CASE 1 Dabur India Limited: Growing Big and Global

Dabur is among the top five FMCG companies in India and is

positioned successfully on the specialist herbal platform. Dabur has
proven its expertise in the fields of health care, personal care,
homecare and foods.
The company as founded by Dr. !. ". #urman in $%%& as small
pharmacy in Calcutta 'no "ol(ata), India. and is no led by his
great grandson *ive( C. #urman, ho is the Chairman of Dabur India
+imited and the senior most representative of the #urman family in
the company. The company head,uarters are in Gha-iabad, India, near
the Indian capital .e Delhi, here it is registered. The company has
over $/ manufacturing units in India and abroad. The international
facilities are located in .epal, Dubai, #angladesh, 0gypt and .igeria.
!.". #urman, the founder of Dabur, as trained as a physician. 1is
mission as to provide effective and affordable cure for ordinary
people in far2flung villages. !oon, he started preparing natural
remedies based on 3yurved for diseases such as Cholera, 4lague and
Malaria. Due to his cheap and effective remedies, he became to be
(non as 5Da(tar6 'Indianised version of 5doctor6). 3nd that is ho
his venture Dabur got its name7derived from Da(tar #urman.
The company faces stiff competition from many multinational and
domestic companies. In the #randed and 4ac(aged Food and
#everages segment ma8or companies that are active include
1industan +ever, .estle, Cadbury and Dabur. In case of 3yurvedic
medicines and products, the ma8or competitors are #aidyanath, *icco,
9handu, 1imani and other pharmaceutical companies.
Vision, Mission and b!e"ti#es
*ision statement of Dabur says that the company is :dedicated to the
health and well being of every household. The ob8ective is to
:significantly accelerate profitable growth by providing comfort to
others;. For achieving this ob8ective Dabur aims to<
= Focus on groing core brands across categories, reaching out to ne
geographies, ithin and outside India, and improve operational
efficiencies by leveraging technology.
= #e the preferred company to meet the health and personal grooming
needs of target consumers ith safe, efficacious, natural solutions by
synthesising deep (noledge of ayurveda and herbs ith modern
science.
= #e a professionally managed employer of choice, attracting,
developing and retaining ,uality personnel.
= #e responsible citi-ens ith a commitment to environmental
protection.
= 4rovide superior returns, relative to our peer group, to our
shareholders.
C$airman o% t$e "om&an'
*ive( C. #urman 8oined Dabur in $>?& after completing his
graduation in #usiness 3dministration from the @!3. In $>%A he as
appointed Managing Director of Dabur and in $>>% he too( over as
Chairman of the Company.
@nder *ive( #urman6s leadership, Dabur has gron and evolved
as a multi2crore business house ith a diverse product portfolio and a
mar(eting netor( that traverses the hole of India and more than ?B
countries across the orld. 3s a strong and positive leader, *ive( C.
#urman has motivated employees of Dabur to :do better than their
best;7a credo that gives Dabur its status as India6s most trusted
nature2based products company.
Leading brands
More than CBB diverse products in the FMCG, 1ealthcare and
3yurveda segments are in the product line of Dabur. +ist of products
of the company include very successful brands li(e *ati(a, 3nmol,
1a8mola, Dabur 3mla Chyaanprash, Dabur 1oney and +al Dant
Man8an ith turnover of Ds.$BB crores each.
!trategic positioning of Dabur 1oney as food product, lead to
mar(et leadership ith over &BE mar(et share in branded honey
mar(etF Dabur Chyaanprash is the largest selling 3yurvedic
medicine ith over A?E mar(et share. Dabur is a leader in herbal
digestives ith >BE mar(et share. 1a8mola tablets are in command
ith G?E mar(et share of digestive tablets category. Dabur +al Tail
tops baby massage oil mar(et ith C?E of total share.
C1D 'Consumer 1ealth Division), dealing ith classical
3yurvedic medicines has more than /?B products sold through
prescription as ell as over the counter. 4roprietary 3yurvedic
medicines developed by Dabur include .ature Care Isabgol,
Madhuvaani and Trifgol.
1oever, some of the subsidiary units of Dabur have proved to be
lo margin businessF li(e Dabur Finance +imited. The international
units are also operating on lo profit margin. The company also
produces several :me H too; products. 3t the same time the company
is very popular in the rural segment.
(uestions
$. Ihat is the ob8ective of DaburJ Is it profit maximisation or groth
maximisationJ Discuss.
/. Do you thin( the groth of Dabur from a small pharmacy to a large
multinational company is an indicator of the advantages of 8oint
stoc( company against proprietorship formJ 0laborate