400098 Dear Sir(S)
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^^A Ref: SEC/SE/2018-19 '5'k Date: August 1,2018 Scrip Symbol: NSE & MSEI - DABUR, BSE Scrip Code: 500096 fUT India Ltd. To, Corporate Relation Department National Stock Exchange of India Ltd. Bombay Stock Exchange Ltd. Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/l, G Block Bandra - Kurla Complex Dalal Street, Mumbai- 400001 Bandra (E), Mumbai - 400051 Metropolitan Stock Exchange Limited (MSEI) 4th Floor, Vibgyor Towers, Plot No. C-62 G-Block, Opposite Trident Hotel, Bandra Kurla Complex, Bandra (E), Mumbai - 400098 Sub: Annual Report & Business Responsibility Report for the Financial Year ended on March 31, 2018 Dear Sir(s), Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the following: 1. Annual Report for the financial year ended on March 31, 2018, duty approved and adopted by members of the Company at the Annual General Meeting of the Company held on July 26, 2018. 2. Business Responsibility Report This is for your information and records. Thanking You, Yours faithfully, For Dabur India Limited ^t-. V P (Finance) and Company Secretary DABUR INDIA LIMITED, Punjabi Bhawan, 10, Rouse Avenue. New Delhi-110 002, Tel.: +91 11 42786000 Fax: +91 11 23222051 Regd. Office: 8/3, AsafAli Road, New Delhi -110 002 (India) PAN: AAACD0474C, CIN: L24230DL1975PLC007908, Email: [email protected], Webslte: www.dabur.com Highlights of FY 2017-18 Revenue: ` 7,748.3 crore Operating Margin: 20.9% Net Profit:` 1,354.4 crore Market Capitalization as on 31st March 2018: ` 57,602 crore Area under cultivation of rare medicinal herbs: 5,250 Acres No. of lives impacted through CSR: 1.4 Million No. of Brands with turnover of over ` 100 crore: 16 The 2017-18 Annual Report complies with financial and statutory data requirements of the Companies Act, 2013 (including the Rules made thereunder and Accounting Standards), the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standards. The Integrated Report incorporates financial and non-financial information, covering topics on Governance, Environment and Social, to help our stakeholders understand how Dabur creates and sustains value over the long-term. Dabur India Ltd is a leading packaged consumer products ‘Dedicated manufacturer, offering a wide range of products based on to the Health traditional Ayurveda and and Well- Nature. With a legacy of over 134 years, Dabur is today the Being of every oldest and the Most Trusted name in the field of Ayurveda household’ and Health Care. and meet the health and wellness needs of our consumers. Our wide range of Nature and Ayurveda-based products and Some of our most iconic brands, medicines, backed by strong which are popular across the Research & Development, globe, are Dabur Chyawanprash, helps us deliver on our motto Dabur Amla, Vatika, of being Real, Hajmola, Fem and DermoViva. Contents 2 Chairman’s Message 4 Integrated Report 40 Management Discussion & Analysis 64 Report on Corporate Governance 93 Directors’ Report Financial Statements 135 Notice of Annual General Meeting 271 Dabur India Limited Chairman’s Message Dear Shareholders, economy posted a recovery in the months that followed the It gives me great pleasure GST roll-out. Adverse macro- to write to you at the end of economic conditions and another year in our 134-year- currency volatility in some of long journey. The financial year our international markets also 2017-18 demonstrated yet again posed additional challenges the strength of our strategy during the year. of being the country’s leading Science-based Ayurveda expert, Your Company has managed which helped us deliver greater these challenges well on value to all our stakeholders. account of resilience and strength of its brands and The year 2017-18 was marked by continuing to invest strongly the implementation of Goods in sales and distribution and and Services Tax (GST) w.e.f. 1st operations infrastructure. July 2017. This major reform in During 2017-18 the Company India’s taxation structure led to achieved Consolidated Revenue a temporary slowdown in the from Operations of ` 7,748 crore, growth momentum as pre-GST growing by 6.9% after adjusting jitters gripped the trade leading for currency and GST impact. to significant pipeline reduction Consolidated Net Profit for during the first quarter. These 2017-18 stood at ` 1,354 Crore, jitters were, however, short- increasing by 6.1% over lived as both demand and the previous year. Many of our key brands achieved significant landmarks during the year. Our brand portfolio today includes 16 brands in the Billion Rupee Turnover basket with Dabur Anmol Coconut Oil joining this coveted list this year. The year also saw our flagship toothpaste brand Dabur Red Paste cross ` 500 crore turnover mark, making it the fourth Dabur brand to reach this mark after Dabur Amla, Vatika and Réal. Brands such as Hajmola, Dabur Red, Real and Dabur Amla featured in the Most Trusted Brands survey reflecting the trust of millions of consumers. Recent years have seen the re-emergence of Ayurveda with a growing population of Indians embracing traditional recipes and natural products 2 Annual Report 2017-18 for meeting their day-to- and Development and has filed Body & Health Products day health and personal care several patents for some of the Proprietary Limited. These needs. This consumer trend developments in the field of companies own and operate the continues to gain traction Ayurveda. Long & Lasting brand of hair offering numerous opportunities care products in Africa. This for growth and expansion. As With the market place changing acquisition is expected to be a the country’s leading Science- rapidly due to GST, Dabur good bolt on to our existing hair based Ayurveda expert, Dabur has focused on growing its care portfolio in Africa through has been at the forefront of distribution network not only the ORS brand. driving innovation to make this in traditional trade but also traditional Indian knowledge in emerging channels like As an organization, Dabur available in a form that appeals Modern Trade, E-commerce, is committed to sustainable to the modern consumer. I am etc. During fiscal 2017-18 development and being a pleased to inform you that we our direct reach crossed 1 responsible corporate citizen. are continuing on this path with million retail outlets, making We continue to focus on renewed vigor and commitment it one of the largest direct conserving our natural resources and will continue to build a distribution networks in the and reducing the water and strong and contemporary FMCG space in India. We have energy use at our manufacturing portfolio of Ayurvedic products also significantly strengthened units across the globe. both in consumer health and our rural footprint with Dabur Our commitment to social personal care categories. now reaching close to 42,000 responsibility is also reflected villages across the country. in the several welfare programs In 2017-18, we launched several This distribution enhancement initiated by Dabur. Details of new products based on the initiative has helped increase these activities are provided in knowledge of Ayurveda to the average number of brands the following sections of this address a variety of Health and being sold in the hinterland by Annual Report. Personal Care issues. These nearly 10%, besides significantly include Ayurvedic remedies for augmenting the availability and At Dabur, we are committed managing diabetes, improving reach of smaller brands. During to our mission of generating digestion, treating cough & the year, several purpose-driven sustainable value for all our cold and maintaining oral digital campaigns were also stakeholders, through more health. Details of these new initiated in the digital space to innovation, greater efficiency launches have been provided amplify and complement similar and profitable growth. On in the Management Discussion initiatives run both on traditional behalf of the entire Board and & Analysis section of this media as well as on-ground. the Management of Dabur India report. Our Ayurveda focus Ltd, I would like to express my will only sharpen in the coming A true transnational gratitude to all our employees, years as we have lined up a organization is recognized by suppliers, consumers, series of exciting new product its innovation and its ability distributors, partners and launches and consumer connect to deftly adapt to changes shareholders for their continuing initiatives to make Ayurveda in the business environment. faith and confidence in the accessible for the modern-day Dabur’s International Business company, our brands and consumer. has been facing currency and products. We look forward to geopolitical headwinds for continuing this journey together Moving forward on this mission, the past couple of years. We in the current fiscal and beyond. we have also increased the have put in place measures coverage of our biodiversity to respond to the changing initiatives. The year 2017-18 market dynamics and launched Sincerely, saw an increase of 25% in the a number of unique value- Dr. Anand C. Burman area under cultivation of rare added nature-based offerings Chairman medicinal herbs to over 5,000 that helped our International acres. This would not only Business report strong growth in help in generating sustainable constant currency terms. During supply of rare herbs but also the year the company signed contribute to the environment. an agreement to acquire 100% The Company continues to shareholding of D&A Cosmetics invest strongly in Research Proprietary Limited and Atlanta 3 Dabur India Limited Integrated Report The Science of Ayurveda 4 Integrated Report | Board & Management Reports | Financial Statements Annual Report 2017-18 onsumers across the globe are focusing on its Ayurvedic heritage to cater to reaffirming their trust in nature. the ever-changing needs of its consumers and In India too, this trend is gaining introduce products leveraging its over-a-century- C pace with a growing number of old experience in this area.