It gives me great pleasure to write to you at the end of another year in our134-year-long journey. The financial year 2017-18 demonstrated yet again the strength ofour strategy of being the country's leading Science-based Ayurveda expert which helped usdeliver greater value to all our stakeholders.
The year 2017-18 was marked by the implementation of Goods and Services Tax (GST)w.e.f. 1st July 2017. This major reform in India's taxation structure led to a temporaryslowdown in the growth momentum as pre-GST jitters gripped the trade leading tosignificant pipeline reduction during the first quarter. These jitters were howevershort-lived as both demand and the economy posted a recovery in the months that followedthe GST roll-out. Adverse macroeconomic conditions and currency volatility in some of ourinternational markets also posed additional challenges during the year.
Your Company has managed these challenges well on account of resilience and strength ofits brands and continuing to invest strongly in sales and distribution and operationsinfrastructure. During 2017-18 the Company achieved Consolidated Revenue from Operationsof ` 7748 crore growing by 6.9% after adjusting for currency and GST impact.Consolidated Net Profit for 2017-18 stood at ` 1354 Crore increasing by 6.1% overprevious year.
Many of our key brands achieved significant landmarks during the year. Our brandportfolio today includes 16 brands in the Billion Rupee Turnover basket with Dabur AnmolCoconut Oil joining this coveted list this year. The year also saw our flagship toothpastebrand Dabur Red Paste cross
` 500 crore turnover mark making it the fourth Dabur brand to reach this mark afterDabur Amla Vatika and Ral. Brands such as Hajmola Dabur Red Real and Dabur Amlafeatured 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 ofIndians embracing traditional recipes and natural products and Development and has filedseveral patents for some of the developments in the field of Ayurveda.
With the market place changing rapidly due to GST Dabur has focused on growing itsdistribution network not only in traditional trade but also in emerging channels likeModern Trade E-commerce etc. During fiscal 2017-18 our direct reach crossed 1 millionretail outlets making it one of the largest direct distribution networks in the FMCGspace in India. We have also significantly strengthened our rural footprint with Dabur nowreaching close to 42000 villages across the country. This distribution enhancementinitiative has helped increase the average number of brands being sold in the hinterlandby nearly 10% besides significantly augmenting the availability and reach of smallerbrands. During the year several purpose-driven digital campaigns were also initiated inthe digital space to amplify and complement similar initiatives run both on traditionalmedia as well as on-ground.
A true transnational organization is recognized by its innovation and its ability todeftly adapt to changes in the business environment. Dabur's International Business hasbeen facing currency and geopolitical headwinds for the past couple of years. We have putin place measures to respond to the changing market dynamics and launched a number ofunique value-added nature-based offerings that helped our International Business reportstrong growth in constant currency terms. During the year the company signed an agreementto acquire 100% shareholding of D&A Cosmetics Proprietary Limited and Atlanta
Body & Health Products Proprietary Limited. These companies own and operate theLong & Lasting brand of hair care products in Africa. This acquisition is expected tobe a good bolt on to our existing hair care portfolio in Africa through the ORS brand.
As an organization Dabur is committed to sustainable development and being aresponsible corporate citizen. We continue to focus on conserving our natural resourcesand reducing the water and energy use at our manufacturing units across the globe. Ourcommitment to social responsibility is also reflected in the several welfare programsinitiated by Dabur. Details of these activities are provided in the following sections ofthis Annual Report.
At Dabur we are committed to our mission of generating sustainable value for all ourstakeholders through more innovation greater efficiency and profitable growth. On behalfof the entire Board and the Management of Dabur India Ltd I would like to express mygratitude to all our employees suppliers consumers distributors partners andshareholders for their continuing faith and confidence in the company our brands andproducts. We look forward to continuing this journey together in the current fiscal andbeyond.
Dr. Anand C. Burman