Brands
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.
Brands
Malaika Arora launches Maejoy accessories brand with Myntra partnership
New label debuts with 250 plus handbags and lab grown diamond jewellery.
MUMBAI: When style meets sparkle, a new brand is ready to take centre stage. Actor and entrepreneur Malaika Arora has launched a lifestyle accessories label called Maejoy, developed in collaboration with Exceed Entertainment and Myntra Jabong India Private Limited (MJIPL), the B2B wholesale arm of Myntra. The brand enters the market with a debut collection of more than 250 styles spanning handbags and lab grown diamond jewellery, two categories that continue to define everyday personal style for modern consumers.
The handbag lineup includes crossbody bags, structured shoulder bags, bucket bags, totes, backpacks, clutches and workwear inspired designs. The pieces are crafted using materials such as synthetic leather, raffia, braids, satin, rhinestones and metallic finishes.
Alongside the bags, Maejoy has introduced a jewellery range featuring lab grown diamond rings, earrings, pendants, bracelets and tennis bracelets. The pieces are set in 925 sterling silver bases with gold, silver and rose gold tones, and include diamonds certified by IGI and GCI.
Positioned as a premium yet accessible accessories label, Maejoy is built around the philosophy “The Joy of Being Me”, aiming to blend aspirational fashion with everyday usability. The brand’s positioning centres on three pillars: authenticity, empowerment and accessibility.
Arora described the venture as a natural extension of her long association with fashion and personal style.
“Maejoy is a labour of love. Throughout my career, whether on screen, in business or through personal style, I have always believed fashion should feel empowering yet effortless. The Joy of Being Me celebrates individuality while making global fashion trends more accessible,” she said.
MJIPL, CXO and head of house of brands Suman Saha said the brand brings together Arora’s style perspective with a strong opportunity in the accessible premium accessories segment.
“Maejoy combines Malaika Arora’s distinctive style sensibility with fashion forward designs that we believe will resonate strongly with consumers looking for elevated yet wearable accessories,” he said.
Exceed Entertainment CEO Afsar Zaidi added that building celebrity led brands requires balancing authenticity with market viability.
“Malaika commands respect both as a fashion icon and a businesswoman. Bringing her creative vision together with Myntra’s brand building expertise creates a strong foundation for Maejoy,” he said.
The collection is available exclusively on Myntra through its website and mobile app, making the brand accessible to millions of shoppers across India as it steps into the competitive lifestyle accessories space.
