Dabur India Ltd.

Presented
By:
 Birth and Evolution Of Dabur:

•Started by Dr. S.K. Burman as an

Ayurvedic pharmacy in Kolkata in the year
1884.

•His vision ‘What is Life that cannot bring

comforts to others’ was instrumental in
giving direction to the company.

•In the year 1972 Shifted base to Delhi

NCR.(Ghaziabad)

•1986 Public Limited Company

•1994 Public issues

•1998 Professionals to manage the Company

Company Profile:

•Established in 1884 : 125 Years of Trust & Excellence

•Among top 4 FMCG companies in India.

•World’s largest in Ayurveda and natural Healthcare.

• Revenue of Rs. 33.9 billion and profits of Rs. 5 billion

in FY2009-10.

•Strong brand equity.

•3 major strategic business units (SBU) - Consumer

Care Division (CCD), Consumer Health Division (CHD)
and International Business Division (IBD)
•Products marketed in over 60 countries

•3 Subsidiary Group companies:

• Dabur International
• Fem Care Pharma
• newu 

•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).

• Overall, Dabur has successfully transformed itself

from being a family-run business to become a
professionally managed enterprise.
Business Structure:
FMCG Industry in India:

•Indian FMCG industry size estimated at

•around US$ 25 bn.

• Personal care & Food products dominate the

•Sector

• Rural India contributes 33% of the overall FMCG

sector.
Market Share Distribution
Market share of Dabur:
Product Range of Dabur:
Competitors Of Dabur and Its Standing:
Demand Analysis:
•Dabur India Q2 Net Profit Surges 30.7% To Rs 140.34
Crores

•Consumer spending in FMCG, particularly for everyday use

products at popular price points, continues to remain strong.

•The hair care category reported 21.5% demand growth, led by

Vatika shampoo, for which the demand grew by an impressive
45.5% .

•Growing demand for Dabur Chyawanprash, Honey & Dabur

Glucose, reported a strong 23.5%

•The Foods business reported a near 24% growth, while brand

Hajmola ended the quarter with an 11.5% growth in demand.
•Dabur’s Toothpaste demand, led by Babool & Dabur Red
Toothpaste, also reported a near 11% growth during the
quarter.

•The skin care business for Dabur reported a 42.7% growth.

•The recently-acquired Fem business recorded a 24.2% jump

in demand.

•Dabur’s Consumer Health Division too ended the quarter

with a 17.7% growth.

•Dabur’s overseas business continued to grow at a rapid pace

with the division recording a 27.5% growth, led by robust
performance in GCC, Egypt, Bangladesh and Nepal markets.

•Sales in the GCC region reported a 36.8% growth, while

Egypt witnessed a near 35.3% growth during the quarter.
Supply Analysis:

•The supply chain function of Dabur comprises of production

planning, dispatching, warehousing and transportation.

•The company has a wide distribution network, covering over

2.8 million retail outlets with a high penetration in both
urban and rural markets.

•Dabur has a huge global network of suppliers and vendors,

purchasing roughly 7,000 items with an annual procurement
bill of over Rs 500 crore.
Supply Chain of Dabur:
 SWOT ANALYSIS
Strengths:

•Worldwide coverage
•One of the largest FMCG companies in India:
• Consolidated Turnover of Rs.13.3 billion ( USD 300 mn).
•Differentiated products:
• Strong Herbal and Natural profile.
• 125 years of experience in Ayurveda.
•Wide distribution network:
• Covering 1.5 million retail outlets.
• High penetration in urban and rural areas.
•Brand strength:
• Strong brands in diverse categories of health and
personal care.
• Mother brand “Dabur” products.
•R & D – a key strength
WEAKNESSES :
•Seasonal Demand
-Chyawanprash in winter.
•Low Penetration
-Chyawanprash not available in rural areas.
•Limited differentiation
-As in Hair oil category

OPPORTUNITIES:
• Market Development
• Export opportunities.
• Innovation
• Increasing income level of the middle class
• Creating additional consumption pattern
•People inclining towards ayurveda.
THREATS:
•Existing Competition
-Himani, Baidyanath and Zandu for Dabur Chyawanprash
-Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil

• New Entrants

• Threat from substitutes

- Himani Sona Chandi for Chawanprash, brahmi amla

hair oil for Dabur Amla, Harpic and Lizol for Sanifresh.
 Economic Analysis of Dabur:

•Employment Generated: About 3,000 employees

working worldwide.

•Tax revenue: With increasing sales revenue and

profit, the tax revenue has been increasing.

•Contribution to GDP of the country: With

recording growth form one financial year to
another Dabur’s contribution to country’s GDP is
tremendous.
Sensex:
•Current Sensex Value of Dabur: 211( sensex:18560)

•10 times increase in market capitalisation(since 2001).

•Shareholding structure: Public Share = 6%

 Dabur in News :

•Morgan Stanley:In the long term Dabur

has the potential to grow ahead of the
market, given its niche positioning and
well-diversified portfolio.

•Medicinal Plant Project – An initiative by

Dabur Nepal Pvt. Ltd.

•Sustainable Development Society

(SUNDESH) :reach out to the weaker and
more vulnerable sections -- such as women
and children, illiterate and unemployed –
of the society.

•Accenture provides IT infrastructure.

•Dabur's net profit up by 20.5%.

•Fem Care was acquired in 2009 for rs 203

crores.

•Dabur Acquires Turkey`s Hobi Kozmetik

Group For $69 Million.

•Future Plans

•Dabur aims to double sales to Rs 7k cr in

next 4 yrs.

•Dabur plans 15 retail stores this fiscal

year(new u).

•CEO Sunil Duggal: One or two acquisitions

every year.