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.

1
 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 GLANCE
Dabur India Limited has marked its presence with some very significant achievements
and today commands a market leadership status. Our story of success is based on
dedication to nature, corporate and process hygiene, dynamic leadership and
commitment to our partners and stakeholders. The results of our policies and initiatives
speak 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
Sahibabad factory / Dabur Research
1979
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
Dabur crosses $2 Bin market Cap, adopts
2006
US GAAP
Approves FCCB/GDR/ADR up to $200
2006
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:

Vice-
Chairman 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      

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
Sunil Duggal (Electrical & Electronics) from BITS, Pilani, and Business
Chief Executive Officer Management from IIM, Calcutta. His stint at Wimco
Dabur India Limited 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
Corporate Office

Kaushambi
Ghaziabad - 201010
Registered Uttar Pradesh, India
Office Tel:
+91 (0120) 3982000 (30
Lines)
8/3, Asaf Ali
+91 (0120) 3001000 (30
Road, 
Lines)
New Delhi –
110 002
Tel: +91 (011)
23253488

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 Dabur Real Bags Gold In Reader's  
Respected FMCG Companies Digest Trusted Brand Awards
Dabur Figures In Top Great Place To
Work 2006 List

22
        
 

Dabur has been Hajmola has been Hajmola, one of the  

ranked amongst ranked 34th in India’s strongest brands in
India's Most 100 Most Valuable Dabur's portfolio, has
Innovative Companies Brands list been listed among the
by a Business Today- Top 18 Iconic Brands
Monitor Group in India that have
survey stood the test of time
 

Dabur India’s fruit Three Dabur brands Hajmola moves up 11  

juice brand Réal -- Hajmola, Dabur spots to take the 34th
awarded the Reader’s Amla and Vatika -- position among
Digest Gold Trusted have debuted in the India's Top 100 Most
Brand Award 2008 in Economic Times Valuable Brands of
the food & beverages Brand Equity's Most 2008, released by 4Ps
category Trusted Brands 2008 and ICMR
list. Besides, Dabur
Foods has climbed up
to take the 40th spot

 
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 Dabur India Ltd has been ranked 28th in the list of India's Top 50  
Most valuable (Company) Brands by Brand Finance
 

Accolades 2009-10

Dabur is among Top 5 Dabur ranked 19th

Dabur placed 158 in BS- Dabur is category w
Indian brands to look amongst India's Best
1000 list. In the Super in FMCG-Personal C
out for in 2010, says Wealth Creators by
Rank, Dabur placed No 9 biggest wealth cre
MSN DSIJ

Dabur moves up 12 Dabur India CEO

Dabur India Ltd moves
places to take 79th Sunil Duggal among Dabur is India's 25t
up 6 places In ET- 500
position in Super 100 India's Most Valuable Bran
List for 2009
list for 2009 'Value'able CEOs

Dabur bags Top Uveda, Vatika

Dabur ranked as 60th Dabur ranked 25t
Marketer Award for conditioner ranked True
Most Valuable Indian India's 100 Most Va
2009 in Consumer Champions of Style by
Company in 2009 Brands
Goods market Elle magazine

         

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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. 

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 Manufacturing facilities spread across 3 overseas locations to
optimise production by utilising local resources and the most modern
technology available.

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 1.10 MISSION & VISION

MISSION

 The mission of DABUR company is to improve its quality of products.

 Another mission is to improve the packaging of products and to bring more

and more development in its quality.

 Its strategy is to build trusted and strong relationships with its customers by
promising them of giving valued customer satisfaction.

VISION

 "Dedicated to the health and well being of every household" .

.

 
 
 

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 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 2
DABUR 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

35
 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

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 Babool Toothpaste
 Dabur Lal Dant Manjan
 Dabur Binaca Toothbrush

Skin Care

 Gulabari
 Vatika Fairness Face Pack

Ayurvedic Specialities

 Ayurveda
 Ayurveda Vikas

37
 2.2 MARKETING MIX

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.

38
 A Summary Table of the Marketing Mix

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 List price Channel members Advertising

Appearance Discounts Channel motivation Personal selling

Quality Allowances Market coverage Public relations

Packaging Financing Locations Message

Brand Leasing options Logistics Media

Warranty Service levels Budget

Service/Support

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.

39
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

40
Channel members: Channel members or business partners of dabur are its stockiest,
retailers.

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.

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 2.3 MILESTONES OF DABUR PRODUCTS

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.
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

43
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
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

44
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

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.

45
 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 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

46
  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.
 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

47
 CHAPTER 3
SELLING STRATEGY
&
CHANNELS OF DISTRIBUTION

3.1 SELLING STRATEGY

48
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."

49
 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

50
 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

51
 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

52
 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.

53
 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.

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

54
 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

55
 CHAPTER 4

FINANCIAL ANALYSIS

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

56
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

4.2PROIT AND LOSS ACCOUNT

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

57
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
1,057.7
Total Expenses 1,100.30 1,462.67 1,706.82 2,003.12
3
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

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

58
Per share data (annualised)
2,864.2
Shares in issue (lakhs) 5,733.03 8,628.84 8,640.23 8,650.76
0
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

4.3 FINANCIAL POSITION IN MARKET

59
 DABUR COMPETITION

Last Price Market Cap. Sales Net Profit Total Assets

(Rs. cr.) Turnover

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

60
 CHAPTER 5

CORPORATE GOVERNENCE

61
 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

62
 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.

 
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

63
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.
 
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.
 

64
65
 CHAPTER 6

SWOT ANALYSIS

66
 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

67
 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)

68
 6.3 OPPORTUNITIES

 Untapped Market(Chyawanprash)
 Market Development

 Export opportunities.
 Innovation
 Increasing income level of the middle class
 Creating additional consumption pattern

69
 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)

70
71