Let me begin by wishing you good health and safety in these troubledtimes. I sincerely hope you stay safe and protected from COVID.
My heart goes out to the families and friends of all those people whoselives have been impacted by the pandemic.
I would also like to take this opportunity to show my immense gratitudeto all our frontline heroes - police personnel doctors health workers and sanitationworkers - for their efforts in keeping us safe.
Dabur has also been at the forefront by lending a helping hand in thefight against the disease by supporting various national and local institutions and thecentral and state governments. The Dabur Group has committed Rs 21 crore towards theserelief measures. Details of our COVID relief initiatives have been provided in thisreport.
With the COVID pandemic impacting economies lives and livelihood allover the world the Company's sales and profits were also impacted during lastquarter of the financial year. Despite the COVID impact Dabur ended FY 2019-20 with a 2%growth in Revenue from Operations at Rs 8704 Crore. Net Profit for the full year stood atRs 1445 Crore reflecting a similar level as last year. Excluding exceptional items NetProfit for the year marked a growth of 5.8%.
Before the CoronaVirus outbreak Dabur was on track to deliver a strongoperating performance on the back of Power Brand strategy aggressive brand-building anddistribution enhancement initiatives. The year saw Dabur progress on its growth strategyby investing heavily behind
the nine identified Power Brands majority of which fall in thestrategically important health care domain. The strategy paid off with these brandsreporting good growth during the year and gaining market share in their respectivecategories. Details of the Power Brand strategy are presented in the following sections ofthis report.
We also continued to expand our distribution footprint particularly inthe hinterland taking up our village coverage to 52000 villages by the end of March 2020as against 44000 villages in March 2019. Our direct retail coverage has also increasedfrom 1.1 million outlets to 1.2 million outlets during the year. With the lockdownrestrictions easing now we are continuing our strategy of distribution expansion and planto increase the village network to 60000 villages by the end of the current financialyear besides increasing the direct coverage to 1.5 million outlets over the next 2 to 3years.
Our International business was on track of strong growth before it wasimpacted by COVID-19. In addition to this crisis macro-economic slowdown driven bydeclining oil prices further started to impact our business particularly in the MENAregion. We successfully mitigated the impact with a series of localised measures andinitiatives and ended the year with strong gains in market shares across most categories.Our International Business reported growth of 4.9% during FY 2019-20. We will continue toleverage our global presence natural heritage consumer-relevant innovations andunmatched product portfolio to generate strong profitable growth in our internationalbusiness.
Science of Ayurveda
Since the COVID outbreak the demand dynamics have undergone a seachange with consumers increasingly seeking Ayurvedic products that build immunity besidesproducts to meet their personal and household hygiene needs. As the country's largestAyurvedic products maker our business is well positioned to address this trend with ourportfolio of immunity building products. We have further strengthened this portfolio withthe introduction of a whole new range of Immunity Boosters. We have also entered thepersonal and household hygiene market details of which have been provided in othersections of this report.
As an organisation we have always believed in the benefits of Ayurvedaand have been propagating the goodness of Ayurveda for the past 136 years. In the pastyear we have taken several steps to further enhance the popularity of Ayurveda and makeit more mainstream which includes launch of contemporary formats enhanced distributionand visibility and promotion on digital media. Samvaad conferences were organised todiscuss Ayurvedic products processes and new developments in this field with medicalprofessionals. We also organised health camps and doctor meets to disseminate informationabout the efficacy of Ayurvedic medicines in managing healthcare including lifestylediseases that are surfacing in current times.
The nimble-footedness and agility that our management team hasdisplayed in responding to the changing dynamics in the marketplace with a morestreamlined portfolio and refreshed positioning to meet the emerging needs of our consumeris indeed commendable. During the year more than 50 new products have been introducedacross categories a majority of which were launched during and after the lockdown periodreflecting a strong and committed effort to mitigate the immediate crisis and emerge fromit stronger and Future Ready.
Our brand portfolio which includes 18 brands with more than onebillion Rupees in Revenue remains unmatched in the FMCG industry. With our strongheritage and our unmatched product portfolio we are confident of effectively managing ourbusiness regardless of the operating environment and relentlessly working towardsdelivering long-term value for our stakeholders.
Caring for Environment
The Company has a strong commitment towards environment sustainabilityand social development.
We continue to build on this strength by working more proactively inthe areas of plastic waste management and community welfare. This year we expanded ourplastic waste management initiative to 25 states collecting and processing/recycling over12000 MT of post-consumer plastic waste which accounts for around 60% of our plasticwaste generation. This is part of our commitment to reducing the impact of our business onthe environment and be a responsible corporate citizen. Our commitment to socialresponsibility is also reflected in the several welfare programmes we run across thecountry. Details of these activities are provided in other sections of this report.
Our biodiversity initiatives also gained pace during the year and Daburdistributed over 19 lakh saplings of medicinal plants free of cost to farmers across thecountry. Today we grow these rare medicinal herbs in over 4800 acres of land spreadacross the country with over 6900 farmers benefiting from the exercise.
Looking back I would say FY 2019-20 was not an easy year especiallytowards the end. But I know that we can count on the experience of our management team andthe commitment of our 7000-plus employees worldwide to weather any storm that comes ourway.
I would like to take this opportunity to thank our colleagues acrossthe globe for their continued hard work and commitment over the last year andparticularly during the COVID-imposed lockdown. We owe our success to them. They are ourtrue Corona Warriors and their commitment is what drives our business forward during thesetroubled times and positions us for sustainable growth in the future. We are today a muchmore agile organisation that is fuelled by the passion and entrepreneurship spirit of ouremployees.
I would also like to extend my gratitude to our distributors vendorsbusiness associates and our consumers for their continued support and commitment towardsDabur India Ltd. Finally I thank you our esteemed shareholders and investors for yourcontinued trust confidence and guidance in these trying times.
We are committed to investing strongly behind our business and drivingit on a strong growth trajectory and we look forward to continuing this rewarding journeytogether with you in the current fiscal and beyond.
|Amit Burman |