Index: SR - No Topic PG No Remarks
Index: SR - No Topic PG No Remarks
Index: SR - No Topic PG No Remarks
1 Introduction 2
2 Environmental factors 7
3 Position in market 21
4 Conclusion 22
5 Reference 23
pg. 1
Dabur History
Dabur took birth in the year of 1884 when Dr.S.K.Burman launched his
mission of making health care products. in 1920 dabur expands its business in
the places of narendrapur and daburgram with new manufacturing units and
also spreads its products in the other states like bihar and north-east India.
Dabur has roped in consulting firm Accenture to give it a lay of the land,
though the call on what areas to invest in will have to be made. One thing is
clear that it will be definitely be processed and convenience foods and not
staples. As V.S. Sitaram, Executive Director, Consumer Care Division, says,
“We are revisiting the whole approach to the foods business to see what can
be the strategy. We clearly think there is a bigger opportunity. It’s about
saying that foods should be core to the Dabur India strategy.” As Sitaram
explains, in most economies first are the home and personal care products that scale up and as
affluence sets in processed foods start shooting up. “Our opinion is that India has reached that
level of affluence where people are in the market for more convenience, more variety and
increasingly in the health and wellness areas,” he adds. So, the direction for Dabur is clear and
that’s what it is signalling to the outside market too that by integrating Dabur Foods (which has
been one of the fastest growing businesses for the group reporting a 35 per cent CAGR for the past
five years) with Dabur India, it intends to be a serious player which will invest big money to stay
the course and build brands. Dabur’s willingness to invest and foray into new business has found
favour with analysts. As Nikhil Vora, Managing Director of IDFC SSKI Securities Ltd, points out,
pg. 2
Dabur’s business model has the right mix of stable businesses (hair care, health supplements) and
strong growth drivers (oral care, foods, international business, health and beauty retail). Says
VoraDabur’s mainstay brand, Vatika, meanwhile, has undergone a change in its packaging and
visual identity done by an Australian designhoue to give Indian flavor
Company profile
pg. 3
Dabur will continue to mark up on major milestones along the way, setting the road for others to
follow.
• As part materialised
The transaction of its inorganic
at agrowth strategy,
price per Dabur
share of India
Rs 800, acquires Balsara's Hygiene and
which
translatesHome products
into Fem Carebusinesses, a leading
having an equity provider
valuation of Oral
of Rs 282.4Care and Household Care
crore andproducts in the valuation
an enterprise Indian market, in a Rs 143-crore
of approximately Rs 300all-cash
crore. deal.
• 2005 - Dabur announces bonus after 12 years
With Fem Care’s product portfolio, which include fairness bleach, hair remover and liquid soap
under the Fem brand, Dabur hopes to gain entry into the high-growth skin-care market. Dabur at
• has
present Dabur Indiapresence
a minor announced issue
in the of 1:1 Bonus
skin-care marketshare
withto the shareholders
products under the of the company,
Gulabari and Vatika
brands. i.e. one share for every one share held. The Board also proposed an increase in the
authorized share capital of the company from existing Rs 50 crore to Rs 125 crore.
“The•acquisition bringscrosses
2006 - Dabur to Dabur a portfolio
$2 bin market of well-known
cap, adopts US household
GAAP. brands, which enjoy a pole
position in their respective categories, offering us a strong platform to enter newer product
categories and markets.
• Dabur Fem'sthe
India crosses brands fit in mark
$2-billion well with Dabur's
in market future growth
capitalisation. plans,
The both for
company alsoIndia
and international markets," Dabur India CEO Sunil Duggal said.
adopted US GAAP in line with its commitment to follow global best practices and
adopt highest standards of transparency and governance. pg. 5
• 2006 - Approves FCCB/GDR/ADR up to $200 million
• Moving forward on the inorganic growth path, Dabur India decides to raise up to $200
million from the international market through Bonds, FCCBs, GDR, ADR, QIPs or
ambitions and acquisition plans in India and abroad.
• 2007 - Celebrating 10 years of Real
• Dabur Foods unveiled the new packaging and design for Real at the completion of 10
years of the brand. The new refined modern look depicts the natural goodness of the
The domestic skin-care market is pegged at Rs 2,200 crore and is growing at 20 per cent annually.
juice from freshly plucked fruits.
While multinational players such as Procter & Gamble, Revlon and Hindustan Unilever dominate
• 2007
the market, - Foray players
domestic into organised
such as retail
Emami, Godrej and CavinKare have a significant share of the
pie.
• Dabur India announced its foray into the organised retail business through a wholly-
"As Dabur gainssubsidiary,
owned access to Fem's
H&B research
Stores Ltd. capabilities,
Dabur willwe believe
invest it will
Rs 140 be able
crores to broaden
by 2010 to the
company's productitsportfolio
establish presenceand further
in the retailcapitalise
market inonIndia
the emerging opportunities
with a chain of stores oninthe
domestic
Healthand
international markets,"
& Beauty said Sunil H Pophale, chairman & managing director, Fem Care.
format.
• 2007 - Dabur Foods Merged With Dabur India
Fem Care’s sizable international presence with its OTC products in markets such as Yemen,
Maldives, Mauritius, Malaysia, UAE and Oman will boost Dabur’s international growth strategy.
• Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Limited with
itself to extract synergies and unlock operational efficiencies. The integration will also
Mission help Dabur sharpen focus on the high growth business of foods and beverages, and
enter newer product categories in this space.
After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has
launched another plan for 2010. The main objectives are:
With smoothly sailing through its previous plans, this vision seems possible. Time and again,
Dabur has made decisions that have led to its present position. However, if Dabur could be more
aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year
performance table from Dabur’s website.
Management structure
After running as a family business for over 100 years, when in late 1990s, the management of
the Dabur was handed over to a team of professional managers, the new management faced a gigantic task
of improving performance in several critical areas. In particular, working capital and cost management
required urgent attention as the company's performance in these areas had been far from satisfactory. The
then prevailing current ratio of 3:2 and quick ratio of 2:4 were considered too high and indicative of heavy
unnecessary investments in working capital that would have a negative effect on company's profitability.
Efforts to improve the working capital efficiency were met with stiff resistance from various
quarters, but finally yielded results. The case study discusses the measures taken to improve the
working capital and cost management performance, and how with concerted efforts the
management turned around a highly inefficient working capital management into one of the most
efficient in the FMCG sector of the Indian industry. In fact, the company seemed to have taken the
matter to the other extreme of negative working capital, with the current ratio declining to 0:8 and
the quick ratio to just 0.4 in 2004–05.
pg. 6
In 2005–06 as the company was ready to launch itself into the next phase of fast growth, several
critical issues related to the liquidity and solvency of the company confronted the management
which are also discussed in the case study.
TOP COMPENSATED OFFICERS
Age: 51
Age: 58
Age: 54
Age: 66
Age: 44
Internal power
pg. 7
Dabur can buy Lager Company Thursday, 17 February , 2005, 16:45
New Delhi: Beaming with its successful Rs 143-crore acquisition of the Balsara group of
companies, Dabur India on Thursday said takeover would be a significant part of its growth
strategy as it had resources to acquire fairly 'large sized companies'"Acquisitions would form an
important part of our growth strategy. However, it should fit our portfolio and serve to build on a
strategic growth," CEO Dabur India Sunil Duggal said.
Defining large companies as those having a turnover of Rs 200 crore to Rs 400 crore, Duggal said
there could be competition for such entities in home care sector from other FMCG majors and
MNCs but Dabur would pitch in as and when it finds a suitable company.
"There is nothing hot now but we will always consider any such property... It will not be not easy
as there will be intense competition as this sector is showing fast growth," Duggal said.
Dabur borrowed Rs 23 crores for completing the Rs 143 crore Balsara deal. Duggal said the
company hoped to become virtually debt free by the end of current financial year.
"The business margins and healthy growth would soon make our cash position comfortable for any
future acquisitions," he said adding that on such a balance sheet the company could leverage
resources.
Dabur also gives 100% job satisfaction
Company image
The name ‘Dabur’ was Originally attached with Ayurveda but over the period of time it
succeeded in diversifying its business. At present DIL is the fourth largest FMCG
Company in India with interests in Health care, Personal Care and Food Products with
a large products portfolio. ‘Dabur’ is the oldest consumer brand in India and well
recognized across the country over the period of 100 years established in 1884 by
Dr.S.K.Buraman for making healthcare products. DIL has varieties of product
portfolio. It has four Strategic Business Unit (SBU) i.e. Consumer Care Division (CCD),
Consumer Health Care Division (CHD), Food Business Division (FBD), International
Business Division (IBD).
It has wide and deep market penetration with 47 C&F agents, more than
5000distributors and over 1.5 million retail outlets all over India. Its Products are
marketing in more than 50 countries all over the world.
ProductionFacilities:
DIL has eight production facilities at Baddi, Pratapnagar, Sahidabad, Jammu, Alwar,
Katni, Narendrapur, Jaipur and two additional facilities of Balsara’s at Baddi and
Silvassa. Beside this it also has five production facilities abroad at Birganj (Nepal),
Dhaka (Bangladesh), Dubai (UAE), Cairo (Egypt), and Lagos (Nigeria).
Approximately 75% of DIL’s Production is from excise free units and these units will
enjoy fiscal benefits till around 2015. This could help DIL in slight margin expansion.
DIL’s Position: DIL Enjoys market leadership in Juice market with market share of about 57%,
withthe nearest competitor being at 25%. In health supplements ‘Chayawanprash’ also
enjoys market leadership with 63% market share. It also holds second position in Hair
oil with a market share of 18% beside this DIL enjoys Third position in oral care
industry.
Oral Care Market Share (%):
pg. 8
Juices Market Share (%):
Physical assets
ANNEXURE TO THE AUDITORS REPORT AS REFERRED TO IN PARA 3 OF THE SAID
REPORT OF EVEN DATE
• c) Fixed assets disposed of during the year are not material enough to
• affect the going concern of the Company.
• a) The Company has not taken any loan, secured or un-secured from
• Companies/firms or other parties covered in the register maintained
• under section 301 of the Companies Act, 1956.
• b) The Company has not granted any loan, secured or un-secured to firms
• or other parties covered in the register maintained under section 301
• of the Companies Act, 1956.
• However the Company has granted unsecured loan of Rs. 15689.53 lacs in
• aggregate repayable on demand to its two foreign subsidiaries both
• sharing a director in common with the Company. The loanees are regular
• in payment of interest. As the Company has so far not demanded the
• loans back, the question of repayment does not arise. Terms and
• conditions of these loan are not prima facte prejudicial to the
• interest of the Company. Maximum balance against these loans during the
• year was Rs. 16761.06 lacs in aggregate.
R&D
pg. 10
has a strength of highly qualified and experienced team of 6 dedicated
principal scientists. These scientists are constantly involved in
innovating various techniques and methods to add value to the
industry. In this constant process of innovation, in the year 2000-2001
the company has achieved an upgraded technology through the frozen
route to process Litchi Juice without preservatives. In the year 2001-
2002 Dabur Foods invested funds to improve echnology of processing
pineapple juice concentrate, by using frozen technology and also use
cold chain to transfer the finished product.
During the year 2003-2004 it again came up with yet another innovative initiative and formulating
sensitive juices such as watermelon, pomegranate and aam panna under the Cooler brand. The
challenge here was technology. It again infused frozen technology and ample expertise in selecting
the right variety of fruits. Though the company has access to best quality of fruits and complete
control on quality
finished product, the vision is to make a mark on the international fruit pulp market through
constant creativity in its research and development
HR
Consulting and General Management
Summers 2007 saw the participation of many leading consulting firms like Accenture, KPMG
(India and Middle East) and Mercer. Many other companies like TAS, Sharaf Group, Frost
and Sullivan, RPG Group and industrial group DCM Shriram (DSCL) offered profiles in
consulting and general management. Vodafone, IBM, Yahoo, Essar and Lufthansa also offered
roles in strategy and management consulting. A good 18% of the batch opted for a variety of
roles in this sector, establishing FMS as the desired
destination for Consulting firms.
pg. 11
Marketing capablities
FMS has long since enjoyed the reputation of being a marketing campus and this season was
definitely no exception. Industry giants like HUL, P&G, Cadburys, ITC, Colgate Palmolive,
GSK, Britannia, Pepsi, Coca Cola, SAB Miller, Reckitt Benckiser, Dabur, Nestle, Reebok,
Heinz, Castrol and Tata Motors participated in the process and made multiple offers. HUL
further added to the excitement by offering exclusive international Marketing and finance
postings across Netherlands and South East Asia. 16% of the batch decided to join the FMCG
giants for their summer internships.
With new age companies competing against the traditional ones to attract students, Summers 2007
witnessed a lot of aggressive participation from companies with interests in a variety of fields
ranging from aviation to retail. Lufthansa, Vodafone, Motorola, Sharaf Group, RPG and
Godrej Consumer Group were some of the major new players looking to get the students'
attention with exciting and challenging roles. 10% of the batch was offered Marketing roles in
the companies.
External
Micro
Customer
pg. 12
The major customer of Dabur is the common people .as Dabur is the most relevant product which
one consumes at hi day today life span
Product Products
Category
Hairoil Vatika, Amla, Sarso
(Anmol coconut)
Shampoo Vatika heena conditioning, root-
strengthening
Anmol-natural shine, silky
Baby & Skin Vatika fairness, Gulabari, Vatika fairness
Care face pack
Janmaghutti, Olive oil, Gripewater, Dabur
lal tel
Suppliers
1. DP Guar
2. HP Guar
3. HP Tamarind
4. CM Tamarind
5. CM Starch
6. Borated Guar
Competitors
Category Dabur’s Main Competitors
Share
Fruit Juice 58% Real Tropicanna
and Active
Fruit Drinks 1% Coolers Frooti And Maaza
(coolers)
Hair oil Coconut 6.4% Vatika HLL
base
Shampoo Vatika 7.1% HLL and P&G
pg. 13
Hair care 27% HLL, P&G and
(overall) Himalaya
Chyawanprash 64% Himani, Zhandu and
Himalaya
Honey 40% Himani, Hamdard and
local Players
Digestives 37% Paras and local
players
Public
Science Dabur is most well known product which public consumes frequently.dabur also spends
much money on the cost of public well fare
Financers
The financial sector continues to lure students in large numbers and FMS' reputation as a finance
bigwig stood validated again. 17% of the batch opted for profiles with leading banks. Premier
Banks like BNP Paribas, HSBC, Standard Chartered, Citibank, ABN Amro, Bank of
America, ICICI Bank, Axis Bank, American Express and IndusInd Bank reaffirmed their
relationship with the campus. Apart from them, this sector also saw participation from investment
banking firms like Langham Capital, Singhi Advisors and Tata Capital, fund managers like
Zeus Fund and TSI Ventures and real estate developers like CapitaLands which offered
international profiles.
Niche and coveted profiles were offered by venture capital funds like IDG Ventures, private
equity firms like IDFC and financial research firms like ICRA and Dun and Bradstreet which
illustrates the diverse set of options available to the students at FMS.
Market intermediaries
• Dabur’s sales have been affected by the slackness in demand as well as extended summer
period, which
• has impacted the sale of some of the products such as Chyavanprash.
• q The company had extended Chyavanprash from mere winter season product to rainy
season product
• last year. With the monsoons disappointing this year, Chyavanprash sales have declined by
over 10%
pg. 14
• in the period.
• q It has been compensated by good growth in some of the other categories - Amla Hair oil,
Vatika
• Shampoo, Honey and Pudin Hara – have done well, with value growth of 18%, 37%, 30%
and 7%
• respectively in the first half of the year.
• q Hajmola’s sales have remained flat, though there are
indications of the brand doing well on the
• secondary flat.
• q Dabur’s Lal Dant Manjan sales also managed to remain flat,
despite decline in the oral care category.
• q Pharma business has grown by 8.6% YoY in the quarter,
while ayurvedic specialities business hasdeclined by 3-4%
Macro
Economic factor
• Dabur India plans to demerge its pharma business, which
contributed 17 per cent to the total turnover and recorded a
growth of 11.2 per cent during the June 2002 quarter, at an
appropriate time. The appropriate time would again depend on its performance. This was
disclosed by the company management at an investor meet held in the first week of August
2002.
Pharma Business
• Operations of the pharma business were separated from the FMCG business during the
quarter ended June 2002. The rationale behind the move is to be more focused around the
following: Distinct identity for the pharma business, focus on marketing alliances in
developed countries, optimising investments (aimed at capturing generic opportunities in
the US and Europe), provide value added equivalents of established products in oncology,
pursue research in innovative molecules in oncology (the company plans to out-licence
molecule from late clinical phase).
• Different segments of the pharma business such as bulk drugs, branded formulations,
exports and R&D are now consolidated into one strategic business unit.
• According to the management, the domestic formulations and international bulk drug
business will continue to be a cash generator and would meet the future partial cash
requirement of the oncology segment.
• The Ayurvedic Specialities Division recorded growth of 8.9 per cent during the quarter
ended June 2002, reversing the decline of the last quarter. This division contributed 7 per
cent to the total turnover. This was due to greater focus on core business and ethical
channels of distribution. The division is also focusing on improving service levels of the
distribution chain.
Social factor
pg. 15
Science is the well known product which is consumed by the coman man often so Dabur prepares
the product in such a way that the coman man even effort the best quality at cheapest price the
preparation is done in such a hygienic conditions that it does give any bad effects.dabur also spend
lots of Rs for social cost
Demographic factor
This is the case study o the country which is as follows
Birth of Dabur
1884
1896 Setting up a manufacturing plant
Technological factor
In todays morden word technology plays like a blood in an organization this organization is
provided with best equipped computers of hcl a proper machineries foreman to look after the
finished goods
Global factor
Dabur's mission of popularising a natural lifestyle transcends national boundaries. Today there is
global awareness of alternative medicine, nature-based and holistic lifestyles and an interest in
herbal products. Dabur has been in the forefront of popularising this alternative way of life,
marketing its products in more than 50 countries all over the world
We have spread ourselves wide and deep to be in close touch with our overseas consumers.
pg. 17
Position in market
pg. 18
Sensex 9690.07
Last 78.05
High 78.50
Low 75.00
Volume 141949
BSE Code 500096
NSE Code Dabur
Dabur India Q2 Net Profit Soars 18% To Rs 107 Cr
Dabur India Q2 Net Profit Soars 18% To Rs 107 Cr; Standalone Q2 EBITDA Margin Expands By
52 bps; Consolidated Sales Up 18% To Rs 699 Crores
The Board of Directors of Dabur India Ltd (DIL) met here today to consider the audited financial
results of the company for the quarter and half-year ending September 30, 2008.
Aggressive cost management initiatives coupled with a judicious pricing strategy and the
continued strong performance in key categories helped Dabur India Ltd mitigate the impact of
steep cost inflation and report a strong 18.1% growth in standalone net profit for the second
quarter of the 2008-09 fiscal. Net profit for the quarter stood at Rs 106.96 Crores, up from Rs
90.55 Crores a year earlier. The company also announced that its EBITDA margin for the quarter
expanded by 52 bps. Standalone Net Profit for the first half of the financial year reported a 21%
surge to Rs 177.11 Crores.
“We continue to sustain our strong growth momentum in key categories like Hair Oils, Shampoos
and Baby & Skin Care as consumer spending remains robust in the FMCG market despite high
Inflation. Hair Oils reported an impressive over 20% growth in the quarter led by Anmol Coconut
Oil and Dabur Amla Hair Oil. Shampoos also continued to outperform the category with a growth
of over 36%, while Baby & Skin Care business reported a near 18% growth following the
expansion of Dabur Gulabari skin care range with the introduction of Dabur Gulabari Moisturising
Cream and Lotion,” Dabur India Ltd CEO Mr. Sunil Duggal said.
“Our renewed focus on Ayurvedic OTC products reaped rich dividend with the Consumer Health
Division riding strong on its turnaround path and reporting a strong over 21% growth in the
second quarter of 2008-09 fiscal,” Mr. Duggal added.
The quarter also saw Dabur India Ltd roll out a host of new products and initiatives, which have
met with encouraging response in the market. Dabur’s new hard surface cleaner brand ‘Dazzl’,
launched nationally in the previous quarter, has already garnered a market share of 6.1% (July-
September 08) in the floor and kitchen cleaner category.
Dabur India Consolidated
Dabur India Ltd’s Consolidated Income for the second quarter of 2008-09 fiscal marked an 18.4%
growth to Rs 699.30 Crores, up from Rs 590.49 Crores a year earlier. Net Profit for the quarter
rose 12.2% at Rs 107.41 Crores as against Rs 95.74 Crores a year ago.
Dabur’s International Business continued to grow at a rapid pace with the division recording an
impressive growth of 40.5%, led by robust performance in GCC, Egypt, Nigeria, Yemen and
North African markets.
“We have built strong capabilities to tap emerging opportunities in the overseas markets. Sales in
the GCC region reported a 49% growth while sales in African markets surged 65%. Dabur Egypt
grew by a robust 88% and Bangladesh sales surged by 85%,” said Dabur India Ltd Group Director
Mr. P D Narang.
Board Reconstitution
pg. 19
Dabur India Ltd also announced the reconstitution of its Board of Directors with the induction of
two new independent directors. Aviva India Ltd Managing Director Bert Paterson and Mr. Analjit
Singh, Co-Founder and Chairman of Max India Ltd, have been inducted as independent directors
on the board. Besides, Maharaja Gaj Singh has resigned from the Dabur India board.
“Corporate governance and transparency in action are of high priority for Dabur and the Burman
family, and the new board-level inductions are in line with this philosophy. With this, the number
of members on the Dabur India board has been expanded to 11 with seven independent directors,”
Dabur India Ltd Chairman Dr. Anand Burman said.
- End -
About Dabur India Ltd
Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality
and experience for over 120 years, Dabur is today India’s most trusted name and the world’s
largest Ayurvedic and Natural Health Care Company. Dabur India's FMCG portfolio today
includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural
healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-
based beverages and Anmol for affordable personal care business.
Conclution
Dabur India is a fast moving consumer goods (FMCG) company that manufactures and markets
health care, personal care, home care and food products under the Dabur, Vatika, Anmol, Hajmola
and Real brand names. The company primarily operates in India, Nigeria, Egypt, Nepal,
Bangladesh, the UAE and the UK. It is headquartered in Ghaziabad, India and employs 2,527
people.
The company recorded revenues of INR20,834 million (approximately $517.5 million) in the
fiscal year ended March 2008, a decrease of 87% compared to 2007. Its net profit was INR3,167.7
million (approximately $78.7 million) in fiscal year 2008, an increase of 25.7% over 2007.
Reference
Books
pg. 20
The history of Dabur
Annual report of Dabur 2007-2008
Internet
www.dabur .com
en.wikipedia.org/wiki/Dabur
www.daburfoods.com
www.thehindubusinessline.com
pg. 21