The only reason why investors are interested in a company is that they think they will earn a reasonable return in the form of capital gain and dividends on their investment. Therefore, they are keen to learn about the ability of the company to earn revenues in excess of its expenses. Failure to earn an adequate rate of profit over a period will also drain the company’s cash and impair its liquidity. Some commonly used ratios to evaluate profitability are:-

1) Gross Profit Margin – It is used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings.It is also known as "gross margin".

Gross Profit Margin = Gross ProfitNet Sales

X100

Year 2009 2010 2011 2012Gross Profit 1,13,049 1,43,034 2,00,656 2,27,563

Net Sales 2,42,368 2,88,045 3,28,061 3,75,933Gross Profit

Margin46.64 49.65 61.16 60.53


Gross Profit Margin0

10

20

30

40

50

60

70

2009201020112012

Over the years the GPM has increased for Dabur. Although, for the year 2012 the margin decreased, it is still maintained at an attractive level. Increasing gross profit margin can mean two things for the company. First, the company has a favourable pricing power. When a firm raise price due to

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overwhelming demand, gross profit margin will increase. Secondly, increasing gross profit margin may mean that a firm is getting more efficient in production. When price per unit stays the same while the cost of variable unit drops, gross profit margin will increase.

2) Net Profit Margin – A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings.A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors.

Net Profit Margin = Net ProfitNet Sales

X100

Year 2009 2010 2011 2012Net Profit 37,356 43,333 47,141 46,324Net Sales 2,42,368 2,88,045 3,28,061 3,75,933

Net Profit Margin 15.41 15.04 14.36 12.32(All Figures in Rs. Lacs)

Net Profit Margin0

2

4

6

8

10

12

14

16

18

2009201020112012

The Net Profit Margin has decreased over the years. This decreasing trend is because of an increase in the operating costs by Dabur. The firm will have to reallocate its resources & ensure efficient working so as to improve its Net Profit Margin.

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3) Return on Capital Employed – It is a ratio that indicates the efficiency and profitability of a company's capital investments.

By comparing net income to the sum of a company's debt and equity capital, investors can get a clear picture of how the use of leverage impacts a company's profitability. Financial analysts consider the ROCE measurement to be a more comprehensive profitability indicator because it gauges management's ability to generate earnings from a company's total pool of capital.

Return on Capital Employed = PAT + InterestCapital Employed

X100

Year 2009 2010 2011 2012PAT + Interest 38,694 43,893 48,434 47,734

Capital Employed 1,55,062 1,74,346 2,40,791 2,84,071ROCE 24.95 25.17 20.11 16.80


ROCE0

5

10

15

20

25

30

2009201020112012

As indicated earlier the operating costs of the firm have been on a rise for the past few years. This has led to a decrease in its Net Profit of the company. Therefore, a proportionate increase in the Capital Employed has yielded a less proportionate increase in the Net Profit of the company. This has been a major reason for a decreasing ROCE.

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II. Trend Analysis10 Year Highlights

In Rs crores FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12OPERATING RESULTS

Net Sales 1,212

1,171 1,374 1,700

2,043 2,361 2,805

3,391 4,077 5,283

Other Income 7 9 9 13 26 34 47 48 59 80EBITDA 162 164 217 300 376 443 517 667 833 948EBITDA Margins (%) 13% 14% 16% 18% 18% 19% 18% 20% 20% 18%Profit Before Tax (PBT) 106 124 176 257 319 384 445 601 708 791Taxes 14 15 19 30 39 52 54 100 139 146Tax Rate (%) 13% 12% 11% 12% 12% 14% 12% 17% 20% 19%Profit After Tax (PAT) 85 107 156 214 282 333 391 501 569 645PAT Margins (%) 7% 9% 11% 13% 14% 14% 14% 15% 14% 12%EQUITY SHARE DATA

Earnings Per Share (Rs) 3 3.7 5.4 3.7 3.3 3.9 4.5 5.8 3.3 3.7Dividend Per Share (Rs) 1.4 2 2.5 1.8 1.4 1.5 1.8 2 1.3 1.4No of Shares (In Crs) 28.6 28.6 28.6 57.3 86.3 86.4 86.5 86.9 174.1 174.2


Sales

FY09 FY10 FY11 FY120

1,000

2,000

3,000

4,000

5,000

6,000

Net Sales

Net Sales

Net sales have shown an increasing trend over the four years. Sales have increased by 88% from FY09 to FY12.

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EBITDA


100

200

300

400

500

600

700

800

900

1000

EBITDA

EBITDA

FY09 FY10 FY11 FY1217

17.5

18

18.5

19

19.5

20

20.5

EBITDA Margin %

EBITDA Margin %

The EBITDA in absolute amount has increased over the four years from 517 crores to 948 crores representing a increase of 83% over four years.

The EBITDA Margin, however has declined for FY12 to 18% from 20% in FY11. So, even though EBITDA has increased by 14% over the previous year, the sales have increased by 30% over the previous year due to which the EBITDA Margin has declined. EBITDA Margin remained stable from FY10 to FY11 at 20%.

Profit after Tax (PAT)


100

200

300

400

500

600

700

391

501

569

645

PAT

PAT

PAT has increased significantly over the years for Dabur. PAT has increased by 65% over the four year period.

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Earnings Per Share And Dividend Per Share

FY09 FY10 FY11 FY12

EPS 4.5 5.8 3.3 3.7

DPS 1.8 2 1.3 1.4

0.5

1.5

2.5

3.5

4.5

5.5

6.5

7.5

8.5

The above chart indicates that both EPS and DPS have not been stable for Dabur over the four year period. Also it is evident that there exists a relation between EPS and DPS, that is when the company has a higher EPS then its DPS is also higher and vice versa.

Horizontal Balance Sheet Comparison (2011 and 2012)

AmountChange

PercentageChange(Rs. in lacs ) As at As at

Particulars March 31, 2012 March 31, 2011

I EQUITY AND LIABILITIES1. Share holders’ Fundsa) Share Capital 17,421 17,407 14 0%b) Reserves and Surplus 1,12,906 92,709 20,197 22%2. Non-current liabilitiesa) Long Term borrowings 114 551 (437) -79%b) Deferred Tax Liabilities (Net) 2,711 1,740 971 56%c) Long-term provisions 43,177 36,000 7,177 20%3. Current Liabilities

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a) Short-term borrowings 27,667 24,650 3,017 12%b) Trade payables 58,511 49,486 9,025 18%c) Other current liabilities 5,501 3,777 1,724 46%

d) Short-term provisions 16,063 14,471 1,592 11%

Total 2,84,071 2,40,791 43,280 18%

II. ASSETS1. Non-current assetsa) Fixed Assetsi) Tangible assets 57,819 49,253 8,566 17%ii) Intangible assets 714 503 211 42%iii) Capital work-in-progress 1,158 437 721 165%iv) Intangible assets under Development - - - 0%

b) Non-current investments 15,948 10,211 5,737 56%c) Long-term loans and advances 39,987 32,361 7,626 24%d) Other non-current assets 5,383 8,294 (2,911) -35%2. Current assetsa) Current investments 39,324 41,738 (2,414) -6%b) Inventories 52,857 46,059 6,798 15%c) Trade receivables 22,417 20,246 2,171 11%d) Cash and cash equivalents 29,129 19,241 9,888 51%e) Short-term loans and advances 14,113 9,134 4,979 55%

f ) Other current assets 5,222 3,314 1,908 58%

Total 2,84,071 2,40,791 43,280 18%

III. Balance Sheet & Profit and Loss a/c Comparison

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Horizontal Balance Sheet Comparison (2010 and 2011)31-03-2011

31-03-2010 Change % Change

SOURCES OF FUNDSShareholders' FundsCapital 17,407 8,690 8,717 100.31%Reserves & Surplus 92,709 66,248 26,461 39.94%Loan FundsSecured Loans 1,757 2,427 -670 -27.61%Unsecured Loans 23,987 8,570 15,417 179.89%Deferred Tax Liability (Net) 1,740 1,195 545 45.61%Total 1,37,600 87,130 50,470 87,130

APPLICATION OF FUNDSFixed AssetsGross Block 76,688 68,723 7,965 11.59%Less : Depreciation 26,932 23,628 3,304 13.98%Net Block 49,756 45,095 4,661 10.34%Capital work in Progess (including capital advances) 1,192 2,331 -1,139 -48.86%Investments 51,923 34,851 17,072 48.99%Current Assets, Loans and AdvancesInventories 46,058 29,844 16,214 54.33%Sundry Debtors 20,246 13,048 7,198 55.17%Cash & Bank Balances 19,241 16,391 2,850 17.39%Loans & Advances 44,053 32,512 11,541 35.50%Current InvestmentsTotal :Current Assets, Loans and Advances 1,29,598 91,795 37,803 41.18%Less: Current Liabilities and ProvisionsLiabilities 49,628 43,206 6,422 14.86%Provisions 53,536 44,010 9,526 21.65%Total :Current Liabilities and Provisions 1,03,164 87,216 15,948 18.29%Net Current Assets 26,434 4,579 21,855 477.29%Miscellaneous Expenditure (To the extent not written off or adjusted) 8,295 274 8,021 2927.37%Total 1,37,600 87,130 50,470 57.92%

Horizontal Balance Sheet Comparison (2009 and 2010)

31-03-2010

31-03-2009 Change % Change

SOURCES OF FUNDSShareholders' FundsCapital 8,690 8,651 39 0.45%Reserves & Surplus 66,248 65,169 1,079 1.66%Loan FundsSecured Loans 2,427 1,065 1,362 127.89%Unsecured Loans 8,570 13,072 -4,502 -34.44%Deferred Tax Liability (Net) 1,195 695 500 71.94%Total 87,130 88,652 -1,522 -1.72%

APPLICATION OF FUNDSFixed AssetsGross Block 68,723 51,877 16,846 32.47%Less : Depreciation 23,628 21,045 2,583 12.27%Net Block 45,095 30,832 14,263 46.26%Capital work in Progess (including capital advances) 2,331 5,171 -2,840 -54.92%Investments 34,851 43,690 -8,839 -20.23%Current Assets, Loans and AdvancesInventories 29,844 26,172 3,672 14.03%Sundry Debtors 13,048 11,236 1,812 16.13%Cash & Bank Balances 16,391 14,369 2,022 14.07%Loans & Advances 32,512 22,728 9,784 43.05%Current InvestmentsTotal :Current Assets, Loans and Advances 91,795 74,505 17,290 23.21%Less: Current Liabilities and ProvisionsLiabilities 43,206 33,121 10,085 30.45%Provisions 44,010 33,289 10,721 32.21%Total :Current Liabilities and Provisions 87,216 66,410 20,806 31.33%Net Current Assets 4,579 8,095 -3,516 -43.43%Miscellaneous Expenditure (To the extent not written off or adjusted) 274 864 -590 -68.29%Total 87,130 88,652 -1,522 -1.72%

Assets

Fixed Assets

Dabur owns fixed assets worth 59,691 lacs. Fixed assets primarily comprise of -

Fixed Assets 2011 2012Tangible assets 57819 49253Intangible assets 714 503Capital work-in-progress 1158 437Intangible assets under Development

- -


Net Fixed Assets have increased over the 4 years. The Net Fixed Assets have increased by 94% from 31/3/2009 to 31/3/2012.Dabur has acquired 13638 lacs of fixed assets over the year, in previous the acquisition were only 9010 lacs. The acquisition majorly included- purchase of Building- 4314 lacs and Plant & Equipment 6772 lacs.

2012 2011 2010 2009 -

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Net Fixed Assets

Net Fixed Assets

Non-Current Investments (NCI)

NCI as at 31/3/2012 for Dabur is at 15948 lacs which is 5737 lacs more when compared to previous year- 10211, which indicates an 56% increase in it's NCI. This increase can largely attributed to Investments in Government Securities by Dabur. These are-

Power Finance Corporation 2957Rural Electrification Corporation 3855NHAI Bonds 381Indian Railway Finance Corporation 1599


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Dabur has also increased Investment in subsidiaries in fully paid equity instruments in Dabur International Ltd.

Long term Loans & Advances

It comprises majorly of Advance payment of tax, the amount for advance payment of tax has increased from32361 to 39987 lacs indicating 24% increase.

Other Non-Current AssetsThis includes miscellaneous expenditure. There has been a decline 2911 lacs showing a 35% decrease. The additions when compared to previous year have fallen by 92%.

Current Investments

A decline of 6% has been noted over the previous year. Fall in current investments is due to decline in Certificate of deposits, while the company has made investments in mutual funds- Principal Mutual Fund and Reliance Mutual Fund.

Inventories

Inventories has increased by 15%, this is due to the 50% increase in WIP and a 25% in stock in trade.

Trade Receivables

As on 31/3/2011-20246

As on 31/3/2012-22417

Of the unsecured debts outstanding for a period of above 6 months the ones considered good have increased by 200%. The provision for doubtful debts has remained almost the same.

Cash and Cash Equivalents

It consists of Balances with Banks, Cheques / drafts in hand and Cash-in-Hand.

There has been a 50 % increase in Cash and cash equivalents which is due a 50% increase in Balances with Banks.

Short-term loans and advances and Other current assets

The 55 % in short term loans is due to an increase in-

Capital Advance - 80%Loans & Advances to Related Parties- 150%

Advances to Suppliers-55%

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The 58% increase in other current assets is due to a 164% increase in interest on FD's, CD's, CP's and government bonds. Also there has been income tax refund due for 970 lacs this year.

2012 2011 2010 2009 -

10,000

20,000

30,000

40,000

50,000

60,000

Inventories Sundry Debtors Cash & Bank Balances Loans & Advances

Equity and Liabilities

Share Holders’ Funds

Share capital for Dabur has gone up from 17407 lacs to 17421 lacs indicating a change of 14 lacs. Dabur has issued 1377056 Employee stock options (ESOP) in equity shares in the previous year having a face value 1 Rs each.

Reserve & Surplus

Its components are

Capital Reserve, Securities Premium Reserve, Investment Revaluation Reserve, ESOP Outstanding, General Reserve, Profit and Loss a/c.

The reserves and Surplus has increased by 22% which is due to 87% increase in General Reserve, 114% increase in Securities Premium Reserve and a 21% increase in P&L changes.

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Long Term Borrowings

Long Term borrowings comprise of Foreign CurrencyTerm Loans from Bank, Deferred payment Liability and Deferred Sales Tax Liabilities and the long term borrowings have reduced by 437 lacs or 79%.Dabur borrowed 551 lacs including both secured and unsecured for year ending 31 March 2011, whereas for the year ended 31 March 2012 it has fallen to 114 lacs.

01/01/2009 01/01/2010 01/01/2011 01/01/20120

20000

40000

60000

80000

100000

120000

140000

Capital And Reserves and SurplusLoan Funds

Long Term Provisions

Long term provisions have increased by 20% which is mainly due to Provision for Taxation increasing by 23%.

Current Liabilities

Current Liabilities have increased by 15358 or by 17%.

Dabur's Current Liabilities include:

a) Short-term borrowingsThese have increased due to 344% increase in Packing Credit Loan from Banks.

b) Trade payables- These have increased by 18% over the previous year.

c) Other current liabilities- The Increase is due to the increase in Advance from customers and Statutory Liabilities by 192% and 45% respectively.

d) Short-term provisions- The 11% increase is due to the increase in Gratuity payable, Liability Disputed, Proposed Dividend and Dividend Tax.

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Income Statement AnalysisFor the year ended 31 March

Particulars 2012 2011 2010 2009

INCOME

Sales Less Returns 3,79,805 3,29,536 2,87,954 2,42,368

Less: Excise Duty 3,872 3,099 2,358 2,752

Net Sales 3,75,933 3,26,437 2,85,596 2,39,616

Other Income 5,335 4,946 4,164 4,306

Total Income 3,81,268 3,31,383 2,89,760 2,43,922

EXPENDITURE:

Cost of Materials 2,07,942 1,65,065 1,37,393 1,22,243

Manufacturing Expenses - 8,891 7,618 7,076

Payments to and provisions for Employees 24,337 23,084 21,234 16,732

Selling and Administrative expenses 83,732 67,991 65,706 50,901

Financial Expenses 1,410 1,293 1,349 1,334

Miscellaneous Expenditure Written off - 1,660 566 394

Depreciation 6,588 3,773 3,191 2,742

Changes in inventories of FG, WIP & Stock in trade -5,933 - - -

Total Expenditure 3,18,076 2,71,757 2,37,057 2,01,422

Balance being Operating Net Profit before Taxation 63,192 59,626 52,703 42,500

Provision for Taxation: Current 11,445 11,940 8,966 4,748

Deferred 934 545 404 -255

Fringe - - - 651

Extraordinary Items -4,489 - - -

Net Profit After Taxation 46,324 47,141 43,333 37,356

Balance Brought Forward 71,422 52,691 42,894 32,323

Provision for Taxation of earlier years written - -19 -2 -

Provision for Taxation of earlier years - 19 21 72

1,17,746 99,832 86,208 69,607

APPROPRIATIONS

Interim Dividend 9,581 8,704 6,498 6,488

Proposed Final Dividend 13,066 11,315 10,862 8,651

Final Dividend(for earlier year) - 15 - -

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Corporate Tax on Interim Dividend 1,554 1,446 1,104 1,103

Corporate Tax on Proposed Dividend 2,120 1,836 1,846 1,470

Excess Corporate Tax on dividend of earlier - -40 - -

Transferred to Capital Reserve 14 134 207 1

Transferred to General Reserve 5,000 5,000 13,000 9,000

Balance carried over to Balance sheet 86,411 71,422 52,691 42,894

1,17,746 99,832 86,208 69,607

EARNING PER SHARE (inRs) after consideration extraordinary items

Basic 2.92 2.71 2.50 4.31

Diluted 2.9 2.69 2.49 4.29

EARNING PER SHARE (inRs) without consideration

Basic 2.66 2.71 2.50 4.31

Diluted 2.64 2.69 2.49 4.29

Sales

The sales for Dabur have been increasing over the for year period. The sales have increased by 15% over the previous year and by 57% over 4 years. The Domestic and Export sales have also increased by 14 and 29% respectively over the last year

The excise duty has also been rising over the years and has been on an increasing trend.

Other Income comprises of Interest Income, Dividend Income, Net gain/(loss) on sale of Current Investments and Gain on Sale of Fixed Assets. It has increased by 24% over the four years.

Figures for the sales and other incomes indicate that other incomes is very less compared to the sales figure which means that the company is completely dependent on the operational activities and does not derive much income from other sources.

Expenditure

Cost of Materials - It has increased continuously gone up and has increased by 70% from 2009 to 2012. The cost of materials includes Raw Materials Consumed, Packing Materials Consumed, purchase of Finished Products and Adjustment of Stocks in process and Finished Goods.

Payments to and provisions for Employees- It includes Salaries, Wages and Bonus, Contribution to Provident and Other Funds, Workmen and Staff Welfare, Director’s Remuneration and ESOP Expenses. It has increased by 45% over the four years.

Selling and Administrative expenses- These include many expenses which are Rent Rates Taxes Insurance Sales Tax, Freight & Forwarding Charges, Commission, Discount and Rebate and Advertising and Publicity. The expenses have gone up by 64%.

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Depreciation- The Depreciation expense has gone up by 140% or 3846 lacs.

The total expenditure has gone up by 58%, whereas the total income has gone up by only 56%.

Net Profit after Taxation- It had an increasing trend for the first three years in the last year however the total Net Profit after Taxation has decreased when compared to previous year.

Common Size Income Statements AnalysisFor the year ended 31 March

2012 2011 2010 2009

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INCOMESales Less Returns 101% 101% 101% 101%Less: Excise Duty 1% 1% 1% 1%Net Sales 100% 100% 100% 100%Other Income 1% 2% 1% 2%Total Income 101% 102% 101% 102%EXPENDITURE:Cost of Materials 55% 51% 48% 51%Manufacturing Expenses 0% 3% 3% 3%Payments to and provisions for Employees 6% 7% 7% 7%Selling and Administrative expenses 22% 21% 23% 21%Financial Expenses 0% 0% 0% 1%Miscellaneous Expenditure Written off 1% 0% 0%Depreciation 2% 1% 1% 1%Changes in inventories of FG, WIP & Stock in trade -2% 0% 0%Total Expenditure 85% 83% 83% 84%Balance being Operating Net Profit before Taxation 17% 18% 18% 18%Provision for Taxation: Current 3% 4% 3% 2%Deferred 0% 0% 0% 0%Fringe 0% 0% 0% 0%Extraordinary Items -1% 0% 0% 0%Net Profit After Taxation 12% 14% 15% 16%Balance Brought Forward 19% 16% 15% 13%Provision for Taxation of earlier years written 0% 0% 0% 0%Provision for Taxation of earlier years 0% 0% 0% 0%

31% 31% 30% 29%APPROPRIATIONSInterim Dividend 3% 3% 2% 3%Proposed Final Dividend 3% 3% 4% 4%Final Dividend(for earlier year) 0% 0% 0% 0%Corporate Tax on Interim Dividend 0% 0% 0% 0%Corporate Tax on Proposed Dividend 1% 1% 1% 1%Excess Corporate Tax on dividend of earlier 0% 0% 0% 0%Transferred to Capital Reserve 0% 0% 0% 0%Transferred to General Reserve 1% 2% 5% 4%Balance carried over to Balance sheet 23% 22% 18% 18%

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Chapter 4

Cash Flow Statement Analysis

Cash Flow StatementMar ‘12 Mar ‘11

Net Profit Before Tax 63,192 59,626

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Net Cash From Operating Activities 52,012 33,861Net Cash (used in)/fromInvesting Activities

-18,858 -22,222

Net Cash (used in)/from Financing Activities

-23,266 -8,789

Net (decrease)/increase In Cash and Cash Equivalents

9,888 2,850

Opening Cash & Cash Equivalents 19,241 16,391Closing Cash & Cash Equivalents 29,129 19,241


The given cash flow statement is for the year ended 31-Mar-012. AS-3 deals with the cash flow statement. Disclosure of cash flow from operating activity is done through indirect method. All Accounting Policies followed by the company abide by the GAAP and thus are permissible.

Features of Cash Flow Statement

The cash flow statement shows how much cash comes in and goes out of the company over the quarter or the year, because it shows how much actual cash a company has generated, the statement of cash flows is critical to understanding a company's fundamentals. It shows how the company is able to pay for its operations and future growth.

Indeed, one of the most important features you should look for in a potential investment is the company's ability to produce cash. Just because a company shows a profit on the income statement doesn't mean it cannot get into trouble later because of insufficient cash flows. A close examination of the cash flow statement can give investors a better sense of how the company will fare.

Three Sections of the Cash Flow Statement Companies produce and consume cash in different ways, so the cash flow statement is divided into three sections: cash flows from operations, financing and investing. Basically, the sections on operations and financing show how the company gets its cash, while the investing section shows how the company spends its cash.

- Cash Flows from Operating Activities This section shows how much cash comes from sales of the company's goods and services, less the amount of cash needed to make and sell those goods and services. Investors tend to prefer companies that produce a net positive cash flow from operating activities. High growth companies, such as technology firms, tend to show negative cash flow from operations in their formative years. At the same time, changes in cash flow from operations typically offer a preview of changes in net future income. Normally it's a good sign when it goes up. Watch out for a widening gap between a company's reported earnings and its cash flow from operating activities. If net income is much higher than cash flow, the company may be speeding or slowing its booking of income or costs.

- Cash Flows from Investing Activities

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This section largely reflects the amount of cash the company has spent on capital expenditures, such as new equipment or anything else that needed to keep the business going. It also includes acquisitions of other businesses and monetary investments such as money market funds.

You want to see a company re-invest capital in its business by at least the rate of depreciation expenses each year. If it doesn't re-invest, it might show artificially high cash inflows in the current year which may not be sustainable.

- Cash Flow from Financing Activities

This section describes the goings-on of cash associated with outside financing activities. Typical sources of cash inflow would be cash raised by selling stock and bonds or by bank borrowings. Likewise, paying back a bank loan would show up as a use of cash flow, as would dividend payments and common stock repurchases.

Activity Wise Analysis

- Operating Activities

All of the cash inflows of Dabur India Limited during 2012 have been contributed by operating activities indicating a strong cash position. Dabur India Limited had a net cash inflow in respect of working capital which is an indicator of efficient management of working capital by the company. Net cash from operations went up by 34 % indicating strong operational financial performance.

- Investing Activities

Dabur India Limited has spent huge sums on purchase of investments in its subsidiaries indicating that the company’s future prospects are expected to grow. However this huge outflow of cash is met by selling investments which have matured. The company also purchased fixed assets which indicate that the company is undergoing expansion and is likely to produce higher future revenues.

- Financial Activities

There has been a decrease in money generated by issuance of shares as compared to last year to the extent of 50%. Dabur India Limited has had substantial net outflow in respect of payment of dividends indicating its strong cash position. However, the company indulges long term borrowings which aren’t required for a cash rich firm. Dividend payment has increased by 6% in the year indicating a strong desire to maintain the goodwill of the company in the market. It also shows that the company is making huge profits.

Quality of Cash Position

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The information provided by the cash flow statements of Dabur India Limited appears to indicate a high quality of cash position.

It has been generating cash from operating activities and utilizing this money in expanding its business and in paying dividends. Almost all cash from operations is contributed by the core operations of the firm and not by extraordinary item or WC changes. It indicates a favourable position for the firm in the present and the future.

Ability to Generate Positive Cash Flows from Operations in Future

Dabur India Limited has generated cash from operations in both the years. The amount, increased this year, is 34% more than last year. Information provided by its profit and loss account establishes that almost all of the cash flow from operations in the current year is as a result of sale of finished goods. This indicates that the company has a good ability to generate cash in the future also. Given the huge amounts of money spend on expanding the business, its revenues are only expected to increase in future.

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Chapter 5

SWOT Analysis

SWOT ANALYSIS

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Strengths

Dabur India is the fourth largest company in FMCG segment with a revenue of US$ 1 Billions

Dabur has its own heritage, it is more than 100 years old , established in the year 1884

It has presence in around 60 countries across the world

It is the world’s largest ayurvedic medicine provider

Dabur has extensive distribution service network with 50 carrying & forwarding agents

Dabur has the largest distributors in its respective segment, around 5000

The top performing five master brands are Dabur, Vatika, Hajmola, Real, Fem

It has 17 sophisticated manufacturing facilities

The product length includes around 300 prescribed products and few of them are sold over the

counter

Dabur product categories include health care, personal care, foods, home care, consumer health –

OTC/ethical, professional range

Weaknesses

Dabur doesn’t have direct company outlets

Lack of awareness of products by customers

Doctors prescribe allopathy medicines as they get more incentives from medical companies and the

share of ayurvedic companies are less compared to allopathy

According to a survey the number of registered practitioners in Ayurveda is less than 3.7 lacks which

is a meagre figure compared to allopathy doctors

Ayurvedic medicine takes time to cure compare to allopathy medicine

Opportunities

Dabur is the world’s largest ayurvedic medicine and its export quantities are constantly in demand in

foreign market

The affinity towards yoga and Hinduism is proving more advantageous towards the reach

of ayurvedic medicines globally

People have started realizing that ayurvedic medicines like Dabur, Himalayas etc doesn’t have much

of side effects

Growing women’s earning power has made them independent and has made them to be more

health and beauty conscious – a segment in which Dabur too is trying to capitalise with its products

Improper and unhealthy food habits due to modernization has forced people to take ayurvedic

supplementary like Chavanaprash, Hajmola, and life style medicines

Ayurveda as a field is receiving much more attention across the world in the last 2–3 years. Thus

huge opportunity for Dabur to capitalize on the market sentiments.

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Threats

The allopathy players are of major threat as they invest heavily on advertising and distribution of

their products through medical representatives etc

Some ayurvedic doctors give their own medicines or give a mixture of Ayurvedic Company’s product

without packaging (loose medicines). This reduces the sales in the market and dilutes the brand

image

Since ayurvedic medicinal practise is obtained traditionally there are many untrained professions

who take up the profession

Lead and ferric content is more present in many ayurvedic medicine, this may sometime result in

reverse side effects when consumer over longer period

Kerala is an ayurvedic hub, for most of the treatments. Hence people visit directly and attend health

camps to get cured.

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Financial Analysis of Dabur

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