1.     Introduction

The fast-moving consumer goods industry is one of the key contributors to the Indian economy. The FMCG sector accounts for the fourth-largest sector in the economy, with household and personal care being the leading segment accounting for 50 percent of shares. The main growth drivers for FMCG have been increasing income, changing lifestyles, increasing awareness, and easier access. Besides, the trend toward sustainable products also influences consumers’ purchase behavior.

Dabur India Limited is one of the leading fast moving consumer goods (FMCG) players dealing in consumer care and food products. It is the 4 th largest FMCG company in India and a leader in Ayurveda globally. Dabur operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods.

The company has various brand leaders in different market segments - Dabur Chyawanprash (a health tonic) and Hajmola (a digestive tablet). Real, launched during 1996-1997, has also successfully become the leader in the market. The company has a wide distribution network, with a high penetration in both urban and rural markets. It has its manufacturing presence across 9 countries.

Dabur has identified 9 Power Brands – Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus, Dabur Pudin Hara, Dabur Red Paste, Dabur Amla Hair Oil, Vatika and Real fruit juice.

2.     Literature review

Bagchi.B & Khamrui.B (2012) investigated the relationship between working capital management and firm profitability and to identify the variables that most affect profitability. Working capital management is considered to be a vital issue in financial management decision and it has its effect on liquidity as well as on profitability of the firm. In this study, we have selected a sample of 10 FMCG (Fast Moving Consumer Goods) companies in India from CMIE database covering a period of 10 years from 2000–01 to 2009–10. Profitability has been measured in terms of return on assets (ROA).Cash conversion cycle (CCC), interest coverage ratio, age of inventory, age of creditors, age of debtors and debt-equity ratio have been used as explanatory variables. Pearson’s correlation and pooled ordinary least squares regression analysis are used in the study. The study results confirm that there is a strong negative relationship between variables of the working capital management and profitability of the firm.

S M Imamul Hoque and Mohd Atif Afzal (2017), ‘An appraisal of financial performance of the FMCG industry in India’. This study states that, there is significant impact of sales on liquidity position of selected FMCG companies, there is no significant impact of sales on solvency position of selected FMCG companies and there is significant impact of sales on profitability position of FMCG companies. The study included the time period of five years i.e., 2011-12 to 2015-16.

Tamragundi & Vaidya (2016) says FMCG industry plays a significant role in shaping a country’s economy and development. he FMCG sector has grown at an annual average of about 11 per cent over the last decade. Their work examined the relationship between profitability and liquidity on ten leading FMCG companies in India for the period of 2005-06 to 2014-15. Profit is the propulsive element of any investments in different projects and observed that for FMCG companies there is not a dilemma between Liquidity and Profitability.

Shivanisinh Shailesh Kumar Parmar (2017) in his research paper ‘A study on financial efficiency of selected FMCG companies in India’, it evaluated various financial ratios and provided conclusion upon 7 companies on the basis of financial ratios. This study included seven FMCG companies and time period included in this study is 10 years that is 2007-2015.

Patel, Harish., Patel, Dr. V. B. (2018) aimed to analyze fundamental position of major listed FMCG companies using ratios. The aim of study is P&G, NESTLE, ITC, DABUR, and HUL. Analysis was done using past three-year computed date of income Margin Ratio, profits margin, Price to Earnings, Debt to equity ratio, Dividend payout ratio, Earnings per share starting April 2016 to March 2018.This study provides a specific presentation of data and guidelines which can help a fresh investor likewise as a venture investor to understand vital aspects of investing. This study helps to the investors to make a decision on a secure investment and to identify the expansion opportunities within the long run.

3. Objectives:

1. To know about the Dabur India Ltd.

2. To analyze the financial position of Dabur India Ltd. company.

4. Research Design

The present study is a descriptive study which tries to analyze financial position of the Dabur India Ltd. Company. The research undertaken was quantitative research as it was concerned with numerical, applied statistics, and use of graphs and tables.

5. Data Collection

The data for this project is collected with the help of only secondary data.

6. Source of Data Collection

The study is based on secondary data which is collected from the published financial statements viz., Trading and profit and loss account and balance sheet contained in the annual report of the selected Dabur Ltd.

7. Period of the Study

The study period cover 2 years for 2022-23 to 2023-24.

8. Data Analysis

The graph shows values of 6 accounting ratios for Dabur Ltd. and Net Profit Margin of Dabur Ltd. is the highest.

In the above table the Net Profit Margin (%) of Dabur Ltd. for the year 2023-24 is decrease than the previous year. A higher profit margin indicates a more profitable company that has better control over its costs.

The current Ratio (%) of Dabur Ltd. for the year 2023-24 is increase than the previous year. It shows the sound financial position of Dabur ltd. The quick ratio for Dabur India Ltd. is almost 70% increase 0.60 to 0.94 respectively for the year. We infer that Dabur has the ability to pay off its liabilities.

Earnings per Share have risen from 9.64 in 2022-23 to 10.4 in 2023-24. This ratio indicates the ability of the firm’s assets to generate operating income. As a rule of thumb, the higher this ratio is the better. It is important to realize that this ratio shows the return shareholders are actually achieving on their investment, using current market value for listed shares.

The Asset turnover of Dabur Ltd. for the year 2023-24 is increase than the previous year. We conclude that it uses its assets very effectively to generate revenue or sales.

In the above graph, Inventory Turnover Ratio is shows 2.61. This ratio indicates whether investment in inventory is within proper limit or not.

9. Limitation of the study

1. This study is mainly depends on secondary data in annual report of Dabur India ltd.

2. The study is based on analyzing the financial position of Dabur India ltd only. Hence it is not applicable to other companies.

10. Conclusion

The researcher investigated and analyzed the financial performance, liquidity, and profitability position of Dabur India Ltd. by applying various accounting ratios. On studying the financial performance analysis of Dabur India Ltd. for a period of two years from 2022-23 to 2023-24, the study reveals that the financial performance is better. However it needs to minimize the operating expenses to get high net profit margin. Dabur India has efficiently control its current assets and liquid assets to pay its current liabilities so that the creditors of the company feel secured about the repayment of their amounts by the company. Sales turnover has to be improved by checking expenses that influences the sales. Inventory management of the concern is satisfactory.