marketing strategies of dabur india ltd.,67

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

generous help in this project.

Student Signature

DECLARATION

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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", thesewords 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/herbalswere 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 studythe history of Dabur India Limited.

Data - The data has been collected both from the primary and thesecondary sources, but the mainly collected from the secondary data,

which constitute:

www.dabur.comThe 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.

LIMITATIONSDue 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 EveryHousehold."

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 theingredients 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 andprofitability 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 Daburs 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 overseasmarkets 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 Daburs 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 Daburs 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 Daburs first overseas manufacturing unit, it is one of

most importance besides Sahibabad and Baddi. This modernmanufacturing 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 Daburs 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, witheach 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 specialincentive 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 theCentral 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 mailingsystem 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 Indias

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 isPUDIN 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

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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. Plaguins

popularity spread tremendously during the plague epidemic.

The companys 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

Daburs products was expanded till Uttar Pradesh. It was the WorldWar 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 companys 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 Lals 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 VaidyaMatadin. 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

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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, theyounger 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 Daburs

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 productsthrough 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, startedutilizing 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.

Burmans 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 FoodsPvt. Ltd. Though Daburs 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 3 rd and March 10 th 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 growto a commanding status in the industry. The Company has gone a long way in popularising andmaking 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 stringentquality norms. As it grows even further, Dabur will continue to mark up on major milestones alongthe 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 medicinesDabur 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 productsmanufacturing initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through AyurvedaDabur introduces Indian consumers to personal care through Ayurveda,

with the launch of Dabur Amla Hair Oil. So popular is the product that itbecomes the largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin packWidening the popularity and usage of traditional Ayurvedic productscontinues. The ancient restorative Chyawanprash is launched inpackaged form, and becomes the first branded Chyawanprash in

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India.

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segmentAddressing rural markets where homemade oral care is morepopular than multinational brands, Dabur introduces Lal DantManjan . With this a conveniently packaged herbal toothpowder ismade 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 traditionalformulations that can provide holistic care in our daily life. AnAyurvedic medicine used as a digestive aid is branded andlaunched as the popular Hajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the mostmodern herbal medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with funThe Ayurvedic digestive formulation is converted into a children'sfun product with the launch of Hajmola Candy. In an innovativemove, 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 careDabur establishes its leadership in health care as one of only two

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companies worldwide to launch the anti-cancer drug Intaxel(Paclitaxel). Dabur Research Foundation develops an eco-friendlyprocess to extract the drug from its plant source

1996 - Enters foods business with the launch of Real FruitJuice

1996 - Real blitzkriegDabur captures the imagination of young Indian consumers with thelaunch of Real Fruit Juices - a new concept in the Indian foodsmarket. The first local brand of 100% pure natural fruit juices madeto international standards, Real becomes the fastest growing andlargest selling brand in the country.

1998 - Burman family hands over management of thecompany to professionals

2000 - The 1,000 crore markDabur establishes its market leadership status by staging aturnover of Rs.1,000 crores. Across a span of over a 100 years,Dabur has grown from a small beginning based on traditional healthcare. To a commanding position amongst an august league of largecorporate businesses.

2001 - Super specialty drugsWith the setting up of Dabur Oncology's sterile cytotoxic facility, theCompany gains entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK haveapproval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and Americanmarkets.2002 - Dabur record sales of Rs 1163.19 crore on a net profit

of Rs 64.4crore2003 - Dabur demerges Pharmaceuticals business

Dabur India approved the demerger of its pharmaceuticals businessfrom the FMCG business into a separate company as part of plansto provider greater focus to both the businesses. With this, Dabur

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India now largely comprises of the FMCG business that includepersonal care products, healthcare products and AyurvedicSpecialities, while the Pharmaceuticals business would includeAllopathic, Oncology formulations and Bulk Drugs. Dabur OncologyPlc, a subsidiary of Dabur India, would also be part of thePharmaceutical business.

Maintaining global standards

As a reflection of its constant efforts at achieving superior qualitystandards, Dabur became the first Ayurvedic products companyto 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 automatedgreenhouses in Nepal. This scientific landmark helps to producesaplings of rare medicinal plants that are under threat of extinctiondue to ecological degradation.

2005 - Dabur aquires Balsara

As part of its inorganic growth strategy, Dabur India acquiresBalsara's Hygiene and Home products businesses, a leadingprovider of Oral Care and Household Care products in the Indianmarket, 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 theshareholders of the company, i.e. one share for every one shareheld. The Board also proposed an increase in the authorized sharecapital 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. Thecompany also adopted US GAAP in line with its commitment to

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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 decidesto raise up to $200 million from the international market throughBonds, FCCBs, GDR, ADR, QIPs or any other securities.The capitalraised will be used to fund Dabur's aggressive growth ambitionsand acquisition plans in India and abroad.

2007 - Celebrating 10 years of Real

Dabur Foods unveiled the new packaging and design for Real atthe completion of 10 years of the brand. The new refined modernlook depicts the natural goodness of the juice from freshly pluckedfruits.

2007 - Foray into organised retail

Dabur India announced its foray into the organised retail businessthrough a wholly-owned subsidiary, H&B Stores Ltd. Dabur willinvest Rs 140 crores by 2010 to establish its presence in the retailmarket in India with a chain of stores on the Health & Beautyformat.

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 operationalefficiencies. The integration will also help Dabur sharpen focus onthe high growth business of foods and beverages, and enter newer product categories in this space.

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INTERNATIONAL

OPERATIONS

The 90s also saw Dabur strengthening its international presence

going global in 1990. Dabur entered into transfer of technologyarrangement 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.

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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 90s 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 thecompany 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

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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 yearsin 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.

Subs id ia r ies

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

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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 onlynational 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

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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.

Jo in t 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 aspecialty 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

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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).

Act iv i t i es

Dabur starting its exports way back in the early 1900s, but it gatheredmomentum 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.

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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 inthe 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. BurmanVice-Chairman Dr. Anand Burman

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Executive Directors Mr. P.D. NarangMr. Sunil DuggalMr. Pradip BurmanMr. Amit Burman

Independent Directors His Highness Maharaja Gaj SinghMr. Uday S. KotakMr. Ajay BahlMr. P N Vijay

Secretary Mr. Ashok Jain

Executive Deputy Managing Director Dr. Anand Burman

Chief Executive Mr.Sunil Duggal

Executive Chairman 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 isculled 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.

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Brand RejuvenationWith 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, andwarmth and energy were displayed through the soft orange color.

Celebrating Life was chosen as a new tag that completelysummarized the whole essence.

The Chairman in his annual report message said, If I were to

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summarize your Companys 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.

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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 appointinga 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 productsand ayurved.

All the four had earlier worked in Dabur in the junior capacities.

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Vision 2010After the successful implementation of the 4-year business plan from

2002 to 2006, Dabur has launched another plan for 2010. The main

objectives are:

Doubling of the sales figure from 2006

The new plan will focus on expansion, acquisition and

innovation. Although Daburs international business has done

well growing by almost 29 per cent to Rs.292 crore in 2006-

07, plans are to increase it by leaps and bounds.

Growth will be achieved through international business,homecare, healthcare and foods.

Southern markets will remain as a focus area to increase its

revenue share to 15 per cent.With smoothly sailing through its previous plans, this vision seems

possible. Time and again, Dabur has made decisions that have led to

its present position. However, if Dabur could be more aggressive in its

approach, it can rise to unprecedented levels. To conclude, this is a

10 year performance table from Daburs website.

DABUR INDIA LTD.

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Mission: to become the countrys 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 theyear 2003. Exports to contribute approximately one third of the

turnover.

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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 thecompany.

SCOPE AND DIVERSITY :The company has recently gone infor related diversification to manufacture-Confectionaries

Specialty cheese Cosmetics

Foods and bakery specialty.

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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 marketparticipation 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 FMCGbrands 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

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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 companys products is evident. The

gestation period is so small. Also, the research and development isinvolved 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.

FINANCEThe 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%).

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DABUR PRODUCTS AND

OFFERINGSA 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

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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 ahousehold name.

BUSINESS DIVISIONSHealth Care Products

Family Products

Ayurvedic SpecialistPharmaceuticals

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 TonicsChyawanprash

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.

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(2) DigestivesHajmola 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 CandyTo 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. Daburs Hingoli has all

the goodness of asafoetida and other herbs.

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(3) Childcare ProductsDabur 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 ProductsEfarelle 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.

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(1) Hair & Skin CareDabur 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 Daburs 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 singlehandedly 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 CareDabur 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.

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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 HoneyWhen 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 Daburs 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.

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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

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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 bulksin 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

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the only product in its category available in unique drop and trickle

pack and uniquely shaped tabletop pack.

DABUR SHAREHOLDING

Description No of ShareHolders

No of Shares

% of Share

Demat

Indian Promoter 27 611552473 70.7 611535973Foreign Promoter 4 282000 0.03 276000

TotalPromoter

31 611834473 70.74 611811973

Mutual Funds /UTI

37 26416120 3.05 26416120

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

Total Non-Promoter 110784 253127958 29.26 244875445

Grand Total 110815 864962431

100 856687418

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DABUR INDIA LIMITED : 5

YEARS PAST FINANCIALS

(Rs. in Million)1997-

98

1998-

99

1999-

00

2000-

012001-02

Profit and Loss Account

Sales 8113.6 9147.710425.

9

11664.

711631.9

Other Income 83.5 174.2 341.9 188.7 138.7Earnings Before Depreciation, 909.7 976.5 1277 1372.9 1204.5Interest & Taxes (EBDIT)Profit Before Tax 453.7 516 812.9 851.7 755.1Profit After Tax 450.4 501 774.3 779.2 644.4EPS (Rs.) 1.58* 1.76* 2.72* 2.73 2.26

DPS (Rs.) 0.35* 0.5* 1.0* 1.0 0.5

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

* Recalculated on face value of Re.1 per share

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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 2008

Mar 2007

Mar 2006

Mar 2005

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

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PerformanceRatios

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

WorkingCapital/Sales(x)

-0.01 0.02 -0.02 -0.06

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

ValuationParameters

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

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Growth Ratio

Net SalesGrowth(%)

19.66 29.66 9.51 13.27

Core EBITDAGrowth(%)

27.61 29.94 28.24 36.98

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

TotalDebt/Equity(%)

3.37 5.24 4.96 14.64

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 39.41Total 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

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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

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declined, which should be taken into consideration for future strategy

formulation.

DABUR INDUSTRY ANALYSIS

Comparative Industry Analysis 2001-02

Year

Ending

Sale

s

Net

Profit

Equit

yShare

Capit

al

EPS Net

Worth

Book

Value Per

Shar

e

Opera

tingMargi

n

ROCE

(Rs.

milli

on)

(Rs.

milli

on)

(Rs.

millio

n)

(Rs.) (Rs.

millio

n)

(Rs.) % of

Sales

%

HLL 31-12-01

109719.0

16413.1

2201.2

7.5 30436.9

13.8 15.6% 52.7%

Marico 31-3-02 6710.

1

462.3 145.0 31.9 1963.

3

135.4 10.8% 25.0%

Britann

ia

31-3-01 1338

4.2

705.4 278.5 25.3 2401.

2

86.2 6.5% 16.9%

SBCH 31-12-

01

9675.

8

1266.

3

453.8 27.9 4266.

4

94.0 18.9% 25.9%

Cadbur

y

31-12-

01

6263.

2

566.8 357.1 15.9 2525.

7

70.7 17.0% 22.6%

RCI 31-12-

01

5884.

0

214.4 329.1 6.5 1342.

9

40.8 7.2% 15.5%

Nestle 31-12- 1921 1731. 964.2 18.0 2652. 27.5 15.3% 45.2%

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01 0.0 5 6Colgat

e

31-3-02 1160

8.9

697.9 1359.

9

5.1 2476.

4

18.2 9.2% 27.4%

Dabur 31-3-02 1163

2.0

644.4 285.6 2.3 3968.

9

13.9 9.5% 15.1%

SOCIAL RESPONSIVENESS

Protection for Nature and Protection from NatureFor 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

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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 servicesnon-formal education, and

training in income generating activities.

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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 ST RATEGY

FOR MANAGING

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CHANGE

Dabur Research Foundation is possibly the only of its kind in thecountry 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 productsOral care product development

Ayurvedic medicated oil development

Herbal extracts in cosmetics

Analytical :

Protocols and methods development for natural and syntheticproducts

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 newmolecules 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 studiesAnimal 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 base1990 - 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 fromthe 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 groupcompany 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 Learnings From the Project

Mohd.Javed

The main motivation for choosing this company was that this companywas an Indian company which had stuck to its values and ethics even

in the face of tough competition from various MNCs. 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 thecompany 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.

marketing strategies of dabur india ltd.,67

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