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Dabur India Ltd. Annual Report 2021

Jul 19, 2021

59077_rns_2021-07-19_6341d991-7ef6-4489-bd98-ab0e40cc19c6.pdf

Annual Report

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Ref: SEC/SE/2021-22 Date: 19.07.2021

Scrip Symbol: NSE - DABUR, BSE Scrip Code- 500096

Corporate Relation Department BSE Ltd. Phiroze Jeejeebhoy Towers Dalal Street, Mymbai-_400 001.

National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor Plot No. C/l, G Block Bandra - Kurla Complex Bandra (E) Mumbai - 400 051.

Sub: Submission of Annual Report 2020-21 (includine Notice of 46th Annual General Meeting) and Business Responsibility Report 2020-21

Dear Sir,

This is further to our letter dated 7th July, 2021 wherein it was informed that the Annual General Meeting (AGM) of the Company is scheduled to be held on 19th August, 2021.

In terms of Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are submitting herewith Annual Report of the Company including the Business Responsibility Report for the financial year 2020-21 and the Notice of AGM.

The Annual Report for the financial year 2020-21 including Notice of AGM is being sent to the shareholders electronically who have registered their email IDs. The same is also available on the Company's website at www.dabur.com

Brief details of AGM are as under:

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Thanking you.

Yours faithfully For DABUR INDIA LIMITED

(A K Jain)

E V P (Finance) & Company Secretary

DABUR INDIA LIMITED

(CIN: L24230DL1975PLC007908); Regd. Office: 8/3, Asaf Ali Road, New Delhi - 110002; Tel. No.: 011-23253488

Website: www.dabur.com; Email Id : [email protected]; Email Id for investors: [email protected]

Business Responsibility Report : As Mandated by Sebi

FY 2020-2021

About Dabur

Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Skin Care, Health Care, Home Care and Foods. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur has come a long way today to become a leading consumer products manufacturer in India and it has been dedicated to providing nature-based solutions for a healthy and holistic lifestyle.

Through our comprehensive range of products, we touch the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped us develop a bond of trust with our consumers. That guarantees you the best in all products carrying the Dabur name.

About this report

The Securities and Exchange Board of India (SEBI) as per its Listing Obligation and Disclosure Requirement Regulations, 2015 has mandated the inclusion of a "Business Responsibility Report" (BRR) as part of company's Annual Report for top 500 listed entities based on market capitalisation at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Later from the FY 2019-20, this requirement of inclusion of BRR was extended to the top 1,000 listed entities by market capitalisation. The reporting framework is based on the 'National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs)' released by the Ministry of Corporate Affairs, Government of India, in July 2011, which contains 9 Principles and Core Elements for each of the those 9 Principles.

In order to align the NVGs with the emerging global concerns and reporting practices, the process of revision of NVGs began and a Committee was constituted. The Committee has released the 'National Guidelines on Responsible Business Conduct' (NGRBC) in 2019. The NGBRC has been designed to assist businesses to embrace the principle of responsible conduct going beyond the requirements of regulatory compliance and it is recommended by the Committee that the existing BRR format is modified to reflect the NGRBC and resultantly 'Business Responsibility & Sustainability Reporting' (BRSR) format is drafted and reporting under which shall however be mandated in the years to follow.

Following is the eighth 'Business Responsibility Report' of Dabur which is based on the format earlier suggested by SEBI basis NVG.

Section A: General Information about the Company

1. Corporate Identity Number (CIN) of the Company

L24230DL1975PLC007908

2. Name of the Company

Dabur India Limited

3. Registered address

8/3, Asaf Ali Road, New Delhi 110002

4. Website

www.dabur.com

2020-21

7. Sector(s) that the Company is engaged in (industrial activity code-wise):

Dabur is a Fast-Moving Consumer Goods (FMCG) company and operates in key consumer product categories like hair care, oral care, health care, skin care, home care & foods. Our product portfolio includes over 400 trusted products spread across 21 categories and over 1,000 SKUs.

Principle product categories of the company with ITC code are:

Product Description ITCCode No.
Fruit Juice 20099000
Ayurvedic Medicines 30049011
Hair Oils 33059011
Tooth paste and powder 33061010

8. List three key products/services that the Company manufactures/provides (as in balance sheet):

Dabur's product portfolio can be broadly categorised into:

Health care products

  • z Home & personal care products
  • z Foods consisting of fruit-based beverages and culinary pastes business

Health care products include health supplements, digestives, honey, over-the-counter (OTC) products, and ayurvedic ethicals. Home and personal care products include products for hair care, skin & body care, oral care and home care.

Some of our leading brands include Dabur Chyawanprash, Dabur Honey, Dabur Amla, Dabur Red tooth Paste and 'Real' range of fruit juices.

9. Total number of locations where business activity is undertaken by the Company

a) Number of International Locations (Provide details of major 5)

Detail of Dabur's international business , through its overseas subsidiaries, is given below:

S.No. Key geographies by total overseas sales Major products/categories
1 Middle East - Kingdom of Saudi Arabia (KSA) Hair oils, hair creams, Vatika styling hair gels, shampoos
and United Arab Emirates (UAE) (Vatika shampoo) and toothpastes
2 Africa - Egypt, Nigeria and South Africa Hair oils, hair creams, conditioning and treatment productsand toothpastes
3 Asia (ex-India) - Nepal, Bangladesh, Sri Lankaand Pakistan Foods, hair oils, shampoos, digestives and home care
4 U.S.A. Specialised hair care products - relaxer kits, hairconditioners, moisturizers, shampoos and gels
5 Turkey Shampoos, hair conditioner, body wash and baby care

Major international manufacturing locations include Nepal, Bangladesh, UAE, Nigeria, Egypt, Turkey and Sri Lanka

b) Number of National Location

Dabur has manufacturing plants at 11 locations across the country.

State/Union Territory Location
Himachal Pradesh Baddi
Uttarakhand Pantnagar
Uttar Pradesh Ghaziabad
Jammu & Kashmir Jammu
Rajasthan Alwar, Newai
Madhya Pradesh Katni, Pithampur
West Bengal Narendrapur
Dadra and Nagar Haveli Silvassa
Assam Tejpur

Dabur's regional offices are situated at Ghaziabad, Mumbai, Hyderabad, Kolkata

10. Markets served by the Company – Local/State/National/International

Dabur has a global footprint and serves both National and International markets.

Section B: Financial Details of the Company

1. Paid up Capital (INR)

176.74 crore

2. Total Turnover (INR)

7,461.38 crore

3. Total profit after taxes (INR)

1,381.89 crore

4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%)

2% of PAT for FY 2020-21

Total CSR expenditure is 2% of average net profits (before tax) of the company made during the three immediately preceding financial years

5. List of activities in which expenditure in 4 above has been incurred.

Eradicating Hunger, Poverty and Malnutrition

Promoting Health Care Including Preventive Healthcare

Ensuring Environmental Sustainability

Promotion of Education including special education

Providing Employment Generating Vocational Skills and livelihood enhancement projects

Section C: Other Details

1. Does the Company have any Subsidiary Company/ Companies?

Following are the subsidiary companies:

  • z African Consumer Care Limited, Nigeria (Foreign Wholly Owned Subsidiary)

  • z Asian Consumer Care Pakistan Pvt. Ltd., Pakistan (Foreign Wholly Owned Subsidiary)

  • z Asian Consumer Care Pvt Ltd., Bangladesh (Foreign Subsidiary)

  • z Atlanta Body and Health Products Propreitory Limited (Foreign Subsidiary)

  • z Dabur (UK) Ltd., British Virgin Island (Foreign Wholly Owned Subsidiary)

  • z Dabur Consumer Care (Private) Limited, Srilanka (Foreign Wholly Owned Subsidiary)

  • z Dabur Egypt Ltd., Egypt (Foreign Wholly Owned Subsidiary)

  • z Dabur International Ltd., Isle of Man (Foreign Wholly Owned Subsidiary)

  • z Dabur Lanka (Pvt.) Ltd, Sri Lanka (Foreign Wholly Owned Subsidiary)

  • z Dabur Nepal Pvt. Ltd., Nepal (Foreign Subsidiary)

  • z Dabur Pakistan Pvt. Ltd., Pakistan (Foreign Subsidiary)

  • z Dabur Pars, Iran (Foreign Wholly Owned Subsidiary)

  • z Dabur South Africa Pty. Ltd., South Africa (Foreign Wholly Owned Subsidiary)

  • z Dabur Tunisie, Tunisia (Foreign Wholly Owned Subsidiary)

  • z Dermoviva Skin Essentials Inc., USA (Foreign Wholly Owned Subsidiary)

  • z D and A Cosmetics Propreitory Limited (Foreign Wholly Owned Subsidiary)

  • z Excel Investments (FZC), UAE (Foreign Subsidiary)

  • z H & B Stores Limited (Domestic Wholly Owned Subsidiary)

  • z Hair Rejuvenation & Revitalization Nigeria Ltd., Nigeria (Foreign Wholly Owned Subsidiary)

  • z Healing Hair Lab International LLC, USA (Foreign Wholly Owned Subsidiary)

  • z Herbodynamics India Limited (Domestic Wholly Owned Subsidiary)

  • z Hobi Kozmetik, Turkey (Foreign Wholly Owned Subsidiary)

  • z Namaste Laboratories LLC, USA (Foreign Wholly Owned Subsidiary)

  • z Naturelle LLC, UAE (Foreign Wholly Owned Subsidiary)

  • z RA Pazarlama, Turkey (Foreign Wholly Owned Subsidiary)

  • z Urban Lab International LLC, USA (Foreign Wholly Owned Subsidiary)

  • 2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s)

The subsidiary companies operate in different geographies and conduct their own BR initiatives.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]

Entity Initiative % of entity
Suppliers(smallfarmers) We directly engage with local & small producers for procuring inputs for our supply ofrare herbs and medicinal plants through our greenhouse projects. (Details in responseto question 4 in Section E, Principle 2) < 30%
Distributors We actively engage with our distributors to build their capacity through workshops andtraining sessions. <30%
B2Bcustomers We organise customized education programmes for our B2B customers like beautyparlors, doctors etc. <30%
Suppliers anddistributors The Direct Touch policy (Whistle Blower & Protection Policy) applies to businessassociates (suppliers, stockists and dealers) as well. This provides a platform tobusiness associates for reporting unethical business practices without fear of reprisal. >60%

Dabur actively engages with its business associates through its BR initiatives.

Section D: BR Information

1. Details of Director/Directors responsible for BR

a) Details of the Director/Directors responsible for implementation of the BR policy/policies

Implementation of BR policies is the responsibility of the Corporate Social Responsibility Committee of the Board of Directors.

DIN Name Designation
02318948 Dr. Ajay Dua Independent Director
02458844 Mr. Ajit Mohan Sharan Independent Director
00021581 Mr. P. D. Narang Executive Director
00041825 Mr. Mohit Malhotra Executive Director

b) Details of the BR head

S. No. Particulars Details
1. DIN (if applicable) 00042902
2. Name Ashok Kumar Jain
3. Designation E.V.P. Finance & Company Secretary
4. Telephone number 011-71206000
5. e-mail id [email protected]

2. Principle-wise (as per NVGs) BR Policy/policies

a) Details of Compliance (Reply in Y/N)

As per table

a) Details of Compliance (Reply in Y/N)

Sl. Questions Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 Principle 6 Principle 7 Principle 8 Principle 9
No. Ethics, transparency & sustainabilityaccountability Sustainability inlife-cycleof product Employeewell- being Stakeholder engagement Promotionof humanrights Environmentalprotection Responsible publicpolicyadvocacy Inclusivegrowth Customervalue
1 Do you have a policy/policies for Yes Yes Yes Yes Yes Yes No Yes Yes
2 Has the policy been developed in consultationwith relevant stakeholders? Yes Yes Yes Yes Yes Yes NA Yes Yes
3 Does the policy conformto any national / international standards? If yes,specify. NA NA Yes,OHSAS18001 NA NA Yes,ISO 14001 NA NA NA
4 Has the policy beingapproved by the Board?If yes, has it beensigned by MD/ owner/CEO/ appropriate BoardDirector? Yes, Board ofDirector Yes,CEO Yes,CEO Yes,CEO Yes,CEO Yes,CEO NA Yes,Board ofDirectors Yes,CEO
5 Does the company havea specified committeeof the Board/ Director/Official to oversee theimplementation of thepolicy? Yes Yes Yes Yes Yes Yes NA Yes Yes
6 Indicate the link for thepolicy to be viewedonline # 1. Code of Ethicsand Conduct2. Whistle Blowerand ProtectionPolicy3. Code of FairDisclosure of Unpublished Price Sensitive Information4. Policy on RelatedParty Transactions5. Policy on Disclosure of MaterialEvents and Information 1. Code ofEthics andConduct2. WhistleBlower andProtectionPolicy3. Prevention ofSexual Harassmentof womenat workplace 1. WhistleBlower andProtectionPolicy2. DividendDistributionPolicy3. InvestorsPolicy4. Policyon Rightsof Shareholders5. ShareholderServices 1. WhistleBlower andProtectionPolicy2. Prevention ofSexual Harassmentof womenat workplace OccupationalHealth,Safety andEnvironment policy CSRPolicy
7 Has the policy beencommunicated to therelevant internal andexternal stakeholders? Yes Yes Yes Yes Yes Yes NA Yes Yes

Dabur India limited

Annual Report 2020-21

Corporate Overview Board & Management Reports Financial Statements

Sl. Questions Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 Principle 6 Principle 7 Principle 8 Principle 9
No. Ethics, transparency & sustainabilityaccountability Sustainability inlife-cycleof product Employeewell- being Stakeholder engagement Promotionof humanrights Environmentalprotection Responsible publicpolicyadvocacy Inclusivegrowth Customervalue
8 Does the company havean in-house structure toimplement the policy? Yes Yes Yes Yes Yes Yes NA Yes Yes
9 Does the Company havea grievance redressalmechanism related tothe policy/ policies toaddress stakeholders'grievances related to thepolicy/policies? Yes Yes Yes Yes Yes Yes NA Yes Yes
10 Has the company carriedout independent audit/evaluation of the workingof this policy by an internal or external agency? No No Yes,OHSAS18001 certification NoHowever, an independent audit of complete CSR activities of the company is undertaken. No Yes,ISO 14001certification NA No No
# Link for Policies zCode of Ethics and Conduct: https://www.dabur.com/img/upload-files/165-codeofconductslidesnew.pdf
zWhistle Blower and Protection Policy: https://www.dabur.com/img/upload-files/164-Direct-Touch-1.4.2021.pdfzCode for Disclosure of Unpublished Price Sensitive Information: http://dabur.com/img/upload-files/39-code-of-corporatedisclosure.pdfzPolicy on Related Party Transactions: http://dabur.com/img/upload-files/1135-policy-on-related-party-transactions.pdfzPolicy on Disclosure of Material Events and Information: http://dabur.com/img/upload-files/46-policy-on-disclosure-ofinfo-under-listing-regulations.pdfzPreventionofSexualHarassmentofwomenatworkplacehttp://pulse.dabur.com/rvw/document/portlet/policies__264116_13742.doczDividend Distribution Policy: http://dabur.com/img/upload-files/166-dividend-distribution-policy.pdfzInvestors Policy: http://www.dabur.com/img/upload-files/40-investors-policy-2013.pdf
zPolicy on Rights of Shareholders: http://www.dabur.com/in/en-us/investor/investor-information/shareholder-services/shareholder-rightszShareholder Services: http://www.dabur.com/in/en-us/investor/investor-information/shareholder-services
zCSR Policy: https://www.dabur.com/img/upload-files/1136-Dabur-India-Ltd-CSR-Policy-2020.pdfzOccupational Health, Safety and Environment policy: http://www.dabur.com/img/upload-files/310-ohse-policy.pdf

b) If answer to S. No. 1 against any principle, is 'No', please explain why: (Tick up to 2 options)

S. No. Question Principle 7: Responsible public policy advocacy
1 The company has not understood the Principles --
2 The company is not at a stage where it findsitself in a position to formulate and implement thepolicies on specified principles --
3 Thecompanydoesnothavefinancialormanpower resources available for the task --
4 It is planned to be done within next 6 Months --
5 It is planned to be done within the next 1 year --
6 Any other reason (please specify) Dabur is member of various industrial and trade bodiesand is part of task forces and forums within thesebodies. We actively participate in these forums onissues and policy matters that impact the interest of ourstakeholders. We prefer to be part of the broader policydevelopment process and do not practice lobbying onany specific issue and hence do not feel such a policyis necessary given our way of doing business.

3. Governance related to BR

a) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

The CSR committee of Board of Directors meets every quarter

b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

N.A.

Section E: Principle-wise performance

Principle 1

1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others?

Yes, the Whistler Blower & Protection policy of the company which is applicable to not just all our directors, employees and their representative bodies, but it also extends to all our business associates and security holders as well. This policy provides a platform to these stakeholders for reporting suspected unethical behaviour, malpractices, wrongful conduct, fraud, violation of the Company's Policies including Code of Ethics and Conducts, violation of law or questionable Accounting or Auditing matters by any employee/director in the company, leak of any unpublished price sensitive information (UPSI) or any suspected leak of UPSI, unethical behavior, malpractices, fraud or violation of the company's policies without fear of reprisal and help in eliminating any kind of wrongful conduct in the system. The policy also includes wrongful conduct with respect to discrimination or sexual harassment.

Company also has the Code of Ethics & Conducts which extends to the Board members, members of the Management Committee and all employees in and above Officers level in all of its offices/units/group/NGO but not to joint ventures/ suppliers/contractors. It is a must for every employee in all of the business units/subsidiaries to follow ethical professional conduct in their day to day activities. All employees have to read and understand this code and agree to abide by it.

2. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management?

During the financial year, no complaint was received under the provisions of the Direct Touch policy.

2 complaints from investors were received during the financial year. These complaints pertained to non-receipt of dividend and annual return. These complaints were addressed and were resolved.

Principle 2

  • 1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.
    • z Dabur Chyawanprash
    • z Dabur Honey
    • z 'Real' range of fruit juices
  • 2. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product (optional):
    • a) Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain?

All business units continued their efforts to improve energy usage efficiency and increase the share of renewable energy. We perceive to ensure treatment and recycle of waste, continuous improvement in energy efficiency, enhancing the renewable energy portfolio, better efficiency in material utilisation, maximising water use efficiency, rain water harvesting and recharge, maximising collection, segregation, recycling and safe disposal of post-consumer generated plastic waste under solid waste management drive.

Herbs are used for manufacturing of Ayurevedic products, installation of In-house "Herb Briquette" manufacturing using these processed herbs. These Herb Briquettes are used as boiler feed, thereby reducing the land fill required for safe disposal of used herbs.

Methane gas get generated during the treatment of effluents in Effluent treatment plant. Methane gas used to go in environment.

b) Reduction during usage by consumers (energy, water) has been achieved since the previous year? Not applicable, since these products are directly consumed by our consumers without using energy or water.

3. Does the company have procedures in place for sustainable sourcing (including transportation)?

If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof, in about 50 words or so.

Yes, Dabur, over the years, has worked towards embedding sustainability throughout its inbound supply chain and will continue to do so.

We are sourcing our important raw materials like palm oil, paper pulp from suppliers which are having sustainable sourcing certificate from accredited certifying agencies like Roundtable on Sustainable Palm Oil, Rainforest Alliance.

We have identified environmentally sensitive species of medicinal plants and herbs, and developed methodologies to address their sustainability concerns. We have joined hands with local NGOs across the country and Universities in this mission, jointly undertaking special training programmes for farmers, villagers and tribal communities across the country to train them on sustainable and environment-friendly cultivation processes.

We also have a fully automated state-of-the-art greenhouse in Pantnagar (Uttarakhand), in addition to satellite nurseries and demo cultivation sites across the country. Today, we have over 19 satellite nurseries situated across the country. We strive to reduce the weight and volume of the materials we use for packaging, and support initiatives to recycle and use recycled materials.

4. Has the company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work?

If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

Yes, Dabur actively engages with local & small producers for procuring inputs for its supply of rare herbs and medicinal plants which go into the production of its ayurvedic products. We also engage with several farmers across India for cultivation of medicinal plants and herbs. Our scientists engage with these farmers and tribal communities, training them on scientific and sustainable cultivation of herbs. This exercise has resulted in an increase in the population of these medicinal herbs, some of which are rare, besides supplementing the household income of these farmers. This has also resulted in weeding out middlemen, thereby ensuring higher monetary benefits for the communities. Local farmers also gain through continuous transfer of scientific knowledge through training programmes, workshops and field demos. We also supply quality plantation material, grown at our state-of-the-art nursery and greenhouse in Pantnagar, free of cost to these farmers.

Company's programme for protecting endangered species of herbs and bee-keeping covered many states where local farmers and tribal community are engaged and trained on sustainable cultivation through agencies. We also help local farmers in Bihar take up Bee-Keeping as an additional income generation activity. This activity is undertaken in 22 districts of Bihar, and we have supported the farmers by distributing 40,020 bee boxes to them since the inception of this initiative.

5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%)

Dabur's Environment, Health & Safety strategies are directed towards achieving the greenest and safest operations across all units by optimising usage of natural resources and providing a safe and healthy workplace. Systemic efforts continue to be made towards natural resource conservation by continuously improving resource-use efficiencies and enhancing the positive environmental footprint.

Waste recycle management:

Dabur is addressing the critical area of climate change mitigation through several initiatives. These include treatment and recycle of waste, continuous improvement in energy efficiency, enhancing the renewable energy portfolio, better efficiency in material utilisation, maximising water use efficiencies and rain water harvesting and recharge, maximising collection, segregation, recycling and safe disposal of post-consumer generated plastic waste under solid waste management drive.

Dabur has been closely working with the Ministry of Environment, Forest and Climate Change, Central Pollution Control Board, Federation of Indian Chambers of Commerce and Industry and Confederation of Indian Industry in this plastic waste management programme. Dabur has initiated a number of projects across India in collaboration with different NGOs and Central Pollution Control Board approved Producers Responsible Organizations.

Under this programme, Dabur has collected more than 11,000 MT of post-consumer Plastic Waste (both recyclable and non-recyclable) from Urban Local Bodies Collection Centres in 27 states, with the help of 10 waste management agencies. The collected plastics waste is sent to authorised plastic recyclers and co-processing units like cement kilns for processing.

Dabur had initiated the Plastic Waste Management programme in 2018, and has processed/recycled 27,396 MT of Post-Consumer Plastic Waste under this programme till now. Till date, Rs 11.85 Crore has been spent on this initiative. Taking forward this initiative, Dabur is committed to become a Plastic Waste Neutral company in the 2021-22 fiscal by collecting, recycling and recycling 22,000 MT of post-consumer Plastic Waste from across the country.

Some other initiatives organised towards solid waste management were:

  • z Organising Safaisathi training along with Swachh Sustainable in Uttarakhand, Telangana and Karnataka to sensitise the general people and motivate them towards collection and proper disposal of plastic waste, including multilayered plastics
  • z Motivated the participants to take an oath to better manage plastic waste besides participating in activities like tree plantation
  • z Partnered with Paperman for a dive-site clean-up in Neil Islands of Andaman and Nicobar. This exercise involved 4 professional divers who cleared 600 square meters of the Ocean floor, recovering 12 Kg of plastic waste which included sachets, plastic pieces and bottles.
  • z Organised a two-day training session along with Social Lab in the Municipal councils of Wadwani and Kaij in Maharashtra to enhance and upgrade skills of Safai karmachari in the urban local bodies. A total of 70 Safai karmacharis participated in the session

Water and waste water management:

Dabur is continuously optimizing water consumption through process modification and adoption of new technologies. The Company strives to recycle back usable water from the effluents after treatment in order to reduce fresh water intake. The company has also implemented rain water harvesting facilities, which help to recharge ground water. Most of our major manufacturing locations have adopted a zero discharge strategy

The availability of water is fundamental for operating any plants. Risks could be due to drought situations or less rainfall in monsoon, or regulated allocation of water. Dabur is committed to implement 3R (Reduce, Reuse and Recycle) principle for conservation of water.

Apart from Sewage Treatment Plant (STP) & Effluent Treatment Plant (ETP) at each plant rain water harvesting systems & Recharging of rain water complying the statutory compliance in an Ethical manner. Other areas for improvement are recycling boiler blow down water, ash water recycling, re-use of treated waste water for Gardening, Road cleaning, Toilet Flushing Purpose & Fire Storage tank.

As part of our efforts to continuously reduce usage of Raw water, Dabur has conducted Water Audit through CII & FICCI. Digital Water Flow meters have also been installed across all units, besides Piezometers to check the water level. The company has also implemented rain water harvesting facilities, which help recharge groundwater. Most of our major manufacturing locations have adopted a Zero Discharge strategy.

Some other initiatives taken during the year for water conservation & management include:

  • z Installation of three-stage RO system in place of DM plant to minimize water wastage and to ensure maximum recovery from raw water
  • z UF and RO plant installed to recycle ETP treated water in process
  • z Steam condensate water recovery system put in place and have achieved 80-85% recovery
  • z Overfilling protection system installed for all water tanks
  • z Water flow meter installed in the plant to identify actual usage of water

Principle 3

1. Please indicate the Total number of employees

Permanent employees of Dabur India Ltd. (India only): 5,070

  • z Of these, Management/Executive Staff: 1,112
  • z Blue collared/other staff: 3,958
  • 2. Please indicate the Total number of employees hired on temporary/contractual/casual basis

Temporary/Contractual /Casual employees: 5,787

3. Please indicate the Number of permanent women employees

195 women employees

4. Please indicate the Number of permanent employees with disabilities

This number is not tracked as Dabur does not follow differential recruitment policy based on employees' demographic details and physical abilities.

5. Do you have an employee association that is recognized by management?

Yes, we have employee association which is registered under "Trade Union Act - 1926" in Kolkata

6. What percentage of your permanent employees is members of this recognized employee association?

Less than 5% of the permanent employees are members of this recognised employee association

7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last financial year and pending, as on the end of the financial year.

S.No. Category No. of complaints filedduring the financial year No of complaints pending ason end of the financial year
1. Child labour/forced labour/ involuntary labour 0 0
2. Sexual harassment 0 0
3. Discriminatory employment 0 0

8. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year?

a) Permanent Employees 90 %
b) Permanent Women Employees 100 %
c) Casual/Temporary/Contractual Employees 70 %
d) Employees with Disabilities Included under permanent employees

Principle 4

1. Has the company mapped its internal and external stakeholders? Yes/No

Yes, Dabur has mapped its internal and external stakeholders. We recognise employees, consumers, shareholders & investors, business associates (network of suppliers, stockists and dealers), local communities surrounding our operations, media, regulatory authorities and industrial associations as our key stakeholders.

2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders?

Yes, Dabur identifies communities around our manufacturing facilities (with a focus on women and children from these communities) and small farmers in our inbound supply chain as disadvantaged, vulnerable & marginalized stakeholders.

Additionally, we have installed robust mechanisms to continuously engage with all our stakeholders (internal and external). This helps us in identifying their needs and priorities and allows us to serve these needs accordingly. We are committed towards proactively engaging with all our employees, communities, business associates and customers who may be disadvantaged, vulnerable or marginalized and take various initiatives, like carrying out CSR activities for them.

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized stakeholders? If so, provide details thereof, in about 50 words or so.

Yes, Dabur regularly undertakes initiatives to serve the interest of its disadvantaged, vulnerable and marginalized stakeholders. Dabur strives for a positive impact in the communities where we operate. Effective communications and a well-thought out development agenda are crucial for building trustful relationships with local communities. This ensures continued viability of the business in the long-term. We believe that strong and prosperous communities enable strong and prosperous businesses. Following is the process undertaken for engaging with the local communities in need around our manufacturing facilities:

How we engage Key Interests of the Stakeholder
z Non Formal Education and Adult Education initiatives z Empowerment and upliftment
zz Community Development initiatives aimed at building an inclusive societyEngaging with local NGOs to upgrade the skill sets of local communities and z of underprivileged sectionsActivities towards Health, Skill
help them earn additional income DevelopmentandIncomeGeneration
zz Initiatives to improve their Health and Hygiene standardsEngage them in recycling initiatives
z Focus on sustainability

Principle 5

1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs/Others?

At Dabur, human rights related issues are covered under the Code of Ethics & Conduct and the Direct Touch policy (Whistle Blower & Protection policy). The Direct Touch policy applies not just to employees (employees in and above Officers level) of the group but to business associates (suppliers, stockists and dealers) as well. Company does not deal with any supplier/contractor if it is in violation of human rights and we do not employ any person below the age of eighteen as per our recruitment policy. We also prohibit the use of forced or compulsory labour at all our units and discourage the same with our business associates.

2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management?

No complaint was received pertaining to human rights violation during the past financial year

Principle 6

1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/ Contractors/NGOs/others.

Dabur's Environment and Pollution control policy and Quality policy pertaining to Principle 6 extend to its subsidiaries but do not cover joint ventures, suppliers and contractors.

2. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage etc.

Dabur is addressing the critical area of climate change mitigation through several innovative and pioneering initiatives. These include continuous improvement in energy efficiency, enhancing the renewable energy portfolio, integrating green attributes into the built environment, better efficiency in material utilisation, maximising water use efficiency and rain water harvesting, maximising collection, segregation, recycling and safe disposal of post-consumer generated plastic waste under solid waste management drive

Dabur achieved reduction in fresh raw water consumption continuously for last few years. Most of major manufacturing locations have adopted a zero discharge strategy which has resulted in 4.8% reduction compared to previous year in effluent generation.

More such indicators are mentioned in response to part 5 of principle 2 herein above.

3. Does the company identify and assess potential environmental risks? Y/N

Yes, the company regularly identifies the potential environmental risks. The process to identify potential environmental risks involves following steps:

  • z Consider all operations of the department
  • z Consider the process flow of each such operation and divide it into different activities, so that each activity can be considered separately for identifying the releases & discharges, land intake, visual impact, resource consumption, health & safety risk
  • z While dividing operations into activities, consider:
    • ο Activities e.g. handling of hazardous materials, receiving, storage, processing, disposal etc.
    • ο Services e.g. transportation, maintenance, washing, conditioning, etc.
  • z Classify activities into "Direct" and "Indirect"
    • ο Direct: Those which are under the direct control of the organization
    • ο Indirect: Those which are not under the organization's direct control, but over which it can be expected to have an influence
  • z Identify aspects of each activity by considering the following inputs:
    • ο Use of raw materials, consumables, etc. (in case of natural resource), use of a non bio-degradable material (for possible material substitutions)
    • ο Use of water
    • ο Use of energy

The above steps help in determining if any risk can be considered as significant. Management programme is then formulated to address the identified risk and is executed in time in order to eliminate that risk.

Dabur has a range of products based on Nature and natural ingredients. The adversity of Climate Change has significantly impact the supply of these Nature-based raw material, which are essential for production of some products.

4. Does the company have any project related to Clean Development Mechanism? If Yes, whether any environmental compliance report is filed?

No, we have not registered any project related to Clean Development Mechanism.

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc.

Following are the steps taken by the Company:

Clean Technology: using agro based waste as a fuel in some of our units for steam generation; Methane gas generated from our effluent treatment plant is used as a fuel; We also use piped natural gas (PNG) to reduce the use of diesel / furnace oil. We are reusing water from treated effluent at the plants. Also more efficient use has reduced raw water consumption even with increase in production.

Energy Efficiency: minimized usage of petroleum products by modifying our boilers into bio-fuels boilers, we are continuously replacing with more energy efficient equipments, lighting fixtures, optimisation of operations of cooling tower for airconditioning, use of VFD in motors, pumps, air compressors etc., installation of solar power plant system, change in methods and use of new technologies in production processes etc.

Renewable Energy: We are seeking opportunities in the field of solar energy in order to achieve our renewable energy targets. We have adopted solar street lights at our plants and a pilot project of solar power plant is implemented at our corporate office and more projects are being implemented at plant level.

Our all units are compliant of zero liquid discharge system. Expanding green cover through plantation drives is another activity that we undertake on an ongoing basis and have declared 1st Jan as a Tree Plantation day at manufacturing locations.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported?

The emissions, solid waste and effluent generated are monitored on a regular basis and are within the limits as prescribed by CPCB or SPCB

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year.

Nil

Principle 7

1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with

Yes, Dabur is a member of several industrial and trade bodies. These are listed below:

  • a) Confederation of Indian Industry (CII)
  • b) Federation of Indian Chambers of Commerce and Industry (FICCI)
  • c) Associated Chambers of Commerce and Industry of India (ASSOCHAM)
  • d) PHD Chamber of Commerce and Industry (PHDCCI)
  • e) Indian Beverage Association (IBA)
  • f) Action Alliance for Recycling Beverage Cartons (AARC)
  • g) Pet Packaging Association For Clean Environment (PACE)
  • 2. Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)

Dabur is part of various task forces and forums within the above listed industrial and trade bodies. Regular engagement with industry associations helps raise awareness about the Company's contributions to the Society and the Economy. It also helps in Public Policy Advocacy. We actively participate in these forums on issues and policy matters that impact the interest of our stakeholders. We prefer to be part of the broader policy development process and do not practice lobbying on any specific issue. In the past, we have participated in forums pertaining to:

  • z Corporate governance
  • z Consumer interest
  • z Tackling counterfeiting
  • z Plastic Waste Management

Principle 8

1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof.

Yes, Dabur supports the principles of inclusive growth and equitable development through not just its corporate social responsibility initiatives but through its core business as well.

We strive to enhance the lives of communities that surround our operations. Our initiatives focus on health, education, livelihood-linked skill development, financial inclusion and empowerment through formation of Self Help Groups, village development and veterinary services. Some of the initiatives are as follows:

  • z Fight from Covid 19 pandemic

    • ο Contribution to PM CARES Fund
    • ο Activities for supporting migrants, marginalised, frontline workers, awareness programs
  • z Initiatives for nutrition need

    • ο Programmes to meet nutrition needs of poor & needy
    • ο Healthcare Initiatives
    • ο Health Camps to provide easy access to reliable healthcare for poor & needy
    • ο Programmes for diabetes prevention & management
    • ο Programmes for addressing health care needs of poor & needy
    • ο Operating a permanent Wellness Centre for addressing health needs of needy
  • z Programmes for supporting the local farmers with additional income for producing herbs and medicinal plants

  • z Initiatives for Employment Generating Vocational Skills & livelihood enhancement projects; Initiatives for Gender Equality & Women Empowerment

    • ο Programmes for addressing health care needs of poor & needy
    • ο Activities for promoting and managing self-help groups for rural women; and imparting vocational training
  • 2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any other organization?

Programmes pertaining to Principle 8 are developed and executed by:

  • z In-house teams for health awareness and nutritional need projects, health camps in both rural and urban areas
  • z SUNDESH, a registered society (own foundation), for community-focused initiatives around areas of operation, like initiatives for sanitation, education, vocational skills, women empowerment
  • z Jivanti Trust, a registered trust (own foundation), for initiatives to protect endangered species of herbs & plants, enhancing livelihood for rural communities; tree plantation, vocational training, water project, plastic waste management, solar project, school support initiatives and promotion of sports
  • z External NGOs, government structures are also involved for delivering the projects initiated

3. Have you done any impact assessment of your initiative?

Yes, Dabur has earlier engaged external agencies to assess the impact of its initiatives like:

  • a) Health & Sanitation
  • b) Engaging Farmers in Herb Cultivation

The assessment is done to understand the efficacy of our programmes in terms of delivery of desired benefits to the community and to gain insights for improving the design and delivery of future initiatives.

4. What is your company's direct contribution to community development projects- Amount in INR and the details of the projects undertaken?

Dabur's contribution towards projects carried under its CSR policy during the reporting period is Rs. 28.71 crore.

A detail report on CSR activities is annexed to the Directors' Report of Company. This report is in the format mandated by Ministry of Corporate Affairs.

5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words, or so.

Our community outreach initiatives have been developed keeping in mind the specific needs of the communities that we operate within. The initiatives are finalised after a thorough understanding of the specific requirements of each community through stakeholder dialogue and engagement. Also, we follow a participatory approach where the beneficiaries also contribute towards the programme. This ensure complete participation from the community and also makes the initiative sustainable. Since the programmes are developed after a detailed need assessment, it ensures that the initiatives are successfully adopted by the community.

Principle 9

1. What percentage of customer complaints/consumer cases are pending as on the end of financial year.

A total of 3 number of consumer cases were received during 2020-21 and 14 number of consumer cases are pending as on the end of financial year.

2. Does the company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /Remarks (additional information)

Yes, Dabur displays product information on the label for the benefit of the consumer, over and above what is mandated by local laws like Bureau of Indian Standards Act and Drugs and Cosmetics Act. This additional information is provided to enhance the value consumers can derive from the product and to ensure safe and appropriate use. The additional information on the product label relates to various active ingredients contained in the product, their proven clinical benefits, consumer grievance redressal mechanisms, directions for use (including pictorial depiction), safety, caution etc. and varies from product to product. We also actively inform consumers about how to differentiate between genuine and fake products and how to identify damage in sealed products. A few examples from our product portfolio are given below:

  • z Odomos (a personal application mosquito repellent) Apart from the mandatory label requirements, we provide additional information on safety aspects of the product. Information on certification by paediatricians including reference to the journal/publication is provided on the label. This allows the consumer to access additional information on the safety studies done on the product.
  • z Sani Fresh (Liquid toilet cleaner): We provide pictorial information on direction of use. We also inform the consumers about the safety of the product for use in septic tanks and provide explanation for the guaranteed germ kill claim made on the label.
  • z Odonil (Air freshener in the form of sprays and blocks): We provide pictorial information on direction of use to ensure that consumer derives maximum utility from the product.
  • z Oral Care products Red, Meswak, Promise and Babool (Tooth paste & powder): We provide information on herbal ingredients & their mode of action, history of herbs, direction of use & information about clinical tests conducted.
  • 3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year?
No. of cases filed inthe last five years No. of cases pending ason end of financial year Remarks
Alleged Unfair Trade Practices 0 0 No case was filed against the company
Alleged Irresponsible Advertising 22 1 21 complaints were disposed off
Alleged Anti-Competitive Behaviour 0 0 No case was filed against the company

4. Did your company carry out any consumer survey/ consumer satisfaction trends?

Yes, as part of our stakeholder engagement strategy, Dabur engages with its consumers on an ongoing basis and conducts methodical research on their satisfaction with respect to our products and advertisements. These surveys are conducted through established third party market research firms. We undertake regular brand tracking exercises to assess brand preference scores and impact of our advertisements. Blind product tests are also conducted to gauge consumer satisfaction vis-a-vis products of our competitors. Similar research is also conducted with our sales channel that includes professional partners like ayurvedic doctors, beauty parlour owners etc.