Financial Analysis of Annual Report for Dabur

Submitted to: Prof. Vandana Gupta

Submitted By:Abhay Karan Singh Khurana Akshat Jain Anurag Jain Deepanshu Pahuja Dhruv Bhurani Gunjan Bhateja 211006 211012 211027 211042 211043 211049

TABLE OF CONTENTS
S No 1. Chapters INTRODUCTION OF DABUR & ITS PROFILE 1.1 Introduction to Dabur Page No 6 7 8 9

1.2 Board of Directors 1.3 Dabur: At a Glance

2.

ANALYSIS OF OPERATING PERFORMANCE 2.1 Analysis of Sales Mix 2.2 Peer Comparison

12 13 15

3.

FINANCIAL STATEMENT ANALYSIS 3.1 Ratio Analysis 3.2 Trend Analysis 3.3 Balance Sheet & Income Statement Comparison

18 19 31 34 45 49

4. 5.

CASH FLOW STATEMENT ANALYSIS SWOT ANALYSIS

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ACKNOWLEDGEMENT
Any job in this world, however trivial or tough cannot be accomplished without the assistance of others. We would hereby take the opportunity to express our indebtness to people who have helped us to accomplish this task. We would also like to express sincere gratitude to Prof. Vandana Gupta at FORE School of Management for guiding us in every possible way and sharing her experiences to help us. We take this opportunity to thank all those people who have directly or indirectly helped us in making of this report.

Abhay Karan Singh Khurana (211006) Akshat Jain (211012) Anurag Jain (211027) Deepanshu Pahuja (211042) Dhruv Bhurani (211043) Gunjan Bhateja (211049) Prof. Vandana Gupta

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DECLARATION
The investigatory project on the topic Financial Analysis of Financial Report: Dabur is prepared by Preet Varun Singh on the partial fulfillment MBA 1st Trimester. This project is original and is not copied from anywhere else up to my knowledge.

Abhay Karan Singh Khurana (211006) Akshat Jain (211012) Anurag Jain (211027) Deepanshu Pahuja (211042) Dhruv Bhurani (211043) Gunjan Bhateja (211049)

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Chapter 1 Introduction of Dabur & Its Profile

Page 5 of 51

Introduction to Dabur
About Dabur
The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague. Soon the news of his medicines traveled, and came to be known. As the trusted 'Daktar' or Doctor who came up with effective cures. And that is how his venture Dabur got its name - derived from the Devanagri rendition of Daktar Burman.Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability. Dabur India Limited is the fourth largest FMCG Company in India with Revenues of over US$1 Billion (Rs 5,283 Crore) and Market Capitalization of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today Indias most trusted name and the worlds largest Ayurvedic and Natural Health Care Company. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering over 3.4 million retail outlets with a high penetration in both urban and rural markets. Daburs products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, Africa, SAARC countries and the US. Daburs overseas revenues account for over 30% of the total turnover. Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Daburs FMCG portfolio today includes five flagship brands with distinct brand identities.

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Board of Directors
Dabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate governance. The Board comprises of:

Chairman Dr. Anand Burman

Whole Time Directors

Vice-Chairman Mr. Amit Burman

Mr. P.D. Narang

Mr. Sunil Duggal

Non Whole Time Promoters, Directors

Mr. Mohit Burman

Independent Directors

Mr. Saket Burman

Mr. Albert Wiseman Mr. P. N. Vijay Paterson

Mr. R C Bhargava

Dr. S. Narayan

Dr. Ajay Dua

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Dabur: At a Glance
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves

Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09) 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD) 3 Subsidiary Group companies - Dabur International, Fem Care Pharma and newu. 17 ultra-modern manufacturing units spread around the globe Products marketed in over 60 countries

Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India

Short Description of Three Major Strategic Business Units (SBUs)

a) Consumer Care Division (CCD):Consumer Care Business, which incorporates the entire FMCG business of Dabur comprising Health care and Home & Personal care verticals accounts for 56% of the Companys consolidated revenues International Business Division (IBD), which includes Daburs organic overseas business as well as the acquired entities, Hobi Group and Namaste Laboratories LLC, accounts for 30.3% of Daburs consolidated revenues.The Consumer Care Business is the largest segment, contributing to 56% of consolidated sales and grew by 11.4% during fiscal 2011-12. The segment is divided into the key verticals of Health care and Home and Personal care.

Category-Wise Share of Consumer Care Sales

12 8 6 6

17

Oral Care Hair Care Health Supplements Home Care

30

Skin Care Digestives OTC & Ethicals

21

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Master Brands:

Dabur - Ayurvedic healthcare products Vatika - Premium hair care Hajmola - Tasty digestives Ral - Fruit juices & beverages Fem - Fairness bleaches & skin care products

9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Ral, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share. Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day Leader in herbal digestives with 90% market share

b) Foods Division:Foods Division, consisting of fruit-based beverages and culinary pastes business, contributes 10.1% of total sales. Daburs Foods Business emerged as the star performer of 2011-12 as the category crossed Rs. 500 crores in sales. This marks a 10-fold jump in its sales in nine years, a big achievement given the fact that this business is driven purely by packaged fruit juices -- a category that was almost nonexistent a decade ago and was pioneered by Dabur. The Foods business at present includes fruit juices and nectars under the brands Ral and Ral Activ and culinary pastes under the brand Hommade.

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c) International Business Division (IBD):Daburs International Business continued on a strong growth trajectory with sales growing by 78.3% to Rs. 1,616 crores. The International Business now contributes 30.3% to consolidated sales. Fiscal 2011-12 was the first full year of the two overseas acquisitions Hobi Group and Namaste Laboratories, LLC under the Dabur fold. During the year, these acquisitions were ssimilated and integrated with the existing organic overseas business. If we were to look at the growth in sales of the organic business excluding acquisitions, nthe business grew by 27.1% to Rs. 929.9 crores. Our key geographies by total overseas revenues now are: Middle East, Africa, Asia and U.S.

International Sales Split

6 16 22

Africa Middel East US Asia Others

26

30

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Chapter 2 Analysis of Operating Performance

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I. Analysis of Sales Mix

Consumer Care Business Current Year Revenue External sales Inter-segment sales Total Revenue % contribution of Each Sector 3,06,341 3,06,341 82% Foods Others Total Previous Year 2,74,833 2,74,833 85% Current Year 53,434 53,434 14% Previous Year 43,795 43,795 13% Current Year 14,502 14,502 4% Previous Year 7,809 7,809 2% Current Year 3,74,277 3,74,277 Previous Year 3,26,437 3,26,437

(All Figures in Rs. Lacs)

% Sales in the Year 2012

Consumer Care Business 4% 14% Foods Others

% Sales in the Year 2011

Consumer Care Business 2% 13% Foods Others

82%

85%

Although the revenue from Consumer Care Business increased by 11.6%, the percentage of contribution to sales from the Consumer Care Business decreased by 3%. Also the total revenue from the Others segment also doubled. Overall, there was an increase in revenues contributed by each segment of the company.

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Sales: - Domestic Vs. Export

For the year ended March 31, 2012 Sales of Products Domestic Export 4,78,724 53,758 5,32,482 89.90% 10.10% % in total sales For the year ended March 31, 2011 4,10,985 3,70,940 90.26% 40,045 9.74% (All Figures in Rs. Lacs) % in total sales

Domestic/Export Sales in the year 2012

Domestic 10.10% Export

Domestic/Export Sales in the year 2011

Domestic Export

9.74%

89.90%

90.26%

There was an increase of 34% in the exports of Dabur which increased the percentage share of exports in the total sales from 9.74% to 10.10% over the two years. Also the domestic sales increased by 27% over the two years.

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II. Peer Comparison

Return on Net Worth
Return on Net Worth (%) 2010 58.04 85.25 21.30 40.64

Dabur HUL ITC P&G

2009 51.20 121.34 21.18 37.91

2011 2012 46.29 37.09 87.57 76.62 22.91 23.97 33.62 25.11 (All Figures in Rs. Lacs)

140 120 100 80 60 40 20 0 2009 2010 2011 2012 Dabur HUL ITC P&G

The amount of net income returned as a percentage of shareholders equity. Return on net worth measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. RONW is expressed as a percentage and calculated as:

Return on Net Worth =

Net Income Net orth

Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares. Page 14 of 51

The RONW of Dabur increased from 09-10, but it started decreasing there onwards. The RONW in the year 2012 was 37.09%, 14% less than 2009. This trend was experienced by the entire FMCG sector where the RONW decreased. Only ITC was able to improve its RONW marginally.

Profit Margins
2009 15.44 12.09 21.18 22.36 Profit Margins 2010 15.03 12.29 21.30 19.31 2011 2012 14.27 12.17 11.56 12.07 22.91 23.97 14.54 12.85 (All Figures in Rs. Lacs)

Dabur HUL ITC P&G

30

25

20 Dabur 15 HUL ITC 10 P&G

0 2009 2010 2011 2012

A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. Daburs profit margin has been decreasing over the past years by a small percentage. the decreasing profit margin can be attributed towards incresing the inventory. Dabur is doing better than some of its competitiors.

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Return On Assets
2009 8.43 9.45 32.37 106.79 Return on Assets 2010 8.60 11.84 36.95 135.56 2011 5.85 12.19 37.66 164.70 2012 7.17 16.25 21.12 185.03

Dabur HUL ITC P&G

(All Figures in Rs. Lacs)

200 180 160 140 120 100 80 60 40 20 0 2009 2010 2011 2012 Dabur HUL ITC P&G

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment". The formula for return on assets is:

Net Income Total ssets

The return on assets has been stagnant for Dabur and the competitors of the company are doing better. Also the company has increased its investments which may prove vital for the company in future.

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Chapter 3 Financial Statement Analysis

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I. Ratio Analysis
Solvency Ratios
The long-term solvency of a business is affected by the extent of debt used to finance the assets of the company. The presence of heavy debt in a companys capital structure is thought to reduce the companys solvency because debt is more risky than equity. Important indicators of a firms solvency are discussed below:1) Debt-Equity Ratio It measures the relationship of the capital provided by creditors to the amount provided by shareholders. Debt includes interest-bearing liabilities, both short-term & longterm, but excludes operating liabilities. A lower Debt-Equity Ratio is better for the company. Debt-Equity Ratio = Debt-Equity Ratio 2010 10,997 74,938 0.14

Year Total Debt Shareholder Fund Debt-Equity Ratio

2009 14,137 73,820 0.19

2011 2012 25,201 27,781 1,10,116 1,30,327 0.22 0.21 (All Figures in Rs. Lacs)

0.25

0.2

0.15

2009 2010

0.1

2011 2012

0.05

0 Debt-Equity Ratio

These ratios are very low. Which indicates that in the coming future the company can easily increase the amount of leverage in its capital structure. Also, over the years the ratio has increased showing indicating that the company has started relying more on external borrowings. (both long-term &

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short-term) However, the proportion of the Debt still is very low in comparison to the Equity of the company. 2) Debt-Assets Ratio Determines how much of the company's assets have been financed by debt. It is calculated by adding short-term and long-term debt and then dividing by the company's total assets. The lower it is, the better it is for the company. Debt-Assets Ratio =
Total Debt Total ssets

Year Total Debt Total Assets Debt-Assets Ratio

2009 14,137 1,55,062 0.09

Debt-Assets Ratio 2010 10,997 1,74,346 0.06

2011 2012 25,201 27,781 2,40,791 2,84,071 0.10 0.09 (All Figures in Rs. Lacs)

0.12

0.1

0.08 2009 0.06 2010 2011 0.04 2012

0.02

0 Debt-Assets Ratio

A lower Debt-Asset Ratio indicated that most of the assets of the company are financed through its Equity Funds. Also, the ratio has decreased from the years 09-10 & 11-12 which signify an increasing dependence of the company on equity funds for the purpose of financing its assets & less dependence on its Debt. This is a good sign for the company, as it reduces the chances of default of payment.

3) Interest Coverage Ratio This is the measure of protection available to the creditors for payment of interest charges by the company. It shows whether the company has sufficient income to cover its interest requirements by a wide margin. Page 19 of 51

It is calculated by dividing the profit before interest, tax and depreciation by the interest expense. Interest Coverage Ratio =
arnings before Interest, Tax & Depreciation Interest Payments to Borrowers

Year EBITA Interest Payments Interest Coverage Ratio

2009 46,974 1,338 35.1

Interest Coverage Ratio 2010 57,020 560 101.82

2011 67,709 1,293 52.36

2012 66,701 1,410 47.30

(All Figures in Rs. Lacs)

120

100

80 2009 60 2010 2011 40 2012

20

0 Interest Coverage Ratio

A high Interest Coverage Ratio implies that there is adequate safety for payment of interest even if there was a drop in the companys earnings. lthough the ratio initially increased & then decreased, it is still maintained at a healthy level.

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Liquidity Ratios
Liquidity is the ability of a business to meet its short-term obligations when they fall due. An enterprise should have enough liquid and other current assets which can be converted into cash so that it can pay its suppliers & lenders on time. For evaluating Daburs liquidity, we examine the following ratios:1) Current Ratio It is a widely used indicator of a companys ability to pay its debts in the shortterm, and shows the amount of current assets a company has per rupee of current liabilities. Here, current assets include loans &advances and current liabilities include provisions. It is an important indicator of a companys current and prospective liquidity position. Current Ratio =
Current ssets Current Liabilities

Year Current Assets Current Liabilities Current Ratio

2009 74,505 66,410 1.12

Current Ratio 2010 91,795 87,216 1.05

2011 2012 1,39,732 1,63,062 92,384 1,07,742 1.34 1.32 (All Figures in Rs. Lacs)

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Current Ratio 2009 2010 2011 2012

A low Current Ratio implies a strained liquidity position for the company. However, FMCG companies usually do not have a high current ratio because of fast conversion of inventory into cash. Therefore the Current Ratio of Dabur is less than normal. Another reason for the low ratio is that the company follows a conservative policy and has high provisions (almost 50%

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of the liabilities) which increases the liabilities and decreases this ratio. Still a gradual increase in the ratio indicates favourable conditions for the company. 2) Quick Ratio - The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better is the position of the company. Quick Ratio =
Current ssets - Inventory Current Liabilities

Year Quick Assets Current Liabilities Quick Ratio

2009 48,333 66,410 0.72

Quick Ratio 2010 61,951 87,216 0.71

2011 2012 93,673 1,10,205 92,384 1,07,742 1.01 1.02 (All Figures in Rs. Lacs)

1.2

0.8 2009 0.6 2010 2011 0.4 2012

0.2

0 Quick Ratio

Inventory in case of Dabur forms a significant part of current Assets, hence quick ratio is low. However, the ratio has improved over the past two years, indicating that the ability of the firm to meet its short-term obligations using its quick assets has improved.

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3) Net Working Capital - It represents operating liquidity available to a business. Net working capital is calculated as: Current Assets - Current Liabilities. Net Working Capital 2010 91,795 87,216 4,579

Year Current Assets Current Liabilities Net Working Capital

2009 74,505 66,410 8,095

2011 1,39,732 92,384 47,348

2012 1,63,062 1,07,742 55,320

(All Figures in Rs. Lacs)

60,000

50,000

40,000 2009 30,000 2010 2011 20,000 2012

10,000

0 Net Working Capital

The N C shot up from a modest 4,579 in 10 to a healthy 47,348 in 11. This was mainly because the current assets of the company grew due to an increase in investments, inventory and cash balances whereas the current liabilities remained stable.

4) Inventory Turnover Ratio This ratio shows the number of times a companys inventory is turned into sales. Investment in inventory represents idle cash. The lesser the inventory, the greater the cash available for meeting operating needs. Besides, lean, fast-moving inventory runs a lower risk of obsolescence and reduces interest, insurance & storage charges. Inventory Turnover Ratio =
Cost of Goods Sold verage Inventory

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Year Cost of Goods Sold Average Inventory Inventory Turnover Ratio

2009 1,22,243 24,586 4.97

2010 1,37,393 28,008 4.90

2011 1,27,405 37,952 3.35

2012 1,48,370 46,061 3.22

(All Figures in Rs. Lacs)

4 2009 3 2010 2011 2 2012

0 Inventory Turnover Ratio

Inventory Turnover Ratio is usually high for an FMCG company. However, in the case of Dabur the company has accumulated huge amounts of inventory over the years. This has led to a gradual decrease in the ITR of the company. Such high levels of inventory strain the companys liquidity & availability of cash within a short time frame.

5) Debtor Turnover Ratio companys ability to collect from its customers in a prompt manner enhances its liquidity. The Debtor Turnover Ratio measures the efficacy of the firms credit policy and collection mechanism and shows the number of times each year the debtors turn into cash. High DTR indicates that debtors are being converted rapidly into cash and the quality of the companys portfolio of debtors is good. Debtor Turnover Ratio =
Net verage Credit Sales verage Debtors

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Year Net Avg. Credit Sales Average Debtors Debtor Turnover Ratio

2009 2,42,368 11,236 21.57

2010 2,65,206 12,142 21.84

2011 3,08,053 16,647 18.50

2012 3,51,997 21,332 16.50

(All Figures in Rs. Lacs)

25

20

15

2009 2010

10

2011 2012

0 Debtor Turnover Ratio

Although the DTR of the company has decreased over the previous years, it still was able to maintain a healthy Debtor Turnover Ratio of 16.50 in the year 2012. This indicates a favourable debtor portfolio of the company.

6) Creditor Turnover Ratio It compares creditors with the total credit purchases & signifies the credit period enjoyed by the firm in paying creditors. Accounts payable include both sundry creditors and bills payable. The Credit Turnover Ratio represents the number of days used by the firm to repay its creditors. A high creditor turnover ratio signifies that the creditors are being paid promptly. This situation enhances the credit worthiness of the company. However a very favourable ratio to this effect also shows that the business is not taking the full advantage of credit facilities allowed by the creditors. Creditor Turnover Ratio =
Net verage Credit Purchases verage Creditors

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Year Net Avg. Credit Purchases Average Creditors Creditor Turnover Ratio

2009 1,22,243 28,143 4.34

2010 1,29,818 31,522 4.11

2011 1,32,399 42,194 3.13

2012 1,37,888 53,998 2.55

(All Figures in Rs. Lacs)

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Creditor Turnover Ratio 2009 2010 2011 2012

Over the years the amount of Creditors has increased whereas the Net Purchases have remained stable. This has been a major factor contributing to the decrease in the creditor turnover ratio. lthough CTR is decreasing it is still maintained at a level which is favourable for the creditors of the company.

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Collection Period vs. Credit Period

160 140 120 100 80 60 40 20 0 2009 2010 2011 2012 Collection Period Credit Period

The collection period is less as compared to the credit period enjoyed by the company which is in favour of the company. This means that the company has managed its debtors well and the suppliers are having a high degree of faith in it, it also enjoys a good reputation with the creditors.

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Profitability Ratios
Profitability ratios measure the degree of operating success of the company. The only reason why investors are interested in a company is that they think they will earn a reasonable return in the form of capital gain and dividends on their investment. Therefore, they are keen to learn about the ability of the company to earn revenues in excess of its expenses. Failure to earn an adequate rate of profit over a period will also drain the companys cash and impair its liquidity. Some commonly used ratios to evaluate profitability are:1) Gross Profit Margin It is used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. It is also known as "gross margin".
Gross Profit Net Sales

Gross Profit Margin = Year Gross Profit Net Sales Gross Profit Margin

2009 1,13,049 2,42,368 46.64

2010 1,43,034 2,88,045 49.65

2011 2,00,656 3,28,061 61.16

2012 2,27,563 3,75,933 60.53

(All Figures in Rs. Lacs)

70 60 50 40 30 20 10 0 Gross Profit Margin 2009 2010 2011 2012

Over the years the GPM has increased for Dabur. Although, for the year 2012 the margin decreased, it is still maintained at an attractive level. Increasing gross profit margin can mean two things for the company. First, the company has a favourable pricing power. When a firm raise price due to Page 28 of 51

overwhelming demand, gross profit margin will increase. Secondly, increasing gross profit margin may mean that a firm is getting more efficient in production. When price per unit stays the same while the cost of variable unit drops, gross profit margin will increase.

2) Net Profit Margin A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors.
Net Profit Net Sales

Net Profit Margin = Year Net Profit Net Sales Net Profit Margin

2009 37,356 2,42,368 15.41

2010 43,333 2,88,045 15.04

2011 2012 47,141 46,324 3,28,061 3,75,933 14.36 12.32 (All Figures in Rs. Lacs)

18 16 14 12 10 8 6 4 2 0 Net Profit Margin 2009 2010 2011 2012

The Net Profit Margin has decreased over the years. This decreasing trend is because of an increase in the operating costs by Dabur. The firm will have to reallocate its resources & ensure efficient working so as to improve its Net Profit Margin.

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3) Return on Capital Employed It is a ratio that indicates the efficiency and profitability of a company's capital investments. By comparing net income to the sum of a company's debt and equity capital, investors can get a clear picture of how the use of leverage impacts a company's profitability. Financial analysts consider the ROCE measurement to be a more comprehensive profitability indicator because it gauges management's ability to generate earnings from a company's total pool of capital. Return on Capital Employed = Year PAT + Interest Capital Employed ROCE 2009 38,694 1,55,062 24.95
P T Interest Capital mployed

2010 43,893 1,74,346 25.17

2011 2012 48,434 47,734 2,40,791 2,84,071 20.11 16.80 (All Figures in Rs. Lacs)

30

25

20 2009 15 2010 2011 10 2012

0 ROCE

As indicated earlier the operating costs of the firm have been on a rise for the past few years. This has led to a decrease in its Net Profit of the company. Therefore, a proportionate increase in the Capital Employed has yielded a less proportionate increase in the Net Profit of the company. This has been a major reason for a decreasing ROCE.

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II. Trend Analysis

10 Year Highlights
In Rs crores
OPERATING RESULTS Net Sales Other Income EBITDA EBITDA Margins (%) Profit Before Tax (PBT) Taxes Tax Rate (%) Profit After Tax (PAT) PAT Margins (%) EQUITY SHARE DATA Earnings Per Share (Rs) Dividend Per Share (Rs) No of Shares (In Crs)

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12 5,283 80 948 18% 791 146 19% 645 12% 3.7 1.4 174.2

1,212 1,171 1,374 1,700 2,043 2,361 2,805 3,391 4,077 7 9 9 13 26 34 47 48 59 162 164 217 300 376 443 517 667 833 13% 14% 16% 18% 18% 19% 18% 20% 20% 106 124 176 257 319 384 445 601 708 14 15 19 30 39 52 54 100 139 13% 12% 11% 12% 12% 14% 12% 17% 20% 85 107 156 214 282 333 391 501 569 7% 9% 11% 13% 14% 14% 14% 15% 14% 3 1.4 28.6 3.7 2 28.6 5.4 2.5 28.6 3.7 1.8 57.3 3.3 1.4 86.3 3.9 1.5 86.4 4.5 1.8 86.5 5.8 2 86.9 3.3 1.3 174.1

(All Figures in Rs. Lacs)

Sales

Net Sales
6,000 5,000 4,000 3,000 2,000 1,000 0 FY09 FY10 FY11 FY12

Net Sales

Net sales have shown an increasing trend over the four years. Sales have increased by 88% from FY09 to FY12.

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EBITDA

EBITDA
1000 800 600 400 200 0 FY09 FY10 FY11 FY12 EBITDA 21 20 19 18 17

EBITDA Margin %

EBITDA Margin %

FY09 FY10 FY11 FY12

The EBITDA in absolute amount has increased over the four years from 517 crores to 948 crores representing a increase of 83% over four years. The EBITDA Margin, however has declined for FY12 to 18% from 20% in FY11. So, even though EBITDA has increased by 14% over the previous year, the sales have increased by 30% over the previous year due to which the EBITDA Margin has declined. EBITDA Margin remained stable from FY10 to FY11 at 20%.

Profit after Tax (PAT)

PAT
700 645 600 500 400 300 200 100 0 FY09 FY10 FY11 FY12 391 PAT 501 569

PAT has increased significantly over the years for Dabur. PAT has increased by 65% over the four year period.

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Earnings Per Share And Dividend Per Share

9 8 7 6 5 4 3 2 1 0 DPS EPS FY09 1.8 4.5 FY10 2 5.8 FY11 1.3 3.3 FY12 1.4 3.7

The above chart indicates that both EPS and DPS have not been stable for Dabur over the four year period. Also it is evident that there exists a relation between EPS and DPS, that is when the company has a higher EPS then its DPS is also higher and vice versa.

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III. Balance Sheet & Profit and Loss a/c Comparison

Horizontal Balance Sheet Comparison (2011 and 2012)
Amount Change As at March 31, 2012 As at March 31, 2011 Percentage Change

(Rs. in lacs ) Particulars I EQUITY AND LIABILITIES 1. Share holders Funds a) Share Capital b) Reserves and Surplus 2. Non-current liabilities a) Long Term borrowings b) Deferred Tax Liabilities (Net) c) Long-term provisions 3. Current Liabilities a) Short-term borrowings b) Trade payables c) Other current liabilities d) Short-term provisions Total II. ASSETS 1. Non-current assets a) Fixed Assets i) Tangible assets ii) Intangible assets iii) Capital work-in-progress iv) Intangible assets under Development b) Non-current investments c) Long-term loans and advances d) Other non-current assets 2. Current assets a) Current investments b) Inventories c) Trade receivables d) Cash and cash equivalents e) Short-term loans and advances f ) Other current assets Total

17,421 1,12,906 114 2,711 43,177 27,667 58,511 5,501 16,063 2,84,071

17,407 92,709 551 1,740 36,000 24,650 49,486 3,777 14,471 2,40,791

14 20,197 (437) 971 7,177 3,017 9,025 1,724 1,592 43,280

0% 22% -79% 56% 20% 12% 18% 46% 11% 18%

57,819 714 1,158 15,948 39,987 5,383 39,324 52,857 22,417 29,129 14,113 5,222 2,84,071

49,253 503 437 10,211 32,361 8,294 41,738 46,059 20,246 19,241 9,134 3,314 2,40,791

8,566 211 721 5,737 7,626 (2,911) (2,414) 6,798 2,171 9,888 4,979 1,908 43,280

17% 42% 165% 0% 56% 24% -35% -6% 15% 11% 51% 55% 58%

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Horizontal Balance Sheet Comparison (2010 and 2011)

31-032011 31-032010 Change % Change

SOURCES OF FUNDS Shareholders' Funds Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability (Net) Total APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation Net Block Capital work in Progess (including capital advances) Investments Current Assets, Loans and Advances Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Current Investments Total :Current Assets, Loans and Advances Less: Current Liabilities and Provisions Liabilities Provisions Total :Current Liabilities and Provisions Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Total

17,407 92,709 1,757 23,987 1,740 1,37,600

8,690 66,248 2,427 8,570 1,195 87,130

8,717 26,461 -670 15,417 545 50,470

100.31% 39.94% -27.61% 179.89% 45.61% 87,130

76,688 26,932 49,756 1,192 51,923 46,058 20,246 19,241 44,053 1,29,598 49,628 53,536 1,03,164 26,434 8,295 1,37,600

68,723 23,628 45,095 2,331 34,851 29,844 13,048 16,391 32,512 91,795 43,206 44,010 87,216 4,579 274 87,130

7,965 3,304 4,661 -1,139 17,072 16,214 7,198 2,850 11,541 37,803 6,422 9,526 15,948 21,855 8,021 50,470

11.59% 13.98% 10.34% -48.86% 48.99% 54.33% 55.17% 17.39% 35.50% 41.18% 14.86% 21.65% 18.29% 477.29% 2927.37% 57.92%

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Horizontal Balance Sheet Comparison (2009 and 2010)

31-032010 SOURCES OF FUNDS Shareholders' Funds Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans Deferred Tax Liability (Net) Total APPLICATION OF FUNDS Fixed Assets Gross Block Less : Depreciation Net Block Capital work in Progess (including capital advances) Investments Current Assets, Loans and Advances Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Current Investments Total :Current Assets, Loans and Advances Less: Current Liabilities and Provisions Liabilities Provisions Total :Current Liabilities and Provisions Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Total 31-032009

Change

% Change

8,690 66,248 2,427 8,570 1,195 87,130

8,651 65,169 1,065 13,072 695 88,652

39 1,079 1,362 -4,502 500 -1,522

0.45% 1.66% 127.89% -34.44% 71.94% -1.72%

68,723 23,628 45,095 2,331 34,851 29,844 13,048 16,391 32,512 91,795 43,206 44,010 87,216 4,579 274 87,130

51,877 21,045 30,832 5,171 43,690 26,172 11,236 14,369 22,728 74,505 33,121 33,289 66,410 8,095 864 88,652

16,846 2,583 14,263 -2,840 -8,839 3,672 1,812 2,022 9,784 17,290 10,085 10,721 20,806 -3,516 -590 -1,522

32.47% 12.27% 46.26% -54.92% -20.23% 14.03% 16.13% 14.07% 43.05% 23.21% 30.45% 32.21% 31.33% -43.43% -68.29% -1.72%

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Assets
Fixed Assets
Dabur owns fixed assets worth 59,691 lacs. Fixed assets primarily comprise of Fixed Assets Tangible assets Intangible assets Capital work-in-progress Intangible assets under Development 2011 57819 714 1158 2012 49253 503 437 -

(All Figures in Rs. Lacs)

Net Fixed Assets have increased over the 4 years. The Net Fixed Assets have increased by 94% from 31/3/2009 to 31/3/2012.Dabur has acquired 13638 lacs of fixed assets over the year, in previous the acquisition were only 9010 lacs. The acquisition majorly included- purchase of Building- 4314 lacs and Plant & Equipment 6772 lacs.

Net Fixed Assets

70,000 60,000 50,000 40,000 30,000 20,000 10,000 2012 2011 2010 2009

Net Fixed Assets

Non-Current Investments (NCI)

NCI as at 31/3/2012 for Dabur is at 15948 lacs which is 5737 lacs more when compared to previous year10211, which indicates an 56% increase in it's NCI. This increase can largely attributed to Investments in Government Securities by Dabur. These arePower Finance Corporation Rural Electrification Corporation NHAI Bonds Indian Railway Finance Corporation 2957 3855 381 1599

(All Figures in Rs. Lacs)

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Dabur has also increased Investment in subsidiaries in fully paid equity instruments in Dabur International Ltd.

Long term Loans & Advances

It comprises majorly of Advance payment of tax, the amount for advance payment of tax has increased from32361 to 39987 lacs indicating 24% increase.

Other Non-Current Assets

This includes miscellaneous expenditure. There has been a decline 2911 lacs showing a 35% decrease. The additions when compared to previous year have fallen by 92%.

Current Investments
A decline of 6% has been noted over the previous year. Fall in current investments is due to decline in Certificate of deposits, while the company has made investments in mutual funds- Principal Mutual Fund and Reliance Mutual Fund.

Inventories
Inventories has increased by 15%, this is due to the 50% increase in WIP and a 25% in stock in trade.

Trade Receivables
As on 31/3/2011-20246 As on 31/3/2012-22417 Of the unsecured debts outstanding for a period of above 6 months the ones considered good have increased by 200%. The provision for doubtful debts has remained almost the same.

Cash and Cash Equivalents

It consists of Balances with Banks, Cheques / drafts in hand and Cash-in-Hand. There has been a 50 % increase in Cash and cash equivalents which is due a 50% increase in Balances with Banks. Short-term loans and advances and Other current assets The 55 % in short term loans is due to an increase inCapital Advance - 80% Loans & Advances to Related Parties- 150% Advances to Suppliers-55%

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The 58% increase in other current assets is due to a 164% increase in interest on FD's, CD's, CP's and government bonds. Also there has been income tax refund due for 970 lacs this year. 60,000

50,000

40,000 Inventories 30,000 Sundry Debtors Cash & Bank Balances 20,000 Loans & Advances

10,000

2012 2011 2010 2009

Equity and Liabilities

Share Holders Funds
Share capital for Dabur has gone up from 17407 lacs to 17421 lacs indicating a change of 14 lacs. Dabur has issued 1377056 Employee stock options (ESOP) in equity shares in the previous year having a face value 1 Rs each.

Reserve & Surplus

Its components are Capital Reserve, Securities Premium Reserve, Investment Revaluation Reserve, ESOP Outstanding, General Reserve, Profit and Loss a/c. The reserves and Surplus has increased by 22% which is due to 87% increase in General Reserve, 114% increase in Securities Premium Reserve and a 21% increase in P&L changes.

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Long Term Borrowings

Long Term borrowings comprise of Foreign Currency Term Loans from Bank, Deferred payment Liability and Deferred Sales Tax Liabilities and the long term borrowings have reduced by 437 lacs or 79%. Dabur borrowed 551 lacs including both secured and unsecured for year ending 31 March 2011, whereas for the year ended 31 March 2012 it has fallen to 114 lacs. 140000 120000 100000 80000 60000 40000 20000 0 01/01/2009 01/01/2010 01/01/2011 01/01/2012 Capital And Reserves and Surplus Loan Funds

Long Term Provisions

Long term provisions have increased by 20% which is mainly due to Provision for Taxation increasing by 23%.

Current Liabilities
Current Liabilities have increased by 15358 or by 17%. Dabur's Current Liabilities include:

a) Short-term borrowings
These have increased due to 344% increase in Packing Credit Loan from Banks.

b) Trade payables- These have increased by 18% over the previous year. c) Other current liabilities- The Increase is due to the increase in Advance from customers and Statutory
Liabilities by 192% and 45% respectively.

d) Short-term provisions- The 11% increase is due to the increase in Gratuity payable, Liability Disputed,
Proposed Dividend and Dividend Tax.

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Income Statement Analysis

For the year ended 31 March Particulars INCOME Sales Less Returns Less: Excise Duty Net Sales Other Income Total Income EXPENDITURE: Cost of Materials Manufacturing Expenses Payments to and provisions for Employees Selling and Administrative expenses Financial Expenses Miscellaneous Expenditure Written off Depreciation Changes in inventories of FG, WIP & Stock in trade Total Expenditure Balance being Operating Net Profit before Taxation Provision for Taxation: Current Deferred Fringe Extraordinary Items Net Profit After Taxation Balance Brought Forward Provision for Taxation of earlier years written Provision for Taxation of earlier years 2,07,942 24,337 83,732 1,410 6,588 -5,933 3,18,076 63,192 11,445 934 -4,489 46,324 71,422 1,17,746 APPROPRIATIONS Interim Dividend Proposed Final Dividend 9,581 13,066 8,704 11,315 6,498 10,862 6,488 8,651 1,65,065 8,891 23,084 67,991 1,293 1,660 3,773 2,71,757 59,626 11,940 545 47,141 52,691 -19 19 99,832 1,37,393 7,618 21,234 65,706 1,349 566 3,191 2,37,057 52,703 8,966 404 43,333 42,894 -2 21 86,208 1,22,243 7,076 16,732 50,901 1,334 394 2,742 2,01,422 42,500 4,748 -255 651 37,356 32,323 72 69,607 3,79,805 3,872 3,75,933 5,335 3,81,268 3,29,536 3,099 3,26,437 4,946 3,31,383 2,87,954 2,358 2,85,596 4,164 2,89,760 2,42,368 2,752 2,39,616 4,306 2,43,922 2012 2011 2010 2009

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Final Dividend(for earlier year) Corporate Tax on Interim Dividend Corporate Tax on Proposed Dividend Excess Corporate Tax on dividend of earlier Transferred to Capital Reserve Transferred to General Reserve Balance carried over to Balance sheet

1,554 2,120 14 5,000 86,411 1,17,746

15 1,446 1,836 -40 134 5,000 71,422 99,832

1,104 1,846 207 13,000 52,691 86,208

1,103 1,470 1 9,000 42,894 69,607

EARNING PER SHARE (inRs) after consideration extraordinary items Basic Diluted EARNING PER SHARE (inRs) without consideration Basic Diluted 2.66 2.64 2.71 2.69 2.50 2.49 4.31 4.29 2.92 2.9 2.71 2.69 2.50 2.49 4.31 4.29

Sales
The sales for Dabur have been increasing over the for year period. The sales have increased by 15% over the previous year and by 57% over 4 years. The Domestic and Export sales have also increased by 14 and 29% respectively over the last year The excise duty has also been rising over the years and has been on an increasing trend. Other Income comprises of Interest Income, Dividend Income, Net gain/(loss) on sale of Current Investments and Gain on Sale of Fixed Assets. It has increased by 24% over the four years. Figures for the sales and other incomes indicate that other incomes is very less compared to the sales figure which means that the company is completely dependent on the operational activities and does not derive much income from other sources.

Expenditure
Cost of Materials - It has increased continuously gone up and has increased by 70% from 2009 to 2012. The cost of materials includes Raw Materials Consumed, Packing Materials Consumed, purchase of Finished Products and Adjustment of Stocks in process and Finished Goods. Payments to and provisions for Employees- It includes Salaries, Wages and Bonus, Contribution to Provident and Other Funds, orkmen and Staff elfare, Directors Remuneration and SOP xpenses. It has increased by 45% over the four years.

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Selling and Administrative expenses- These include many expenses which are Rent Rates Taxes Insurance Sales Tax, Freight & Forwarding Charges, Commission, Discount and Rebate and Advertising and Publicity. The expenses have gone up by 64%. Depreciation- The Depreciation expense has gone up by 140% or 3846 lacs. The total expenditure has gone up by 58%, whereas the total income has gone up by only 56%. Net Profit after Taxation- It had an increasing trend for the first three years in the last year however the total Net Profit after Taxation has decreased when compared to previous year.

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Common Size Income Statements Analysis

For the year ended 31 March 2012 INCOME Sales Less Returns Less: Excise Duty Net Sales Other Income Total Income EXPENDITURE: Cost of Materials Manufacturing Expenses Payments to and provisions for Employees Selling and Administrative expenses Financial Expenses Miscellaneous Expenditure Written off Depreciation Changes in inventories of FG, WIP & Stock in trade Total Expenditure Balance being Operating Net Profit before Taxation Provision for Taxation: Current Deferred Fringe Extraordinary Items Net Profit After Taxation Balance Brought Forward Provision for Taxation of earlier years written Provision for Taxation of earlier years APPROPRIATIONS Interim Dividend Proposed Final Dividend Final Dividend(for earlier year) Corporate Tax on Interim Dividend Corporate Tax on Proposed Dividend Excess Corporate Tax on dividend of earlier Transferred to Capital Reserve Transferred to General Reserve Balance carried over to Balance sheet 3% 3% 0% 0% 1% 0% 0% 1% 23% 3% 3% 0% 0% 1% 0% 0% 2% 22% 2% 4% 0% 0% 1% 0% 0% 5% 18% 3% 4% 0% 0% 1% 0% 0% 4% 18% 2% -2% 85% 17% 3% 0% 0% -1% 12% 19% 0% 0% 31% 55% 0% 6% 22% 0% 51% 3% 7% 21% 0% 1% 1% 0% 83% 18% 4% 0% 0% 0% 14% 16% 0% 0% 31% 83% 18% 3% 0% 0% 0% 15% 15% 0% 0% 30% 48% 3% 7% 23% 0% 0% 1% 51% 3% 7% 21% 1% 0% 1% 0% 84% 18% 2% 0% 0% 0% 16% 13% 0% 0% 29% 101% 1% 100% 1% 101% 101% 1% 100% 2% 102% 101% 1% 100% 1% 101% 101% 1% 100% 2% 102% 2011 2010 2009

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Chapter 4 Cash Flow Statement Analysis

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Cash Flow Statement

Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents Mar 12 63,192 52,012 -18,858 -23,266 9,888 19,241 29,129 Mar 11 59,626 33,861 -22,222 -8,789 2,850 16,391 19,241 (All Figures in Rs. Lacs)

The given cash flow statement is for the year ended 31-Mar-012. AS-3 deals with the cash flow statement. Disclosure of cash flow from operating activity is done through indirect method. All Accounting Policies followed by the company abide by the GAAP and thus are permissible.

Features of Cash Flow Statement

The cash flow statement shows how much cash comes in and goes out of the company over the quarter or the year, because it shows how much actual cash a company has generated, the statement of cash flows is critical to understanding a company's fundamentals. It shows how the company is able to pay for its operations and future growth. Indeed, one of the most important features you should look for in a potential investment is the company's ability to produce cash. Just because a company shows a profit on the income statement doesn't mean it cannot get into trouble later because of insufficient cash flows. A close examination of the cash flow statement can give investors a better sense of how the company will fare. Three Sections of the Cash Flow Statement Companies produce and consume cash in different ways, so the cash flow statement is divided into three sections: cash flows from operations, financing and investing. Basically, the sections on operations and financing show how the company gets its cash, while the investing section shows how the company spends its cash. - Cash Flows from Operating Activities This section shows how much cash comes from sales of the company's goods and services, less the amount of cash needed to make and sell those goods and services. Investors tend to prefer companies that produce a net positive cash flow from operating activities. High growth companies, such as technology firms, tend to show negative cash flow from operations in their formative years. At the same time, changes in cash flow from operations typically offer a preview of changes in net future income. Normally it's a good sign when it goes up. Watch out for a widening gap between a company's reported earnings and its cash flow from operating activities. If net income is much Page 46 of 51

higher than cash flow, the company may be speeding or slowing its booking of income or costs. - Cash Flows from Investing Activities This section largely reflects the amount of cash the company has spent on capital expenditures, such as new equipment or anything else that needed to keep the business going. It also includes acquisitions of other businesses and monetary investments such as money market funds. You want to see a company re-invest capital in its business by at least the rate of depreciation expenses each year. If it doesn't re-invest, it might show artificially high cash inflows in the current year which may not be sustainable. - Cash Flow from Financing Activities This section describes the goings-on of cash associated with outside financing activities. Typical sources of cash inflow would be cash raised by selling stock and bonds or by bank borrowings. Likewise, paying back a bank loan would show up as a use of cash flow, as would dividend payments and common stock repurchases.

Activity Wise Analysis

Operating Activities

All of the cash inflows of Dabur India Limited during 2012 have been contributed by operating activities indicating a strong cash position. Dabur India Limited had a net cash inflow in respect of working capital which is an indicator of efficient management of working capital by the company. Net cash from operations went up by 34 % indicating strong operational financial performance. Investing Activities

Dabur India Limited has spent huge sums on purchase of investments in its subsidiaries indicating that the companys future prospects are expected to grow. However this huge outflow of cash is met by selling investments which have matured. The company also purchased fixed assets which indicate that the company is undergoing expansion and is likely to produce higher future revenues. Financial Activities

There has been a decrease in money generated by issuance of shares as compared to last year to the extent of 50%. Dabur India Limited has had substantial net outflow in respect of payment of dividends indicating its strong cash position. However, the company indulges long term borrowings which arent required for a cash rich firm. Dividend payment has increased by 6% in the year indicating a strong desire to maintain the goodwill of the company in the market. It also shows that the company is making huge profits.

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Quality of Cash Position The information provided by the cash flow statements of Dabur India Limited appears to indicate a high quality of cash position. It has been generating cash from operating activities and utilizing this money in expanding its business and in paying dividends. Almost all cash from operations is contributed by the core operations of the firm and not by extraordinary item or WC changes. It indicates a favourable position for the firm in the present and the future.

Ability to Generate Positive Cash Flows from Operations in Future Dabur India Limited has generated cash from operations in both the years. The amount, increased this year, is 34% more than last year. Information provided by its profit and loss account establishes that almost all of the cash flow from operations in the current year is as a result of sale of finished goods. This indicates that the company has a good ability to generate cash in the future also. Given the huge amounts of money spend on expanding the business, its revenues are only expected to increase in future.

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Chapter 5 SWOT Analysis

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SWOT ANALYSIS
Strengths

Dabur India is the fourth largest company in FMCG segment with a revenue of US$ 1 Billions Dabur has its own heritage, it is more than 100 years old , established in the year 1884 It has presence in around 60 countries across the world It is the worlds largest ayurvedic medicine provider Dabur has extensive distribution service network with 50 carrying & forwarding agents Dabur has the largest distributors in its respective segment, around 5000 The top performing five master brands are Dabur, Vatika, Hajmola, Real, Fem It has 17 sophisticated manufacturing facilities The product length includes around 300 prescribed products and few of them are sold over the counter Dabur product categories include health care, personal care, foods, home care, consumer health OTC/ethical, professional range

Weaknesses

Dabur doesnt have direct company outlets Lack of awareness of products by customers Doctors prescribe allopathy medicines as they get more incentives from medical companies and the share of ayurvedic companies are less compared to allopathy According to a survey the number of registered practitioners in Ayurveda is less than 3.7 lacks which is a meagre figure compared to allopathy doctors Ayurvedic medicine takes time to cure compare to allopathy medicine Opportunities

Dabur is the worlds largest ayurvedic medicine and its export quantities are constantly in demand in foreign market The affinity towards yoga and Hinduism is proving more advantageous towards the reach of ayurvedic medicines globally People have started realizing that ayurvedic medicines like Dabur, Himalayas etc doesnt have much of side effects Growing womens earning power has made them independent and has made them to be more health and beauty conscious a segment in which Dabur too is trying to capitalise with its products Improper and unhealthy food habits due to modernization has forced people to take ayurvedic supplementary like Chavanaprash, Hajmola, and life style medicines Page 50 of 51

Ayurveda as a field is receiving much more attention across the world in the last 23 years. Thus huge opportunity for Dabur to capitalize on the market sentiments. Threats

The allopathy players are of major threat as they invest heavily on advertising and distribution of their products through medical representatives etc Some ayurvedic doctors give their own medicines or give a mixture of yurvedic Companys product without packaging (loose medicines). This reduces the sales in the market and dilutes the brand image

Since ayurvedic medicinal practise is obtained traditionally there are many untrained professions who take up the profession Lead and ferric content is more present in many ayurvedic medicine, this may sometime result in reverse side effects when consumer over longer period Kerala is an ayurvedic hub, for most of the treatments. Hence people visit directly and attend health camps to get cured.

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