MONIKA

SRITHARAN MURALI PURNIMA

FMCG
Fast moving consumer goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial.

FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs such as meat, fruits and vegetables, dairy products and baked goods are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates.

The Indian FMCG industry went through a roller coaster ride during the last decade. It experienced a slump between FY02 and FY04. From FY05 onwards, however, it has witnessed rapid growth. As it stands now, the contributions of vaious goods to the total industry revenues are: Foods contribute 52% share Non-foods contribute 45% share Over-the-counter (OTC) pharma products contribute 3% share. India has nearly 80 lakh FMCG retail outlets.

The Indian FMCG industry is likely to continue growing anywhere between 15% and 20% driven by the following factors: Changing consumer profile Wider consumer base Shift from unorganized players Greater per-capita consumption

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

Within the Indian FMCG industry, Dabur has successfully positioned itself on the herbal, natural and ayurvedic plank. The company's portfolio comprises of over 350 products.
It has 5 flagship brands with distinct identities Dabur, Vatika, Hajmola, Real and Fem. It has 10 brands with sales of over Rs 100 crores each.

The companys distribution network covers almost 30 lakh retailers across India.

It has 17 manufacturing plants.

Dabur divides its business into 3 major strategic business units (SBUs) consumer care, international business and consumer health.

The consumer care SBU is the largest, contributing 72% of total revenues, international business (18%) consumer health (8%).
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17 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries

It is a leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09)
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3 Subsidiary Group companies Dabur International, Fem Care Pharma newu

Group companies
With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently. Given the vast range of products, sourcing, production and marketing have been divested to the group companies that conduct their operations independently:

8 step down subsidiaries:

Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE)

Jaquline Inc. (USA).

Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods Master brands:

Dabur - Ayurvedic healthcare products Vatika - Premium hair care Hajmola - Tasty digestives Ral - Fruit juices & beverages

Fem - Fairness bleaches & skin care products

Consumer Health Division (CHD) offers a range of classical ayurvedic medicine and Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats Has more than 300 products sold through prescriptions as well as over the counter

International Business Division (IBD) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North & West Africa, EU and the US with its brands Dabur & Vatika Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales

Founding Thoughts "What is that life worth which cannot bring comfort to others"

The doorstep 'Daktar' 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.

Sustainability Report . With a portfolio of Ayurveda and nature-based products, conservation of nature & natural resources is deep rooted in the organizational DNA, and in every aspect of their ever-growing business.

Intensive focus is laid on: conservation of energy technology absorption

health safety and environmental review

ACCOLADES

Burman family, promoters of Dabur, ranked 20th in the Forbes India list of 100 Richest Indians
Dabur ranked 177 in the BW Real 500 list of biggest and best Corporate Houses in India Dabur, Hajmola, Babool ranked among Top 100 Most Trusted Brands of 2011, by Economic Times Brand Equity. Vatika Enriched Coconut Hair Oil has bagged the Beauty & Style Editors Choice Award 2011 in the hair oil category

Dabur CEO Mr. Sunil Duggal ranked by analysts as the TopPerforming CEO in Consumer space

Dun & Bradstreet assigns D&B Rating 1 to Dabur, indicating that Dabur has the highest level of creditworthines. Two consumer campaigns by Dabur -- with its brands Odomos & Ral Activ bag international recognition at Promotion Marketing award of Asia

The Burman family, promoters of Dabur, ranked 22 in the India Super Rich, 2011, released by Business World

Dabur ranked 22 in the latest list of India's 100 Most Valuable Brands 2011, issued by 4Ps Business & Marketing Dabur India Ltd among the twelve 100-year-Young Companies that continue to make history by effectively responding to change Dabur ranked the No. 2 Indian Green Brand by consumers in the Green Brands Global Survey 2011 Ral bags Readers Digest Trusted Brand Gold Award 2010 in F&B (Juice) category for 6th year in a row Dabur India Ltd Chairman Dr. Anand Burman ranked amongst India's Most Powerful CEOs

Dabur India Limited : Dabur India Q2 Revenue Up 29.5% To Rs1,269.72 Crore Consolidated Profit for the quarter grows 8.4% to Rs 173.86 Cr Q2 EBITDA marks 16.5% growth Strong growth in its key business categories, calibrated price hikes and stringent cost-saving initiatives helped Dabur mitigate the impact of rising Inflation in the second quarter of 2011-12 financial year and end the quarter with an 8.4% growth in Profit. Net profit stood at Rs 173.86 Crore in the quarter ended September 30, 2011, up from Rs 160.35 Crore in the same period a year earlier. The company's consolidated Gross Sales for the quarter stood at Rs 1,269.72 Crore, up 29.5% from Rs 980.46 Crore a year ago.

Net Profit for the first half of the 2011-12 fiscal marked a 12.9% growth to Rs 301.57 Crore, while Gross sales for the six-month period was up 30.5% at Rs 2,485.96 Crore. "The operating environment was extremely challenging and it impacted our margins during the period. Despite the challenges, effective management of costs helped Dabur expand its EBITDA by 16.5%.

The Hair Oil category for Dabur reported a 26.6% growth during the second quarter, led by Dabur Amla the Foods business registered a robust 27.5% growth during the quarter. Dabur's Toothpaste category ended the period with a 7.8% gain helping the Company report a near 1% gain in market share during the quarter. Dabur's Health Supplements portfolio also ended the second quarter with a 7.8% growth.