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Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the by lanes of Calcutta way back in 1884 as an Ayurvedic medicines company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India.
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The founder, Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera and Plague were the common diseases. He was a physician who brought Ayurvedic medicines to the masses of Bengal. Initially established as a proprietary firm for the manufacture of chemicals and ayurvedic drugs it was later on 19th November 1930 incorporated as private limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri P.C.Burman in the name of Dr S.K.Burman Pvt.Ltd. to expand the operations by setting up production facilities at Garia and Narendrapur, West Bengal and Daburgram, Bihar. Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st July1985 and the amalgamated company was renamed DABUR INDIA LIMITED.
For the past 125 years, they have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. Through their comprehensive range of products, they cater to all consumers, in all age groups, across all social boundaries. And this legacy has helped them develop a bond of trust with the customers.
“Dedicated to the health and well being of every house hold.”
Dabur is a company with a set of established business values, which direct it’s functioning as well as all its operations. The guiding forces for Dabur are the words of its founder, Dr.S. K. Burman, “what is that life worth that cannot give comfort to others.” The Company offers its customers, the products to suit their needs and give them good values for money. The company is committed to follow the ethical practices in doing business. At Dabur, nature acts as not only the source of raw materials but also an inspiration and the company is committed to product the ecological balance.
Journey so far…http://www.dabur.com/pages/by4hm8ur/116/dabur_build.jpg
1884 The Birth of Dabur
1972 The company shifts base to Delhi from Kolkata
1986 Registered as Public Limited Company
1994 Listed on the Bombay Stock Exchange
1998 Professional team inducted to run the company
2000 Crosses Rs. 1000 Crore Turnover
2003 Pharmaceutical Business de-merged to focus on core FMCG
2004 Profit exceeds Rs. 100 Crore
2005 Acquire Balsara strengthening Oral care & provided entry into Homecare segment
2006 Dabur figures in Top 10 Great Places to Work
2007 Dabur ranked among ‘Asia’s best under a Billion’ enterprises by Forbes
2008 Acquired Fem Care Pharma entering the mainstream Skin care segment
2009 Strong growth momentum continued in spite of general economic downturn. Also Dabur Red Toothpaste becomes Dabur’s 9th Billion Rupee brand.
2010 Touched US$4 billion market cap. Overseas acquisition, Hobi Group, Turkey to strengthen presence in MENA and adjacent regions.
Dabur India Limited has marked its presence with significant achievements and today commands a market leadership status. Their story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to their partners and stakeholders.
Leading consumer goods company in India with a turnover of Rs. 3417 Crore (FY10)
3 major strategic business units (SBU) – Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD)
3 Subsidiary Group companies – Dabur International, Fem Care Pharma and newu and 8 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).
17 ultra-modern manufacturing units spread around the globe
Products marketed in over 60 countries
Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India
Dabur India Ltd’s manufacturing activities spanning various consumer products categories are carried out in 17 factories spread across India and abroad.
Dabur has 11 manufacturing facilities in India, out of which two main units are at Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal).
Dabur’s Business Structure:
Note: Percentage share in revenue based on FY10 Financials ; Femcare included in Consumer Care Division
Consumer Care Division (CCD):
Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods.
Dabur – Ayurvedic healthcare products
Vatika – Premium hair care
Hajmola – Tasty digestives
Réal – Fruit juices & beverages
Fem – Fairness bleaches & skin care products
9 Billion-Rupee brands: Dabur Amla, Dabur Chyawanprash, Vatika, Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and Dabur Honey
Strategic positioning of Honey as food product, leading to market leadership (over 75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.
Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row
Hajmola tablets in command with 60% market share of digestive tablets category. About 2.5 crore Hajmola tablets are consumed in India every day
Leader in herbal digestives with 90% market share
Category-wise Share of CCD :
Consumer Care Categories:
Hair Oil Shampoo
Source: Value share-ACN June, 09 Value Share-ACN Mar, 10
Value Share-ACN March, 2010
Value Share-ACN March, 2010
Company Est. Mar, 2010 for Fruit Juice categoryC:UsersUser 11Desktopuntitled2.bmpC:UsersUser 11DesktopimagesCAXZ8F24.jpgC:UsersUser 11Desktopimages.jpgC:UsersUser 11DesktopPG-IIIRKSDabur Real- Mrktg Planburrst.jpgC:UsersUser 11Desktopuntitled6.bmp
*Company estimates; Includes Fem skin care portfolioC:UsersUser 11AppDataLocalMicrosoftWindowsTemporary Internet FilesContent.Worddabur-health_06.jpg
Value Share-ACN March, 2010C:UsersUser 11DesktopimagesCALG7F5C.jpgC:UsersUser 11AppDataLocalMicrosoftWindowsTemporary Internet FilesContent.Worddabur-personal_08.gifC:UsersUser 11Desktopdabur-digestive_09.gif
Value Share-ACN Mar,2010 for Aerosols category OdonilOdomosOdopicSani Fresh
Consumer Health Division (CHD)
Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use formats. Dabur’s Consumer Healthcare business is the Company’s oldest business, and today has a growing portfolio of OTC products to address a variety of problems ranging from Women’s Health to Baby Care and Cough & Cold to Rejuvenation.
Has more than 300 products sold through prescriptions as well as over the counter
Major categories in traditional formulations include:
– Asav Arishtas
– Ras Rasayanas
– Medicated Oils
Proprietary Ayurvedic medicines developed by Dabur include:
– Nature Care Isabgol
Division also works for promotion of Ayurveda through organised community of traditional practitioners and developing fresh batches of students
The Consumer Health Division, CHD witnessed a growth of 10.2% during the quarter led by ethical portfolio which grew by 14.5%. In OTC, Pudin Hara grew by 12.8%. The Pudin Hara portfolio has been extended by launching Pudin Hara Lemon Fizz in the acidity segment.
International Business Division (IBD)
International Business Division (IBD) caters to the health and personal care needs of customers across different international markets, spanning the Middle East, North & West Africa, European Union and the US with its brands Dabur & Vatika
Growing at a CAGR of 33% in the last 6 years and contributes to about 20% of total sales
Leveraging the ‘Natural’ preference among local consumers to increase share in perosnal care categories
High level of localization of manufacturing and sales & marketing
Dabur’s International business:
The Company’s key markets for international business are the Middle East, Africa, UK and South Asian geographies, with manufacturing plants located across regions. The Company also has a private label business in USA and UK, along with Guar gum exports, which takes place from its Indian plants.
The Company’s International Business Division recorded an impressive sales growth of 26.3% from Rs.477.0 crore in 2008-09 to Rs.602.5 crore in 2009-10, contributing to 18% of overall consolidated sales. The operating margins of the business improved significantly during the year reflecting the strength of the brands even though the external conditions were tough and the environment was plagued by recessionary trends, currency depreciations and demand contraction.
Robust sales growth in international markets was possible due to:
– Strong Brand portfolio positioned on herbal and natural platform
– Aggressive new product launches and brand extensions
– Geographical expansion into new markets
– Strong Sales and Distribution network
– Strong manufacturing backbone and expansion of own manufacturing in key geographies
– Localised and efficient supply chain.
The company has built strong and robust brand architecture with two mega brands for international business across all geographies – Dabur and Vatika and most of its offerings are under either of these two brands.
– Dabur Amla franchise achieved a growth of 38% along with all the extensions.
– Basis Nielsen Retail Audit in KSA, Dabur Amla Hair Oil with a market share of 34.2% is the biggest brand in the hair oil segment. Dabur Amla Gold has market share of 6.8% while Dabur Amla Jasmine is at 5.1%.
– The Amla franchise has now been extended to the Hair Cream Category with the launch of Dabur Amla Hair Cream. It has become the fastest growing brand in the Hair Cream segment notching up sales of more than INR 13 Crore in first year of launch.
– There has been a robust growth of 36% in the Vatika franchise which includes Vatika Enriched Hair Oil, Coconut Hair Oil, Hair Creams and Hamam Zaith. Vatika brand is now worth Rs.185 Cr built from a negligible base over the last four years in the Arab belt.
– There was a successful re- launch of Shampoos and Conditioners, launch of one more variant in Hamam Zaith and re-launch of Vatika Coconut Hair Oil.
– Light hair oil range of Vatika Hair oils registered 51% growth in MENA.
– Vatika Hair Cream is now an INR 64 Cr brand in MENA. Vatika Hair Cream gained 370 bps in market share and becoming 12.7% of the market in volume terms. It grew by 44% in volume terms over LY in a category that has remained flat. Vatika Hair Cream is now the no. 2 player in Modern Trade with a 15.6% volume mkt share despite aggressive competition from established brands.
Vatika DermoViva – a new sub- brand launched for the Personal Wash and Skin Care segment had its first launch in the Bar Soap category and has managed to create consumer equity in a category dominated by strong MNC players.
– The FEM brand was strengthened in the overseas markets through ATL and BTL inputs which saw the brand grow by 100% in just nine months of operation since the takeover.
Dabur’s International Market:
The key contributing markets/ regions to the International Business growth have been GCC, Egypt, Nigeria, Algeria, Morocco, Libya, Yemen, Syria and South Africa.
GCC, the largest market in the International Business Division and despite being a mature market, has registered a strong growth of 42% over last year fuelled by innovations and new product launches in the Hair Care, Personal Wash and Oral Care segments.
Dabur Egypt Limited has witnessed another spectacular performance with 30% growth in sales.
African Consumer Care, Nigeria has grown by 17% over last year in local currency terms, aided by strong growth of Dabur Herbal Toothpaste and Dabur Herbal Gel in the Oral Care category.
Asian Consumer Care, Pakistan has grown by 26% in revenue with Hajmola and Dabur Amla emerging as the two strong brands for the region.
Dabur International`s UK Branch has seen a 23% growth over previous year which has been the highest growth rate for this region in the last 8 years.
Markets of North Africa, Levant and Yemen have seen an impressive performance with 49% growth over previous year.
Asian Consumer Care, Bangladesh, has performed well with a growth of 47% during the fiscal 2009-10. The growth has been led by increased distribution penetration and focussed brand approach.
Dabur Nepal Pvt Limited which manufactures fruit juices and also caters to local consumer market in Nepal recorded impressive growth of 26% in its sales to the domestic market of Nepal.
Dabur recently has acquired Turkey-based personal care company Hobi Kozmetik Group in a deal at Rs. $ 69 million. The company, in a move to expand its presence across Middle East and North African region, has made the acquisition. Hobi Kozmetik is a market leader in the hair gel category with 35% market share. Company’s products sold under ‘Hobby’ and ‘New Era’ brands across 35 countries. The transaction is expected to be completed by Q3 of FY11. Dabur, which is the largest FMCG in India with large market capitalization, has huge investment and expansion plans as the company aims to expand its foreign sales.
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Exports from India:
The company also exports guargum and private label oral care products from India. During 2009-10 the company recorded Guargum exports to the tune of Rs.43.3 crore as compared to Rs.48.3 crore in the previous year. The sales were lower due to weak global demand and recessionary environment.
Exports to USA recorded impressive growth with sales increasing to Rs.38.4 Cr in 2009- 10 versus Rs.27.6 in 2008-09 reflecting a growth of 39% despite the recessionary environment in developed markets. The US sales comprise Private Label and Ethnic business. Key markets in USA and Europe contributed to the growth. Innovative product developments
in Oral care private label- such as Pro-age, Sensitive and Herbal toothpastes were launched. Ethnic Sales in USA and Canada also performed well recording 80% growth albeit on a low base. Various new products were successfully launched in the market and penetration of
mainstay Dabur products like Hair Oils and Chyawanprash into Canadian mainstream retail chains such as Walmart was achieved.
58% Real and Active
Fruit Drinks (coolers)
Frooti And Maaza
Hair oil Coconut base
HLL and P&G
Hair care (overall)
HLL, P&G and Himalaya
Himani, Zhandu and Himalaya
Himani, Hamdard and local Players
Paras and local players
Entering rural market:
Dabur should target more towards the rural market and tier 2 and tier 3 cities. These markets have traditionally been loyalists to Dabur’s ayurvedic range of personal products.
Tapping rising global demand of herbal and Ayurvedic products:
There is a new trend in the global market that has increased the demand of herbal/ ayurvedic products. This is the time when Dabur should relaunch itself as a key international player in the global arena.
Also in the domestic market, there is a huge scope for Dabur to launch niche/luxury segment products catering to specific target groups.
i) Development of new markets for Products & Services:
New avenues for growth were opened up with expansion into the new markets of Cambodia, Philippines, Belarus, Gambia and Bolivia. The Sales & Distribution infrastructure has been augmented by appointing new distributors in CIS, Mozambique, Guinea and Rwanda. Local resources have been deployed in key markets of Yemen, Syria, Kuwait, Malaysia and Tanzania to strengthen the S&D structure.
ii) Entering US Market:
The Company is also trying to break into the US Market where it is attempting to build a full fledged distribution channel. It is also worthwhile to mention that some of its products like Chyawanprash are selling in the US via Indirect channels. But this task is going to be a difficult one since US laws are tough and the preferences of consumers also vary greatly than that of markets which are usually catered to by Dabur.
iii) Target- South Africa:
In Africa the company is looking at markets like South Africa where it currently is not present. It already has a personal care unit in Egypt and a toothpaste unit in Nigeria. Dabur can do well in these markets since the profile and preferences of these consumers are very much like India.
iv) Export Plans:
The focus, going forward, is to continue expanding the Company’s presence across geographies and to exploit the opportunities that exist in existing and potential segments. The Company will continue to invest in brand building, manufacturing and human capital in order to maintain and improve the existing robust growth path.
After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has launched another plan for 2010. The main objectives are:
Doubling of the sales figure from 2006
The new plan will focus on expansion, acquisition and innovation. Although Dabur’s international business has done well – growing by almost 29 per cent to Rs.292 crore in 2006-07, plans are to increase it by leaps and bounds.
Growth will be achieved through international business, homecare, healthcare and foods.
Southern markets will remain as a focus area to increase its revenue share to 15 per cent.
With smoothly sailing through its previous plans, this vision seems possible. Time and again, Dabur has made decisions that have led to its present position. However, if Dabur could be more aggressive in its approach, it can rise to unprecedented levels. To conclude, this is a 10 year performance table from Dabur’s website.
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