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The story of Dabur is more than a century old when it was established as a small pharmacy by Dr.

S K Burman, in 1884, in Kolkata (erstwhile Calcutta). Since than, it is a story of success based on innovative ideas, dedication to nature, corporate and process hygiene, dynamic leadership and commitment to the partners and stakeholders. Dabur established its first production unit at Garhia in 1896 and it was one of a very few Indian companies to start its own R&D unit in 1919. The company has gone a long way in popularizing and making easily available a whole range of products based on the traditional science of Ayurveda. In early 1900 itself, Dabur identified nature-based Ayurvedic medicines as its area of specialization. It is the first company to provide health care through scientifically tested and automated production of formulations based on the Indian traditional science. Subsequently, Dabur was incorporated as a Pvt. Ltd. Company Dabur (Dr. S K Burman) Pvt. Ltd. In 1936. There has not been any looking back for the giant from that time. Seeing an immense potential to serve the Indian customer with low-cost high quality ayurvedic products for personal care, Dabur introduced the first packaged and branded hair oil Dabur Amla Hair Oil in 1940, which eventually became the largest selling hair oil in the country. Today Personal care is the largest SBU contributing to 45% sales of Dabur and comprises of the following products Products related to Hair Care, Skin Care, Oral Care and Foods 3 leading brands - Vatika, Amla Hair Oil and Lal Dant Manjan with Rs.100 crore turnover each Vatika Hair Oil & Shampoo the high growth brand Strategic positioning of Honey as food product, leading to market leadership (over 40%) in branded honey market

However, healthcare remained to be the prime-focus for the company and it is the 2nd largest SBU with 28% share in sales Products related to Health Supplements, Digestives, Baby Care and Natural Cures. Leadership in Ayurvedic and herbal products market with highly popular brands. Dabur Chyawanprash the largest selling Ayurvedic medicine with 65% (Rs.127 crore) market share. Leader in herbal digestives with 90% market share, Hajmola tablets in command with 75% market share of digestive tablets category Dabur Lal Tail tops baby massage oil market with 35% of total share

Innovation has been the key all along. Dabur Chyawanprash was the first packaged and branded Chyawanprash in India, when it was launched in 1949. Subsequent to the launch of Hajmola Tablets in 1978, when the market became competitive and the market-share of hajmola started dropping, the ayurvedic digestive formulation was converted into a childrens fun product with the launch of Hajmola Candy which became an instant hit. Dabur also introduced Lal Dant Manjan way back in 1970 which is a conveniently packaged herbal toothpowder made available at affordable costs to the rural masses. In the Ayurvedic medicines segment, Dabur today has more than 250 products sold through prescriptions as well as over the counter Major categories in traditional formulations include:

- Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils Proprietary Ayurvedic medicines developed by Dabur include: - Nature Care Isabgol - Madhuvaani - Trifgol The company shifted based to Delhi from Calcutta in 1972 and started commercial production at Sahibabad, the most modern herbal medicines plant at that time. With the technology at the helm in Dabur, by 1995, in addition to the existing products, the company exported products like an improved version of Chyawanprash with more honey and less pungency, liquid form of Chyawanprash, an aqueous based hair-vitalizer , Melatonine etc all in-house innovations. Dabur captured the imagination of young Indian consumers in 1996, 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 became the fastest growing and largest selling brand in the country. Subsequently, Dabur Foods also took the route of ethnic cooking pastes and chutneys to enter Indian kitchens when Hommade was born. The giant completed 100 years in the year 1984 and became a Public Co. Ltd. With the first maiden public issue in 1994. in 1998, Burman family - one of the most forward looking entrepreneurs at that time, handed over the management of the company to professionals against one of the very first few Indian Businesses having done so. The result Dabur established its market leadership status by staging a turnover of Rs. 1000 crores by the year 2000. Across a span of 100 years, Dabur had grown from a small beginning based on traditional health care to a commanding position amongst the august league of large corporate businesses. However, there was no place for complacency at Dabur. Dabur established its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation, which was set up as early as in 1978, developed an eco-friendly process to extract the drug from its plant source. Three domestic pharma companies Cadilla Pharmaceuticals, Shantha Biotech and Dabur India, signed an agreement with the department of biotechnology, Govt. of India, for developing and marketing basic molecules in leprosy, hepatitis and tumor disease segments. With the setting up of Dabur Oncology's sterile cytotoxic facility in 2001, the Company gained 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. As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated green houses in Nepal which help to produce saplings of rare medicinal plants that are under threat of extinction.

Dabur is also implementing IT in a big way, which shall help in integrating a vast distribution system spread all over the country and across the world and to cut costs and increase profitability. In Dabur India Ltd. Knowledge and technology are key resources, which have helped the company to achieve higher levels of excellence and efficiency.

Product Category Hairoil

Products

Vatika, Amla, Sarso (Anmol coconut) Vatika heena conditioning, rootstrengthening Anmol-natural shine, silky

Shampoo

Baby & Skin Care

Vatika fairness, Gulabari, Vatika fairness face pack Janmaghutti, Olive oil, Gripewater, Dabur lal tel

Digestive Health Supplements Oral Care

Hajmola range, Hingoli, Pudin hara Chyawanprash, chyawanshakti, Dabur Honey, Glucose Babool (rural market), Meswak (unani method), promise, Lal paste, Binaca, Promise

Home Care

Odomos, Odonil, Odopic, Sanifresh

Given Below is a Segment Wise Competitor list:

Category

Daburs Share 58% Real and Active

Main Competitors

Fruit Juice

Tropicanna

Fruit Drinks (coolers) Hair oil Coconut base Shampoo Vatika

1% Coolers 6.4% Vatika 7.1%

Frooti And Maaza

HLL

HLL and P&G

Hair care (overall) Chyawanprash

27%

HLL, P&G and Himalaya

64%

Himani, Zhandu and Himalaya Himani, Hamdard and local Players

Honey

40%

Digestives

37%

Paras and local players

Brand Rejuvenation: With youth forming a major population of India, Dabur decided to revamp its brand identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements. New packaging and advertising campaign saw the sales of Chyawanprash grow by 8.5 per cent in 2003-04. The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was replaced with a new, fresh Banyan tree.

The logo was changed to a tree with a younger look. The leaves suggesting growth, energy and rejuvenation, twin colors reflecting perfect combination of stability and freshness, the trunk represented three people raising their hands in joy, the broad trunk symbolized stability, multiple branches were chosen to convey growth, and warmth and energy were displayed through the soft orange color. Celebrating Life was chosen as a new tag that completely summarized the whole essence. The Chairman in his annual report message said, If I were to summarize your Companys performance during the year under review (2004-2005), it would be Pursuit of Profitable Growth. HR Initiaves: The culture at Dabur gives full autonomy to its employees. Various training and development programs like Young Manager Development Program, Prayas, Leading and Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to performance evaluation, helps employees realize their potential. Recently, Dabur has adopted an innovative HR program of offering ESOPs to new engineering and management trainees at the time of joining. Also in 2005, Dabur gave Bonus to its employees after 12 years. This boosted the employee morale further.

Dabur was listed as a Great Place to Work, in a survey conducted by Grow Talent & Company and Great Place to Work Institute, USA. Dabur was listed as the 10th Great Place to Work. The results were published in Business World dated February 2006. IT initiatives: Dabur installed centralized SAP ERP system from 1st April 2006 for all business units. It also implemented a country wide new WAN Infrastructure for running centralized ERP system. Further it set up new Data Center at KCO Head Office. Supply chain Initiatives: Dabur has undertaken e-procurement in a big way. In 2003-04 Dabur India procured Rs.210 crore of raw materials through e-sourcing or almost 50 per cent of total raw material expenditure and, in the process, considerably controlled raw material costs which were on a rise. For better production and operation management, Dabur included automation, debottlenecking, Kaizen and wastage control. It set up production units in locations providing tax holidays to reduce cost and improve efficiency. Other important changes: Dabur made its largest acquisition by taking over Balsara hygiene and home products business. Dabur bought the entire promoters stake of three Balsara companies through an all-cash deal of Rs.140 crore. This was done to ensure Daburs presence in all price segments in the herbal oral care market. Moreover, it allowed Daburs entry in the household care segment, where Balsara has well-established brands. Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player Dabur estimated that the southern region was contributing as low as 7% to its overall growth. For this purpose, the south team adopted a three-phase approach. First, it focused on point of sale promotions and stocking practices. Second phase included better marketing efforts in terms of advertising and packaging. Finally, it envisioned customized product launches for the Southern states. The completion of first two phases by 2005-06 resulted in increasing contribution to 10%. Vision 2010: After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has launched another plan for 2010. The main objectives are:

Doubling of the sales figure from 2006 The new plan will focus on expansion, acquisition and innovation. Although Daburs international business has done well growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.

Growth will be achieved through international business, homecare, healthcare and foods. Southern markets will remain as a focus area to increase its revenue share to 15 per cent.

With smoothly sailing through its previous plans, this vision seems possible. Time and again, Dabur has made decisions that have led to its present position. However, if Dabur could be more aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year performance table from Daburs website.

Dabut is one of the most widely known fmcg companies in India and here we bring you the SWOT analysis of Dabur India Strengths Dabur India is the fourth largest company in FMCG segment with a revenue of US$ 910 Millions Dabur has its own heritage, it is more than 100 years old , established in the year 1884 It has presence in around 60 countries across the world It is the worlds largest ayurvedic medicine provider Dabur has extensive distribution service network with 50 carrying & forwarding agents Dabur has the largest distributors in its respective segment, around 5000 The top performing five master brands are Dabur, Vatika, Hajmola, Real, Fem It has 17 sophisticated manufacturing facilities The product length includes around 300 prescribed products and few of them are sold over the counter Dabur product categories include health care, personal care, foods, home care, consumer health OTC/ethical, professional range Weaknesses Dabur doesnt have direct company outlets Lack of awareness of products by customers Doctors prescribe allopathy medicines as they get more incentives from medical companies and the share of ayurvedic companies are less compared to allopathy According to a survey the number of registered practitioners in Ayurveda is less than 3.7 lacks which is a meagre figure compared to allopathy doctors Ayurvedic medicine takes time to cure compare to allopathy medicine Opportunities Dabur is the worlds largest ayurvedic medicine and its export quantities are constantly in demand in foreign market The affinity towards yoga and Hinduism is proving more advantageous towards the reach of ayurvedic medicines globally People have started realizing that ayurvedic medicines like Dabur, Himalayas etc doesnt have much of side effects Growing womens earning power has made them independent and has made them to be more health and beauty conscious a segment in which Dabur too is trying to capitalise with its products

Improper and unhealthy food habits due to modernization has forced people to take ayurvedic supplementary like Chavanaprash, Hajmola, and life style medicines Ayurveda as a field is receiving much more attention across the world in the last 23 years. Thus huge opportunity for Dabur to capitalize on the market sentiments. Threats The allopathy players are of major threat as they invest heavily on advertising and distribution of their products through medical representatives etc Some ayurvedic doctors give their own medicines or give a mixture of Ayurvedic Companys product without packaging (loose medicines). This reduces the sales in the market and dilutes the brand image Since ayurvedic medicinal practise is obtained traditionally there are many untrained professions who take up the profession Lead and ferric content is more present in many ayurvedic medicine, this may sometime result in reverse side effects when consumer over longer period Kerala is an ayurvedic hub, for most of the treatments. Hence people visit directly and attend health camps to get cured

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