COMPANY Report- Dabur

8/3/2019 COMPANY Report- Dabur

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COMPANY PROFILE

Dabur India Ltd is one of Indias leading FMCG Companieswith Revenues of about US$750 Million (over Rs 3416Crore) &Market Capitalization of over US$3.5 Billion (over Rs16,000Crore). Building on a legacy of quality and experience ofover 125 years, Dabur is today Indias most trusted name andthe worlds largest Ayurvedic and Natural Health Care Company.

Dabur India is also a world leader in Ayurveda with aportfolio of over 250 Herbal Ayurvedic products. Dabur's FMCGportfolio today includes five flagship brands with distinct brandidentities -- Dabur as the master brand for natural healthcareproducts, Vatika for premium personal care, Hajmola fordigestives, Ral for fruit juices and beverages and Fem forfairness bleaches and skin care products.

Dabur today operates in key consumer productscategories like Hair Care, Oral Care, Health Care, Skin Care,Home Care and Foods. The company has a wide distributionnetwork, covering over 2.8 million retail outlets with a highpenetration in both urban and rural markets.

Dabur's products also have a huge presence in theoverseas markets and are today available in over 60 countriesacross the globe. Its brands are highly popular in the MiddleEast, SAARC countries, Africa, US, Europe and Russia. Dabur'soverseas revenues stand at over Rs 500Crore in the 2008-09fiscal, accounting for about 20% of the total turnover.

The 125-year-old company, promoted by the Burmanfamily, had started operations in 1884 as an Ayurvedicmedicines company.

TIME LINE HISTORY

1884 : Birth of Dabur1896 : Setting up manufacturing plant

Early1900s : Ayurvedic medicines1919 : Establishment of research laboratories
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1920 : Expands further1936 : Dabur India (Dr. S.K. Burman) Pvt. Ltd.1972 : Shift to Delhi1979 : Sahibabad factory / Dabur Research

Foundation1986 : Public Limited Company1992 : Joint venture with Agrolimen of Spain1993 : Cancer treatment1994 : Public issues1995 : Joint Ventures1996 : 3 separate divisions1997 : Foods Division / Project STARS1998 : Professionals to manage the Company

2000 : Turnover of Rs. 1,000 crores 2003: Dabur demerges Pharma Business

2005 : Dabur aquires BalsaraDabur announces Bonus after 12 years

2006 : Dabur crosses $2 Bin market Cap, adoptsUS

GAAPApproves FCCB/GDR/ADR up to $200

million 2007 : Celebrating 10 years of RealForay into organized retail

Dabur Foods Merged With Dabur India2008 : Acquires Fem Care Pharma

2009 : Dabur Red Toothpaste joins 'BillionRupee Brand' club

2010 : Dabur makes its first overseasacquisition Dabur acquired 100% equity in Namaste Lab

Dabur Chyawanprash Launched Orange & Mango

FlavoursDabur Amla Hair Oils enters Limca Book of Records

2011 : Dabur enters professional skin care marketDabur launches its first-ever online shopping portal-www.daburuveda.com

Dabur India acquires 30-Plus from Ajanta Pharma
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Business portfolio of Dabur

PERSONAL CARE:-Dabur has awide range of personal care products and

some products as Dabur amla hair oil,vatika sampoo, dabur gulabari, uveda

etc.

HEALTH CARE :-Dabur chyawanprash,Dabur Shwaasamrit, Dabur Pilochek, Dabur

heal-ek, Hajmola Candy, PudinHara,Dabur Blood Purifier etc.


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Home care &Food products:-

Tomato ketchup

Lemoneeze

Capsico

Cornflour Pineapple slice

Fruit cocktail

Tomato puree

Real juice segment

Real

Active

burrst

Introduction to Dabur

FOUNDER AND LEADERS

Founding Thoughts:"What is that life worth which cannotbring comfort to others"

The story of Dabur began with a small, but visionaryendeavour by Dr. S. K. Burman, a physician tuckedaway in Bengal. His mission was to provide effectiveand affordable cure for ordinary people in far-flung

villages. With missionary zeal and fervour, Dr.Burman undertook the task of preparing natural curesfor the killer diseases of those days, like cholera,malaria and plague.

Soon the news of his medicines traveled, and came to be known. as thetrusted 'Daktar' or Doctor who came up with effective cures. And that ishow his venture Dabur got its name - derived from the Devanagrirendition of Daktar Burman.Dr. Burman set up Dabur in 1884 to produce


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and dispense Ayurvedic medicines. Reaching out to a wide mass of people who had no access to proper treatment. Dr. S. K. Burman'scommitment and ceaseless efforts resulted in the company growing froma fledgling medicine manufacturer in a small Calcutta house, to a

household name that at once evokes trust and reliability.

Dabur india ltd. Is the fourth largest FMCG company in india with therevenues of us$ 750 million (3390 crore) and market capitalization ofus$ 3.5 billion (over RS 16000 crore)building on a legacy of quality andexperience of over 125 years. dabur operates in key consumer productscategories like hair care, oral care, health care, skin care, home care &foods.

DISTRIBUTION CHANNEL

Through the nineties, the FMCG markets grew at almost15% per annum in value. Suddenly, in 2000

FMCG market growth stalled and then declined for thenext four years. The rapid opening up of the economy resulted

in many new avenues of expenditure for the consumersgrowing income. A sharp drop in interest rates from 18% to 8%led to explosive demand for consumer durables like whitegoods, two wheelers and automobiles. Mobile phone ownershipand usage exploded due to its amazing lifestyle andconvenience benefits as well as lower prices. Entertainment,leisure and travel sectors also boomed.

The lure of new avenues of expenditure in products andservices led to consumers restricting their spending on FMCG.

Consumers downgraded to lower priced substitutes fromhigher quality brands. As a result of this shift in spendingpatterns, the FMCG market declined in value in the last fouryears creating a major challenge for growth.

The FMCG sector has had a much better time in recentmonths, with market showing signs of broad revival. Itaccounts for about 6.4% of total market capitalization, and isup, compared to 6.1% in December04. The situation continuesto be tough in the home and personal care segments. Rising

raw material costs in the petro-based intermediaries used inshampoos and detergents have resulted in cost pressures and


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a competitive market means companies have not been able topass on these costs fully to consumers through price hikes.

The FMCG sector is witnessing demand growth again,driven by improving reach, organized retail and innovative

channels, higher usage driven by affordability and risingincomes driving aspiration levels.As a result, we see an improvement in sales growth for

the FMCG industry.

Consumer Demographics & Buying Patterns of IndianConsumers

FMCG is one sector which caters to the daily and more

basic needs of consumers and therefore dont have a chanceto run out of focus. From oral care products to packed food todetergents, soaps, mosquito coils, etc, are the variouscategories of products that FMCG market makes available tolakhs of consumers across the country. Initially, Indian buyerswere a bit conservative partly due to lesser disposable incomeand partly due to fewer competitive and more variety ofproducts. But since almost a decade, brands like Pepsodent,Pepsi, Coke, Mortein, various ITC brands, Dabur products, P &

G products, etc, have made a stern attempts in providinghigher quality products with relatively competitive prices,making Indian consumer enjoy brands which deliver highquality and adhere to global standards. The plethora of suchbrands was thrown open to Indian consumers during 1990swhich witnessed a rise and growth in the FMCG industry. Butfrom 2000 onwards a there has been a negative growth of thisindustry. The reasons are manifold; firstly, yesteryearsamenities started becoming necessities like, mobile phones,cars, branded clothes, accessories, etc. Secondly, thedisposable income of average Indian consumer rose sharplywithin the past 5 year and finally, availability of variousfinancial aides made every reasonable and expensivepurchase, easy thereby giving the Indian consumers anunlimited exposure to experience the same.But since December04, the sales of various brands belongingto key players and the overall FMCG industry performancehave picked up and the intense sales promotional efforts, cutthroat competitive strategies, stronger distributional effortshave helped various brands penetrate deeper into the markets


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and increased sales. Today, rural Indian consumers market hasby far become the highest revenue generator for many of theFMCG product companies and availability of a wide variety ofrange has allowed todays Indian consumer to analyze and

judge each product accurately and make an ideal purchasedecision.

Mechanics of Distribution Channels of Sector

The supply chain of products in the FMCG market in Indiais one of the longest supply chains an industry could really

have. There are as many as 5 levels of intermediaries involvedin the entire supply chain through which a product passesbefore reaching the end consumer.

What has been observed is that even though these FMCGcompanies are big multinationals and Indian but face a majorchallenge of making their products available in the market inthe right quantities and in the right time. This is simplybecause these companies dont really have a wide network ofsales agents and other force which is required and is ideal for

catering their products to the markets. This aspect is takenover by distributors, wholesalers and retailer whose marginson these products actually double the price of these productswhen a final consumer buys it. The margins kept by theseintermediaries range from 2% to 5%.

The products in this industry are transported frommanufacturing units via c & f agencies or warehouse todistributors who further sell the same to wholesalers orstockiest who finally sell it to the retailers in the market. Theseproducts are transported either via roadways or railways withinthe domestic markets and normally dont take more than aweek to reach the retailers. FMCG products are normally a highvolume ball game and products have to essentially beavailable in the market at all given points of time and at allgiven points of purchase and therefore the distributionactivities are highly volatile and dynamic. The supply ofproducts takes place virtually on a daily basis in fixed quotasor otherwise, to retailers as per their requisitions and theanticipation of demand and the performance of products in therecent past. All such criteria are taken into consideration


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before the quantum of products being dispatched to the nextlevel of intermediary. Since its a volume game, manufacturersmake all possible efforts to boost sales and promote theirdistributors to earn more and more orders from the retailers

and wholesalers. A close check is maintained on the flow of theproducts on a daily, weekly, fortnightly and monthly basis todetermine the trend in the business and flow of products andconsumption. This activity also helps to find out drawbacks ofthe distribution system, if any, and rectify them within time.

DABUR

DISTRIBUTORS

WHOLE SELLER

RETAILER

CUSTOMER OR CONSUMER

Via C & Fagencies orwarehouse


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FIVE LEVEL DISTRIBUTION CHANNEL OF

DABUR

COMPANY Report- Dabur

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