Dabur

Dabur is one of
the India's largest
Ayurvedic
medicine and
natural consumer
products
manufacturer
Dabur’s Aspiration and Situation
It also plans to increase
Aspires to become India’s
the turnover to Rs. 20
best FMCG company by
billion by the year 2003-
2004.
04.

Dabur’s price to earning

But it lacks behind from
ratio was less than 24, for
its competitors in some
most of the others it was
critical areas.
more than 40.

Net working capital of the Its operating profit

company was less than margins and return on net
half of the other worth was also quite less
competitive companies. than its competitors.
 In April 1997, it hired McKinsey & Co.
@Rs 80 million

Restructuring
efforts of Three-fold recommendation given by
Dabur agency were ;
Concentrate on Improve supply Reorganise the
a few chain & appraisal and
businesses procurement compensation
only, process, system.
 Burmans take a back seat and
Concentrate on Strategy decisions,

Day to day management handed over

Steps taken by to group of professions,
Dabur
Revamp of
organizational
structure
 • CEO - Ninu Khanna
• VP - Deepak Sethi (Sales & Marketing, Health
Important Care division)
Appointments • VP - Ravi Sivaraman (Finance)
• VP – Yogi Sriram (HRD)
Improved Appraisal Criteria
New concepts included in appraisal criteria-

Increased
Customer Cycle time Share holder
sales & ROI
Satisfaction efficiency value
reduced cost

Dabur’s compensation now more Performance Oriented,

Focus shifted to What person achieved & what he is capable of.

Introduced ANNUAL SALES
CONFERENCES AT
WORK AND PLAY CONCEPT
FOR BETTER PERFORMANCE

Employee MAURITIUS & KATHMANDU

friendly
Initiatives

CASH INCENTIVES FOR CLUB HOLIDAYS TO ENJOY

ACHIEVING TARGETS, VACATIONS
To boost Identified KPAs Focused Training

Employee
Satisfaction
Level
Two Way Employee Stock Option
communication Channel Plan
 Increased employee efficiency &
Morale,
13.5% increase in Sales,
Effect of
Restructuring
on Dabur 53% increase in Profits,

FMCG MAJOR vision is achieved