DABUR

1A Project Report On Marketing Strategies of DABUR INDIA LTD. To be submitted for the partial fulfillment of the Requirement for the degree of BBA from Dr. B.R. Ambedkar University, Agra Under the guidance Mr Prakash Chawla (Manager Marketing) Session ( 2009-2012) Submitted to: Submitted by: Ms. Akansha Shukla Jagdish Kumar (H.O.D.) BBA VIth Sem. Roll No. 92472 Uttam institute of technology management studies Runakta Kirawali Road, agra 2 P P R R E E F F A A C C E E A research project report is the very important part of any management programme. It is a Launch Pad for introducing students to a real-life scenario, which cannot be simulated in the classroom. It not only enables the student to apply the theoretical knowledge in a practical scenario but also enables them to learn things beyond books. This is a period where the students add value to them self and learn management skills as well as the corporate culture. Only academic knowledge is not enough for the students, it is also necessary for them to have a slice of the practical corporate world wherein they can apply their knowledge and put their skills to a test. This is a first step towards corporate world. A research project report provides an opportunity for students, to satisfy their inquisitiveness to know more details, exposes them to technical skills, and helps them to acquire social skills by drawing them into communication with outside professionals for continuous interaction. 3 ACKNOWLEDGEMENTS It is essential to acknowledge the help received from the people of various quarters. I find myself at a loss as to how to thank them. These words are not a formality but a sincere voice of my heart & I owe gratitude to all of them. At the onset I would like to thank Ms. Akansha Shukla (H.O.D.) for providing me a wonderful opportunity to work on this project. Their valuable time and guidance went a long way in helping to make a quality work out of this project. I also owe my regards to my Faculty Members, who has helped me in every possible way to make this project a success. Last but not the least, I would like to thank all the Faculty members and Staff members who all helped me in completing my Project successfully. Jagdish Kumar BBA VIth Sem. Roll No. 92472 4 DECLARATION I, Jagdish Kumar student of BBA VIth Sem. Roll No. 92472 of Uttam Institute of Technology Management Studies, Runakta Kirawali Road, Agra hereby declare that this project work on “Marketing strategies of Dabur India Ltd” is my work, carried out under the guidance of my company guide Mr Prakash Chawla (Manager Marketing ) Dabur India Ltd, Agra. This report, neither in full nor in part, has ever been submitted for award of any other degree of either this university or any other university. Jagdish Kumar BBA VIth Sem. Roll No. 92472 Date : Place: Agra 5 Uttam Institute of Management Studies Runakta Kirawali Road, Agra Date ……….. Certificate This is to certify that Mr Jagdish Kumar student of BBA VIth Sem. has conducted an empirical research study and prepared this research report on “Marketing Strategies of Dabur India Ltd.” in the specialization area of Marketing. This project report is submitted in partial fulfillment of the award of BBA. degree of Dr. B.R. Ambedkar University, Agra. His work is original and authentic. Akansha Shukla H.O.D. 6 7 TABLE OF CONTENTS  OBJECTIVE  RESEARCH METHODOLOGY  INTRODUCTION TO DABUR  VISION  PRINCIPLES  OVER HUNDRED YEARS OF CARING  CORPORATE PHILOSOPHY  LOCATION OF OPERATIONS  COMPANY'S BUSINESS ACTIVITIES  MANUFACTURING UNITS OF DABUR  JOINT VENTURES  SUBSIDIARIES 8  COLLABORATIONS  DABUR PRODUCTS  AYURVEDIC SPECIALITIES  PHARMACEUTICALS  AYURVEDIC HEALTH TONICS  DIGESTIVES  CHILD CARE PRODUCTS  WOMEN CARE PRODUCTS  HAIR AND SKIN CARE  ORAL CARE  DABUR FOODS LIMITED  QUALITY POLICY  QUALITY OBJECTIVE 9  IMPORTANT STRATEGIES ADOPTED  LEVEL STRUCTURE OF ORGANISATION  LIST OF DIRECTORS  ECO-FRIENDLY DABUR  DOMINANT BRANDS  BRINGING UP DABUR  CONCLUSION  Bibliography 10 OBJECTIVES The main objectives of this project are:  To study the marketing strategies of Dabur India Ltd..  To analyze the effectiveness of the Marketing strategies of Dabur India Ltd.  To find out the sales and distribution of Dabur India Ltd. 11 RESEARCH METHODOLOGY COLLECTION OF DATA:-  Primary Data- The data which is collected for the first time and is the original data.  Personal interaction  Questionnaire  Secondary Data- This is the data which is collected from any other source and is the duplicate data.  Books  Journals  Internet  Company documents RESEARCH DESIGN :-  Descriptive Design Research Instrument :  Neither Structures nor disguised Questionnaire for retailers.  But there are a specific Questionnaire for house hold customers for finding their opinion. 12 SAMPLING PLAN:- Sampling Method :  Non-Probability Sampling [Convenience & Quota Sampling] Sample Size :  100 Retailers  1000 House hold customers Sample Unit:  Agra Sample Area :  Bhagwan Talkies  Sanjay Place  Sadar Bazar  Khandari  Khandari crossing  Divani  Delhi gate  Shahganj (pratap nagar)  Dayal bagh  Kamla nagar 13 LIMITATIONS OF THE STUDY This survey although carried out with fullest possible efforts and devotion, the limitation of the time, resources available and limited area chose may lead to limited representation of the universe. The major limitations from which the study suffers are as follows. Time Constraint:- Time factor has been a very big limitation in the research/survey like this. The respondents have limited time so they sometimes refuse to answer the questionnaire, also me as a surveyor has less time to conduct the survey. So the size of the sample was restricted to Agra. Biasness in Information:- It was felt that respondent did not come up with true responses, in several case the respondent answered the questions with the help of other family members and it was mostly in case of less educated person. 14 Financial Constraint:- The financial aspect, which includes the traveling cost, cost of administrating questionnaire and collection of data through other resources was also costly. Constraint Regarding the use of technique:- The deeper statistical techniques such as analysis using variance, multiple regressions etc., could not be adopted due to the constraint of time and efforts. So simple statistical techniques were used to analyze the data. 15 COMPANY PROFILE Dabur India Limited came into existence over 100 years ago in 1884 in Calcutta. The founder of Dabur India Limited- Dr.S.K.Burman (1856-1907) was a physician who brought Ayurvedic medicines for the masses of Bengal. His off quoted dictum is the guiding spirit behind Dabur even today: "What is the life worth which cannot bring comfort to others" And the Vision of DIL is: "Dedicated to the health and well being of every household" 16 INTRODUCTION TO DABUR Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. The founder, Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera and Plague were the common diseases. He was a physician who brought ayurvedic medicines to the masses of Bengal. Initially established as a proprietary firm for the manufacture of chemicals and ayurvedic drugs it was later on 19th November 1930 incorporated as private limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri P.C.Burman in the name of Dr S.K.Burman Pvt.Ltd. to expand the operations by setting up production facilities at Garia and Narendrapur, West Bengal and Daburgram, Bihar. Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a fresh certificate of incorporation was issued to that effect. In 1970,the bulk of manufacturing facilities were shifted from West Bengal to Faridabad in Haryana. 17 In 1975,vidogum and chemicals were incorporated in technical collaboration with Unipekin AG (Switzerland) for the manufacture of edible grade and industrial grade Guargum powder at Alwar in Rajasthan. In 1977,a modern automated plant was set up in Sahibabad (U.P.) for the manufacture of Chyawanprash, Asavrishthas, Hair oil, Tooth powders, Hajmola, and other Ayurvedic specialties. Certification for production of toiletries and food grade products was issued on 13th October 1986 by the registrar of Delhi and Haryana to the company, Dabur Private Limited, a closely held Public Limited Company. It was incorporated as a Private Ltd. Company in the name of Dabur (Dr. S.K. Burman) Pvt. Ltd. From a humble beginning in 1884, a manufacture of traditional medicine in Calcutta, Dabur has come a long way to become a multifaceted multinational, multi-product, modern Indian corporation with a global presence. It now enjoys the distinction of being the 2nd 18 largest FMCG Company and is praised to become a true Indian Multinational. The main plant was set up in Sahibabad (U.P.) in 1977 for manufacturing of Chyawanprash, hair oil, tooth powder, hajmola and other ayurvedic medicines and food products etc. Dabur's main line of business is in the sphere of Health care, Personal care and Beauty care. Its strength lies in natural and herbal preparations. Dabur's corporate philosophy has always been ahead of its time. The founder's initial success was mainly due to his direct main campaigns- a technique that became very popular nearly a century later. The company was one of the earlier Indian companies to have fully equipped R & D lab as early as in 1919. Today, the company has its own mainframes and computers are a way of life here. Dabur is also an ISO 9002 certified company. The 19 certification was obtained in 1995 by SGS YARSLEY international services Limited U.K. Dabur's revenue today exceed Rs.800 crores with plans to achieve Rs.2, 000 crores by year 2003. Dabur has 34,000 shareholders with market capitalization of over Rs.1, 400 crores. Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East. It has manufacturing base in Egypt also. The company has over 4,000 employees with around 1,500 looking after sales and marketing functions. The Indian market is being served through a transactional network of sales offices and carrying and forwarding agents. The company has its offices in London, New York and Moscow. Dabur products are being exported to around 50 countries. Dabur portfolio is exceeding 500 products of FMCG and health care products. 20 The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the unaudited financials of the company for the first quarter that ended on June 30, 2003. Company has recorded a growth of 36 per cent in its net profit per cent growth in its turnover during April-June 2003. The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period. The first quarter results should not be annualized as sales usually improve in subsequent quarters. 21 VISION "Dedicated to the health and well being of every house hold." Dabur is a company with a set of established business values, which direct it's functioning as well as all its operations. The guiding forces for Dabur are the words of its founder, Dr.S. K. Burman, "what is that life worth that can not give comfort to others." The Company offers its customers, the products to suit their needs and give them good values for money. The company is committed to follow the ethical practices in doing business. At Dabur, nature acts as not only the source of raw materials but also an inspiration and the company is committed to product the ecological balance. 22 PRINCIPLES  OWNERSHIP: This is our company. We accept responsibility and accountability to meet business needs.  PASSION FOR WINNING: We all are leaders in our responsibility, with a deep commitment to deliver the results. We are determined to be the best at doing what matters the most.  PEOPLE DEVELOPMENT: People are our most important asset. We add value 23 through result- driven training and we encourage rewards and excellence.  CONSUMER FOCUS: We have superior understanding of consumer needs and develop products to fulfill their demands.  TEAM WORK: We work together on the principle of mutual trust and transparency in a boundary less organization.  INNOVATION: 24 Continuous innovation in products and processes and is the base of our success. 25 DABUR OVER THE YEARS More than a century ago, a young doctor started with a vision to provide innovative and affordable health care products to Indian masses. Thus, was born an organisation today known as Dabur India Limited. The twelve hundred crores corporate today started with a small dispensary at Calcutta, the noble thoughts of Dr.S.K.Burman being the main source of inspiration behind the project. From that humble beginning, the company has grown into India’s leading manufacturer of consumer health care, personal care and food products. This phenomenal progress has seen many milestones, some of which are mentioned below:  1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited. Started from a small shop at Calcutta, he began a direct mailing system to send his 26 medicines to even the smallest of villages in Bengal. The brand name Dabur is derived from the words "DA" for Daktar or doctor and "BUR" from Burman.  1896: As the demand for Dabur products grows, Dr. Burman felt the need for mass production for some of his medicines. He set up a small manufacturing plant at Garhai near Calcutta.  Early 1900s: The next generation of Burman's take a conscious decision to enter the Ayurvedic medicines market, as they believe that it is only through ayurveda that the healthcare needs of poor Indians can be met.  1919: The search for processes to suit mass production of ayurvedic medicines without compromising on basic ayurvedic principles lead to the setting up of the first Research and Development laboratory at Dabur. This initiate a pain staking study of ayurvedic medicines as 27 mentioned in age old scriptures, their manufacturing processes and how to utilize modern equipment to manufacture these medicines without reducing the efficacy to manufacture these medicines without reducing the efficacy of these drugs.  1920s:A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and Daburgram. Dabur expands its distribution network to Bihar and northeast.  1936: Dabur India (Dr. S.K.Burman) Pvt.Ltd. is incorporated.  1940: Dabur diversifiers into personal care products with the launch of its Dabur Amla Hair Oil. This perfumed hair oil catches the imagination of the common man and film stars alike and becomes the largest hair oil brand in India.  1949: Dabur Chyawanprash is launched in a tin pack and 28 becomes the first branded Chyawanprash of India.  1956: Dabur buys its first computer. Accounts and stock keeping are one of the first operations to be computerized.  1970: Dabur expands its personal care portfolio by adding oral care products. Dabur Lal Dant Manjan is launched and captures the Indian rural market.  1972: Dabur shifts base to Delhi from Calcutta. Starts production from a hired manufacturing facility at Faridabad.  1978: Dabur launches the Hajmola tablets. This is the first time that a classical ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.  1979: The Dabur Research Foundation (DRF), an 29 independent company is set up to spearhead Dabur's multi-faceted research. Commercial production starts at Sahibabad. This is one of the largest and most modern production facilities for ayurvedic medicines in India at this time.  1984: The Dabur brand turns 100 but is still young enough to experiment with new offerings in the market.  1986: Dabur becomes a public Limited company through reverse merger with Vidogum Limited, and is re- christened Dabur India Limited.  1989: Hajmola Candy is launched and captures the imagination of children and establishes a large market share.  1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing and marketing confectionery 30 items such as bubble gums in India.  1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.  1994: Dabur India Limited comes out with its first public issued at a premium of Rs.85 per share. The issue is subscribed over 21 times.  1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Pacitaxel). Dabur becomes only the second company in the world to launch this product. The Dabur Research Foundation develops the unique eco-friendly process of extracting the drug from the leaves of the Asian Yew Tree.  1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of France for cheese other dairy products. 31  1996: Dabur launches Real fruit juices, which heralds the company's entry into the processed food market.  1997: The foods division is created, compromising of real fruit juices and Homemade cooking paste to form the core of this division's product portfolio.  1998: Project STARS (Strive To Achieve Record Successes) is initiated by the company to achieve accelerated growth in the coming years. The scope of this project is strategic, structural and operational changes to enables efficiencies and improves growth rates.  1998: The Burman family hands over the reins of the company to a professional, Mr. Ninu Khanna joins Dabur, as the Chief Executive Officer.  1999-2000: Dabur achieves the Rs.1000 crores turnover 32 mark.  2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple active, orange active, homemade pappad, Vatika- an anti-dandruff shampoo.  2002: New launches homemade coconut milk (in south), Tang, Tomato puree, Vatika light.  2003: Dabur achieves Rs.1,232 crores turnover mark with an increase of 6 per cent. Turnover of FMCG reaches to Rs l048.5crores, which shows a profit of Rs. 72 crores. Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores. 33 CORPORATE PHILOSOPHY Knowledge is the key to growth in today's world. Whatever be the industry, it is the knowledge, which provides cutting edge to individual and organisations. For more than a century nature has been a rich source of knowledge for DABUR. Nature has not only gives it the ingredients for all its products but also has taught it how to create a harmony within and outside the organisation. Nature has inspired DABUR in all its acts. Ayurveda - the science of life is based on principles of nature. All ayurvedic preparation has their ingredients derived from nature. Dabur has converted the healing properties of natural ingredients and the age-old knowledge of ayurveda into contemporary health care to eliminate health problems of its consumers. Dabur is committed to expand the reach of its age-old knowledge of ayurveda and Nature through web. Through web the aim is to overcome the physical boundaries to take 34 ayurvedic way of life to global frontiers. Dabur India limited understands its responsibility as a corporate house. It has not only set a sight on increasing turnover and profitability of the company but also on propagating Ayurveda - The Indian System of Medicine. 35 LOCATION OF OPERATIONS Head office : Sahibabad, Ghaziabad (U.P.) Regd. Office : Asaf Ali Road, New Delhi Corporate office : Kaushambi, Ghaziabad (U.P.) Sales & Marketing : New Delhi OFFICES: Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar), Ahemadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad (A.P.), Chennai (TamilNadu), Bangalore (Kamatka), Kochi (Kerela), Guwahati (Assam), Kathmandu (Nepal), Russia, U.K. FACTORY: 36 Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani& Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt. C&Fa: Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.), Dehradun (U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati (Assam), Calcutta (West Bengal), Jaipur (Rajasthan), Ahemadabad (Gujarat), lndore (M.P.) Raipur (M.P.), Bhubaneshwar (Orissa), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad (A.P.), Chennai (TamilNadu), Bangalore (Karnataka), Cochin (Kerela). 37 THE COMPANY BUSINESS ACTIVITIES COMPRISES OF: HEALTH CARE PRODUCTS: Markets a range of OTC health care: products based on ayurveda, some of its products like Chyawanprash, Hajmola, Hajmola Candy, Pudinhara are market leaders with over 65 per cent market share in their respective categories. PERSONAL CARE PRODUCTS: It includes hair care, oral care and honey. Dabur Amla as a brand has made its mark beyond India; it is a leading hair oil brand in Middle East and Africa. Other well-known brands are Vatika, Dabur Lal Dant Manjan. AYURVEDIC SPECIALITIES: There is a range of over 400 Ayurvedic medicines. It has vast range of classical ayurvedic drugs and priority ayurvedic medicines developed by own R&D. PHARMACEUTICAL DIVISION: It includes a range of natural ethical products like Livfit, Lionitus, Legal etc, and angel of contract media and gynecological. This division has a major 38 presence in Anti-thronbolytic, Anti-migrane therapy and radio opaque dyes. ONCOLOGY: The formidable range includes brands such as Intel, Docetaxel that were manufactured in India for the first time by Dabur. The company is a market leader in this category in India and plans to establish itself as a general Oncology player in selective global market. BULK DRUGS AND CHEMICALS: Dabur manufactures synthetic and semi-synthetic bulk pharmaceutical substances, bulk natural compounds and intermediaries. Isolation of pure natural compounds and custom synthetics are focus areas. FOODS DIVISION: One of the youngest divisions of the company markets a range of sauces, ethnic pastes and foods. Real fruit juices gave Indian consumer for the first time, fruit juices with nothing artificial, no preservatives, no colour and no flavors added. Launched two years back, the range includes Real Juices and cooking pastes under the brand name Home 39 Made. NATURAL GUMS: This division manufactures and process Guar gums, Gum Karaya, tamarind based gums and psyllium husk. The division produces a range of industrial and grade natural gums to meet the customer specifications. AYURVEDIC VETERINARY: It deals exclusively in animal hea1thcare. Markets safe and non-toxic herbal veterinary products for poultry. 40 MANUACTURING UNITS OF DABUR Dabur India Limited has 12 manufacturing plants in India, Nepal and Egypt. Sahibabad unit1: Group generating a turnover of over Rs.250 crores. The key product line of this unit includes Asavs, Hajmo1a, Hingoli, Oncology medicines, Dabur Amla hair oil, Chyawanprash and Ashokarisht. The unit operated on these shifts as well as a general shift, with product lines running for one, two or three shifts according to the market demand and supply chain requirell1ents. Sahibabad unit 2: Recently established for manufacturing and packing Dabur hair oil in Pet Bottles. Baddi unit 1: The most modern plant for manufacturing ayurvedic medicines and honey, this unit was built following stringent guideline for pharmaceutical units. 41 Baddi unit 2: Manufacturing one of Dabur's most popular products-Dabur Chyawanprash, this unit also boasts of the most modern processing and packaging unit for the medicated oil Asavrishthas. Baddi Injectibles: This unit manufactures Oncologicals, and is certified by OGYI of Hungary and South Africa. Alwar: This unit manufactures food and print grade Natural gums, Psyllium Husk and Ayurvedic Veterinary products. Narendrapur: One of Dabur oldest plant. It produces Ayurvedic medicines and Honey. Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to manufacture oncology bu1k drugs of critical importance. Katni: Set up in the heart of Amla producing belt of India. This unit manufactures Amla pishi, an essential ingredient in 42 Dabur Chyawanprash. Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most important besides Sahibabad and Baddi. This modern manufacturing unit churns out Ayurvedic Medicines, Oral Care and Hair Care Products, Honey and Fruit Juices. It also has the facility to process leaves of the Asian Yew Tree to extract Paclitaxel, an important part of all anti-cancer products. Egypt: This part was established to serve Saudi Arabia and the fast growing African market. It manufactures Hair and Skin Care and Food products. JOINT VENTURES Dabur International Limited: Dabur has also collaborated with Bongrain of France for the manufacture and marketing of speciality cheese and other Dairy Products. This joint venture company has already made its presence felt in the Indian cheese market through the launch of processed 43 cheese under the brand name Lebon, and a specialty cheese under the brand name Delicieux. SUBSIDIARIES Dabur has six subsidiary units, which come under the umbrella of the Dabur India Organisation. These are: Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India Limited, is spearheading Dabur's foray into food processing industry. The company, set up in April 1999,is marketing a range of fruits juices under the brand name Real, Homemade Cooking Paste and Sauces and Lemoneez -- lemon juice. Dabur was the first company in India to introduce fruit juices in packaged form without any artificial additive. Real is today the market leader in this category with more than 50 per cent market share. Homemade cooking paste is the only national brand in this category. Lemoneez is the only product in its category available in unique drop and trickle pack and uniquely shaped tabletop pack. 44 Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for Dabur group. The company is today the leading exporter of Nepal and the third largest and most modern manufacturing base for Dabur. Dabur Nepal is today involved in promoting cultivation of herbs and apiculture activities in Nepal. The Company has set up state of the art greenhouse at Banepa for developing sampling for 20 medicinal plants. Dabur Nepal has also set up an Apiculture center for promoting bee-keeping activity in Nepal and developing queen bee colonies for exports. Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base set up a couple of years back to cater to the demands of Middle East and African market is producing Hair Care, Skin Care Products and foods. Dabur oncology PIc: Set up recently in UK, this subsidiary of Dabur India Limited will be manufacturing anti-cancer formulations for European market. The company is in the process of setting up manufacturing base near London and is expected to start operation from year 2001. 45 Dabur Research Foundation (DRF): Incorporated in 1979, is a premier research organisation recognized by Department of Scientific and Industrial Research, Government of India. It is situated at Sahibabad, Ghaziabad, Uttar Pradesh. DRF today is known for its path breaking research in the field of health care and personal care. The foundation is on the forefront of oncology research and is in the process of developing many new molecules to fight with a dreaded disease like Cancer. In fact DRF was the first organisation in the world to develop a process for extraction of Paclitaxel, a drug, for cancer without harming its source tree. This process has now become a universal one. Herbal health care is an area where Dabur Research Foundation has made immense contribution by doing research and development work using modern pharmaceutical protocols. 46 OTHER ASSOCIATE COMPANIES OF DIL  REROCK LIMITED.  BRITISH HEALTH PRODUC'TS LIMITED.  NORTHERN AROMATICS LIMITED.  BURMAN LABORATORIES LIMITED.  DABON INTERNATIONAL LIMITED.  MAXCARE INTERNATIONAL LIMITED.  PRECISE LABORATORIES LIMITED. 47 COLLABORATIONS Dabur Foods Limited: 100% subsidiaries (taking care of all the food products) Dabur Nepal Limited: Wholly owned subsidiary in collaboration with DRF Dabur Egypt Limited: Wholly owned subsidiary. Dabur Oncology Limited: Wholly owned subsidiary. Dabur Overseas Limited: Owned subsidiary. Dabur International Limited: Subsidiary (not yet commenced business) 48 49 DABUR PRODUCTS A vast array of products touching the lives of almost every individual, from an infant to a grand old man, from poor to rich that's how the Dabur range of health personal care and food products could be best explained. Today Dabur trust has travelled beyond the boundaries of India and is available in more than 50 countries worldwide. AYURVEDIC SPECIALITIES Ayurvedic Specialties is a range of over 350 Ayurvedic drugs and proprietary Ayurvedic Medicines- developed by Dabur's own Research and Development department. Dabur has products for all the 16 categories as defined in the Ayurveda. Some of the leading products in this category are: Asav Arishtas: These are medicated decoctions with self- 50 generated alcohol contents. Churnas: These are finely ground medicinal powders used to treat a variety of ailments ranging from digestive problems to cough and fever. Ras Rasayanas: Preparations containing mineral drugs as main ingredients are called Ras Rasayanas. Medicated oil: The oils boiled along with certain prescribed drugs are known as medicated oils. These oils retain the curative properties of herbs and are used for injunction and massage. PHARMACEUTICALS Branded Pharmaceuticals: It includes a range of natural ethical products like New Livfit, Honitus, Uigeletc and a range of contrast media and gynecological. Oncology: This wide and formidable range includes brands 51 such as Intaxel, Docetaxel and Topotecan, all of which were manufactured for the first time in India by Dabur. Little wonder then, that Dabur is the undisputed market leader in this category in India and has plans to establish itself as a generic oncology player in selected global market. Bulk drugs and Chemicals-this range consists primarily oncology category. Healthcare is one of the biggest and the oldest divisions of Dabur with a wide range of OTC healthcare products. It comprises of: 52 AYURVEDIC HEALTH TONICS Chyawanprash: The leader in the Chyawanprash market in India, Dabur Chyawanprash is one of the most well known Ayurvedic products in India & abroad. An effective herbal immunodulator, Dabur Chyawanprash has the essential goodness of amla & over 50 other herbs. Dabur has conducted several clinical trials on this product, which confirm its efficacy as a unique product that strengthens the body from within. DIGESTIVES Hajmola Tablets: Hajmola tablets are the first classical ayurvedic product to be branded and positioned as fun-filled products with medicinal properties. It finds mention in ayurvedic scriptures as Kshudhavardhak bati & was branded as Hajmola, a name derived from Hajma, which means digestive in Urdu. It is available in regular & tamarind flavors. Hajmola Candy: To cash in on the brand equity enjoyed by Hajmola, Dabur launched Hajmola Candy in 1989. Since then, 53 the company has added Mango & Tamarind flavors besides the regular one. Pudin Hara: One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid as well as capsule form. It has a special combination of mint oils and cures gastric problems without any side effects. The company has added effervescent powder with goodness of mint for gas and acidity and named it Pudin Hara G. Hingoli: Asafetida or Hing is mentioned in Ayurveda as an effective aid in digestion, and is used a lot in Indian cooking. Dabur's Hingoli has all the goodness of asafetida & other herbs. CHILDCARE PRODUCT Dabur Lal tail: The largest baby massage oil in India. It has the goodness of herbs, which helps in strengthening the bones of infants. Dabur Janam Ghutti: This Ayurvedic preparation helps in 54 strengthening the digestive system of new ones. WOMEN CARE PRODUCTS Efarelle comfort: An herbal medicine in self-gel capsule form to overcome abdominal pain during PMS. A combination of natural oils this formulation gives immediate relief from pain without any side effects. The largest division in terms of sales, the Family Product Division of Dabur has in its portfolio- hair care and skin care products, oral care and food product like Honey. HAIR & SKIN CARE Dabur is the leader in hair care products in India and has covered almost all the categories of hair oils. Dabur Amla Hair Oil: As a brand has made its mark beyond India and is a leading hair oil brand in middle East and Africa. A perfumed heavy hair oil, it is Dabur's largest brands. 55 Dabur Special Hair Oil: It is light hair oil that combines the natural hair care properties of lemon and hibiscus. Vatika: The fastest growing brand in India, Vatika has single- handedly created an altogether new category of herbal enriched natural oils. The Vatika range also includes an herbal shampoo, which has made its mark in the very fast year of its launch in the competitive shampoo market of India. The company has recently launched Vatika Anti-Dandruff Shampoo having herbal ingredients to fight the problem of Dandruff. Gulabari: Rose water derived from best of Indian roses makes the skin supple and glowing. ORAL CARE Dabur Lal Dant Manjan: It is the second largest brand of India and the largest in coloured tooth powder category. This herbal tooth powder is very popular in rural parts of India. 56 Binaca Tooth Brushes: After having acquired this dormant brand a few years back, Dabur launched toothbrushes under this umbrella. There are plans to launch other oral care products under the Binaca brand. Dabur Honey: When repositioned in 1993, it totally changed the perception of Indian consumers. Launched over two years back Dabur food range include juices under the brand name Real & cooking paste under the brand name Homemade. 57 DABUR FOODS Ltd. Dabur Foods Ltd, a 100% subsidiary of Dabur India Ltd., is making foray into food processing industry. The company, setup in April 1999, is marketing a range of fruit juice under the brand name Real, home made cooking paste & sauces & Lemoneez- lemon juice. Dabur was the first company India to introduced fruit juices in packaged form without any artificial additives. Real is today the market leader in this category with more than 50 per cent market share. Homemade cooking paste is the only national brand in this category. Lemoneez is the only product in its category available in unique pack & uniquely shaped tabletop pack. 58 QUALITY POLICY At Dabur, quality is a relentless commitment to continuous improvement in products, process and systems to provide consistent quality products to meet customer's requirements worldwide. The management is fully committed to quality and ensures all resources to accomplish this task. Dabur has been on steep path for few years. Its sales turnover has increased from Rs.530 crores in 1995 to Rs.1166 crores in 2000-01. In 1999-2000, overall growth of 13.5 per cent was recorded in sales (Rs.1000 crores plus) with Family Product Division recording a growth of--15.85 per cent, Health Care Division- 12.3 per cent, Ayurvedic Specialties Division -27 per cent and Pharmaceuticals Division- 20 per cent. Exports recorded a growth of 11 per cent in 1999-2000,amounting to Rs.114.16 crores. The major contributions of growth were herbal products, bulk drugs & anti-cancer formulations. Gross margin 59 showed an improvement of 4 per cent and net profit amounted to Rs.77 crores. In 2000-01,sales turnover had recorded a growth of 12 per cent, amounting to 116.5 crores and net profit had soured by 39.2 per cent amounting to Rs.78.5 crores. Sales turnover in light of such growth path has been targeted for Rs 2000 crores in 2003-04. The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the unaudited financials of the company for the first quarter that ended on June 30, 2003. Company has recorded a growth of 36 per cent in its net profit per cent growth in its turnover during April-June 2003. The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period. 60 The first quarter results should not be annualized as sales usually improves in subsequent quarters. 61 QUALITY OBJECTIVES  To focus on customers successfully and to strive to meet their needs and requirements.  To manufacture effective health care products at competitive prices and to improver the Quality of Life of common masses.  To implement and emphasise on systems to ensure prevention of errors rather than detection of errors.  To ensure global competitiveness by striving to achieve Current Good Manufacturing Practices (CGMP).  To ensure safety in all operations and to follow the systems in all areas of operations.  To continually train people to build up and upgrade skills and expertise and to involve them to become committed to the quality process.  To reduce wastages within the organisation and increase productivity. 62 IMPORTANT STRATEGIES ADOPTED  "Developing to built" philosophy for HR personnel.  Shifting to zonal set up of sales and marketing to facilitate better distribution.  Adopting contribution enhancement plan for performance management.  Empowering employees through Employee Stock Purchase Option Plan.  Backward integration strategy in Ayurvedic Products by engaging in plantation of herbs needed for the production of Ayurvedic Products.  Continuous enhancement of automation.  Continuous emphasis on Research & Development (DRF 63 i.e. Dabur Research Foundation is a separate company working in collaboration with Dabur solely for the purpose of R&D). 64 LEVEL STRUCTURE OF ORGANISATION Vice President General Manager Deputy General Manager Senior Manager Manager Assistant Manager 65 Officer Assistant Officer Supervisor/Chemist Senior Mechanic/Senior Assistant Mechanic/Junior Chemist Junior Mechanic 66 Workers 67 MANAGEMENT, DIRECTORS AND BANKERS CEO Mr. Sunil Duggal LIST OF DIRECTORS DESIGNATION NAME Chairman Mr.Vivek Chand Burman Vice Chairman Dr.Anand Burman Directors Mr.Ashok Chand Burman Mr.Siddharth Burman Mr.Pradip Burman Mr.Amit Burman 68 Mr.S.M.Dutta Mr.Ashok Geonka Air Chief Marshal Nirmal Chand Suri (Retd.) Mr.Uday S.Kotak His Highness Maharaja Gaj Singh Raja Vijay Karan Mr.Pritam Das Narang Mr.Ajay Bahl Mr.P.N.Vijay BANKERS Punjab National Bank, ANZ Grendlays Bank Ltd., American Express Bank Ltd, The Hong Kong &Shengai Banking Corp. 69 Ltd., State Bank Of India, Deutsche Bank AG, ABN Amro Bank NV, Citibank NA, United Bank Of India. ECO-FRIENDLY DABUR Dabur is committed to maintaining the ecological balance. It understands the need for a healthy and eco-friendly environment for the existence living beings. The company's reforestation program aims at planting medicinal herbs, plants and trees in the Himalayan range extending in to Nepal. An in- house tissue culture program actively supports this exercise. PERSONNEL DEVELOPMENT IN DABUR  Personnel department is headed by Vice- President (HR)  Functions of Vice President (HR)  Personnel administration  Recruitment and Promotion  Industrial Relations  Human Resource Group  Human Resource Development 70  General Administration and Welfare  Public Relations  Security/Fire Vigilance  Medical Services  Implementation Of Official Language Policy (Hindi)  Land Acquisition The above functions are grouped under different General Managers/Deputy General Managers. These executives provide support to Vice President (HR) on different issues, which arise in Headquarter/regional offices and field. Vice President (HR) has the responsibility of keeping the Board of Directors informed on the above mentioned personnel activities and also on Industrial Relations. In addition to this, he is also expected up date senior officials in their respective areas. DOMINANT BRANDS  Amla Hair Oil 71  Vatika Hair Oil  Red Tooth Powder  Chyawanprash  Hajmola Tablets  Asavs  Hajmola Candy  Real Fruit Juice  Honey  Pudin Hara BRINGING UP DABUR 72 Dabur has made a mark and created a space for itself while catering to the needs of the Indian customers. It fulfills all their requirements while assuring the quality product. Asking about the name of the five largest FMCG companies in India one is likely to dash of one of that own desi -sounding brands like Chyawanprash, Vatika, Hajmola etc. This is the stand of Dabur that it has acquired over the years. Dabur India Ltd. is the India's fourth largest FMCG Company, having a turnover in fiscal 2000-01 at Rs.1,167 Crores, ahead of big and mighty multinationals such as Proctor & Gamble, Rickitt and Coloman, Johnson & Johnson. The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the unaudited financials of the company for the first quarter that ended on June 30, 2003. Company has recorded a growth of 36 per cent in its net profit per cent growth in its turnover during April-June 2003. 73 The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period. The first quarter results should not be annualized as sales usually improve in subsequent quarters. However, most of its turnover comes from two divisions - Family Product Division (FPD), accounting for 40 percent, and secondly, Health Care Division (HCD), which accounts for 30 per cent. FPD is Dabur's biggest, having the biggest product - Dabur Amla Hair Oil, and a brand of Rs.160 Crores in fiscal 1999-2000.The strategies in the hair care market emphasis brand extension. It plans to launch two new products, Amla light and Vatika light over the next few months. A separate company, Dabur Foods, looks after food products such as real fruit juice and homemade of pastes. Dabur sees a 74 lot of potential in the "real" brand-currently Rs.30 crores brand, which claims 3 per cent market share. Two another divisions of Dabur, Ayurvedic specialties, and Pharmaceuticals, constitute 8 per cent and 7 per cent respectively of its turnover. The Pharmaceuticals division is internally considered of great promise with the potential of producing safe medicines much required by mankind. Its most promising product is anti-cancer drug, Intaxel, which is prepared of ingredients from the Himalayan Yew Tree. Dabur Amla, which is derived from vegetables and minerals, has an 80 per cent market share in the heavy perfume hair oil segment. The other leading brand in the Hair Care Division, Dabur Vatika shampoo was launched at the end of 1998.In the fiscal year 1999-2000,it was Rs.2 crores brand with a 30 per cent market share of Rs.75 crores herbal shampoo market. All the products of Dabur are prepared from natural extracts; they are pure and nutrition. Dabur's brand offers products both for fun or health; Dabur has a brand to match to the demands 75 of majority of cross-section of the people across various market segments, different cultures and also tries well to cater to the global demands. BRAND PORTFOLIO STRENGTH  The products offered by Dabur are unique thus attracting many consumers. 76  The brands are strongly enriched in traditional usage and habits.  The brands are prepared in active collaboration with the mother nature and Dabur is also having right consideration that its products do not cause any harm to the environment thus takes necessary steps.  The products offer immense potential for growth and extension. 77 DABUR INDIA LIMITED HELP TAKEN FROM HDFC Securities Ltd Parent Company : Dabur India Limited HSL Code : DABIND BSE Code : 96 NSE Code : DABUR Income Statement Balance Sheet Latest Results Ratio Analysis Earnings Income Statement As on (months) 31-Mar- 10(12) 31-Mar- 09(12) 31-Mar- 08(12) Profit / Loss A/C Rs mn Rs mn Rs mn Net Sales 9977.60 10801.70 10272.40 Operating Income 10027.36 10838.97 10349.79 OPBDIT 1321.21 1317.06 1187.23 OPBDT 1252.24 1146.25 947.74 OPBT 1073.70 909.64 693.80 Non-Operating Income 60.70 45.68 61.31 Extraordinary/Prior Period -35.44 -31.93 -49.65 Tax 87.50 74.30 55.10 Profit after tax(PAT) 1011.46 849.08 650.36 Cash Profit 1189.99 1115.67 959.87 Dividend-Equity 572.50 400.05 142.75 78 Balance Sheet As on 31-Mar-10 31-Mar-09 31-Mar-08 Assets Rs mn Rs mn Rs mn Gross Block 2648.64 3186.84 3731.96 Net Block 1472.23 1779.97 2260.40 Capital WIP 63.38 248.05 160.58 Investments 561.43 1167.86 1166.70 Inventory 1114.98 1786.52 1585.33 Receivables 420.72 1166.58 1199.66 Other Current Assets 1814.06 1180.94 1358.17 Balance Sheet Total 5446.79 7329.93 7730.85 Liabilities Rs mn Rs mn Rs mn Equity Share Capital 286.25 285.75 285.59 Reserves 2320.53 3782.61 3660.06 Total Debt 398.13 1100.08 2135.02 Creditors and Acceptances 1621.42 1547.03 1210.73 Other current liab/prov. 820.47 614.45 439.45 Balance Sheet Total 5446.79 7329.93 7730.85 79 LATEST QUARTERLY/HALF YEARLY As On (months) 30-Sep-10(3) 30-Sep-10(3) Profit / Loss A/C Rs mn Rs mn Sales of Products/Services 2895.50 3367.40 Other Income 27.20 21.80 Total Income 2922.70 3389.20 Total Expenses 2393.80 2900.60 Stock Adjustments 0.00 0.00 OPBDIT 528.90 488.6 Interest 9.10 20.00 Depreciation 41.00 46.80 Extraordinary Items 0.00 0.00 Prior Period Adjustments 0.00 0.00 Provision for Tax 47.50 43.60 After Tax Profit 431.30 378.20 Equity Capital 286.30 0.00 Reserves 0.00 0.00 NET PROFIT AFTER INTEREST , DEPRECIATION & TAX FOR QUARTER ENDED SEPTEMBER 30,FOR YEAR 2003 &2004 (in Rs million) 80 NP INCREASED BY 14.04 % IN A QUARTER 350 360 370 380 390 400 410 420 430 440 378.2 431.3 30sep03(3) 30sep04(3) 81 RATIO ANALYSIS As on 31-Mar-10 31-Mar-09 31-Mar-08 OPBIT/Prod.cap.empl.(%) 92.96 29.34 19.91 PBIT/Cap. Employed (%) 39.71 22.24 15.96 PAT/Networth (%) 38.80 20.87 16.48 Tax/PBT (%) 7.96 8.05 7.81 Total Debt/Networth (x) 0.15 0.27 0.54 Long Term Debt/Networth (x) 0.05 0.05 0.07 PBDIT/Finance Charges (x) 19.52 7.79 5.01 Current Ratio (x) 1.37 1.91 2.51 RM Inventory (days consumption) 38.98 55.15 39.97 FG inventory (days cost of sales) 19.07 31.33 36.12 Receivables (days gross sales) 14.44 36.91 40.25 Creditors (days cost of sales) 67.98 59.30 48.23 Op. curr. assets (days OI) 80.00 137.00 137.00 82 CURRENT RATIO(CURRENT ASSETS / CURRENT LIABLITY) IDEAL RATIO= 2:1 But in DABUR it is decreasing at a alarming rate & for the year end 31mar,04 it is just 1.37:1. So in my view it should be find out that where the company is lacking and how can this problem be rectified. 0 0.5 1 1.5 2 2.5 3 2.51 1.91 1.37 31-Mar-02 31-Mar-03 31-Mar-04 83 DABUR ENJOYING ITS SUCCESS It can be very well seen in the given below diagrams that DABUR is utilizing its success completely by leaving the good impression of its growth on the debtors as well as creditors. AVERAGE COLLECTION PERIOD of Creditors & Debtors are showing the inverse trends. Year by year ACP is increasing in case of creditors where as decreasing incase of debtors. This shows that people are ready to work with ‘DABUR’ at any cost. 0 10 20 30 40 50 60 70 48.23 59.3 67.98 31-Mar-02 31-Mar-03 31-Mar-04 84 CREDITORS(DAYS COST OF SALES) DEBTORS(DAYS GROSS SALES) 0 5 10 15 20 25 30 35 40 45 40.25 39.61 14.44 31-Mar-02 31-Mar-03 31-Mar-04 85 EARNINGS As on 31-Mar-10 31-Mar-09 31-Mar-08 EPS (Rs.) 3.53 2.97 2.28 CFPS (Rs.) 4.16 3.90 3.36 Book Value (Rs.) 9.11 14.24 13.82 DPS (Rs.) 2.00 1.40 0.50 EARNING PER SHARE IN DABUR (I) FOR 3 YEARS 86 0 0.5 1 1.5 2 2.5 3 3.5 4 2.28 2.97 3.53 2002 2003 2004 87 DIVISION WISE BREAK DOWN OF CONSOLIDATED REVENUES FINANCIAL YEAR 2009- 10 CHYAWANPRASH – Largest Ayurvedic medicine with market size of about Rs. 2 billion. Dabur is market leader with 65% share. 88 INTERIM DIVIDEND OF 100% DECLARED BY THE BOARD 89 BIBLIOGRAPHY  Gupta C.B., Human Resource Management, Sultan Chand & Sons, New Delhi.  Dcenzo & Robbins Human Resource Management, Prentice-Hall International.  Monappa, Arun Managing Human Resources, McMillan India  www.dabur.com T.V. Magazines News Paper 90