Dabur India Ltd.

Presented By:Group No.2

•Started by Dr. S.K. Burman as an Ayurvedic pharmacy in Kolkata in the year 1884.

•His vision ‘What is Life that cannot bring comforts to others’ was instrumental in giving direction to the company.

•In the year 1972 Shifted base to Delhi NCR.(Ghaziabad)

•1986 Public Limited Company

•1994 Public issues

•1998 Professionals to manage the Company

Birth and Evolution Of Dabur:

Company Profile:

•Established in 1884 : 125 Years of Trust & Excellence

•Among top 4 FMCG companies in India.

•World’s largest in Ayurveda and natural Healthcare.

• Revenue of Rs. 33.9 billion and profits of Rs. 5 billion in FY2009-10.

•Strong brand equity.

•3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD)

•Products marketed in over 60 countries

•3 Subsidiary Group companies:• Dabur International• Fem Care Pharma • newu 

•8 step down subsidiaries:• Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt),

Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).

• Overall, Dabur has successfully transformed itself from being a family-run business to become a professionally managed enterprise.

Business Structure:

FMCG Industry in India:

•Indian FMCG industry size estimated at•around US$ 25 bn.

• Personal care & Food products dominate the•Sector

• Rural India contributes 33% of the overall FMCG sector.

Market Share Distribution

Market share of Dabur:

Product Range of Dabur:

Competitors Of Dabur and Its Standing:

Demand Analysis:

•Dabur India Q2 Net Profit Surges 30.7% To Rs 140.34 Crores

•Consumer spending in FMCG, particularly for everyday use products at popular price points, continues to remain strong.

•The hair care category reported 21.5% demand growth, led by Vatika shampoo, for which the demand grew by an impressive 45.5% .

•Growing demand for Dabur Chyawanprash, Honey & Dabur Glucose, reported a strong 23.5%

•The Foods business reported a near 24% growth, while brand Hajmola ended the quarter with an 11.5% growth in demand.

•Dabur’s Toothpaste demand, led by Babool & Dabur Red Toothpaste, also reported a near 11% growth during the quarter.

•The skin care business for Dabur reported a 42.7% growth.

•The recently-acquired Fem business recorded a 24.2% jump in demand.

•Dabur’s Consumer Health Division too ended the quarter with a 17.7% growth.

•Dabur’s overseas business continued to grow at a rapid pace with the division recording a 27.5% growth, led by robust performance in GCC, Egypt, Bangladesh and Nepal markets.

•Sales in the GCC region reported a 36.8% growth, while Egypt witnessed a near 35.3% growth during the quarter.

Supply Analysis:

•The supply chain function of Dabur comprises of production planning, dispatching, warehousing and transportation.

•The company has a wide distribution network, covering over 2.8 million retail outlets with a high penetration in both urban and rural markets.

•Dabur has a huge global network of suppliers and vendors, purchasing roughly 7,000 items with an annual procurement bill of over Rs 500 crore.

Supply Chain of Dabur:

SWOT ANALYSIS

Strengths:

•Worldwide coverage•One of the largest FMCG companies in India: • Consolidated Turnover of Rs.13.3 billion ( USD 300

mn). •Differentiated products: • Strong Herbal and Natural profile. • 125 years of experience in Ayurveda.

•Wide distribution network: • Covering 1.5 million retail outlets. • High penetration in urban and rural areas.

•Brand strength: • Strong brands in diverse categories of health and

personal care. • Mother brand “Dabur” products.

•R & D – a key strength

WEAKNESSES : •Seasonal Demand

-Chyawanprash in winter. •Low Penetration

-Chyawanprash not available in rural areas. •Limited differentiation

-As in Hair oil category

OPPORTUNITIES: • Market Development• Export opportunities.• Innovation• Increasing income level of the middle class• Creating additional consumption pattern•People inclining towards ayurveda.

THREATS: •Existing Competition

-Himani, Baidyanath and Zandu for Dabur Chyawanprash -Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil

• New Entrants

• Threat from substitutes

- Himani Sona Chandi for Chawanprash, brahmi amla hair oil for Dabur Amla, Harpic and Lizol for Sanifresh.

Economic Analysis of Dabur:

•Employment Generated: About 3,000 employees working worldwide.

•Tax revenue: With increasing sales revenue and profit, the tax revenue has been increasing.

•Contribution to GDP of the country: With recording growth form one financial year to another Dabur’s contribution to country’s GDP is tremendous.

Sensex:

•Current Sensex Value of Dabur: 211( sensex:18560)

•10 times increase in market capitalisation(since 2001).

•Shareholding structure: Public Share = 6%

Dabur in News :

•Morgan Stanley:In the long term Dabur has the potential to grow ahead of the market, given its niche positioning and well-diversified portfolio.

•Medicinal Plant Project – An initiative by Dabur Nepal Pvt. Ltd.

•Sustainable Development Society (SUNDESH) :reach out to the weaker and more vulnerable sections -- such as women and children, illiterate and unemployed – of the society.

•Accenture provides IT infrastructure.

•Dabur's net profit up by 20.5%.

•Fem Care was acquired in 2009 for rs 203 crores.

•Dabur Acquires Turkey`s Hobi Kozmetik Group For $69 Million.

•Future Plans

•Dabur aims to double sales to Rs 7k cr in next 4 yrs.

•Dabur plans 15 retail stores this fiscal year(new u).

•CEO Sunil Duggal: One or two acquisitions every year.