Acknowledgement

“If the words are symbol of undiluted feelings and token of gratitude then
let the words play the heralding role of expressing my feelings.”

It gives me immense pleasure to present this project report on distribution

channel of DABUR carried out at INMANTEC B School. This project is the
result of time, efforts and knowledge contributed by various member of the
team. It was a the great experience for us as in this we got the opportunity to
learn and experience the FMCG sector.

No work can be carried out without the help and guidance of various persons.
We are happy to take this opportunity to express my gratitude to those who have
been helpful to us in completing this project report. They have been the source
of guide and motivation for the completion of the project.

We would like to thank our faculty guide Prof. U.C.MATHUR without

whom this project would not be possible.

"We are responsible for what we are, and whatever we wish ourselves to
be, we have the power to make ourselves. If what we are now has been the
result of our own past actions, it certainly follows that whatever we wish to
be in future can be produced by our present actions; so we have to know
how to act. "

- Swami Vivekananda

OVERVIEW OF FMCG SECTOR IN INDIA

The Indian FMCG sector is the fourth largest sector in the economy with a total
market size in excess of US$ 13.1 billion. It has a strong MNC presence and is
characterized by a well established distribution network, intense competition
between the organised and unorganized segments and low operational cost.
Availability of key raw materials, cheaper labor costs and presence across the entire
value chain gives India a competitive advantage. The FMCG market is set to treble
from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as
per capita consumption in most product categories like jams, toothpaste, skin care,
hair wash etc in India is low indicating the untapped market potential. Burgeoning
Indian population, particularly the middle class and the rural segments, presents an
opportunity to makers of branded products to convert consumers to branded
products. Growth is also likely to come from consumer 'upgrading' in the matured
product categories. With 200 million people expected to shift to processed and
packaged food by 2010, India needs around US$ 28 billion of investment in the food-
processing industry.

India is one of the largest emerging markets, with a population of over one billion.
India is one of the largest economies in the world in terms of purchasing power and
has a strong middle class base of 300 million. Around 70 per cent of the total
households in India (188 million) reside in the rural areas. The total number of rural
households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10.
This presents the largest potential market in the world. The annual size of the rural
FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing
incomes at both the rural and the urban level, the market potential expected to
expand further.

An average Indian spends around 40 per cent of his income on grocery and 8 per
cent on personal care products. The large share of fast moving consumer goods
(FMCG) in total individual spending along with the large population base is another
factor that makes India one of the largest FMCG markets.

ABOUT DABUR:-
In its 125 years of existence, the Dabur brand has stood for goodness through a
natural lifestyle. An umbrella name for a variety of products, ranging from hair
care to honey, Dabur has consistently ranked among India’s top brands. Its
brands are built on the foundation of trust that a Dabur offering will never cause
one harm.

Brief history:-
The evolution of Dabur is quite interesting and its root takes us back to the 19th
century where it all started in Bengal by a visionary by name Dr. S.K Burman, a
physician by profession. His mission was to provide effective and affordable
cure for ordinary people in far-flung villages. With missionary zeal and fervor,
Dr. Burman undertook the task of preparing natural cures for the killer
diseases of those days, like cholera, malaria and plague. Soon the news of his
medicines travelled, and he came to be known as the trusted 'Daktar' or
Doctor who came up with effective cures. And that is how his venture Dabur
got its name - derived from the Devanagri rendition of Daktar Burman. The
name is formed by joining the first half of Daktar and Burman.

Some milestones:-
 Set up in 1884 to produce and dispense ayurvedic medicines to a wide
mass of people who had no access to proper treatment.

 1896 - With popularity of Dabur products increasing, Dr. S.K. Burman

expands his operations by setting up a plant for mass production.

 Early 1900s – Entered the specialized area of nature based Ayurvedic

Medicines(for which there was no standardized drugs were not
available)

 1919 – Establishment of research laboratories (The need to develop

scientific processes and quality checks for mass production of ayurvedic
medicines led to the establishment of research laboratories)

 1920- Expanded further by setting up manufacturing units at

Narendrapur and Daburgram and distribution spread to neighboring
states like Bihar and north-east.

 1936 – Dabur became a full-fledged company [Dabur India

(Dr.S.K.Burman) Pvt. Ltd.]

 1972 – Shifted operations to Delhi by setting up a manufacturing plant

in Faridabad.
 1979 – Dabur Research Foundation (launch of full-fledged research
operations in the field of health care and also setting up Sahibabad
factory for commercial production.

 1986 – Public Limited Company (Dabur India ltd. came into being after
reverse merger with Vidogum limited)

 1992 – Entered a strategic partnership with Agrolimen of Spain.( To

manufacture and market confectionery items in India)

 1993 – Entered specialized health care area of cancer treatment with its
oncology formulation plant at H.P

 1994 – Raised its first public issue, due to market confidence in the
company shares issued at a premium were oversubscribed 21 times.

 1995 – Joint ventures with Osem of Israel for food and Bongrain of
France for cheese and other dairy products.

 1996 – Three separate divisions were created according to their product

mix – Health Care products division, Family products division and Dabur
ayurvedic specialties limited.

 1997 – Dabur entered the nascent processed food market with the
creation of Food division / project stars, strive to achieve record
successes.

 1998 – Professionals to manage the company to inculcate a spirit of

corporate governance and for the first time, a non-family member
became the CEO of Dabur.

 2000 – Entered the august league of large corporate businesses along

with market leadership and a turnover of 1000 crore.

 2003 – Dabur demerges pharma business from the FMCG business

into a separate company so as to concentrate on both the business.

 2005 – Acquired Balsara and entered the oral care and household
healthcare market in India.

 2005- Company announced a 1:1 bonus share to its shareholders.

 2006 – Dabur crossed the 2 billion US dollar market capitalization and

adopted US GAAP in line with its commitment to follow global best
practices and allow a transparent work culture.
  2007 – Forayed into organised retail, H&B stores ltd. and also Dabur
India merged with Dabur foods.

 2008—acquiresFEM care pharma

 2009—Dabur red toothpaste joins billion rupee brand club

 2009 – Celebrated 125 years of existence.

Dabur At-a-Glance
Dabur India Limited has marked its presence with significant achievements
and today commands a market leadership status. Our story of success is
based on dedication to nature, corporate and process hygiene, dynamic
leadership and commitment to our partners and stakeholders. The results
of our policies and initiatives speak for themselves.

 Leading consumer goods company in India with a turnover of Rs.

2834.11 Crore (FY09)

 3 major strategic business units (SBU) - Consumer Care Division

(CCD), Consumer Health Division (CHD) and International
Business Division (IBD)

 3 Subsidiary Group companies - Dabur International, Fem Care

Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt.
Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care
(Bangladesh), Asian Consumer Care (Pakistan), African
Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE),
Weikfield International (UAE) and Jaquline Inc. (USA).

 17 ultra-modern manufacturing units spread around the globe

 Products marketed in over 60 countries
  Wide and deep market penetration with 50 C&F agents, more than
5000 distributors and over 2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the

entire FMCG spectrum through four distinct business portfolios of
Personal Care, Health Care, Home Care & Foods

 Master brands:

Dabur - Ayurvedic healthcare products

Vatika - Premium hair care

Hajmola - Tasty digestives

Réal - Fruit juices & beverages

Fem - Fairness bleaches & skin care products

 9 Billion-Rupee brands: Dabur Amla, Dabur

Chyawanprash, Vatika, Réal, Dabur Red
Toothpaste, Dabur Lal Dant Manjan, Babool,
Hajmola and Dabur Honey

 Strategic positioning of Honey as food product,

leading to market leadership (over 75%) in
branded honey market

 Dabur Chyawanprash the largest selling

Ayurvedic medicine with over 65% market share.

 Vatika Shampoo has been the fastest selling

shampoo brand in India for three years in a
row

 Hajmola tablets in command with 60% market

share of digestive tablets category. About 2.5
crore Hajmola tablets are consumed in India
every day

 Leader in herbal digestives with 90% market

share
Consumer Health Division (CHD) offers a range of classical Ayurvedic
medicines and Ayurvedic OTC products that deliver the age-old benefits
of Ayurveda in modern ready-to-use formats

 Has more than 300 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

 Division also works for promotion of Ayurveda

through organized community of traditional
practitioners and developing fresh batches of
students

International Business Division (IBD) caters to the health and personal

care needs of customers across different international markets, spanning
the Middle East, North & West Africa, EU and the US with its brands Dabur
& Vatika

 Growing at a CAGR of 33% in the last 6 years

and contributes to about 20% of total sales

 Leveraging the 'Natural' preference among local

consumers to increase share in personal care
categories

 Focus markets:
- Gulf countries
- Egypt
- Nigeria
- Bangladesh
 - Nepal
- US

 High level of localization of manufacturing and

sales & marketing.

CORE VALUES AT DABUR:-

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

“This is our company. We accept personal responsibility,

and accountability to meet business needs.”

“We all are leaders in our area of responsibility, with a deep

commitment to deliver results. We are determined to be the
best at doing what matters most.”

“People are our most important asset. We add value

through result driven training, and we encourage & reward
excellence.”

“We have superior understanding of consumer needs and

develop products to fulfill them better.”

“We work together on the principle of mutual trust &

transparency in a boundary-less organisation. We are
intellectually honest in advocating proposals, including
recognizing risks.”

“Continuous innovation in products & processes is the basis

of our success.”

“We are committed to the achievement of business success

with integrity. We are honest with consumers, with business
partners and with each other.”

PRODUCT LINE:-
Foods--
· Real, Real Active , Homemade· Lemoneez Capsico

Baby Care--

· Dabur Lal Tail, Dabur Baby Olive Oil, Dabur Janma Ghunti

Health Supplements--

· Dabur Chyawanprash, Dabur Glucose D

Digestives--

· Hajmola Yumstick, Hajmola Mast Masala, Anardana, Hajmola, Hajmola

Candy,

· Hajmola Candy Fun, Pudin Hara (Liquid and Pearls), Pudin Hara G, Dabur
Hingoli

Natural Cures--
· Shilajit Gold, Sat Isabgol, Shilajit, Ring Ring, Itch Care, Backaid, Shankha Pushpi
,Dabur Balm,Sarbyna Strong

Personal Care --

Hair Care Oil , Amla Hair Oil, Amla Lite Hair Oil,Vatika Hair Oil, Anmol Sarson
Amla

Hair Care Shampoo--

· Anmol Silky Black Shampoo ,Vatika Henna Conditioning Shampoo, Vatika

AntiDandruff Shampoo , Anmol Natural Shine Shampoo

Oral Care--

· Dabur Red Gel ,Dabur Red Toothpaste,· Babool Toothpaste, Dabur Lal Dant
Manjan, Dabur Binaca Toothbrush

Skin Care--

· Gulabari Vatika, Fairness Face Pack

And many more…………………………………………………………………………………………..

Corporate Governance at dabur:-

Good corporate governance and transparency in actions of the management
is key to a strong bond of trust with the Company’s stakeholders. Dabur
understands the importance of good governance and has constantly avoided an
arbitrary decision-making process.

Our initiatives towards this end include:

 Professionalisation of the board

 Lean and active Board (reduced from 16 to 10 members)

 Less number of promoters on the Board

 More professionals and independent Directors for better management

 Governed through Board committees for Audit, Remuneration,

Shareholder Grievances, Compensation and Nominations

 Meets all Corporate Governance Code requirements of SEBI

Corporate Citizenship at dabur:-
When our Founder Dr. S. K. Burman first established Dabur, he had a vision that
saw beyond the profit motive. In his words, "What is that life worth which
cannot bring comfort to others." This ideal of a humane and equitable society led
to initiatives taken to give back some part of what Dabur has gained from the
community.

 Our major initiatives in the Social sector include:

 Establishment of the Sustainable Development Society, or Sundesh, in

1993 - a non-profit organisation to promote research and welfare
activities in rural areas;

 Promoting health and hygiene amongst the underpriviledged through the

Chunni Lal Medical Trust; and

 Organising the Plant for Life programme for schoolchildren - to create

environmental awareness amongst young minds

Dabur upholds the tradition:-

Today, we at Dabur also value nature's bounty. Without the fruits of nature, the
vision of Dabur would never have been fulfilled. And that is the reason for our
unfailing commitment to ecological conservation and regeneration. We would like
to follow the principles of our ancient texts, which say:

"Dehi me dadami te" - "you give me, and I give you".

Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all
our products are derived. Due to overexploitation of these resources and
unsustainable practices, these plants and herbs are fast reaching the point of
extinction. In view of this critical situation, Dabur has initiated some significant
programmes for ecological regeneration and protection of endangered plant
species.

Plants for Life

We have set up the "Plants for Life" project in the mountainous regions of the
Himalayas. Under the project, a high-tech greenhouse facility has been set up for
developing saplings of rare and endangered medicinal plants. Fully computer-
controlled and monitored, this greenhouse maintains the highly critical
environmental parameters required for their survival. We are also developing
quality saplings of more than 20 herbs, 8 of them endangered, through micro
propagation.

In addition, satellite nurseries spread across mountain villages and contract

cultivation of medicinal herbs helps in maintaining the ecological balance. These
measures have also helped provide local cultivators the scientific knowledge for
harvesting herbs and a steady source of income. So that they are not forced to
exploit the environment to earn a livelihood.

Living a Green Heritage

These are significant steps that can contribute to a better world for coming
generations. To whom we would like to bequeath a world not bereft of nature. But
full of flowering and fruit bearing trees, animals, birds and humans living in good
health and complete harmony.
Business Strategies and ''Vision 2010'' of Dabur:-
Dabur India Ltd. (Dabur), a leading Indian fast moving consumer goods (FMCG)
company andIts product range included Toothpastes and Toothpowder, Hair Oils,
Shampoos, Digestives, Fruit Juices, Nature Care, Medicated Oils, Ayurvedic
products (such as Churnas, Asav Arishtas, Ras Rasayanas, and Chyawanprash), and
Honey.

The company had adopted a combination of the organic and inorganic routes in
fuelling its growth. Organically, the company started serving the southern region
of the country in 2002, which was neglected earlier, to increase its sales. Further,
it enhanced its product portfolio in the various product categories. For instance,
Homemade cooking pastes like ginger, garlic, tomato puree, etc. were added to
the food business. On the inorganic growth front, the company acquired the
Balsara group of companies in 2005. This acquisition gave Dabur new brands in
toothpaste (Promise, Babool, and Meswak), mosquito repellants (Odomos), toilet
cleaners (Sani Fresh), and air freshners (Odonil). The acquired toothpaste business
balanced the oral care products portfolio as Dabur's sales came from the northern
and the eastern parts of the country while Balsara's were from the southern and
the western parts of the country.

Dabur‘s ''Vision 2010'', which it had unveiled way back in 2006, was to
double its turnover by FY 2009-10. The company is clearly targeting growth
at a breakneck pace.
References:---
Marketing Management:Twelfth Edition – Philip Kotler & Kevin Lane Keller
www.dabur.com
www.superbrandsindia.com
www.brandchannel.com
www.4psbusinessandmarketing.com
www.scribd.com