Tag: Honey

  • Mamaearth rolls out new campaign “#IssWinterGlowNaturally” with Shilpa Shetty Kundra

    Mamaearth rolls out new campaign “#IssWinterGlowNaturally” with Shilpa Shetty Kundra

    Mumbai: Mamaearth has launched its latest integrated marketing campaign, “#IssWinterGlowNaturally,” featuring Shilpa Shetty Kundra.

    The campaign film was created by Mamaearth’s internal creative team and produced by Estoot.

    The campaign film highlights the brand ideology of bringing the wisdom and goodness of household DIY recipes into easy-to-use formats with the same goodness of natural ingredients without any toxins. What’s the most frequently used recipe in Indian households for dry and dull winter skin? Of course, it’s honey and malai.

    The film opens with Shilpa Shetty Kundra walking into her friend’s house and unfolding a scenario that leaves her intrigued and confused. To help her friend with a trusted natural solution without all this ‘chip chip’ and ‘jhanjhat’, Shilpa recommends Mamaearth Honey Malai Cold Cream. Crafted with the goodness of natural ingredients like ‘honey’ and ‘malai,’ the cold cream is toxin-free and made safe certified. She is positioning Mamaearth Honey Malai as an easier way of giving one’s skin the moisturization and nourishment it needs this winter.

    The film is a simple yet powerful representation of the brand’s philosophy and product proposition of “goodness inside.”

    Talking about the campaign, Mamaearth co-founder and chief information officer Ghazal Alagh said, “With the growing awareness of the benefits of traditional ingredients and recipes, millennials are increasingly looking for products with natural ingredients that are safe. Mamaearth has been striving to bring together nature’s goodness with science and create a product portfolio inspired by our grandmother’s kitchen recipes and filled with goodness inside. Honey and malai are very common ingredients that we have seen at home for ages; hence, we decided to launch this range and present to our consumers a product that provides the goodness of these ingredients hassle-free. Through this film, we have tried to highlight the latest proposition and offering, and we are certain it will resonate with the millennials, and they will choose nature’s goodness with Mamaearth’s Honey Malai range.”

    “I have always strongly believed in traditional homemade tricks and age-old self-care hacks. One of the reasons for partnering with Mamaearth was their strong foundation in keeping the ethos of Ayurveda alive with ancient recipes innovating and catering to modern consumers today. With the Mamaearth Honey Malai Cold Cream, the brand reiterates its belief in the goodness of nature, not just in caring for your skin but also Mother Earth, and I hope the consumers relate to the film and choose Mamaearth goodness as I did,” says Shilpa Shetty Kundra.

    Estoot founder Navkiran Brar added, “This campaign showcases our shared creative ethos: simple stories that are clutter-breaking. By mixing humour with traditional wisdom – like Honey Malai for dry winter skin – we’ve created an honest communication piece that will resonate with viewers of all ages.”

  • Honeygate: A sweet tale turns bitter for brands

    Honeygate: A sweet tale turns bitter for brands

    KOLKATA: Honey is one of the most loved home remedies or immunity booster in Indian households. With the onset of Covid2019, the sweet miracle has attracted more Indian consumers, even global buyers. But a plot-twist has changed the narrative, as top brands in the category are allegedly adulterating the product with the addition of sugar syrup.

    An investigation by the Centre for Science and Environment (CSE) has found that leading brands sell honey which doesn’t meet purity standards. Dabur, Patanjali, Apis Himalaya, Baidyanath, Zandu failed to clear the Nuclear Magnetic Resonance Spectroscopy (NMR) test. What’s more concerning is the fact that the business of adulteration has evolved to hoodwink stipulated Indian tests.

    “The honey category stands stirred and shaken. Sugar syrup is sure an adulterant. The next time a consumer reaches out for a jar of honey, there is going to be suspicion around. And rightly so. The brand equity of the category is stirred,” Harish Bijoor Consults Inc. brand guru and founder Harish Bijoor said.

    Will brand reputation and business suffer?

    As the brand reputation of honey is based on health benefits, the controversy is not going to bode well for manufacturers. Brand consultant Shubho Sengupta stated that the category is very close to Indian families, unlike new age brands. Certainly, the consumers will be disappointed, thereby impacting the brand equity. Consumers might look at it as “tampering with Indian tradition,” remarked Sengupta adding that there are many emotions at play. However, it is hard to make out what would be the impact on sales.

    Business strategist Lloyd Mathias echoed the sentiment, and noted that the addition of sugar syrup is damning, because consumers buy honey for its health benefits and some of the prominent brands like Dabur, Jandu, Patanjali being on the list is disheartening.

    “Honey, as an overarching category, promises purity. If that purity comes under question, then it is a huge blow on the brands that are failing the test. Today, a lot of consumers must be thinking about what they are buying. It impacts large brands very badly. Last time when something like this happened, brands like Pepsi, Maggie had a tough time coming back,” pointed out Naresh Gupta, co-founder & chief strategy officer at Bang In The Middle. He added that food is a very high involvement category and consumers will not be quiet if they found anything wrong with what they consume.

    Will this cause a long-term impact?

    However, Alchemist Brand Solutions founder and managing partner Samit Sinha differed slightly. He went on to explain that many of these brands have a wide portfolio and honey is not their flagship product and not even the biggest contributor to their revenues. Moreover, the brands in the rejected list are very large, established, and riding on strong momentum. Hence, they have the ability to ride out the storm.

    Moreover, a lot of developments happen but they are restricted to the intellectual community, and it is not certain if this one will actually reach the target consumer – the middle-class Indian housewives, he noted.

    “Our expectations on substantiating claims and superior products have been historically far-fetched and the attitude on the ground has been more like 'adjust karlenge'.  Also, the impact on the category will be short-term as the consumer mindset is like 'aisa toh sab karte hain' (everyone does this), so it is a possibility that people will get over it,” Sinha added.

    Mathias, too, held the view that while the report may cause a bit of a hub-bub now, public memory is short-lived. But if these brands don’t go and correct themselves, they will continue to lose in terms of consumers’ faith.

    “The only good thing is the brands will hopefully address the issue and will make sure they are not adulterating natural honey,” he said. Sinha’s also optimistic that one good thing that will emerge from the incident is that the brands will no longer sell fabricated products but superior products.

    However, after a huge face loss, the brands have started defending themselves. According to Gupta, these companies cannot debunk the claim just by releasing an ad saying “I am pure,” because the whole report has been covered widely across media. They will have to put their money where their mouth is to win back the consumers’ trust.

    While the experts agree that CSE is a reputed organisation which has carried similar movements in the past, Sengupta mentioned that consumers will, unfortunately, believe the brands’ claims because brands like Dabur will spend huge to kind of own the narrative. Very few consumers will care about an NGO report unless the competitors promote it.

    Will it help the brands that passed the test?

    You can count on one hand the number of brands that passed the quality test, among them being – Marico’s Saffola Honey, Markfed Sohna and Nature's Nectar. These products will jump in to maximise the impact, acknowledged Sengupta. Mathias concurred, adding that it is a positive endorsement for those brands. “Those two-three brands will be preferred hugely and they might come up with campaigns. That will bring a systematic change in the category. It’s a category dominated by heritage players for a very long period but suddenly the category will change,” Gupta commented.

    Saffola lost no time in tooting its horn and advertising the fact that it “has launched the best quality honey in its purest form” in India.

    “Every batch of Saffola Honey is tested using NMR (Nuclear Magnetic Resonance) technology, which is one of the most advanced tests in the world, in the best in class laboratories to ensure that it is 100 per cent pure, free from added sugars and free from any form of adulteration. Saffola Honey is produced at a USFDA registered plant with state-of-the-art technology ensuring robust quality checks and controls. Saffola Honey is also compliant with each of the quality parameters mandated by FSSAI,” a Marico spokesperson said.

    Right now, the biggest brands producing honey are like the magician whose best trick has been suddenly exposed for what it is – a sleight of hand. It will be interesting to see how the magic syrup makes its comeback.

  • Top honey brands fail international quality test

    Top honey brands fail international quality test

    KOLKATA: Among top honey brands in India, majority have failed to make it through a stringent quality test. According to the Centre for Science and Environment (CSE), brands including Dabur, Patanjali, Emami have flunked the Nuclear Magnetic Resonance (NMR) test that was carried out at a lab in Germany, bringing focus on the adulteration of packaged honey in Indian markets.

    Food researchers at CSE selected 13 top brands and some smaller brands that sell processed and raw honey in India to check their purity. The researchers found that 77 per cent of the samples were adulterated with sugar syrup. Out of the 22 samples that were checked, only five passed all the tests.  

    Marico’s Saffola Honey has cleared the litmus along with two other brands – Markfed Sohna and Nature's Nectar. However, Dabur has already countered saying its honey has passed NMR test. For the record, the NMR test is required only for exporting honey, and not for local marketing in India.

    After the report was released, Dabur has categorically stated that its honey is not adulterated with sugar syrup. “Dabur is the only company in India to have an NMR testing equipment in our own laboratory, and the same is used to regularly test our honey being sold in the Indian market. This is to ensure that Dabur Honey is 100 per cent pure without any adulteration,” it said in a statement.

    On the other hand, Patanjali Ayurved MD Acharya Balkrishna claimed that the CSE report is an attempt to downplay Indian honey and promote German technology. An Emami spokesperson also said that its Zandu Pure Honey conforms to all the protocols during production and adheres to quality norms and standards.

    “It is a food fraud more nefarious and sophisticated than what we found in our 2003 and 2006 investigations into soft drinks; more damaging to our health than perhaps anything that we have found till now – keeping in mind the fact that we are still fighting against a killer Covid2019 pandemic with our backs to the wall. This overuse of sugar in our diet will make it worse," Centre for Science and Environment (CSE) director general Sunita Narain said.

  • Sony YAY! toons Honey and Bunny meet the members of Girgaum Chowpatty Laughter Club!

    Sony YAY! toons Honey and Bunny meet the members of Girgaum Chowpatty Laughter Club!

    They say life is better when you’re laughing. And this year, Sony YAY! characters and our favorite cats Honey and Bunny, with all their masti, made people laugh out louder than ever! Honey and Bunny visited the members of ‘Essence of Laughter Club’ at Girgaum Chowpatty and shared innumerable laughs and chuckles while exercising with them and seamlessly mixing into their laughter activity for the day, spreading the message that happiness is a way of life. The members were seen enjoying the special surprise visit and were then seen indulging in a photo session with the toons as well. ​​​​​

  • Dabur ad spends subdued in fiscal 2017

    Dabur ad spends subdued in fiscal 2017

    BENGALURU: Indian FMCG major Dabur India Limited (Dabur) had opened this fiscal with the lowest advertising and publicity expenses (ASP) in the first quarter (Q1-17, quarter ended 30 June 2016, previous quarter) in four years. The trend continued in the current quarter (Q2-17, quarter ended 30 September 2016, current quarter) with the company spending the least amount towards ASP during a 16-quarter period starting Q3-14 as Indiantelevision.com has been tracking the trend.

    Dabur spent 9.8 percent less year on year (y-o-y) in the current quarter, and 24 per cent less quarter-over-quarter (q-o-q) towards ASP. ASP in Q2-17 was Rs 149.41 crore (7.5 percent of Total Income from Operations or TIO) as compared to Rs 165.72 crore (8.5 percent of TIO) in Q2-16 and Rs 196.52 crore in the immediate trailing quarter.

    In Q1-14, Q1-15, Q1-16, the company began the year with ASP of Rs 254.22 crore (15.4 percent of TIO), Rs 286.27 crore (15.3 percent of TIO) and Rs 330.61 crore (16 percent of TIO), respectively.

    About 63 percent of Dabur’s revenues are from domestic FMCG sales, while 34 percent are international sales. Dabur’s domestic FMCG business reported growth of 2.4 percent driven by volume growth of 4.5 percent. International business declined by 2.3 percent basis IND AS (Indian Accounting System).

    “The overall business environment continued to be challenging with consumer demand remaining slack in India, while overseas geographies like the Middle East and Africa hit by worsening geopolitical situation. We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended Q2 of 2016-17 with a volume growth of 4.5 percent,” Dabur CEO Sunil Duggal said.

    “The medium to long-term prospects, particularly for India, remain robust and we are optimistic that domestic consumer demand would gain pace in months to come, riding on good Monsoons and a slew of government initiatives announced recently. We are confident that our focused strategy and positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth. We have lined up a flurry of many exciting initiatives and are committed to aggressively launch new products leveraging on our Ayurvedic heritage and cutting edge science,” Duggal added.

    public://Dabur-graph.jpg

    Trends

    The company’s ASP in Q3-2016 at Rs 350.01 crore  (16.5 per cent of TIO) was  the highest in terms of actual rupee spends as well as in terms of percentage of TIO during the sixteen quarter period under consideration in this report. As mentioned above, in the previous fiscal, in Q1-2016, the company had spent Rs 330.61 crore (16 percent of TIO) towards ASP, which is the second highest ASP in absolute rupees and in terms of percentage of TIO during the period under consideration.

    Also, over the 16 quarter period under consideration, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear declining trend.  Please refer to Fig1 above which indicates that ASP in terms of percentage of TIO follows a linearly declining zigzag line, with peaks in Q1 (school holiday period) and Q3 (festival season in the country) and valleys in Q2 and Q4 of a financial year. This fiscal, for a change, Q1-7 ASP was lower than spends in Q4-16.

    The company says in its earnings release that it braved strong headwinds in the form of a persistent listless demand environment in key consumer products categories and geopolitical disturbances in the overseas markets during Q2-17.It says that its continued focus on leveraging the science-based Ayurveda heritage, coupled with commodity tailwinds, helped Dabur end Q2-17 with a 1 percent growth in consolidated revenue at Rs 1,975.7 crore as compared to consolidated revenue for Q2-16 which stood at Rs 1,955.3 crore. Consolidated net Profit for the Q2-17 marked a 5 percent growth at Rs 357.3 crore, up from Rs 340.2 crore during corresponding year ago quarter.

    Dabur’s products

    Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin Hara Fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine Marks; Toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem Natural Fairness, Gold Bleach, Gulabari; Homecare brands such as Odomos, Odonil and Sanifresh; Food brands such as Real and Real Active.

    Notes:

    (1.0)    Dabur has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.

    (1.1)    All numbers are consolidated unless stated above.

    (2.0) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

     

  • Dabur ad spends subdued in fiscal 2017

    Dabur ad spends subdued in fiscal 2017

    BENGALURU: Indian FMCG major Dabur India Limited (Dabur) had opened this fiscal with the lowest advertising and publicity expenses (ASP) in the first quarter (Q1-17, quarter ended 30 June 2016, previous quarter) in four years. The trend continued in the current quarter (Q2-17, quarter ended 30 September 2016, current quarter) with the company spending the least amount towards ASP during a 16-quarter period starting Q3-14 as Indiantelevision.com has been tracking the trend.

    Dabur spent 9.8 percent less year on year (y-o-y) in the current quarter, and 24 per cent less quarter-over-quarter (q-o-q) towards ASP. ASP in Q2-17 was Rs 149.41 crore (7.5 percent of Total Income from Operations or TIO) as compared to Rs 165.72 crore (8.5 percent of TIO) in Q2-16 and Rs 196.52 crore in the immediate trailing quarter.

    In Q1-14, Q1-15, Q1-16, the company began the year with ASP of Rs 254.22 crore (15.4 percent of TIO), Rs 286.27 crore (15.3 percent of TIO) and Rs 330.61 crore (16 percent of TIO), respectively.

    About 63 percent of Dabur’s revenues are from domestic FMCG sales, while 34 percent are international sales. Dabur’s domestic FMCG business reported growth of 2.4 percent driven by volume growth of 4.5 percent. International business declined by 2.3 percent basis IND AS (Indian Accounting System).

    “The overall business environment continued to be challenging with consumer demand remaining slack in India, while overseas geographies like the Middle East and Africa hit by worsening geopolitical situation. We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended Q2 of 2016-17 with a volume growth of 4.5 percent,” Dabur CEO Sunil Duggal said.

    “The medium to long-term prospects, particularly for India, remain robust and we are optimistic that domestic consumer demand would gain pace in months to come, riding on good Monsoons and a slew of government initiatives announced recently. We are confident that our focused strategy and positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth. We have lined up a flurry of many exciting initiatives and are committed to aggressively launch new products leveraging on our Ayurvedic heritage and cutting edge science,” Duggal added.

    public://Dabur-graph.jpg

    Trends

    The company’s ASP in Q3-2016 at Rs 350.01 crore  (16.5 per cent of TIO) was  the highest in terms of actual rupee spends as well as in terms of percentage of TIO during the sixteen quarter period under consideration in this report. As mentioned above, in the previous fiscal, in Q1-2016, the company had spent Rs 330.61 crore (16 percent of TIO) towards ASP, which is the second highest ASP in absolute rupees and in terms of percentage of TIO during the period under consideration.

    Also, over the 16 quarter period under consideration, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear declining trend.  Please refer to Fig1 above which indicates that ASP in terms of percentage of TIO follows a linearly declining zigzag line, with peaks in Q1 (school holiday period) and Q3 (festival season in the country) and valleys in Q2 and Q4 of a financial year. This fiscal, for a change, Q1-7 ASP was lower than spends in Q4-16.

    The company says in its earnings release that it braved strong headwinds in the form of a persistent listless demand environment in key consumer products categories and geopolitical disturbances in the overseas markets during Q2-17.It says that its continued focus on leveraging the science-based Ayurveda heritage, coupled with commodity tailwinds, helped Dabur end Q2-17 with a 1 percent growth in consolidated revenue at Rs 1,975.7 crore as compared to consolidated revenue for Q2-16 which stood at Rs 1,955.3 crore. Consolidated net Profit for the Q2-17 marked a 5 percent growth at Rs 357.3 crore, up from Rs 340.2 crore during corresponding year ago quarter.

    Dabur’s products

    Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin Hara Fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine Marks; Toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem Natural Fairness, Gold Bleach, Gulabari; Homecare brands such as Odomos, Odonil and Sanifresh; Food brands such as Real and Real Active.

    Notes:

    (1.0)    Dabur has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.

    (1.1)    All numbers are consolidated unless stated above.

    (2.0) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

     

  • Q3-2016: Dabur marketing spends up 9.6% at Rs 350 crore

    Q3-2016: Dabur marketing spends up 9.6% at Rs 350 crore

    BENGALURU: Dabur India Limited spent 9.6 per cent more year on year (YoY) towards advertising and publicity expenses (ASP) in the quarter ended 31 December, 2015 (Q3-2016, current quarter) at Rs 350.01 crore (16.5 per cent of Consolidated Net Sales or Total Income from Operations or TIO) as compared to Rs 319.38 crore (15.4 per cent of TIO) and 25.7 per cent more quarter-on quarter (QoQ) than the Rs 278.42 crore (13.3 per cent of TIO).

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    All numbers are consolidated unless stated otherwise

    Dabur’s products

    Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin Hara Fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine Marks; toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem Natural Fairness, Gold Bleach, Gulabari; homecare brands such as Odomos, Odonil and Sanifresh; food brands such as Real and Real Active.

    “The macroeconomic environment continues to be challenging and we faced several headwinds in the form of geo-political disturbances in key geographies in the Middle East and delayed winters in India. The ongoing political unrest in Nepal and blockade of the India-Nepal border severely impacted Dabur’s Foods business. However, we have taken steps to mitigate the impact by ramping up the production of juices in Sri Lanka and India to cater to our demand requirement, and are hopeful of reporting normal growths going forward,” said Dabur India CEO Sunil Duggal.

    “The overall demand environment remained tepid in the third quarter with some key segments showing deceleration while competitive intensity was at a high. We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges. Despite a sharp fall in growth rates in most consumer products segments, Dabur continues to focus on brand-building and market expansion programmes that will pave the ground for future growth. Going forward, we will continue to pursue an aggressive growth strategy,” concluded Duggal.

    Trends

    The company’s ASP in Q3-2016 at Rs 350.01 crore (16.5 per cent of TIO) in the current quarter was the highest in terms of actual rupee spends as well as in terms of percentage of TIO during the 13 quarter period starting Q3-2013 until Q3-2016. In the current fiscal, in Q1-2016, the company had spent Rs 330.61 crore (16 per cent of TIO) towards ASP, which is the second highest ASP in absolute rupees and in terms of percentage of TIO during the period under consideration. It must be noted that in 9M-2016 (nine month period ended 31 December, 2016) the company’s ASP has already exceeded the total ASP in FY-2014. In 9M-2016, ASP was Rs 921.77 crore, while in FY-2014, it was Rs 913.92 crore.

    Also, over the 13 quarter period under consideration, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear increasing trend.

    Please refer to Fig 1 below, which indicates that ASP in terms of percentage of TIO follows a linearly increasing zigzag line, with peaks in Q1 (school holiday period) and Q3 (festival season in the country) and valleys in Q2 and Q4 of a financial year. This has been further substantiated by the company’s ASP in Q3-2016.

    Dabur’s TIO for the current quarter marked 2.1 per cent YoY growth at Rs 2,127.00 crore as compared to Rs 2079.02 crore and 1.3 per cent higher QoQ as compared to Rs 2,096.23 crore. The company’s TIO shows a linear increasing trend during the twelve quarter period under consideration in this report.

    Consolidated Net Profit for Q3-2016 reported a 12.6 per cent YoY jump to Rs 318.54 crore (15 per cent of TIO) as compared to Rs 282.78 crore (13.6 per cent of TIO) but was 6.6 per cent lower QoQ than Rs 341.1 crore (16.3 per cent margin). PAT in absolute rupees as well as in terms of percentage of TIO show linear increasing trends during the period under consideration in this report.

    Category Growths

    Dabur says that its oral care business led by Dabur Red Paste and Meswak, continued to grow ahead of the industry. The Skin Care business reported a near 10 per cent growth during the quarter, while the Home Care business grew by over eight per cent. The Over-The-Counter (OTC) & Ethicals category ended the third quarter of 2015-16 fiscal with a near eight per cent growth. The International Business Division for Dabur reported a 14.8 per cent growth during the third quarter of 2015-16.

  • Q3-2016: Dabur marketing spends up 9.6% at Rs 350 crore

    Q3-2016: Dabur marketing spends up 9.6% at Rs 350 crore

    BENGALURU: Dabur India Limited spent 9.6 per cent more year on year (YoY) towards advertising and publicity expenses (ASP) in the quarter ended 31 December, 2015 (Q3-2016, current quarter) at Rs 350.01 crore (16.5 per cent of Consolidated Net Sales or Total Income from Operations or TIO) as compared to Rs 319.38 crore (15.4 per cent of TIO) and 25.7 per cent more quarter-on quarter (QoQ) than the Rs 278.42 crore (13.3 per cent of TIO).

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    All numbers are consolidated unless stated otherwise

    Dabur’s products

    Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin Hara Fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine Marks; toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem Natural Fairness, Gold Bleach, Gulabari; homecare brands such as Odomos, Odonil and Sanifresh; food brands such as Real and Real Active.

    “The macroeconomic environment continues to be challenging and we faced several headwinds in the form of geo-political disturbances in key geographies in the Middle East and delayed winters in India. The ongoing political unrest in Nepal and blockade of the India-Nepal border severely impacted Dabur’s Foods business. However, we have taken steps to mitigate the impact by ramping up the production of juices in Sri Lanka and India to cater to our demand requirement, and are hopeful of reporting normal growths going forward,” said Dabur India CEO Sunil Duggal.

    “The overall demand environment remained tepid in the third quarter with some key segments showing deceleration while competitive intensity was at a high. We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges. Despite a sharp fall in growth rates in most consumer products segments, Dabur continues to focus on brand-building and market expansion programmes that will pave the ground for future growth. Going forward, we will continue to pursue an aggressive growth strategy,” concluded Duggal.

    Trends

    The company’s ASP in Q3-2016 at Rs 350.01 crore (16.5 per cent of TIO) in the current quarter was the highest in terms of actual rupee spends as well as in terms of percentage of TIO during the 13 quarter period starting Q3-2013 until Q3-2016. In the current fiscal, in Q1-2016, the company had spent Rs 330.61 crore (16 per cent of TIO) towards ASP, which is the second highest ASP in absolute rupees and in terms of percentage of TIO during the period under consideration. It must be noted that in 9M-2016 (nine month period ended 31 December, 2016) the company’s ASP has already exceeded the total ASP in FY-2014. In 9M-2016, ASP was Rs 921.77 crore, while in FY-2014, it was Rs 913.92 crore.

    Also, over the 13 quarter period under consideration, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear increasing trend.

    Please refer to Fig 1 below, which indicates that ASP in terms of percentage of TIO follows a linearly increasing zigzag line, with peaks in Q1 (school holiday period) and Q3 (festival season in the country) and valleys in Q2 and Q4 of a financial year. This has been further substantiated by the company’s ASP in Q3-2016.

    Dabur’s TIO for the current quarter marked 2.1 per cent YoY growth at Rs 2,127.00 crore as compared to Rs 2079.02 crore and 1.3 per cent higher QoQ as compared to Rs 2,096.23 crore. The company’s TIO shows a linear increasing trend during the twelve quarter period under consideration in this report.

    Consolidated Net Profit for Q3-2016 reported a 12.6 per cent YoY jump to Rs 318.54 crore (15 per cent of TIO) as compared to Rs 282.78 crore (13.6 per cent of TIO) but was 6.6 per cent lower QoQ than Rs 341.1 crore (16.3 per cent margin). PAT in absolute rupees as well as in terms of percentage of TIO show linear increasing trends during the period under consideration in this report.

    Category Growths

    Dabur says that its oral care business led by Dabur Red Paste and Meswak, continued to grow ahead of the industry. The Skin Care business reported a near 10 per cent growth during the quarter, while the Home Care business grew by over eight per cent. The Over-The-Counter (OTC) & Ethicals category ended the third quarter of 2015-16 fiscal with a near eight per cent growth. The International Business Division for Dabur reported a 14.8 per cent growth during the third quarter of 2015-16.