INTRODUCTION TO INDUSTRY

Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. The founder,
Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera and Plague
were the common diseases. He was a physician who brought ayurvedic medicines to the masses
of Bengal. Initially established as a proprietary firm for the manufacture of chemicals and
ayurvedic drugs it was later on 19th November 1930 incorporated as private limited company.
Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri P.C.Burman in the name
of Dr S.K.Burman Pvt.Ltd. to expand the operations by setting up production facilities at Garia
and Narendrapur, West Bengal and Daburgram, Bihar.
Chyawanprash traditional polyherbal formulation, which widely used as tonic, rejuvenator, and
memory enhancer. It contains the pulp of emblica officinalis as the prime ingredient, along with
powders and extracts of several other herbs. It is observed thet the consistency and the taste etc
vary from one manufacture to another.
chayawanprash is a powerful combination of over 40 herbs and plant extracts in a base of amla.
It is completely chemical free natural and safe chyawanprash is considered a rasayana under
ayuveda characterized by benefits of maintaining youth,vigor and vitality.
The key competitor’s of dabur in the chyawanprash segment are baidyanath,zhandu and himani
which together with dabur have about 85% of india’s domestic market.
Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st
July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a fresh
certificate of incorporation was issued to that effect. In 1970, the bulk of manufacturing facilities
were shifted from West Bengal to Faridabad in Haryana.
In 1975,vidogum and chemicals were incorporated in technical collaboration with Unipekin
AG (Switzerland) for the manufacture of edible grade and industrial grade Guargum powder at
Alwar in Rajasthan.
In 1977,a modern automated plant was set up in Sahibabad (U.P.) for the manufacture of
Chyawanprash, Asavrishthas, Hair oil, Tooth powders, Hajmola, and other Ayurvedic specialties.
Certification for production of toiletries and food grade products was issued on 13th October
1986 by the registrar of Delhi and Haryana to the company, Dabur Private Limited, a closely held
Public Limited Company.

It was incorporated as a Private Ltd. Company in the name of Dabur (Dr. S.K. Burman) Pvt.

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Ltd. From a humble beginning in 1884, a manufacture of traditional medicine in Calcutta, Dabur
has come a long way to become a multifaceted multinational, multi-product, modern Indian
corporation with a global presence. It now enjoys the distinction of being the 2nd largest FMCG
Company and is praised to become a true Indian Multinational.

The main plant was set up in Sahibabad (U.P.) in 1977 for manufacturing of Chyawanprash, hair
oil, tooth powder, hajmola and other ayurvedic medicines and food products etc. Dabur's main
line of business is in the sphere of Health care, Personal care and Beauty care. Its strength lies in
natural and herbal preparations.

Dabur's corporate philosophy has always been ahead of its time. The founder's initial success
was mainly due to his direct main campaigns- a technique that became very popular nearly a
century later. The company was one of the earlier Indian companies to have fully equipped R & D
lab as early as in 1919. Today, the company has its own mainframes and computers are a way of
life here.

Dabur is also an ISO 9002 certified company. The certification was obtained in 1995 by SGS
YARSLEY international services Limited U.K. Dabur's revenue today exceed Rs.800 crores with
plans to achieve Rs.2, 000 crores by year 2003. Dabur has 34,000 shareholders with market
capitalization of over Rs.1, 400 crores.

Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East. It
has manufacturing base in Egypt also. The company has over 4,000 employees with around 1,500
looking after sales and marketing functions.

The Indian market is being served through a transactional network of sales offices and
carrying and forwarding agents. The company has its offices in London, New York and Moscow.
Dabur products are being exported to around 50 countries. Dabur portfolio is exceeding 500
products of FMCG and health care products.

The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003. Company
has recorded a growth of 36 per cent in its net profit per cent growth in its turnover during April-

2
June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs
300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.
The first quarter results should not be annualized as sales usually improve in subsequent quarters.

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 COMPANY PROFILE

More than a century ago, a young doctor started with a vision to provide innovative and
affordable health care products to Indian masses. Thus, was born an organisation today
known as Dabur India Limited. The twelve hundred crores corporate today started
with a small dispensary at Calcutta, the noble thoughts of Dr.S.K.Burman being the main
source of inspiration behind the project. From that humble beginning, the company has
grown into India’s leading manufacturer of consumer health care, personal care and food
products. This phenomenal progress has seen many milestones, some of which are
mentioned below:

 1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited.
Started from a small shop at Calcutta, he began a direct mailing system to send his
medicines to even the smallest of villages in Bengal. The brand name Dabur is
derived from the words "DA" for Daktar or doctor and "BUR" from Burman.

 1896: As the demand for Dabur products grows, Dr. Burman felt the need for mass
production for some of his medicines. He set up a small manufacturing plant at Garhai
near Calcutta.

 Early 1900s: The next generation of Burman's take a conscious decision to enter
the Ayurvedic medicines market, as they believe that it is only through ayurveda that
the healthcare needs of poor Indians can be met.

 1919: The search for processes to suit mass production of ayurvedic medicines
without compromising on basic ayurvedic principles lead to the setting up of the first

Research and Development laboratory at Dabur. This initiate a pain staking study of
ayurvedic medicines as mentioned in age old scriptures.

 1920s:A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and

Daburgram. Dabur expands its distribution network to Bihar and northeast.

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 1936: Dabur India (Dr. S.K.Burman) Pvt.Ltd. is incorporated.

 1940: Dabur diversifiers into personal care products with the launch of its Dabur
Amla Hair Oil.

 1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded
Chyawanprash of India.

 1956: Dabur buys its first computer. Accounts and stock keeping are one of the first
operations to be computerized.

 1970: Dabur expands its personal care portfolio by adding oral care products. Dabur
Lal Dant Manjan is launched and captures the Indian rural market.

 1972: Dabur shifts base to Delhi from Calcutta. Starts production from a hired
manufacturing facility at Faridabad.

 1978: Dabur launches the Hajmola tablets. This is the first time that a classical
ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.

 1979: The Dabur Research Foundation (DRF), an independent company is set up to

spearhead Dabur's multi-faceted research. Commercial production starts at Sahibabad.
This is one of the largest and most modern production facilities for ayurvedic
medicines in India at this time.

 1984: The Dabur brand turns 100 but is still young enough to experiment with new
offerings in the market.

 1986: Dabur becomes a public Limited company through reverse merger with
Vidogum Limited, and is re-christened Dabur India Limited.

 1989: Hajmola Candy is launched and captures the imagination of children and
establishes a large market share.

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  1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing
and marketing confectionery items such as bubble gums in India.

 1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.

 1994: Dabur India Limited comes out with its first public issued at a premium of
Rs.85 per share. The issue is subscribed over 21 times.

 1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch this
product. The Dabur Research Foundation develops the unique eco-friendly process of
extracting the drug from the leaves of the Asian Yew Tree.

 1995: Dabur enters into a joint venture with Osem of Israel for food and
Bongrain of France for cheese other dairy products.

 1996: Dabur launches Real fruit juices, which heralds the company's entry into the
processed food market.

 1997: The foods division is created, compromising of real fruit juices and Homemade
cooking paste to form the core of this division's product portfolio.
 1998: Project STARS (Strive To Achieve Record Successes) is initiated by the
company to achieve accelerated growth in the coming years. The scope of this project is
strategic, structural and operational changes to enables efficiencies and improves growth
rates.

 1998: The Burman family hands over the reins of the company to a professional, Mr.
Ninu Khanna joins Dabur, as the Chief Executive Officer.

 1999-2000: Dabur achieves the Rs.1000 crores turnover mark.

 2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple
active, orange active, homemade pappad, Vatika- an anti-dandruff shampoo.

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 2005: New launches homemade coconut milk (in south), Tang, Tomato puree, Vatika
light.

 2006: Dabur achieves Rs.3,184 crores turnover mark with an increase of 9 per cent.
Turnover of FMCG reaches to Rs 1356.5crores, which shows a profit of Rs. 78 crores.
Turnover of pharmaceuticals reaches to Rs 190 crores with a profit of Rs.17 crores.

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 LOCATION OF OPERATIONS

Head office : mohan nagar, Ghaziabad (U.P.)

Regd. Office : Asaf Ali Road, New Delhi
Corporate office : Kaushambi, Ghaziabad (U.P.)
Sales & Marketing : New Delhi

OFFICES:
Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar),
Ahemadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad
(A.P.), Chennai (TamilNadu), Bangalore (Kamatka), Kochi (Kerela), Guwahati (Assam),
Kathmandu (Nepal), Russia, U.K.

FACTORY:
Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani&
Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.

C&Fa:
Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.), Dehradun
(U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati (Assam), Calcutta (West Bengal),
Jaipur (Rajasthan), Ahemadabad (Gujarat), lndore (M.P.) Raipur (M.P.), Bhubaneshwar
(Orissa), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad (A.P.), Chennai (TamilNadu),
Bangalore (Karnataka), Cochin (Kerela)
THE COMPANY BUSINESS ACTIVITIES COMPRISES OF:

HEALTH CARE PRODUCTS: Markets a range of OTC health care: products based
on ayurveda, some of its products like Chyawanprash, Hajmola, Hajmola Candy, Pudinhara
are market leaders with over 65 per cent market share in their respective categories.

PERSONAL CARE PRODUCTS: It includes hair care, oral care and honey. Dabur
Amla as a brand has made its mark beyond India; it is a leading hair oil brand in Middle East
and Africa. Other well-known brands are Vatika, Dabur Lal Dant Manjan.

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AYURVEDIC SPECIALITIES: There is a range of over 400 Ayurvedic medicines. It
has vast range of classical ayurvedic drugs and priority ayurvedic medicines developed by
own R&D.

PHARMACEUTICAL DIVISION: It includes a range of natural ethical products like

Livfit, Lionitus, Legal etc, and angel of contract media and gynecological. This division has a
major presence in Anti-thronbolytic, Anti-migrane therapy and radio opaque dyes.

ONCOLOGY: The formidable range includes brands such as Intel, Docetaxel that were
manufactured in India for the first time by Dabur. The company is a market leader in this
category in India and plans to establish itself as a general Oncology player in selective global
market.

BULK DRUGS AND CHEMICALS: Dabur manufactures synthetic and semi-

synthetic bulk pharmaceutical substances, bulk natural compounds and intermediaries.
Isolation of pure natural compounds and custom synthetics are focus areas.

FOODS DIVISION: One of the youngest divisions of the company markets a range of
sauces, ethnic pastes and foods. Real fruit juices gave Indian consumer for the first time, fruit
juices with nothing artificial, no preservatives, no colour and no flavors added. Launched two
years back, the range includes Real Juices and cooking pastes under the brand name Home
Made.

NATURAL GUMS: This division manufactures and process Guar gums, Gum Karaya,
tamarind based gums and psyllium husk. The division produces a range of industrial and
grade natural gums to meet the customer specifications.

AYURVEDIC VETERINARY: It deals exclusively in animal hea1thcare. Markets safe

and non-toxic herbal veterinary products for poultry.

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 MANUFACTURING UNITS OF DABUR

Dabur India Limited has 12 manufacturing plants in India, Nepal and

Egypt.

Sahibabad unit1: Group generating a turnover of over Rs.250 crores. The key
product line of this unit includes Asavs, Hajmo1a, Hingoli, Oncology medicines, Dabur Amla
hair oil, Chyawanprash and Ashokarisht. The unit operated on these shifts as well as a general
shift, with product lines running for one, two or three shifts according to the market demand
and supply chain requirell1ents.

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Sahibabad unit 2: Recently established for manufacturing and packing Dabur hair oil in Pet
Bottles.

Baddi unit 1: The most modern plant for manufacturing ayurvedic medicines and honey, this
unit was built following stringent guideline for pharmaceutical units.

Baddi unit 2: Manufacturing one of Dabur's most popular products-Dabur Chyawanprash,

this unit also boasts of the most modern processing and packaging unit for the medicated oil
Asavrishthas.

Baddi Injectibles: This unit manufactures Oncologicals, and is certified by OGYI of

Hungary and South Africa.

Alwar: This unit manufactures food and print grade Natural gums, Psyllium Husk and
Ayurvedic Veterinary products.

Narendrapur: One of Dabur oldest plant. It produces Ayurvedic medicines and Honey.

Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to manufacture
oncology bu1k drugs of critical importance.

Katni: Set up in the heart of Amla producing belt of India. This unit manufactures Amla
pishi, an essential ingredient in Dabur Chyawanprash.

Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most important
besides Sahibabad and Baddi. This modern manufacturing unit churns out Ayurvedic
Medicines, Oral Care and Hair Care Products, Honey and Fruit Juices. It also has the facility
to process leaves of the Asian Yew Tree to extract Paclitaxel, an important part of all anti-
cancer products.

Egypt: This part was established to serve Saudi Arabia and the fast growing African market.
It manufactures Hair and Skin Care and Food products.

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 JOINT VENTURES

Dabur International Limited: Dabur has also collaborated with Bongrain of France for the
manufacture and marketing of speciality cheese and other Dairy Products. This joint venture
company has already made its presence felt in the Indian cheese market through the launch of
processed cheese under the brand name Lebon, and a specialty cheese under the brand nam.

SUBSIDIARIES

Dabur has six subsidiary units, which come under the umbrella of the Dabur India
Organisation. These are:

Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India
Limited, is spearheading Dabur's foray into food processing industry. The company, set up in
April 1999,is marketing a range of fruits juices under the brand name Real, Homemade
Cooking Paste and Sauces and Lemoneez -- lemon juice. Dabur was the first company in
India to introduce fruit juices in packaged form without any artificial additive. Real is today
the market leader in this category with more than 50 per cent market share. Homemade
cooking paste is the only national brand in this category. Lemoneez is the only product in its
category available in unique drop and trickle pack and uniquely shaped tabletop pack.

Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for
Dabur group. The company is today the leading exporter of Nepal and the third largest and
most modern manufacturing base for Dabur. Dabur Nepal is today involved in promoting
cultivation of herbs and apiculture activities in Nepal. The Company has set up state of the art
greenhouse at Banepa for developing sampling for 20 medicinal plants. Dabur Nepal has also
set up an Apiculture center for promoting bee-keeping activity in Nepal and developing
queen bee colonies for exports.

Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base
set up a couple of years back to cater to the demands of Middle East and African market is
producing Hair Care, Skin Care Products and foods.

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Dabur oncology PIc: Set up recently in UK, this subsidiary of Dabur India Limited will be
manufacturing anti-cancer formulations for European market. The company is in the process
of setting up manufacturing base near London and is expected to start operation from year
2001.

Dabur Research Foundation (DRF): Incorporated in 1979, is a premier research

organisation recognized by Department of Scientific and Industrial Research, Government of
India. It is situated at Sahibabad, Ghaziabad, Uttar Pradesh. DRF today is known for its path
breaking research in the field of health care and personal care. The foundation is on the
forefront of oncology research and is in the process of developing many new molecules to
fight with a dreaded disease like Cancer. In fact DRF was the first organisation in the world
to develop a process for extraction of Paclitaxel, a drug, for cancer without harming its source
tree. This process has now become a universal one.

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 OTHER ASSOCIATE COMPANIES OF DIL

 REROCK LIMITED.

 BRITISH HEALTH PRODUC'TS LIMITED.

 NORTHERN AROMATICS LIMITED.

 BURMAN LABORATORIES LIMITED.

 DABON INTERNATIONAL LIMITED.

 MAXCARE INTERNATIONAL LIMITED.

 PRECISE LABORATORIES LIMITED.

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 COLLABORATIONS

Dabur Foods Limited: 100% subsidiaries (taking care of all the food
products)

Dabur Nepal Limited: Wholly owned subsidiary in collaboration with DRF

Dabur Egypt Limited: Wholly owned subsidiary.

Dabur Oncology Limited: Wholly owned subsidiary.

Dabur Overseas Limited: Owned subsidiary.

Dabur International Limited: Subsidiary (not yet commenced business)

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 AWARDS
Archive

Dabur CEO Dabur CFO Dabur wins ICSI Dabur amongst The second
amongst 25 Best amongst India's National Award top 'HOT annual listing of
of the Best India's top three CFOs for Excellance in FMCG' the smartest chief
truly world class Corporate Companies financial officers
managers Governance in India Inc.

Dabur India in Dabur amongst Dabur India ranks Dabur India India's most
Forbes "Best top 10 Great 53rd Most rated IInd most valuable
under a Billion" Place to Work Valuable Indian dynamic FMCG companies
Company company

LDM into Limca Book of records 2005

 FORBES: Amongst the top 20 “Best under a billion” companies in India under $ 1
billion recognized by FORBES
 Great Places to work – Ranked 10th among the Top 25 Great Places to Work
 ICSI award for Excellence in Corporate Governance
 Market Cap crosses $ 1 billion. Best performing stock in the NSE in 2005 with
122% growth
 The Economic Times company of the year – nominated amongst the top 10.

16
  Economic Times – 42nd in the list of top 500 companies this year, 2nd in FMCG
 BT 500 – 53rd in Business Today ranking on 500 India's Most Valuable Companies
 Chairman nominated for the E&Y Entrepreneur of the year award
 CEO – Among top 25 - Smart Managers of the Year.
 Udyog Ratna for Chairman and Gr. Director from Uttranchal government and
Himachal Pradesh Government.
 Dabur Foods got 4 Awards At The 7th Annual Dairy & Beverages Seminar

Tallest inflatable and longest billboard made during the Kumbh mela and submitted to Limca

Book of records have been published in 2005 .

17
 DABUR AT A GLANCE

Dabur India Limited has marked its presence with some very significant achievements and today
commands a market leadership status. Our story of success is based on dedication to nature,
corporate and process hygiene, dynamic leadership and commitment to our partners and
stakeholders. The results of our policies and initiatives speak from themselves.

 Leading consumer goods company in India amongst turnover of Rs.1899.57 Crore (FY02)

 2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer
Health Division (CHD)

 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International
and 3 step down subsidiaries of Dabur International - Asian Consumer Care in
Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.

 13 ultra-modern manufacturing units spread around the globe

 Products marketed in over 50 countries

 Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and
over 1.5 million retail outlets all over India

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CCD, dealing with FMCG Products relating to Personal Care and Health Care

Leading brands -

 Dabur - The Health Care Brand

 Vatika-Personal Care Brand

 Anmol- Value for Money Brand

 Hajmola- Tasty Digestive Brand

 and Dabur Amla, Chyawanprash and Lal Dant Manjan with

Rs.100 crore turnover each

 Vatika Hair Oil & Shampoo the high growth brand

 Strategic positioning of Honey as food product, leading to market

leadership (over 40%) in branded honey market

 Dabur Chyawanprash the largest selling Ayurvedic medicine with

over 65% market share.

 Leader in herbal digestives with 90% market share

 Hajmola tablets in command with 75% market share of digestive

tablets category

 Dabur Lal Tail tops baby massage oil market with 35% of total share

CHD (Consumer Health Division), dealing with classical Ayurvedic medicines

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 QUALITY POLICY

At Dabur, quality is a relentless commitment to continuous improvement in products, process

and systems to provide consistent quality products to meet customer's requirements
worldwide.

In 1999-2000, overall growth of 13.5 per cent was recorded in sales (Rs.1000 crores plus)
with Family Product Division recording a growth of--15.85 per cent, Health Care Division-
12.3 per cent, Ayurvedic Specialties Division -27 per cent and Pharmaceuticals Division- 20
per cent. Exports recorded a growth of 11 per cent in 1999-2000,amounting to Rs.114.16
crores. The major contributions of growth were herbal products, bulk drugs & anti-cancer
formulations. Gross margin showed an improvement of 4 per cent and net profit amounted to
Rs.77 crores.

In 2000-01,sales turnover had recorded a growth of 12 per cent, amounting to 116.5 crores
and net profit had soured by 39.2 per cent amounting to Rs.78.5 crores. Sales turnover in light
of such growth path has been targeted for Rs 2000 crores in 2003-04.

The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003.
Company has recorded a growth of 36 per cent in its net profit per cent growth in its turnover
during April-June 2003.

The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300
crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.

The first quarter results should not be annualized as sales usually improves in subsequent
quarters.

20
 QUALITY OBJECTIVES

 To focus on customers successfully and to strive to meet their needs and requirements.

 TO manufacture effective health care products at competitive prices and to improver

the Quality of Life of common masses.

 To implement and emphasise on systems to ensure prevention of errors rather than

detection of errors.

 To ensure global competitiveness by striving to achieve Current Good Manufacturing

Practices (CGMP).

 To ensure safety in all operations and to follow the systems in all areas of operations.

 To continually train people to build up and upgrade skills and expertise and to involve
them to become committed to the quality process.

 To reduce wastages within the organisation and increase productivity.

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 IMPORTANT STRATEGIES ADOPTED

 "Developing to built" philosophy for HR personnel.

 Shifting to zonal set up of sales and marketing to facilitate better distribution.

 Adopting contribution enhancement plan for performance management.

 Empowering employees through Employee Stock Purchase Option Plan.

 Backward integration strategy in Ayurvedic Products by engaging in plantation of

herbs needed for the production of Ayurvedic Products.
 Continuous enhancement of automation.
 Continuous emphasis on Research & Development (DRF i.e. Dabur Research
Foundation is a separate company working in collaboration with Dabur solely for the
purpose of R&D

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LEVEL STRUCTURE OF ORGANISATION

Vice President

General Manager

Deputy General Manager

Senior Manager

Manager

Assistant Manager

Officer

Assistant Officer

Supervisor/Chemist

Senior Mechanic/Senior Assistant

Mechanic/Junior Chemist

Union Mechanic

Workers

23
 KEY PEOPLE

MANAGEMENT, DIRECTORS AND BANKERS

CEO Mr. Nunu Khanna

LIST OF DIRECTORS

DESIGNATION NAME
Chairman Mr.Vivek Chand Burman

Vice Chairman Dr.Anand Burman

Directors Mr.Ashok Chand Burman

Mr.Siddharth Burman

Mr.Pradip Burman

Mr.Amit Burman

Mr.S.M.Dutta

Mr.Ashok Geonka

Air Chief Marshal Nirmal Chand

Suri (Retd.)

Mr.Uday S.Kotak

His Highness Maharaja Gaj Singh

Raja Vijay Karan

Mr.Pritam Das Narang

Mr.Ajay Bahl

Mr.P.N.Vijay

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BANKERS

Punjab National Bank, ANZ Grendlays Bank Ltd., American Express Bank Ltd, The Hong
Kong & Shengai Banking Corp. Ltd., State Bank Of India, Deutsche Bank AG, ABN Amro
Bank NV, Citibank NA, United Bank Of India.

ECO-FRIENDLY DABUR
Dabur is committed to maintaining the ecological balance. It understands the need for a
healthy and eco-friendly environment for the existence living beings. The company's
reforestation program aims at planting medicinal herbs, plants and trees in the Himalayan
range extending in to Nepal. An in-house tissue culture program actively supports this
exercise.

PERSONNEL DEVELOPMENT IN DABUR

 Personnel department is headed by Vice- President (HR)
 Functions of Vice President (HR)
 Personnel administration
 Recruitment and Promotion
 Industrial Relations
 Human Resource Group
 Human Resource Development
 General Administration and Welfare
 Public Relations
 Security/Fire Vigilance
 Medical Services
 Implementation Of Official Language Policy (Hindi)
 Land Acquisition
The above functions are grouped under different General Managers/Deputy General
Managers. These executives provide support to Vice President (HR) on different issues,
which arise in Headquarter/regional offices and field. Vice President (HR) has the
responsibility of keeping the Board of Directors informed on the above mentioned personnel
activities and also on Industrial Relations. In addition to this, he is also expected up date

25
senior officials in their respective areas
BRINGING UP DABUR

Dabur has made a mark and created a space for itself while catering to the needs of the Indian
customers. It fulfills all their requirements while assuring the quality product. Asking about
the name of the five largest FMCG companies in India one is likely to dash of one of that
own desi -sounding brands like Chyawanprash, Vatika, Hajmola etc. This is the stand of
Dabur that it has acquired over the years. Dabur India Ltd. is the India's fourth largest FMCG
Company, having a turnover in fiscal 2000-01 at Rs.1,167 Crores, ahead of big and mighty
multinationals such as Proctor & Gamble, Rickitt and Coloman, Johnson & Johnson.

The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003.
Company has recorded a growth of 36 per cent in its net profit per cent growth in its turnover
during April-June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300
crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.

The first quarter results should not be annualized as sales usually improve in subsequent
quarters.
However, most of its turnover comes from two divisions -Family Product Division (FPD),
accounting for 40 percent, and secondly, Health Care Division (HCD), which accounts for 30
per cent. FPD is Dabur's biggest, having the biggest product -Dabur Amla Hair Oil, and a
brand of Rs.160 Crores in fiscal 1999-2000.The strategies in the hair care market emphasis
brand extension. It plans to launch two new products, Amla light and Vatika light over the
next few months.

A separate company, Dabur Foods, looks after food products such as real fruit juice and
homemade of pastes. Dabur sees a lot of potential in the "real" brand-currently Rs.30 crores
brand, which claims 3 per cent market share.

Two another divisions of Dabur, Ayurvedic specialties, and Pharmaceuticals, constitute 8 per
cent and 7 per cent respectively of its turnover.

26
 The Pharmaceuticals division is internally considered of great promise with the potential of
producing safe medicines much required by mankind. Its most promising product is anti-
cancer drug, Intaxel, which is prepared of ingredients from the Himalayan Yew Tree.

Dabur Amla, which is derived from vegetables and minerals, has an 80 per cent market
share in the heavy perfume hair oil segment. The other leading brand in the Hair Care
Division, Dabur
Vatika shampoo was launched at the end of 1998.In the
fiscal year 1999-2000,it was Rs.2 crores brand with a 30 per cent market share of Rs.75
crores herbal shampoo market.

All the products of Dabur are prepared from natural extracts; they are pure and nutrition.
Dabur's brand offers products both for fun or health; Dabur has a brand to match to the
demands of majority of cross-section of the people across various market segments, different
cultures and also tries well to cater to the global demands.

27
 WELFARE ACTIVITIES AT DABUR

 FESTIVAL CELEBRATIONS: Dabur celebrates the festivals with its employees

and sweets are distributed. This helps to maintain constant interaction with the
employees and the employees in turn feel assured thus boosting their morale.

 RECREATIONAL TOUR: An annual recreational tour is organized and 50 per cent

of the expenses are borne by the organisation. This helps in enhancing togetherness
among the employees.

 IT'S NOT ALL WORK AND NO PLAY: Dabur does not expect its employees to
work all day long because the work gets monotonous, resulting decrease in the
efficiency. Hence, Dabur has formed Dabur Cricket Club and also provides the
facilities for indoor games like table tennis.

 MEDICAL ATTENTION: At Sahibabad Factory, two part time doctors and two full
time nurses are available round the clock to ensure health and safety of workers.

 UNIFORMS: To maintain uniformity in the factory premises the uniforms are

provided both for summer and winter with a pair of shoes.
 STAFF BUSES: The organisation provides the facility of buses to its employees to
help in easy commutation.

 MESS FACILITIES: The Company provides the facility of mess to its workers as
well as staff. A contractor manages it proper hygienic conditions are maintained.
Employees of Grade V and above use the Executive Mess.

 STAFF SALE: The Company provides products to its employees at a concessional

rate through the staff sales canteen.

 HIRE/PURCHASE SCHEME: Sale of consumer items is organized for the

employees of Dabur on a yearly basis under the welfare scheme.

28
 POST OFFICE SALARY SAVING SCHEME: Under this scheme, employees and
their family members can open a recurring deposit account with Bharat nagar Post
Office.

 BLOOD DONATION: Dabur organizes blood donation camps at Sahibabad factory

in association with the Lions Club Of Delhi Cosmopolitan, in the month of
February/March every year.

 CHUNNI LAL MEDICAL TRUST: Dabur rightly believes in following the path of
its founder-Dr.S.K.Burman-to serve the poor and the needy. The Chunni Lal Trust was
established to achieve this goal.

 SUNDESH-HELPING PEOPLE THEMSELVES: Established in Nov.1993,

Sustainable Development Society (SUNDESH) is a registered voluntary
organisation. It aims at improving the Quality of Life of the rural people in its area of
operation.

 Dr.S.K.BURMAN CHARITABLE TRUST: This trust provides

reimbursement for workers who cannot afford their medical expenses.

 PARKING FACILITY: There are separate parking space for cars/scooters and motor
cycles/cycles and that too free of cost.

 LONG SERVICE AWARDS: Employees belonging to grade I &IX, who have put in
10 years of service with the company are given Meritorious Services Award
Certificate along with a Titan wrist watch and on completion of 25 years of service,
they are given 4 silver glasses along with the certificate.

29
 CORE VALUE
VISION

MISSION
"To be the leader in the Natural Foods & Beverages Industry."

Strive to deliver this by:

 Consistently delighting the consumer through
 Being the company of choice for our business
 Delivering higher returns to stakeholders

30
 RECRUITMENT AND SELECTION

RECRUITMENT

Recruitment and selection are the most important functions in an organisation because with
the help of these functions the management selects the best available candidate from a batch
of them. The organisations, in this growing competitive world, need to have the best of the
manpower so as to have an edge over its competitive.

According to Flippo, "Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation."

In the words of Yoder,"Recruitment is a process to discover the sources of manpower to meet

the requirements of the staffing schedule and to employ effective measured for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force."

The recruitment needs can be classified into-

 Planned.
 Anticipated.
 Unexpected.

Planned need arise from changes in the organisation and retirement policy. These occur due
the expected changes in the organisation so the management can make a proper policy for it.

Anticipated need refer to the movements in personnel which an organisation can predict by
studying the trends in the internal and external environments.

Resignations, deaths, accidents and illness result in to the unexpected needs.

31
 FEATURES

 Recruitment is a process or a series of activities rather than a single event.

 It is a linking activity as it brings together the employers and employees.

 It is positive process because in this activity the employers want to have the
maximum number of job seekers so as to have a wider scope for choice
ultimately leading in spotting right persons for job.

 It is an important function as it makes it possible to acquire the number and

type of persons required for the effective functioning of the organisation.

 It is an on going function in all the organisations, but the volume and nature of
recruitment varies with the size, nature and environment of the organisation.

 It is a complex process because a number of factors affect it --the nature of the

job offered, image of the organisation, organizational policies, working
conditions etc.

SOURCES OF RECRUITMENT:

The various sources of recruitment are -

 Internal Sources: Include-
 Present Employees who can be transferred or given promotions.
 The retired and retrenched employees who want to return to the company.
 Dependents and relatives of the deceased and disabled employees.

 External Source: Consist of-

 Press advertisements.
 Campus Interviews.
 Placement Agencies.

32
  Recommendations.
 Recruitment at factory gate.

 Employment Exchanges
During my short stint at DIL, it was observed that the recruitment need of DIL is
diversified. It needs persons who have knowledge of use, processing of natural
ingredients of number of varied products, technical know-how of latest industrial
technical knowledge, and computer applications to pharmaceutical industry to manual
workers. The importance of the process could be understood that the present work force
of DIL is 2,500 employees. Hence, the recruitment and selection procedure should match
the complexities of the need and at the same should commensurate with the complex need
of the organisation.

SELECTION
Selection is the process of choosing the best candidate out of the all the applicants. In this
process, relevant information about the applicants is collected through a
series of steps so as to evaluate their suitability for the job to be filled.

It is the process of matching the qualifications with those required for the job so that the
candidate can be entrusted with the task that matches with his credibility.
It is a process of weeding out unsuitable candidates and finally identifying the most suitable
candidates.

This process divides the candidates into two categories-the suitable ones and the unsuitable
ones. The suitable people prove to be the asset for the organisation. Selection is a negative
process because in this process the management tries to minimise the number of people at
each step so that the final decision can be in the light of all the factors and at the end of it best
candidate is selected. Selected candidate the has to pass through the following stages-

 Preliminary Interview.
 Application Form.
 Selection Test.

33
  Selection Interview.
 Physical Examination.
 Reference Check.
 Final Approval.
 Employment.

Preliminary Interview is the initial screening done to weed out the undesirable candidates.
This is mainly a sorting process in which the prospective candidates are given the necessary
information about the nature of the job and the organisation. Necessary information about the
candidate is also taken. If the candidate is found suitable then he is selected for further
screening else he is dropped. This stage saves the time and effort of both the company and the
candidate. It avoids unnecessary waiting for the candidate and waste of money for further
processing of an unsuitable candidate.

Application Form is a traditional and widely used device for collecting information from
candidates. This form asks the candidates to fill up the necessary information regarding their
basic information like name, address, references, date of birth, marital status, educational
qualifications, experience, salary structure in previous organisation and other such
information. This form is of great help because the scrutiny of this form helps to weed out
candidate who are lacking in education, experience or any other criterion provided by the
organisation. It also helps in formulation of questions, which will be asked in the interview.
These forms can also be stored for future references thus maintaining a databank of the
applicants.

Selection Tests are being increasingly used in employee selection. Tests are sample of some
aspect of an individual's attitudes, behavior and performance. It also provides a systematic
basis for comparing two or more persons. The tests help to reduce bias in selection by serving
as a supplementary screening device. These are also helpful in better matching of candidate
and the job. These reveal the qualifications, which remain covered in application form and
interview.

Selection Interview involves the interaction of the employer and the employee. Selection
involves a personal, observational and face-to-face appraisal of candidates for employment. It
is an essential element of the selection procedure. The information obtained through

34
application form and test can be crosschecked in the interview.

The applicants who have crossed the above stages have to go through Physical Examination
either by the company's physician or the medical officer approved for the purpose. The main
aim is to ensure that the candidate is physically fit to perform the job. Those who are found
physically unfit are rejected.

The next stage marks of checking the references. The applicant is asked to mention in his
application form the names and addresses of two or three person who know him well. The
organisation contacts them by mail or telephone. They are requested to provide their frank
opinion about the candidate without incurring any

liability. The opinion of the references can be useful in judging the future behaviour and
performance of a candidate.

The executives of the concerned departments then finally approve the candidates short-listed
by the human resource department. Employment is offered in the form of an appointment
letter mentioning the post, the rank, the salary grade, the date by which the candidate should
join and other terms and conditions in brief. Appointment is generally made on a probation of
one or two years. After satisfactory performance during this period the candidate is finally
confirmed in the job on permanent basis or regularized.

Selection is an important function as no organisation can achieve its goals without selecting
right persons for the required job. Faulty selection leads to wastage of time and money and
spoils the environment of an organisation. Scientific selection and placement of personnel can
go a long way in building up a stable workforce. It helps to reduce absenteeism and labor
turnover. Proper selection is helpful in increasing the efficiency and productivity of the
entrepreneur.

35
36
This project entitled Recruitment and Selection in Dabur India Ltd (DIL) is aimed at studying the
recruitment and selection procedures at DIL. Recruitment and selection procedures of any
organisation are very important functions because these decide the most suitable manpower
which steers the industry to its desired goals.

The main objectives of this project are:

 To study the Recruitment and Selections procedures used at DIL.
 To analyze the effectiveness of this very important function in terms of development of the
organisation and the individual.

37
 RECRUITMENT AND SELECTION PROCEDURE
IN DABUR INDIA LTD

Dabur India Ltd. selects the future employees keeping everything in mind right from the
qualification of the employees to the future prospects-both of the organisation and the
employees.

The first step involves the filling up of Manpower Indent Form. This form is filled up by
the department, which is having the vacancy. The form consists of various questions which
are to be answered like if the current vacancy is a replacement vacancy, its reason is to be
specified -the factors which resulted it like death, retirement etc.

The department is required to give the qualifications that the future candidate should possess.

In the next step, this form is given to the Human Resource (HR) department; this department
sees if the position can be filled through internal sources. The internal sources can be
transfers, promotion etc. In the case of internal sources, the recommendations of the
employees are not taken into consideration. If the HR department does not find suitable
candidate within the organisation then this department has to give reasons for it. The form
then goes to the Corporate HR for its approval.

When the suitable candidate is not available within the organisation, the organisation then
moves to the outside world for filling up the vacancies.

If the number of employees required is large then the company has in its consideration three
ways-

 The Data bank of the organisation.

 Advertisements.
 Contacting large consultants.

38
The company maintains a databank of the candidates, which is used when the number of
vacancies to be filled up is large. The sources of databank can be the qualified candidates
who had applied in the organisation earlier but due to some reasons could not join the
organisation.

Advertisements are the second big source to attract the candidates. These are having much
larger scope and reach to a number of people. The qualifications required by the organisation
and the criteria could be described in detail.

Large number of consultants also constitutes a big source. Many people register themselves
with these consultants and they act as a bridge between the organisation and the candidates.
The consultants provide the company required details about all criteria. These consultants are
fixed for the organisation, which are chosen on the basis of their performance. In case of
overseas recruitment it is checked whether their Indian counterparts can perform the job
efficiently or not. If need arises then they are also taken through consultants.

But if the number of vacancies is very small then the organisation takes the help of the local
consultants.

The candidates are then required to fill up the Application Form. This form requires the
candidate to fill the details regarding the previous employment, if any and his personal data.
The form is having details regarding like the marital status, organisation structure, the
position held by the candidate, his salary structure, the top three deliveries to the organisation
that proved to be beneficial to the organisation, career goals, his strengths and weaknesses
etc.

After the application form has been duly filled and submitted, the selection process starts
wherein the candidate has to pass through various stages and interview. The interview panel
consists of the persons from Corporate (HR), and other persons including the executives from
the department for which the vacancy is to be filled.

The selected candidates are then short-listed. The short listed candidates are then given
priority numbers; this is due to the reason that sometimes the candidate who is having first
priority is unable to join the organization due to some reasons then in that case the candidate

39
next in the priority list is given preference.
The candidate has to under go medical examination and his credentials are verified.

After qualifying these stages, the candidate is then absorbed in the organisation and explained
his/her duties. This phase marks the end of the selection procedure.

Dabur India Ltd. Also performs Campus interviews as and when the need arises. The
esteemed organisation also provides apprentice training-wherein the organisation trains the
people in the working of the organisation and gives then stipend. If these trainees are found
useful to the organisation then they are absorbed in the organisation else they are given
certificate so that they can show this as an experience and get a job elsewhere.

40
 RECRUITMENT SELECTION & PROCEDURE

GUIDING PRINCIPLES

VISION STATEMENT

"Together we create the enterprises of tomorrow"

MISSION STATEMENT

"To provide world-class information technology solutions and services to enable our
customers to serve their customers better"

OBJECTIVES

MANAGEMENT OBJECTIVES
To fuel initiative and foster activity by allowing individuals freedom of action and innovation
in attaining defined objectives.

PEOPLE OBJECTIVES

To help people in Dabur India Limited. share in the company's successes, which they make
possible; to provide job security based on their performance; to recognize their individual
achievements; and help them gain a sense of satisfaction and accomplishment from their
work.

QUALITY POLICY

"We deliver defect-free products, services and solutions to meet the requirements of our
external and internal customers, the first time, every time"

CORE VALUES

 We shall uphold the dignity of the individual

 We shall honor all commitments
 We shall be committed to Quality, Innovation and Growth in every endeavor
 We shall be responsible corporate citizens

Recruitment is a process to discover the sources of manpower to meet the requirement .It is
the process of seeking and attracting the right kind of people to apply for a job in an
organization .The aim of an effective recruitment program is to attract the best people for the
job and aid the recruiter by making wide choice available.

FACTORS EFFECT RECRUITMENT:

41
Internal Factors:
1. Size of the organization
2. Image of the organization
3. Image of job.

QUALITY
Philosophy of Quality

"We shall deliver defect-free products, services and solutions to meet the requirements of our
external and internal customers, the first time, every time."

To exist as a market leader in a globally competitive marketplace, organizations need to adopt

and implement a continuous improvement-based quality policy.

One of the key elements to Dabur India Limited.'s success is its never-ending pursuit of
superior quality in all its endeavors.

Dabur India Limited. Infosystems believes in the Total Quality Management philosophy as a
means for continuous improvement, total employee participation in quality improvement and
customer satisfaction. Its concept of quality addresses people, processes and products.
Over the last 30 years, we have adapted to newer and better Quality standards that helped us
effectively tie Quality with Business Goals, leading to customer and employee satisfaction.

RECRUITMENT

Once the required number and kind of human resources are determined, the management has
to find the places where required human resources are or will be available and also find the
means of attracting them towards the organization before selecting suitable candidates for
jobs. All this process is generally known as recruitment.

Some people use the term ‘recruitment’ for employment. These two are not one and the same.
Recruitment is only one of the steps in the entire employment process. Some others use the
term recruitment for selection. These two terms are not one and the same either.

Technically speaking the function of recruitment precedes the selection function and it
includes only finding, developing the sources of prospective employees and attracting them
to apply for jobs in an organization,
Recruitment is defined as, “a process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient workforce.

42
OBJECTIVES OF RECRUITMENT

 To analysis the recruitment and selection process of dabur chayawanprash Ltd.

 To find out weather the recruitment and selection process is able to select the right
employees at various part.
 To find out the what are the sources through which recruitment and selection process
can be carried out.
 To find out the role of reference in reqruitment and selection.
 To find out the justification of reqruitment process which is being carried out in the
company.
RECRUITMENT refers to the process of finding possible candidates for a job or
function, usually undertaken by recruiters. It also may be undertaken by an
employment agency or a member of staff at the business or organization looking for
recruits. Advertising is commonly part of the recruiting process, and can occur
through several means: through online, newspapers, using newspaper dedicated to job
advertisement, through professional publication, using advertisements placed in
windows, through a job center, through campus graduate recruitment programs, etc.

Suitability for a job is typically assessed by looking for skills, e.g. communication skills,
typing skills, computer skills. Evidence for skills required for a job may be provided in the
form of qualifications (educational or professional), experience in a job requiring the relevant
skills or the testimony of references. Employment agencies may also give computerized tests
to assess an individual's "off-hand" knowledge of software packages or typing skills. At a
more basic level written tests may be given to assess numeracy and literacy. A candidate may
also be assessed on the basis of an interview. Sometimes candidates will be requested to
provide a résumé (also known as a CV) or to complete an application form to provide this
evidence.

In some countries, such as the United States, it is legally mandated to provide equal
opportunity in hiring.

COMPLEXITY OF THE FUNCTION OF RECRUITMENT

43
 Performing the function of recruitment i.e. increasing the selection ratio is not as easy as it
seems to be. This is because of the hurdles created by the internal factors and external factors
which influence an organization. The first activity of recruitment i.e. searching for
prospective employees is affected by many factors like:

1. Organizational policy regarding filling up of certain percentage of vacancies by

internal candidates.
2. Local candidates (sons of soil).
3. Influence of trade unions;
4. Government regulations regarding reservations of certain number of vacancies to
candidates based on community/region/ caste/ sex;
5. Influence of recommendations, nepotism etc. As such, the management is not free to
find out or develop the source of desirable candidates and alternatively it has to divert
its energies for developing the sources within the limits of those factors though it
cannot find suitable candidates for the jobs.

RECRUITMENT PROCESS

Determining Scrutinizing/
manpower Ddddddd
Sourcing Shortlisting Filtering
requirement Candidates

Selection
+ Interviewing
Evaluation

44
 RECRUITMENT PROCESS OF ENGINEERS

START

Manpower planning is Candidate goes

done in accordance through HR round of
with annual budget interview
In case of additional
requirement, deptt
head fills MRF, then it
goes for approval by Has No
higher authorities candidate
qualified
1st round
Manpower approved to of
be plotted by carrying interview? I
out job description
I
Yes

Candidate goes
HR goes to the through technical
training placement round of interview
office (Campus)

HR gives the pre- No

placement talk (PPT)
Has candidate
briefing about the job
qualified 2nd
round of
interview?
Candidate goes
I
through technical and
analytical test Yes I

In case of B.Tech,
Candidate appears for
NO Yes the psychometric test
Has the before final round of
candidate interview
cleared
I the test?
I

45
I
I
Has
candidate
His/her cleared all
candidatur rounds?
e is not
considered

NO

Candidate is selected
and the same
recruitment process
further is followed

END

46
STEP 1: The recruitment process starts with manpower planning. Manpower planning is
done in accordance with annual budget. In case of additional manpower requirement, the
department head fills up the manpower requisition form. (Refer annexure)

STEP 2: The concerned requisition then goes to higher authorities for the position approval.

STEP 3: Manpower approved to be plotted by carrying out job description involving the
skills, knowledge and the kind of candidate required.

STEP 4: HR goes to training placement office or campus in search of Diploma-

holders/B.E/B.Tech. In case of recruitment of engineers only campus placements are
considered, no other source is considered.

STEP 5: HR gives pre-placement talk (PPT) that describes about the job, career path, how
candidate will grow in the respective job and the like.

STEP 6: Candidate is put through analytical and technical test. Once the candidate cleared
test, he/she goes through the first round of interview.

STEP 7: The HR takes first round of interview; this is mainly to assess the candidate’s
communication skills, presentation skills and how well he/she fits into the organizational
culture. After qualifying the first round, the candidate goes through the second round of
interview.

STEP 8: Second round of interview is the technical round taken by functional manager. In
the technical round mainly candidate’s overall knowledge and expertise are judged.

STEP 9: Having being qualified the second round of interview, if the candidate is
B.E/B.Tech, he goes through psychometric test. In case of diploma-holders no psychometric
test is taken up.

STEP 10: After psychometric test, there is an HR round where the salary of the candidate is
negotiated.

47
 INTRODUCTION TO THE PROBLEM

Recruitment and selection can turn into a very complex task if not carried out

correctly. Choosing the right person for the fob is important to both the

business and the dynamic of the company so it’s time to invent a smooth

process.

The most common error many employer make is failing to advertise the new

vacancy in house before placing it online.in some cases the very best

employee for the job may already be located in the company.

48
 PURPOSE OF THE STUDY

The concept of recruitment and selection procedure has been one of the most important and

positive developments in the sphere of human resource management in recent years. This

section examines current practices and decision-making in recruitment and selection. They

are critical elements of effective human resource management. We cannot discuss how

recruitment and selection take place without asking why certain techniques are used in

preference to others. Within the HRM paradigm, they are not simply mechanisms for fillinz

vacancies. Recruitment and redundancy can be viewed as key 'push' and 'pull' levers for

organizational change.

Recruitment and selection became one of the most widely used management tools despite

widespread criticism of its effectiveness. In theory, Recruitment is the process of searching

prospective employees and stimulating and encouraging them to apply for jobs in an

organization. Recruitment needs are of three types- planned, anticipated and unexpected.

Planned needs arise from changes in organization and retirement policy.

Resignations, deaths, accidents and illness give rise to unexpected needs. An anticipated need

refers to those movements in HR which an organization can predict by studying trends in the

internal and external environments.

 Recruitment is a process or a series of activities rather than a single act or event.

 Recruitment is a linking activity as it brings together those with jobs and those

seeking jobs.

 Recruitment is a process or a series of activities rather than a single act or event.

49
 Recruitment is a positive function as it seeks to develop a pool of eligible persons

from which most suitable ones can be selected.

RESEARCH
METHODOLOGY

50
51
 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

 To analysis the recruitment and selection process of dabur chinampas ltd.

 To find out wealth the recruitment and selection process is able to select the right
Employee at various.

 To find out what are the process of resources through which recruitment and
selection process can be carried out.

 To find out the role of reference in recruitment and selection process.

 To find out the justification of recruitment process which is being carried out in the
company.

RESEARCH DESIGN

Types of Research

Research can be classified by purpose or by method. If we categorise it by purpose, it would

fall into two major categories: Basic Research and Applied Research, while in case of

method, it would be deductive research and inductive research.

 Basic Research

Also called Pure or fundamental Research, it is undertaken for increase in knowledge. There

is no direct benefit as it is a research for the sake of research. It is conducted to satisfy any

curiosity such as:

52
 (a) What makes things happen,

(b) Why society changes and

(c) Why social relations are in a certain way.

In fact, it is the source of most new theories, principles and ideas. Basic research rarely

helps anyone directly. It only stimulates new ways of thinking. The main motivation is to

expand man's knowledge. There is absolutely no commercial value to the discoveries

resulting from such research.

However, in the long run, it forms the basis of applied research or development commercial

products. If basic work is done first, then applied spin-offs often eventually result from this

research. As Dr. George Smoot of LBNL says, "People cannot foresee the future well

enough to predict what's going to develop from basic research. If we only did "applied

research", we would still be making better spears."

To sum up, basic research is purely theoretical to increase our understanding of certain

phenomena or behavior but does not seek to solve any existing problem.

 Applied Research

It is use of basic research or past theories, knowledge and methods for solving an existing

problem. It deals with practical problems. It is opposed to pure research which is not

problem-oriented but for the increase in knowledge which may or may not be used in future.

In the present world situation, more emphasis is being given to applied research to solve

problems arising out of overpopulation and scarcity of natural resources.

 Scientific Research

Main article: Scientific method Primary scientific research being carried out at the Microscopy
Laboratory of the Idaho National Laboratory. Generally, research is understood to follow a certain

53
 structural process. Though step order may vary depending on the subject matter and researcher, the
following steps are usually part of most formal research, both basic and applied:

Sampling Method : Random Sampling

Sample Size : 50 Employees

Data Sources

 Primary Data

The data is collected directly from each and every customer.

 Pilot Survey

A pilot survey was conducted to understand the factors, which would positively influence

the customer. Personal Interviews totaling 20 were conducted for the sales team, potential

customers and the existing customers of Lakshmi Hyundai. The factors scoring high in the

interviews were considered to be the key deliverables.

 Survey Research

The research was done to learn about people’s preferences and satisfaction of the Lakshmi

Hyundai customer.

Research Tool

Questionnaire (primary tool- attachment 1)

Interview through questionnaire method was employed for the research purpose. The

questionnaires were individually administered to each customer to ensure minimum scope

for faulty data entry and error of understanding. This method also gave the interviewer the

scope of entering into a dialogue and understanding the customer’s perception better.

54
 The questionnaire tried to capture the responses of the customers mainly on the key

deliverables, derived from the pilot survey conducted, and a few questions have been

included to gauge the level of satisfaction and to gain insight into customer expectations.

 Sampling Unit: In this study the sampling unit used is the existing customer base of

Lakshmi Hyundai. Selection is made from the list of Customers during the last one year.

 Sampling Size: Sample size was chosen to be 100.

 Sampling Procedure: Simple Random Sampling.

In simple random sampling, each member of the target population has the same chance.

SCOPE OF THE STUDY

 To ensure all recruitment and selection procedure comply with the Equal Opportunity
Policy.

 To ensure that all appointments are made on merit to attract sufficient applications
from potential candidates for appointment with the skills, qualities abilities,
experience and competencies deemed as being necessary to the job.

 To develop and maintain procedure which will assist in ensuring the appointment of
the most suitable candidate.

 To ensure that recruitment procedure are clear, valid and consistently applied by
those involved in recruitment and that they provide for fair and equitable treatment
for those who apply for employment.

o To base selection decisions and criteria directly on the demands and requirements of
the job and the competencies identified as necessary for satisfactory performance

55
DATA ANALYSIS
&
INTERPRETATION

56
QUESTION: What are the sources for recruitment and selection?

Sources of recruitment No of sources % of sources

Internal 9 9%

External 18 18%

Both 73 73%

Total 100 100%

9%

57
 18%

73%

INTERPRETATION

About 75% of the manager say that they prefer both internal as well as external source
for recruitment and selection whereas only 9% go for internal source and 18% go for
external sources .
The company basically adopted both the sources of recruitment that is internal
and external that is basically due to the reason that neither than internal
resources is perfect in itself to the company adopted both the sources of
recruitment.

58
Question: Which method do you mostly prefer for recruitment and selection
preferred way of recruitment?

Method of recruitment and No. of respondent % of respondent

selection preferred

Direct Indirect 65 65%

Indirect 32 32%

Third Party 3 3%

Total 100 100%

3%

32% 65%

59
 INTERPRETATION

About 65% of the mangers go for direct recruitment and selection and 32% go for
indirect and only 3 % go for third party recruitment way. In third party method company use
labor contractor for hiring these candidates belongs to third party but work for company.
The question aimed to select the method for recruitment and selection . the company
is adopted many types of method for recruitment and selection that are direct , indirect
and third party that is basically due to the reason that neither direct method is
perfect nor indirect method is perfect in itself that’s why company preferred these
methods.

60
Question: When do you prefer to go for manpower planning?
Timing No of prefer % of prefer

Yearly 20 20%

Quarterly 50 50%

No fixed time 30 30%

Total 100 100%

30% 20%

50%

61
 INTERPRETATION

Around 50% of the managers go for Quarterly manpower planning and 20 % do not
follow any pattern they don’t have any fixed time where as 20% go for yearly. This
question aimed at analyzing the preference of timing for manpower planning here
the company prefer yearly, quietly And no fixed time most no. of manager go for
quietly planning due to the some reason some part of the manager do not follow
any pattern because the thinking of preference of all the managers are not equal so
that’s why prefer quietly, yearly and no fixed time.

62
Question: What form of interview did you prefer?
Prefer interview No. of prefer interview % of prefer interview

Personal interview 40 40%

Telephonic interview 30 30%

Video confrences 20 20%

Other 10 10%

Total 100 100

10%

40%
20%

30%

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 INTERPRETATION

Most of the manager Prefer Personal interviews, 30% prefer to take telephonic
interviews where as only 20% go for video conferencing and rest 10% adopt some
other means of interviews . The company preferred many types of ways to take
interview that are personal interview, telephonic interview, video conferences
and other. The company preferred many ways to take interview because every
way of take interview is not perfect . there’s no one-size-fits-all approach when
it comes to hiring talent, and hiring strategies vary depending on the needs of
the employer.

64
 Question: How do you rate the HR practices of the company?
Rate of HR practices No of rate of HR practices % of rate of HR practices

Very good 30 30%

Good 40 40%

Average 20 20%

Bad 10 10%

Total 100 100

10%

30%

20%

40%

65
 INTERPRETATION

50% of the managers feel that HR department is good where and 30%say that’s its
very good where as 20% says its average and only 10% manager feel it’s bad. The
company that are trying to change weather to become better corporate citizens
or simply more successful a smart and flexible HR is crucial. The question
aimed at analyzing the HR practices to improve the HR department.

66
 Question .What are the sources that are adopted for recruiting & selecting the
candidates?
Sources are adopted for recruitment and No of sources are adopted for recruitment
selection the candidate and selection candidate
Internal 1.75
External 1
Both 6.25
Total 8.00

INTERPRETATION

67
7 out of 10 employees said that both internal & external sources are used for
recruiting & selecting the employees.2 out of 10 employees said that internal sources
are used for recruiting & selecting.While 1 said that external sources are used for
recruiting & selecting the employees.The sources which are adopted by the
company is internal and external sources the internal and external both sources
are use to hire the employees

68
Question.What type of interview is conducted at the time of selection process?

Name of respondent No. of respondent

Panel 10
Group 4.95
Formal 4.5
Informal 0
Total 18

INTERPRETATION

69
 4 out of 10 employees said that formal interview is conducted at the time of selection
process.4 out of 10 employees said that group interview is conducted at the time of
selection Rest 2 employees said that panel interview is conducted at the time of
selection process. In the process of recruitment and selection various types of
interview are conducted that are panel group formal and informal.

Question.CANDIDATES WILLINGNESS TO JOIN THE COMPANY

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Employees willingness No. of willingness % of willingness
Reputation of the company 17 17%
Working environment 5 5%
Salary package 16 16%
Job prospect 11 11%
Location of the company 5 5%
Career growth opportunity 23 23%
Total 100 100%

Chart Showing Employees Willingness to

Join the Company

17%
23%

5%

28%
11%

16%

Reputation of the Company Working Environment Salary Package

Job Prospect Location of the Company Career Growth Opportunity

INTERPRETATION

71
From the chart it can be understood that most of the employees are inspired by the
working environment of the company. It is followed by career growth, reputation of
the company and salary package which comprises 23%, 17% and 16% respectively.
Job prospect plays a minor role in the minds of a candidate who had already joined
the company.Location of the company (which comprised 5% of the sample size) is a
hardly noticed factor for joining a company.

MOST PREFERRED SOURCES OF RECRUITMENT

72
Preferd sources of No. of preferred % of preferred
recruitment

Internal 38 38%

External 29 29%

Both 33 33%

Total 100 100%

Chart Showing Preferred Sources of Recruitment

33%
38%

29%

Internal External Both

INTERPRETATION

73
 I tried to find out the most common sources of recruitment in the company. The
Company, for recruitment, mostly depends on internal sources because it is cost
saving, time saving as there is no need to go for long process i.e. from inviting
applications for the job to the final selection.

Question.-BEST WAY TO RECRUIT PEOPLE

Way to recruit people No. of ways % of ways

74
Advertisement 28 28%

Placement consultant 37 37%

Variable 20 20%

Job portal 15 15%

Total 100 100%

Chart Showing the Best way to Recruit People

15%
28%

20%

37%

Advertisement Placement Consultants Variable Job Portals

INTERPRETATION

75
The employees at WELLINDIA expressed their varied views about the best way,
according to them, to recruit people. The recruiters in WELLINDIA bear an opinion
(about 37% of the sample) that placement consultants is the best way to recruit people.
While to 28% of the sample feel that advertisement is the best way. 15% feel that either
job portals are good source. Rests are variable sources.

76
Question.-MANPOWER PLANNING

Manpower planning No. of manpower planning % of manpower planning

recruitment recruitment

Yearly 20 20%

Quarterly 39 39%

No fexed time 41 41%

Total 100 100%

Chart Showing Manpower Planning for Recruitment

20%

41%

39%

Yearly Quarterly No Fixed Time

INTERPRETATION

77
My survey about the manpower planning clearly concludes that the company has not any
particular time fixed for manpower planning. Whenever necessity arises the planning starts.
But as per some norms the company has opted for quarterly planning also. There is a little
scope for yearly planning. Thus can say that it is clearly concludes the company that the
company has not any particular time fixed for manpower planning.

78
Question.-HOW CANDIDATES ARE RECRUITED IN THE COMPANY?

There are various ways of recruiting candidates in the company as depicted in the
chart below:
Ways of recruiting No. of ways of recruiting % of ways of recruiting

Written exam and interview 80 80%

Written exam, G.D. and 15 15%

interview

Other 5 5%

Total 100 100%

Chart Showing Employees Recruitment Process

5%

15%

80%

Written Exam and Interview Written Exam, G.D. and Interview Others

INTERPRETATION

79
From the chart it is quite clear that the company adopts various processes for recruiting the
right candidate. Actual recruitment procedure followed by the company is by conducting
written examination followed by interview which comprised 85% of my sample survey of 10
employees. But still some candidates are also chosen through written exam, GD& interview
comprising only 6% and others comprising only 3%. These ‘others’ include the reference of
the existing employees within the organization itself. Eligible candidates will be invited
for objective type written test at their own expense. In other words all the applications
received in each branch/function (HR or Finance) will be separately arranged in
descending order of merit i.e. based on a percentage of aggregate marks of all the
years/ semesters of professional course and only the required number (according to the
ratios mentioned) starting from the top will be called for written test in each discipline
(HR or Finance). In case of a tie at cut-off marks, all the candidates scoring cut-off
marks will be called for written test. The Written Test papers will be objective type in
nature and will be in Hindi & English.

Question.-The candidates selected in the written test are called for two rounds of

80
interviews.

Employee referral schemes No. of schemes % of referral scheme

Yes 65 65%

No 35 35%

Total 100 100%

Chart Showing Employee Referral Schemes

35%

65%

Yes No

INTERPRETATION

81
From the above chart I tried to show the contribution of the employee referrals in the
recruitment process. Around 65% of the sample agreed to this concept. They said it is cost-
effective, time-saving and free of hassles. The company is conducted two round to
select the candidate. From the above chart I tried to show the contribution of the
employee referrals in the recruitment process. The company is conducted two round
to select the employee referrals in the recruitment process.

82
Question.-THE ATTITUDE OF H.R. MANAGER

Attitude of H.R. manager No. of attitude % of attitude

Good 13 13%
Very good 30 30%
Excellent 57 57%
Total 100 100%

Chart Showing what employees feel about the Attitude of

H.R. Manager

13%

57% 30%

Good Very Good Excellent

INTERPRETATION

83
The chart above depicts that most of the employees are satisfied with the attitude of H.R.
Manager. 13% says Good attitude, 30% says Very Good and 57% says the attitude of H.R.
Manager is excellent From the chart it is crystal clear that the attitude & working of H.R.
Manager is whole heartedly accepted to all the employees of the company. This will
definitely boost the morale of the employees, which ultimately will increase efficiency, &
working of the employees resulting in better growth of the company. Thus by every means
company is profitable. Moreover such behavior of H.R. Manager can become the ideal of
their colleagues & subordinates.

Question.-THE PRIMARY SOURCE OF INFORMATION FOR RECRUITING

PEOPLE

84
Sources of information No. of sources % of sources
Managerial 40 40%
Testing 20 20%
Recruiters themselves 15 15%
Job analysis 25 25%
Total 100 100%

Chart Showing the Primary Source of Information for

Recruiting People

25%

40%

15%

20%

Managerial Testing Recruiters Themselves Job Analysis

INTERPRETATION

According to the sample employee the primary source of recruiting people is Managerial.

85
However, Testing & Recruiters themselves are the second most favored source of Recruiting
people. Whenever the process of recruitment is to be carried out managerial source of
recruiting people should be heavily considered Advertisements in publications and
recruitment booklets and information sheets for applicants were found to be the most
frequently and the least frequently used method of managerial recruitment. Newspaper
advertisement was found to be the most preferred technique, while advertisement in the
technical and professional journals was the least preferred technique for managerial
recruitment .

Question.-OPINION ABOUT BACKGROUND CHECK

Opinion No. of opinion % of opinion

86
Internal staff 12 12%

Out sourced 88 88%

Total 100 100%

Chart Showing Opinion about Background Check

12%

88%

Internal Staff Outsourced

INTERPRETATION

87
The above chart depicts that the background checks also play an important part in the process
of selection. Background checks refer to the verification of the potential candidate, about his
education, family, previous job etc., before the final selection. The company is in favor of
outsourcing for background checks rather than opting for internal staff.

88
FINDINGS

89
 FINDINGS

 Each and every employee is well prepared to meet today’s challenges.

 The organization gives encouragement in career planning for every employee.
 There are employees in all experience level in the organization.
 The management showing their full efforts for the growth of company ltd.
 The company is having skilled employees who can give prime solutions to the clients
more effectively.
 The management is showing their individual attention to each and every employee for
their betterment and to groom their skills.

90
 CONCLUSION

CONCLUSION

This summer Project has given me immense exposure to learn about different HR functions

91
of a large company. I have learnt a lot and experienced what is the recent HR scenario of
HRD in a large company. For this project I took help of the books and internet that gives me a
good knowledge about different HR functions and policies. ‘Necessity is the mother of
Invention’ this is true everywhere. In the study first of all I tried to find out the cause of the
process of Recruitment and selection.. I got the answer from DABUR that here in DABUR
major cause for the process is its Expansion program as DABUR is growing vastly. Few other
reasons are Replacement vacancy Retirement hardly takes place here.An organization’s
excellence depends upon its employee’s performance, which has not only to be maintained on
a consistent level, but also must be improved constantly. All this can be achieved if suitable
employees are selected, through proper Recruitment and Selection proced

92
 SUGGESTIONS

SUGGESTION

The research in DABUR has helped me in broadening my view. It has helped me to know

93
that HR is the heart of every organization. It made me aware about how policies play an
important role in the smooth functioning of any organization. But I have found that there is
something that lacks in the company and which is possible to overcome.
DABUR is engaged in making maximum sales, providing satisfaction to its customers, as
well as maintaining good relations with the corporate world. But it has not thought about
maintaining a healthy relation with its employees. This is the reason that there was an
increase in the labor turnover. Also, it has never given consideration to find the reason lying
behind the same.

Employee retention is crucial to the long-term success of your business and therefore the
ability to retain employees is a primary measure of the health of your organization. Of
significant concern is the fact that unplanned employee turnover directly impacts the bottom
line of a business.

The company can undertake the following steps to maintain long and existing relationship
with its employees as well as a steady increase in sales:-

1. Employees should know clearly what is expected of them-

Continually changing expectations minimize employee’s sense of internal security
and create unnecessary stress. It is beneficial therefore to provide a specific
framework, in which people can work.

2. Employees should be provided with quality management and leadership-

It is well documented that people leave their managers more often than they leave the
company or the job. Turnover issues that cause an employee to feel unvalued by their
manager include lack of feedback about performance, lack of clarity regarding
earning potential, failure to hold scheduled meetings, and the failure to provide a
framework for the employee to succeed. Ensure that the right people are in place to
lead your teams, departments, business units and the organization as a whole towards
success.

3. The company should compensate candidates applying for any position in the
organization in case of external recruitment; this will give candidates a positive
impression about the company.

94
4. The references given by the candidates at the time of selection should be brought into
use and should be verified in order to avoid undesired candidates.

5. Job specifications should be disclosed at the time of recruitment and selection so that
employees are well aware of the tasks to be performed by them and the expectations
their seniors have from them.

6. Company should undergo personality test in order to judge the personality of the
person applying for the job.

7. Company should have a round of panel interview so that decision of selecting a

candidate is not based on personal biasness of the interviewer, interviews should
therefore be followed by group discussion.

95
BIBLIOGRAPHY

BIBLOGRAPHY

96
Books
 Gupta C.B., Human Resource Management, Sultan Chand & Sons, New Delhi.

 Dcenzo & Robbins Human Resource Management, Prentice-Hall International.

 Monappa, Arun Managing Human Resources, McMillan India

Book detail
ISBN-13 978-3-659-50645-1
ISBN-10 3659506451
Book Language: English
Author: Nancy rao

Websites
 www.dabur.com
 www.daburinternational.com
 www.daburfood.com

97
 QUESTIONNAIRE

QUESTIONNAIRE

NAME:

AGE:

98
SEX: Male Female

1: When are the resources need and forecasted?

 Quarterly
 Monthly
 Annually
 Not Fixed

2: How is the resource need forecasted?

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
……………………………………………….

3: How do you rate the recruitment procedure?

 Short
 Long
 Very Long
 Cant say

4. Which method do you mostly prefer from the following for recruitment and selection?

 Direct Method
 Indirect Method
 Third Party S

6: What sources you prefer for recruitment and selection?

 Internal sources
 External sources
 Both
7: What are the sources for internal sourcing among the following -:

 Present permanent employees

 Present temporary employees
 Retrenched / Retired / employees

99
  Deceased / disabled / employees

10: How many rounds of interviews are conducted?

 1-3

 3-5

 More than 5

11: Are you satisfied with round of interviews conducted?

 Yes

 No

 To some extent

 Cant say

12: What form of interview did you prefer?

 Personal Interview
 Telephonic Interview
 Video Conferencing
 Any two (then tick those two)
 All of the above

13: Are you satisfied with the interview process?

 Yes
 No
 To some extent

17: Are the aptitude test conducted?

 Yes

100
  No

 Till some extent

 Can’t say

18: If yes then it is for

 Fresher
 Executives
 Other (specify)

19: Do you conduct any of these test?

 Psychometric test
 Medical test
 Reference test check
 Other (specify)

20: How do you rate the HR practices of the company?

 Very Good
 Good

 Average

 Bad

21: What are you agree with the recruitment Programme ?

 Yes
 No
 To some extent
 Can’t say

22: Do you take any technological support for the process of recruitment?

 Telephone

101
  Video Conferencing
 Online support
 Other

23: What kind of verification you do?

 Educational Qualification
 Legal Background
 Professional Background
 Family Background Check.

24: Apart from the HR Manager, who all from the other department required to get
involved in interviewing process of Selection?
 Sales
 Administration
 HR Executive
 Other Specify

25: What are the criteria for Selection?

 Work experience
 odd Academic Score
 Background
 Other


102