DABURcelebrate life

Dabur is the fourth largest Fast Moving Consumer Goods company in India with consolidated Revenues of over INR 7,800 Crores and Market Capitalization of over INR 46,600 Crore Building on a legacy of over 130 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic medicine & related products manufacturer and Natural Health Care Company.

Micro EnvironmentThe Company

o Established in 1884 : 125 Years of Trust & Excellence.o Among top 4 FMCG companies in India.o World’s largest in Ayurveda and natural healthcare.o Revenue of Rs. 33.9 billion and profits of Rs. 5billion in FY2009-10o Strong brand equity

o Dabur is a household brand.o Vatika and Real are Superbrands.o Hajmola , Real & Dabur ranked among India’s Most Admired Brands.

o 10 Brands with sales of over Rs. 1 billion each.o Wide distribution network covering 2.8 million retailers across the country.o 17 world class manufacturing plants catering to needs of diverse markets.o Strong overseas presence with 18% contribution to consolidated

Suppliers

Over 300 diverse products in the FMCG, Healthcare and Ayurveda segments, 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.

The Central Planning and Procurement Division (CPPD) is responsible for purchase operations at Dabur, acting in coordination with the Production and Marketing Divisions.

Marketing Intermediaries

o 4500 Distributors o Reaching 2,500,000 retail outlets

DISTRIBUTION NETWORKFactory C&F agent Wholesalers Retailers consumer

Competitors

o Hulo Hmalayao Colgateo Godrej consumero Maricoo P and go Unilivero Gillette indiao Godrej indo Jyothy labs

MACRO ENVIRONMENT

DEMOGRAPHIC FORCES

Dabur India Ltd's manufacturing activities spanning various consumer products categories are carried out in 17 factories spread across India and abroad.

Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal).

Dabur has been in the forefront of popularising this alternative way of life, marketing its products in more than 60 countries all over the world.Natural forces

At Dabur, environment and nature is the lifeline of their business Intensive focus on :

Conservation of Energy (13.8% reduction in the Company’s energy bill in the 2008-09)

Technology Absorption Health ,Safety and Environment Protection

TECHNOLOGICAL FORCES

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

POLITICAL FORCES Dabur never funded any government or any political party

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

profit organization to promote research and welfare activities in rural areas. Promoting health and hygiene amongst the underprivileged through the Chunni Lal

Medical Trust. Organizing the Plant for Life programme for schoolchildren - to create environmental

awareness amongst young minds.

CULTURAL FORCES For over 125 years, Dabur has mastered the art of producing Ayurvedic preparations,

blending traditional knowledge of drug manufacturing with scientific update. Redefined the Ayurvedic market and healthcare promotion activities involving leading

Ayurvedic practitioners across the globe. More than 350 Shastriya (Classical) Ayurvedic preparations, which form an important

part of every Ayurvedic practitioner’s daily practice.

how Dabur has responded to the changes in its environment factors

PESTLE factors and effects on Dabur Taxation policy Production policy Government Intervention Acts and Regulations

Effects & StrategiesImposition of VATHelping hand to the players in organized sectorDabur saw this opportunityIt expands its hare care products into coconut oilCaptured unorganized market of coconut oil.

Economic factors Inflation Employment Disposal income

Effects & StrategiesBetter policies and speculation attracted the foreign investment in IndiaIncrease in Disposable income Increase in purchasing powerIncrease in demand of Good and Quality productsDabur Foods limited merged with Dabur India limited Increase R&D, better product, better revenue

Social Factors

Demographics Distribution of income Lifestyle changes levels of Education

Effects & StrategiesUse of Toothpaste and Shampoos were less in indiaNiche market to invest Dabur invested in Oral care and Hair careDabur spread awareness about oral care and hair careCame up with products like Promise Meshwak babool in toothpaste and Vatika in shampoo

Technological factor Innovations Speed of change in technology Rates of obsolescence Information technology

Effects and StrategiesSkin care was a combined product market consisting hair uprooting cream, hair conditioners etc.Innovations, Separated the combined market into specialized skin care and hair care productsResults, better quality products, innovations in products, new products.

Environmental Factors Pollution Waste Disposal Carbon Footprints Usage of Resources

EffectsCompany has to take care about the pollution, proper utilization of resources and proper disposal of the waste productsSince Dabur deals with the natural products the responsibility of optimum utilization of the natural resources is high.