Roots Of Strength
Anand Chand Burman is the Chairman of Dabur, India’s largest Ayurvedic medicine and natural consumer products manufacturer. Being a fifth-generation entrepreneur, Anand joined the family business as the manager of the research and development department in 1980 after completing his PhD in pharmaceutical chemistry in the US. He joined the company’s Board in 1986 and eventually became its Chairman in 2007. In its bid to concentrate on its core business, the Burman family had successfully exited the pharmaceutical business by selling its stake in Dabur Pharma for around Rs 872 crore nearly a decade back.
Following demonetisation, the FMCG sector faced poor consumer demand and massive destocking in retail and wholesale channels, which are more dependent on cash. However, sales improved sequentially in the fourth quarter as currency came back in the system. During the financial year 2016-17, it registered a sales turnover of Rs 7,680 crore and a net profit of Rs 1,277 crore. The company’s Ebidta margins expanded to 23.5 per cent as compared to 22.1 per cent in the previous year. In 2017, the company had established one of the most modern manufacturing units for ayurvedic medicines and products in Assam with an investment of Rs 250 crore.
Despite the tough times, its key brands performed well with Dabur Red Paste coming close to the Rs 500 crore turnover mark and Dabur Anmol Coconut Oil all set to cross the Rs 100 crore mark. Dabur Red Paste has, in fact, become the third largest toothpaste brand in the country today. The foods business, which includes juices and culinary products, reported strong growth almost touching Rs 1,000 crore of sales in India.
Dabur also filed two new patent applications in 2016-17 and four of its patents were published bringing the company a step closer to these patents being awarded. It also conducted 14 pre-clinical and three clinical studies, further establishing Dabur as the science-based Ayurveda expert in the country. It has also rolled out 17 products across various geographies during the last financial year.
