INDUSTRIAL REPORT

ON

THE DABUR COMPANY

Submitted in partial fulfillment of the required for the award

of

BACHELOR OF BUSINESS ADMINISTRATION

(BBA)

Submitted By: Under the Guidance of:

Bharati Vidyapeeth University Institute of Management and Research

An ISO 90001:2000 Certified institute NAAC Accredited grades “A

“University.

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STUDENT DECLARATION

This is to certify that I have completed the Industrial Report titled “ ”

under the guidance of in the partial fulfillment of the

requirements for the award of the Degree of Bachelor in Business Administration from

Bharati Vidyapeeth University, Pune.

The Industrial Report on “DABUR COMPANY” has been given to me as part of the

Bachelor Degree in Business Administration.

I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies.

This is an original piece of work & I have not submitted it earlier elsewhere.

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ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of ideas,

suggestions, and contribution & work involving many jobs. One of the most important

parts of writing a report is the opportunity to thank all those who have contributed to it.

The list of expression of thanks, no matter how extensive, is always incomplete &

inadequate. This acknowledgement is no exception.

I want to express my sincere gratitude towards who provided me all the expert guidance

& invaluable suggestion.

I would like to thank my classmates & all those who directly or indirectly helped me in

one or the other way in the successful completion of the project.

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TABLE OF CONTENTS

CHAPTER 1 : PROFILE OF THE COMPANY

PAGE NO.

1.1: OVERVIEW OF FMCG SECTOR IN INDIA 10-11

1.2 : COMPANY OVERVIEW 12

1.3: HISTORY 13

1.4: COMPANY FOUNDERS 14

1.5: BOARD OF DIRECTORS 15-17

1.6: THE FUTURE OF DABUR 18-19

1.7: CORPORATE OFFICE 20-21

1.8: ACCLODES OF DABUR 22-26

1.9: DABUR WORLD WIDE 27-28

1.10: MISSION & VISSION 29

1.11:DABUR PRINCIPLES 30

1.12 : INITIATIVES BY DABUR 31-34

CHAPTER 2 : PRODUCTS & MARKETING MIX

2.1: DABUR PRODUCTS 36-39

2.2: MARKETING MIX 40-43

2.3: MILESTONES TO DABUR PRODUCTS 44-48

2.4: RESEARCHES BY DABUR 49-50

CHAPTER 3 : SELLING STRATEGY

3.1: SELLING STRATEGY 52-53

3.2: CHANNELS OF DISTRIBUTION 54-58

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CHAPTER 4 : FINANCIAL ANALYSIS

4.1: BALACE SHEET 2009 60

4.2: PROFIT & LOSS ACCOUNT 61-62

4.3: FINANCIAL POSITION IN MARKET 63

CHAPTER 5 : CORPORATE GOVERNANCE

5.1: CORPORATE GOVERNANCE 65

5.2: CORPORATE CITIZENSHIP 66-68

CHAPTER 6 : SWOT ANALYSIS

6.1 STRENGTHS 70

6.2 WEAKNESSES 71

6.3 OPPORTUNITIES 72

6.4 THREATS 73

LEARNINGS

BIBLOIOGRAPHY

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CHAPTER 1

PROFILE OF DABUR

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1.1 OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in the

economy with a total market size in excess of US$ 13.1

billion. It has a strong MNC presence and is characterised by

a well-established distribution network, intense competition

between the organised and unorganised segments and low

operational cost. Availability of key raw materials, cheaper

labour costs and presence across the entire value chain gives

India a competitive advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in

2015. Penetration level as well as per capita consumption in most product categories like

jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market

potential. Burgeoning Indian population, particularly the middle class and the rural

segments, presents an opportunity to makers of branded products to convert consumers

to branded products. Growth is also likely to come from consumer 'upgrading' in the

matured product categories. With 200 million people expected to shift to processed and

packaged food by 2010, India needs around US$ 28 billion of investment in the food-

processing industry.

India is one of the largest emerging markets, with a population of over one billion. India

is one of the largest economies in the world in terms of purchasing power and has a

strong middle class base of 300 million.Around 70 per cent of the total households in

India (188 million) resides in the rural areas.

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The total number of rural households are expected to rise from 135 million in 2001-02 to

153 million in 2009-10. This presents the largest potential market in the world. The

annual size of the rural FMCG market was estimated at around US$ 10.5 billion in

2001-02. With growing incomes at both the rural and the urban level, the market

potential is expected to expand further.

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1.2 COMPANY OVERVIEW

Over its 125 years of existence, the Dabur brand has stood for goodness through a natural lifestyle. An umbrella name for a variety of products, ranging from hair care to honey, Dabur has consistently ranked among India’s top brands. Its brands are built on the foundation of trust that a Dabur offering will never cause one harm.The trust levels that this brand enjoys are phenomenally high. While Ries and Trout may ask “What does Dabur stand for—shampoo or digestive tablets?” The answer is fairly simple, it stands for India’s fourth largest fast moving consumer goods company that both consumers and trade respect and trust unequivocally, and which has an annual turnover of over Rs 15 billion.The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur is an investor friendly brand as its financial performance shows. There is an abundance of information for its investors and prospective information including a daily update on the share price (something that very few Indian brands do). There’s a great sense of responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of taking care of its constituents and it adds to the sense of trust for the brand overall. DABUR AT A GLANCEDabur 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 for themselves. 

Leading consumer goods company in India with a turnover of Rs.2233.72 Crore (FY07) 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

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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

1.3 COMPANY HISTORY

1884

 

Birth of Dabur

1896 Setting up a manufacturing plant

Early Ayurvedic medicines

1919 Establishment of research laboratories

1920 Expands further

1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 Shift to Delhi

1979Sahibabad factory / Dabur Research Foundation

1986 Public Limited Company

1992 Joint venture with Agrolimen of Spain

1993 Cancer treatment

1994 Public issues

1995 Joint Ventures

1996 3 separate divisions

1997 Foods Division / Project STARS

1998 Professionals to manage the Company

2000 Turnover of Rs.1,000 crores

2003 Dabur demerges Pharma Business

2005 Dabur aquires Balsara

2005 Dabur announces Bonus after 12 years

2006Dabur crosses $2 Bin market Cap, adopts US GAAP

2006Approves FCCB/GDR/ADR up to $200 million

2007 Celebrating 10 years of Real

2007 Foray into organised retail

2007 Dabur Foods Merged With Dabur India

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1.4 COMPANY FOUNDER

Founding Thoughts"What is that life worth which cannot bring comfort to others"

The doorstep 'Daktar' The story of Dabur began with a small, but visionary endeavour by Dr. S. K. Burman, a physician tucked away in Bengal. His mission was to provide effective and affordable cure for ordinary people in far-flung villages.

With missionary zeal and fervour, Dr. Burman undertook the task of preparing natural cures for the killer diseases of those days, like cholera, malaria and plague.

Soon the news of his medicines traveled, and he came to be known as the trusted 'Daktar' or Doctor who came up with effective cures. And that is how his venture Dabur got its name - derived from the Devanagri rendition of Daktar Burman. Dr. Burman set up Dabur in 1884 to produce and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. S. K. Burman's commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability.

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1.5 BOARD OF DIRECTORS

Dabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate governance.

The Board comprises of:

Chairman

 

Vice-Chairman

  Dr. Anand Burman     Mr. Amit Burman

Whole Time Directors  

Mr. P.D. Narang Mr. Sunil Duggal Mr. Pradip Burman  

Non Whole Time Promoters, Directors

 

   

Mr. Mohit Burman      

Independent Directors

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Mr. Bert Paterson Mr. P. N. Vijay Mr. R C Bhargava Dr. S. Narayan

       

     

Mr. Analjit Singh      

Sunil DuggalChief Executive Officer

Dabur India Limited

 

 

Mr. Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited in June 2002, holding reins of the organisation he joined in 1995.

Mr Duggal started his career as a management trainee in Wimco Limited in 1981 after getting his Engineering Degree (Electrical & Electronics) from BITS, Pilani, and Business Management from IIM, Calcutta. His stint at Wimco continued till 1994, with a break in between when he joined Bennett Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM, Sales Operation.

In 1995, he joined the Dabur family as General Manager (Sales & Marketing) of the Family Products Division with products like Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. Vatika was also launched during this period and is now the Company's second biggest brand.

With his dynamic spirit and leadership abilities, he soon became Vice-President and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he became the CEO

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of the Company - a professional with valuable experience to steer the company ahead in its growth plans. 

Spanning a career of over 20 years, Mr. Sunil Duggal has travelled widely across India and handled diverse portfolios that have helped him understand the dynamics of FMCG businesses and market trends. He is well versed in the intricacies of India's regional diversities and consumer needs.

Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his official responsibilities, Mr. Duggal likes to spend time at home with his family and an occasional round of golf

.

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1.6 THE FUTURE FOR DABUR

Tapping the world markets : Dabur India, under its new brand architecture, has five

power brands under its portfolio with distinct offerings — Vatika, a herbal beauty brand

with products like Vatika Shampoo, Hair oil and Fairness Face pack; Dabur, the natural

healthcare brand with products like Chyawanprash and Pudin Hara; Hajmola, the tasty

digestive brand with Hajmola candy, Fun2 and Anardana Churna; Real which offers fruit

beverages and has products like Real Fruit juices, Lemoneez; and the recently launched

Anmol which is a cross category value-for-money brand. Dabur has decided to take two

of its five power brands — Dabur and Vatika — global through its Dubai-based arm

Dabur India And the Big B and Rani Mukherjee will help the company get a toehold in

the world’s herbal hair oil, shampoos and hair creams market. The Rs 1,232-crore

FMCG major has also decided to give a new impetus to its international food

supplement brand, Nature4u, by now launching it in the burgeoning Gulf market. It is

currently being sold only in UK and EU. “We have drawn an aggressive plan to launch

Dabur and Vatika globally, starting from the Middle East , GCC and SAARC countries.

We expect our market share to double within two years in the 10 countries we will focus

on initially,’’ said Mr Arvind Kumar, CEO, Dabur International. The 10 top-of-mind

markets for Dabur right now are UAE, Saudi Arabia , Kuwait , Bahrain , Oman,

Bangladesh, Pakistan , Egypt and Nigeria.To develop Dabur International as its major

overseas hub to service all markets except Russia , the company is setting up a new

plant which is expected to be ready in a year. Dabur International already has a plant in

Jabel Ali to both package products sourced from India and produce some local variants.

Dabur India has been selling its product in Dubai and GCC countries since 1992 through

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a franchise — Redrock Limited. The company had acquired this franchise last year at

investments of about USD five million.

Growing market share: While there is no doubt that Dabur now has a presence in

several product categories ranging from hair care to oral care to home care to health

supplements to juices and even soaps, it is also true that in some of these segments its

market share is very low and trails the market leader by a huge margin. For instance,

Dabur only has a 6% market share in shampoos against HLL’s 53%, and a 12% share in

the oral care segment against Colgate’s 46%.

Company officials believe that low market share means that there are substantial growth

opportunities even if these categories do not grow. “Our market shares are low in some

segments. This gives us opportunity to penetrate these categories,’’ says Mr Narang.

Drivers of growth: For the future, Dabur has identified foods, home care products,

skin care and OTC health care products as its growth engines.

The company plans to ramp up its home care business and in the food category it is

looking at expanding its Hommade range of cooking pastes and purees. In the skin care

segment, the company launched the Dabur Anmol cold cream last year and its Vatika

honey and saffron soap is currently under test launch.

Expansion in south India: Dabur is looking at expanding its business in south India,

which currently accounts for around 15% of its total sales.

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1.7 CORPORATE & REGISTERED OFFICE

Registered

Office

8/3, Asaf Ali

Road, 

New Delhi –

110 002

Tel: +91 (011)

23253488

 

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Corporate Office

Kaushambi

Ghaziabad - 201010

Uttar Pradesh, India

Tel:

+91 (0120) 3982000 (30

Lines)

+91 (0120) 3001000 (30

Lines)

Kaushambi Corporate Office

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DABUR MANUFACTURING FACILITIES IN INDIA

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1.8 ACCOLADES OF DABUR        

 

Dabur Amongst Top Three Most

Respected FMCG Companies

Dabur Real Bags Gold In Reader's

Digest Trusted Brand Awards

Dabur Figures In Top Great Place To

Work 2006 List

 

 

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Dabur has been

ranked amongst

India's Most

Innovative Companies

by a Business Today-

Monitor Group

survey

Hajmola has been

ranked 34th in India’s

100 Most Valuable

Brands list

Hajmola, one of the

strongest brands in

Dabur's portfolio, has

been listed among the

Top 18 Iconic Brands

in India that have

stood the test of time

 

 

Dabur India’s fruit

juice brand Réal

awarded the Reader’s

Digest Gold Trusted

Brand Award 2008 in

the food & beverages

category

Three Dabur brands

-- Hajmola, Dabur

Amla and Vatika --

have debuted in the

Economic Times

Brand Equity's Most

Trusted Brands 2008

list. Besides, Dabur

Foods has climbed up

Hajmola moves up 11

spots to take the 34th

position among

India's Top 100 Most

Valuable Brands of

2008, released by 4Ps

and ICMR

 

Accolades 2009-10

Dabur is among Top 5 Indian brands to look out for in 2010, says

MSN

Dabur ranked 19th amongst India's Best Wealth Creators by

DSIJ

Dabur placed 158 in BS-1000 list. In the Super

Rank, Dabur placed No 9

Dabur is category winner in FMCG-Personal Care as

biggest wealth creator

Dabur moves up 12 places to take 79th

position in Super 100 list for 2009

Dabur India CEO Sunil Duggal among

India's Most 'Value'able CEOs

Dabur India Ltd moves up 6 places In ET- 500

List for 2009

Dabur is India's 25th Most Valuable Brand

Dabur bags Top Marketer Award for

2009 in Consumer Goods market

Dabur ranked as 60th Most Valuable Indian

Company in 2009

Uveda, Vatika conditioner ranked True Champions of Style by

Elle magazine

Dabur ranked 25th India's 100 Most Valuable

Brands

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Dabur has been

ranked amongst

India's Most

Innovative Companies

by a Business Today-

Monitor Group

survey

Hajmola has been

ranked 34th in India’s

100 Most Valuable

Brands list

Hajmola, one of the

strongest brands in

Dabur's portfolio, has

been listed among the

Top 18 Iconic Brands

in India that have

stood the test of time

 

 

Dabur India’s fruit

juice brand Réal

awarded the Reader’s

Digest Gold Trusted

Brand Award 2008 in

the food & beverages

category

Three Dabur brands

-- Hajmola, Dabur

Amla and Vatika --

have debuted in the

Economic Times

Brand Equity's Most

Trusted Brands 2008

list. Besides, Dabur

Foods has climbed up

Hajmola moves up 11

spots to take the 34th

position among

India's Top 100 Most

Valuable Brands of

2008, released by 4Ps

and ICMR

 

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1.9 DABUR WORLD WIDE

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. 

Our products World Wide

We have spread ourselves wide and deep to be in close touch with our

overseas consumers. 

Offices and representatives in Europe, America and Africa ;

A special herbal health care and personal care range successfully selling in

markets of the Middle East, Far East and several European countries.

Inroads into European and American markets that have good potential due

to resurgence of the back-to-nature movement.

Export of Active Pharmaceutical Ingredients (APIs), manufactured under

strict international quality benchmarks, to Europe, Latin America, Africa,

and other Asian countries. 

Export of food and textile grade natural gums, extracted from traditional

plant sources. 

Partnerships and Production

Strategic partnerships with leading multinational food and health care

companies to introduce innovations in products and services. 

Manufacturing facilities spread across 3 overseas locations to optimise

production by utilising local resources and the most modern technology

available.

1.11 PRINCIPALS OF DABUR

This is our company. We accept personal responsibility,

and accountability to meet business needs.

We all are leaders in our area of responsibility,

with a deep commitment to deliver results. We are determined to be the best at doing

what matters most.

People are our most important asset. We add value through result driven training, and we

encourage & reward excellence

We have superior understanding of

consumer needs and develop products to fulfill them better.

We work together on the principle of mutual trust &

transparency in a boundary-less organization. We are intellectually honest in advocating

proposals, including recognizing risks.

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1.12 INITIATIVES BY DABUR

IT Initiatives

At Dabur India Limited, knowledge and technology are key resources which have helped the Company achieve higher levels of excellence and efficiency. Towards this overall goal of technology-driven performance, Dabur is utilizing Information Technology in a big way. This will help in integrating a vast distribution system spread all over India and across the world. It will also cut down costs and increase profitability.

Our major IT Initiatives

Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006 for all business units.

Implementation of a country wide new WAN Infrastructure for running centralized ERP system.

Setting up of new Data Centre at KCO Head Office. Extension of Reach System to distributors for capturing Secondary Sales Data. Roll out of IT services to new plants and CFAs.

Future Challenges

Forward Integration of SAP with Distributors and Stockists. Backward Integration of SAP with Suppliers. Implementation of new POS system at Stockist point and integration with SAP-

ERP. Implementation of SAP HR and payroll. SAP Roll-out to DNPL and other new businesses.

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Sustainability Report

 

At Dabur, environment and nature is the lifeline of our business. With a portfolio of Ayurveda and nature-based products, conservation of nature & natural resources is deep rooted in our organizational DNA, and in every aspect of our ever-growing business.

We, at Dabur, have not merely incorporated the concept of sustainability into the core of our business but have, in fact, expanded it to encompass our aspirations and responsibilities to the society and to the environment. It is this concept that inspires us to optimize our business performance to tackle the new and growing challenges of environment and technology.

It is a concept on which we aspire to build an organization that will continue to increase value for all our stakeholders for generations to come, through intensive focus on Conservation of Energy and Technology Absorption, along with Health, Safety and Environment Protection.

Conservation of Energy

Dabur has been undertaking a host of energy conservation measures. Successful implementation of various energy conservation projects have resulted in a 13.8% reduction in the Company’s energy bill in the 2008-09 fiscal alone. What was noteworthy was the fact that this reduction has come despite an 8-9% volume increase in manufacturing, and an average 11.7% increase in cost of key input fuels.

The host of measures – key among them being use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment – helped lower the cost of production, besides reduce effluent and improve hygiene conditions & productivity.

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Technology Absorption

Dabur has also made continuous efforts towards technology absorption and innovation, which have contributed towards preserving natural resources. These efforts include:

Minimum use of water in process by pre-concentration of herbal extract and reduction in concentration time

Uniform heating in VTDs by hot water as against steam earlier, resulting in 30% reduction in bulk wastage by using non-stick coating and formulation change

Improvement in water treatment plant through introduction of RO (Reverse Osmosis) system for DM water, reutilization of waste water from pump seal cooling and RO reject waste-water management

Introduction of water efficient CIP system with recycling of water in fruit juice manufacturing

Development of in-house technology to convert fruit waste into organic manure by using the culture Lactobacilus burchi

The Company has achieved a host of significant benefits in terms of product improvement, cost reduction, product development, import substitution, cleaner environment and waste disposal, amongst others.

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Health Safety & Environmental Review

Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy focusing on People, Technology and Facilities. A dedicated “Safety Management Team” has also been put in place to work towards the prevention of untoward incidents at the corporate and unit level, besides educate & motivate employees on various aspects of Health, Safety and Environment.

The Company is also continuously monitoring its waste in adherence with the pollution control norms. In pursuance of its commitment towards the society, efforts have also been initiated to conserve and maintain the ground water level. The efforts include implementation of rainwater harvesting, which has delivered encouraging results and has put the company on the path to becoming a Water-Positive Corporation.

Dabur also initiated a Carbon Foot Print Study at the unit level with an aim to become a carbon positive Company in years to come.

At Dabur, we are committed to sustainable development throughout our diverse operations. And, we will strive to translate the good intentions into concrete and lasting results, contributing to the ultimate good of the society.

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CHAPTER 2DABUR PRODUCTS

&MARKETING MIX

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2.1 DABUR PRODUCTS

PRODUCT LINE

Foods

Real

Real Activ

Hommade

Lemoneez

Capsico

Health Care

Baby Care

Dabur Lal Tail

Dabur Baby Olive Oil

Dabur Janma Ghunti

Health Supplements

Dabur Chyawanprash

Dabur Glucose D

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Digestives

Hajmola Yumstick

Hajmola Mast Masala

Anardana

Hajmola

Hajmola Candy

Hajmola Candy Fun2

Pudin Hara (Liquid and Pearls)

Pudin Hara G

Dabur Hingoli

Natural Cures

Shilajit Gold

Nature Care

Sat Isabgol

Shilajit

Ring Ring

Itch Care

Backaid

Shankha Pushpi

Dabur Balm

Sarbyna Strong

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Personal Care

Hair Care Oil

Amla Hair Oil

Amla Lite Hair Oil

Vatika Hair Oil

Anmol Sarson Amla

Hair Care Shampoo

Anmol Silky Black Shampoo

Vatika Henna Conditioning Shampoo

Vatika AntiDandruff Shampoo

Anmol Natural Shine Shampoo

Oral Care

Dabur Red Gel

Dabur Red Toothpaste

Babool Toothpaste

Dabur Lal Dant Manjan

Dabur Binaca Toothbrush

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Skin Care

Gulabari

Vatika Fairness Face Pack

Ayurvedic Specialities

Ayurveda

Ayurveda Vikas

2.2 MARKETING MIX

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The Marketing Mix

Product 

Place

     

   

Target

Market

   

     

Price 

Promotion

The firm attempts to generate a positive response in the target market by blending these

four marketing mix variables in an optimal manner.

A Summary Table of the Marketing Mix

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The following table summarizes the marketing mix decisions, including a list of some of

the aspects of each of the 4Ps.

Summary of Marketing Mix Decisions

Product Price Place Promotion

Functionality

Appearance

Quality

Packaging

Brand

Warranty

Service/Support

List price

Discounts

Allowances

Financing

Leasing options

Channel members

Channel motivation

Market coverage

Locations

Logistics

Service levels

Advertising

Personal selling

Public relations

Message

Media

Budget

DABUR FOODS SELLING PROCESS

Dabur food process of selling starts from stockiest.

C&FA dose not have any process to play in the process of selling of dabur foods

products. They are just Clearing & Forwarding Agents they store the manufacturing

products and then supply it to stockiest.

Stockiest pay the money to dabur foods through demand draft.

Stockiest further sells the products to retailers.

Retailer finally sells the products to consumers.

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MARKETING HOW DABUR FOODS IS USING MIX

Product

Appearance: Dabur tries to make its products appear very attractive.

Quality: Quality of the product is really unmatchable as it is tested number of times and

its products are processed using very advanced machinery and technology.

Packaging: Dabur products packaging is done in such a way that its juices does not get

expired before 6 months inspite of perishable products.

Brand: Dabur itself is a very reputed and well known brand in the market and its Real

juice is also known all over India.

Warranty: Dabur as such does not gives any warranty but if there is any problem in its

products before expiry then they replace the product.

Service/Support: Dabur foods provide full support to its stockiest, retailers and

consumers, what so ever the problem is

Price

List price: Dabur decide its price according to its competitors and the price structure is

different for retailers and stockiest.

Discounts: There are different discounts for retailers, stockiest and consumer from time

to time.

Allowances: Special allowances are gicen to stockiest sales man if he acives his targets.

Place

Channel members: Channel members or business partners of dabur are its stockiest,

retailers.

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Channel motivation: Channel motivation for dabur is pull and push strategy.

Market coverage: Dabur Foods has a distribution network that covers 175 towns and 75

thousand retail outlets making its product available to the consumers across the country at

ease.

Locations: Dabur foods try to cover or tries to place its products in each and every shop

and every location.

Promotion

Advertising: Dabur products are advertised through television, newspapers, magazine

etc.

Personal selling: Dabur hardly do any personal selling except in tent shows and road

shows. Same for less & more for same

Media: Media of promotion is TV, Radio, newspapers, magazine.

Budget: Budget is Decided by finance team for different strategic business unit.

2.3 MILESTONES OF DABUR PRODUCTS

41

Milestones to success

Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn

and grow to a commanding status in the industry. The Company has gone a long way in

popularising and making easily available a whole range of products based on the

traditional science of Ayurveda. And it has set very high standards in developing

products and processes that meet stringent quality norms. As it grows even further,

Dabur will continue to mark up on major milestones along the way, setting the road for

others to follow.

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines Dabur identifies nature-based

Ayurvedic medicines as its area of specialisation. It is the first Company to provide

health care through scientifically tested and automated production of formulations

based on our traditional science.

1930 - Automation and upgradation of Ayurvedic products manufacturing

initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through AyurvedaDabur introduces Indian consumers to

personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So

popular is the product that it becomes the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack Widening the popularity and

usage of traditional Ayurvedic products continues. The ancient restorative

Chyawanprash is launched in packaged form, and becomes the first branded

Chyawanprash in India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment Addressing rural markets where

42

homemade oral care is more popular than multinational brands, Dabur introduces Lal

Dant Manjan. With this a conveniently packaged herbal toothpowder is made

available at affordable costs to the masses.

1972 - Shifts base to Delhi from Calcutta

1978 - Launches Hajmola tablet Dabur continues to make innovative products based

on traditional formulations that can provide holistic care in our daily life. An Ayurvedic

medicine used as a digestive aid is branded and launched as the popular Hajmola

tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most modern herbal

medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with fun The Ayurvedic digestive formulation is converted into a

children's fun product with the launch of Hajmola Candy. In an innovative move, a

curative product is converted to a confectionary item for wider usage.

1994 - Comes out with first public issue

1994 - Enters oncology segment

1995 - Leadership in health care Dabur establishes its leadership in health care as one

of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel).

Dabur Research Foundation develops an eco-friendly process to extract the drug from

its plant source

1996 - Enters foods business with the launch of Real Fruit Juice

1996 - Real blitzkrieg Dabur captures the imagination of young Indian consumers

with the launch of Real Fruit Juices - a new concept in the Indian foods market. The

first local brand of 100% pure natural fruit juices made to international standards, Real

becomes the fastest growing and largest selling brand in the country.

43

1998 - Burman family hands over management of the company to professionals.

2000 - The 1,000 crore mark Dabur establishes its market leadership status by

staging a turnover of Rs.1,000 crores. Across a span of over a 100 years, Dabur has

grown from a small beginning based on traditional health care. To a commanding

position amongst an august league of large corporate businesses.

2001 - Super specialty drugs With the setting up of Dabur Oncology's sterile

cytotoxic facility, the Company gains entry into the highly specialised area of cancer

therapy. The state-of-the-art plant and laboratory in the UK have approval from the

MCA of UK. They follow FDA guidelines for production of drugs specifically for

European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4

crore

2003 - Dabur demerges Pharmaceuticals business

Dabur India approved the demerger of its pharmaceuticals business from the FMCG

business into a separate company as part of plans to provider greater focus to both the

businesses. With this, Dabur India now largely comprises of the FMCG business that

include personal care products, healthcare products and Ayurvedic Specialities, while

the Pharmaceuticals business would include Allopathic, Oncology formulations and

Bulk Drugs. Dabur Oncology Plc, a subsidiary of Dabur India, would also be part of the

Pharmaceutical business.

Maintaining global standards

As a reflection of its constant efforts at achieving superior quality standards, Dabur

became the first Ayurvedic products company to get ISO 9002 certification.

Science for nature

Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary

44

of Dabur India, has set up fully automated greenhouses in Nepal. This scientific

landmark helps to produce saplings of rare medicinal plants that are under threat of

extinction due to ecological degradation. 

2005 - Dabur aquires Balsara

As part of its inorganic growth strategy, Dabur India acquires Balsara's Hygiene and

Home products businesses, a leading provider of Oral Care and Household Care

products in the Indian market, in a Rs 143-crore all-cash deal.

2005 - Dabur announces bonus after 12 years

Dabur India announced issue of 1:1 Bonus share to the shareholders of the company,

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.

2006 - Dabur crosses $2 bin market cap, adopts US GAAP.

Dabur India crosses the $2-billion mark in market capitalisation. The company also

adopted US GAAP in line with its commitment to follow global best practices and

adopt highest standards of transparency and governance.

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 any

other securities.The capital raised will be used to fund Dabur's aggressive growth

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

juice from freshly plucked fruits.

2008 - Foray into organised retail

45

Dabur India announced its foray into the organised retail business through a wholly-

owned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 crores by 2010 to

establish its presence in the retail market in India with a chain of stores on the Health &

Beauty format.

2009 - Dabur Foods Merged With Dabur India

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 help Dabur sharpen focus on the high growth business of foods and beverages, and

enter newer product categories in this space.

2.4 RESEARCHES BY DABUR

Dabur's main asset is its knowledge base and the backup of research initiatives through modern science. Dabur deals mainly with traditional Ayurvedic products. We take care to conduct rigorous trials and authentication of processes so that our consumers get the best. Dabur Research Foundation (DRF), set up in 1979 as an independent research organisation, spearheads the R&D activity of the Company.

DRF is well equipped with the most modern research facilities and more than 125 highly qualified scientists from diverse fields like Ayurvedic doctors, chemists and phytochemists, botanists,

agronomists, clinical pharmacologists, microbiologists, food technologists, bio-technologists, oil technologists, oncologists, and so on. We have been involved in

46

developing products for consumer applications as well as highly specialised areas of genomics, proteomics and bio-informatics. Through the ceaseless quest of our scientists in frontier areas, Dabur has been able to mark a presence even in critical aspects of health care like cancer therapy. 

Our Research Areas

Dabur Research Foundation is not only limited to conducting tests and trials, but carries out research in over 10 diverse areas: 

Ayurvedic Research - relating traditional knowledge with modern science Pharmaceutical Research - developing and testing drugs Phytopharmaceuticals - getting better resources from nature  Biotechnology - scientific techniques for preservation Agronomy -- scientific regeneration and propagation  Personal Care Products - developing natural solutions Analytical - studying and testing active chemicals Synthetic Chemistry - developing new molecules and intermediates Oncology Research and Molecular Biology - researching new anti-cancer

remedies  New Drug & Peptide Research - developing new drugs and delivery systems  Food Research - developing healthy and natural foods  Clinical Research - studies and tests for total safety of drugs

Highlights

1986 - Starts experimental and clinical studies on herbal and Ayurvedic formulations, conducting more than 200 validation studies to ensure the quality of ingredients as well as finished products.

1988 - Keeping consumer preferences in mind, develops Hajmola Candy - a candy variant of Hajmola digestive tablets that gives a tangy, sweet-sour taste.

1990 - A modern analytical laboratory equipped with HPLC, HPTLC, GLC set up 1991 - To break into cancer research, DRF sets up an oncology screening

laboratory. 1993 - Strengthens the value of Chyawanprash as an immunity builder after

conducting more than 12 clinical trials to validate traditional claims of its immunomodulation properties. 

1994 - First organisation in the world to isolate the anticancer drug, Paclitaxel, from the leaves of Himalayan Yew Tree using a unique eco-friendly process that doesn't harm the tree. This facilitated manufacture of cheaper anticancer medicines.

47

1995 - Taking a lead in beauty care, DRF develops Vatika Hair Oil, a value-added coconut based hair oil that improves on plain coconut oil. 

1996 - Bringing the taste of traditional Indian kitchens to modern households, DRF develops ethnic cooking pastes branded and marketed as the Hommade range. 

1997 - Catering to health conscious people looking for natural nourishment, DRF develops preservatives-free fruit juices, launched as Real Juices.

1998 - Develops New Livfit for hepatitis B & E virus infections 1999 - Continues with oncology research by developing 2 more plant-based

anticancer drugs

48

CHAPTER 3SELLING STRATEGY

&CHANNELS OF DISTRIBUTION

3.1 SELLING STRATEGY

49

SELLING STRATEGY

In theory, the purpose of selling is to help a customer realize his or her goals in an

economic fashion. However, in reality this is not always the case. Customers can be

influenced to purchase a product or service that initially was not of interest to them. Some

salespeople are trained in the art of selling customers things they don't need.

Take for example the purchasing of a car: a consumer may have a set of cars in mind

(called an evoked set) that she feels match her needs, wants and budget. She may seek the

advice of a salesperson given that a salesperson can help her realize the right car given

those criteria.

This can be a socially useful function; salespeople have specialized knowledge of

products that can help consumers make an informed decision. However, a salesperson

may also talk a consumer into purchasing a more expensive or perhaps larger car then she

needs or can afford. In this context, the salesperson may have usefully helped the

customer re-evaluate her needs, thereby establishing a new set of appropriate choices

among which included the newer or large car. This again would be a helpful and useful

service provided by the salesperson. However, it is sometimes the case that customers

purchase a product or service that was not initially intended and remains an inappropriate

purchase after the fact. On the other hand, the consumer in this scenario can be held

partially responsible for the inappropriate purchase; indeed, "A fool and his money are

soon parted."

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This dysfunctional behavior is encouraged by:

Incentives of salespeople to increase their total number of sales, especially where retailers

keep track of sales or offer commission-based salaries

Incentives from the manufactures of products or the companies of service providers to

salespeople to sell their products where other similar products offered by competitors are

offered

The incentive to sell a customer a product that is in need of being cleared out, despite the

fact that a customer may be better to wait for the new product

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3.2 Channel of Distributions

DISTIRTUBTION CHANNELS

Manufacturing Plant

Clearing and forwarding agent (different regions)

Stockist A Stockist B Stockist C

Retailers Retailers Retailers Retailers Retailers Retailers

CONSUMERS

The above diagram it shows channel of distribution of dabur foods, here first the products

are manufactured and from Manufacturing plants the packed goods are supplied to

Clearing And Forwarding Agents(C&FA) and from here the goods are then further

supplied to number of Stockiest or Distributors, from here goods reaches to large number

of Retailers and it is the duty of Stockiest to take orders from retailers and then supply the

52

goods to them, this work is generally done by stockiest salesman through ready stock or

by taking orders first and then placing the order. From here the goods finally reaches to

Customers. Customer purchases the product from retailers.

This was the basic Channel of Distribution used by Dabur Foods, now I will throw light

on each channel of distribution of Dabur Foods.

Supply Chain Management:

Supply chain management starts before physical distribution: it involves procuring the

right inputs (raw materials, components and capital equipment), converting them into

finished products and dispatching them to the final destinations. The supply chain

perspective can help identify superior suppliers and distributors and help them improve

productivity, which ultimately brings down the company’s costs.

A broader view sees a company at the center of a value network that includes its

suppliers, its immediate customers and their end customers. The value network includes

valued relations with others such as university researchers, government approval agencies

and so on.

MANUFACTURING PLANT:

Dabur Foods has Number of products in its product line but its main area of interest or

the product on which they concentrate the most is Real Juice & Coolers.

Dabur has its manufacturing plant at Nepal and at Jaipur where juice is manufactured and

tested.

PROCUREMENT & TRANSPORT:

Getting the raw material and packaging material requirement from the production unit in

charge

Constant updates on the procurement of materials and transport details

53

Production details and ingredient content information from the different personnel and

coordinating this activity

PACKAGING:

Approval and coordination of the supply of packaging material to the production unit

CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing and forwarding

agents.

Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so

company has nothing to do in building the relationship with them.

Here C&FA keep or stock the goods with them.

They charge dabur for stocking the good and even dabur don’t mind doing so as it is a

measure of cost cutting as well as there is no need for gowdowns and maintenance.

For Ghazizbad, Meerut, Delhi NCR there is one C&FA whish is situated in Mohan

Nagar, here all goods which dabur foods hare kept here.

STOCKIEST OR DISTRIBUTORS

Stockiest store the products in their godowns, C&FA supplies the goods to them as per

their order.

Stockiest has some sales men working under him, they are known as stockiest sales man.

Their work is to place the products in the market and take order from retailers and then

supply goods to them.

54

Sales man either take ready stock with them or they first take orders and then supply

goods later on.

There is a beat which is a schedule route of sales man, means sales man has to daily

cover the route as mention in the beat.

Merchandising, making products visible, pasting posters, putting banners, and seeing that

goods are properly placed in the retail outlets is also the duty of stockiest sales man.

Companies’ sales officer keeps a check on the stockiest and monthly report is also

prepared which is further analyzed by ASM & ZSM.

In Noida Dabur has 1 stockist, and in Ghaziabad 1

RETAILERS

Retailers are backbone of the company as they are the one who can take the product on

new heights or can bring it down to toes.

Stockiest supplies goods to retailers and tries Persuading retailers to give the brand

special displays (using merchandising tools) to get affective brand presence, and

arranging it in more noticeable manner.

Classification of outlets in different type of markets is different according to their sales

volume.

TYPES OF RETAILS OUTLETS

Class Average Monthly Business

A Above 10,000

B 5,000-10,000

C Upto 5,000

Margin of retailers is always higher than stockiest.

55

Retailers are the one who have direct contact with the customers.

Dabur Foods has a distribution network that covers 175 towns and 75 thousand retail

outlets making its product available to the consumers across the country at ease.

TYPES OF RETAIL MARKET

The retail market can be classified on the basis of magnitude of retail.

SCATTERED MARKET

Lesser no. of outlets, and

Extensive outlets

BLOCK MARKET

Large no. of retail outlets in chunk

SUPER MARKET

Through their superior information ,logistical systems and buying power deliver good

service and immense volumes of products at attractive prices.

CHAIN OUTLETS

Having more than one key outlet all across with a single control unit and central

purchasing strategy

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CHAPTER 4

FINANCIAL ANALYSIS

57

4.2PROIT AND LOSS ACCOUNT

58

4.1 BALANCE SHEET Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths

Sources of Funds

Total Share Capital 86.29 86.40 86.51

Equity Share Capital 86.29 86.40 86.51

Share Application Money 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00

Reserves 316.90 441.92 651.69

Revaluation Reserves 0.00 0.00 0.00

Networth 403.19 528.32 738.20

Secured Loans 19.28 16.45 8.26

Unsecured Loans 0.26 0.24 130.72

Total Debt 19.54 16.69 138.98

Total Liabilities 422.73 545.01 877.18

Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths

Gross Block 404.30 467.93 518.77

Less: Accum. Depreciation 168.97 189.77 210.45

Net Block 235.33 278.16 308.32

Capital Work in Progress 3.71 16.26 51.71

Investments 145.35 270.37 232.05

Inventories 157.37 201.15 261.72

Sundry Debtors 60.98 100.46 112.36

Cash and Bank Balance 49.04 67.36 32.16

Total Current Assets 267.39 368.97 406.24

Loans and Advances 129.19 206.94 455.65

Fixed Deposits 1.21 0.90 111.53

Total CA, Loans & Advances 397.79 576.81 973.42

Deffered Credit 0.00 0.00 0.00

Current Liabilities 301.78 345.16 381.87

Provisions 77.49 265.41 315.10

Total CL & Provisions 379.27 610.57 696.97

Net Current Assets 18.52 -33.76 276.45

Miscellaneous Expenses 19.82 13.95 8.64

Total Assets 422.73 544.98 877.17

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 1,273.58 1,372.39 1,782.08 2,128.02 2,435.85

Excise Duty 42.49 26.89 36.93 34.39 27.52

Net Sales 1,231.09 1,345.50 1,745.15 2,093.63 2,408.33

Other Income 6.96 2.95 12.46 17.92 29.30

Stock Adjustments 7.96 -4.24 22.19 3.04 38.89

Total Income 1,246.01 1,344.21 1,779.80 2,114.59 2,476.52

Expenditure

Raw Materials 554.68 578.19 800.46 1,026.98 1,271.74

Power & Fuel Cost 21.69 26.28 30.59 38.42 36.63

Employee Cost 82.09 98.31 118.66 149.69 167.32

Other Manufacturing Expenses 0.75 0.82 8.65 15.59 17.59

Selling and Admin Expenses 363.15 361.40 456.11 400.82 425.16

Miscellaneous Expenses 35.37 35.30 48.20 75.32 84.68

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 1,057.73 1,100.30 1,462.67 1,706.82 2,003.12

Mar '05 Mar '06 Mar '07 Mar '08 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 181.32 240.96 304.67 389.85 444.10

PBDIT 188.28 243.91 317.13 407.77 473.40

Interest 4.66 5.73 4.43 10.92 14.47

PBDT 183.62 238.18 312.70 396.85 458.93

Depreciation 17.10 19.05 21.98 25.75 27.42

Other Written Off 1.49 4.26 6.49 5.67 3.94

Profit Before Tax 165.03 214.87 284.23 365.43 427.57

Extra-ordinary items -0.05 0.21 -0.13 -0.86 -0.72

PBT (Post Extra-ord Items) 164.98 215.08 284.10 364.57 426.85

Tax 17.00 25.78 32.15 48.40 51.44

148.02 189.08 252.08 316.77 373.55

59

Reported Net Profit

Total Value Addition 503.05 522.11 662.21 679.85 731.38

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 71.59 100.32 122.13 129.60 151.39

Corporate Dividend Tax 9.77 14.07 17.13 22.03 25.73

Per share data (annualised)

Shares in issue (lakhs) 2,864.20 5,733.03 8,628.84 8,640.23 8,650.76

Earning Per Share (Rs) 5.17 3.30 2.92 3.67 4.32

Equity Dividend (%) 250.00 250.00 175.00 150.00 175.00

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4.3 FINANCIAL POSITION IN MARKET

DABUR COMPETITION

61

Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

HUL 224.50 48,978.87 20,601.56 2,496.45 2,483.46

Dabur India 178.05 15,447.37 2,417.91 373.56 877.17

Colgate 714.60 9,718.05 1,770.82 290.22 220.98

Godrej Consumer 286.40 8,826.56 1,088.01 161.55 599.80

Marico 112.90 6,879.29 1,921.85 142.12 676.21

P and G 2,081.95 6,758.16 772.81 178.85 440.02

Godrej Ind 160.15 5,086.76 880.97 19.33 1,628.10

Emami 662.60 5,012.57 722.35 87.52 736.10

Gillette India 1,473.45 4,801.27 661.51 113.13 490.89

Jyothy Labs 173.00 1,255.44 350.85 40.88 352.51

CHAPTER 5

CORPORATE GOVERNENCE

62

5.1 CORPORATEGOVERNANCE

Good corporate governance and transparency in actions of the management is key to a

strong bond of trust with the Company’s stakeholders. Dabur understands the importance

of good governance and has constantly avoided an arbitrary decision-making process.

Our initiatives towards this end include:

Professionalisation of the board

Lean and active Board(reduced from 16 to 10 members)

Less number of promoters on the Board

More professionals and independent Directors for better management

Governed through Board committees for Audit, Remuneration, Shareholder Grievances,

Compensation and Nominations

Meets all Corporate Governance Code requirements of SEBI

63

5.2 CORPORATE CITIZENSHIP

When our Founder Dr. S. K. Burman first established Dabur, he had a vision that saw

beyond the profit motive. In his words, "What is that life worth which cannot bring

comfort to others." This ideal of a humane and equitable society led to initiatives taken

to give back some part of what Dabur has gained from the community.

Our major initiatives in the Social sector include:

Establishment of the Sustainable Development Society, or Sundesh, in 1993 - a non-

profit organisation to promote research and welfare activities in rural areas;

Promoting health and hygiene amongst the underpriviledged through the Chunni Lal

Medical Trust; and

Organising the Plant for Life programme for schoolchildren - to create environmental

awareness amongst young minds.

Our commitment to Environment

 

Ancient wisdom of conservation

From times immemorial, Indian sages and men of wisdom have understood and

appreciated the value of nature and its conservation. Our ancestors recognised that if we

grabbed from nature beyond what was healthy, it would lead to all round degradation,

and even the extinction of humanity. That is why nature was sanctified and worshipped

in the form of gods and goddesses.

 

64

Dabur upholds the tradition

Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision

of Dabur would never have been fulfilled. And that is the reason for our unfailing

commitment to ecological conservation and regeneration. We would like to follow the

principles of our ancient texts, which say:

"Dehi me dadami te" - "you give me, and I give you".

 

Back to Nature

Rare herbs and medicinal plants are our most valuable resource, from which all our

products are derived. Due to overexploitation of these resources and unsustainable

practices, these plants and herbs are fast reaching the point of extinction. In view of this

critical situation, Dabur has initiated some significant programmes for ecological

regeneration and protection of endangered plant species.

 

Plants for Life

We have set up the "Plants for Life" project in the mountainous regions of the

Himalayas. Under the project, a high-tech greenhouse facility has been set up for

developing saplings of rare and endangered medicinal plants. Fully computer-

controlled and monitored, this greenhouse maintains the highly critical environmental

parameters required for their survival. We are also developing quality saplings of more

than 20 herbs, 8 of them endangered, through micro propagation.

In addition, satellite nurseries spread across mountain villages and contract cultivation

of medicinal herbs helps in maintaining the ecological balance. These measures have

also helped provide local cultivators the scientific knowledge for harvesting herbs and a

steady source of income. So that they are not forced to exploit the environment to earn

a livelihood.

 

65

Living a Green Heritage

These are significant steps that can contribute to a better world for coming generations.

To whom we would like to bequeath a world not bereft of nature. But full of flowering

and fruit bearing trees, animals, birds and humans living in good health and complete

harmony.

 

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CHAPTER 6

SWOT ANALYSIS

67

6 SWOT ANALYSIS OF DABUR

6.1 STRENGTHS

Strong presence in well defined niches( like value added Hair Oil and Ayurveda

specialities)

Core knowledge of Ayurveda as competitive advantage

Strong Brand Image

Product Development Strength

Strong Distribution Network

Extensive Supply Chain

IT Initiatives

R & D – a key strength

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6.2 WEAKNESS

Seasonal Demand( like chyawanprash in winter and Vatika not in winter)

Low Penetration (Chyawanprash)

High price (Vatika)

Limited differentiation (Vatika)

Unbranded players account for the 2/3rd of the total market

(Vatika)

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6.3 OPPORTUNITIES

Untapped Market(Chyawanprash)

Market Development

Export opportunities.

Innovation

Increasing income level of the middle class

Creating additional consumption pattern

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6.4 THREATS

Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and

Marico,Keo Karpin, HUL and Bajaj for Vatika Hair Oil)

New Entrants

Threat from substitutes (like Bryllcream for Vatika hair oil)

71

72