Management Discussion and Analysis Report
(within the limits set by the Company's competitive position)
The Company is engaged in the Personal Care business which includes Oral Care. The Oral Care business continues to account for over 90 per cent of the Company's sales turnover.
In India, almost one-third of the population does not have access to modern oral care. To address this situation, the Company, in partnership with Indian Dental Association, conducts annually, an intensive two-month-long awareness campaign in October and November, every year under the banner "Oral Health Month". The aim of this campaign is to create oral health awareness and motivate people to adopt brventive self-care habits to improve their oral health. This is yet another step in the Company's longstanding effort to sbrad the message of good oral health and encourage the use of modern and efficacious dentifrice products.
To help its objective of expanding the dentifrice market, the Company has designed its product portfolio in such a manner that its products are available at different price points to cater to the requirements of consumers across all segments.
The Company follows a closely defined business strategy to develop and increase market leadership positions in key products categories. On continuous basis, the Management focuses on a variety of key indicators to monitor business health and performance. These indicators include market share, net sales, gross profit margin, operating profit, net income and earnings per share. The monitoring of these indicators and the Company's Code of Conduct and Corporate Governance practices help to maintain business health and strong internal controls.
To achieve its business and financial objectives, the Company focuses on initiatives to drive and fund growth. The Company seeks to capture significant opportunities for growth by identifying and meeting consumer needs within its core categories, through its focus on innovation and the deployment of valuable consumer and shopper insights in the development of successful new products. To enhance these efforts, the Company has developed key initiatives to build strong relationships with consumers, dental professionals, modern trade customers and retail consumers.
The investments needed to support the growth are developed by funding the growth initiatives such as reduction in costs associated with direct materials, distribution and logistics, advertisement and promotional materials, reduction of packaging materials, increasing manufacturing efficiency etc. The Company continues to prioritize its investments in the Oral Care business by expanding the existing production capacities at its state of the art, Toothpaste and Toothbrush manufacturing facilities.
While the brdominant business of the Company has been confined to Oral Care, where it continues to face intense competition, the outlook for industry is positive given the size of the opportunity. The Company believes that with its strong financial condition, experience operating in the challenging environment and continued focus on the Company's strategic initiatives: engaging to build our brands; innovation for growth; effectiveness and efficiency; and leading to win, the Company's business will continue to grow strongly in the next several years.
The Company reports that adequate internal control systems are in place. There has been no adverse material development on human resources and industrial relations continue to be positive. The number of people employed as on March 31, 2016 was 2,278.