INSERT THE TITLE

OF YOUR PRESENTATION HERE

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

.

Presented By:
Amarendra Pratap Singh
Amrita Patnaik
Darshana Raj Mathur
 Vision and Mission

Dabur’s vision is to
satisfy the health and
well-being of all its
customers. Dabur would
achieve its vision by
offering high quality
natural products that will
improve the customer’s
health and personal
care. In doing so, the
mission is maximizing
the value offered to the
shareholder.
Company Profile
• Dabur India Limited is a leading Indian consumer goods company
with interests in health care, Personal care and foods

• Over more than 100 years they have been dedicated to providing
nature-based solutions for a healthy and holistic lifestyle

• Leading consumer goods company in India with a

turnover of Rs.2889.71 Crore (FY10)

• 3 major strategic business units (SBU)

• 3 Subsidiary Group companies Dabur Foods, Dabur Nepal and

Dabur International and 3 step down subsidiaries of Dabur
International - Asian Consumer Care in Bangladesh, African
Consumer Care in Nigeria and Dabur Egypt

• 13 ultra-modern manufacturing units spread around the globe

• Products marketed in over 50 countries

• Wide and deep market penetration with 47 C&F agents, more

than 5000 distributors and over 1.5 million retail outlets all over
India
 Porter’s 5 force Model
Threat of Substitute
Products
The pricing of the Dabur
products is very competitive
without compromising on the
quality hence the relative price
performance of substitutes is
low as compared to Dabur.
Threat of new competitors
Dabur has set very high
standards in developing
products and processes that
meet stringent quality norms.
So all the advantages of first
mover, learning curve, brand
loyalty, patents and economies
of scale exist with Dabur India.
Competitor’s Rivalry
Key players and competitors of
Dabur India currently are
Hindustan Unilever Ltd., Patanjali,
Tata Tea, Colgate Palmolive Ltd.,
etc Since the industry is growing
at a very rapid pace and so is the
number of players. So Dabur India
has to constantly relook at its
strategy in order to increase its
global dominance.
 Porter’s 5 force Model
Bargaining power of Customers
With increased presence of other
players in the market as mentioned
previously, suppliers have got wide
range of choices. So Dabur India has to
formulate strategy in such a manner to
keep abreast with the increasing
competition by improving the quality
and reducing the prices over the period.
Bargaining power of Suppliers
Due to its over 100 years presence Dabur does have a very
strong bond with the suppliers. Also Dabur does follow the
policy of having good relations with all the peoples with which it
deals. This helps in having a good relation with the suppliers.
Also the policy of being accountable to stakeholders be it
customers, without whom it will not be in business,
shareholders, who have an important stake in our business and
the employees, suppliers who have a vested interest in making
it all happen- are their stakeholders.
DABUR TAKES OVER BALSARA

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 About BALSARA
Founder
By Rustomji Balsara

Target Markets
International and Domestic

Early Business
started in Quality Bathroom and
Statistics lightning fixtures
Annual Domestic Sales turnover Rs 2 billion ;
Annual International Sales turnover Rs 250
million
THE TAKEOVER
Anouncement
01 In January 2005, Dabur India announced its acquisition of Balsara

The Deal
02 Rs 143 Cr all cash deal for : Balsara Hygiene Products; Besta; Balsra
Home Products

Steps for Acquisition

03 Hiring Accenture to prepare blueprint

Need for Aquisition

04 Increasing product portfolio, market leader in oral homecare products
 PRE & POST ACQUISITION
BEFORE AQUISITION
In 2003-04, Balsara had
reported sales of Rs 200 crore
(Rs 2 billion), with
losses of over Rs 8 crore
BEFORE AQUISITION
Dabur's original distribution was
along two verticals: Line 1 for
health care and Line 2 for
personal care
AFTER AQUISITION
Balsara Home Products
recorded net profit of Rs1.1 cr in
FY06. Turnover increased
almost 52%, from Rs 28.5 cr to
Rs 43.3 cr
AFTER ACQUISITION
With new
product portfolios coming in, a
third line was created that looks
after home care and all oral care
ANALYSING
VARIOUS
MANAGEMENT
FUNCTIONS
 PLANNING
GOAL SETTING
While actual acquisition happened in 2005, it’s plan has already been
01 drafted 2 years back ; hiring Accenture to prepare the blueprint

HIERARCHY
02 Deliberations at TOP LEVEL ; HR managers to carefully consolidate
employee base. R&D team retained while Sales team resigned

DECISION MAKING
03 To acquire Balsara was strategic decision and to have Sustainable
Competitive advantage. A case of Portfolio Strategy of a ‘?’ Company

04 STRATEGIC INTENT
Besides growing Organically, this Inorganic path will strengthen the
subsidiaries & increase their product offering (Portfolio Strategy) to
consumers by gaining COST Leadership
 ORGANISING
DEPARTMENTALISATION
While departments like Finance, HR, Marketing are clearly defined yet
01 they also practice Product Departmentalisation owing to 3-Lines of
product offerings
AUTHORITY
02 The management mostly follows ‘Chain of Command’; Middle
management showed Line Authority Management style

MANAGING EMPLOYEES
03 Dabur already had 2,300 people on its rolls, while Balsara had 600
With no room for duplication, Dabur didn't retrench anybody, but close
to 300 people quit
04 WORKERS & EMPLOYEES
At 100 workers, the Silvassa plant was overstaffed, about 30 were
shifted to Baddi -- a new factory, with just eight employees
LEADING & CONTROLLING
INITIATING STRUCTURE
The Leadership of the company had given the goal of acquisition in
01 line of which all department heads were asked to be prepared to
absorb necessary functions and discard duplicacy
STYLE
02 With a Vision and Goal already in place, we mostly saw a Directive
Leadership Styles

STANDARDS
03 Capital investments at 3 manufacturing sites were put on hold while
quality and sourcing were upgraded
MARKET SHARE GROWTH
04 With acquisition and increase product offering, while Balsara concentrated on
larger towns with populations of between 100,000 - 500,000, Dabur goes further
into rural India, reaching towns with populations of even 5,000
Thank you