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gsnarayanan's review
Investment Sector: Equities Submitted by Gsnarayanan
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about 1 month ago Tags: Dabur Add Tag |
Dabur India Ltd. is one of the leading FMCG companies in India. The company has a market capital of Rs. 6,532.01 corers and is next to Hindustan Unilever Ltd,, who has a market capital of Rs 43,386.21 crores in the country. The financial health of the company is to be measured based on the combination of a number of factors, such as profitability, short-term liquidity and long term liquidity.
The key profitability ratios that reflects the business environment at present s given below;
| Return on Total Assets (ROTA) | 36.04% |
| Return on capital employed (ROCE) | 58.12% |
| Net profit margin | 15.07% |
Brief History of Dabur India:
DaburIndia Ltd. was established during the year 1975 with the name of Vishal Chemical (India) Ltd. The name was changed to Vidogum and Chemicals Ltd. During 1981 and was manufacturing high grade edible & industrial guargum powder and its sophisticated derivatives. The company was promoted as Dabur Pvt.Ltd. by Mr. S. K. Burman during 1984 at Calcutta. The company manufacture herbal and Ayurvedic medicines and cosmetics in India. The other products are Dabur Amla Hair Oil, Badur Chavanprash, Pudin Hara etc. The company also has a unit at Matsya Industrial Estate, Alwar, Rajasthan that undertakes the manufacture of edible and industrial grade guargum powder and its derivatives.
During the year 1992, dabur launched the manufacture of `Anmol', a new range of coconut oil and the development of Dab 10 an anti cancer drug namely Taxol. During the same year Dabur started Implementing a phytopharma project at Ghaziabad U.P for the manufacture a specialised anti cancer drug, Taxot apart from manufacture of chemical intermediary for cancer drug and Terfenadine a non sedative anti allergic drug.
During the year 1994 Dabur launched a few new products like`Dentacare,' Vatika and Lactonic which were well received in the market. Dabur entered in to a joint venture in technical collaboration with Shikobo Ltd., Japan to extend the range of natural gum products into speciality products by developing a facility at Alwar for manufacture of Ayurvedic Veterinary products. During the same year the company undertook to set up a project in Himachal Pradesh for manufacture of Hajmola, honey, Gulabari, Pudin Hara, Lavan Bhaskar Churna and soft gel capsules, part of the existing range of products. The Manual operations were replaced by automatic machines by installation of various balancing equipments. A reverse Osmosis plant, a concentration plant was setup for the for extraction of herbs, barks, roots, seed etc.
In the same year, 1994, Dabur extended its presence outside India by floating two companies a manufacturing unit in Egypt in the name of Dabur Egypt Ltd. and Dadur International Ltd. in BVI. The company signed a MOU with Osein International Ltd. for manufacture of biscuits, snack, foods & other products in India.
During 1995, the company started exporting products like an improved version of Chyawanprash (with more honey and less pungency) liquid form of Chyawanprash an aqueous based, hair vitalizer Melatonine etc. During this year the company launched Madhuvanni an anticough preparation. The setting up of a new unit at Baddi for manufacture of Chywanprash Janma Ghunti, Lal Tail, Dashmularishta and Ashokarishta was initiated in 1995. Semi synthetic pacitaxel and Docetaxel and various front line anti cancer drugs were being produced both for domestic as well as export market. The company proposed to double the volume of the Katni plant and introduce modern technology in processing Amla with high productivity and improved quality.
A modern air conditioned packing line was commissioned at Sahibabad for homemade brands of ethnic pastes and line juices.during 1995.
The company extended its range of real fruit juice by offering mixed fruit juice and tomato juice. Its veterinary division launched `mastilep' for curing mastitis in cattle.
Dabur India Ltd., has launched Efarelle Comfort, a natural menstrual pain reliever.
Dabur India's ayurvedic specialities division has launched plain isabgol husk under the brand name Nature Care.
The fourth Largest FMCG, Dabur India Ltd has tied with Free Markets Inc. for using leading edge technologies to execute online markets for its procurement needs.
Dabur forges alliance with Dhanwantry
Dabur launch new Herbal pill for diabetics,
During 2004
-Dabur set to acquire Egyptian hair oil brand Touch
-Dabur India gets Tetra Pak award
-Dabur India inks pact with Accenture for outsourcing
-Implements `Spend visibility solution' software provided by FreeMarkets Inc to control costs and strengthen the company's procurement process
-Dabur ties up Uttarnachal for cancer drug
Shares:
The company issued 57,00,000 equity shares of Rs 10 lakh at a premium of Rs 85 per share of which the following were reserved for allotment on a preferential basis:
(1) 2,64,000 shares to employees of the company's shareholders of group cos. (all were taken up);
(2) 5,27,000 shares to NRIs (all were taken); (3) 11,40,000 shares to Indian Financial . Institutions. (only 8,38,400) shares taken up; (4) 5,40,000 shares to FIIs (all were taken up);
(5) 6,00,000 shares to Indian Mutual Funds (all were taken up). Balance 26,29,000 shares along with 3,01,600 shares not taken up by FIIs, were issued to public.
During the year 1995, the company issued a total of 182,02,080 bonus equity shares in proportion of 4:1.
Additional 56,530 equity shares were allotted during 1996.
During the year 2000, the Company sub-divided the fully paid-up equity shares of Rs. 10 each into 10 fully paid-up equity shares of Re. 1 each.
Dabur India Ltd. allotted 16660 fully paid equity shares of Re 1 each for cash at par to the employees of the Company.
The company de-listed equity shares from ‘The Calcutta Stock Exchange Association Ltd’ (CSE) with effect from January 27, 2005,
Joint ventures:
In 1992, Dabur entered into a joint venture agreement with M/s. Guldenhorst BV Netherland to form a company for manufacture and marketing of all types of bubble gum, chewing gum, toffees, chocolate and cocoa related products, sugar based spreading creams etc. Simultaneously, Dabur Finance Ltd. Was setup to carry on the business of leasing, financing etc. followed with the amalgamation of Dabur with Vidogum.
During the year 1995 the company undertook to set up a joint venture in Bangrain of France in the names of Dabon International Pvt. Ltd. Another joint venture viz. General de Confiteria Pvt. Ltd. commenced commerical production in April 1995. 1997
The Dabur India Ltd has formed a joint venture with Osem of Israel for the production of food product in India. The joint venture named as Excelcia Food Pvt Ltd will have the Rs.15 paid up capital in which Dabur will have 60 per cent stake while Osem will have the rest 40 per cent holding in the company. But during the year 200 the Company had divested its entire 40 per cent stake in the controversial joint venture Excelcia Foods with Swiss major Nestle SA for a token amount of Rs 10.
Dabur India is negotiating with Antonio Puig of Spain, the maker of the Paco Rabanne perfume range, and Kesling of France to set up joint ventures in the country as a part of its strategy to establish a strong presence in the personal care sector.
Dabur India Ltd, Great Eastern Shipping Company Ltd and Ranbaxy Laboratories Ltd. have signed agreements with NSDL to get their securities admitted for dematerialisation at NSDL.
Dabur Industries Ltd has signed a tripartite agreement with the National Securities Depository Ltd and MCS ltd for dematerialising Dabur shares, becoming the first MCG company to avail of the facility.
During 1999 Dabur Pharmaceuticals Limited (DPL) has set up its first overseas arm in Britain with a $5 million investment commitment and is considering similar ventures in Russia as well as South African countries.
In 1999, Dabur India Ltd has entered into an agreement with its Spanish partner Agrolimen to offload its 49 per cent stake in the joint venture company General De Confiteria India Ltd in favour of an Agrolimen group company.
During the year 2000, three domestic pharma companies - Cadila Pharmaceuticals, Shantha Biotech and Dabur India have signed an agreement with the department of biotechnology (DBT) for developing and marketing basic molecules in leprosy, hepatitis and tumor disease segments.
During the year 2005, the company acquired 10,00,000 ordinary fully paid shares of 1 Pound Sterling each, belonging to Redrock Limited. With this acquisition Redrock Limited has become a wholly owned subsidiary of the Dabur India Ltd.. Redrock Limited is engaged in the business of manufacture and sale of various cosmetics, toiletries and health care products and operates from the Jebel Ali Free Trade Zone in Dubai.
Dabur India has also acquired equity in Shri Dhanwantry Educational Society
During the year 2002, RISIL assigned "CRISIL GVC LEVEL 2" rating for governance and value creation practices of the company.
In 2004, Dabur India acquired a Nigerian company African Consumer Care Ltd, a step precursor to its plans to go on-shore for manufacturing in the country. Dabur also joined hands with DLF for healthcare hub
In 2005 The company Completed the acquisition process of Balsara Hygiene Products Ltd & Besta Cosmetics Ltd on April 16, 2005.
| Growth of Dabur India | |||||
| Year | 2007/03 | 2006/03 | 2005/03 | 2004/03 | 2003/03 |
| Sales | 1,745.14 | 1,345.50 | 1,231.10 | 1,086.48 | 1,162.93 |
| Var % | 29.70 | 9.29 | 13.31 | -6.57 |
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| Profit After Tax | 252.08 | 189.08 | 148.02 | 101.15 | 84.91 |
| Var % | 33.32 | 27.74 | 46.34 | 19.13 |
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Profit earned by the company after payment of Tax is shown below:
| Year | 2007/03 | 2006/03 | 2005/03 | 2004/03 | 2003/03 |
| Profit After Tax | 252.08 | 189.08 | 148.02 | 101.15 | 84.91 |
It may be seen from the above chart, Dabur is trading at the lowest price now and is a suitable time to enter and make profits depending.
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