Entrepreneurship

Project

Made by –
Mansi Dhamija
BBS – V th Semester
Roll. No. - 1230
 Acknowledgement

In the following project, my major effort has been to present the

information about the Dabur India Ltd. and its success as an
entrepreneurial venture.

I express my sincere thanks to my teacher Miss Astha Kanjlia

and my friends for guiding and encouraging me by providing
useful suggestions to prepare this project throughout every
stage, since the assignment of topic till the completion.
 Table of Contents

S. Topic
No.

1 Introduction
2 The Story
3 Product Portfolio
4 Strategic Intentions
5 What sets Dabur apart
6 The Flip Side
7 Ten Year Highlights
8 Vision 2010
 DABUR – Celebrating 125 years of health and
well being

Introduction

Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of
about US$600 Million (over Rs 2834 Crore) & Market Capitalization of over
US$2.2 Billion (close to Rs 10,000 Crore). Building on a legacy of quality and
experience for over 125 years, Dabur is today India’s most trusted name and the
world’s largest Ayurvedic and Natural Health Care Company.

Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship
brands with distinct brand identities -- Dabur as the master brand for natural
healthcare products, Vatika for premium personal care, Hajmola for digestives,
Réal for fruit juices and beverages and Fem for fairness bleaches and skin care
products.

Dabur today operates in key consumer products categories like Hair Care, Oral
Care, Health Care, Skin Care, Home Care and Foods. The company has a wide
distribution network, covering over 2.8 million retail outlets with a high penetration
in both urban and rural markets.

Dabur's products also have a huge presence in the overseas markets and are
today available in over 60 countries across the globe. Its brands are highly
popular in the Middle East, SAARC countries, Africa, US, Europe and Russia.
Dabur's overseas revenues stands at over Rs 500 Crore in the 2008-09 fiscal,
accounting for about 20% of the total turnover.
The 125-year-old company, promoted by the Burman family, had started
operations in 1884 as an Ayurvedic medicines company. From its humble
beginnings in the bylanes of Calcutta, Dabur India Ltd has come a long way
today to become one of the biggest Indian-owned consumer goods companies
with the largest herbal and natural product portfolio in the world. Overall, Dabur
has successfully transformed itself from being a family-run business to become a
professionally managed enterprise. What sets Dabur apart from the crowd is its
ability to change ahead of others and to always set new standards in corporate
governance & innovation.

The products of Dabur are marketed in more than 50 countries worldwide. The
company has 2 major strategic business units (SBU) - Consumer Care Division
(CCD) & Consumer Health Division (CHD), and 3 Subsidiary Group companies -
Dabur Foods, Dabur Nepal and Dabur International. Dabur International has 3
step down subsidiaries - Asian Consumer Care in Bangladesh, African
Consumer Care in Nigeria and Dabur Egypt.
 The story behind one of the most successful
entrepreneurial ventures of India

1884 – Birth of Dabur

Dabur was born in a small Calcutta Pharmacy in 1884. It was founded by Dr.
S.K. Burman, who was trained as physician in Bengal . He was a visionary
entrepreneur with a mission to provide effective and affordable cure for ordinary
people in far-flung villages.
Soon, he started preparing ayurvedic or natural remedies for diseases such as
Cholera, Malaria and Plague. Due to his natural and cheap remedies, he became
to be known as 'Daktar'. And that is how his venture Dabur got its name - Daktar
Burman(Da-Bur).

1896 – Setting up a manufacturing unit

With the growing popularity of Dabur products Dr. Burman set up a

manufacturing plant for mass production of formulations.

Early 1900s – Ayurvedic Medicines

In the early 1990s Dabur entered the specialized area of ayurvedic medicines, for
which standardized drugs were not available in the market

1919 – Establishment of research laboratories

In 1919 research laboratories were set up to develop scientific checks and mass
production of traditional Ayurvedic medicines
1920 – Expands Further

Dabur expanded further with new manufacturing units in Narendrapur and

Daburgram. The distribution of Dabur products spread to Bihar and other North
Eastern states.
1936 – Dabur India Pvt Ltd.

In 1936 Dabur became a full fledged company

1972 – Shift to Delhi

In 1972 Dabur Pvt Ltd shifted its operations to Delhi and set up a new
manufacturing plant in Faridabad

1979 – Sahibabad factory/ Dabur Research Foundation

Commercial production started in the Sahibabad Factory which is one of the

largest and best equipped facilities for Ayurvedic medicines
Dabur research foundation was also set up to research in the area of healthcare.

1986 – Public Limited Company

Dabur became a Public Ltd. Company in 1986 after a reverse merger with
Vidgum Ltd.

1992 – Joint Venture with Agrolimen of Spain

Dabur entered into a Joint Venture with Agrolimen of Spain to manufacture and
market confectionary items in India and thus began a new chapter of strategic
partnerships

1993 – Cancer Treatment

The company developed Dab 10, an intermediate for anti-cancer drug namely
Taxol.
The Company undertook to implement a phytopharma project at Ghaziabad, U.P.
This unit would manufacture a specialised anti cancer drug Taxot apart from
cancer drug and
Terfenadine, a non sedative anti allergic drug.

1994 – Public Issue

In 1994 Dabur raised its first public issue. Shares were issued at high premium
due to public confidence in the company and the issue was oversubscribed upto
21 times.

1995 – Joint Ventures

Dabur entered into joint ventures with OSEM of Israel for food and Bongrain of
France for Cheese and other dairy products

1996 – 3 separate divisions

For better management three separate divisions were created on the basis of
their product mix – Health Care Products division, Family Products division and
Dabur Ayurvedic Specialties limited

1997 – Food Division/ Project STARS

Dabur entered full scale in the nascent product food market with the creation of
Foods Division project – STARS – Strive To Acheve Record Successes.

1998 – Professionals to manage the company

For the first time professionals were inducted to manage the company

2000 – Turnover of Rs. 1000 crore

Dabur established its market leadership status with a turnover of

Rs. 1000 crore. With Dabur now in the league of big corporate businesses the
small entrepreneurial venture of Dr. S.K. Burman had sure enough made its
mark.

2003 – Dabur demerges Pharma Business

Dabur India approved the demerger of the pharmaceutical business from the
FMCG business into a separate company to provide greater focus to both the
businesses. The fourth Largest FMCG, Dabur India Ltd tied with Free Markets
Inc. for using leading edge technologies to execute online markets for its
procurement needs.

2004

Dabur set to acquire Egyptian hair oil brand Touch

Dabur India gets Tetra Pak award
Dabur India inks pact with Accenture for outsourcing
2005 – Dabur acquires Balsara

Completed the acquisition process of Balsara Hygiene Products Ltd &

Besta Cosmetics Ltd on April 16, 2005.

2006 – Dabur India crossed $ 2 Billion in market capitalization

2007 – Dabur Foods merged with Dabur India

2008 – Dabur acquired Fem Care Pharma

2009
Dabur Red Toothpaste joins ‘Billion Rupee Brand’ Club
Dabur Red Toothpaste became Dabur’s 9th Billion Rupee Brand. It crossed the
billion rupee turnover within five years of its launch.
Product Portfolio of Dabur
Mr. Sunil Duggal took over as the Chief Executive Officer of Dabur India Limited
in June 2002, holding reins of the organization he joined in 1995.

Given below is the Product Portfolio of Dabur (Consumer Care Division 2006):

Product Products
Category
Hair oil Vatika, Amla, Sarso
CHD
(Anmol coconut)
(Consumer
Health Shampoo Vatika heena conditioning, root-
Division), strengthening
dealing with Anmol-natural shine, silky
classical Baby & Skin Vatika fairness, Gulabari, Vatika
Ayurvedic Care fairness face pack
medicines Janmaghutti, Olive oil, Gripewater,
Has more Dabur lal tel
than 250 Digestive Hajmola range, Hingoli, Pudin hara
products
sold Health Chyawanprash, chyawanshakti,
through Supplements Dabur Honey, Glucose
Oral Care Babool (rural market), Meswak
(unani method), promise, Lal paste,
Binaca, Promise
Home Care Odomos, Odonil, Odopic, Sanifresh
prescriptions as well as over the counter major categories in traditional
formulations include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated
Oils
Proprietary Ayurvedic medicines developed by Dabur include: - Nature Care
Isabgol - Madhuvaani - Trifgol

Dabur is also the owner of IPL Team Kings XI Punjab

Recently, Dabur has launched its New u stores. The mission is to offer the Indian
customer the most comprehensive range of global beauty, health and wellness
brands and products, combined with an unparallel product expertise, advice and
customer care.

Sundesh - Sundesh is a non – profit organization engaged in carrying out

welfare activities with the aim of improving the quality of life of the people in rural
areas. Mr. Pradeep Burman is the founder chairman. Sundesh is majorly
involved in Health Care, Education and other socio-economic activities.

Given Below is a Segment Wise Competitor list:

Category Dabur’s Main Competitors

Share
Fruit Juice 58% Real Tropicanna
and Active
Fruit Drinks 1% Coolers Frooti And Maaza
(coolers)
Hair oil Coconut 6.4% Vatika HLL
base
Shampoo Vatika 7.1% HLL and P&G
Hair care 27% HLL, P&G and
(overall) Himalaya
Chyawanprash 64% Himani, Zhandu and
Himalaya
Honey 40% Himani, Hamdard
and local Players
Digestives 37% Paras and local
players
Strategic intentions of Dabur

• Focus on growing our core brands across categories, reaching out to new
geographies, within and outside India, and improve operational
efficiencies by leveraging technology

• Be the preferred company to meet the health and personal grooming

needs of our target consumers with safe, efficacious, natural solutions by
synthesizing our deep knowledge of ayurveda and herbs with modern
science

• Provide our consumers with innovative products within easy reach

• Build a platform to enable Dabur to become a global ayurvedic leader

• Be a professionally managed employer of choice, attracting, developing

and retaining quality personnel

• Be responsible citizens with a commitment to environmental protection

• Provide superior returns, relative to our peer group, to our shareholders

What sets Dabur apart?
Dabur has come a long way and is now ranked 25th in the list of India’s 100 most
valuable brands.

Some of its other achievements are:

 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

 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

The vision statement of Dabur reads as ―dedicated to the health and well being
of every household‖. The organization which is celebrating its 125th anniversary
currently religiously followed this philosophy since inception. This dedication can
be attributed to the culture and values that were institutionalized by its visionary
leader; Dr. S.K.Burman.He started the enterprise with a mission to provide
effective and affordable cure to ordinary people in far-flung villages and this
drive, fervor, zeal was inherited by his followers. His commitment and ceaseless
efforts resulted in the company growing from a fledgling medicine manufacturer
in a small Calcutta house, to a household name that at once evokes trust and
reliability.

Every business starts as an entrepreneurial venture and continues to remain so if

it constantly strives to innovate itself.

Dabur is a classic example of one such organization which has continuously

forayed upwards on the path of development. An inspiring success story like that
of Daburs, requires more than just a vision. It requires the entrepreneur to have
the ability to inculcate his vision in all his employees and others working with him.
It requires the entrepreneur to be able to instill his strong sense of values which
drive his mission, among his fellow workers.

Dabur is one of the prime examples of an organization driven by a strong set of

values

Vision

"Dedicated to the health and well being of every household"

Principles

OWNERSHIP

“This is our company. We accept personal responsibility, and accountability to

meet business needs.”

PASSION FOR WINNING

“We all are leaders in our area of responsibility, with a deep commitment to
deliver results. We are determined to be the best at doing what matters most.”
PEOPLE DEVELOPMENT

“People are our most important asset. We add value through result driven
training, and we encourage & reward excellence.”

CONSUMER FOCUS

“We have superior understanding of consumer needs and develop products to

fulfill them better.”

TEAM WORK

“We work together on the principle of mutual trust & transparency in a boundary-
less organization. We are intellectually honest in advocating proposals, including
recognizing risks.”

INNOVATION

Continuous innovation in products & processes is the basis of our success.

INTEGRITY

“We are committed to the achievement of business success with integrity. We

are honest with consumers, with business partners and with each other.”
Another quality of a successful entrepreneur is his ability to innovate. What sets
Dabur apart from any other organization is its constant effort to innovate. Since,
the very beginning, Dabur has been a very creative organization. What started as
a small pharmacy in Calcutta is now the fourth largest FMCG in India. Right from
its birth in 1884, Dabur has entered into numerous fields from healthcare
products to juices and snacks to insurance. Its recent takeover of Fem which is a
successful women’s skincare brand is another example of its ongoing innovation.
It has also recently launched a new range of skincare products for women -
Uveda

Dabur has always adapted itself to the changes taking place in the environment.
Dr. S.K. Burman opened up manufacturing plants and forayed into other states
when he realized that the demand for his medicines was increasing. It is thus, the
ability of an entrepreneur to see change and adapt to it that sets him apart from
others. Quoting a more recent example, Dabur decided to revamp its brand
image. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani
Mukherjee and Virender Sehwag for endorsements. New packaging and
advertising campaign saw the sales of Chyawanprash grow by 8.5 per cent in
2003-04.
The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree
was replaced with a new, fresh Banyan tree.

The logo was changed to a tree with a younger look. The leaves suggesting
growth, energy and rejuvenation, twin colors reflecting perfect combination of
stability and freshness, the trunk represented three people raising their hands in
joy, the broad trunk symbolized stability, multiple branches were chosen to
convey growth, and warmth and energy were displayed through the soft orange
color. ‘Celebrating Life’ was chosen as a new tag that completely summarized
the whole essence.

The culture at Dabur gives full autonomy to its employees. Various training and
development programs like Young Manager Development Program, Prayas,
Leading and Facilitating Performance, Campus to Corpora and a Balanced
scorecard approach to performance evaluation, helps employees realize their
potential.

Recently, Dabur has adopted an innovative HR program of offering ESOPs to

new engineering and management trainees at the time of joining. Also in 2005,
Dabur gave Bonus to its employees after 12 years. This boosted the employee
morale further.

Dabur was listed as a “Great Place to Work”, in a survey conducted by Grow

Talent & Company and Great Place to Work Institute, USA. Dabur was listed as
the 10th “Great Place to Work”. The results were published in Business World
dated February 2006.

Successful entrepreneurs thrive on competition. With increasing competition from

companies like HUL, P&G, ITC, Himalaya, etc., Dabur realized the need to
revamp its strategies. Following its plans, Dabur made significant changes in the
time period 2002-2007 like brand rejuvenation, IT, HR and supply chain initiatives
etc.

Dabur has also been undertaking a host of energy conservation measures.

Successful implementation of various energy conservation projects have resulted
in a 13.8% reduction in the Company’s energy bill in the 2008-09 fiscal alone.
What was noteworthy was the fact that this reduction has come despite an 8-9%
volume increase in manufacturing, and an average 11.7% increase in cost of key
input fuels.

The Company is also continuously monitoring its waste in adherence with the
pollution control norms. In pursuance of its commitment towards the society,
efforts have also been initiated to conserve and maintain the ground water level.
The efforts include implementation of rainwater harvesting, which has delivered
encouraging results and has put the company on the path to becoming a Water-
Positive Corporation.

Dabur also initiated a Carbon Foot Print Study at the unit level with an aim to
become a carbon positive Company in years to come.

The host of measures – key among them being use of bio-fuels in boilers,
generation of biogas and installation of energy efficient equipment – helped lower
the cost of production, besides reduce effluent and improve hygiene conditions &
productivity.

Another interesting fact about Dabur was that till 1998 the management of the
company was in the hands of the Burman family. The ability to delegate is also
one of the important qualities of an entrepreneur. However, what is more
important is deciding the time till which the entrepreneurial venture needs to
nurtured with hands of its founder before it can be opened up to outside
professional help.

Employees are also a very important aspect of a successful entrepreneurship.

Renewing the commitment to Health Safety and Environment, Dabur has
formulated a policy focusing on People, Technology and Facilities. A dedicated
“Safety Management Team” has also been put in place to work towards the
prevention of untoward incidents at the corporate and unit level, besides educate
& motivate employees on various aspects of Health, Safety and Environment.
The Flip side

Over the last few years Dabur has been following the policy of increasing the
number of brands under it. Although, Dabur has been growing at the rate of 17%,
there is a school of thought that believes Dabur's choice may not be the best way
of ensuring future growth: too many segments will constrain it from scaling up
significantly to match increasing competition and that will bring down overall pace
of growth.
This is also evident from the fact that Dabur is not the category leader in any of
the consumer product categories where it has a presence: it is No. 4 in
shampoos, No. 3 in toothpastes and nowhere in the reckoning in toilet soaps.

In addition, indiscriminate use of the brand across price points may dilute the
brand equity
Ten Year Highlights

RS Crores

FY00 FY01* FY02** FY03 FY04*** FY05 FY06# FY07^ FY08 FY09

Operating Results:

Sales 982 1100 1200 1285 1236 1417 1757 2080 2396 2834

Other Income 34 19 12 7 9 9 13 26 34 47

EBITDA 128 137 144 162 164 217 300 376 443 517.3

EBITDA Margins (%) 13.0 12.5 12.0 12.6 13.3 15.3 17.1 18.1 18.5 18.3

Profit Before Tax (PBT) 81 85 82 106 124 176 257 319 384 445

Taxes 4 7 14 14 15 19 30 39 52 54

Tax Rate (%) 4.5 8.5 16.6 13.3 12.0 10.8 11.7 12.1 13.4 12.1

Profit After Tax (PAT) 77 78 64 85 107 156 214 282 333 391

PAT Margins (%) 7.9 7.1 5.4 6.6 8.6 11.0 12.2 13.5 13.9 13.8

Financial Position:

Fixed Assets (Net) 251 243 371 257 250 295 512 379 465 559

Current Assets, Loans &

412 393 504 522 340 408 471 640 774 951
Advances

Current Liabilities & Provisions 108 158 183 241 294 400 436 452 732 808

Net Working Capital 304 235 322 281 46 8 35 189 42 143

Days of Sales 113 78 98 80 14 2 7 33 6 18

Total Assets 609 558 705 640 433 543 624 670 749 1081

Share Capital 29 29 29 29 29 29 57 86 86 86.5

Reserves & Surplus 292 334 365 388 257 335 440 393 531 731

Shareholders Funds 320 362 393 417 286 364 497 480 618 818

Loan Funds 289 196 304 964 132 164 121 160 99 228

Total Capital Employed 609 558 705 640 433 543 624 670 749 1081

Return Ratios:

ROCE (%) 17.0 19.5 12.6 16.1 28.6 31.3 39.0 45.7 47.6 38.8

RONW (%) 24.7 22.0 16.6 20.6 38.1 43.5 46.1 61.3 55.3 48.4

Equity Share Data:

Earnings Per Share (Rs) 27.1 2.7 2.3 3.0 3.7 5.4 3.7 3.3 3.9 4.5

Dividend Per Share (Rs) 10.0 1.0 0.5 1.4 2.0 2.5 1.8 1.42 1.5 1.75

No of Shares (In Crs) 2.9 2.9 28.6 28.6 28.6 28.6 57.3 86.3 86.4 86.5

The report highlights the tremendous success of Dabur over the past
ten years.
Future Initiatives (VISION 2010)
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.

 Taking their retail (H&B stores) to the next level.

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.