Vice Chairman Statement

Dear fellow shareholders,

As we slowly transition toward normalcy, it is an opportunity for us to make this transition more resilient, inclusive, and sustainable. The past two years were challenging, but as always Dabur has stood the test of time and emerged stronger and more confident to face the future. Before I begin to share our insights and experiences of the Financial Year 2021-2022. I would like to place on record my appreciation on behalf of the Board of Directors of the entire Dabur family who has worked tirelessly even in exceptional circumstances for the greater good of the society. Their concerted efforts to ensure Dabur’s continuing success are phenomenal.

While the Indian economy is still struggling to overcome the rippling effects of the COVID-19 pandemic,we have reported another year of steady revenue growth. In fact, we have recorded our highest ever revenue growth in the last 8 years. Our consolidated revenue crossed ₹10,000 cr mark for the first time with an annual growth of 13.9%. This surge in growth is despite accelerating inflationary pressure in the last quarter and demonstrates Dabur’s remarkable resilience and agility.

Our Achievements

Our passion for winning is rooted in our core values.We are determined to do what matters the most to us and are committed to delivering exceptional results.This year as well we have reached various milestones on our journey to sustainable growth:

• Our Consolidated Revenue crossed the ₹10,000 cr mark for the first time
• Our Standalone Revenue crossed the ₹8,000 cr mark for the first time
• We have witnessed the highest annual revenue growth in the last 8 years.
• Our Food & Beverages (F&B) portfolio saw 48% growth in the fiscal, followed by 13% growth in Home & Personal Care (HPC) vertical. Healthcare portfolio saw close to 5% growth on a high base of 32% growth, leading to a 2-year CAGR of 18%.
• Our International Business Growth is up by 15.8% in constant currency terms

Resilience at the time of crisis

In these unprecedented times, economies are facing one crisis after another. We had not yet recovered from the aftermath of COVID, and a consequential crisis of high inflation hit us. Quarter 4 witnessed India’s 8-year high retail price inflation. The inflationary headwinds led to a dramatic surge in input costs, and FMCG companies dealing in the home and personal care segment had to face the worst impacts of higher input costs. Under these exceptional circumstances,our strategy to combat the challenges posed by high input costs involved cost control measures followed by pricing actions. We are happy to have progressed well through this journey with our home and personal care segment continuing to contribute the highest to our revenue pool. Our integrated thinking approach coupled with consumer-centric innovations has helped us stand the test of the most challenging times and preserve our 138-year-old legacy.

Our Road to Sustainability

At Dabur, Sustainability is not just a buzzword, it is one of our core beliefs. Our vision for the planet is to have no adverse impact on the environment led by our operations. To live up to our purpose of creating a greener and brighter future, we have set different milestones on our road to sustainability. I take pride to announce that we have achieved one of the key milestones this year. Dabur is now a 100% Plastic Waste Neutral Company, having collected, processed,and recycled around 27,000 MT of post-consumer plastic waste from all over India in fiscal 2021-22. We are the first-ever consumer goods company in India to achieve this landmark. This is just the tip of the iceberg as Dabur aims to achieve a lot more on its road to sustainability.

We have already started inducting electric vehicles in our fleet for last-mile product distribution and intend to have a fleet of 100 EVs covering the length and breadth of the country by the end of 2022-23 fiscal. This is one step forward in our mission to reduce our carbon footprint and become carbon neutral by the year 2040. We are committed to creating circularity in the value chain to achieve a positive balance by 2030. To preserve biodiversity, we aim to achieve no net loss of biodiversity by 2030 and become water positive by 2030, through a series of programs aimed at creating a positive water balance within operations and in communities.

Our Way Forward

With mounting inflationary pressure on key raw materials which is expected to grow even more in the coming months, Dabur plans to monitor the situation closely to develop strategic ways to offset the increase in the price of raw materials through our synergies and cost efficiencies. We will continue to make sustained efforts to drive demands for our brands by enhancing our rural footprint and plowing investments behind our power brands. Our rural outreach expands across a network of ~90,000 villages out of which 30,000 villages have been added in the past year.

While we are applying our learnings from the last two years of the pandemic to enhance the efficiencies of our operations and build robust supply chains to function with minimum disruption in such exceptional circumstances, we also plan on reassessing our business continuity plan this year to come up with better synergies.

Our people are our most valuable asset, with their commitment and dedication, I am confident that we will continue to meet the demands of our consumers,live up to their expectations by providing long-term value, and generate sustainable long-term growth.While we acknowledge the progress that has been made, we also understand that we still have a long way to go.

I would like to take this opportunity to thank the Board of Directors and our advisors for their continued guidance and trust. I would also like to thank our shareholders and customers for their unwavering support and faith in us and for making Dabur, India’s most trusted name. I look forward to your continued support while we remain committed to delivering quality.

Sincerely,

Mohit Burman

Vice Chairman