Dabur India launches ‘Project Samriddhi’ for cost reduction

By

Maverick Martins

Published
Jun 4, 2020

FMCG major Dabur India has launched ‘Project Samriddhi’ in a bid to achieve cost-savings of Rs 100 crore ($13.3 million), as it prepares to respond to the new realities in Covid-19 times.
 

The company is also planning to ramp-up distribution and production capacity for new products. It expects sales of nearly Rs 100 crore from sanitisers alone during the first quarter of this fiscal.
 
In the wake of the Covid-19 pandemic, Dabur had strengthened its personal care portfolio and launched hand sanitisers, air sanitisers, and disinfectants among other products.

“We have launched Project Samriddhi in India with an eye on cost optimisation and value enhancement across various levers of the business. While we have a strong balance sheet with healthy levels of cash reserves, we are exploring all avenues to manage costs in the new-normal scenario to transform Dabur into a more resilient company,” Lalit Malik chief financial officer at Dabur India, told BusinessLine.
 
“We are not just looking at cost reduction but also deferment, wherever possible. We expect to bring in cost savings to the tune of Rs 80-100 crore through this project. Some of the savings would be ploughed back into business expansion,” Malik added.
 
For the financial year 2019-20, Dabur India had reported a net profit of Rs 1,445 crore, while its revenue from sales was Rs 8,704 crore.