Operations Strategy

Dabur caters to large Indian market through its 9 plants spread across North and West India (exhibit 1). To

achieve operational efficiency it has also out-sourced its Personal care products to 8 contract manufacturers.

Dabur has been giving considerable emphasis on improving manufacturing and operational efficiencies by

enhancing productivity of capital and existing assets through its Total Production Maintenance program. It

emphasis on improving plant efficiencies in the existing manufacturing facilities and following more stringent

quality control and supervision norms at outsourcing locations through its Total Quality Control program. It

aims at reducing raw material wastage, time saving and makes the procurement process more efficient.

Dabur strongly believes that financial performance and sustainability go hand in hand and can never be

separated1. To achieve sustainability Dabur is committed to reduce its carbon footprints, maximize production

paralleled by minimizing consumption of natural resources. It leads various initiatives towards achieving the goal:
y

New boiler technology to generate attractive savings in energy costs, and reduce
discharge of solid waste to the environment
y

Substitute furnace oil with pet cake  a by-product of crude refining-as fuel, a move that
has led to considerable every savings
y

Using rice husk as fuel to save energy costs

y

Convert herbal waste onto bio-briquettes that can be used as fuel in boilers
y

Rain water harvesting and water recycling

Operations at Dabur continuously strives to improve its performance and its standing in the society by focusing all

efforts towards making the most meaningful difference in both environment and social sustainability2.
Suppliers and purchase process
Dabur has a huge network of suppliers and vendors to cater to the raw material requirements
for its 300 diverse products in FMCG, Healthcare and Ayurveda segments. TheCentral Planning
and Procurement Division (CPPD) is responsible for purchase operations at Dabur, acting in
coordination with the Production and Marketing Divisions3.

1 Annual Report 2009-2010, Dabur

2 Sustainability Report 2009-2010, Dabur

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IT Initiatives at Dabur

At Dabur, Knowledge and technology are the key resources which have helped the Company achieve higher

levels of operational excellence and efficiency. To would also help in integrating its vast distribution system spread

across the world. Some of its major IT initiatives to achieve operational efficiency include4:
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Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st Apr il
2006 for all business units
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Implementation of a country wide new WAN Infrastructure for running centralized ERP
system
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Extension ofReach System to distributors for capturing Secondary Sales Data.

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Roll out of IT services to new plants and CFAs.
Research and Development
Research at Dabur focuses on its core values5 of consumer focus and innovation. There are over

ten diverse areas in which DaburResearch Foundation carries out research besides conducting tests and trials.

They are AyurvedicResearch, Pharmaceutical research, Phyto-pharmaceuticals, Biotechnology, Agronomy,

Personal care products, analytical, synthetic chemistry, oncology research, peptide research, food research and

clinical research.
4 h tt p: / / www.d abu r. co m/ A b ou t %2 0 Da bu r -IT% 2 0 In i t i at i ves
5 h tt p: / / www.d abu r. co m/ A b ou t %2 0 Da bu r -Cor e%2 0 V al u es