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DABUR INTERNATIONAL LTD.

Group 8

INTRODUCTIO N
 Leading consumer goods company in India with a turnover of Rs. 5,283

Crore (FY12)  2 major strategic business units (SBU) - Consumer Care Business and International Business Division (IBD)  2 Subsidiary Group companies - Dabur International and NewU  Several step down subsidiaries:
       

Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA)

 Products marketed in over 60 countries  Wide and deep market penetration with 50 C&F agents, more than 5000

distributors and over3.4 million retail outlets all over world

Health Care.CONSUMER CARE BUSINESS Business Portfolios of • • • • Personal Care.Tasty digestives Réal .Fairness bleaches & skin care products .Premium hair care Hajmola . Home Care & Foods Master brands: • • • • • Dabur .Ayurvedic healthcare products Vatika .Fruit juices & beverages Fem .

US  High level of localization of manufacturing and sales & marketing .Nigeria .Egypt .INTERNATIONAL BUSINESS DIVISION  Contributes to about 30% of total sales  Leveraging the 'Natural' preference among local consumers to increase share in personal care categories  Focus markets: .GCC .Nepal .Bangladesh .

Source: Dabur Website .

THE STORY SO FAR… .

STRATEGIC INTENT IN GROWING INTERNATIONAL BUSINESS  Geographical Expansion: To identify markets for entry and commit financial and human resources in focus markets  To leverage the natural platform and capitalize on the internationally growing global demand for natural product  To grow both inorganically and organically .

Ayurveda and Yoga  High Margins  Cost of doing business .TARGET MARKET SELECTION  Asian Countries and Gulf Countries:  Tapping Indian Diaspora  Familiarity with Dabur as a brand  Preference for traditional products  US/UK  Eastern shift of mindset towards Health.

DABUR INTERNATIONAL MARKET Source: Harvard Business Rev .

PRODUCT MATRIX IN A FEW FOCUS MARKETS Source: Harvard Business Revie .

UK) • Local manufacturing units in Nepal and Bangladesh. Morocco). Africa(Egypt. . Bangladesh. Nepal . export oriented unit in India • Gulf Countries.Markets 20 Focus Countries to establish manufacturing and marketing facilities• Asian Markets-Pakistan. Middle East Countries(Iran.Sri Lanka. Iraq) • Manufacturing facilities in Dubai. Sudan. Bangladesh. Malaysia and developed markets(US. Nigeria. Cairo and Lagos.

MODES OF ENTRY .

Africa. manufactured under strict international quality benchmarks. Latin America. and other Asian countries  Export of food and textile grade natural gums. DIL as an umbrella organisation to focus and structure its global operations 2003: 74:26 Joint venture with Bangladesh company Advanced Chemical Industries 2006: Had 5 manufacturing units overseas(11% of sales) 2009: Major markets-Middle east. EU. 1987: Export facility near Delhi set up  Active Pharmaceutical Ingredients (APIs). America. extracted from traditional plant sources  1997: International Business not a focus segment. Goal-20% of revenues by 2012 . to Europe. Africa. South-east Asia. accounting for less     than 6 % of turnover (Hair oil to Gulf Countries) 2003: Floated a Dubai based subsidiary .

KEY STRATEGIES  International range to include Dabur India's     existing products under these brands as well as regional variants Judicious involvement of business partners Investments in brand building New product introductions Adequate management attention to develop markets for these brands .

.  The personality of Vatika would be very modern and upmarket while that of Dabur would be purposive and traditional.  Dabur will target the Health conscious mature consumer and offer products offering benefit of single herb.Niche Target  Vatika will offer products that appeal to the younger segment of the market in the Natural and Herbal Personal care and Beauty care categories.

 The company had acquired this franchise in 2003 last year at investments of about USD five million. Nature4u  2001: Online Venture called Nature4u. having a range of food supplements sold only in UK and European Union. Dabur had set up Dabur International Limited and appointed a CEO for this business.  Post this acquisition.  Nature4u is brand in UK that has a range of about 13 food supplement products that are being sold .Redrock Limited  Since 1992: Franchise Redrock Limited. which is the hub of Dabur India's international business and has a turnover of Rs 86 crore.

. which has a total equity base of about Rs two crore.  Dabur has acquired majority 74 per cent stake in the new company.The Bangladesh Chapter-Year 2003  Entered into a 74:26 Joint Venture with Bangladesh company Advanced Chemical Industries for producing hair and oral care items.

made the holding company for overseas subsidiaries . the holding company for Dabur Egypt Limited to Dabur International Limited. which was acquired in September 2003.Consolidation of International Business 2005  Transferred the company’s holding in Dabur Nepal Private Limited and Dabur Overseas Limited. a 100% subsidiary of Dabur India Limited.  Dabur International Limited. erstwhile Redrock Limited.

Europe and Africa.2010: A Year of Acquisitions Hobi Kozmetik Group  The acquisition offers Dabur an entry into an attractive new market like Turkey.S. This marks Dabur’s entry into the fast-growing ethnic hair care products market in U. . and adds to our portfolio a host of popular international brands that enjoy pole position in their respective categories  The acquisition is more of establishing its base across the GCC and MENA region to drive additional growth from the international markets Namaste Lab  Dabur acquired 100% equity in Namasté Laboratories LLC of the US for $100 million..

) Ltd.  Export-oriented manufacturing facility for producing a range of fruit-based beverages in Gampaha.The Sri Lankan Venture-2011  Subsidiary in Sri Lanka – Dabur Lanka (Pvt. north of Colombo. .

MARKETING MIX Marketing Mix Element Product Standardized Dabur Amla Hair Oil Localized Dabur Amla Cooling Herbal Hair Oil (Arabic Countries) Ethnic Counters for Dabur’s Health care products in US with some US retailers Regional Actors/Models for Advertisements Dabur Arabia Promotion (Regio-Centric) Normal/ Special Display of products Place Hair Care Products marketed as having therapeutic value Dabur Vatika Smooth & Shine Shampoo for Rs. 54. Price .50 (UK).0 Hair Care Products in Nigeria are cosmetic Dabur Vatika Smooth & Shine Shampoo £8.

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targeting new niche markets and strategic acquisitions  Diversified Product Portfolio. Hammam Zaith and Snake Oil for women of middle east Source: ameinfo.com . deodorants and hair color to be launched this year as a part of intensified growth strategy in Middle East  Broadening Consumer Base through geographic expansions.THE FUTURE AHEAD  New line of skin care. shampoos. eg.