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History of Cadbury India: Company Overview
History of Cadbury India: Company Overview
History of Cadbury India: Company Overview
Cadbury India Ltd. is a part of the Kraft Foods Group. Cadbury India operates in five categories
- Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery
business, Cadbury has maintained its undisputed leadership over the years. Some of the key
brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Halls, Éclairs,
Tang and Oreo. Our core purpose "make today delicious" captures the spirit of what we are
trying to achieve as a business.
In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of
existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and
Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,
Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the
world! Our billion-dollar brand Cadbury Dairy Milk is considered the "gold standard" for
chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.
In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink
(MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.
We recently entered the biscuits category with the launch of the Worlds no 1 biscuit brand Oreo.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over
two decades, we have worked with the Kerala Agriculture University to undertake cocoa
research and released clones, hybrids that improve the cocoa yield. Our Cocoa team visits
farmers and advise them on the cultivation aspects from planting to harvesting. We also conduct
farmers meetings & seminars to educate them on Cocoa cultivation aspects. Our efforts have
increased cocoa productivity and touched the lives of thousands of farmers. Hardly surprising
then that the Cocoa tree is called the Cadbury tree!
Externally, the highpoint of the year was our rank as the 7th Great
Place to Work and the No.1 FMCG company in India. This recognition is a
powerful endorsement of our belief that work and fun can co- exist
seamlessly. Cadbury Dairy Milk integrated campaign 08-09 won the Media
Abby Silver Award. The prestigious ABBY awards are held every year to
recognize creative excellence in India Advertising.
I would like to end by thanking all the employees and all other
stakeholders for their continued valued support, which has helped the
Company achieve its success in 2008. I would also like to thank you,
our shareholders for your trust and confidence in the company.
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Profit and Loss Account
for the year ended December 31, 2007 and the Balance Sheet as on that
date and the Reports of the Directors and the Auditors thereon.
2. To declare a dividend.
RESOLVED THAT pursuant to the provisions of Sections 198, 269, 309 and
310 and any other applicable provisions of the Companies Act, 1956, the
Company hereby accords its approval to the re-appointment of and
remuneration payable to Mr. Jaiboy Phillips as an Executive Director of
the Company for a period of 5 years commencing from July 1, 2007, on
the terms and conditions set out in the agreement entered into between
the Company and Mr. Jaiboy Phillips, a copy of whereof initialled by
the Chairman of the Board for the purpose of identification, is placed
before the meeting.
NOTES:
A proxy form, duly completed and stamped, must reach the Registered
Office of the Company not less than 48 hours before the time for
holding the aforesaid meeting.
(c) The Register of Members and Share Transfer Books of the Company
will remain closed from April 26, 2008 to May 8, 2008, both days
inclusive.
OR
(j) Members holding shares in identical order of names in more than one
folio are requested to write to the Companys aforesaid Registrar &
Transfer Agent, and send their share certificates to enable
consolidation of their holdings into one folio.
(k) Members holding shares in dematerialised form, may please note that
while opening a depository account with the depository participants
they may have given their bank account details, which will be printed
on their dividend warrants. However, if Members want to change/correct
the bank account details, they should communicate the same immediately
to the concerned Depository Participant. Members are also requested to
furnish the MICR code of their bank to their Depository Participant.
The Company will not entertain any direct request from Members for
deletion / change in the bank account details furnished by Depository
Participants to the Company.
(I) Members holding shares in physical form are requested to note that,
in order to avoid any loss/interception in postal transit and also to
get prompt credit of dividend through Electronic Clearing Service
(ECS), they should submit their ECS details to the Companys Registrar
& Transfer Agent by April 25, 2008. The requisite ECS application form
can be obtained from the Companys Registrar & Transfer Agent.
Alternatively, Members may provide details of their bank account
quoting their folio numbers by the said date, to the Companys
Registrar & Transfer Agent to enable them to print such details on the
dividend warrants.
(m) Members who hold shares in the physical form can nominate a person
in respect of all the shares held by them singly or jointly. Members
who hold shares in single name are advised, in their own interest to
avail of the nomination facility by filling Form 2B. Blank forms will
be supplied by Companys Registrar & Transfer Agent on request. Members
holding shares in the dematerialised form may contact their Depository
Participant for recording nomination in respect of their shares .
(n) Members are requested to bring their copy of the Annual Report to
the Annual General Meeting.
The Company has also received notice under Section 257 of the Companies
Act, 1956, along with a deposit of Rs. 500 from a member intimating
his intention to propose the candidature of Mr. Bhatia for the office
of a Director of the Company.
- Any increases within the overall limit of Rs. 6,00,000/- p.m. as may
be approved by the Board of Directors from time to time.
Commission
4. Non Competition
Mr. Bhatia will not be entitled to sitting fees for attending meetings
of the Board of Directors or Committees thereof.
A copy of the aforesaid Agreement entered into between the Company and
Mr. Bhatia is available for inspection by the Members at the Registered
Office of the Company, between 10.00 a.m. to 1.00 p.m. on any working
day of the Company up to the date of the Annual General Meeting.
Memorandum of Interest
Item No. 9
- Any increases within the overall limit of Rs. 6,00,000/- p.m. as may
be approved by the Board of Directors from time to time.
Commission
- Company accommodation.
4. Non Competition
A copy of the aforesaid Agreement entered into between the Company and
Mr. Phillips is available for inspection by the Members at the
Registered Office of the Company, between 10.00 a.m. to 1.00 p.m. on
any working day of the Company up to the date of the Annual General
Meeting.
The Board recommends this Resolution for approval by the Members.
Memorandum of Interest
Item No. 10
The Members had, at the Annual General Meeting held on May 10,2007,
approved Rs.6 lacs p.m. as the maximum ceiling on the monthly salary
(excluding commission, PF, gratuity, superannuation, perquisites and
benefits) of Executive Directors and commission limit of Rs. 50 lacs
p.a. The Board has changed the terms of payment of salary to Executive
Directors with effect from April 1, 2008 to a maximum limit of Rs. 8.5
lacs p.m. of basic salary (excluding allowances, PF, gratuity,
superannuation, perquisites and benefits) and annual incentive
plan/commission limit of 1 % of Net Profit p.a. per Executive Director,
based on certain performance criteria prescribed by the Board, and as
may be determined by the Board from time to time, within the overall
limits prescribed under Section 198, 309, 310, 349, 350, Schedule XIII
and other applicable provisions, if any, of the Companies Act, 1956.
Memorandum of Interest
Item No. 11
AlP/Commission
- Company accommodation.
- Education Allowance.
4. Non Competition
Mr. Garg will not be entitled to sitting fees for attending meetings of
the Board of Directors or Committees thereof.
A copy of the aforesaid Agreement entered into between the Company and
Mr. Garg is available for inspection by the Members at the Registered
Office of the Company, between 10.00 a.m. to 1.00 p.m. on any working
day of the Company up to the date of the Annual General Meeting.
Memorandum of Interest
Item No. 12
The Board of Directors at its meeting held on May 10, 2007 approved the
payment of an amount higher than what the shareholders approved limit
for commission/annual incentive plan to Mr. Anand Kripalu for 2006.
This resolution seeks to ratify such payment by obtaining the
shareholders approval for payment to Mr. Kripalu, amounting to Rs.
9,30,163/- towards commission/annual incentive plan for 2006.
Memorandum of Interest
Item No. 13
(b) No shares were either purchased or sold by the Promoters during the
period of six months preceding March 31, 2008, i.e. the date of the
Board Meeting at which the Buy-back was approved and the date hereof.
11. The Company confirms that there are no defaults subsisting in the
repayment of deposits, redemption of debentures or preference shares or
repayment of term loans to any financial institutions or banks.
(i) that it has made the necessary and full enquiry into the affairs
and prospects of the Company and has formed the opinion :
(a) that immediately following the date on which the general meeting is
convened, there will be no grounds on which the Company could be found
unable to pay its debts; and
(b) as regards its prospects for the year immediately following the
date of the general meeting, that having regard to their intentions
with respect to the management of the Companys business during that
year and to the amount and character of the financial resources which
will, in the view of the I Board be available to the Company during
that year, the Company will be able to meet its liabilities as and when
they fall due and will not be rendered insolvent within a period of one
year from the date of the general meeting; and
(ii) in forming its opinion for the above purposes, the Board has taken
into account the liabilities as if the Company were being wound up
under the provisions of the Companies act, 1956 (including prospective
and contingent liabilities).
13. The text of the report dated March 31, 2008 received from Messrs.
Deloitte Haskins and Sells, the statutory auditors of the Company,
addressed to the Board of Directors is reproduced below :
Monaz Noble
Company Secretary
Another highlight of 2006 was undoubtedly the crossing of Rs. 1000 Crore
in sales - a milestone that our • business has been dreaming about and
chasing for many years. This is a testimony to the sweat, toil and
commitment of a large number of people. This is the time for us to
stand back and salute the efforts of all those who have contributed to
our business over the years.
Product Innovation is the key to growth and keeping in line with the
same, we had successful offerings like Cadbury Fruity Gems, Cadbury
Dairy Milk Eclairs Crunch and Bournvita 5 Star Magic. During the year
our brands have gained market share backed by powerful advertisement
campaigns. lam proud to inform you that at the Effie 2006 awards
organized by The Advertising Club of Mumbai, our `Pappu Pass Ho Gaya'
advertising campaign bagged two awards - Gold in the Consumer Products
category and Silver in the Integrated advertising campaign category. We
also received a bronze award at the Cannes Lions International
Advertising Festival for partnering with a mobile phone operator in
2005 to provide examination results via SMS to school children.
Your Company has always believed that good values and good business go
hand in hand. It is a part of our heritage and corporate culture.
Corporate Social Responsibility is about growing our business
responsibly. Working in partnership with the Sri Aurobindo Society, on
a five-year project, we are contributing to the redevelopment of two
villages in the coastal region of Pondicherry. The project addresses
education, health, economic development, vocational training, organic
farming, water harvesting and attitude changes including the
empowerment of women. The Company has also partnered with Vatsalya
Foundation, an NGO working with underprivileged street children in
Mumbai. Vatsalya's motto is to give the child a supportive environment
to live and study in and gain skills so that they become contributing
members of society. We support the educational needs of 100 street
children by providing them with their school fees and also other
requirements like books, stationery, uniforms, etc.
Your Company has been contributing to the international talent pool and
in line with this practice in 2006, Mr. Vidyut Arte, our Sales
Director moved to Cadbury China as Director Marketing. We have had
similar placements for international assignments at the middle
management levels as well.
I now would like to thank all the employees and all other stakeholders
for their continued valued support, which has helped in bringing
success for 2006.