CERTIFICATION

This is to certify that Ashok Kumar Sahni a student of BBA , JAGANNATH

INTERNATIONAL MANAGEMENT SCHOOL VASANT KUNJ ,GGISPU

enrolled for the batch 2007-2010 , with enrolment no. 0262141707 has done

the project work.

Under the Supervision of

Dr. Durgesh Narayan

(course coordinator)

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 ACKNOWLEDGEMENT
I, Ashok Kumar Sahni would like to gratefully acknowledge all those

who gave me constructive suggestion for the improvement of all the

aspects related to this project. In particular , I would like to thank Dr.

Durgesh Narayan for allowing me to carry on the project work and

assited.I also owe a great deal of thanks to my parents who always

boosted my morale and encourage me during the suggestions period

of this project. I have a great pleasure in thanking them all for their

generous help in this project.

Student Signature

DECLARATION
2
I , Ashok Kumar Sahni here by declared that the project work titled

“Marketing Strategies Of Dabur” as an authentic work carried by me

under the guidance of Dr. Durgesh Narayan for the partial fulfillment

degree of BBA and this has not submitted anywhere else any other

degree or diploma.

Name :- Ashok Kumar Sahni

Sign :-

INTRODUCTION

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Dabur India Limited is one of the leading consumer goods company of
India with interests in healthcare, personal care and foods.

"What is that life worth which cannot bring comfort to others", these
words of Dr. S K Burman have inspired generations of Dabur.

For more than a century Dabur has worked in active collaboration with
nature to provide the best of herbal health and personal care products
to its consumers. Today, Dabur is all set to take this abundant
knowledge of Ayurveda to global frontiers.

Ayurveda is a holistic Indian system of medicine that uses a

constitutional model. It works to provide a flexible guidance to attain a
state of positive health. Its treatment and techniques is also flexible for
people with health challenges.

Ayurveda Authentica
 It is an Ancient Method of Cure.

 It yields the source of healthy living.

 It is done under the knowledge of Veda & Vedic Literatures.

 It regulates the body system through Nature-Care.

 It is a value based systematic approach.

 It has been established through the principle of Dosha, Dhatu &

Mala.
 It distinguishes & is a well-established field of medicine.

 It is always easy to adopt & use.

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Ayurveda is derived from two Sanskrit root words: Ayu, which means
Life, and Veda, which means the Knowledge. Thus Ayurveda refers
to the Science of life.

The ancient rishis or seers of truth, discovered truth by means of

religious practices & disciplines. Through intensive meditation, they
manifested truth in their daily lives. Ayurvedic system of health is
conversance of practical, philosophical & religious experiences of
great sages.

Ayurveda is a fine blend of Science, Religion & Philosophy as well.

We use the word religion to denote philosophical perceptions and
discipline in conduct through which, the doors of perception open to all
aspects of life. Through its scientific approach to human life, Ayurveda
works to harness the intricate abilities of human body and mind. With
its philosophical approach to human life, Ayurveda preaches us to
recognize ourselves as miniscule component of this magnificent
universe.

RATIONALE
Dabur Research Foundation (DRF), incorporated in 1979, is a premier
research organization recognized by Department of Scientific and
Industrial Research, Government of India. Situated at Sahibabad,

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DRF is today a known name for its path-breaking research in the field
of healthcare and personal care.

In 1986 the experimental and clinical studies on Ayurvedics/herbals

were started. In 1988 the product at present well known ito every
Indian household was developed - Hajmola Candy.

Now, Dabur manufactures natural/herbal and ayurvedic products,

health care and personal products, foods, and pharmaceuticals.
Trading of hair oils and related products accounted for 41% of fiscal
2000 gross revenues; chyawanprash, 10%; hair oils, 4% and other,
45%. And its people are its biggest asset.

These aspects about Dabur intrigued us and we chose to study 'THE

MAKING OF THE EMPIRE - DABUR'.

OBJECTIVES
 To study how the seed for the group – Dabur that the Burmans
have established was laid?
 To study how did the group evolve over the generations?
 To study what were the milestones in the evolution?
 To study the group strategies at – Corporate Level,SBU Level

 To study the role played by Dabur in the society – Social

responsiveness.

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 RESEARCH METHODOLOGY
Nature of Study - Exploratory Research has been used to study
the history of Dabur India Limited.

Data - The data has been collected both from the primary and the
secondary sources, but the mainly collected from the secondary data,
which constitute:
www.dabur.com
The Trade Journals, Magazines, Newspapers, and other printed
publications have been studied to collect the information about Dabur,
and study the evolution of Dabur over the years.
Primary source:
A list of questions will be administered for collecting the information
about the present trends as well as the future prospects for Dabur.

LIMITATIONS
Due to time constraint and limited sources the study is limited to the
major historical as well the present business, philosophy, and position
of Dabur in India.

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 CORPORATE HISTORY -
DABUR

Vision – "Dedicated to the Health and Well Being of Every

Household."

Dabur is a company with a set of established business values, which

direct its functioning as well as all its operations. In this, Dabur is
guided by the words of its founder Dr. S K Burman
"What is that life worth that cannot give comfort to others."

The company offers its consumers, products to suit their needs and
give them good value 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 material but also
an inspiration and the company is committed to protect the ecological

balance.

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Knowledge is the key to growth in today's world. Whatever the
industry, it is the knowledge, which provides cutting edge to individual
and organizations. For more than a century nature has been a rich
source of knowledge for Dabur. Nature has not only given them the
ingredients for all their products but has also taught how to create a
harmony within and without the organization. Nature has inspired
Dabur in all its acts.

Ayurveda - the science of life is based on principles of nature. All

Ayurvedic preparations have their ingredients derived from Nature.
Dabur has converted the healing properties of natural ingredients and
the age-old knowledge of Ayurveda into contemporary healthcare
products to alleviate health problems of its consumers.

Dabur is committed to expand the reach of this age-old knowledge of

Ayurveda and Nature through web. Through web, we aim to overcome
the physical boundaries to take Ayurvedic way of life to global
frontiers.

Dabur India Limited understands its responsibility as a corporate

house.

They have not only set their sight on increasing turnover and
profitability of the company but also on propagating Ayurveda - the
Indian system of medicine.

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FUNCTIONAL STRENGTHS

Dabur India Limited has 12 manufacturing plants in India, Nepal and

Egypt.

Sahibabad – Dabur’s biggest plant, it was established in 1970s and

set new standards for the manufacture of ayurvedic medicines. This
plant has the manufacturing facility for Ayurvedic Medicines, Foods,
Bulk Drugs and Pharmaceuticals.

Sahibabad Unit 2 – Recently established for manufacturing and

packing Dabur Amla hair Oil in Pet bottles.

Noida Export Processing Zone – Catering exclusively to overseas

markets this state of the art unit manufactures toiletries like hair oils,
creams, soaps and toothpastes.

Baddi Unit 1 – The most modern plant for manufacturing Ayurvedic

Medicines and Honey, this unit was built following stringent guidelines
for pharmaceutical units.

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 Asavarishtas.

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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’s oldest plants, it produces Ayurvedic

Medicines and Honey.

Daburgram – Another of the old manufacturing facilities, this was the

first plant outside West Bengal. This plant has the facility to
manufacture range of Ayurvedic Medicines.

Kalyani – This bulk drugs unit was bought from Pfizer and upgraded
to manufacture oncology bulk drugs of critical importance.

Katni – Set up in the heart of the Amla producing belt of India, this
unit manufactures Amla pishti, an essential ingredient in Dabur
Chyawanprash.

Birgunj, Nepal – Dabur’s first overseas manufacturing unit, it is one of

most importance 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.

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Egypt – This plant was established to serve Saudi Arabia and the fast
growing African market. It manufactures Hair & Skin Care and Food
products.

As with purchase, distribution too has been one of Dabur’s major

strengths. While Dabur understands the need to make quality
products, it also realises the importance of making the products
available where the consumers exist. Therefore, in efforts that span a
century, Dabur has developed a strong distribution network that
makes Dabur products available to consumers even in the smallest of
villages. Transnational distribution network of more than 50 offices
and C&FA ensures the availability of Dabur products in more than 1.3
million retail outlets. Dabur also has five Strategic Business Units, with
each unit having its own independent distribution network. This
ensures wide reach of the products at right kind of outlets.

As far as the world market goes, Dabur products are available in more
than 50 countries. The company has given exclusive distribution rights
to the distributors for each particular country. And as a special
incentive to the European Market, the company has set up a
warehousing facility in London to help reduce time lag for distributing
its products.

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Quality has been the hallmark of Dabur products for more than a
century now. The quality of Dabur products has helped in developing
a bond of trust between the company and its consumers. From raw
materials to finished products, Dabur was the first herbal products
company in India to be awarded the ISO 9002 certification.

Dabur has developed techniques for standardization of more than 180

herbal ingredients. This ensures the standardization of poly-herbal
formulations as mentioned in Ayurvedic scriptures.

Dabur consumes a vast variety of natural preparations while

manufacturing its products. To ensure that only the best ingredients
find their way into every Dabur product, they are sourced from areas
covering a vast geographical area. In fact, purchase has been one of
the major strengths of Dabur, much more so after Dabur set up the
Central Purchase and Procurement Cell. This cell has category
specialists who works in close coordination with suppliers and ensures
that only the best quality material is procured.

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 MAKING OF EMPIRE - DABUR

IDEA GENERATION

Dabur was established in 1884 as a proprietorship by Dr. Shikasht

Burman. The name of their company was Dr. S.K. Burman (Dabur)
Pvt. Ltd. Mr. Shikasht Burman did his medicine from Royal Bengal
Medical college, Calcutta. He belonged to a middle class family, and
his Aunt had provided him monetary support for his studies. In the
1880s as any other young physician he practiced Allopathy.

During the late nineteenth century, most allopathic medicines were out
of the reach of the vast majority of the Indians, both in terms of the
cost and availability. This prompted Dr. S.K. Burman at the age of
around 30, to provide low priced alternative remedies in the form of
traditional Ayurvedic medicines. Basic health care was provided to the
people through the direct mailing route. Dr. S.K. Burman started it
single-handedly with three products, formulated by him in his own
laboratory.

Starting from a small shop in Calcutta, he began a direct mailing

system to send his 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.

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In 1986 with the growth in the demand for Dabur products, Dr. Burman
felt the need for mass production of some of his medicines. He set up
a small manufacturing plant at Garhia near Calcutta.

In early 1990s, the next generation of Burmans took a conscious

decision to enter the Ayurvedic medicines market, as they believed
that it was only through Ayurveda that the healthcare needs of poor
Indians can be met.

From those humble beginnings, the company has grown into India’s
leading manufacturer of consumer healthcare, personal care and food
products.

How was the company named 'DABUR INDIA LIMITED'?

Dabur India Pvt. Limited was incorporated in 1936. In 1986, Dabur
became a public limited company with the reverse merger with
Vidogum Limited, and was re-christened Dabur India Limited.

OTHER DETAILS

The major product which is still being continued by Dabur today is

PUDIN HARA- a blend of mentha and spearmint oil dissolved in
alcohol – a cheap remedy put together to stimulate the nerve endings,
calm down stomach spasms and relieve digestive disorders. The
others two products were JUDI TAP a liquid formulation to fight

15
malaria, which again has been continued till today, and PLAGUIN to
treat plague, which was discontinued by Dabur when plague was
almost eradicated from India.

The distribution system used by the company was the direct mail
order. Small advertisements were put in the newspapers asking
people to place orders, which were then delivered by VPP. The drugs
slowly became popular through the word of mouth. Plaguin’s
popularity spread tremendously during the plague epidemic.

The company’s first factory came up in Gariha near Calcutta. Slowly in

the 1920s the operations spread from West Bengal to Bihar. It was
then that the company started working on the distribution by
appointing distributors. In the late 1910s Dr. S.K. Burman son Mr.
Chuni Lal Burman joined his father in small organisation.
The company faced a problem during the World War II in the 1940s
when the Japanese had reached almost till Manipur. It wan then that
the company decided to open a factory in Bihar, a state other than
West Bengal. Dabur then set up a factory in Daburgram near
Vaidhnath Gram in Derghar district in Bihar.

Once the scale of operations was increased in Bihar the market for
Dabur’s products was expanded till Uttar Pradesh. It was the World
War II that forced Dabur to venture out of West Bengal to Bihar and
Uttar Pradesh and till today Bihar and U.P. remain major markets for
Dabur besides West Bengal.

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Over the years Dabur also increased its product portfolio. It launched
Dabur Amla hair oil in 1956-a green perfumed hair oil containing amla
or Indian Gooseberry, which strengthened hair and prevented
premature graying. The product left the company’s factory in Gariha,
West Bengal, in 200 ml round glass bottles. In 1960 to boost sales in
Uttar Pradesh, the company began producing the oil in its factory at
Faridabad, a border town in Haryana. To ride the film craze, actress
Waheeda Rahman was featured in the ads. In 1967-68 walls in
shopping areas were plastered with some 8-lakh tin plate Rahman
Ads. The company spent considerable efforts building a usage base in
the rural parts of the North. Eight company vans fitted with
loudspeakers and film projectors and traveled the countryside in West
Bengal, U.P., and Bihar screening Dabur Amla ads.

Another major move in the 50s was the need to adopt computers (way
back in 1956). It inducted ICL Tabulating Machines (ICL TM), mainly
for accounting operations. With the passage of time Dabur shifted
from ICL TM systems to IBM unit record and then to the ORG
minicomputers.

Mr. Puran Chand, Mr. Chuni Lal’s elder son took charge of the
company in the 1960s. The major development under his leadership
was the launch of Chywanprash in 1970, developed by Vaidya
Matadin. Dabur leveraged its strength in Ayurvedic health with
Chywanprash-an Ayurvedic health tonic, an herbal immunomodulator
that not only build immunity against cold and infections but also

17
improves the blood supply to a persons lungs thus proving beneficial
for smokers and asthmatic patients.

In the 70s the chairmanship was passed to Ratan Chand Burman, the
younger brother of Mr. Puran Chand Burman, and second son of Mr.
Chuni Lal. Till 1971, Dabur was just a 5 crore company. Major growth
took place under his leadership. A major product of Dabur, Dabur Lal
Dant Manjan was introduced during the 70s. It is a red tooth powder
for rural Indians. Another important product launch was that of
Hajmola in 78-79, Dr. S.K. Burman Pvt Ltd. Used to sell
Ksudhabardhak batti, a churan that aided digestion. Due to
inconvenience in administering dosages of churan, in powder form,
the company decided to sell it, in the form of tablets in 1975. In 78-79
these tablets were branded Hajmola, which clearly indicated the
therapeutic value offered by the tangy churan.

In the 70s when the naxalite movement strengthened in West Bengal

the company decide to shift its headquarters from Calcutta to Delhi.
The 70s also saw the beginning of experts for a number of Dabur’s
products to the Gulf, mainly catering to the Indians residing there.

Dabur Research Foundation was set up as an independent research

organization, for development and scientific validation of products
through clinical trials. In the 80s R.C. Burman started visualsing Dabur
as a big empire. So he started indicting professionals in the
organization. The first professional inducted was Mr. Ramachandran
as General Manager Sales and Marketing. Till the 80s Dabur and

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Baidyanath were very close competitors. In 1981, Dabur Pvt. Ltd.
Merged with Vidogum and Chemicals Ltd. Which manufactured
gaurgum powder; an industrial binding agent, and the name was
changed to Dabur India Ltd. Under Ramachandran Dabur, started
utilizing TV as advertising medium, and strengthened the distribution
network. These moves provided it a major march ahead of the
competitors.

In 1989, A.A. Burman who holds a doctorate in chemistry, from and

American University, took over as the chairman. He carried on R.C.
Burman’s vision of making Dabur, the first Indian Multinational. The
major impetus came under his leadership, when Dabur started
diversifying its product portfolio. In 1989 Dabur launched Hajmola
candy, and also ventured into Pharmaceuticals. In 1992, Dabur
started its operations in Veterinary herbal medicine business. It also
promoted Dabur Finance for leasing cars to its employees and
delivery vans and scooters to its dealers. In 1993, it set General de
Confetaria Pvt. Ltd, a joint venture with Agrolimen of Spain for its
manufacture of confectionary gums like Boomer and Candy. In 1994,
Dabur focused towards oncology as a niche in the Pharma business.
It launched two major anti cancer drugs Intaxel and Paclitaxel.

In 1995, Dabur tied up with Osem of Israel to set up Excelsia Foods

Pvt. Ltd. Though Dabur’s red tooth powder was a big seller Dabur
challenged the market leader Colgate with an expensive product
Denta Care-a greenish toothpowder differentiated by neem extract,
and packed in non rust plastic bottle in 1995. Another big move was

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the launch of coconut hair oil with herbal ingredients-Dabur Vatika. It
was positioned as a value for money product for natural hair care. It
also clinched a 50:50 joint venture with Bongrain of France to launch
Dabon International for manufacturing special cheese.

In 1996, a product range consisting of 24-skin care and 9 hair care

products, was launched in a phased manner with much fanfare
starting from Delhi. In January 1997, it acquired Binaca from RCI and
a month later it launched Creamwich-cream filled crisps. This was
followed by launch of Hommade pastes, Hommade sauces, Real fruit
juices and Lemoneez. Dabur group launched a new brand on every
Monday between February 3rd and March 10th in 1997.

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The phenomenal progress has seen many milestones, some of which are
mentioned below:

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 Ayurveda
Dabur 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

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India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment

Addressing rural markets where 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

1994 - Leadership in health care

Dabur establishes its leadership in health care as one of only two

22
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 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

23
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 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

24
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.
2007 - 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.
2007 - 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.

25
 INTERNATIONAL
OPERATIONS

The 90’s also saw Dabur strengthening its international presence

going global in 1990. Dabur entered into transfer of technology
arrangement in Dubai for manufacturing of Dabur products. In 1991,
Dabur set up Dabur overseas ltd. In Cayman Island to cater to its
overseas investment needs. Dabur overseas went on to fund Dabur
Egypt ltd. near Cairo.

26
Using the liberal policies of the government Dabur set up officers
overseas.it set up a branch office and a warehousing operation in
London to service European markets.

In 1994, a marketing office was set up in Dubai. In 1994,it set up

Dabur Nepal in Birgang, a subsidiary of Dabur India ltd.

In 1996 Dabur got approval for posing a representative in Kenya.

Currently the company is also selling pharmaceuticals to Peru,
Malaysia, Kenya and CIS.

The 90’s also saw Dabur strengthening its international presence

going global in 1990. Dabur entered into transfer of technology
arrangement in Dubai for manufacturing of Dabur products. In 1991
Dabur set up Dabur overseas ltd. In Cayman Island to cater to its
overseas investment needs. Dabur overseas went on to fund Dabur
Egypt ltd. near Cairo.

In its endeavour to prepare for the changes and achieve its target of
becoming a 5000 crore company by the end of the century Dabur
appointed A F Ferguson and company to recommend structural and
operational changes in 1993. The new game plan was to break up the
company into lean divisions, then brand all generic auyrvedic products
taking both the ethical and OTC route. Give greater attention to
advance packaging and distribution. Expand and diversify in India with
or without strategic alliance and identify more overseas market for its

27
products. in 1993 Dabur for the first time in its history went public
putting nearly 20% of its equity on the block. As a strategy to re-align
itself Dabur appointed McKinsey and company to assist in devising its
strategic organizational and operational guidelines for the next 5 years
in may 1997 McKinsey assisted Dabur in benchmarking its operations
with major national and international corporations.

Dabur India has entered into joint ventures with well established
international firms as well as created subsidiary units that further
highlight its business philosophy of providing the best products to its
customers.

Subsidiaries

Dabur has six subsidiary units, which come under the umbrella of the
Dabur India organization. These are:

Dabur Foods Limited - Dabur Foods Limited, a 100% 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 fruit juices under the brand name Real, Hommade Cooking

28
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% market share. Hommade 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.

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 saplings for 20 medicinal plants. Dabur Nepal has also set
up an Apiculture centre for promoting bee-keeping activity in Nepal
and developing queen bees and bee colonies for exports.

Dabur Egypt Limited - Dabur Egypt is groups’ 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 Plc. - 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

29
manufacturing base near London and is expected to start operation
from year 2001.

Dabur Finance Ltd

Dabur finance ltd, finance arm of Dabur group is category 1 merchant

banker. A profit making organization, Dabur finance is involved in
issue management, portfolio management, leasing and financing.

Joint Ventures

Dabon International Limited - Dabur has also collaborated with

Bongrain of France for the manufacture and marketing of specialty
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 cheese under the brand name LeBon, and a
specialty cheese under the brand name Delicieux.

GEOGRAPHICAL COVERAGE

Dabur products have found appreciation across the globe, in a market

that spans the seven continents and over 50 countries:
• Middle East
• East and West Europe
• Russia and CIS

30
 • Central and South America
• USA and Canada
• South East Asia (Japan, Malaysia, Singapore, Thailand)
• North Africa, Bangladesh & Sri Lanka.

 Dabur Overseas Offices: London, Moscow & Kathmandu.

 Dabur Representatives Overseas: Dubai, Kenya

 Production Base Overseas: United Kingdom (Work in progress),

Egypt, Nepal & UAE (franchisee under technology transfer

agreement).

Activities

Dabur starting its exports way back in the early 1900s, but it gathered
momentum in the seventies with the Middle East market. Presently,
Dabur Amla Hair Oil is not only the largest hair oil brand, it has also
helped in making Dabur a household brand in that region.

Another major market for Dabur is Europe. With increasing

awareness about the natural goodness of herbal products, the
demand for Dabur products has seen a steady increase in the last one
decade. Dabur set up its office and warehouse in UK to service this
burgeoning market. Apart from this, Africa, USA, Russia and the Far
East also offer tremendous potential.

31
Dabur Egypt Limited is a subsidiary of Dabur and was set up to
manufacture and market Dabur products in Egypt and other parts of
Africa. Dabur also has a franchisee for manufacturing its products in
the Middle East.

Dabur Nepal Private Limited is yet another subsidiary that has done
exceedingly well since its inception. Today, the company is one of the
largest exporters of Nepal. Dabur Nepal manufactures an astounding
variety of Dabur products like Fruit Juices, Tooth powders, Digestives,
Hair Oils and Honey. In fact, Dabur Nepal is the only manufacturing
base for Real Fruit Juices. It has also set up a greenhouse for
developing saplings of medicinal plants. The company has set up an
apiculture centre to develop Honeybee Products in Nepal for exports.

THE PEOPLE

Dabur has an illustrious Board of Directors who are committed to take

the company on to newer levels of human endeavor in the service of
mankind.
The Board comprises of:
Chairman Mr. V.C. Burman
Vice-Chairman Dr. Anand Burman

32
Executive Directors
Independent Directors
Secretary
Executive Deputy Managing Director
Chief Executive
Executive Chairman
Mr. P.D. Narang
Mr. Sunil Duggal
Mr. Pradip Burman
Mr. Amit Burman
His Highness Maharaja Gaj Singh
Mr. Uday S. Kotak
Mr. Ajay Bahl
Mr. P N Vijay
Mr. Ashok Jain
Dr. Anand Burman
Mr.Sunil Duggal
Mr.Vivek C. Burman

For a research organization like Dabur Research Foundation, people

are its biggest asset. At DRF, more than 125 scientists are engaged
full time in interdisciplinary R&D of health and personal care products.

The foundation has on its board independent advisors and consultants

for guiding the team in their specific areas. The team of scientists is
culled from various disciplines and includes Ayurvedic doctors,
Chemists and phytochemists, botanists, agronomists, clinical
pharmacologists, microbiologists, food technologists, bio-
technologists, oil technologists, oncologists etc.

The effort of this team of scientists is supplemented by scientists at

many research institutions, universities and hospitals with whom
Dabur has networked for research in the areas of new molecules and
drug delivery system.

33
 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

34
summarize your Company’s performance during the year under
review (2004-2005), it would be ‘Pursuit of Profitable Growth’”.

PREPARATIONS FOR THE

FUTURE

The Burmans have initiated the process of transferring control in

Dabur to the new generation.

The family has hired well-known consultant Mritunjay Athreya, in

1997, to formulate a plan for inducting and grooming four members of
the fifth generation into the business.

35
 According to the plan each of the four young family members –Mohit
Burman(28), Amit Burman(25),and Gaurav Burman(25) will be made
promoters in the group business.
This is the first instance of the domestic corporate family appointing
a consultant to formulate a structured entry and a career path strategy
for the new generation. All these boys are MBAs who have worked in
non-Dabur companies such as Colgate and American Express. They
have been trained differently from their fathers and are ready to show
their true worth.

Anand Burman, son of A C Burman, is the director of the company

and heads the pharmaceutical operations.

Mohit Burman, son of V C Burman, has taken over the finance and
purchase aspects of all group businesses.

Gaurav Burman, again the son of V C Burman, has taken over the
sales and marketing of two divisions, healthcare products and
ayurved.

Amit Burman, son of Mr. G C Burman , is into technical operations and

human resource aspects. Chetan Burman, son of P C Burman, is in
charge of the sales and marketing of two divisions, family products
and ayurved.
All the four had earlier worked in Dabur in the junior capacities.

36
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 Dabur’s 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 Dabur’s website.

DABUR INDIA LTD.

37
Mission: to become the country’s largest home grown FMCG.

The mission statement is evaluated on the following parameters:

Market Yes

Product Yes

Philosophy Yes

Customer Yes

Employee Yes

Self concept Yes

Technology Yes

Growth Yes

OBJECTIVE: To achieve a turnover of Rs. 2000 crore by the

year 2003. Exports to contribute approximately one third of the
turnover.

38
CORE COMPETENCIES

1. Professional management
2. Ability to successfully convert ethical ayurvedic products into
branded products.
3. Distribution network
4. The Dabur research foundation helps to launch products with a
very short response time.

CORPORATE PURPOSE AND ASPIRATIONS

OWNERSHIP: The Burman family holds 80% of the stake in the

company.

SCOPE AND DIVERSITY:The company has recently gone in

for related diversification to manufacture-Confectionaries
Specialty cheese Cosmetics
Foods and bakery specialty.

39
GLOBAL DIMENSION

The products of the company are sold in over fifty countries. It has
offices in Dubai, London and Kenya. The company has manufacturing
sites in Nepal, Dubai and Egypt. The company has global market
participation and its products are sold worldwide.

CURRENT POSITIONING OF DABUR

The company is into fast moving consumer goods and presently the
number of brands of Dabur is close to 500. The total number of FMCG
brands available in the market is around 40,000.

The company has a stronger presence in the north of the country as

compared to other regions.

The sales are growing presently at the rate of 30% since 1993.

TECHNOLOGY

40
The Dabur research foundation utilizes 15% of the profit after tax and
1% of the sales turnover on research. Though this is small by industry
standards, the quality of the company’s products is evident. The
gestation period is so small. Also, the research and development is
involved in all stages from formulation to packaging.

PRODUCTION

The company has 12 manufacturing plants in India, Nepal and Egypt.

Some products are also manufactured in Dubai.

SALES AND MARKETING

The company has a transnational network of 19 offices servicing both

the rural and urban markets in India.
The company has also sales and marketing offices in London and
Dubai. Its products are available in over 50 countries.
The company has over 2500 distributors serviced by 220 salesmen
and more than 200000 retail outlets.

FINANCE
The company has a working capital of 220 crores as compared to the
industry average of 110 crores. The working capital cycle is of 160
days as compared to the industry average of 60 days.
Dabur has a ROCE of 24% as compared to its competitors like HLL
(52%) and Colgate (34%).

41
 DABUR PRODUCTS AND
OFFERINGS

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

42
Dabur's range of health personal care and food products could be
best explained. Today, Dabur trust has traveled beyond the
boundaries of India and are available in more than 50 countries
worldwide. These value for money products have made Dabur a
household name.

BUSINESS DIVISIONS
Health Care Products
Family Products
Ayurvedic Specialist
Pharmaceuticals

Healthcare is one of the biggest and oldest divisions of Dabur with a

wide range of OTC healthcare products. It comprises of:

(1) Ayurvedic Health Tonics

Chyawanprash
The leader in the chyawanprash market in India, Dabur
Chyawanprash is one of the most well known Ayurvedic product in
India and abroad. An effective herbal immunomodulator, Dabur
Chyawanprash has the essential goodness of amla and 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.

43
(2) Digestives
Hajmola Tablets
Hajmola Tablets are the first classical Ayurvedic product to be
branded and positioned as fun-filled product with medicinal properties.
It finds mention in Ayurvedic scriptures as Kshudhavardhak Bati, and
was branded as Hajmola, a name derived from Hajma which means
digestion in Urdu. It is available in regular and tamarind flavour.

Hajmola Candy
To cash in on the brand equity enjoyed by Hajmola, Dabur launched
Hajmola Candy in 1989. Since then, the company has added Mango
and tamarind flavours 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
Asafoetida 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 asafoetida and other herbs.

44
(3) Childcare Products
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 Janma Ghunti

This Ayurvedic preparation helps in strengthening the digestive
system of new borns.

(4) Womencare Products

Efarelle Comfort
A herbal medicine in self gel capsule form to help 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 Products Division of

Dabur has in its portfolio hair care and skin care products, oral care
and select foods like honey.

45
(1) 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 brand.

Dabur Special Hair Oil - It is a light hair oil that combines the natural
hair care properties of lemon and hibiscus.
Vatika - The fastest growing hair oil brand of India, Vatika has single
handedly created an altogether new category of herbal enriched
natural oils. The Vatika range also includes a herbal shampoo which
has made its mark in the very first 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.

(2) Oral Care

Dabur Lal Dant Manjan – It is the second largest tooth powder brand
of India and the largest in coloured tooth power category. This herbal
tooth powder is very popular in rural parts of India.

46
Binaca Toothbrushes – 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.

(3) Dabur Honey

When repositioned in 1993, it totally changed the perception of Indian
consumer. Honey, which was mainly used for its medicinal properties
in India, is today competing for space on breakfast table.

Ayurvedic Specialities is a range of over 350 Ayurvedic Medicines –

both classical Ayurvedic drugs and proprietary Ayurvedic medicines -
developed by Dabur’s own research and development. 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 a self
generated alcohol content. Dabur has a range of over 30 Asav
Arishtas. Some of the well known ones include Dashmularishta,
Drakshasava, Lohasava, Parthadyarishta and Ashokarishta.

47
Chumas – 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. Dabur has a range of more
than 50 Ras Rasayans which are used by Ayurvedic practitioners in
the cure of host of ailments.

Medicated Oils - The oils boiled alongwith certain prescribed durgs

are known as medicated oils. These oils retain the curative properties
of herbs and is used for inunction and massage.

Branded Pharmaceuticals – It includes a range of natural ethical

products like New Livfit, Honitus, Ulgel etc. and a range of contrast
media and gynecological.

Oncology – This wide and formidable range includes brands 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

48
undisputed market leader in this category in India and has plans to
establish itself as a generic oncology player in select global markets.

Bulk Drugs and Chemicals – This range consists primarily of bulks

in the oncology category.

Launched over two years back, the Dabur Foods range include juices
under the brand name Real and cooking pastes under the brand
name Hommade. To give a better focus this division has been carved
out as a subsidiary company of Dabur India Limited. Subsidiaries

Dabur Foods Limited - Dabur Foods Limited, a 100% 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 fruit juices under the brand name Real, Hommade 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% market share. Hommade
cooking paste is the only national brand in this category. Lemoneez is

49
the only product in its category available in unique drop and trickle
pack and uniquely shaped tabletop pack.

DABUR SHAREHOLDING

Description No of No of % of Demat
ShareHolders Shares Share

Indian Promoter 27 611552473 70.7 611535973

Foreign Promoter 4 282000 0.03 276000
Total 31 611834473 70.74 611811973
Promoter

Mutual Funds / 37 26416120 3.05 26416120

UTI
FI/Bank/Insurance 13 66823343 7.73
FII 89 94675262 10.95 94675262
Other 100 95050349 10.99 95050349
Institutions 150 188289812 21.77 188289812
Bodies Corporate 1420 6172779 0.71 6155779
NRIs/OCBs 2799 4436904 0.51 2141904
Others 106415 54228463 6.28 48287950
Non-Institution 110634 64838146 7.5 56585633

Total Non- 110784 253127958 29.26 244875445

Promoter

Grand Total 110815 86496243 100 85668741

1 8

50
 DABUR INDIA LIMITED : 5
YEARS PAST FINANCIALS
(Rs. in Million)
1997- 1998- 1999- 2000-
2001-02
98 99 00 01

Profit and Loss Account

10425. 11664.
Sales 8113.6 9147.7 11631.9
9 7
Other Income 83.5 174.2 341.9 188.7 138.7
Earnings Before Depreciation, 909.7 976.5 1277 1372.9 1204.5
Interest & Taxes (EBDIT)
Profit Before Tax 453.7 516 812.9 851.7 755.1
Profit After Tax 450.4 501 774.3 779.2 644.4
EPS (Rs.) 1.58* 1.76* 2.72* 2.73 2.26
DPS (Rs.) 0.35* 0.5* 1.0* 1.0 0.5

Balance Sheet
Net Fixed Assets 2059.9 2385.1 2508.3 2428.7 2444.2
Investments 431.5 478.3 471.7 727.3 1233.2
Net Current Assets 2417.8 2602.6 3040.1 2353.2 2612.8
Share Capital 285.1 285.1 285.2 285.2 285.6
Reserves & Surplus 1987.5 2330 2915.1 3336.8 3718.1
Net Worth 2192.9 2516.6 3129.9 3548.2 3968.9
Loan Funds 2716.3 2949.3 2890.2 1961.0 2135.6

* Recalculated on face value of Re.1 per share

51
The past financials of Dabur show that its sales have been increasing every
year and the company is also increasing its reserves for future strategic
uses.

DABUR INDIA LIMITED :

RATIO ANALYSIS

(Rs.in Millions)
Particulars Mar 20 Mar 20 Mar 20 Mar 20
08 07 06 05

Operational &
Finanial Ratios
Reported EPS(Rs) 3.66 2.93 3.29 5.17

Adjusted EPS(Rs) 3.67 2.92 3.29 5.17

CEPS(Rs) 3.96 3.18 3.62 5.76

DPS(Rs) 0.00 1.75 2.50 2.50

Book NAV/Share(Rs) 5.95 4.44 7.24 11.60

Tax Rate(%) 13.25 11.31 12.03 10.30

Margin Ratios
Core EBITDA Margin(%) 18.72 17.47 17.45 14.69

EBIT Margin(%) 17.50 16.23 16.06 13.35

Pre Tax Margin(%) 17.24 15.99 15.65 13.01

52
Performance
Ratios
ROA(%) 58.05 59.55 40.25 38.28

ROE(%) 61.58 65.75 45.44 44.55

ROCE(%) 67.93 68.20 46.97 43.78

Asset Turnover(x) 0.26 0.24 0.34 0.30

Sales/Fixed Asset(x) 7.19 7.44 6.89 6.62

Working -0.01 0.02 -0.02 -0.06

Capital/Sales(x)

Efficiency Ratios
Fixed Capital/Sales(x) 22.86 22.95 24.92 25.75

Receivable days 13.91 9.02 10.16 13.14

Inventory Days 30.90 28.02 32.46 34.17

Payable days 78.33 296.84 119.21 107.84

Valuation
Parameters
PER(x) 30.03 32.41 25.12 7.16

PCE(x) 27.72 29.90 22.82 6.42

Price/Book(x) 18.46 21.37 11.42 3.19

Yield(%) 0.00 1.84 3.03 6.76

EV/Net Sales(x) 4.53 4.69 3.52 0.90

EV/Core EBITDA(x) 2382.54 2627.85 1974.37 588.87

EV/EBIT(x) 2548.08 2827.93 2145.28 648.34

EV/CE(x) 1730.87 1928.54 1007.58 283.87

53
 Growth Ratio
Net Sales 19.66 29.66 9.51 13.27
Growth(%)
Core EBITDA 27.61 29.94 28.24 36.98
Growth(%)
EBIT Growth(%) 28.41 31.20 29.94 40.70
PAT Growth(%) 25.67 33.68 27.40 46.26
Adj PAT Growth(%) 25.67 33.68 27.40 46.26
Adj EPS Growth(%) 25.50 -11.18 -36.35 46.17

Financial
Stability Ratios
Total 3.37 5.24 4.96 14.64
Debt/Equity(%)
Current Ratio(x) 1.74 1.42 1.47 1.06
Quick Ratio(x) 1.11 0.86 0.87 0.52
Interest Cover(x) 67.60 65.16 38.88 39.41
Total Debt/Mcap(%) 0.18 0.25 0.43 4.59

The ratio analysis clearly shows that the PAT (Profit after tax) has
declined in the 5 years by 3.66% despite the fact that Profit before
depreciation and interest has declined by 24.8%. Despite the fact that
the employees cost to the company has almost doubled. But this is

54
outperformed by the reduction in the total material cost to sales by
22.41% in the same time period due to the strategic initiatives taken
by the company.

Dabur India, the fourth largest FMCG Company in the country, had
signed an agreement with FreeMarkets Inc (Nasdaq), the leading
provider of global supply management solutions, for using leading
edge technologies to execute online markets for its procurement
needs on 07/01/03.
Dabur, with this tie-up, has joined the league of leading FMCG
Companies in the world who have adopted high-end technologies for
reducing costs, providing greater transparencies and optimizing
procurement efficiencies.

The EPS has increased by 86.78% in the period of 5 years, which

denotes that Dabur is now giving almost double returns to its
shareholders in comparison 1.21 return in 1995-96.

The Debt-Equity ratio has declined by almost 50% to 0.54 crore in the
year ending 2001-02. This denotes the efficient use of the reserves
being created by Dabur out of its annual earnings. This justifies the
fact that it has maintained almost the same Dividend Payout ratio i.e.,
24.4%.

Dabur has enough current assets to meet its current liabilities i.e., it
does not face any financial risk. But the points to be considered are
that its Return on Capital Employed and Return on Net Worth have

55
declined, which should be taken into consideration for future strategy
formulation.

DABUR INDUSTRY ANALYSIS

Comparative Industry Analysis 2001-02

Year Sale Net Equit EPS Net Book Opera ROCE

Ending s Profi y Worth Valu ting
t Share e Per Margi
Capit Shar n
al e
(Rs. (Rs. (Rs. (Rs.) (Rs. (Rs.) % of %
milli milli millio millio Sales
on) on) n) n)
HLL 31-12- 1097 1641 2201. 7.5 30436 13.8 15.6% 52.7%
01 19.0 3.1 2 .9
Marico 31-3-02 6710. 462.3 145.0 31.9 1963. 135.4 10.8% 25.0%
1 3
Britann 31-3-01 1338 705.4 278.5 25.3 2401. 86.2 6.5% 16.9%
ia 4.2 2
SBCH 31-12- 9675. 1266. 453.8 27.9 4266. 94.0 18.9% 25.9%
01 8 3 4
Cadbur 31-12- 6263. 566.8 357.1 15.9 2525. 70.7 17.0% 22.6%
y 01 2 7
RCI 31-12- 5884. 214.4 329.1 6.5 1342. 40.8 7.2% 15.5%
01 0 9
Nestle 31-12- 1921 1731. 964.2 18.0 2652. 27.5 15.3% 45.2%

56
 01 0.0 5 6
Colgat 31-3-02 1160 697.9 1359. 5.1 2476. 18.2 9.2% 27.4%
e 8.9 9 4
Dabur 31-3-02 1163 644.4 285.6 2.3 3968. 13.9 9.5% 15.1%
2.0 9

SOCIAL RESPONSIVENESS

Protection for Nature and Protection from Nature

For well over a century, Dabur has worked hand in hand with nature.
Drawing its strength and inspiration from nature's vast resources,
Dabur has used herbs and minerals found in natural form as the

57
ingredient for its products. As a company, Dabur understands its
responsibility to contribute towards maintaining the ecological balance,
and realizes the need to replenish what it takes from nature.

The direct result of this realization has been 'Project Plant for Life',
under which the company has set up tissue culture laboratories, a
state-of-the-art greenhouse and contract cultivation with complete buy
back facilities. This project not only ensures sustainable source of
medicinal plants, but also improves the standard of living of the
participating villagers. Since time immemorial, Dabur has received lots
from nature, and it takes pride in reciprocating with equal elan.

"What is that life worth which cannot bring comfort to others", these
words of Dr. S K Burman have inspired generations of Dabur. Keeping
these golden words in mind, Sundesh or the Sustainable
Development Society was set up to carry out welfare activities aimed
at improving the quality of life of the rural people in its area of
operation. This society is given complete financial and managerial
support by Dabur India Limited.

Sundesh is engaged in
providing health services
non-formal education, and
training in income generating activities.

58
The society has a dedicated team consisting of a doctor, a community
organizer, a lady social worker, instructors for income generating
activities, traditional birth attendants and village level workers.

Sundesh organizes regular OPDs and health camps in the villages. In

addition to the mobile OPDs, other health services rendered include:
• training of traditional birth attendants
• immunization programs for children
• maintenance of family health records
• ante-natal check ups
• pulse polio programs, and
• health awareness meetings for women on topics such as family
planning, ante-natal care, post-natal care, the importance of
vaccinations, baby care and AIDS prevention.

DABUR STRATEGY
FOR MANAGING

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 CHANGE

Dabur Research Foundation is possibly the only of its kind in the

country carrying out research in diverse fields. Today, the scientists at
DRF are pursuing research in more than 10 disciplines.

Ayurvedic Research:
Standardization of herbs and finished products
Validation of the processes
Formulation development taking lead from Ayurveda

Pharmaceutical Research:
Development of new formulations of existing and new molecules
Parenteral Formulations development
Compatibility and shelf life studies
Validation of processes

Phytopharmaceuticals:
Isolation of existing and new therapeutic ingredients from natural
sources Extraction technologies
Processes development and transfer of technology

Biotechnology:
Tissue culture of medicinal plants especially endangered ones
Cell and callus culture

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Agronomy:
Agro-technology development for medicinal plants
Micro-propagation of medicinal plants
Cultivation of medicinal and fruit plants
Generation of quality planting material through greenhouse
technology

Personal Care Products:

Development of skin and hair care products
Oral care product development
Ayurvedic medicated oil development
Herbal extracts in cosmetics

Analytical:
Protocols and methods development for natural and synthetic
products
Bio-equivalence studies of Pharmaceutical Dosage forms
Reaction monitoring of synthetic chemistry processes
Marker compound testing as a tool for standardization of Botanicals

Synthetic Chemistry:Synthesis of known and new

molecules and intermediates (APIs)
Process development
Technology development and transfer to pilot plant and production
scales

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Oncology Research and Molecular Biology:
Anticancer screening of herbal extracts/compounds, peptides and
synthetic molecules
Anti-angiogenic screening
Tumor xenography
Pharmacokinetic and metabolite studies
Proteonics and Genomics

New Drug & Peptide Research:

Lab scale synthesis of new molecules Scale up and purification
methods
Formulation and stability studies
Novel drugs delivery systems

Food Research:
Fruit juices development
Nutritional products development
Consumer friendly ethnic foods and spices

Clinical Research: Toxicology studies

Animal studies for new and existing products/molecules
Clinical trials of pharmaceuticals, anticancer drugs, new molecules
Reverse Pharmacology

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Clinical trials of Ayurvedics/Herbals
Post Marketing Surveillance

Timeline

1979 - Incorporated as independent research organization

1986 - Starts experimental and clinical studies on Ayurvedics/herbals
1988 - Develops Hajmola Candy – a candy variant of Hajmola tablets
having the taste and digestive properties of tablets in sugar base
1990 - Modern analytical lab equipped with HPLC, HPTLC, GLC etc.
set up
1991 - Sets up oncology screening lab
1993 - Re-launches Chyawanprash as an immunity builder after
clinically proving it
1994 - Develops eco-friendly method for extraction of paclitaxel from
the leaves of Asian Yew Tree
1995 - Develops Vatika Hair Oil that creates a new product category
in hair oil segment
1996 - Develops Ethnic Paste

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1997 - Develops preservative free fruit juices
1998 - Develops New Livfit for hepatitis B & E virus infections
1999 - Develops 2 more plant based anticancer drugs

Role Of Company In Society

The company philosophy is to offer products at reasonable costs to

the society at large. Most of the products offered by the Dabur group
company have a focus on value for money principle which could be
bought by the masses.

The basic idea behind the setting up of the company was to offer an
alternative to the expensive allopathic medicines to the poor people of
the society.

The company takes good care of its employees. The wages offered
are the best in the industry which are accompanied by various value
added benefits.

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Group Learning’s From the Project

Mohd.Javed

The main motivation for choosing this company was that this company
was an Indian company which had stuck to its values and ethics even
in the face of tough competition from various MNC’s. The company is
guided by certain values of its founder Dr. S.K. Burman who started
this company to provide Ayurvedic medicines which were not
expensive and not easily available to common people in India.

Dabur has grown under the leadership of many able leaders and this
leadership is very important for any organization to grow and flourish.

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Corporate history of Dabur gives insight of how company has grown
from a small company to a large organization by taking the right steps
at the right times.

Social responsibility of organization is also a consideration that most

organizations forget but this is not the case with dabur.

Aditi
Project provided insight into how big empire is built up step by step
from humble beginnings and also that each organization must have
certain core values that it must never lose sight of.

Leaders values and vision play a very important role in the growth of
any organization.

The inclination of companies to learn is surmount to its success later

in the future.

Divay arora

One has to be responsive to the changes taking place in the

environment so that you can constantly upgrade accordingly.

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Essential ingredient of success is that one must remain committed
towards work and never compromise on the core values.

Corporate have responsibilities towards the society. Here the

company has tried its best to do the same.

Prateek Batra
Employee welfare is one ingredient for the success of any company
as has been the case with Dabur.
It is the quality of Business leadership that is also very important.

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