dabur

COMPANY DETAIL

Founding Thoughts

"What is that life worth which cannot bring comfort to others"

With the above thought Dr. S.K Burman (1856-1907) tucked away in Bengal. His

mission was to provide effective and affordable cure for ordinary people in far-flung

villages. With missionary zeal and fervor, Dr. Burman undertook the task of preparing

natural cures for the killer disease of those days, like cholera, malaria and plague

Table -2

Highlights of the Dabur India 1884 The company started its operations as an Ayurvedic Pharmacy in Calcutta

1919 The first company to Initiate research on Ayurveda

1940-50 Entry into Consumer products through launch of Dabur Amla Hair Oil & Chyawanprash

1970-80 Entry into Oral care & Digestives through launch of Dabur LDM & Hajmola

1994 Pharmaceutical business de-merged from Dabur India creating Dabur Pharma

1996 Promoter family moved out of executive role inducting professional managers including CEO

1998 The Company got Listed on Bombay Stock Exchange

2004 Launched "Real" India's first packaged fruit juice marking its entry into Health beverages

2005 Acquired Balsara having Oral care and Home Care products

2007 Board restructured : Induction of younger members on the Board

2009 Fem care acquisition

AMAZING FACTS ABOUT DABUR

DABUR has one of the largest Herbal & Natural Portfolio. Dabur’s domestic distribution

network comprises 50 C&F agents and about 4,500 distributors.

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Driven by the sheer popularity of its product portfolio, Dabur finds a place of pride in

over 2.5 million retail outlets in India with geographic footprint spanning over 60

countries.

It has a sizeable presence in high growth international markets with14 Manufacturing

Plants and provides employment to over 3500 employees.

There are major 5 Umbrella Brands and over 350 well performing products.

Head quarters Ghaziabad, Type-NSE,BSE

Website- www.dabur.com.

Key Financial Performance Overview

Robust revenue growth led by CCD & IBD. Most of the categories performed well with

Shampoos, Hair Oils Foods and Toothpastes contributing proportionately higher to the

growth. Fem care take over process completed on 25thJune, 2009 and results consolidated

for 6 days of the quarter.

Consolidated Sales increased to Rs. 2834.1 crore in 2008-09 from Rs.2396.3 crore in

2008-09, registering agrowth of 18.3%.

Earnings before interest, depreciation, taxes and amortization (EBIDTA) increased

to Rs. 517.3 crore in 2008-09 from Rs. 443.3 crore in 2007-08, registering growth of

16.7%

Consolidated Profits After Tax (PAT) went up to Rs. 391.2 crore in 2008-09 from

Rs.332.9 crore, going up by 17.5%.

Awards & Recognitions2

Dabur has received many Awards and Accolades in recognition of its-achievements at various

levels. During the year Dabur bagged various Awards and Recognitions in different categories

and for different Brands.

For the Company

Ranked amongst India's most innovative companies

by Business Today-Monitor Group Survey.

Ranked 28th in the list of India's Top 50 Most

Valuable (company) Brands by Brand Finance.

Its Brands

Hajmola, one of the strongest brands in Dabur's Portfolio, has been listed among the

Top 18 Iconic Brands in India..

Dabur Brands-Hajmola, Dabur Amla and Vatika have debuted in the Economic Times

Brand Equity's most trusted Brands 2008 list.

Its Chief Executive Officer

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Mr. Sunil Duggal was named the best corporate leader of 2008 at the B&E leadership

and Excellence Awards, and also ranked among India's most valuable CEOs by Business

World.

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CONSUMER CARE DIVISION OVERVIEW

Extension of existing brands to more subcategories and making more choice available to

consumers, coupled with increased focus on rural penetration, was the key platform on

which CCD leveraged its growth during 2008-09. The division reported growth of 13.8%,

supported by-strong performance across various segments. The CCD business is divided into

four key portfolios: healthcare, personal care, home care and foods. These cater to a number

of consumer market segments including hair care, oral care, baby and skin care, health

supplements, digestives, home care and foods. Share of these product segments in CCD sales

is presented in Figure:

Health Care:

With a share of 44%, the Health Care segment continued to be the largest contributor to

CCD's sales during the fiscal, reporting impressive growth across all its three categories:

Health Supplements, Oral Care and Digestives.

Personal Care:

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Comprising Hair Care and Baby & Skin Care, this portfolio is the second largest contributor to

CCD sales, with a 37 % share. During 2008-09, this portfolio reported a strong 21.5% growth,

of

which significant growth came out of higher volumes a considerable achievement given the

intense and

challenging inflationary scenario in terms of the input costs that impacted the FMCG industry

during the year. Led by impressive growth across brands, the Personal Care portfolio

emerged as the fastest growing segment in CCD during the year.

Home Care:-

Dabur is a significant player in the evolving and under penetrated Home Care category in

India. Home Care portfolio, which came into the Dabur fold with the acquisition of Balsara in

2005, has a share of 5.7% of CCD revenues. The portfolio registered a growth of9.7% during

2008-09.

The portfolio comprises of 3 categories: Air Care, Mosquito Repellants and Surface Cleaners.

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Foods:-

Foods division, which was merged with CCD during 2008-09 is now fully integrated with the

consumer care division and contributes 13.3% to the CCD sales, this segment comprises

mainly fruit beverages under the Real & Active brands and culinary additives under the

Homemade brand. The foods business recorded a growth of 14.4% for the year, riding on the

plank of health & wellness and established superiority.

International Business Division:-

The division, which has been transformed from being a small operation into a multi-location

business spreading through the Middle East, North Africa, West Africa and South Asia, grew

by 39.9% during the year and emerged as the fastest growing division of the Company. This

acceleration in growth of IBO led to its contribution to Dabur's consolidated revenue going

up to 18.5% for FY09 from 15.7% a year ago.

The key categories accelerating the division's growth are Hair Creams, Toothpastes, Hair Oils

and Conditioners is pertinent to mention that the brand architecture in the Company's

overseas markets remains similar to that in India, though the products sold under these

brands are customized and modified to the requirements of these markets.

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DABUR VISION, MISSION,CORE VALUES

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

This is our company. We accept personal responsibility, and accountability to meet business needs.

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

We have superior understanding of consumer needs and develop products to fulfill them better.

We work together on the principle of mutual trust & transparency in a boundary-less organization.

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

We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.

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STRATEGIC INTENT OF DABUR INDIA

Dabur India intends to significantly accelerate profitable growth. 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

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DABUR GROUPS

With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently.

Given the vast range of products, sourcing, production and marketing have been divested to the group companies that conduct their operations independently:

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DABUR WORLD WIDE

Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today, there is growing global awareness on alternative medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing this alternative way of life, marketing its products in more than 60 countries all over the world.

Over the years, Dabur's overseas business has successfully transformed from being a small operation into a multi-location business spreading through the Middle East, North Africa, West Africa and Sou

Our Products Worldwide

We have spread ourselves wide and deep to be close to our overseas consumers. Our overseas product portfolio is tailor-made to suit the needs and aspirations of our growing consumer base in the international markets.

Offices and representatives in Europe, UK, America and Africa

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AA special herbal health care and personal care range successfully selling in markets ranging from the Middle East, Far East, North Africa and Europe

Inroads into several European and American markets that have good potential due to resurgence of the back-to-nature movement

Export of Active Pharmaceutical Ingredients (APIs), manufactured under strict international quality benchmarks, to Europe, Latin America, Africa, and other Asian countries

Export of food and textile grade natural gums, extracted from traditional plant sources

Partnerships & Production

Strategic partnerships with leading multinational food and health care companies to introduce innovations in products and services

Six modern manufacturing facilities spread across South Asia, Middle East and Africa to optimize production by utilizing local resources and the most modern technology avai

MANUFACTURING FACILITIES IN INDIA

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CEO OF DABUR

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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.

Mr. Duggal started his career as a management trainee in Wimco Limited in 1981 after getting his Engineering Degree (Electrical & Electronics) from BITS, Pilani, and Business Management from IIM, Calcutta. His stint at Wimco continued till 1994, with a break in between when he joined Bennett Coleman & Co. Ltd for a short period. In 1994, he moved to Pepsi Foods as GM, Sales Operation.

In 1995, he joined the Dabur family as General Manager (Sales & Marketing) of the Family Products Division with products like Dabur Amla, Lal Dant Manjan and Vatika in his portfolio. This Division spearheaded the spectacular growth recorded by Dabur in this period. Vatika was also launched during this period and is now the Company's second biggest brand.

With his dynamic spirit and leadership abilities, he soon became Vice-President and SBU-Head of the Family Products Division. In July 2000 Mr. Duggal was appointed Director Sales and Marketing of Dabur India Limited. And in 2002, he became the CEO of the Company - a professional with valuable experience to steer the company ahead in its growth plans.

Spanning a career of over 20 years, Mr. Sunil Duggal has travelled widely across India and handled diverse portfolios that have helped him understand the dynamics of FMCG businesses and market trends. He is well versed in the intricacies of India's regional diversities and consumer needs.Mr. Duggal lives in Delhi with his wife and one child. Whenever he gets a break from his official responsibilities, Mr. Duggal likes to spend time at home with his family and an occasional round of golf.

BOARD OF DIRECTORS

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Dabur has an illustrious Board of Directors who are committed to take the company to newer levels of corporate governance.

The Board comprises of:

Chairman: - Dr. Anand Burman Vice-Chairman:- Mr. Amit Burman

Time Directors:-

Mr. P.D. Narang Mr. Sunil Duggal

Mr. Pradip Burman Mr. Mohit Burman

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Independent Directors:-

Mr. Bert Paterson Mr. P. N. Vijay

`

Mr. R C Bhargava Mr. Analjit Singh

Dr. S. Narayan

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SWOT ANALYSIS OF DABUR INDIA LTD

STRENGTHS:- Century Old Company Established Brand portfolio Leader in Ayurvedic/ herbal Product line; Strong hold in Rural Market. Innovativeness in Promotions and has an integrated robust R&D process in raw

material Specifications development, efficacy optimization and safety assessment to ensure quality and performance of the products.

WEAKNESS:- Profitability is uneven across product line Intense Competition from competitors. Low presence in South Indian Market. Little Aggressiveness during the launch and promotional activities of the New

Product. Image in the mind of consumer: AYURVEDIC Company.

OPPORTUNITIES:- Extend Vatika brand to new categories like Skin Care and body wash segments Consumers shifting towards Ayurvedic Medication Exploring new geographical areas- local as well global; Good growth in International

Business Growth prospect in Home Care and Oral Care Segment where the Company share is

atnascent stage.

Launching new Products like Hair oils, Herbal and Gel Toothpastes etc which maps the need of the customers.

THREATS:- Competition in the FMCG sector from well established names Other fields of medicine- Allopathic and Homeopathic Customer is king in FMCG industry. A shift in customer preference can create impact

on Sales Markets where Herbal products are not recognized

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DABUR FOODS LTD. PROFILE

"Where necessity is the mother of invention"

Dabur Foods set up a separate food services network in 1998 to cater the institutional segment. This exclusive network partners institution in developing customized products for them. In turn with the help and facilities of this network, institution like, hotels, airlines, restaurants, caterers and hospitals benefits by offering better services to consumers. With the market understanding and research Dabur Foods developed a new brand called "Nature's Best", which became the first brand of Dabur Food Services Network. Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category.

Currently the food-service business generates a turnover of Rs 50 crore and is growing between 18-20 per cent. At present the company's institutional buyers comprise a host of BPOs and call centers as well as several bars, hotels, airlines and canteens. It has also started supplying its garlic paste to the Domino's pizza chain. Estimating the food and beverage segment at Rs 1,500 crore, Dabur Foods expects to scale up its presence in this segment by extending the range of its products and going beyond supplying beverages to its institutional buyers. Meanwhile, Dabur Foods is also eyeing generating revenues through the business of category management with retailers. It has already entered into an agreement with the Food World chain to manage its juices category.

Modern trade has yet to get better-organized and not all retailers are using the data to study category management in the country.'' At the same time the company's sales from modern trade still comprise a miniscule segment of its Rs 191 crore sales turnover.

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BRIEF ABOUT REAL BRAND

Réal has been the preferred choice of consumers when it comes to packaged fruit juices, which is what makes India's No. 1 Fruit Juice brand. A validation of this success is that Réal has been awarded ‘India’s Most Trusted Brand’ status for four years in a row.

Today, Real has a range of 14 exciting variants - from the exotic Indian Mango, Mausambi, Guava & Litchi to international favorites like Pomegranate, Tomato, Cranberry, Peach, Blackcurrant & Grape and the basic Orange, Pineapple, Apple & Mixed Fruit. This large range helps cater different needs and occasions and has helped Real maintain its dominant market share.

A research conducted by Blackstone Market Facts even pointed out that Real was preferred by over 50% of the respondents. What’s more, Real was liked for being the better tasting juice - a category where likeability is primarily driven by taste.

Made from best quality fruits, Real does not have artificial flavors and preservatives, and offer your kids not just great taste, but also FRUIT POWER - the power of fruits… the power to stay ahead. Loaded with the power of Vitamin C, Real fruit juices have all the necessary nutrients that keep you active all day long.

Accolades for Real

• India's No. 1 Fruit Juice brand• Voted as a Super brand• Voted by consumers as the most trusted fruit juice brand for four years in a row• Real awarded the Reader’s Digest Trusted Brand Gold Award 2009 in the food and beverages category.

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BRIEF ABOUT REAL ACTIVE

Real Activ is a range of unsweetened juices that contain no added sugar, color or preservatives. Real Activ juices are made from concentrated juices. After the juice is pressed from the fruit, the water is removed to reduce transportation load. At our factories, during the manufacturing of juices/ juice blends, we add back the equivalent quantity of water. Thus, Real Active Juices have as much juice as present in respective fruit.

Real Activ Apple Juice:- Real Activ Apple juice provides you the goodness of Apples. Apples are packed with nutrients and anti-oxidants and are Very low in sodium.

Real Activ Mixed Fruit Spinach Cucumber Juice:-

Réal Activ Mixed Fruit Spinach Cucumber juice is a refreshing & nutritious blend of fruits & vegetables with the goodness of 8 delicious fruits (Apple, Orange, Passion Fruit, Guava, Pineapple, Mango, Apricot & Banana) and Vegetables like Spinach, Cucumber.

Real Activ Mixed Fruit Beetroot Carrot Juice:

←← Real Activ Mixed Fruit Beetroot Carrot juice is a refreshing & nutritious blend of fruits

& vegetables with the goodness of 8 delicious fruits (Apple, Orange, Passion Fruit, Guava, Pineapple, Mango, and Apricot & Banana) and Vegetables like Beetroot & Carrot.

←

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BRIEF ABOUT HOMEMADE BRAND

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BRIEF ABOUT LEMONEEZ BRAND

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Dabur's culinary range under the Hommade brand includes a range of Cooking pastes (Ginger, Garlic, Ginger-Garlic & Tamarind), Tomato Puree and Coconut Milk. The brand is positioned on the convenience platform. 

Hommade Cooking Pastes

With Hommade pastes, you can experience the same strong distinctive flavour and aroma of freshly ground ginder, garlic and tamarind. Ground slowly over stones, it brings a delicious silbatta-fresh flavour to your cooking. Besides, it comes with the Dabur assurance of quality & purity.Use Hommade pastes at the same stage of cooking as you normally use fresh ginger, garlic & tamarind.

 Hommade Tomato Puree :

Hommade Tomato Puree is prepared from the pulp of hand-picked, juicy, ripe tomatoes. Free of skin & seeds, it adds the delicious tang of tomatoes to your gravy, making it thick, rich and appetizing. And you food become truly hard to resist.A little bit of Hommade Tomato Puree and a little bit of you; Perfect ingredients for tasty, wholesome meals. 

Hommade Coconut Milk :

Hommade Coconut Milk is the first pressing extract of superior coconuts, which makes it rich and loaded with goodness. Don't believe us? Dip you finger in Hommade Coconut Milk, and surprise yourself with the thick coat on your finger that refuses to drip.  

A 250 ml bottle of Lemoneez is equal to juice 25 lemons approximately

Lemoneez Advantage:

Do away with hassles of cutting and squeezing lemons.

Provides consistent lemon taste and flavor, anytime of the year.

Lemoneez Usage :

← Prepare Nimbu Pani

Prepare Lemon Tea

Add delicious lemon tang to Salads and Indian Curries,Marinate Meat

In fact, it can be used in place of lemon anywhere

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BRIEF ABOUT CAPSICO BRAND

Raw Material used:

Ingredients- Fresh red pepper, vinegar, salt, cumin oil, permitted emulsifying and stabilizing agents

Description- Long, slender and thin variety of chillies with rich red colour and characteristic flavour and aroma of red chillies

Sourcing- Locations-

Bihar, Andra Pradesh, Rajasthan and Karnataka

Packing- Gunny bags

Product Attributes Finished Products:

Colour Red

Flavour Natural, characteristic red chilli flavour with cumin note

Consistency Freely flowable

Product Benefits:

← Natural mild characteristic red chili flavor, with no added artificial flavors

Right balance of pungency to give the perfect taste and flavor

Maturation in wooden casks for seasons together gives the spicy smooth flavor of red chilies

Prepared under hygienic conditions as per International specifications.

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BRIEF ABOUT NATURE’S BEST BRAND

Under the `Nature's Best' brand meant for its institutional buyers, Dabur Foods now intends supplying tomato purees, ketchups and dressings to the smaller food kiosks and 5-Star hotels. Adds Mr Sharma, "There is a need for packaged solutions, especially from the smaller eating kiosks that lack space in their operations. Besides, tomatoes are used most in Indian cooking.''

Dabur Foods, a 100 per cent subsidiary of Dabur India Ltd, has launched Nature’s Best, a brand that will cater exclusively to the institutional sector. The first product launched under this brand is tomato ketchup.

SALES, PROFIT, EBITDA (including retail) IN 08-09

1311 178.5

16.7% 12.4%

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1123 158.8

H1FY08 H1FY09 H1FY08 H1FY09

Sales (In Rs cr) Net Profit (In Rs cr)

18.7%

H1FY08 56 bps

18.2%

EBITDA %

H1FY09

Retail venture has reported losses to the tune of Rs 10.19 Cores

During H1FY09 and Rs 5.23 Crores for Q2FY09.

SALES,PROFIT,EBITDA(excluding retail) IN 08-0927

1308 188.6

16.5% 17.8%

1123 160.1

H1FY08 H1FY09 H1FY08 H1FY09

Sales (In Rs cr) Net Profit (In Rs cr)

18.9%

18.8%

H1FY08 H1FY09 EBITDA %

SALES GROWTH,REVENUE OF DIVISIONS IN 08-09

40.1%

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22.6%

11.3%

CCD CHD IBD

Sales growth

Revenue

1% revenue in others.

7% revenue in CHD.

19% revenue in IBD.

73% revenue in CCD.

REVENUE OF CCD DIVISION IN 08-09

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