Entrepreneurship Project

Made by – Mansi Dhamija BBS – V th Semester Roll. No. - 1230

Acknowledgement
In the following project, my major effort has been to present the information about the Dabur India Ltd. and its success as an entrepreneurial venture. I express my sincere thanks to my teacher Miss Astha Kanjlia and my friends for guiding and encouraging me by providing useful suggestions to prepare this project throughout every stage, since the assignment of topic till the completion.

Table of Contents
S. No.
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Topic

Introduction The Story Product Portfolio Strategic Intentions What sets Dabur apart The Flip Side Ten Year Highlights Vision 2010

DABUR – Celebrating 125 years of health and well being

Introduction
Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of about US$600 Million (over Rs 2834 Crore) & Market Capitalization of over US$2.2 Billion (close to Rs 10,000 Crore). Building on a legacy of quality and experience for over 125 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. 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's products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenues stands at over Rs 500 Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burman family, had started operations in 1884 as an Ayurvedic medicines company. From its humble beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-owned consumer goods companies with the largest herbal and natural product portfolio in the world. Overall, Dabur has successfully transformed itself from being a family-run business to become a professionally managed enterprise. What sets Dabur apart from the crowd is its ability to change ahead of others and to always set new standards in corporate governance & innovation. The products of Dabur are marketed in more than 50 countries worldwide. The company has 2 major strategic business units (SBU) - Consumer Care Division (CCD) & Consumer Health Division (CHD), and 3 Subsidiary Group companies Dabur Foods, Dabur Nepal and Dabur International. Dabur International has 3 step down subsidiaries - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.

The story behind one of the most successful entrepreneurial ventures of India
1884 – Birth of Dabur Dabur was born in a small Calcutta Pharmacy in 1884. It was founded by Dr. S.K. Burman, who was trained as physician in Bengal . He was a visionary entrepreneur with a mission to provide effective and affordable cure for ordinary people in far-flung villages. Soon, he started preparing ayurvedic or natural remedies for diseases such as Cholera, Malaria and Plague. Due to his natural and cheap remedies, he became to be known as 'Daktar'. And that is how his venture Dabur got its name - Daktar Burman(Da-Bur).

1896 – Setting up a manufacturing unit With the growing popularity of Dabur products Dr. Burman set up a manufacturing plant for mass production of formulations. Early 1900s – Ayurvedic Medicines In the early 1990s Dabur entered the specialized area of ayurvedic medicines, for which standardized drugs were not available in the market 1919 – Establishment of research laboratories In 1919 research laboratories were set up to develop scientific checks and mass production of traditional Ayurvedic medicines

1920 – Expands Further Dabur expanded further with new manufacturing units in Narendrapur and Daburgram. The distribution of Dabur products spread to Bihar and other North Eastern states. 1936 – Dabur India Pvt Ltd. In 1936 Dabur became a full fledged company 1972 – Shift to Delhi In 1972 Dabur Pvt Ltd shifted its operations to Delhi and set up a new manufacturing plant in Faridabad

1979 – Sahibabad factory/ Dabur Research Foundation Commercial production started in the Sahibabad Factory which is one of the largest and best equipped facilities for Ayurvedic medicines Dabur research foundation was also set up to research in the area of healthcare. 1986 – Public Limited Company Dabur became a Public Ltd. Company in 1986 after a reverse merger with Vidgum Ltd. 1992 – Joint Venture with Agrolimen of Spain Dabur entered into a Joint Venture with Agrolimen of Spain to manufacture and market confectionary items in India and thus began a new chapter of strategic partnerships 1993 – Cancer Treatment The company developed Dab 10, an intermediate for anti-cancer drug namely Taxol. The Company undertook to implement a phytopharma project at Ghaziabad, U.P. This unit would manufacture a specialised anti cancer drug Taxot apart from cancer drug and Terfenadine, a non sedative anti allergic drug. 1994 – Public Issue

In 1994 Dabur raised its first public issue. Shares were issued at high premium due to public confidence in the company and the issue was oversubscribed upto 21 times. 1995 – Joint Ventures Dabur entered into joint ventures with OSEM of Israel for food and Bongrain of France for Cheese and other dairy products 1996 – 3 separate divisions For better management three separate divisions were created on the basis of their product mix – Health Care Products division, Family Products division and Dabur Ayurvedic Specialties limited 1997 – Food Division/ Project STARS Dabur entered full scale in the nascent product food market with the creation of Foods Division project – STARS – Strive To Acheve Record Successes. 1998 – Professionals to manage the company For the first time professionals were inducted to manage the company 2000 – Turnover of Rs. 1000 crore Dabur established its market leadership status with a turnover of Rs. 1000 crore. With Dabur now in the league of big corporate businesses the small entrepreneurial venture of Dr. S.K. Burman had sure enough made its mark. 2003 – Dabur demerges Pharma Business Dabur India approved the demerger of the pharmaceutical business from the FMCG business into a separate company to provide greater focus to both the businesses. The fourth Largest FMCG, Dabur India Ltd tied with Free Markets Inc. for using leading edge technologies to execute online markets for its procurement needs. 2004 Dabur set to acquire Egyptian hair oil brand Touch Dabur India gets Tetra Pak award Dabur India inks pact with Accenture for outsourcing

2005 – Dabur acquires Balsara Completed the acquisition process of Balsara Hygiene Products Ltd & Besta Cosmetics Ltd on April 16, 2005. 2006 – Dabur India crossed $ 2 Billion in market capitalization 2007 – Dabur Foods merged with Dabur India 2008 – Dabur acquired Fem Care Pharma 2009 Dabur Red Toothpaste joins ‘Billion Rupee Brand’ Club Dabur Red Toothpaste became Dabur’s 9th Billion Rupee Brand. It crossed the billion rupee turnover within five years of its launch.

Product Portfolio of Dabur
Mr. Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited in June 2002, holding reins of the organization he joined in 1995. Given below is the Product Portfolio of Dabur (Consumer Care Division 2006):

Vatika, Amla, Sarso (Anmol coconut) Shampoo Vatika heena conditioning, rootstrengthening Anmol-natural shine, silky Baby & Skin Vatika fairness, Gulabari, Vatika Care fairness face pack Janmaghutti, Olive oil, Gripewater, Dabur lal tel Digestive Hajmola range, Hingoli, Pudin hara Health Chyawanprash, chyawanshakti, Supplements Dabur Honey, Glucose Oral Care Babool (rural market), Meswak (unani method), promise, Lal paste, Binaca, Promise Home Care Odomos, Odonil, Odopic, Sanifresh prescriptions as well as over the counter major categories in traditional formulations include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils CHD (Consumer Health Division), dealing with classical Ayurvedic medicines Has more than 250 products sold through

Product Category Hair oil

Products

Proprietary Ayurvedic medicines developed by Dabur include: - Nature Care Isabgol - Madhuvaani - Trifgol Dabur is also the owner of IPL Team Kings XI Punjab Recently, Dabur has launched its New u stores. The mission is to offer the Indian customer the most comprehensive range of global beauty, health and wellness brands and products, combined with an unparallel product expertise, advice and customer care. Sundesh - Sundesh is a non – profit organization engaged in carrying out welfare activities with the aim of improving the quality of life of the people in rural areas. Mr. Pradeep Burman is the founder chairman. Sundesh is majorly involved in Health Care, Education and other socio-economic activities. Given Below is a Segment Wise Competitor list: Category Fruit Juice Fruit Drinks (coolers) Hair oil Coconut base Shampoo Vatika Hair care (overall) Chyawanprash Honey Digestives Dabur’s Main Competitors Share 58% Real Tropicanna and Active 1% Coolers Frooti And Maaza 6.4% Vatika HLL 7.1% 27% 64% 40% 37% HLL and P&G HLL, P&G and Himalaya Himani, Zhandu and Himalaya Himani, Hamdard and local Players Paras and local players

Strategic intentions of Dabur

Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology

Be the preferred company to meet the health and personal grooming needs of our target consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge of ayurveda and herbs with modern science

Provide our consumers with innovative products within easy reach

Build a platform to enable Dabur to become a global ayurvedic leader

Be a professionally managed employer of choice, attracting, developing and retaining quality personnel

Be responsible citizens with a commitment to environmental protection

Provide superior returns, relative to our peer group, to our shareholders

What sets Dabur apart?
Dabur has come a long way and is now ranked 25th in the list of India’s 100 most valuable brands. Some of its other achievements are:  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  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

The vision statement of Dabur reads as ―dedicated to the health and well being of every household‖. The organization which is celebrating its 125th anniversary currently religiously followed this philosophy since inception. This dedication can be attributed to the culture and values that were institutionalized by its visionary leader; Dr. S.K.Burman.He started the enterprise with a mission to provide effective and affordable cure to ordinary people in far-flung villages and this drive, fervor, zeal was inherited by his followers. His commitment and ceaseless efforts resulted in the company growing from a fledgling medicine manufacturer in a small Calcutta house, to a household name that at once evokes trust and reliability. Every business starts as an entrepreneurial venture and continues to remain so if it constantly strives to innovate itself. Dabur is a classic example of one such organization which has continuously forayed upwards on the path of development. An inspiring success story like that of Daburs, requires more than just a vision. It requires the entrepreneur to have the ability to inculcate his vision in all his employees and others working with him. It requires the entrepreneur to be able to instill his strong sense of values which drive his mission, among his fellow workers. Dabur is one of the prime examples of an organization driven by a strong set of values

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

Principles
OWNERSHIP “This is our company. We accept personal responsibility, and accountability to meet business needs.” PASSION FOR WINNING “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 DEVELOPMENT “People are our most important asset. We add value through result driven training, and we encourage & reward excellence.” CONSUMER FOCUS “We have superior understanding of consumer needs and develop products to fulfill them better.” TEAM WORK “We work together on the principle of mutual trust & transparency in a boundaryless organization. We are intellectually honest in advocating proposals, including recognizing risks.” INNOVATION Continuous innovation in products & processes is the basis of our success. INTEGRITY “We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.”

Another quality of a successful entrepreneur is his ability to innovate. What sets Dabur apart from any other organization is its constant effort to innovate. Since, the very beginning, Dabur has been a very creative organization. What started as a small pharmacy in Calcutta is now the fourth largest FMCG in India. Right from its birth in 1884, Dabur has entered into numerous fields from healthcare products to juices and snacks to insurance. Its recent takeover of Fem which is a successful women’s skincare brand is another example of its ongoing innovation. It has also recently launched a new range of skincare products for women Uveda

Dabur has always adapted itself to the changes taking place in the environment. Dr. S.K. Burman opened up manufacturing plants and forayed into other states when he realized that the demand for his medicines was increasing. It is thus, the ability of an entrepreneur to see change and adapt to it that sets him apart from others. Quoting a more recent example, Dabur decided to revamp its brand image. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee and Virender Sehwag for endorsements. New packaging and advertising campaign saw the sales of Chyawanprash grow by 8.5 per cent in 2003-04.

The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was replaced with a new, fresh Banyan tree.

The logo was changed to a tree with a younger look. The leaves suggesting growth, energy and rejuvenation, twin colors reflecting perfect combination of stability and freshness, the trunk represented three people raising their hands in joy, the broad trunk symbolized stability, multiple branches were chosen to convey growth, and warmth and energy were displayed through the soft orange color. ‘Celebrating Life’ was chosen as a new tag that completely summarized the whole essence. The culture at Dabur gives full autonomy to its employees. Various training and development programs like Young Manager Development Program, Prayas, Leading and Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to performance evaluation, helps employees realize their potential. Recently, Dabur has adopted an innovative HR program of offering ESOPs to new engineering and management trainees at the time of joining. Also in 2005, Dabur gave Bonus to its employees after 12 years. This boosted the employee morale further. Dabur was listed as a “Great Place to Work”, in a survey conducted by Grow Talent & Company and Great Place to Work Institute, USA. Dabur was listed as the 10th “Great Place to Work”. The results were published in Business World dated February 2006. Successful entrepreneurs thrive on competition. With increasing competition from companies like HUL, P&G, ITC, Himalaya, etc., Dabur realized the need to revamp its strategies. Following its plans, Dabur made significant changes in the time period 2002-2007 like brand rejuvenation, IT, HR and supply chain initiatives etc. Dabur has also been undertaking a host of energy conservation measures. Successful implementation of various energy conservation projects have resulted in a 13.8% reduction in the Company’s energy bill in the 2008-09 fiscal alone.

What was noteworthy was the fact that this reduction has come despite an 8-9% volume increase in manufacturing, and an average 11.7% increase in cost of key input fuels. The Company is also continuously monitoring its waste in adherence with the pollution control norms. In pursuance of its commitment towards the society, efforts have also been initiated to conserve and maintain the ground water level. The efforts include implementation of rainwater harvesting, which has delivered encouraging results and has put the company on the path to becoming a WaterPositive Corporation. Dabur also initiated a Carbon Foot Print Study at the unit level with an aim to become a carbon positive Company in years to come.

The host of measures – key among them being use of bio-fuels in boilers, generation of biogas and installation of energy efficient equipment – helped lower the cost of production, besides reduce effluent and improve hygiene conditions & productivity. Another interesting fact about Dabur was that till 1998 the management of the company was in the hands of the Burman family. The ability to delegate is also one of the important qualities of an entrepreneur. However, what is more important is deciding the time till which the entrepreneurial venture needs to nurtured with hands of its founder before it can be opened up to outside professional help. Employees are also a very important aspect of a successful entrepreneurship. Renewing the commitment to Health Safety and Environment, Dabur has formulated a policy focusing on People, Technology and Facilities. A dedicated “Safety Management Team” has also been put in place to work towards the prevention of untoward incidents at the corporate and unit level, besides educate & motivate employees on various aspects of Health, Safety and Environment.

The Flip side
Over the last few years Dabur has been following the policy of increasing the number of brands under it. Although, Dabur has been growing at the rate of 17%, there is a school of thought that believes Dabur's choice may not be the best way of ensuring future growth: too many segments will constrain it from scaling up significantly to match increasing competition and that will bring down overall pace of growth. This is also evident from the fact that Dabur is not the category leader in any of the consumer product categories where it has a presence: it is No. 4 in shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps. In addition, indiscriminate use of the brand across price points may dilute the brand equity

Ten Year Highlights
RS Crores FY00 Operating Results: Sales Other Income EBITDA EBITDA Margins (%) Profit Before Tax (PBT) Taxes Tax Rate (%) Profit After Tax (PAT) PAT Margins (%) Financial Position: Fixed Assets (Net) Current Assets, Loans & Advances Current Liabilities & Provisions Net Working Capital Days of Sales Total Assets Share Capital Reserves & Surplus Shareholders Funds Loan Funds Total Capital Employed Return Ratios: ROCE (%) RONW (%) Equity Share Data: Earnings Per Share (Rs) Dividend Per Share (Rs) No of Shares (In Crs) 27.1 10.0 2.9 2.7 1.0 2.9 2.3 0.5 28.6 3.0 1.4 28.6 3.7 2.0 28.6 5.4 2.5 28.6 3.7 1.8 57.3 3.3 1.42 86.3 3.9 1.5 86.4 4.5 1.75 86.5 17.0 24.7 19.5 22.0 12.6 16.6 16.1 20.6 28.6 38.1 31.3 43.5 39.0 46.1 45.7 61.3 47.6 55.3 38.8 48.4 251 412 108 304 113 609 29 292 320 289 609 243 393 158 235 78 558 29 334 362 196 558 371 504 183 322 98 705 29 365 393 304 705 257 522 241 281 80 640 29 388 417 964 640 250 340 294 46 14 433 29 257 286 132 433 295 408 400 8 2 543 29 335 364 164 543 512 471 436 35 7 624 57 440 497 121 624 379 640 452 189 33 670 86 393 480 160 670 465 774 732 42 6 749 86 531 618 99 749 559 951 808 143 18 1081 86.5 731 818 228 1081 982 34 128 13.0 81 4 4.5 77 7.9 1100 19 137 12.5 85 7 8.5 78 7.1 1200 12 144 12.0 82 14 16.6 64 5.4 1285 7 162 12.6 106 14 13.3 85 6.6 1236 9 164 13.3 124 15 12.0 107 8.6 1417 9 217 15.3 176 19 10.8 156 11.0 1757 13 300 17.1 257 30 11.7 214 12.2 2080 26 376 18.1 319 39 12.1 282 13.5 2396 34 443 18.5 384 52 13.4 333 13.9 2834 47 517.3 18.3 445 54 12.1 391 13.8 FY01* FY02** FY03 FY04*** FY05 FY06# FY07^ FY08 FY09

The report highlights the tremendous success of Dabur over the past ten years. Future Initiatives (VISION 2010)

After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has launched another plan for 2010. The main objectives are:  Doubling of the sales figure from 2006  The new plan will focus on expansion, acquisition and innovation. Although Dabur‘s international business has done well — growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.  Growth will be achieved through international business, homecare, healthcare and foods.  Southern markets will remain as a focus area to increase its revenue share to 15 per cent.  Taking their retail (H&B stores) to the next level. 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.

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