Annual Report Fro Dabur India Limited
DABUR INDIA LIMITED
ANNUAL REPOR T w w w. d a b u r. c o m
Report on Corporate Governance Directors’ Report 06 Auditors’ Report 13 Financial Statements 17 Consolidated Financial Statements 18 Statements as per US GAAP 25 31
CHAIRMAN’S MESSAGE
Dear Shareholders,
BOARD OF DIRECTORS
Mr V C Burman Dr Anand Burman Mr Pradip Burman Mr Amit Burman Mr P D Narang Mr Sunil Duggal HH Maharaja Gaj Singh Mr R C Bhargava Mr P N Vijay Mr Stuart Edward Purdy Dr S Narayan Chairman Vice Chairman Director Director Director Director Director Director Director Director Director
T
oday India is at the forefront of global economic activity and investments on account of its strong economic growth and stellar corporate performance. The GDP in India has grown at 8.5 per cent, 7.2 per cent and 8.1 per cent in the last three years. The consensus among analysts is that India has gone beyond the point of inflexion and is poised for a period of sustained high growth. However, the FMCG industry had not kept pace with this overall economic growth. The period 20002004 saw low rates of growth in demand for FMCG products leading to intense competition between companies and severe pricing pressures. It has often been postulated that a few consecutive years of sustained high growth is necessary for overall economic prosperity to translate into benefits for the FMCG sector. In 2005-06, on the back of 3 consecutive years of strong economic growth, the fortunes of the FMCG industry as a whole have started to look much better. The FMCG sector will continue to gain from the fact that domestic consumption is growing both on the urban as well as the rural front. Successful businesses of the future will have to reach out to the vast semi-urban and rural markets in India. The low levels of FMCG market penetration in rural and semi-urban India coupled with improved economic conditions provide considerable scope of growth in these areas. Your company with its product mix and sales and
ANNUAL REPOR T w w w. d a b u r. c o m
Report on Corporate Governance Directors’ Report 06 Auditors’ Report 13 Financial Statements 17 Consolidated Financial Statements 18 Statements as per US GAAP 25 31
CHAIRMAN’S MESSAGE
Dear Shareholders,
BOARD OF DIRECTORS
Mr V C Burman Dr Anand Burman Mr Pradip Burman Mr Amit Burman Mr P D Narang Mr Sunil Duggal HH Maharaja Gaj Singh Mr R C Bhargava Mr P N Vijay Mr Stuart Edward Purdy Dr S Narayan Chairman Vice Chairman Director Director Director Director Director Director Director Director Director
T
oday India is at the forefront of global economic activity and investments on account of its strong economic growth and stellar corporate performance. The GDP in India has grown at 8.5 per cent, 7.2 per cent and 8.1 per cent in the last three years. The consensus among analysts is that India has gone beyond the point of inflexion and is poised for a period of sustained high growth. However, the FMCG industry had not kept pace with this overall economic growth. The period 20002004 saw low rates of growth in demand for FMCG products leading to intense competition between companies and severe pricing pressures. It has often been postulated that a few consecutive years of sustained high growth is necessary for overall economic prosperity to translate into benefits for the FMCG sector. In 2005-06, on the back of 3 consecutive years of strong economic growth, the fortunes of the FMCG industry as a whole have started to look much better. The FMCG sector will continue to gain from the fact that domestic consumption is growing both on the urban as well as the rural front. Successful businesses of the future will have to reach out to the vast semi-urban and rural markets in India. The low levels of FMCG market penetration in rural and semi-urban India coupled with improved economic conditions provide considerable scope of growth in these areas. Your company with its product mix and sales and