Dabur is the market leader in consumer products based on the traditional Indian ayurvedic herbal system of medicine. It has a fairly well-diversified product profile.

It operates in the following consumer product categories: hair oil, health supplements (Chyawanprash and digestives), oral care, shampoos, baby care, skin care, home care, and foods (juices and cooking pastes).

Dabur’s core products, Chyawanprash (a health supplement), Dabur Amla Kesh Tel (herbal hair oil) and Hajmola (a digestive) dominate and have become generic in their categories, holding the majority market share in these segments.

Furthermore, Dabur has successfully demonstrated its ability to brand and market over-the-counter (OTC) products in new Ayurvedic segments such as cough syrups (for example, Honitus).

Dabur:Overview

Dabur: Key Milestones

1884•Dr. SK Burman started an Ayurvedic Pharmacy in Kolkatta

1972•The company shifted base to Delhi from Kolkata

1986•Registered as Public Limited Company

1994•Listed on the Bombay Stock Exchange

1998•Professionalized with Burman Family handing over day to management

2003•Pharmaceutical Business de-merged to focus on FMCG business

2004•International Business set up in Dubai to tap overseas opportunity

2005•Acquired Balsara strengthening Oral care & gaining entry into Home care

2006•Dabur Figured in Top 10 Great Places To Work

2008•Acquired Fem Care Pharma entering mainstream Skin care

2010• Overseas acquisitions -Hobi Group, Turkey andNamaste Laboratories, US

2011•Crossed Rs. 40 bn mark in annual revenues and Market Cap of US $4 billion.

Indian FMCG Market Segment

Baby Care2%

Household4%

OTC Products4%

Hair Care8%

Others5%

Fabric Care12%

Personal Care 22%

Food Products43%

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Budget to Budget Sectoral Indices Return:

Top 5 Gain (In %) Top 5 Fall (In %)

Financial Year 2011 - 2012

Category Analysis of Product Segment

India’s Product Market Share peer comparision :Robust & Growing

Category Analysis of Product Segment

India’s Product Market Share peer comparision :Robust & Growing

Dabur : Manufacturing facilities in tax-free zones

Threat Of Substitute Products

Threat Of New

Entrants

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Rivalry Among Existing Competitors

FMCG or Healthcare products esp. Ayurvedic, hardly have substitutes - so this threat is not very significant.

However, some product substitutes and similar products by competitors do exist.

Constantly re invent its existing product lines in order to cope up with the innovations of its competitors.

Advantages -125 year legacy, first mover, learning curve, brand loyalty, patents ,economies of scale

No significant entry barriers

Has increased dramatically due to – a wide range of available choices from competitors, both local and global

Dabur has to formulate strategy in such a manner to keep abreast with the increasing competition by improving the quality and reducing the prices over the period.

Very strong bond with the suppliers

Has a policy of accountability to stakeholders - be it customers, shareholders, employees or suppliers (who have a vested interest in making it all happen)

Key players and competitors of Dabur India currently are: Hindustan Unilever Ltd., Nestle India Ltd., Britannia Industries Ltd., Colgate Palmolive Ltd., Marico Ltd., Galaxo Smithkline consumer, Cadbury India ltd., Reckitt Benckiser Ltd., Procter & Gamble,Himani, Baidyanath and Zandu for Dabur Chyawanprash Marico, Keo Karpin, HLL and Bajaj for Vatika Hair Oil

Dabur has to constantly relook its strategy and keep reinventing and branding, in order to maintain and increase its market presence

Dabur: Porter’s Five Force Analysis

Dabur : Strategic Business Units

Consumer Care

Division

• FMCG  portfolio  comprising  four 

distinct  businesses: 

• Personal  Care

• Consumer  Health  Care

• Home  Care

• Foods

International Business Division

Catering  to  health  and  personal  care  needs  of  customers  across  different  international  markets  spanning  Middle  East  and  Africa,  South  Asia,  EU  and  U.S.

Consumer Health

Division

Range of ethical and OTC products  that  deliver  the  age‐old  benefits  of  Ayurveda in  modern  ready‐to‐use  formats

Note: Percentage share in revenue based on FY11 Financials ; Hobi and Namaste included in International Business Division

68%

22%

8%

Dabur: Robust Distribution Network

Factory

C&FA

Super Stockist

Institutions & Modern trade

Wholesalers Sub Stockist

RETAIL TRADE

CONSUMERS

(Carry & Forward Agents)

Stockist

Direct + Indirect Reach covering 2.8 Mn Retail Outlets

Team of scientists includingAyurvedic doctors, Pharmacists,Agronomists, Botanists, TissueCulture specialists, etc.

Strong New Product Development•Ayurvedic Medicines•Personal Care• Foods•Home Care•OTC Healthcare

Agro Biotech Initiatives•Protecting endangered herbs•Technical assistance to farmers•Contract cultivation of herbs•Green House at Nepal

Dabur introduced more than 20 new products/variants during FY11

Dabur Research FacilitiesAgronomy Initiatives : Greenhouse atDabur Nepal & Uttaranchal

Dabur: Research & Development Focus

** Fem acquisition added 3.5% to topline in FY10

^^Hobi and Namaste acquisitions added 4% to topline in FY11

Dabur: Financial Performance

Sales Turnover

19.90%19.80%

18.30%18.50%18.10%

FY07 FY08 FY09 FY10 FY11

In %

Dabur: Financial Performance

EBITDA Margin (in %)

252.08

316.77

373.55

433.33

471.41

FY07 FY08 FY09 FY10 FY11

In Rs.Cr.

Dabur: Financial Performance

Net Profit After Tax

66.07 67.51

47.98

61.62

44.16

FY07 FY08 FY09 FY10 FY11

Return On Capital Employed(%)

Dabur: Financial Performance

2.92

3.67

4.32

4.98

2.71

FY07 FY08 FY09 FY10 FY11

In Rs.

Earning Per Share

Dabur: Financial Performance

0.050.03

0.19

0.14

0.23

FY07 FY08 FY09 FY10 FY11

Dabur: Financial Performance

Debt Equity Ratio

Market Capitalization

Dabur: Financial Performance

8629 8640 8651 8676

17407

FY07 FY08 FY09 FY10 FY11

in Rs. Cr.

Dabur:Dabur:

P/E Ratio =

Market Share price

-----------------

Earnings Per Share

Indian Promoter 68.64

Mutual Funds / UTI 0.29

FII 19.15

Foreign Promoter 0.06

FI/Bank/Insurance 5.42

Bodies Corporate 0.43

NRIs/OCBs 0.36

General public5.66

DIL Shareholding Pattern as on 31st December, 2011DIL Shareholding Pattern as on 31st December, 2011

Our differentiation is the herbal and ayurvedic platform

Expand

•Strengthening presence in existing categories and markets as well entering new geographies

•Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories

•Calibrated international expansion – local manufacturing and supply chain to enhance flexibility/reduce response time to change in market demands

Innovate•Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a.

•Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste)

Acquire•Acquisitions critical for building scale in existing categories & markets

•Should be synergistic and make a good strategic fit

•Target opportunities in our focus markets

Dabur: Growth Strategy

Dabur ranked 182 in theET-500 list of India Inc'sHeroes

Dabur ranked 7th Most Respected Company in the Fast Moving ConsumerGoods space in India

Dabur ranked among Top 10 Best Companies To Work For in the Consumer Goods and Durables sector

Chyawanprash,Hajmola,Real chosen by Indian consumers as 'Power Brands 2010-11'

Dabur ranked 200 inthe Fortune India 500list that ranks India's500 largest corporations

Dabur ranked in the Top100 in Business Today'sBT 500 list of India's MostValuable Companies.Dabur was ranked 62

Dabur India Ltd awardedthe Best Run Award InSupply Chain by SAP

Dabur moves up totake the 78th spot inthe Super-100 list,released by BusinessIndia

Dabur : Recent Accolades

Recommendations:

Dabur is the limited product appeal of traditional Ayurvedic products which needs to be taking full potential to tab its Ayurveda Heritage.

low tax rates because of factory locations in areas that are designated as tax benefit zones; any change in this law could affect earnings.

Dabur needs to be strong in Key Markets further expanding the distribution network, also reaching out to new geographies.

As the competition increases, Company needs to constantly invest in the brand in the form of higher A&P spendings.

As high competition intensity in consumer care division business, company should focus more on its healthcare (CHD), OTC and International Business over the next 2-3 years.

Rural Distribution Initiatives - ASTRA – Re-organizing the distribution network in Rural areas. (pilot successful in UP and Maharashtra).

Increasing supply chain efficiency through Improved Planning thus increasing operational Efficiency.

http://www.moneycontrol.com/competition/daburindia/comparison/DI

http://myiris.com/shares/company/writeDet.php?icode=dabindia#rec

http://www.moneycontrol.com/financials/daburindia/ratios/DI

http://money.livemint.com/IID50/F100096/ShareHolding/Company.aspx

Bibliography:

http://www.moneycontrol.com/company-facts/daburindia/management/DI#DI

http://breport.myiris.com/RKGSSL/DABINDIA_20120202.pdf

http://www.dabur.com/Investors%20Relation-Performance%20at%20a%20Glance

PRESENTED BY: MET – MFM SEM-II( 2011-2014)

NAME ROLL NO.

GULSHAN PATIL 94

RUPESH GAJARE 71

ASHISH OZA 119

JAIMIT THAKKAR 113

SIDDHESH KOTHARE 80

BONNIE LOBO 81

SANJAY NIHALANI 89