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Dabur Success Story

TABLE OF CONTENTS CHAPTER| PARTICULARS| PAGE NO| 1| LOGO OF THE COMPANY| | 2| INTRODUCTION(VISION,MISSION,OBJECTIVE)| | 3| BUSINESS| | 4| PRODUCT AND MARKET PROMOTER| | 5| EXPANSION AND FUTURE PLAN| | 6| FINANCIAL DETAIL| | 7| CORPORATE INFORMATION OF THE COMPANY| | 8| SHARE PRICE ANALYSIS| | 9| ACHIVEMENTS OF BUSINESS| | 10| GRAPH AND CHART| | 11| BIBLOGRAPHY| | Chapter-1 LOGO OF THE COMPANY Chapter-2 INTRODUCTION Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods.

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From its humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. For the past 125 years, we have been dedicated to providing nature-based solutions for a healthy and holistic Lifestyle. Through our comprehensive range of products, we touch the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped us develop a bond of trust with our consumers.

That guarantees you the best in all products carrying the Dabur name . History Dabur India Limited is India’s leading FMCG company with interests in health care, personal care and foods. Dabur has a history of more than 100 years and the company has carved a niche for it self in the field of Ayurvedic medicines. The products of Dabur are marketed in more than 50 countries worldwide. The company has 2 major strategic business units (SBU) – Consumer Care Division (CCD) & Consumer Health Division (CHD), and 3 Subsidiary Group companies – Dabur Foods, Dabur Nepal and Dabur International.

Dabur International has 3 step down subsidiaries -Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. The origin of Dabur can be traced back to 1884 when Dr. S. K. Burman started a health care products manufacturing facility in a small Calcutta pharmacy. In 1896, as a result of growing popularity of Dabur products, Dr. Burman set up a manufacturing plant for mass production of formulations. In early 1900s, Dabur entered the specialized area of nature based Ayurvedic medicines. In 1919, Dabur established research laboratories to develop scientific processes and quality checks.

In 1936, Dabur became a full-fledged company with the name Dabur India (Dr. S. K. Burman) Pvt Ltd. Dabur shifted its operations to Delhi in 1972. Dabur became a Public Limited Company in 1986 and Dabur India Limited came into existence after reverse merger with Vidogum Limited. In 1992, Dabur entered into a joint venture with Agrolimen of Spain to manufacture and market confectionary items in India. In 1994, Dabur raised its first IPO. In 1998, day to day running of the company was handed over to professionals. In 2000, Dabur achieved a turnover of Rs 1000 crores.

In 2005, Dabur acquired Balsara. Dabur crossed $ 2 billion. Some of the well-known brands of Dabur are: Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara, Babool Toothpaste, Hingoli, Dabur Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and Vatika. ————————————————- Events Year:| Event:| 1884| Dr. S K Burman lays the foundation of what is today known as Dabur India Limited. Starting from a small shop in Calcutta, he began a direct mailing system to send his medicines to even the smallest of villages in whole of India. 1896| As the demand for Dabur products grows Dr. Burman feels the need for mass production of some of his medicines. He sets up a small manufacturing plant at Garhia near Calcutta| Early 1900s| The next generation of Burmans take a conscious decision to enter the Ayurvedic medicines market, as they believe that it is only through Ayurveda that the healthcare needs of poor Indians can be met. | 1919| The search for processes to suit mass production of Ayurvedic medicines without compromising on basic Ayurvedic principles leads to the setting up of the first Research & Development laboratory at Dabur.

This initiates a painstaking study of Ayurvedic medicines as mentioned in age-old scriptures, their manufacturing processes and how to utilize modern equipment to manufacture these medicines without reducing the efficacy of these drugs| 1920| A manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and Daburgram. Dabur expands its distribution network to Bihar and the northeast. | 1936| Dabur India (Dr. S K Burman) Pvt. Limited is incorporated. | 1940| Dabur diversifies into personal care products with the launch of its Dabur Amla Hair Oil.

This perfumed heavy hair oil catches the imagination of the common man and film stars alike and becomes the largest hair oil brand in India. | 1949| Dabur Chyawanprash is launched in a tin pack and becomes the first branded Chyawanprash of India. | 1956| Dabur buys its first computer. Accounts and stock keeping are one of first operations to be computerized. | 1970| Dabur expands its personal care portfolio by adding oral care products. Dabur Lal Dant Manjan is launched and captures the Indian rural market. | 1972| Dabur shifts base to Delhi from Calcutta.

Starts production from a hired manufacturing facility at Faridabad. | 1978| Dabur launches the Hajmola tablet. This is the first time that a classical Ayurvedic medicine is branded -from Shudhabardhak bati to Hajmola tablet. | 1979| The Dabur Research Foundation (DRF), an independent company, is set up to spearhead Dabur’s multi-faceted research. | 1979| Commercial production starts at Sahibabad. This is one of the largest and most modern production facilities for Ayurvedic medicines in India at that time (and even at this time also). 1984| The Dabur brand turns 100 but is young enough to experiment with new offerings in the market. | 1986| Dabur becomes a public limited company through reverse merger with Vidogum Limited, and is re-christened Dabur India Limited. | 1989| Hajmola Candy is launched and captures the imagination of children and establishes a large market share| 1992| Dabur enters into a joint venture with Agrolimen of Spain for manufacturing and marketing confectionery items such as bubble gums in India. | 1993| Dabur sets up the oncology formulation plant at Baddi, Himachal Pradesh. 1994| Dabur India Limited comes out with its first public issue. The Rs. 10 share is issued at a premium of Rs. 85 per share. The issue is oversubscribed 21 times. | 1994| Dabur reorganizes its business with sales and marketing operations being divided into 3 separate divisions. | 1994| Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Paclitaxel). Dabur becomes only the second company in the world to launch this product. The Dabur Research Foundation develops the unique eco-friendly process of extracting the drug from the leaves of the Asian Yew tree. 1995| Dabur enters into a joint venture with Osem of Israel for food and Bongrain of France for cheese and other dairy products| 1996| Dabur launches Real Fruit Juice which heralds the company’s entry into the processed foods market. The core team comprised three men who launched this brand: Kartik Raina, Treman Ahluwalia and Rajeev Gogte. The brand went on to become one of the biggest successes in the history of Dabur. | 1997| The Foods division is created, comprising of Real Fruit Juice and Hommade cooking pastes to form the core of this division’s product portfolio. 1997| Project STARS (Strive To Achieve Record Successes) is initiated by the company to achieve accelerated growth in the coming years. The scope of this project is strategic, structural and operational changes to enable efficiencies and improve growth rates. | 1999–2000| Dabur achieves the Rs. 1000 Crore turnover mark| Chapter-3 BUSINESS Dabur 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 new and 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) and Jaquline Inc. USA). * 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. million retail outlets all over India| 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 * Real – Fruit juices & beverages * Fem – Fairness bleaches & skin care products * 9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Real, 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| | Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines 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 * Major categories in traditional formulations include: – Asav Arishtas – Ras Rasayanas – Churnas – Medicated Oils * Proprietary Ayurvedic medicines developed by Dabur include: – Nature Care Isabgol – Madhuvaani Trifgol * Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students | | 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 * Leveraging the ‘Natural’ preference among local consumers to increase share in perosnal care categories * Focus markets: – GCC – Egypt – Nigeria – Bangladesh – Nepal – US * High level of localization of manufacturing and sales & marketing| | VISION “Dedicated to the health and well being of every household” PASSION FOR WINNING We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most. PEOPLE DEVELOPEMENT

People are our most important asset. We add value through result driven training, and we encourage & reward excellence. CONSUMER FOCUS We have superior understanding of consumer needs and develop products to fulfill them better. TEAM WORK We work together on the principle of mutual trust & transparency in a boundary-less organisation. We are intellectually honest in advocating proposals, including recognizing risks. INNOVATION Continuous innovation in products & processes is the basis of our success. INTEGRITY We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other. MISSION

Dabur’s mission of popularising a natural lifestyle transcends national boundaries. Today, there is growing global awareness on alternative medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularising this alternative way of life, marketing its products in more than 60 countries all over the world. Chapter-4 OUR PRESENT PRODUCTS RANGE * Health care. * Personal care. * Foods. * Home care. Dabur India ltd. (DIL) is the largest player in the ayurvedic pharmaceuticals and OTC sector. The company has interests in sectors like Healthcare, Personal care, Ayurvedic pharmaceuticals and Food Products.

The company enjoys strong brand equity in most of the segments where it has a presence with brands like, Chawanprash, Hajmola, Pudin Hara, Vatika, to name a few. The company is focusing on ayurvedic and herbal care products. Currently, the company’s product stable includes around 450 products. Dabur enjoys an excellent distribution network of over 5500 distributors reaching out to nearly 13,00,000 outlets. Interestingly, all the drugs under its stable are outside the purview of The Drug Price Control Authority (DPCO). We focus on each segment in detail… Healthcare Segment Healthcare segment is one of the major revenue contributors for DIL. Brands such as Chavanprash, Hajmola, Pudin Hara, Hingoli, Janam Gutti, Lal Tail, and Madhuvanni fall under this stable.

For the 250 Crore-chavanprash markets, the company is facing tough competition from Zandu, Hamdard and Baidyanath. However, as per ORG data the market for chavanprash is expected to double in a couple of years. Chavanprash sales stood stagnant during the previous year contributing to 10% of the total revenue. In the pediatric segment the company has products like Janam Gutti, Lal Tail gripe waters, and Madhuvanni cough syrup. DIL has also introduced a new product namely, Nasarel for the treatment of Endometeriosis for use in assisted reproduction. Overall, the segment recorded a growth of 12%. Hair Care Segment DIL is a major player in the hair oil segment with extended brand equity in Vatika.

The range of products includes Dabur Amla, Dabur Special, Vatika, Vatika Shampoo, the newly introduced Vatika anti- dandruff shampoo and Vatika Heena Cream Conditioning Shampoo. Dabur Amla enjoys a 28% market share in the perfumed oil market. The total sales of the segment for the year ended march 2000 were 218 cr. The segment grew by 16 % during the year. The company has undertaken the repositioning of Dabur Amla hair oil and Dabur Vatika Oil. The hair oil segment contributes 21% to the company’s turnover as on 31st March 2000. In the hair Care segment the company is poised to have a strong growth of 10% predominantly on account of strong brand image. Oral Care Segment Seeing the future market move, DIL has purchased the BINACA brand for Rs. 3 cr.

The move was on account of the company-identifying shift in market preferences. The total sales for the segment were 116 cr. with a marginal growth of 3%. The company views the growth through the Binaca brand. DIL is also repositioning the lal dant manjan in shrink sleeves wrap. We expect the segmental growth to be around 5% henceforth. Pharmaceuticals segment Dabur has around 300 ayurvedic medicines sold through ayurvedic practitioners. The company has 80% market share in this segment. All the products are outside the purview of the DPCO. The division grew by 20% during the year. The company is majorly into Oncology and branded formulations.

The company launched Topotel (Topotecan), the first camptothecin derivative for ovarian and lung cancer in India and Amiphos (Amiphostin) for various anti-cancer regiments in India. DIL is only the second in the world to manufacture anti-cancer drugs Paclitaxel and Docetaxel acquired from Pfizer in 1996. The company has established a subsidiary in UK namely Axol Labs. , for manufacture of generic oncology products. However, global acceptance is a major sensitivity factor. Other Segments Other segments include food products division, which has been restructured into a 100% subsidiary company. The division has brands like Honey, Lemoneez lemon Juice, Real fruit juices, Hommade pastes and sauces. The subsidiary netted a loss of 11. 55 cr on sales of 29. 67 cr.

This was on account of stiff competition faced by the company and wafer thin margins on trading goods. The company however has a strong nationwide distribution network. The skin care division with brands like Gulabari and Samara also grew by 19% during the year. The company has entered into a 50:50 JV with Bongrain of France for manufacture and marketing of Cheese and speciality dairy products. The brands launched by the company include Delicieux and Le Bon. Company Restructuring With lack of growth coming in, company realized the need for corporate restructuring. The initiative undertaken looks to be very positive. Some of the measures initiated are: – 1. Dabur, being a closely held company, was initially a family run organization.

However, subsequent to restructuring, the day-to-day management is under professional management and the promoters undertake only the strategic management decisions. 2. The company has decided on higher investment on Brand building rather than on product building. This fact is evident from the sale of GDC Ltd. and Excelcia Foods Ltd. The company has also entered into JV with Bongrain under the same initiative. 3. The company has discontinued the merchant exports, herbal intermediaries and Generic pharmaceuticals business. 4. With an effect to stress upon core competence the company has decided to put off plans for foray into the newly opened Insurance sector for which it had entered into a JV with Allstate of Finland. 5.

The promoters hold 70% of the paid up capital of the company. Hence, to increase the liquidity of the stock in the market the company has introduced a stock split of 1/10th at Re. 1/- per share paid up. Sustainability Report At Dabur, environment and nature is the lifeline of our business. With a portfolio of Ayurveda and nature-based products, conservation of nature & natural resources is deep rooted in our organizational DNA, and in every aspect of our ever-growing business. We, at Dabur, have not merely incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to encompass our aspirations and responsibilities to the society and to the environment.

It is this concept that inspires us to optimize our business performance to tackle the new and growing challenges of environment and technology. It is a concept on which we aspire to build an organization that will continue to increase value for all our stakeholders for generations to come, through intensive focus on Conservation of Energy and Technology Absorption, along with Health, Safety and Environment Protection. Conservation of Energy Dabur has been undertaking a host of energy conservation measures. Successful implementation of various energy conservation projects have resulted in a 13. 8% reduction in the Company’s energy bill in the 2008-09 fiscal alone.

What was noteworthy was the fact that this reduction has come despite an 8-9% volume increase in manufacturing, and an average 11. 7% increase in cost of key input fuels. The host of measures – key among them being use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment – helped lower the cost of production, besides reduce effluent and improve hygiene conditions & productivity. Technology Absorption Dabur has also made continuous efforts towards technology absorption and innovation, which have contributed towards preserving natural resources. These efforts include: * Minimum use of water in process by re-concentration of herbal extract and reduction in concentration time * Uniform heating in VTDs by hot water as against steam earlier, resulting in 30% reduction in bulk wastage by using non-stick coating and formulation change * Improvement in water treatment plant through introduction of RO (Reverse Osmosis) system for DM water, reutilization of waste water from pump seal cooling and RO reject waste-water management * Introduction of water efficient CIP system with recycling of water in fruit juice manufacturing * Development of in-house technology to convert fruit waste into organic manure by using the culture Lactobacilus burchi The Company has achieved a host of significant benefits in terms of product improvement, cost reduction, product development, import substitution, cleaner environment and waste disposal, amongst others. Health Safety & Environmental Review Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy focusing on People, Technology and Facilities. A dedicated “Safety Management Team” has also been put in place to work towards the prevention of untoward incidents at the corporate and unit level, besides educate & motivate employees on various aspects of Health, Safety and Environment. The Company is also continuously monitoring its waste in adherence with the pollution control norms.

In pursuance of its commitment towards the society, efforts have also been initiated to conserve and maintain the ground water level. The efforts include implementation of rainwater harvesting, which has delivered encouraging results and has put the company on the path to becoming a Water-Positive Corporation. Dabur also initiated a Carbon Foot Print Study at the unit level with an aim to become a carbon positive Company in years to come. At Dabur, we are committed to sustainable development throughout our diverse operations. And, we will strive to translate the good intentions into concrete and lasting results, contributing to the ultimate good of the society. Deal Structure DIL has signed an agreement to acquire 72. 15% stake from the existing promoters. * The transaction values FCPL at an equity value of Rs 282. 4 crores. * Dabur to make an open offer to acquire further 20% of the FCPL’s equity share capital. * Specialty chemicals division and some other investments will be bought over by promoters at book value or market value whicheveris higher. * Acquisition to be funded through internal accruals of Dabur India Ltd. Chapter-5 DABUR INDIA EXPANSION PLAN Dabur to open new stores, scales down size FMCG major Dabur India is back on its retail expansion track with scaled-down store sizes after curtailing its growth due to high estate prices.

The company has scaled down the size of the stores to 700-1,200 sq ft from its originally planned size of 1,500-6,000 sq ft, besides removing its pharmacy section. “The store sizes have now been reduced to between 700 sq feet and 1,200 sq feet, nearly half of the originally planned sizes of between 1,500 sq feet and 6,000 sq feet,”’ a company spokesperson said. Dabur India had decided to hold the expansion plan of its retail arm as it aimed to capitalised more from further slide in retail rentals that the company is expecting. Launching its first outlet in the capital this week, the new store would sell its beauty and baby-care products, fashion accessories and other merchandise products.

However, it would no longer retail its prescription medicines. “In the health market, the stores will now stock only OTC products and not prescription medicines as was available in the previous avatar,” the company said. Dabur India Acquires 72. 15% Of Fem Care Pharma| Friday, November 21, 2008| * Plans Open Offer For Additional 20% Shares * Values Fem Care At Rs 282. 4 CroresMumbai, November 21st, 2008: Dabur India Ltd today announced the acquisition of 72. 15% of Fem Care Pharma Ltd (FCPL), a leading player in the women’s skin care products market, for Rs 203. 7 Crores in an all-cash deal. The board of directors of Dabur India Ltd approved the acquisition at a board meeting held in Mumbai today.

The transaction ascribes a price per share of Rs 800, which translates into an equity valuation of Rs 282. 4 Crores and an enterprise valuation of approximately Rs 300 Crores of Fem Care Pharma Ltd. Dabur will make an open offer for an additional 20% shares in the Company as required under the takeover regulations. “Acquisition of Fem Care Pharma is in line with our strategy to aggressively expand Dabur’s scale of operations and strengthen its presence in the fast moving consumer goods (FMCG) space. This transaction would give Dabur an entry into the high-growth skin care market with an established brand name ‘FEM’. Further, Dabur also has the potential to extend the brand into newer and related skin care categories,” said Dr.

Anand Burman, Chairman, Dabur India Ltd. Fem Care Pharma Ltd, which has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category, is best known for its brand ‘FEM’. The other brands in its portfolio include Oxybleach cream, Botanica anti-ageing cream, Stratum colour protecting hair conditioners, SAKA men’s bleach and Bambi fabric softeners. FCPL, which reported a consolidated net profit of Rs 9. 75 crores in the first half of the 2008-09 fiscal on a turnover of Rs 54. 45 crores, also has a sizeable international market presence in markets such as Yemen, MaldivesMauritius, Malaysia, UAE, Oman etc. The acquisition brings to Dabur a portfolio of well-known household brands that enjoy a pole position in their respective categories, offering us a strong platform to enter newer product categories and markets. Fem’s brands fit in well with Dabur’s future growth plans, both for India and international markets. As with our previous acquisition and subsequent integration of Balsara’s Hygiene and Home products businesses, the Fem Care Pharma Ltd transaction too would offer substantial synergies for expanding the reach of Fem’s brands in all our geographies as well as better management of overall system costs,” said Mr. Sunil Duggal, CEO, Dabur India Ltd.

Strengths of Dabur will help expand the distribution of Fem’s brands across India and fuel faster growth for the company, both in India and abroad, thereby enhancing shareholder value,” said Ms Sunita Ramnathkar, Joint Managing Director, Fem Care Pharma Ltd. “As Dabur gains access to Fem’s research capabilities, we believe it will be able to broaden the company’s product portfolio and further capitalize on the emerging opportunities in domestic and international markets,” said Mr. Sunil H. Pophale, Chairman & Managing Director, Fem Care Pharma Ltd. KPMG Corporate Finance was the financial advisor to the promoters of Fem Care Pharma Ltd and Ambit Corporate Finance was the financial advisor to Dabur India Ltd. | Scale up presence in the skincare segment Dabur has taken two major initiatives in this regard. Firstly it has acquired Fem Care, for entering the mainstream skincare segment.

The Fem acquisition consolidates Dabur’s position as one of the leading consumer goods company in India with presence in skincare, oral care, hair care, healthcare and foods. It will contribute not only to its top-line but will also generate significant cost synergies. Secondly, it has launched Uveda, a range of premium Ayurvedic skin-care products. This range including moisturizing, face wash and fairness products would be positioned in the mid-priced segment. Given Dabur’s track record of successfully positioning new brands, strong hold in the Ayurvedic segment and wide distribution network, this new launch holds good potential. Expand global presence: The international business division of the company contributes nearly 20% to the total revenues. The revenue from this segment grew by 52. % YoY during Q1FY10 led by 80% growth from Bangladesh, 65% from GCC countries, 63. 4% from Egypt, and 62% from Nepal. The company is looking at increasing its contribution from international business. For this it is on a look out for acquisition opportunities in the sub-Saharan Africa for which it plans to spend Rs. 10bn. The company is capable of funding such acquisition from internal accruals with minimal borrowings. Also to increase its presence in the US market, the company is planning to build a proper distribution network. Retail business to break-even in FY11: Dabur’s retail business posted a loss of Rs. 240m in FY09. This loss had however reduced by less than 50% in FY09 as compared to FY08.

Dabur plans to further reduce the loss and break-even by FY11 as it plans cost cutting by adopting a revenue sharing model with the land owners instead of paying rent. This model which is less risky will ensure faster break-even. The company operates its retail business through its subsidiary H&B stores and operates its retail chain under the brand name ‘News’. Future Plans Dabur India had planned capex of Rs. 1. 5bn during FY10 of which nearly half the amount has already been spent. This amount is largely being spent on plant expansion in Uttaranchal and Himachal Pradesh. Key Positives * Strong brand portfolio – many of them are market leaders in the respective product category. Few examples are Dabur Hair Oil, Dabur Honey, Dabur Chyawanprakash * One of the leading FMCG company in India Largest over the counter company (OTC) in India Key Concerns * Slowdown in the global economy * Inflationary environment in the commodity market * Huge outlay in brand promotion and distribution network * Intense competition in the domestic market as well as foreign international brands. Dabur Acquires Turkey`s Hobi Kozmetik Group For $69 Million Announces 20. 5% Surge In Cons Q1 Net Profit At Rs 107. 39 Cr| Monday, July 26, 2010| * Consolidated Q1 Revenue Up 19. 5% To Rs 924. 38 Cr * Announces 1:1 Bonus IssueNew Delhi, July 26th, 2010: Dabur India Ltd. today announced the acquisition of Hobi Kozmetik Group, a leading personal care products company in Turkey, for $69 million.

Dabur’s overseas subsidiary, Dabur International Ltd, has acquired 100% stake in three Hobi Group firms – Hobi Kozmetik, Zeki Plastik and Ra Pazarlama. The transaction is expected to be completed by the third quarter of 2010-11. “The acquisition of Hobi Kozmetik is in line with Dabur’s strategy to aggressively expand its scale of operations and strengthen its presence in the fast moving consumer goods (FMCG) space across the globe. This acquisition is an important step towards further consolidating and expanding our already substantial presence in the Middle East and North Africa region,” Dabur India Ltd. Chairman Dr. Anand Burman said. Set up in 1974, Hobi Kozmetik is a leading manufacturer of personal care products in Turkey.

The company is a market leader in the hair gel category with a 35% share, and markets a wide range of hair care and skin care products under the ‘Hobby’ and ‘New Era’ brands. Its products are sold across 35 countries, including the Middle East and North Africa. “The acquisition offers Dabur an entry into an attractive new market like Turkey, and adds to our portfolio a host of popular international brands that enjoy pole position in their respective categories. Hobi’s brands complement Dabur’s portfolio, categories, offering us a strong platform to enter newer product categories and markets. We also believe that the opportunities for capitalizing on the strengths of this business across our international operations are significant,” Dabur India Ltd. CEO Mr.

Sunil Duggal said. “With Balsara’s Hygiene and Home products businesses and more recently Fem Care Pharma, Dabur has aptly demonstrated its ability to make successful acquisitions and more importantly to manage them well. This transaction too will offer us substantial synergies and an opportunity to broaden the company’s product portfolio to further capitalize on the emerging opportunities in domestic and international markets,” Dabur India Ltd. Group Director Mr. P. D. Narang said. Q1 ResultsThe Board Of Directors of Dabur India Limited today also approved the unaudited financial results of the company for the first quarter ended June 30th, 2010.

Riding on strong volume-driven growth across key categories like Hair Oils, Skin Care, Toothpastes, Health Supplements, Digestives, Foods & Home Care, Dabur India Ltd. ended the first quarter of the 2010-11 financial year with a 19. 5% growth in consolidated Revenue at Rs 924. 38 Crore. Consolidated Q1 Revenue for the same period last year stood at Rs 773. 60 Crore. Net Profit for the first quarter of 2010-11 marked a 20. 5% surge to Rs 107. 39 Crore, up from Rs 89. 09 Crore a year ago. “The macro environment is improving with good Monsoons fuelling resurgence in demand. Dabur continues to register sales growth ahead of the market in several key categories, and this growth is almost entirely volume-driven,” Mr. Duggal said. Dabur’s Health Supplements category grew by 42. % in the first quarter, led by Chyawanprash and Glucose, while the Home Care Category bounced back to end the quarter with a strong 31. 5% growth. The Oral Care category reported a 20. 2% growth while Foods business grew by 21. 2%, Hair Oils by 16. 5% and Skin Care by 12. 4%. Dabur’s International Business also registered a 28. 7% topline growth during the quarter, led by Nigeria, Egypt, Levant and North Africa. Bonus IssueThe Board of Directors of Dabur India Ltd. today announced issue of 1:1 Bonus share to the shareholders of the company, i. e. one share for every one share held. “We are happy to announce a 1:1 Bonus issue to the shareholders to mark the 125th year of Dabur’s establishment.

We feel the Bonus issue was long overdue to our investors” said Dabur India Ltd. Chairman Dr. Anand Burman. | Dabur seeks strong presence in the healthcare segment; targets Rs 7000cr in four years As a part of FMCG major Dabur’s strategy in strengthening healthcare segment as a key growth driver the company on Tuesday said it targets to post a profit of Rs 1,000 crore and aims to double its sales in coming four years to Rs 7,000 crore. Dabur India Group Chairman, Anand Burman, while addressing shareholders at the AGM said, “Dabur plans to double its sales and profits from current levels to reach Rs 7,000 crore and Rs 1,000 crore, respectively by March 2014. Although the company did not divulge the timelines for raising funds, last month a resolution to raise the fund for fuelling the expansion plans was approved by the company’s board members. In its 35th annual general meeting, company has received approval from its shareholders to raise Rs 2,000 crore for funding its expansion plans. The shareholders also approved the issuance of bonus shares in the ratio of 1:1 that indicates 1 share for each share held. Referring to it,Dabur India Group Director P D Narang said, “The 1:1 Bonus issue to the shareholders has been announced to mark the 125th year of Dabur’s establishment. We feel the Bonus issue was long overdue to our investors. ” The new plan is directed towards expanding in the healthcare category besides targeting growth in the food, home and personal care businesses.

According to a company official, “Under the domestic healthcare business expansion strategy, the company plans to enter several new therapeutic areas with strong branded presence in new over-the-counter categories. ” He also added, “The idea is to grow the domestic healthcare piece to become a Rs 1,500 crore business, besides growing the home personal care business to Rs 2,800 crore and the foods business to Rs 700 crore by the end of the vision period. ” Currently healthcare business segment stands at Rs 800 crore while the personal care and food categories amount to over Rs 1,700 crore and Rs 400 crore respectively. The company plans to expand its healthcare business to include dermatology (skin), gastroenteritis, cough and cold, women’s healthcare, heart & metabolism, pain management and vitamins, minerals and supplements.

Some of the products sold by Dabur in the personal care segment like include ‘Vatika’ and fruit-based beverages ‘Real’ and ‘Activ’ generating a revenue of Rs 3,417 crore and profit of Rs 501 crore, respectively. Dabur India Limited is the fourth largest FMCG Company in India with Revenues of US$750 Million (Rs 3416 Crore) & Market Capitalisation of US$3. 5 Billion (over Rs 16,000 Crore). Building on a legacy of quality and experience of over 125 years, Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care & Foods. Chapter-6 FINANCIAL DETAIL Income statement of Dabur India Ltd. for the last 5 years. (Rs in Cr) | Mar ‘ 10 | Mar ‘ 09 | Mar ‘ 08 | Mar ‘ 07 | Mar ‘ 06 | | | | | | | Income 😐  |  |  |  |  | Operating Income|  2,867. 42|  2,408. 33|  2,093. 63|  1,745. 14|  1,345. 50|  |  |  |  |  |  | Expenses|  |  |  |  |  | Material Consumed|  1,384. 29|  1,232. 85|  1,023. 94|  778. 27|  582. 43| Manufacturing Expenses|  58. 17|  54. 22|  54. 02|  39. 24|  27. 10| Personnel Expenses|  212. 34|  167. 32|  149. 69|  118. 66|  98. 31| Selling Expenses|  474. 79|  358. 75|  337. 69|  403. 42|  316. 46| Adminstrative Expenses|  187. 90|  153. 67|  138. 69|  100. 90|  80. 24| Expenses Capitalised|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00|  |  |  |  |  |  |

Cost Of Sales|  2,317. 49|  1,966. 81|  1,704. 03|  1,440. 48|  1,104. 55|  |  |  |  |  |  | Operating Profit|  549. 93|  441. 52|  389. 60|  304. 66|  240. 95|  | |  |  |  |  | Other Recurring Income|  14. 85|  10. 72|  9. 76|  3. 14|  1. 05|  |  |  |  |  |  | Adjusted PBDIT|  564. 78|  452. 24|  399. 36|  307. 80|  242. 01|  |  |  |  |  |  | Financial Expenses|  13. 28|  14. 47|  10. 92|  4. 43|  5. 73| Depreciation|  31. 91|  27. 42|  25. 75|  21. 98|  19. 05| Other Write offs|  5. 66|  3. 94|  5. 67|  6. 49|  4. 26|  |  |  |  |  |  | Adjusted PBT|  513. 93|  406. 41|  357. 01|  274. 90|  212. 97|  |  |  |  |  |  | Tax Charges|  93. 0|  51. 44|  48. 40|  32. 15|  25. 78|  |  |  |  |  |  | Adjusted PAT|  420. 23|  354. 97|  308. 61|  242. 76|  187. 19| Non Recurring Items|  13. 10|  18. 58|  8. 16|  9. 32|  1. 90| Other Non Cash adjustments|  -0. 19|  -0. 72|  -0. 86|  -0. 13|  0. 21|  |  |  |  |  |  | Reported Net Profit|  433. 33|  373. 55|  316. 77|  252. 08|  189. 08|  |  |  |  |  |  | Earnings Before Appropriation|  862. 08|  696. 07|  545. 07|  426. 95|  314. 52|  |  |  |  |  |  | Equity Dividend|  173. 60|  151. 39|  129. 60|  122. 13|  100. 32| Preference Dividend|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Dividend Tax|  29. 50|  25. 73|  22. 03|  17. 13|  14. 7| Retained Earnings|  658. 98|  518. 95|  393. 44|  287. 70|  200. 13| Balance Sheet of Dabur India Ltd. for the last 5 years. (Rs in Cr) | Mar ‘ 10 | Mar ‘ 09 | Mar ‘ 08 | Mar ‘ 07 | Mar ‘ 06 | | | | | | | SOURCES OF FUNDS|  |  |  |  |  | Owner’s Fund|  |  |  |  |  | Equity Share Capital|  86. 76|  86. 51|  86. 40|  86. 29|  57. 33| Share Application Money|  0. 14|  0. 00|  0. 00|  0. 00|  0. 00| Preference Share Capital|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Reserves & Surplus|  662. 48|  651. 69|  441. 92|  316. 90|  390. 54| Loan Funds|  |  |  |  |  | Secured Loans|  24. 27|  8. 26|  16. 45|  19. 28|  19. 23| Unsecured Loans|  81. 0|  130. 72|  0. 24|  0. 26|  1. 25| Total|  855. 45|  877. 18|  545. 01|  422. 73|  468. 35|  |  |  |  |  |  | USES OF FUNDS|  |  |  |  |  | Fixed Assets|  |  |  |  |  | Gross Block|  687. 23|  518. 77|  467. 93|  404. 30|  328. 23| Less : Revaluation Reserve|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Less : Accumulated Depreciation|  236. 28|  210. 45|  189. 77|  168. 97|  142. 46| Net Block|  450. 95|  308. 32|  278. 17|  235. 33|  185. 77| Capital Work-in-progress|  23. 31|  51. 71|  16. 26|  3. 71|  13. 07|  |  |  |  |  |  | Investments|  348. 51|  232. 05|  270. 37|  145. 35|  275. 08|  |  |  |  |  |  | Net Current Assets|  |  |  |  |  |

Current Assets, Loans & Advances|  941. 77|  973. 42|  576. 82|  397. 78|  285. 68| Less : Current Liabilities & Provisions|  911. 83|  696. 97|  610. 57|  379. 27|  324. 12| Total Net Current Assets|  29. 94|  276. 45|  -33. 75|  18. 52|  -38. 44| Miscellaneous expenses not written|  2. 74|  8. 64|  13. 95|  19. 82|  32. 87| Total|  855. 45|  877. 17|  545. 00|  422. 73|  468. 35| Note 😐  |  |  |  |  | Book Value of Unquoted Investments|  98. 60|  319. 12|  67. 99|  65. 99|  234. 43| Market Value of Quoted Investments|  250. 52|  118. 48|  205. 19|  80. 82|  43. 43| Contingent liabilities|  173. 48|  174. 15|  171. 24|  153. 25|  190. 2| Number of Equity shares outstanding (in Lacs)|  8,675. 86|  8,650. 76|  8,640. 23|  8,628. 84|  5,733. 03| | | Cash Flow Statement of the Dabur India Ltd. for a period of 5 years (Rs in Cr) | Mar ‘ 10 | Mar ‘ 09 | Mar ‘ 08 | Mar ‘ 07 | Mar ‘ 06 | | | | | | | Profit Before Tax|  527. 03|  425. 00|  365. 18|  284. 22|  214. 36| Net CashFlow-Operating Activity|  481. 49|  323. 57|  313. 29|  234. 43|  194. 34| Net Cash Used In Investing Activity|  -267. 54|  -238. 38|  -179. 77|  -60. 57|  -27. 51| NetCash Used in Fin. Activity|  -201. 88|  -9. 77|  -119. 30|  -168. 06|  -139. 45| Net Inc/Dec In Cash And Equivlnt|  12. 07|  75. 42|  14. 22|  5. 79|  27. 0| Cash And Equivalnt Begin of Year|  151. 84|  68. 26|  54. 04|  44. 45|  10. 65| Cash And Equivalnt End Of Year|  163. 91|  143. 68|  68. 26|  50. 25|  38. 04| RATIOS | Mar ‘ 10 | Mar ‘ 09 | Mar ‘ 08 | Mar ‘ 07 | Mar ‘ 06 | | | | | | | PER SHARE RATIOS|  |  |  |  |  | |  |  |  |  |  | Adjusted E P S (Rs. )|  4. 84|  4. 10|  3. 57|  2. 81|  3. 27| Adjusted Cash EPS (Rs. )|  5. 28|  4. 47|  3. 94|  3. 14|  3. 67| Reported EPS (Rs. )|  4. 99|  4. 32|  3. 67|  2. 92|  3. 30| Reported Cash EPS (Rs. )|  5. 43|  4. 68|  4. 03|  3. 25|  3. 70| Dividend Per Share|  2. 00|  1. 75|  1. 50|  1. 75|  2. 50| Operating Profit Per Share (Rs. )|  6. 34|  5. 10|  4. 51|  3. 53|  4. 0| Book Value (Excl Rev Res) Per Share (Rs. )|  8. 64|  8. 53|  6. 11|  4. 67|  7. 81| Book Value (Incl Rev Res) Per Share (Rs. )|  8. 64|  8. 53|  6. 11|  4. 67|  7. 81| Net Operating Income Per Share (Rs. )|  33. 05|  27. 84|  24. 23|  20. 22|  23. 47| Free Reserves Per Share (Rs. )|  7. 14|  6. 84|  4. 33|  2. 80|  5. 21|  |  |  |  | | | PROFITABILITY RATIOS|  |  |  |  |  | |  |  |  |  |  | Operating Margin (%)|  19. 17|  18. 33|  18. 60|  17. 45|  17. 90| Gross Profit Margin (%)|  18. 06|  17. 19|  17. 37|  16. 19|  16. 49| Net Profit Margin (%)|  15. 03|  15. 44|  15. 06|  14. 41|  14. 04| Adjusted Cash Margin (%)|  15. 88|  15. 97|  16. 16|  15. 51|  15. 3| Adjusted Return On Net Worth (%)|  56. 29|  48. 65|  59. 99|  63. 32|  45. 10| Reported Return On Net Worth (%)|  58. 04|  51. 20|  61. 58|  65. 75|  45. 56| Return On long Term Funds (%)|  68. 96|  55. 29|  68. 93|  68. 63|  48. 02| LEVERAGE RATIOS|  |  |  |  |  | |  |  |  |  |  | Long Term Debt / Equity|  0. 02|  0. 03|  0. 01|  0. 01|  0. 01| Total Debt/Equity|  0. 14|  0. 18|  0. 03|  0. 04|  0. 04| Owners fund as % of total Source|  87. 59|  84. 15|  96. 93|  95. 37|  95. 62| Fixed Assets Turnover Ratio|  4. 31|  4. 84|  4. 67|  4. 50|  4. 24| LIQUIDITY RATIOS|  |  |  |  |  | |  |  |  |  |  | Current Ratio|  1. 03|  1. 40|  0. 94|  1. 05|  0. 88| Current Ratio (Inc.

ST Loans)|  0. 92|  1. 19|  0. 91|  0. 96|  0. 81| Quick Ratio|  0. 67|  0. 98|  0. 57|  0. 63|  0. 52| Inventory Turnover Ratio|  11. 31|  10. 94|  12. 52|  13. 44|  14. 44| PAYOUT RATIOS|  |  |  |  |  | |  |  |  |  |  | Dividend payout Ratio (Net Profit)|  46. 86|  47. 41|  47. 86|  55. 24|  60. 49| Dividend payout Ratio (Cash Profit)|  43. 13|  43. 74|  43. 54|  49. 63|  53. 85| Earning Retention Ratio|  51. 67|  50. 11|  50. 87|  42. 64|  38. 89| Cash Earnings Retention Ratio|  55. 64|  54. 16|  55. 41|  48. 66|  45. 66| COVERAGE RATIOS|  |  |  |  |  | |  |  |  |  |  | Adjusted Cash Flow Time Total Debt|  0. 23|  0. 35|  0. 04|  0. 07|  0. 9| Financial Charges Coverage Ratio|  42. 53|  31. 26|  36. 56|  69. 48|  42. 26| Fin. Charges Cov. Ratio (Post Tax)|  36. 46|  28. 99|  32. 87| 64. 33|  38. 09| COMPONENT RATIOS|  |  |  |  |  | |  |  |  |  |  | Material Cost Component(% earnings)|  48. 61|  52. 80|  49. 05|  45. 86|  42. 97| Selling Cost Component|  16. 55|  14. 89|  16. 12|  23. 11|  23. 52| Exports as percent of Total Sales|  4. 31|  4. 56|  4. 49|  3. 96|  1. 97| Import Comp. in Raw Mat. Consumed|  1. 22|  1. 06|  0. 97|  1. 22|  0. 72| Long term assets / Total Assets|  0. 45|  0. 36|  0. 48|  0. 48|  0. 61| Bonus Component In Equity Capital (%)|  87. 10|  87. 35|  87. 46|  87. 58|  81. 74| . atest 5 yearly unaudited results of the Dabur India Ltd. (Rs in Cr) | Mar ‘ 10 | Mar ‘ 09 | Mar ‘ 08 | Mar ‘ 07 | Mar ‘ 06 | | | | | | | |  |  |  |  |  | Sales|  2,874. 60|  2,417. 91|  2,117. 79|  1,778. 02|  1,369. 68| Other Income|  15. 11|  21. 32|  27. 91|  16. 51|  5. 35| Stock Adjustment|  -9. 68|  -38. 89|  -3. 04|  -22. 19|  4. 24| Raw Material|  988. 10|  892. 13|  737. 20|  595. 64|  401. 52| Power And Fuel|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Employee Expenses|  212. 34|  167. 32|  149. 69|  118. 66|  91. 23| Excise|  0. 00|  0. 00|  34. 39|  0. 00|  0. 00| Admin And Selling Expenses|  390. 03|  284. 93|  248. 10|  197. 60|  151. 6| Research And Devlopment Expenses|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Expenses Capitalised|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Other Expeses|  744. 38|  667. 98|  574. 21|  587. 70|  487. 32| Provisions Made|  0. 00|  0. 00|  0. 00|  0. 00|  0. 00| Operating Profit|  549. 43|  444. 44|  377. 24|  300. 61|  233. 71| Interest|  5. 60|  13. 34|  8. 55|  4. 43|  5. 66| Gross Profit|  558. 94|  452. 42|  396. 60|  312. 69|  233. 40| Depreciation|  31. 91|  27. 42|  31. 42|  28. 47|  19. 05| Taxation|  93. 70|  51. 44|  48. 41|  32. 14|  25. 78| Net Profit / Loss|  433. 15|  373. 56|  316. 77|  252. 08|  189. 08| Extra Ordinary Item|  0. 00|  0. 00|  0. 00|  0. 0|  0. 51| Prior Year Adjustments|  -0. 18|  0. 00|  -0. 86|  0. 00|  0. 00|  |  |  |  |  |  | Equity Capital|  86. 76|  86. 51|  86. 40|  86. 29|  57. 33| Equity Dividend Rate|  0. 00|  175. 00|  150. 00|  250. 00|  250. 00| Agg. Of Non-Prom. Shares (in Lacs)|  2,692. 38|  2,532. 42|  2,521. 89|  2,260. 42|  1,484. 77| Agg. Of Non PromotoHolding(%)|  31. 03|  29. 27|  29. 19|  26. 20|  25. 90| OPM(%)|  19. 11|  18. 38|  17. 81|  16. 90|  17. 06| GPM(%)|  19. 34|  18. 54|  18. 48|  17. 42|  16. 97| NPM(%)|  14. 98|  15. 31|  14. 76|  14. 04|  13. 75| EPS (in Rs. )|  4. 99|  4. 32|  3. 67|  2. 92|  3. 30| Chapter-7 CORPORATE INFORMATION

S. No. | Location Type| Address| 1| Registered Office| 8/3, Asaf Ali Road New Delhi , Delhi – India PinCode :110002 Phone :011-23253488 Fax :011-23276739 | | | | 2| Corporate Office| DaburTower, Kaushambi, Sahibabad Ghaziabad , Uttar Pradesh – India PinCode :201010 Phone :0575-39412525 3982000 Fax :0575-4374935 | | | | 3| Branch Office| E-2, Harikrishna Estate B/h Shreeji Warehousing Estate Naroi-Sarkhej Bypass, Narol  Ahmedabad , Gujarat – India PinCode :382405 Phone :079-5320535 5324912 Fax :079-5323192 | | | | 4| Branch Office| N-48, KFC Building Church Street Bangalore , Karnataka – India PinCode :560001 Phone :080-5592544 5592570 5091103

Fax :080-5091100 | | | | 5| Branch Office| Dabur House 142, Rashbehari Avenue Kolkata , West Bengal – India PinCode :700029 Phone :033-4663386 4663787 4660046 Fax :033-4662345 | | | | 6| Branch Office| SCO 44-45, Sector 9-D, Madhya Marg, Chandigarh , Chandigarh – India PinCode :160017 Phone :0172-741124 743069 Fax :0172-741573 | | | | 7| Branch Office| Dabur India Ltd New No. 6, Old No. 37, Acrot Road Vadapalani,  Chennai (Madras) , Tamil Nadu – India PinCode :600026 Phone :044-4828059 4849637 Fax :044-4830998 | | | | 8| Branch Office| 5-9-1107, 9&10, King Koti Road Anand Towers, Basheerbagh Opposite Shergate  Hyderabad , Andhra Pradesh – India PinCode :500029

Phone :040-3230586 3241482 3243652 Fax :040-3230587 | | | | 9| Branch Office| Rajshree Apartment Plot No. 445, Gali No. 4 Rajapark,  Jaipur , Rajasthan – India PinCode :302044 Phone :0141-623696 Fax :0141-620027 | | | | 10| Factory/plant| Village Billanwali Lavana Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 11| Factory/plant| Amla/Honey Unit: Village Billanwali Lavana  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 12| Factory/plant| Oral Care Unit 601, Malku Majra, Nalagarh Road, Distt Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-246363 | | | | 3| Factory/plant| Fit ‘N’ Activ Unit: 221, HPSIDC Industrial Area Distt Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 14| Factory/plant| Plot No 5/1, Site -IV, Sahibabad Industrial Area,  Ghaziabad , Uttar Pradesh – India PinCode :201010 Phone :0575-4181030 | | | | 15| Factory/plant| 86-A,Kheda Industrial Area, Sector-3, Distt-Dhar  Pithampur , Madhya Pradesh – India PinCode :454774 Phone :07292-400046/400047/400048/400 Fax :07292-400112 | | | | 16| Factory/plant| Unit – I & II Survey No 225/4/1, Villege Saily  Silvassa , Dadra & Nagar Haveli – India PinCode :396230 Phone :0260-2681071/72/73/74 Fax :0260-2681075 | | | | 7| Factory/plant| Kartwa, PO: Mahanvita, P S Rajganj Jalpaiguri , West Bengal – India PinCode :735135 Phone :03561-09800008457 09800008456 09933399800 | | | | 18| Factory/plant| G 50-59, IID Centre, NH-12Road No. 1, Newai  Tonk , Rajasthan – India PinCode :304020 Phone :01432-223342 222859 223783 Fax :01432-223783 | | | | 19| Factory/plant| Chyawanprash Unit 220-221,HPSIDC Industrial Area, Distt Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 20| Factory/plant| Green Field Unit Village Manakpur, Tehsil, Distt. Solan  Baddi , Himachal Pradesh – India PinCode :174101 | | | | 21| Factory/plant| Unit of FEM Plot No. 3, Survey No. 83- 285 & 287, Village: Manakpur Post – Lodhimajra,Distt. Solan  Baddi , Himachal Pradesh – India PinCode :174101 Phone :01795-245273 Fax :01795-236297 | | | | 22| Factory/plant| Plot No. D-55, Addl. Industrial Area, MIDC, AMBAD  Nasik , Maharashtra – India PinCode :422010 Phone :0253-6623222 Fax :0253-2383146 | | | | 23| Factory/plant| 22, Site IV Industrial Area Ghaziabad , Uttar Pradesh – India PinCode :201010 Phone :0120-3008700/3008701/3008702/3 Fax :0120-2779914 | | | | 24| Factory/plant| Food Supplement Unit 221, HPSIDC Industrial Area, Distt Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 5| Factory/plant| Hajmola Unit 109, HPSIDC Industrial Area Dist Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 26| Factory/plant| Red Toothpaste & Shampoo Unit, Village Billanwali Lavana, Dist Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 27| Factory/plant| Unit I II & III Lane No. 3, Phase II , SIDCO Ind Complex, Bari Brahmna  Jammu , Jammu & Kashmir – India PinCode :181133 Phone :01923-220123 222341 222354 Fax :01923-221970 | | | | 28| Factory/plant| D-35, Industrial Area, Kalyani, Nadia District , West Bengal – India PinCode :741235 | | | | 9| Factory/plant| Glucose Unit: Plot No . 12, Industrial Area, Dist Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 30| Factory/plant| S-PC 162, Matsya Industrial Area Alwar , Rajasthan – India PinCode :301030 Phone :0144-2881319/2881217/2881542 Fax :0144-2881302/2881341 | | | | 31| Factory/plant| 9, Netaji Subhash Chandra Bose Road, Narendrapur P O  Kolkata , West Bengal – India PinCode :700103 Phone :033-24772324 – 26 24772620 24772738 Fax :033-24772621 | | | | 32| Factory/plant| Plot No 4, Sector – 2, Integrated Industrial Estate, Pantnagar  Udham Singh Nagar Di , Uttaranchal – India PinCode :263146 Fax :05944-250064 | | | | 3| Factory/plant| Honitus/Nature Care Unit 109, HPSIDC Industrial Area, Baddi, District Solan  Baddi , Himachal Pradesh – India PinCode :173205 Phone :01795-245273 Fax :01795-244090 | | | | 34| Factory/plant| P. O. Daburgram District Deoghar , Jharkand – India PinCode :814132 Phone :06641-22101 22103 Fax :06641-22808 | | | | 35| Factory/plant| D-35, Industrial Area P. O. Kalyani Kalyani , West Bengal – India PinCode :741235 Phone :033-5828176 5828179 5829175 Fax :033-5828178 | | | | 36| Factory/plant| 10. 4 Mile Stone, NH -7, Village Paudia  Katni , Madhya Pradesh – India PinCode :483442 Phone :07622-262317 262297 Fax :07622-262297 | | | | 37| Factory/plant| Plot No. , Noida Export Processing Zone District Gautam Buddha Nagar  Noida , Uttar Pradesh – India PinCode :201305 Phone :05736-2562360 2562383 Fax :05736-2562360 | | | | 38| Factory/plant| Unit I and II Plot No. 22, Site-IV Industrial Area, Sahibabad  Ghaziabad , Uttar Pradesh – India PinCode :201010 Phone :0120-3008700-30 Fax :0120-2779914/4376924 | | | | 39| Factory/plant| Unit III Plot No. 5/1, Site-IV Industrial Area Sahibabad  Ghaziabad , Uttar Pradesh – India PinCode :201010 Phone :0120-3982000 3001000 Fax :0120-2779048 | | | | 40| Overseas Office| P. O. Box 16944 Jebel Ali, Dubai UAE  Dubai , Not Specified – United Arab Emirates PinCode :0 Phone :04-8817756 8817689 8817778 Fax :04-8817732 | | | | 1| Overseas Office| Dabur India Limited Lion Court, Farnham Road Bordon, Hampshire, GU35 ONF  London , Not Specified – United Kingdom PinCode :0 Phone :1420-477662 Fax :1420-477044 | | | | 42| Overseas Office| TNT Building, Tinkune, Koteshwor Kathmandu,  Kathmandu , Not Specified – Nepal PinCode :0 Phone :1-478010 4487672-75 Fax :1-478030 | | | | 43| Shares Department| Dabur India Ltd. , Punjabi Bhawan, 10 Rouse Avenue  New Delhi , Delhi – India PinCode :100002 Phone :011-42786000 Fax :011-23222051 | latest Director’s Report for the company Year End : 2010-03| The Directors have pleasure in presenting the 35th Annual Report on the business and operations of the Company, together with the Audited Accounts for the financial year ended March 31, 2010.

Financial ResultsFinancial results are presented in Table 1. Table1: Financial Results(Rs. in crore) 2009-10 2008-09Turnover (including other income) 2889. 71 2439. 22Profits before Tax 527. 03 425. 00Add: Provisions of earlier years written back 0. 02 0 527. 05 425. 00Less: – Provision for Taxation – Current 89. 66 47. 48- Provision for Taxation – Deferred 4. 04 (2. 55)- Provision for taxation – Fringe Benefit 0 6. 1- Provision for taxation for earlier year 0. 21 0. 72 Profit after Tax 433. 14 372. 84 Add: – Balance in Profit & Loss Account brought 428. 94 323. 23forward from the previous yearProfit available for appropriation Appropriation to: 862. 08 696. 07General Reserve 130. 00 90. 00Capital Reserve 2. 07 0. 01Interim Dividend – Paid 64. 98 64. 88Final Dividend – Proposed 108. 62 86. 51Corporate tax on Dividend 29. 50 25. 3Balance carried over to Balance Sheet 526. 91 428. 94Total 862. 08 696. 07| The Company has paid an interim dividend of 75% (Re. 0. 75 per share of Rupee one each) on November 10, 2009. We are pleased to recommend a final dividend of 125% (Rs. 1. 25 per share of Rupee one each) for the financial year 2009-10. The final dividend, if approved by the members, will be paid to members within the period stipulated by the Companies Act, 1956. The aggregate dividend for the year will amount to 200% (Rs. 2. 00 per share of Rupee one each) as against 175% (Rs. 1. 75 per share of Rupee one each) declared last year.

The dividend payout ratio for the current year, inclusive of corporate tax on dividend distribution, is at 46. 89%. Pursuant to the provisions of Section 205A (5) of the Companies Act, 1956, interim dividend for the year 2002-03 which remained unpaid or unclaimed for a period of 7 years, amounting to Rs. 669718/-, has been transferred by the Company to the Investors Education and Protection Fund. The due dates for transfer of unpaid dividend for subsequent years is given in Table 11 under Corporate Governance Report. Operations and Business PerformanceKindly refer to Management Discussion & Analysis and Corporate Governance, which form part of this Report. Amalgamation of Fem Care Pharma Ltd with the

CompanyDuring the year the Company had acquired from the public shareholders of Fem Care Pharma Limited (FEM) 20% of the equity share capital of FEM, in addition to the controlling stake of 72. 15% acquired from its existing promoters thereby increasing the total controlling stake to 92. 15%. FEM had become a subsidiary of the company w. e. f. 25th June, 2009. Further, on 26th October, 2009, amalgamation of Fem Care Pharma Ltd with the company, with effect from 1st April, 2009, was approved by the board of directors of both the Companies. Amalgamation of FEM with the Company has been completed and has become effective on 18th June, 2010 upon filing of the Order of Honble Delhi and Mumbai High Courts with the respective offices of Registrar of Companies.

Corporate GovernanceDabur is committed to good corporate Governance and has benchmarked itself against global practices. Dabur understands and respects its fiduciary role in the corporate world. It has always endeavoured to pursue growth by adhering to highest national and international standards of corporate governance. This attitude of Dabur has earned recognition and has strengthened the bond of trust with its stakeholders and the society at large. The compliance Report on Corporate Governance and a certificate from Auditors of the Company regarding compliance of the conditions of Corporate Governance, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges, is attached as `Annexure 1` and forms part of this annual report.

Certificate of the CEO/CFO, inter alia, confirming the correctness of the financial statements, compliance with Company`s Code of Conduct, adequacy of the Internal Control measures and reporting of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement with the Stock Exchanges, is also enclosed as a part of the Annual Report. Credit RatingDuring the year under review the Company`s long term credit rating has improved from AA+ to the highest credit rating of AAA. The highest credit rating of AAA awarded by CRISIL reflects the Company`s financial discipline and prudence. DirectorsDuring the year, Dr Ajay Dua was appointed as Additional Non-Executive Independent Director on September 3, 2009. He shall hold office upto the date of the ensuing Annual General Meeting of the Company and, being eligible, offer himself for appointment.

In terms of Article 103 and 104 of the Articles of Association of the Company, Dr Anand Burman, Mr Pradip Burman, Mr Amit Burman and Mr P D Narang will retire by rotation at the ensuing Annual General Meeting, and being eligible, offer themselves for re-appointment in terms of the provisions of Article 106 of the Articles of Association of the Company. The brief resumes of the Directors who are to be appointed/re-appointed, the nature of their expertise in specific functional areas, names of companies in which they have held directorships, committee memberships/ chairmanships, their shareholding etc. , are furnished in the explanatory statement to the notice of the ensuing Annual General Meeting. Your Directors recommend their appointment/ re-appointment at the ensuing Annual General Meeting.

Directors Responsibility StatementPursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, the Directors confirm:i) 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;ii) 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 true and fair view of the state of affairs of the Company at the end of the financial year, and of the profit of the Company for that period;iii) That they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;iv) That they had prepared the annual accounts on a going concern basis. Change in Capital Structure andListing of SharesThe Companys shares are listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) and are actively traded.

In the year under review, the following shares were allotted and admitted for trading in NSE and BSE:– Equity shares allotted against the options exercised by employees pursuant to Employees Stock Option Scheme of the Company;- 423452 equity shares allotted on May 22, 2009. – 263927 equity shares allotted on August 10, 2009. – 16538 equity shares allotted on November 18, 2009. – 1805664 equity shares allotted on February 10, 2010. Auditors and their ReportM/s G. Basu & Company, Chartered Accountants, Statutory Auditors of the Company, will retire at the conclusion of the ensuing Annual General Meeting and, being eligible, offer themselves for re-appointment as statutory auditors for the financial year 2010-11. The Company has received a letter dated April 1, 2010 from them to he effect that their re-appointment, if made, would be within the limit prescribed under section 224(1B) of the Companies Act, 1956, and that they are not disqualified for such re-appointment within the meaning of Section 226 of the Companies Act, 1956. The Auditors have vide their letter dated 19. 05. 2010 also confirmed that they have subjected themselves to the peer review process of Institute of Chartered Accountants of India (ICAI) and holds a valid certificate issued by the peer Review Board of the ICAI. The observations of the Auditors, together with the notes to Accounts referred to in the Auditors` Report, are self-explanatory and do not call for any further explanation from the Directors.

Cost AuditorsM/s Ramanath Iyer & Company, Cost Accountants, were re-appointed as Cost Auditors to conduct cost audit of the accounts maintained by the Company, in respect of the Formulations and Cosmetics & Toiletries products for the financial year 2010-11. Consolidated FinancialStatementsIn compliance with the Accounting Standard 21 on Consolidated Financial Statements, this Annual Report also includes Consolidated Financial Statements for the financial year 2009-10. Consolidated Turnover grew by 20. 28% to Rs. 3430. 80 crore as compared to Rs. 2852. 27 crore in the previous year. Similarly, net profit after tax and after minority interest for the year at Rs. 501. 27 crore is higher by Rs. 110. 06 crore as compared to Rs. 391. 21 crore in the previous year.

Internal Control SystemThe Company has a well placed, proper and adequate internal control system, which ensures that all assets are safeguarded and protected and that the transactions are authorised, recorded and reported correctly. The Companys internal control system comprises audit and compliance by in-house Internal Audit Division, supplemented by internal audit checks from Price Waterhouse

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