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Dabur India Ltd.

BSE: 500096 Sector: Consumer
NSE: DABUR ISIN Code: INE016A01026
BSE 12:08 | 08 Dec 574.45 2.15
(0.38%)
OPEN

577.00

HIGH

577.00

LOW

572.90

NSE 11:59 | 08 Dec 575.90 3.50
(0.61%)
OPEN

575.40

HIGH

576.85

LOW

572.45

OPEN 577.00
PREVIOUS CLOSE 572.30
VOLUME 8681
52-Week high 658.75
52-Week low 483.00
P/E 70.14
Mkt Cap.(Rs cr) 101,557
Buy Price 574.10
Buy Qty 1.00
Sell Price 574.45
Sell Qty 34.00
OPEN 577.00
CLOSE 572.30
VOLUME 8681
52-Week high 658.75
52-Week low 483.00
P/E 70.14
Mkt Cap.(Rs cr) 101,557
Buy Price 574.10
Buy Qty 1.00
Sell Price 574.45
Sell Qty 34.00

Dabur India Ltd. (DABUR) - Chairman Speech

Company chairman speech

Chairman's Message

Dear Shareholders

Let me begin by wishing all of you good health and safety in thesechallenging times The second wave of COVID has affected us all in some way or the other.

My heart goes out to the families and friends of all those who havelost their loved ones or are struggling with health issues due to this pandemic. I wouldalso like to place on record my appreciation of the entire Dabur family who have risen tomeet the challenges which this pandemic threw up over the year. On behalf of the Board ofDirectors of Dabur India Ltd I thank them for taking their dedication to new heights thispast year as they worked towards meeting and overcoming the challenges and ensureduninterrupted supply of our products to millions of consumers when they needed them themost.

I would also like to take this opportunity to express my immensegratitude to all our frontline heroes - police personnel doctors health workers andsanitation workers - for their efforts in keeping all of us safe during these uncertaintimes.

Despite facing multiple headwinds Dabur India Ltd delivered a robustperformance in 2020-21 with 10% growth in ConsolidatedRevenue from Operations touchingRs. 9562 Crore. Consolidated Net Profit for FY 2020-21 stood at Rs. 1693 Crore a 17.2%jump over the previous year. Our India FMCG. Business led the growth with a 15% surgewith underlying Volume Growth of 12.5% in FY 2020-21After the initial period of disruptionin first quarter of FY2020-21 made a good recovery led by Healthcare business which saw ahuge tailwind with the growing consumer demand for Ayurvedic immunity-building products.

Oral Care business continued to be an outperformer all through theyear. The latter half of the year also saw a smart turnaround by our Foods and Home andPersonal Care categories. Among the channels E-commerce continues to be a key growthdriver and now contributes to around 6% of our domestic Sales up from 2.4% in the previousyear. Details of our category-wise performance have been shared in the MDA section of thisreport.

BUILDING A RESILIENT ENTERPRISE

The significantly strengthened performance that Dabur reported in aCOVID year comes from the high degree of resilience that we built into our businessthrough a series of consumer-centric and tactical innovations coupled with investments inadding capacity for our immunity-building portfolio of Ayurvedic medicines and products.Our diversified portfolio and our strong financial position helped us successfullynavigate the uncharted waters of the pandemic and emerge stronger.

PROTECTING OUR EXTENDED FAMILY

The emergence of the second and more devastating wave of the pandemicin March 2021 tested the character of the organization all over again. As we stayed trueto our Ayurvedic roots while working tirelessly towards serving all our stakeholders thehealth and safety of our employees remained paramount. We rolled out a series ofinitiatives

Even in a grim COVID the Company year Dabur crossed severalmilestones:

Our Gross Sales topped Rs. 10000 Crore for the first time.

Our Operating Profit exceeded Rs. 2000 crore.

One of our youngest and flagship Power Brands Dabur Red Paste touchedthe Rs. 1000 crore mark.

We added `500 Crore turnover to the Health

Supplements portfolio which includes iconic brands like Dabur Honeyand Dabur Chyawanprash.

Our Market Capitalisation touched the ` One Trillion mark.

COVID presented significant challengesfor business.our people and ourTo succeed in this uncertain and highly dynamic environment we needed to be agile andseize opportunities in a very short timeframe. We quickly adapted our business approachmobilised our teams to put in a strong effort despite lockdown restrictions besidesleveraging technology and innovation to address the changing environment and the emergingneeds of our consumers.

We also rolled out a series of measures to protect employees at ourstockists and CFAs while stepping up our efforts to serve the community. Dabur donatedmillions of face masks sanitizers and other critical material to local COVID isolationcentres and front-line workers besides investing in Oxygen Generation units to meet thegrowing need for this vital life support system. Details of our various initiativestowards fightingthe pandemic have been shared in the Capitals section of this report.

RESET AND RESPOND

The Company showed a high degree of flexibility and engagement quicklyadapting to the changing environment and operating conditions. We quickly reopened ouroperations after the initial shutdown and remained focused on strategic development ofcore businesses. We sharpened our focus on our Power Brands and the Ayurvedic Healthcareportfolio besides building increased flexibility into our planning and Go-to-Marketstrategies to drive profitable growth. The Company invested strongly behind its brands andincreased the spends on digital and other media channels to enhance the visibility of ourproducts. These strategies paid off with our Power Brands growing ahead of other brandsand the business reported strong gains in market share across the portfolio.

We also continued to expand our distribution footprint particularly inthe hinterland taking up our village coverage to 59217 villages by the end of March2021. We will be expanding this coverage to 80000 villages in the next 2 years. We havealso embarked on an ambitious new initiative ‘Dabur Yoddha' to further reinforceits rural presence which also seeks to provide sustainable livelihood to the rural folksby appointing them as our local sales representatives in their respective villages.Details of this initiative has been presented on the MDA section of this report.

ADVANCING SUSTAINABILITY

In my letter to you last year I had laid out our longstandingcommitment to ESG initiatives. Despite the challenges brought about by the COVID pandemicand the resultant nationwide lockdown I am happy to report that we have moved forward onthese commitments. We implemented a series of measures both within and outside our gatesto reduce the impact of our business on the environment and also support sustainabledevelopment of communities. We moved ahead with our Plastic Waste Management initiativecollecting and processing/recycling over 11413 MT of post-consumer plastic waste duringthe year. Special initiatives were also rolled out to clean our oceans and our citiesdetails of which have been shared in the Natural Capitals section of this report.

We moved ahead with our Plastic Waste Management initiative collectingand processing/recycling over 11413 MT of post-consumer plastic waste during the year.

FUTURE OUTLOOK

While we will remember 2020-21 for the significant challenges the yearpresented in the form of COVID-19 the fact remains that the pandemic is far from over.With the emergence of the second wave and talks of another wave likely in the future wemight have to cope with the related challenges in the months to come.

That said we are better prepared to handle the pandemic as compared tolast year. We are also applying learnings from last year on streamlining the supply chainto ensure minimal disruption in availability of our products. While this remains adeveloping situation our factories continue to operate on a relatively normal basis. Weare also encouraged by the strong consumer demand trends for Ayurvedic

Healthcare products and medicines which is expected to make up for anyloss in the discretionary products business in case the wave worsens. I am confident thatDabur is well positioned to meet the challenges ahead and generate sustainable long-termgrowth.

As we finish this period with a strong set of results I would like totake this opportunity to thank all our colleagues once again. Dabur's resilience inthese challenging times is a testament to their dedication and commitment. I would alsolike to thank my fellow directors for their valuable guidance and support to the business.Finally let me close by thanking all our shareholders investors business associates andconsumers for the trust and confidence they have placed upon us. I look forward to yoursupport in our endeavour to continue delivering value for all our stakeholders over thecoming years.

Stay Safe and Thank You.

Sincerely
AMIT BURMAN
CHAIRMAN

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