Académique Documents
Professionnel Documents
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V/s
Presented By,
Tejas Patil 15-M-502
Sagar M Shah 15-M-522
Shraddha Shinde 15-M-530
Kavita Sundakar 15-M-537
Mitesh Tank 15-M-538
Sankil Pandya 14-M-505
Overview
• Introduction
• Growth rates
• Ratio Analysis
• Comparison of costs
• Management decisions
About Dabur
Dabur
Dabur India Ltd ended Q2 of 2017-18 financial year with a
Consolidated Revenue of Rs 1,958.9 Crore as against Rs
1,981.6 Crore a year earlier.
Dividend
The Board of Directors of Dabur India Ltd declared an interim
dividend of 125% for 2017-18. “Continuing with their payout
policy, the Board has declared an interim dividend of Re 1.25
per share, aggregating to a total payout of Rs 265.02 Crore,
including tax”
Growth Rates
Marico
FMCG major Marico reported an in-line net profit for
September quarter at Rs 185.04 crore.
Dividend
The company also declared dividend at Rs.1.75 per equity
share of Re. 1 each, being 175% on the paid-up equity share
capital of Rs. 129.07 crore. The payment date for the said
interim dividend shall be November 29, 2017.
Balance sheet – Mar-17
------------------- Dabur India Marico
in Rs. Cr. ---------
Mar '17 Mar '17
Balance Sheet ----------
Dabur India Marico Application Of Funds
Gross Block 1,450.61 618.08
Less: Accum. Depreciation 508.63 122.59
Mar '17 Mar '17 Net Block 941.98 495.49
Capital Work in Progress 51.35 23.86
Sources Of Funds Investments 3,054.15 1,664.25
Inventories 599.27 1,082.96
Total Share Capital 176.15 129.05 Sundry Debtors 333.25 227.61
Equity Share Capital 176.15 129.05 Cash and Bank Balance 26.16 68.53
Total Current Assets 958.68 1,379.10
Share Application Money 0 0 Loans and Advances 181.44 161.57
Fixed Deposits 0 0
Preference Share Capital 0 0 Total CA, Loans & Advances 1,140.12 1,540.67
Deffered Credit 0 0
Reserves 3,481.73 2,795.19 Current Liabilities 1,161.44 635.69
Revaluation Reserves 0 0 Provisions 112.03 63.93
Networth 3,657.88 2,924.24 Total CL & Provisions 1,273.47 699.62
Net Current Assets -133.35 841.05
Secured Loans 209.82 108.35 Miscellaneous Expenses 0 0
Unsecured Loans 74.68 0 Total Assets 3,914.13 3,024.65
Total Debt 284.5 108.35
Contingent Liabilities 1,214.56 261.47
Total Liabilities 3,942.38 3,032.59 Book Value (Rs) 20.77 22.66
Profit & Loss –Mar-17
-------------------
Dabur India Marico
in Rs. Cr. -------
Profit & Loss account ------------
Dabur India Marico Mar '17 Mar '17
Fixed Assets Higher Fixed Asset ratio of Marico Indicates its ability to
Sales/ Net FA 5.70 9.83
TO Ratio generate earnings much better than Dabur.
PBIT *100/ The ROI of both indicates, for every 1 Re. of Shareholder, Rs.
35.401 39.052
ROI Capital 35.40/- and Rs. 39.05/- revenue is generated by Dabur and
9 9
Employed Marico respectively.
(PAT- Pref
Earning Per
Dividend)/ No. 5.67 6.53 Marico generates higher earnings compared to Dabur
Share
of Shares
Sources Of Funds
3658
4000 3482
3500
2795 2924
3000
2500
Dabur India Mar '17
2000
Marico Mar '17
1500
1000
176 129
500
0
Share Capital Reserves Networth
200
150 108 108 Dabur India Mar '17
Marico Mar '17
100 75
50 0
0
Secured Unsecured Total Debt
Loans Loans
2,500
2,000 1,664
1,379 Dabur India Mar '17
1,500
1,083 Marico Mar '17
959
1,000 599
333
500 228
26 69
0
Investments Inventories Sundry Cash and Total
Debtors Bank Current
Balance Assets
1,400 1,273
1,161 Total CL & Provisions
1,200
1,000
700
1) Total current Assets – Total CA,
800 636
Dabur India Mar '17 loans & advances = loans and
600
400
Marico Mar '17 advances
200
112 64 * Total CL & provisions of Dabur
0 are more than Marico by 573 Crore
Current Provisions Total CL &
Liabilities Provisions
Net Current Assets
1,541
1,600
1,273
1,400 1,140
1,200
1,000 841
800 700
Dabur India Mar '17
400
200 -133
0
-200 Total CA, Total CL & Net Current
Loans & Provisions Assets
Advances
2,000
1) Raw Material of Dabur is
Dabur India Mar '17
more than Marico by 247
1,500
Marico Mar '17 Crore
1,000
500 49 26
2) Power and fuel of Dabur is
0 more than Marico by 22 Crore
Raw Materials Power & Fuel
Cost
659
700 507 464
600 425 Non- Manufacturing cost
418
500
400 251 1)Employee cost of Dabur is more than
300
200 Marico by 174 Crore
100 Dabur India Mar '17
0
Marico Mar '17 2) Selling and Admin Expenses of Dabur are
less than Marico by 241 Crore
2,000
1,111
957 998
1,000
843
6 7
0
Total Income Total Operating Reported Net Earning Per
Expenses Profit Profit Share (Rs)
We reach to 6mn
Outlets Factory Factory
C&F C&F
Wholesaler
Sub Sockist
Product Focus
• Rural Focused Product Mix
• Innovative launches in Urban
Capability enhancement through training and IT
enablement
Strong Distribution Network (India)
• Indirect Reach: 4.6 million outlets out of 9.2 million outlets – Huge Headroom for
growth
• Direct Reach: Over 853,000 outlets - Initiatives in place to increase the reach
– Project ONE – Targeting direct coverage increase in top 20 towns
(Incremental Turnover ~INR circa 88 crores in FY 2017)
– Leveraged technology coupled with robust IT Infrastructure to drive impact
• Channel Split : Modern Trade has outpaced the other channels. E-commerce is still
small with a strong growth potential.
• Urban – Rural Split : Rural sales up from 26% in FY10 to 31% in FY17
Share of Business
Urban 69%
Rural 31%
Dabur v/s Marico
Dabur & Marico share almost equal sales in personal care & hair oil
category.
So competitive strategy should be there by Dabur to increase the sales
from this category than Marico.
Product mix competitiveness
• Marico’s Nihar Shanti Amla market share by value to 26.3% in fiscal 2016
from 23.7% at end of previous fiscal year. Dabur’s Amla hair oil and
Dabur Amla Sarso hair oil has lost five percentage points in the amla hair
oil category from 65.1% in fiscal 2015 to 60.1% in fiscal 2016.
Management Decision
• Dabur Can decide to compete against Marico considering the comparison and
parameters discussed.
• Dabur needs to reduce the Number of Non performing Employees which inturn
will improve Employee Turnover ratio and Productivity of each employee.
• Dabur has effectively managed and controlled inventory levels by maintaining
inventory of 52 days Versus Marico’s 100 days.
• Dabur has Higher Fixed Assets compared to Marico but the earnings are less, it
needs to identify the NPA’s and scrap them.
• Reduction in Inventory cost and Employment cost, will help improve the Gross
Profit Ratio. It indicates the amount gross revenue utilized for cost of goods sold
where Dabur can improve.
• The ROI of both indicates, for every 1 Re. of Shareholder, Rs. 35.40/- and Rs.
39.05/- revenue is generated by Dabur and Marico respectively, this can be
improved and will have direct impact through above decisions.
• Both companies are at par with each other on Debt to Equity Ratio, incase of
solvency there wont be hardship to pay off debts. Dabur and Marico both have
marginal difference and are negligible
REFERENCES
• http://www.livemint.com/Companies/Nh9pZN3ikwgfmmtQGd4edO/Dabu
r-takes-on-Marico-in-coconut-hair-oil-segment.html
• https://www.slideshare.net/SushmitaSaxena1/dabur-product-mix
• https://www.goodreturns.in/company/marico/product-mix.html
• https://www.goodreturns.in/company/dabur-india/product-mix.html
• http://www.moneycontrol.com/competition/daburindia/comparison/DI
• http://www.dabur.com/
• http://marico.com/
Thank You