DISSERTATION REPORT ON

COMPARATIVES ANALYSIS OF
DABUR

SUBMITTED TO: - SUBMITTED BY:-

Anil Dangwal Deepak Agarwal

(SENIOR LECTURER) R.N.-08

SESSION (2009-2010)

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PREFACE

Since the last few decades due to development and high competitiveness in the
market, the marketing plays a very vital role in the success of business.

In order to correlate theoretical aspect of the real business world, the

students of management are required to go research in organizations of
repute. In fact the training may be compared with the window, and can be
treated as a telescope through which the student can serve the activities of
real business world before crossing the door that lead the student to the
wonder of real business management.

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 ACKNOWLEDGEMENT

I am greatly indebted to S.D. College of Management Studies for giving

me this platform from where I could pursue this company training. I am
obliged to the Director , Dr. G.P. Singh for giving me this opportunity.

After the completion of this project, I experience, feeling of achievement

and satisfaction. Looking back after the completion of our project, I realize
that my search to new innovative ideas would have been very difficult had it
not been the help and guidance extended to me by experienced and
intelligent minds at Dabur india Ltd. I consider myself fortunate enough to
be in the right place with right people.

It would be unfair not to thank my faculty guide Ms. Awad Bihari for their
effort at nurturing a great experience that enabled me to proceed further with
my work in time

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CONTENTS

History of Dabur
RESEARCH MATHODOLOGY

About Dabur
Milestone of Dabur
Positive Economic Impact on Fruit Growers
Real Juices from Dabur Food
Dabur Real Fruit Juice in 9 flavors’
Infrastructure and Distribution Channel
Variety of Juices from Dabur
Contribution of real juices in profitability of Dabur
Hard war of Soft drinks
The growing fruit juice and health drink marker
Big competitor of Dabur real juices
Research Background
Conclusion
Questionnaire
Bibliography

HISTORY OF DABUR
1884 Birth of Dabur
1896 Setting up a manufacturing plant.
Early
1900 Ayurvedic medicines
s
1919 Establishment of research laboratories
1920 Expands further
1936 Dabur India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi
1979 Sahibabad factory / Dabur Research Foundation
1986 Public Limited Company
1992 Joint venture with Agrolimen of Spain

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1993 Cancer treatment
1994 Public issues
1996 3 separate divisions
1997 Foods Division / Project STARS
1998 Professionals to manage the Company
2000 Turnover of Dabur Rs.1,000 cores
2005 Dabur acquires Balsara
2006 Dabur announces Bonus after 12 year
2009 Turnover of Dabur Rs.2,833 cores

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RESEARCH METHODOLOGY

PRIMARY OBJECTIVE
Before starting a project , we should keep in mind the clear objective of the
project because in the absence of the objective one can”t reach the
conclusion or the end result of the project . Research objective answer the
question “Why this study is being conducted”

For every problem there is a research. As all the research is based on some
objective, my research has also some objectives which are as follows:

 To ascertain the growth prospect in Dabur industry by doing in-depth

and detailed analysis of the all Dabur product in India
 To identifying key opportunities for growth in Soft drink sectors in
India

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RESEARCH DESIGN

Research Design is a plan for selecting the sources and types of information
used to answer research questions. A framework for specifying the
relationships among the study variables. Research Design is a blueprint that
outlines each procedure from the hypothesis to the analysis.

Research Design is the conceptual structure within which research is

conducted. It constitutes the blueprint for collection, measurement, &
analysis of the data. The design used for carrying out this research is
EXPLORATORY & EXPERIENCED based.

This type of research is tentative and it is qualitative in nature.

Exploration is particularly useful when researchers lack a clear idea of the
problems.
The approach used in the study was both qualitative as well as quantitative
as only theoretical aspects are not considered but their practicality is also
been observed.

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 ABOUT DABUR

Over its 120 years of existence, the Dabur brand has stood for goodness through a

natural lifestyle. An umbrella name for a variety of products, ranging from hair

care to honey, Dabur has consistently ranked among India’s top brands. Its brands

are built on the foundation of trust that a Dabur offering will never cause one

harm.

The trust levels that this brand enjoys are phenomenally high.

While Ries and Trout may ask “What does Dabur stand for—shampoo or digestive

tablets?” The answer is fairly simple, it stands for India’s fourth largest fast

moving consumer goods company that both consumers and trade respect and trust

unequivocally, and which has an annual turnover of Rs. 12 billion (US$ 262M).

The company has kept an eye on new generations of customers with a range of

products that cater to a modern lifestyle, while managing not to alienate earlier

generations of loyal customers.

Dabur.com is similarly smart. Information is conveyed clearly and in a friendly

manner to various constituents from investors to the media. The site is well-

structured with logical navigation and an amazing amount of information from

stock quotes to news (and the news really is new, not out of date). Still despite all

the content, one doesn’t feel overwhelmed. The site has the tone of an easy

conversationalist, which sets the reader in a receptive frame of mind and shows a

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customer friendly attitude. The sections explaining Ayurveda expands category

knowledge and reinforce Dabur’s leadership stance. Dabur is the world’s largest

manufacturer of Ayurveda medicines and sells in over 50 countries. The section

Know Your Body Profile provides a personalized feel of Ayurveda and involves

the site visitor who may be curious to understand where Ayurveda fits in an

individual context. Similarly, Ask Our Expert engages the reader and forms a

meaningful relationship with the customer. Many brands might be tempted to

charge for this service. There is an amazingly good search facility on the site

where a visitor can search for medicine by name, product category, alphabet,

system or condition. This shows the brand’s customer-focused attitude. If there is

a flaw it is in the Retailer Location application that throws up more blanks than

actually providing information. Dabur is an investor friendly brand as its financial

performance shows. There is an abundance of information for its investors and

prospective information including a daily update on the share price (something

that very few Indian brands do). There’s a great sense of responsibility for

investors’ funds on view. This is a direct extension of Dabur’s philosophy of

taking care of its constituents and it adds to the sense of trust for the brand overall.

About Dabur reflects the modesty of this hugely successful organization; there’s

no hint of bragging, only facts. Information about the family behind the brand is a

bit vague, but the statement of brand intent and the brand values are made strongly

and unequivocally. The Dabur site answers visitors’ questions and builds

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involvement in a simple non-intrusive manner. The only noticeable side effects are

good.

The name Dabur derives its existence from a rather curious pronunciation of

words. In Eastern India, a doctor is often called `dactar.' So, when Dr S. K.

Burman (great grandfather of the present Dabur India Chairman, V. C. Burman)

decided to start a company selling Ayurveda prescription-based drugs in 1884, he

decided to call the company by a name which is easy on the local tongue. He took

the first two letters of `dactar' and combined it with the first three of his own name

to come up with Dabur. This bit of history explains the humble origins of what we

now know as Dabur India Ltd (DIL). Since then the company has come a long

way. It began by shifting its headquarters to the Capital, and then slowly

diversified its product range and reach. From dealing in only Ayurveda-based

prescription drugs, the company is now one of the top five fast moving consumer

goods (FMCG) companies in India, dealing in food and beverages, health

supplements, personal care products and a host of other products. For the last two

decades, it has conveyed the healthy life message through a banyan tree logo on all

its products, packaging and communication. But, earlier this year, DIL realized

that having traversed a widely divergent path from what it began as originally,

there was a need to appear more contemporary to the consumer at large.

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So, after over two decades of using the banyan tree as its logo, DIL decided to

replace it with something "more contemporary and relevant", according to the

CEO, Sunil Duggal. "While the current logo has been with Dabur for years, it has

been evolving and the banyan tree getting progressively modernized; we now felt

the need to contemporize the logo and make it more relevant. The new identity —

the tree in a younger look, in form and color — which goes with a new brand

essence line "celebrate life," has been designed by DMA, part of the Delhi-based

Aalia Group.

Duggal says the company felt that Dabur's brand equity had to become

more cohesive and in sync with its brand architecture and therefore a change was

required. At the same time, it was also important to maintain continuity as the

banyan tree was so closely identifiable with Dabur. He said the burst of leaves and

their colours in the new identity signify growth, rejuvenation and inner strength.

The form and color of the trunk convey growth, youthfulness and stability. Also,

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the Dabur font for the brand name has been changed, maintaining design cues

from the previous font. He said the word Dabur means different things to different

people as it operates at three distinct levels. It is the company's corporate brand

identity, the mother brand for a whole range of products and also percolates down

to individual product names. "We began the process of contemporarisation last

year by simplifying the brand architecture. As per this plan, Dabur signifies the

healthcare initiatives of DIL. But with the word having several different meanings,

this message was not going across clearly to the end consumers. The logo change

exercise is aimed at conveying the healthcare platform of brand Dabur," says

Duggal. But the exercise will not stop with designing a new logo alone. What will

follow is a complete packaging redesign for some products, including new printing

and moulds, and a new advertising campaign by O&M. That the winds of change

are blowing at DIL is clear not only from the logo change exercise but also from

several other parallel initiatives the company has been pursuing. Take, for

example, its recent decision to hive off the healthcare products division as a

separate division, headed by a newly-appointed Executive Director. The new

division — Consumer Healthcare Division (CHD) — is expected to become fully

functional by March next year and will look after the prescription-based Ayurveda

medicines business of DIL. However, to provide it the much-needed growth

impetus, Duggal has decided to include the over-the-counter (OTC) business here,

and is planning to add several new categories in CHD, including pain relief, stress

management and digestives. Already, the cough the cold category has been added

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with the acquisition of the Honitus brand from group company Dabur

Pharmaceuticals Ltd (DPL), isabgol brand Nature cure and memory enhancer

Shankhpushpi. Traditionally, a business with low growth prospects, CHD is worth

Rs.120 crore, and the company hopes that with renewed focus it will double sales

in three years. Not only has DIL veered around to the idea of

demerging/separating businesses to help each grow to its full potential, the

company has also created a war chest of Rs.200 crore for acquisitions of brands in

both domestic and overseas markets to help it enter new products and categories.

Also, the company has identified a foray into international markets as a thrust area

for the coming year. It is eyeing tie-ups in the US and Britain for distribution of

health supplements in Russia and CIS for products such as Chyawanprash. Also, it

is scouting for locations to set up an export-oriented unit (EoU) to service different

packaging and product requirements of overseas markets. The company has set

itself a target of becoming a Rs.2,000 crore FMCG major in the next two years

and appears to be well-poised to achieve this target. But analysts say that the

company is perhaps eyeing too many divergent new product categories. For

example, soaps and skincare products have seen a dismal growth rate over the last

two years and these are among the product categories Dabur wants to enter. Also,

analysts say the restructuring of CHD will take time to show results. In fact, a lot

depends on which brands, acquired or homegrown, DIL launches in the OTC

space over the next few months. In pain relief, for example, it will have well-

established brand names like Zandu, Amrutanjan and Vicks to contend with; in

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soaps, the competitors will include Hindustan Lever Ltd. Again, skin care products

like cold creams and face packs could become me-too brands unless pushed

aggressively. While cautioning that unless each product category is sustained with

required advertising and marketing support they might languish in a highly

competitive market place, analysts are upbeat about the company's future

prospects. Nikhil Vora, Vice-President, Research, SSKI Securities, is optimistic

about Dabur. Says he: "What the company has done is pretty positive and credible;

it continues to innovate and renovate." Earlier, the company was perceived to be

staid but the management has shown a lot of aggression in the past two years and

the company's new brand identity is a culmination of this process, he says. The

company, he says, is pretty clear about the product categories it wants to get into

while establishing leadership in the herbals/Ayurveda products category. Nor will

it get into any intensely competitive mass market category, he says, pointing out

the example of its Dabur Red toothpaste. "However, the company needs to keep

the growth momentum in the categories in which it leads like Chyawanprash,

honey and herbal digestives," cautions Vora. With a 55 per cent market share,

Dabur Foods, the largest packaged, preservative –free fruit juice manufacturer, has

launched a new sub-brand Real Junior, targeted at kids below six years – creating

an age-specific market segmentation. This is claimed to be a first of its kinds

segmentation in the Indian fruit juice market in keeping with Dabur’s marketing

strategy of segmenting the market with customized fruit juices.

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 According to Amit Burman, CEO, Dabar Food Ltd, “Our ability to take the

segment to the next level of maturity bears testimony to our dominant position in

the category. Dabar not only leads with innovation in its product offerings Indian

and international flavours – orange, mango , tomato, pineapple, mixed fruit, guava,

litchi and cranberry, apple”.

Real junior and Real Cranberry Nectar will be available across the four

metors –Delhi and the national capital region, Mumbai, Kolkata and Chennai,

mini- metros lke Bangalor, Hyderabad, Pune Chandigarh, Ahmedabad and smaller

cities like Ludhiana, Amritsar and Jalandhar.

To expand the choice- set of juices for consumers, Dabur Food has

constantly been introducing innovative variants like Activ Orange Carrot—India’s

first fruit –vegetable juice. The company has also launched multiple- size options

to kids like Real Fruit Juice school packs that suit varied consumption needs and

occasions.

Real Fruit Juice is India’s first and only packaged fruit juice brand to get SGS

(Society Generale de Surveillance ) certifications for high safety standards used in

packaging that conform to the stringent HACCP and GMP standards. The brand

has also won the awards fro ‘Heights sales growth achieved by a brand’ in a non-

dairy category, at the 6th National dairy and Beverage Seminar-‘Innovation for

Growth’.

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Dabur Foods is also the only juice company in India and among the top five

companies the world to use the latest spin cap terra pack, cold fill technology and

spill-proof double seal cap for packaging.

Dabur India: Buy

Aarati Krishnan

Mr.Sunil Duggal, CEO... With the acquisition of Balsara brands, a wider product

portfolio should drive revenue growth.

Acquired brands can bring value to the buying company as Dabur India has found

with its recent acquisition of Balsara's FMCG business. With a strong herbal

positioning and an established presence in the household-care segment, Balsara's

product basket appears to fit well with the Dabur portfolio. Anyway with its

finances not stretched in sewing up this deal, Dabur may not even be worried too

much if the acquired brands do not deliver as expected.

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Reasonable Price

Dabur India appears to have paid a reasonable price for acquiring such well-

recognised Balsara brands as Promise, Babool and Meswak (toothpastes), Odomos

(mosquito repellant), Odonil (room freshener), and Odopic and Sanifresh

(cleaners). At Rs.143 crore, the acquisition price is at 70 per cent of the brands'

combined revenues. In the past, acquirers in the FMCG space have paid as much

or double a brand's revenues. Dabur India has also acquired Balsara's

manufacturing facilities in Himachal Pradesh (Baddi), Gujarat (Silvassa) and UP

(Kanpur). The Baddi unit was set up only this year and will leverage on tax and

excise duty concessions over the first ten years. Contributions from this unit may

help improve the profitability of Balsara's busineses as they come under the Dabur

fold.

No Stretch

Usually several acquisitions tend to strain the finances of the acquirer leaving it

with either bloated equity or debt. Not so, in this case. Dabur India can easily meet

the cost for the Balsara purchase from a single year's operating cash flows. Dabur

India's working capital requirements fell into the negative zone last year, after the

company freed up working capital through streamlining of inventory and

procurement systems. Its liquid investments totalled Rs. 130 crore in December

2004, and can fund the acquisition.

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The company plans to use about Rs. 20 crore of debt to fund the Balsara purchase,

but this will barely cause a ripple in its financials. The debt on the balance-sheet

will still add up to just 6 per cent of the shareholder funds, leaving the company

room to borrow more if needed. As this is an all-cash deal, the buyout will have to

impact on Dabur's equity base. Dabur may have to spend significantly on

advertising and promoting its new brands, if they are re-capture their market

shares in the toothpaste segment. However, the structuring of the deal certainly

enhances the comfort factor for shareholders, minimizing the impact on earnings

in case the company is unable to ramp up the acquired brands' revenues or expand

their market share, as planned.

Complementary Products

Of the several regional toothpaste and household-care brands Balsara's appear to

be a particularly good fit for Dabur because of their strong herbal association.

Over the past couple of years, Dabur has been leveraging its strengths in Ayurveda

healthcare to carve out a niche for itself in conventional FMCG categories such as

toothpastes and shampoos. Brands such as Meswak, Babool and Promise

toothpaste, positioned on the herbal plank, could fit well into Dabur's gameplan.

With the Balsara brands' combined market share of 6 per cent in the toothpaste

market, Dabur will emerge the third largest player in the segment. Though Dabur's

Lal Dant Manjan is the leading brand in the toothpowder market, the category

itself has been shrinking. Given the likelihood of consumers upgrading, the

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toothpaste market appears to be the more lucrative one, especially now that it is on

the revival path. However, making further inroads into the toothpaste market is not

likely to be easy, given the intensifying competition in this segment.

The two major plays Hindustan Lever and Colgate, with a sizeable war chest, have

been slugging it out. Pricing pressures have also been evident in this segment,

though not to the same extent as in shampoos or detergents. This is why the

market shares of regional players such as Balsara and Anchor have been

plateauing after an initial burst. Managing the integration and ensuring a smooth

transition for the new brands - in terms of integrating the operations, sales force

and distribution — usually prove a challenge to the acquirer. Any delay in this

process can take the brands off the shelves and make a revival strategy that much

more difficult.

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 Dabur buys Balsara businesses for Rs. 143 chores

NEW DELHI, JAN. 27. Dabber India today announced the acquisition of Balsara

Hygiene and Home Care businesses for Rs.143 cores and said it would look at

more buyouts to capitalise on the consolidation in the sector. The company board,

which met today, approved the acquisition of controlling stake in three Balsara

group companies — Balsara Hygiene Products, Balsara Home Products and Besta

Cosmetics, Dabber India CEO, Sunil Duggal, told a press conference. "Balsara's

acquisition is certainly not the last one and there may be more strategic takeovers

in future,'' he said. With the acquisition of the Rs.200-crore Balsara Group in an all

cash deal, Dabber India will have oral care brands such as Promise, Babool,

Meswak; mosquito repellents such as Odomos and household products such as

Odonil and Odopic under its fold. Dabber India will acquire the entire promoters'

stake in the three companies — 99.4 per cent in Balsara Hygiene, 100 per cent in

Balsara Home Products and 97.9 per cent in Besta Cosmetics.

Out of Rs.143 crores, which the company will pay to the promoters of Balsara for

buying the three firms, Dabber India is mopping up Rs.120 crores through internal

accruals and financing the remaining Rs.23 crores through borrowings. The

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company posted a net profit of Rest. 43.14 crores in the third quarter ended

December 31, 2004, a rise of 44.72 per cent against Rs. 29.81 crores in the same

period in the previous fiscal. Its turnover rose by 9.29 per cent to Rs. 367.13 crores

from Rs. 335.90 crores. Dabber Foods to invest Rs. 20 crore to establish India’s

most modern multi-fruit processing facility Dabber Foods will invest Rs. 20 crore

to set up India’s most modern multi-fruit processing facility at Siliguri, West

Bengal.

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 Short Story Of Dabur Foods

This investment is a major step for Dabber Foods helping the company achieve

backward integration to improve profitability. With enhanced access to the

freshest fruits to make juices, Dabber Foods will strengthen its competitive edge

by being able to market larger quantities of juices made from the best quality raw

Material. Importantly, this investment is expected to have a tremendous impact on

the fruit growing agri community by creating regular market demand for fruits

such as pineapple, litchi, and guava that usually witness more wastage than mango

and apple, due to inadequate investments in processing. Established in heart of the

fruit-growing bowl of India, this multi fruit processing plant is the most

technologically advanced. The new facility is spread over 11 acres and will extract

192 metric tonnes/day. The plant will have high capacity utilisation by processing

pineapple, litchi, guava, mango and grape the year round. Commenting on the

growth strategy of Dabber Foods and the reasons behind this investment, Mr. Amit

Burman, CEO, Dabber Foods Ltd. said, “The vision of Dabber Foods is to become

an integrated food services company with an end-to-end presence in food

procurement, processing, branding and providing related consultancy and services

to partners. To achieve this, we adopted the unconventional strategy of first

choosing to build a strong consumer brand, Real, which is India’s no. 1 pure fruit

juice today. We are now embarking on the second phase of our growth strategy by

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integrating backwards. This will result in higher profitability, enhanced access to

the best fruits and complete control of the production process – helping us further

strengthen our market leadership and offer the best tasting juice. ”Real, which

offers the largest range of eight flavours will benefit from improved sourcing

across mango, pineapple, grape, guava, mixed fruit, tomato and litchi. Real Activ

is available in orange, apple and orange-carrot, India’s first fruit-veg combination.

A vital component of the company’s product strategy has been to offer traditional

flavours that are not usually available in packaged form. For instance, Real is the

only brand to offer pink guava and litchi variants which have become very

popular. “Our new multi-fruit processing facility will bolster this strength and help

us to expand our current range by giving us the flexibility to process other

traditional Indian fruits as well as introduce new multi-fruit and fruit-vegetable

combinations,” added Mr. Burman.

Fruits of Labour

With backward integration assuming epic proportion in both global and

domestic markets, TFPJ explores Dabber Foods latest processing facility in

Siliguri. Dabber Foods have invested Rs.200 million to set up a multi-fruit

processing facility at Siliguri, West Bengal. This investment is a critical step

for Dabber Foods in order to help the company achieve a most crucial process

– backward integration. Backward integration is becoming a must in the

current global and domestic scenario where complete accountability is

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becoming increasingly important especially in case of food items. On the other

hand this move could turn out to be an extremely profitable investment, as the

company would have a greater access to fresh fruits, which in turn would

increase its production volumes. Amit Burman, CEO, Dabber Foods, said

typically, food processing units like the one at Siliguri do not make profits in

the first year so quantifying the benefit would be difficult. Mr. Burman also

said that the commissioning of the Siliguri plant would help Dabber Foods

improve monitoring of raw material quality of its products besides ensuring a

substantial overall cost reduction.” We have been procuring fruits from

different parts of the country till now – pink guavas from Bihar, mangoes from

southern India, pineapples from Thailand and some eastern states of the

country and grapes from Mangalore. But with the Salinger plant expected to

become operational soon, procurement will largely be concentrated in and

around Siliguri. This will mean up to 10 per cent reduction in raw material

sourcing,” Mr. Burman said. Besides, the pulp processing plant will also help

the company in implementing technology it has developed in-house for the

fruit drinks brand Coolers. Thus, Dabber Foods will be able to develop and

market more ethnic fruit drink variants

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 MILESTONES TO SUCCESS

Dabur India Ltd. made its beginnings with a small pharmacy, but has

continued to learn and grow to a commanding status in the industry. The Company

has gone a long way in popularising and making 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 stringent quality norms.

As it grows even further, Dabur will continue to mark up on major milestones

along the 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 medicines Dabur 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 products

manufacturing initiated

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

 1949 - Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional Ayurvedic products

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 continues. The ancient restorative Chyawanprash is launched in

packaged form, and becomes the first branded Chyawanprash in India.

 1957 - Computerisation of operations initiated

 1949 - Launched Dabur Chyawanprash in tin pack Widening the

popularity and usage of traditional Ayurvedic products continues. The

ancient restorative Chyawanprash is launched in.

 packaged form, and becomes the first branded Chyawanprash in India.

 1970 - Entered Oral Care & Digestives segment Addressing rural

markets where homemade oral care is more popular than multinational

brands, Dabur introduces Lal Dant Manjan. With this a conveniently

packaged herbal toothpowder is made 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 traditional

formulations that can provide holistic care in our daily life. An

Ayurvedic medicine used as a digestive aid is branded and launched as

the popular Hajmola tablet.

 1979 - Dabur Research Foundation set up. Dabur continues to make

innovative products based on traditional formulations that can provide

holistic care in our daily life. An Ayurvedic medicine used as a

digestive aid is branded and launched as the popular Hajmola tablet.

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 1979 - Dabur Research Foundation set up

 1979 - Commercial production starts at Sahibabad, the most modern

herbal medicines plant at that time.

 1984 - Dabur completes 100 years

 1988 - Launches pharmaceutical medicines

 1989 - Care with fun the Ayurvedic digestive formulation is converted

into a children's fun product with the launch of Hajmola Candy. In an

innovative move, 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 care Dabur establishes its leadership

in health care as one of only two companies worldwide to launch the

anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation

develops an eco-friendly process to extract the drug from its plant

source worldwide to launch the anti-cancer drug Intaxel (Paclitaxel).

Dabur Research Foundation develops an eco-friendly process to extract

the drug from its plant source.

 1996 - Enters foods business with the launch of Real Fruit Juice

 1996 - Real blitzkrieg Dabur captures the imagination of young Indian

consumers with the launch of Real Fruit Juices - a new concept in the

Indian foods market. The first local brand of 100% pure natural fruit

27
 juices made to international standards, Real becomes the fastest growing

and largest selling brand in the country.

 1998 - Burman family hands over management of the company to

professionals

 2000 - The 1,000 crore mark Dabur establishes its market leadership

status by staging a turnover of Rs.1,000 crores. Across a span of over a

100 years, Dabur has grown from a small beginning based on traditional

health care. To a commanding position amongst an august league of

large corporate businesses.

 2001 - Super specialty drugs With the setting up of Dabur Oncology's

sterile cytotoxic facility, the Company gains entry into the highly

specialised area of cancer therapy. The state-of-the-art plant and

laboratory in the UK have approval from the MCA of UK. They follow

FDA guidelines for production of drugs specifically for European and

American markets.

 2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4

crore

 2003 - Dabur demerges Pharmaceuticals business

 Maintaining global standards

As a reflection of its constant efforts at achieving superior quality standards,

Dabur became the first Ayurvedic products company to get ISO 9002 certification.

28
Science for nature

Reinforcing its commitment to nature and its conservation, Dabur Nepal, a

subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This

scientific landmark helps to produce saplings of rare medicinal plants that are

under threat of extinction due to ecological degradation. 

2005 - Dabur aquires Balsara

2006 - Dabur announces bonus after 12 years

2006 - Dabur crosses $2 bin market cap, adopts US GAAP.

29
 Positive Economic Impact on Fruit Growers

The entire Dabur group is especially proud of this facility because of the

tremendous positive economic impact on the fruit growing agri community that is

dominated by small and medium sized growers.

India is the largest producer of fruits in the world at 46 million tonnes but the

domestic fruit industry is fraught with the massive problems of wastage [more

than 30%]. At 2 per cent, the level of fruit processing compares extremely very

poorly to other countries including Israel at 50 per cent, the US at 70 per cent and

Malaysia at 83 per cent. The Siliguri plant will boost regular market demand for

fruits such as pineapple, litchi, and guava that usually witness more wastage than

mango and apple, due to inadequate investments in processing. The company is

geared to process 150 tonnes of fruit per day, thereby sustaining demand and

triggering direct and indirect employment in the region. Using cutting edge

technology to ensure best tasting juice reaches consumers Real Fruit Juice is a

100% preservative free fruit juice offering consumers the great taste and

wholesome nutrition of freshly squeezed juice in a hygienic and attractive pack.

To deliver on this promise, the company has invested heavily in best in class

technology at the new processing facility in Siliguri, which is also in close

proximity to Dabur Foods’ existing manufacturing plant in Nepal. The processed

fruit will be transferred from Siliguri to the company’s state-of-the-art Nepal plant

which is spread over 1,00,000 sq ft and has the capacity to produce around 50

30
million litres of juice annually. The plant meets the stringent requirements of the

Codex Alimentarius Commission Guidelines, the Recommended International

Code of Practices and the General Principles of Food Hygiene. Furthermore,

Dabur Foods is the only juice company in India and among the top 5 companies in

the world to use the latest spin cap tetra pack, cold fill technology and spill-proof

double seal cap for packaging Real. All these have resulted in Real being India’s

first and only packaged Fruit Juice brand to get SGS (Societe Generale de

Surveillance) certifications for high safety standards used in packaging that

conform to the stringent HACCP and GMP standards.

31
 Choice of Siliguri, West Bengal

Dabur Foods chose Siliguri as the location for this major investment as the region

is a major fruit-producing and trading area for pineapple, banana, litchi, mango,

guava etc. It has a well-established network of transportation – vital for a food

product and abundant availability of skilled labour and power at competitive costs.

“I compliment the government of West Bengal which has shown the vision to

identify food processing as a major growth area and created a very conducive

environment to attract investment to the state,”

32
 Real juices from Dabur Foods

Dabur Foods introduced for the first time in the Indian market Cranberry

juice - Real Cranberry Nectar. An innovative product from Dabur Foods'

portfolio, Real Cranberry Nectar is exotic fruit juice nectar, available in 1-

litre packs. According to sources, Real Cranberry offers the exotic flavour

and nutritive value of cranberries, rich in vitamins, minerals and

antioxidants, which make it a healthy beverage. Dabur Foods' flagship

brand, Real offers the largest range of fruit juices, which are an assortment

of traditional Indian and international flavours - orange, mango, tomato,

pineapple, mixed fruit, grape, guava, litchi and cranberry. Real Fruit Juice is

a packaged, 100 per cent preservative-free fruit juice brand offering

consumers the great taste and wholesome nutrition of freshly squeezed juice

in a hygienic and attractive pack. Dabur Foods is the only juice company in

India and among the top 5 companies in the world to use the latest spin cap

tetra pack, cold fill technology and spill-proof double seal cap for packaging.

Real Fruit Juice is India's first and only packaged Fruit Juice brand to get

SGS (Societe Generale de Surveillance) certifications for high safety

standards used in packaging that conform to the stringent HACCP and GMP

33
standards. The brand has also won the award for 'Highest sales growth

achieved by a brand' in the non-dairy category. Dabur Foods also launched

preservative-free fruit juice a sub-brand Real Junior in 2004, targeted at kids

below six years - creating an age-specific market segmentation. This is

claimed to be a first of its kind segmentation in the Indian fruit juice market

in keeping with Dabur's marketing strategy of segmenting the market with

customised fruit juices. Real Junior has two flavours - mango and apple,

enriched with calcium, in 125 ml packs for children below six years. The

vibrant packs with animated fruit characters are intended to appeal to

children by highlighting the taste and nutrition of Real Junior. Dabur Foods

has a portfolio of nine variants under the Real brand, which offers the largest

range of fruit juices - an assortment of traditional Indian and international

flavours - orange, mango, tomato, pineapple, mixed fruit, grape, guava, litchi

and cranberry. To expand the choice-set of juices for consumers, Dabur

Foods has constantly been introducing innovative variants like Real Activ

Orange Carrot - India's first fruit-vegetable juice. The company has also

launched multiple-size options to kids like Real Fruit Juice School packs that

suit varied consumption needs and occasions. Dabur Foods had launched

"India's first" packaged, fruit-plus-vegetable juice, Real Activ Orange

Carrot, a blend of juicy oranges and sweet carrots. A nutritious powerhouse

34
to boost the health. This powerful combo brings together the taste and

nutrition of orange, with the beta-carotene rich carrot juice that is recognised

by health experts as the 'wonder juice'. Packed with high amount of

antioxidants Vitamins A, C and E, Real Activ Orange Carrot juice provides

instant rejuvenation to body and also strengthens the immunity levels. Real

Activ Orange Carrot juice is a delicious and convenient way to include more

vitamins and minerals in your diet. Carrot juice, also known as the 'miracle

juice,' is beneficial for eyes, skin and the digestive system. Orange juice

provides energy, relieves nausea and also helps in improving resistance of

the body. Real Activ is targeted at health conscious young executives for

whom fitness is a way of life and is available in orange and apple flavours.

Dabur's Real Fruit Juice In 9 Flavours

Dabur's flagship brand Real fruit juice is a market leader in the packaged

fruit juice category. Real was launched in 1996 and the brand has carved out

a niche for itself by claiming to be the only fruit juice in packaged form that

is 100 % preservative free. Real with a market share of 55 % offers to its

consumers the largest range of 9 juices that comprise orange, mango,

pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real

35
Junior, available in 125 ml packs, targets children below six years. It has two

favourite flavours of mango and apple enriched with calcium. Real Activ, a

100 % fruit juice with no added sugar, gives the goodness of fruits without

adding extra calories. Today, it is the preferred juice drink for the health and

fitness conscious young adults. Real Activ is available in orange, apple, and

orange-carrot variants. Real Activ orange carrot juice, India's first packaged

fruit + vegetable juice, is a combination of juicy oranges and sweet carrots.

Coolers, a fruit-based beverage, offers traditional 'cooling' recipes in a

ready-to-drink format. It is available in three variants - Aam panna,

pomegranate (anar) and watermelon Real juices are offered in hygienic

double seal spill proof caps in Tetrapak packaging. Once packed, the 6-layer

Tetrapak carton helps retain the freshness of the juice for a longer period of

time, thus maintaining the taste and nutrition of the juice. The fruits that go

into the juices are sourced from the best sources across the world, the

company claims. Dabur Food produces around 50 million litres of juice

annually through its state-of-the-art facility at Birganj, Nepal. In August

2004, the company commissioned a multi fruit processing facility in Siliguri,

in West Bengal, set up by Pasadensa Foods, a wholly owned subsidiary of

Dabur Foods Ltd. Spread over 11 acres and geared to process 150 tonnes of

fruit per day, it has the capacity to produce 192 tonnes of pulp/concentrate.

36
The plant procures fruits worth Rs. 6 crore from West Bengal, North-East,

Bihar, Uttar Pradesh, Maharashtra and Andhra Pradesh. It has the highest

capacity utilization by processing pineapple, litchi, guava, mango and grape

round the year.

37
 Infrastructure and DistributionChannels

Fruit Juices are available only in Tetra Packages since 1995. Because of its
success in fruit juice drinks Tetra pack packages were obvious choices by the juice
marketing companies. A bottling plant need large catchments area to become
viable and retailers find the cost of dealing in bottles to high. At the same time
outlets need to be geographically concentrated for optimal management of the
logistics of returnable bottles. Factors such as these, work in favour of paper
laminate packaging. Fruits juices are distributed through conventional retail
channels and network. Public sector institutional buying is also of great
significance. Two other channels of some importance are sales through canteen
stores and outlets at Railway stations.
By putting-up the refrigeration facilities by individual companies are bound
to stimulate growth in this market, but this will increase the cost of doing business.
This report presents a broad perspective of the Indian market for processed
foods in selected sectors. They are snack foods, fruit juices, frozen foods, dairy
products, and alcoholic beverages. Each of these products are covered on the
following pints: Domestic Industry-production and Demand; infrastructure and
distribution; major players; import regulation; custom duties; opportunities for
Canadian companies, and strategy for Canadian companies.
Commissaries, leading importers of value-added food products in Indian,
Important multination food companies operating in India and leading Indian
manufacturers of food products in annexes.
Utility of this report, thus, lies in its ability go give directions to anyone
interested in the Indian food market. The report also covers an overview of the
Indian food market on the import of processed foods into India.
We are conscious that some market estimates can be improved upon and an
additional background information could be provided. In spited of these

38
limitations, we believe this report will be an excellent reference point for those
who are interested in this rapidly growing market of more than a billion
population.

39
 Variety Of Juices From Dabur

Real Nature Fresh

Real was launched in 1996 by Dabur India and promises the consumers the real

taste of natural fruits . The brand carved out a niche for itself by being the only

fruit juice in packaged form that has no preservatives.

Real offers the largest assortment of traditional and exotic flavours of fruit

juices. comprising of few variants- Real nature Fresh, Real Active, Real

Burrest, Real Lemoneez, Capsico pepper Sauce.

Real Active

Real Active is a range of 100% pure and natural juices, containing the goodness of

whole fruits and vegetables. Free from additives, preservatives without added sugar,

Real Active promotes a healthier and more energetic lifestyle. The Real Active fruit

juice range comprises of - Orange and Apple variants, and the fruit and veggie

range - Orange Carrot, Mixed Fruit Beetroot Carrot and Mixed Fruit

Cucumber Spinach. This range provides a unique combination of great tasting

fruits and nutritious vegetables.

Coolers

Beat the sizzling summer heat with our refreshingly cool fruit drinks, Coolers.
Coolers are available in 6 variants - Aam Panna, Watermelon, Pomegranate,
Jamoon, Muskmelon and Lemon Barley. Besides being a cooling drink, packed with

40
high content of water, vital minerals and vitamins, 'Coolers' are also thirst quenchers
and help fight heat exhaustion.
During summers, when one sweats, there is loss of sodium from the body. Coolers
help to replenish the sodium content in the body and maintain the electrolyte
balance. The summer fruits in Coolers are a delicious and natural way to help you
cool your body from within.

Real Junior

Enjoy the taste of Real fruits enriched with the power of Calcium. Having

enough calcium childhood helps develop healthy teeth and bones, and helps

kids grow up to be healthy adults. With two all- time favourites flavours of

Mango and Apples, enriched with Calcium, Real junior is just what the kids

between 2-6 years need.

Real Active is a range of 100% pure and natural juices, containing the goodness of

whole fruits and vegetables. Free from additives, preservatives without added sugar,

Real Activ promotes a healthier and more energetic lifestyle. The Real Activ fruit

juice range comprises of - Orange and Apple variants, and the fruit and veggie

range - Orange Carrot, Mixed Fuit Beetroot Carrot and Mixed Fruit

Cucumber Spinach. This range provides a unique combination of great tasting

fruits and nutritious vegetables.

Real Mango Twist –Nutrition Facts per 100 ml

41
Enjoy the refreshing taste of Mango with a healthy twist of Orange or Papaya.

Combining the best of both worlds, Mango Twist is fun fruit nectar that everyone in

the family will enjoy. Real Mango Twist is available in two fun variants - Mango-

Orange and Mango-Papaya. The taste of mango with the added benefits of another

fruit.

42
 Contribution Of Real Juices in Profitability Of Dabur

This investment is a major step for Dabur Foods helping the company achieve

backward integration to improve profitability. With enhanced access to the

freshest fruits to make juices, Dabur Foods will strengthen its competitive edge by

being able to market larger quantities of juices made from the best quality raw

Material. Importantly, this investment is expected to have a tremendous impact on

the fruit growing agri community by creating regular market demand for fruits

such as pineapple, litchi, and guava that usually witness more wastage than mango

and apple, due to inadequate investments in processing. Established in heart of the

fruit-growing bowl of India, this multi fruit processing plant is the most

technologically advanced. The new facility is spread over 11 acres and will extract

192 metric tonnes/day. The plant will have high capacity utilisation by processing

pineapple, litchi, guava, mango and grape the year round. Commenting on the

growth strategy of Dabur Foods and the reasons behind this investment, Mr. Amit

Burman, CEO, Dabur Foods Ltd. said, “The vision of Dabur Foods is to become

an integrated food services company with an end-to-end presence in food

procurement, processing, branding and providing related consultancy and services

to partners. To achieve this, we adopted the unconventional strategy of first

choosing to build a strong consumer brand, Real, which is India’s no. 1 pure fruit

juice today. We are now embarking on the second phase of our growth strategy by

integrating backwards. This will result in higher profitability, enhanced access to

43
the best fruits and complete control of the production process – helping us further

strengthen our market leadership and offer the best tasting juice. ”Real, which

offers the largest range of eight flavours will benefit from improved sourcing

across mango, pineapple, grape, guava, mixed fruit, tomato and litchi. Real Activ

is available in orange, apple and orange-carrot, India’s first fruit-veg combination.

A vital component of the company’s product strategy has been to offer traditional

flavours that are not usually available in packaged form. For instance, Real is the

only brand to offer pink guava and litchi variants which have become very

popular. “Our new multi-fruit processing facility will bolster this strength and help

us to expand our current range by giving us the flexibility to process other

traditional Indian fruits as well as introduce new multi-fruit and fruit-vegetable

combinations,”

44
 Hard War of Soft Drinks
With the change in the lifestyle of people and modernization getting in vogue,

Nepali market place has became a battlefield for various beverage brands. As the

weather now is hot and humid, the war seems to be more intense among soft

drinks. For the last one year or so, Pepsi has been very aggressive. Pepsi’s bottling

company here installed pet bottle plant early February 2000 investing one hundred

million rupees for it and introduced some of its brands in 1.5 liter and 500 ml pet

bottles. Then it introduced 200 ml Phuchhe Pepsi at the right time and the product

is doing well in the market. As a result, its earlier market share of 18 percent has

gone up by another 4 percentage points to some 22%. Phuchhe Pepsi has also

helped in expansion of the market volume of soft drinks.

Pepsi’s global competitor, Coke, meanwhile has not stayed a silent spectator. It

also introduced its brands in pet bottles though by importing the bottles. And it

now has been busy in promotional campaigns of its own, one recent example

being the offer of CD players as prizes to the ‘Lucky Winner’ of a consumer

scheme called ‘Coca-Cola Music Mania’. However, it seems that recently Pepsi is

successful in keeping itself ahead of Coke in Nepal in terms of introducing its soft

drink in different sizes of packaging and devising innovative marketing strategy.

The fight for a prestigious berth in the market between these two cola giants has

been growing ever since Pepsi came to Nepal 1986. Coke had a sort of monopoly

in the market till then. And the war in the market between the two global giants is

45
going on to benefit consumers. What is now more interesting for the Nepali

consumers is that the war has started among fruit drinks also. Till few months ago,

‘Frooti’ was enjoying the advantage of being the only fruit drink in the market

without any competitor. Now with the entry of ‘Rio’ from Gold Beverages (P)

Ltd. of Chaudhary Group, ‘Real’ from Dabur Nepal and ‘Frujo’ from Raybot

Beverages, ‘Frooti’ from Dugar Beverages (P) Ltd. has lost its past privilege. Only

recently, ‘Pran’ brand of orange juice has been launched by importing it from

Bangladesh. Therefore, now Dugar Beverages started providing two extra packs of

Frooti on the purchase of every tray. The company has also started to provide

credit to its wholesalers and retailers, which was unimaginable till the recent past.

And it has changed its slogan which says "Juice up your life" from the earlier

"Mango Frooti, Fresh ‘n Juicy". It had also changed Frooti’s old TV commercial

which had been on air since last one decade or so. TV viewers bored of watching

the same commercial year after year have felt some change. As a result of the new

developments, companies are working hard to gain more market share, be it

through advertising, merchandizing or consumer schemes. Dabur Nepal has

46
reduced the price of its ‘Real’ juice from Rs. 19 to Rs. 14 to make it

more competitive. Though it is still one rupee higher than Frujo, two rupees higher

than Frooti and Rio, and three rupees higher than ‘Slice’ of Pepsi, Real has 50 ml

more than all the competing brands except Frujo. The company has said that the

reduced price offer is only for Real Orange Juice and is valid only till the stocks

last.

The fruit drink market in Nepal is highly segmented quality-wise as well as

market-wise. But general consumers are seen to regard them all as equal in quality.

Quality-wise consumers can get essence based so called fruit drinks like Popayee

at Rs. 6 or even lower as well as other brands for as high as Rs. 45 for 250 ml.

Claimed to be the only carbonated soft drink with fruit juice flavour in Nepal,

Frujo has one other advantage over all other brands, i.e. it is packed in a ‘see

through’ pet bottle. Rest of the fruit drinks are in Tetra Pack except Pepsi’s ‘Slice’,

which is in glass bottle and is not carbonated.

Content-wise too these fruit drink brands have a lot of differences. Most of them

47
are mango-based. But, Dabur’s ‘Real’ is in orange and pineapple. It is also

said to be 100% pure juice (40% pulp content) with no preservatives added. Other

fruit drinks like Slice, Frooti and Rio are said to be nectar based (see box for

required contents of different categories of beverages). "These brands are synthetic

drinks, not real juice as Real", says T.K. Gupta, General Manager of Dabur Nepal.

But most of the general consumers do not know or don’t care to know about the

contents. They regard all these brands to be real fruit juice. The fruit drink market

has grown by almost 30% this year, according to estimates by the companies. The

growth is also there for carbonated drinks as people, especially of the new

generation, go for it. However,it is estimated that carbonated drinks market is

growing slower - between 10 and 15 percent a year. "With the entry of Rio, the

total market for fruit drink has now tremendously gone up", says Manoj Loya,

General Manager of Gold Beverages (P) Ltd. of Chaudhary Group that owns the

brand. But the interesting thing is that after the Phuchhe Pepsi was launched in the

market it snatched away some of the market of carbonated drinks (including that

of its own big brother 300 ml. Pepsi) and also that of fruit drinks like Frooti and

Rio, though Real was not so affected because of its premium ness. Phuchhe Pepsi

has become popular among school kids who otherwise used to have Frooti and

would have gone for other fruit drinks as well. "Almost 50% of such school kids

48
have shifted from fruit drinks to Phuchhe Pepsi", says a fruit drink company

executive in frustration. The reason is that Phuchhe Pepsi is five rupees cheaper

than other carbonated or fruit drinks. This shows how Phuchhe Pepsi has helped to

increase the volume of carbonated drinks industry. Even those who had no habit of

consuming carbonated drinks have started to consume cola thanks to Phuchhe

Pepsi. In small shops, instead of offering a cup of tea, which generally costs five

rupees, people now offer Phuchhe Pepsi to friends, because it is only two rupees

costlier and gives a better image. In the race for catching a respectable market

share of the growing soft drink market of Nepal, there are imported soft drinks as

well, which range from different fruit juices to canned cola. The fruit drinks are

imported from as far away places as Philippines, USA, Singapore and Thailand as

well as from the nearby markets of India and more recently, from Bangladesh.

They are in Tetra Packs, in cans, in pet bottles, and in plastic jars. In taste they are

in mango, orange, apple, tomato, mixed juices and in many flavours containing

nectar, 15 percent to 40 percent fruit pulp or 100% natural juice. Though sales

volume of imported juices has no record at all, estimation shows that about 20 MT

of fruit juice (that includes imports in various packaging) is sold in Nepal every

year. That gives a market share of less than 1%. Sales of canned cola and tonic

water are more difficult to estimate as these items are imported from many

countries like China, Hong Kong, Singapore etc. RNAC and Necon air also import

these products for their in-flight service. Since Coke entered Nepal in 1979 it has

been enjoying market leadership in soft drink industry. Pepsi came to Nepal only

49
in 1986. Being a late entrant, Pepsi has been trailing far behind Coke. Pepsi could

have expanded its market share, but the bottling company of Pepsi in Nepal had

frequent changes in ownership and management. Similarly, trying to take all

responsibility for sales and distribution directly and lacking enough advertising

and promotional campaigns, initially the company could not attract more

consumers to its brands. Even some very successful promotional campaigns in

past could not sustain the increased demand because of limitation in production

capacity. In recent times the company seems to be more serious. Its marketing has

become more aggressive. But that is not going to be enough as yet, since its rival

is far stronger in many respects. For example, Pepsi’s installed bottling capacity

here is only 2,250,000 cases per year and that was achieved only after the

commissioning of the pet bottling line about six months ago. Of this capacity, the

company has been able to sell only about 1,200,000 cases a year whereas Coke’s

sales volume is estimated at over 4,300,000 cases a year. Similarly, Pepsi has no

production facility in the terai region, but Coke does. Because of this the

distribution cost of Pepsi is higher, and quick response to increased demand in

some market places is difficult. Still, Pepsi has chances of high growth provided it

strengthens its distribution and sales and marketing team. This will further help

Nepal’s soft drink market to grow. Market-wise, in Kathmandu valley one finds

growth both in the absolute quantities consumed and in the varieties available. But

outside the valley the situation is not so bright. On the one hand, almost 50 percent

of fruit drink sales is said to be within Kathmandu valley alone, on the other hand

50
brands like ‘Real’ and ‘Frujo’ are not available yet outside the valley. Even the

remaining brands like ‘Slice’ and ‘Rio’ are yet to penetrate some markets. Fruit

drinks market is not yet mature enough as that of cola, as the estimated growth

rates for these products indicate. Consumption of any product depends on the

country’s overall economic condition and also on the habit of the consumers. In

the case of soft drinks, Nepali consumers are more used to cola than to fruit drinks.

The reasons are numerous.

One is the price. Fruit drinks are one to four or five rupees costlier than colas. Second,

consumers seem to feel more comfortable with cola than fruit drinks, because rumors of

foreign objects found are more frequent in packed fruit juices than in colas irrespective of

the veracity of such rumors. Whatever the perception of consumers at present, there are

still very good opportunities for soft drinks especially fruit drinks industry to expand in

Nepal, because the average per capita consumption here of non-alcoholic beverages is

considered to be still very low. And if the manufacturers of fruit drinks become aware of

the tastes and pockets of the consumers and maintain quality and availability of their

products, there is a very good chance of high growth in the volume however tough the

competition may be. Fruit drinks also have one more advantage over cola, as the former

can use the locally produced fruits whereas colas are mainly concentrates that are

imported. While the opponents of consumerism may find strong logic against colas, they

may be supportive of fruit drinks. However, it is also a bitter fact that fruit juices

produced in Nepal are mostly from fruits that are imported. Perhaps it is because the

51
industry is still not grown up enough to encourage sufficient fruit production on

commercial basis.

With a 55% market share, Dabur Foods, the largest player in the packaged,

preservative free fruit juice segment, has pioneered yet another break-through

concept in India. The multi-brand organization, has introduced age-specific market

segmentation with a new sub-brand Real Junior, targeted at kids below 6 years.

With a 1st of its kind initiative in the Indian fruit juice segment, Dabur Foods is

segmenting the market to offer customized fruit juice for kids. Real Junior has

been launched in two flavours – Mango and Apple, enriched with calcium, in 125

ml packs that are just right for kids less than 6 years. The vibrant packs with

animated fruit characters communicate the fun, taste and nutritional aspects of

Real Junior and will strongly appeal to kids. Yet another innovative offering from

Dabur Foods portfolio this summer, is the ‘exotic fruit nectar’ variant, Real

Cranberry Nectar, to be introduced for the first time in the Indian market. Real

Cranberry Nectar, available in 1-litre packs for Rs. 75/- only, offers the exotic

flavour and nutritive value of Cranberries, rich in vitamins, minerals and

antioxidants, which makes it a healthy beverage. “Our ability to take the segment

to the next level of maturity bears testimony to our dominant position in the

category. Dabur Foods not only leads with innovation in its product offerings but

has now taken the lead in redefining traditional marketing dynamics in the

segment,” said Mr. Amit Burman, CEO, Dabur Foods Ltd. Dabur Foods has

52
expanded the range of Real to 9 variants, which offers the largest range of fruit

juices. The juices are an assortment of traditional Indian and International flavours

– orange, mango, tomato, pineapple, mixed fruit, grape, guava, litchi and

cranberry. “Our marketing strategy is to offer multiple pack sizes that suit varied

consumption needs and occasions. With added benefits of Calcium, Real Junior

meets the needs of mother who want her kids to have additional nutritional

requirements that supplement the basic meal. In addition to this, the 125 ml pack,

customized for kids below 6 years, is just the right quantity for them,” said Mr.

Sanjay Sharma, Head of Marketing, Dabur Foods Ltd. Real Junior and Real

Cranberry Nectar will be available across the 4 metros i.e. Delhi + NCR, Mumbai,

Kolkata & Chennai, mini-metros like Bangalore, Hyderabad, Pune, Chandigarh,

Ahmedabad and small cities like Ludhiana, Amritsar & Jalandhar. To expand the

choice-set of juices for consumers, Dabur Foods has constantly been introducing

innovative variants like Real Activ Orange Carrot – India’s 1st fruit-veg juice

combination, which has been well-received by health-conscious consumers. The

company also launched multiple-size options to kids like Real Fruit Juice School

packs that suit varied consumption needs and occasions. The flagship brand of

Dabur Foods Ltd., Real Fruit Juice is India’s leading packaged, 100% preservative

free fruit juice brand offering consumers the great taste and wholesome nutrition

of freshly squeezed juice in a hygienic and attractive pack. Real Activ, which is

targeted at health and fitness conscious young adults, is available in orange, apple

and orange-carrot flavours. Dabur Foods is the only juice company in India and

53
among the top 5 companies in the world to use the latest spin cap tetra pack, cold

fill technology and spill-proof double seal cap for packaging. Real Fruit Juice is

India’s first and only packaged Fruit Juice brand to get SGS (Societe Generale de

Surveillance) certifications for high safety standards used in packaging that

conform to the stringent HACCP and GMP standards. The brand has also won the

award for ‘Highest sales growth achieved by a brand’ in a non-dairy category, at

the 6th National dairy and Beverage Seminar – ‘Innovation for Growth’.

54
 The growing fruit juice and health drinks

market

With people turning more health conscious, the non-carbonated beverage segment
has become one of the fastest growing and most exciting businesses at the

moment. For some time now, manufacturers have experimented with some of the

formulation and taste issues, offering the consumers better tasting, more healthful

alternatives. Evolving from drinks containing a hint of herbs or vitamins,

beverages have become an important delivery vehicle for efficacious amounts of

nutritional ingredients. Beverages are unusual products in that everyone expects to

try new varieties, even from established brands.

While all segments of the beverage market are evolving, the growth seems to be

directed more towards healthy, light and low-calorie drinks, in particular organic

and fruit juice varieties.

The Rs 500 crore non-carbonated beverage market in the country is composed of

fruit drinks, nectar and juices. While the fruit drink segment is estimated at Rs

250-300 crore (branded and packaged), the juice market is valued at Rs 150 crore

and the nectar is a small category of about Rs 35-50 crore. And the popular brands

vying for a share in the sector are Parle's Frooti, Godrej's Jumpin, Coca Cola's

Maaza, Pepsi's Tropicana, and Dabur's Real, Nastle's Milo, Soy milk from

ProSoya and branded fruit juices from Surya Foods among others.

55
The Rs 1,100 crore health food drinks (HFD) market, classified into two categories of

white and brown segments, has remained stagnant for the last several years despite

GSKCH (GlaxoSmithKline Consumer Healthcare) and Cadbury's attempts to activate the

category. While Cadbury's Bourvita has been at the forefront of the HFD market,

GSKCH has also been active. Apart from repositioning its Horlicks brand from health

drink to a fun drink, GSKCH more recently has launched its brown drink Boost in 100gm

sachets as well in Tetrapak as a ready-to-drink product. GSKCH's Horlicks and other

brands like Boost, Viva, Maltova, together have a 75 % share of the health food drinks

market. Horlicks alone, as a white beverage, is believed to have an over 50 % market

share.

Nestle's Milo, however, being a brown drink faces direct competition from

Cadbury's Bournvita and GSKCH's Boost. The market has marginally moved from the

white malted beverages to the brown segment. The latest to join the race is GCMMF,

which has relaunched its health food drink branded as Amul Shakti.

What follows is an overview of the latest product offerings from

different beverage companies.

Parle's Frooti No 1 fruit drink

Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in

India. It reaches more than 10 lakh retail outlets in up to class C towns through more than

1,500 distributors and wholesalers directly and indirectly. India's first real fruit drink in

Tetrapak is available in threedelicious varieties - mango, orange and pineapple –

56
 Other Big Competator Of Dabur Real Juices

Godrej's Jumpin & Soyfit in several flavours

The Foods Division of Godrej Industries produces and markets fruit drinks, fruit nectar

and Sofit Soymilk. The Jumpin range of fruit drinks come in flavours such as maqngo,

apple, pineapple, litchi and orange. They are packaged in hygienic and aseptic Tetrapak

that assures top quality. Ice-cold Jumpin can be enjoyed straight or mixed in a punch or a

cocktail. They are available in packs of 200 ml.

Godrej Xs fruit juice is packed with extra tang and extra fun.

Xs range of fruit nectar has more fruits making it thick and tasty. Also the vitamins and

carbohydrates present in it provide extra energy for a fit and healthy living. Available in

orange, mango, litchi and pineapple flavours, Xs come in Tetrapaks of 200 ml and 1000

ml.

Godrej has launched Sofit Soymilk for the health conscious. Sofit Soymilk made from

carefully selected soybeans, is a valuable source of proteins and vitamins. Being low in

saturated fat and cholesterol free, is becoming a popular drink. Available in mango,

apple, malt and plain flavours, Sofit is sold in Tetrapaks of 200 ml and 1000 ml. The

1000 ml pack is priced at Rs 50. Sofit is made by mixing soymilk with real fruit pulp, to

give all the health benefits of soy to the consumers with the refreshing taste of fruits,

claims the company. Soymilk is free of lactose which is present in cow/buffalo milk. The

company is in the process of launching more health products.

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Nestle's Milo with 'badam shakti'

Nestle is relaunching its chocolate health food drink Milo by re-energising it with 'badam

shakti'. According to company sources, Milo is all set to get a new lease of life with a

new packaging, formulation and a distinct positioning. Currently, Milo is available in a

SKU of 500gm priced at Rs 96. In the past, Nestle had exited from categories like

packaged water business and discontinued a few of its brands, including Nescafe Choc

Café and Milkmaid dessert mixes, due to their poor performance.

By giving Milo a new distinct local positioning and introducing the brand in convenient

sachets at lower price point, it is clearly moving away from being a very urban-focused

player and targeting newer markets and driving rural demand.

PEPSI'S TROPICANA

Pepsi's Tropicana brand fruit juice has registered double digit growth and has outpaced

the growth of the packaged fruit juices market in India. India is a very important market

for Tropicana and is among the top 10 biggest markets for the brand. The company

sources orange juice concentrates from Brazil. Tropicana is available in orange, apple,

grape and cranberry flavours and a cocktail in Ruby-red. They come in Tetrapaks of one

litre and PET bottles of 500 ml and one litre. Pepsi also markets an energy drink for the

sports personnel, called Gatorade, and a sugar-free Diet Pepsi. Pepsi, in association with

Hindustan Lever Ltd (HLL) is planning to launch Lipton iced tea in a couple of months.

The move is to take on its arch rival Coca Cola which was successful in its business in tea

and coffee, both hot and cold in association with McDonald's.

58
ProSoya's Soymilk Staeta

ProSoya Foods India, promoted by the Canada-based ProSoya Inc. has launched its low

carbohydrate soymilk under the brand name Staeta in the major metros and selected cities

in January 2004. The company has a manufacturing tie-up with Godrej Foods at the

latter's Bhopal plant. The company is targeting a Rs 100-crore turnover in five years from

the present Rs 4 crore. The Indian Soy food market is expected to grow at about 200%

awareness about health is growing.

Coca Cola's Maaza very popular

Maaza was launched in 1976, a drink that offered the same real taste of fruit juices and

was available throughout the year. In 1993, Mazza was acquired by Coca Cola India.

Mazza currently, dominates the fruit drinks industry. Over the years, Mazza has become

synonymous with mango. The drink became a hit with successful advertisement

campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain

naam.'Consumers regard maaza as wholesome, natural, fun drink which delivers the real

experience of fruit. It5 is available in SKUs of 200 ml RGB, 250 ml RGB, 125 ml

Tetrapak and 200 ml Tetrapak. Besides, Coca Cola is also in the business of tea and

coffee under the brand name Georgia Gold. The brand is available at all McDonald's

outlets across the country. After the hot beverage did well, the com-pany entered the ice

tea and coffee market with Georgia brand last year, again in association with

McDonald's. Coke's non-CSD portfolio also comprises powder soft drink concentrate

Sunfill, and the bottled water brand Kinley. The company is expected to launch a new

low calorie cola and introduce more varieties of flavoured bottled water over the next few

months.

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 UNCONVENTIONAL WAYS

(1) Fitness center

(a) Talwalkars
(b) Body care
(c) Uthopia
(d) Slim line.
(e) Grace (Sahara)
(2) Gifts packs (Marriage Anniversary)
(a) Diwali
(b) Holi
(c) Christmas
(3) Cooperate Gifting
(a) Pharmaceuticals Gifts pack
(4) Hospitals (Dilatation)
(a) S.G.P.G.I.
(b) K.G.M.C.
(5) Juices Kicos
(a) In main Market
(b) Fountain Juice corner
(6) Ice- cream Factory
(a) Gloria
(b) Amul
(c) Zenon

(7) Combo – offer

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 (a) Pizza port
(b) Pizza Hutt
(c) Mc.Donald
(8) Tour packages

SOURCED AREAS

(1) Army Messes

(2) Hospital Canteens.

(3) Fitness Center

(4) Call Center

(5) Office Canteens

(6) College Canteens

(7) Ice- Cream Factory

(8) Restaurants

61
Ratio of different companies in the juice market

62
CONSUMPTION DISTRIBUTION IN DIFFERENT BRANDS

Army

100

Hospital
Restaurant

80
College
60 Fitness
center

40

20

Real
Real Tropicana Rasna Fruity Safal

Real

Tropicana

Rasna

Safal

63
 RESEARCH BACKGROUND

RESEARCH OBJECTIVE
In the first phase of the research the objective is to find out the attributes
that the retailer looks for in a company while dealing with it.
Objective of the second phase is to compare five multinational giants namely-

Dabur, Tropicana, Rasana, Frooti, Safal, Amul.

INFORMATION NEEDED

1. Name of the companies that the dealer like to deal with.

2. Reasons as to why they like to deal with them.
3. Ranking of the companies with respect to various attributes.

RESEARCH DESIGN

In the first phase, research was a descriptive one involving a detailed study of the
attributes that a dealer keeps in mind while dealing with various companies, with a
sample of population of retailer in Lucknow. It consisted of the pilot survey and
the final survey.
In the second phase research was an objective one in which only ranking was to be
given to the companies with respect to various attributes. Before the final survey, a
pilot survey was conducted with a small sample.

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SAMPLING UNIT
Institution
SAMPLE SIZE
First phase : 50
Second phase : 100

SAMPLE SPECIFICATIONS
1. Restaurant
2. Canteen College
3. Hospitals
4. Army mess
5. Coll canteens

SAMPLING TECHNIQUE
Non-probabilistic, simple random sampling was chosen to be the most suitable
technique.

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RESEARCH METHODOLOGY

The survey was conducted in two phases. In both the phases, prior to the final
survey, a pilot survey with a small size, was conducted. So, the research
methodology was like :
Pilot survey
Main survey
In the first phase the pilot survey involved 5 respondents. And in the second phase
pilot survey involved 10 respondents. Convenience sampling technique was used
in the pilot surveys. Main survey involved visiting 50 respondents in the first
phase, who fulfilled all the criteria. In the second, 100 respondents were surveyed.
In both the phases, respondents were approached in all the regions of Lucknow.

LIMITATION OF THE STUDY

1. The data is applicable to Lucknow only, as the study was conducted in
Lucknow only. This data cannot be used for other cities of India as well.
The data might not be totally representative of

the population due to small size of the sample

as compared to the size of the population.

66
 CONCLUSION

With a 55% market share, Dabur Foods, the largest player in the packaged,

preservative free fruit juice segment, has pioneered yet another break-through

concept in India. The multi-brand organization, has introduced age-specific market

segmentation with a new sub-brand Real Junior, targeted at kids below 6 years.

With a 1st of its kind initiative in the Indian fruit juice segment, Dabur Foods is

segmenting the market to offer customized fruit juice for kids. Real Junior has

been launched in two flavours – Mango and Apple, enriched with calcium, in 125

ml packs that are just right for kids less than 6 years. The vibrant packs with

animated fruit characters communicate the fun, taste and nutritional aspects of

Real Junior and will strongly appeal to kids. Yet another innovative offering from

Dabur Foods portfolio this summer, is the ‘exotic fruit nectar’ variant, Real

Cranberry Nectar, to be introduced for the first time in the Indian market. Real

Cranberry Nectar, available in 1-litre packs for Rs. 75/- only, offers the exotic

flavour and nutritive value of Cranberries, rich in vitamins, minerals and

antioxidants, which makes it a healthy beverage. “Our ability to take the segment

to the next level of maturity bears testimony to our dominant position in the

category. Dabur Foods not only leads with innovation in its product offerings but

has now taken the lead in redefining traditional marketing dynamics in the

segment,” said Mr. Amit Burman, CEO, Dabur Foods Ltd. Dabur Foods has

67
expanded the range of Real to 9 variants, which offers the largest range of fruit

juices. The juices are an assortment of traditional Indian and International flavours

– orange, mango, tomato, pineapple, mixed fruit, grape, guava, litchi and

cranberry. “Our marketing strategy is to offer multiple pack sizes that suit varied

consumption needs and occasions. With added benefits of Calcium, Real Junior

meets the needs of mother who want her kids to have additional nutritional

requirements that supplement the basic meal. In addition to this, the 125 ml pack,

customized for kids below 6 years, is just the right quantity for them,” said Mr.

Sanjay Sharma, Head of Marketing, Dabur Foods Ltd. Real Junior and Real

Cranberry Nectar will be available across the 4 metros i.e. Delhi + NCR, Mumbai,

Kolkata & Chennai, mini-metros like Bangalore, Hyderabad, Pune, Chandigarh,

Ahmedabad and small cities like Ludhiana, Amritsar & Jalandhar. To expand the

choice-set of juices for consumers, Dabur Foods has constantly been introducing

innovative variants like Real Activ Orange Carrot – India’s 1st fruit-veg juice

combination, which has been well-received by health-conscious consumers. The

company also launched multiple-size options to kids like Real Fruit Juice School

packs that suit varied consumption needs and occasions. The flagship brand of

Dabur Foods Ltd., Real Fruit Juice is India’s leading packaged, 100% preservative

free fruit juice brand offering consumers the great taste and wholesome nutrition

of freshly squeezed juice in a hygienic and attractive pack. Real Activ, which is

targeted at health and fitness conscious young adults, is available in orange, apple

and orange-carrot flavours. Dabur Foods is the only juice company in India and

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among the top 5 companies in the world to use the latest spin cap tetra pack, cold

fill technology and spill-proof double seal cap for packaging. Real Fruit Juice is

India’s first and only packaged Fruit Juice brand to get SGS (Societe Generale de

Surveillance) certifications for high safety standards used in packaging that

conform to the stringent HACCP and GMP standards. The brand has also won the

award for ‘Highest sales growth achieved by a brand’ in a non-dairy category, at

the 6th National dairy and Beverage Seminar – ‘Innovation for Growth’.

69
 Findings

Dabur ;

Food came out to be top ranked company, mainly due to its goodwill, demand for

its products, regular services given by it to retailers,

Tropicana

Is rank at the second position. It secured this position due to its goodwill,

effective advertising , good quality of its products, schemes and regular services

offered by it.

Rasna :

Is the third ranked company after. Its prime strengths are the replacement policy,

quality of its products and profit margin given to retailers.

Frooti :

Fourth position in the final ranking of the companies. Replacement policy and

advertising are the areas where Fruti is doing well.

Amul

Got the fifth ranking , finds itself best in the policy of profit margin given to the

retailers.

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Findings Based on Questionnaire:

Which brand you prefer most

10%
10%
Dabur
Amul
Tropicano
20% 60%
Fruity

71
 Why do you buy Dabur product

10%
20%
Price
Purity
Brand Name
20% 40% Quality
Taste

10%

72
 Which is the main comptetitor of Dabur

25%

Amul
50% Fruity
Tropicano

25%

In case of change in flavour of Your Dabur product

you switch to other brand?

20%

Yes
No

80%

73
 Questionnaire

Name:

Address:

i)Which brand is most popular?

a) Dabur b) Amul

c) Tropicana d) Fruiti

ii) Why do you choose Dabur product?

a) Price b) Purity

c) Brand Name d) Quality

d) Taste

iii) According to you which is the main competitor of Dabur?

a) Amul b) Fruity

c) Tropicana

iv) When the price increase of Dabur would you change your preference.

a) Yes b) No

74
v) If you find the change in flavors in your current using brand then would

you switch over to another brand?

a) Yes b) No

vi) Which brand you prefer and why?

…………………………………………………………………………………..

…………………………………………………………………………………..

vii) Why you like Dabur product?

…………………………………………………………………………………..

…………………………………………………………………………………..

75
 BIBLIOGRAPHY

BOOKS:

1. Marketing Research : C.R. Kothari

2. Marketing Management : Philip Kotler

3. Marketing Management : Rajan Saxena

WEBSITES:

1. www.Dabur.com
2. www.Daburfoods.com
3. www.google.com

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