Mr. Mohit Burman
Dear Shareholders,
I am honoured to write to you for the first time as the Chairman of Dabur Inda Limited. As I take on the role of the Chairman, I feel immense pride in what our organization has already accomplished, how we have upheld our promise of delivering Health and Well-being to every Household, and I am equally enthusiastic about what the future holds for us.
The past few years have been a period of great contrasts...demanding and satisfying in equal measure. The COVID-19 pandemic fuelled an unprecedented innovation drive that saw Dabur display unparalleled agility to roll out a plethora of purposeful, consumer-centric introductions, rapidly adopt digital advancements and technologies to strengthen its go-to-market strategies while deepening its focus on People and Planet with enhanced investments in creating a greener enterprise. These measures not only helped us survive the pandemic but also emerge stronger and better.
As the pressures of the pandemic receded, we saw a new challenge emerge in the form of high Inflation, which pushed up commodity prices to multi-decade highs in many countries, causing central banks to raise interest rates and slow down economic activity. The inflationary environment also took a toll on consumption patterns as consumers tightened their purse-strings and consumer goods industry witnessed a slow-down.
Even in a turbulent operating environment, Dabur ended the 2022-23 financial year with a Consolidated Revenue of 11,529.9 Crore, up 6% from 10,888.7 Crore in 2021-22. Net Profit for the full year stood at 1,707.1 Crore.
Our performance in a tough inflationary environment aptly demonstrates the power and consistency of Dabur’s strategic playbook, which helped us capitalize on our brand strength while continuing to innovate and deepen our engagement with our consumers. We are happy to have progressed well with expanding our presence in key categories and report market share gains across our product portfolio. I am pleased to share with all of you that today, Dabur is amongst the top most penetrated brands in the country with 8 out of 10 households being a Dabur household and using one or more Dabur products.
Surpassing New Milestones
Our products always meet the highest quality standards. As we work towards bringing new and innovative products and solutions to market, we are determined to remain committed to providing innovative health and wellness solutions on herbal and natural platform to our consumers in contemporary formats to meet their evolving needs.
Today, we have a portfolio of 23 Billion Rupee Brands, brands with sales greater than 100 Crore. The year 2022-23 saw 5 brands joining this list. In all, we now have 17 brands that are above 100 Crore but lesser than 500 Crore in size; 2 brands that are over 500 Crore but less than 1,000 Crore in size, and another 4 brands that have a turnover of more than 1,000 Crore.
Our latest launch Real fruit drinks PET portfolio ended the year with Sales of 200 Crore within 2 years of launch and we plan to cross the 500 Crore-mark with this business in the next 3-4 years.
The year also marked Dabur’s entry into the ground and blended spices category with the acquisition of 51% shareholding of Badshah Masala Private Limited. This acquisition is in line with Dabur’s strategic intent to expand its Foods business to 500 Crore in 3 years and expand into the 25,000 Crore branded spices market which offers significant potential.
Ensuring Our World in Balance
Balance Our Company is committed to taking meaningful and measurable action to support a greener, cleaner planet for future generations as we operate and grow our business. Over the past few years, we have taken rapid strides on the ESG front. I have great pride in announcing that Dabur has become the first Plastic Waste Positive Indian FMCG Company in 2022-23, having collected, co-processed/recycled 35,000 MT of post-consumer plastic waste. Today, Dabur collects, processes and recycles more plastic waste than it sells in its product packaging in a year.
2022-23 was an important year for our collective journey towards Sustainable Development for all. The year saw us launch our enhanced ESG programme under which we have taken some aggressive ESG targets. We aspire to achieve Net Zero in the entire value chain by 2045, supported by a 200% increase in acreage for sustainably cultivating medicinal plants by 2030 and a 100% rise in the number of farmers being engaged in the exercise.
More details about ESG initiatives can be seen here and in the Business Responsibility & Sustainability Report.
The Road Ahead
Despite an uncertain macro climate, I am confident about the resilience of Dabur’s strategy and business construct. Our Power Brands continue to fuel the company’s growth. We see significant opportunities ahead of us and believe that our investments in building a strong supply chain, manufacturing infrastructure and an enduring portfolio will enable us to capture these opportunities. We will continue to make sustained efforts to drive demand for our brands by enhancing our rural footprint, rolling out premium, consumer-centric innovations in urban India and ploughing investments behind our power brands. Our rural footprint has crossed the 100,000-village-mark this year. We will continue to drive deeper into the hinterland, going forward. We are investing in further cementing our standing as the world’s leading sciencebased Ayurveda Company by investing strongly in R&D, science based claim support and enhancing our advocacy footprint amongst the healthcare fraternity.
It goes without saying that the foundation of our success has been built by our hard-working and committed employees, who bring our promise of being "Dedicated to the Health and Well-being of every Household" to life. The past few years have brought with them extraordinary challenges and I’m constantly inspired by the determination, resilience and ingenuity of our people in overcoming them. I thank them for their dedication.
I would also like to acknowledge the contributions of our Management Committee and the Board of Directors. And above all, I would like to thank you, our shareholders, for your support and continued trust in Dabur.
Sincerely,
MOHIT BURMAN
CHAIRMAN
Annual Report 2022-23