Strategy For Emerging Markets

Dabur India Pvt Limited

Submitted By: Group 8

Divi Sindhu Bhargavi (MBA20167)
Roopak M (MBA20196)
Sailada Rohit Kumar (MBA20198)
Bhukya Sudhakar (MBA20161)
Vighnesh S (MBA19064)
Dabur

World Portfolio of over 250 Herbal and Ayurvedic products

Leader

Dabur - healthcare, Vatika – premium personal care, Hajmola - FMCG

digestive, Real - beverage, Fem - skincare portfolio

High Wide distribution network, covering 6.9 million retail outlets in

both urban and rural areas
Penetration

Available in over 100 countries and highly popular in the International

Middle East, SAARC countries, Africa, US, Europe and Russia
Presence

Amidst challenging environment, rolled-out more than 50 new

COVID products, implementing aggressive growth strategies.
 SBU wise Revenue Mix
Consumer Revenue Mix; 2.30%
Care
Health Care (HC) and
Home & Personal Care
(HPC) account for
62.0% of Sales International Revenue Mix;
Food Overseas business and 26.40%

Packaged Fruit Juices and acquired entities of

Culinary Products
account for 9.3% of Sales
SBUs Hobi Group and
Namaste Laboratories Revenue Mix;
62.00%
LLC account for 26.4%
of Sales
Revenue Mix; 9.30%

Financial Review
ROIC & Return on Net
Operating Profit Dividend
Worth
 operating profit grew by 11.7% to The Company increased its pay-out ratio to
reach 2,003 crores. The operating ROIC and Return on Net Worth
increased on account of strong growth 50% of Profit After Tax, resulting in total
margins continue to remain healthy at
in profit after tax during the year. dividend of 839.5 crore for the fiscal 2020-
20.9%
21.
 Dabur’s Competition in India and its Survival Strategies

Hair Oil Shampoo Oral Care Skin Care Fruit Juice

•While enhancing the •Relaunched Vatika •Used Moment •Launched Gulabari & •Launched Amla &
value proposition of its shampoo with entirely Marketing to drive brand Fem improving the Neem tulsi juice to
core brand, the firm- new packaging with connect for Dabur red complete packaging & cater to the growing
built connections with SKU’s specially for paste during CWC special content for needs of immunity
millennials by modern trade outlets •During recent consumers on skin building products
launching premium which improved the lockdown, Dabur upped care and bleaching at •Introduced a 10 pack
variants bottle saliency of Vatika its ante and engaged home of Real Koolerz to tap
•Launched hair oil, shampoos aggressively in low •Expanded its oxylife low priced products
shampoo and •Used digital and social priced oral care market facial kit range by and expand the reach
detangler for kids and media to build with the launch of 10 launching pro radiance and distribution of its
worked on creating connection with packs which increased and pro white kit for beverage products
moats through brands millennials by sharing penetration & male grooming which
like Brahmi and styling videos and posts distribution of products had natural ingredients
Sarson Amla like menthol & tree oil
It faces strong competition It faces strong competition It faces strong competition It faces strong competition Market leader in this
from Marico from HUL and P&G from Colgate & HUL from HUL and Cavincare segment
CAPITAL MARKET

INSTITUTIONAL VOIDS What did Dabur do

How effective are corporate governance Liberalization opened the door to the foreign multinational brands. Dabur
norms ,standards & government regulations in implemented a multi-faceted growth strategy & focused on its core business
protecting shareholder's interest that is manufacturing quality and cost-efficient consumer products

Do the laws permit companies to engage in Dabur becomes a Public Limited Company after reverse merger with
takeovers or mergers? Vidogum Limited (company which was promoted by Dabur)

Can companies raise large amount of equity capital Dabur India Ltd. raises its first public issue in 1994. Due to market confidence
in the stock market? in the Company, shares issued at a high premium are oversubscribed 21 times

Moving forward on the inorganic growth path Dabur India decides to raise upto
Do the laws permit the firms to raise capital from
$200 million from the international market through bonds, FCCBs, GDR, ADR,
internal market?
QIPs or any other securities.
PRODUCT MARKET
INSTITUTIONAL VOIDS
Do large retail chains exist in the country? If so, do
they cover entire country or only the major cities?
Can the companies streamline their business into
various division for the ease in management? Are
consumers willing to try new products & services?
How strong are the logistics and transportation
infrastructures
What kind of product related environment and
safety regulations are in place? How do the
authorities enforce regulations?
What did Dabur do
Total reach at 5.3 Mn retail outlets, one of the highest among FMCG. Dabur
entered the organized retail business through a wholly owned subsidiary, H&B
Stores Limited to establish its presence in the retail market in India with a chain
of stores on the Health & Beauty format
For better operation and management, Health Care, Products Division, Family
Product Division & Dabur Ayurvedic Specialties Limited were created. Dabur
enters full-scale in the nascent processed foods market with creation of a
Foods Division.
Dabur has 12 production facilities which helps it in managing the supply and
demand smoothly and removing unnecessary bottle necks which might delay
processes. Dabur has become first domestic FMCG company to use the
country’s Inland Waterways for container movement through the newly
inaugurated National Inland Waterway today
Dabur provides healthy and safe working conditions to prevent and eliminates
any hazards. It fulfils all the compliance obligations including environment,
Health & safety and legal and makes continual improvement in performance
through optimization in processes.
LABOUR MARKET

INSTITUTIONAL VOIDS What did Dabur do

With changing demands of business and to inculcate a spirit of corporate

Do the laws and regulations limit a firm's ability to governance, the Burman family inducts professional to manage the company.
restructure? For the first time in the history of Dabur, a non-family professional CEO sits at
the helm of the company

Dabur have employee association which is registered under "Trade Union Act
How are the rights of the workers protected? How - 1926" in Kolkata. Human rights related issues are covered under the Code of
strong are the trade unions? Ethics & Conduct and the Direct Touch policy (Whistle Blower & Protection
policy)

Dabur has 18 adult literacy centers and promotes self help groups. Also, it
How are women empowered by the firm provides vocational Training to over 500 women from villages on various crafts
so that they become employable by Dabur or any other firm
MACRO CONTEXT

INSTITUTIONAL VOIDS What did Dabur do

Can a company setup its business anywhere in the Dabur has 12 manufacturing plants in India in Baadi, Patnagar, Sahidabad,
country? Are its motives political or inspired by Jammu, Silvassa, Alwar, Katni, Narendrapur, Pithampur and Nasik. All these
local regional development strategy? places are strategically decided based on the availability of raw materials and
the incentives provided by that govt

Dabur is impartial towards any media channel or newspaper and gives its
How vibrant and independent is the media? Are press releases and statements to all the concerned authorities. All the media
newspaper and magazines neutral or are they biased? houses and newspapers are neutral towards dabur and support or criticize
based on the scenerios

Mergers, Acquisitions & Joint Ventures

1992 1995 2005 2008 2011

JV with Agrolimen JV with Osem & Bongrain Acquired Balsara Acquired Fem Care Acquired 30-Plus
Pharma
This new venture is to Osem of Israel for food A leading provider of Oral Dabur acquires 30-Plus
manufacture and market and Bongrain of France A leading player in the
Care and Household from Ajanta Pharma to
confectionery items in for Cheese & other dairy women skin care
Care products in the expand into OTC health
India. products. market.
Indian Market care business
Overseas Market
INSTITUTIONAL VOIDS What did Dabur do

What are the regulations for mergers and Dabur acquired Hobi Kozmetik Group, a leading personal care products
acquisitions for expansion of business or company in Turkey and US based personal care firm Namaste
entering new market? Laboratories LLC along with its three subsidiary companies.

Dabur aimed at reducing costs and optimizing procurement efficiencies,

Can companies access raw materials and
ties up with Free Markets Inc for global e-sourcing. This will give
components of good quality? Are there firms that
Dabur an edge over competitors by enhancing reach, response time and
assess suppliers' quality and reliability?
transparency

Logistics and Transportation Dabur’s strategy is to localize manufacturing, supply chain and product
offerings to suit consumer requirements in each geography

To develop trust among the stakeholders and maintain transparency,

How effective are corporate governance norms strong corporate governance, ethical corporate behavior and fairness to
and standards? all stakeholders are embodied in Dabur’s Code of Ethics & Conduct
which guides its operations across the globe
 Does the beliefs of religious or ethnic groups Dabur has Halal certification on its toothpastes, chewing gums and
effect consumer preference? other products particularly sold in UAE and middle east

What restrictions does government place on Most of the Dabur’s facilities are in regions which welcome foreign
foreign investments? investments with business-friendly policies. Eg- Nepal, RAK (UAE)

Are there other types of distribution channels, Dabur formed a strategic partnership with Amazon via their Global
such as direct to consumer channels or discount Selling Program, which allows them direct access to Amazon’s
retail channels, that deliver product to consumers in the international markets and expand its footprint
customers? exponentially.

Mergers, Acquisitions & Joint Ventures

2003 2003 2011 2011

Acquires Redrock JV in Bangladesh Asian Acquires Hobi Acquires Namaste
Ltd Consumer Care Kozmetik Group Laboratories LLC
Private Limited
Dabur Capturing the bottom of the pyramid

Promotion Project double Eco Friendly Intiative

TV ,Radios,news Paper,wall
paintings,POP displays, video
vans,Melas, Social Media
The aim was to manage
cost of reaching and
activating rural consumers
Joint initiative with
Reliance  launched a pilot
initiative to remove paper
cartons from Dabur Red
Paste 

Vacational training
Eco friendly Campaign Swalambah CSR Intiative program
Give up the Carton, Give me CSR Intiative to Brand Technical training and skills in
a Future' in association with Awarness and Recognization. areas of Sales, Merchandising
CRY Rural areas and Promotion were imparted to
rural youths
Dabur Capturing the bottom of the pyramid with Diff strategies

Regional Branding Health Camps Beauty Pegion 

launched Dabur Lal Dant Health camps in school to boost came up with beauty pigeon
Manjan as Sivappu Pal Podi in sales of toothpaste and to promote its beauty
South India and Dabur Red chavanprash products
Tooth Powder in North India

"700 se 7 Kadam" ASTRA Rural Sales force of Dabur

To boost its toilet cleaner Dabur uses ASTRA Rural to To improve sales and rural coverage,
brand Sanifresh increase sales in rural India these phones are equipped with
maps and demographic data
Thank you