dabur RAM Final32222222222222222222

A TRAINING PROJECT REPORT

Submitted to the

Bachelor of Business Administration (B.B.A.)

S.C.M.I.T. SIKAR

SESSION : 2006-09

SUBMITTED TO : SUBMITTED BY : RAMSWAROOP DIRECTORATE OF DISTANCE EDUCATION BBA PART- III GURU JAMBHESHWAR UNIVERSITY OF Er. No. :-06511505014 SCIENCE AND TECHNOLOGY HISAR

ACKNOWLEDGEMENT

I hope this training, which is this of long dedicated hours of efforts, & consistent

dedication will also be appreciated. No work can be Perfect without ample guidance.

I acknowledge my sincere thanks to Mr. Dinesh Singh who provided me with this

opportunity to gain an invaluable practical experience by this training.

I would like to express my deep gratitude and Heartiest thanks to my faculty

members of SHEKAWATI COLLAGE , SIKAR Who infused me with the sprit to

work upon challenging field. Which has its inception such a time when there is a need

for new orientation.

I own my gratitude to Mr. RAJESH NARKAR I cannot refrain to accord my

rumble and sincere indebt ness for finical affection his dynamic and generous criticism

kept the investigation stimulation and interesting I am thankful to DABUR IND. LTD.

from the core of our hearts for the help and guidance they rendered during the training.

My heart felt thanks are due to the entire member DABUR IND. LTD, who whole-

heartedly and atiently supported us in the completion of my training.

( RAMSWAROOP)

S.C.M.I.T., SIKAR

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PREFACE

As per requirement of BBA Course DABUR IND. LTD, has been kind enough

to permit me to complete my project of “Gaur Gum Field in Textile

Printing & Cosmetics” this project report based on analysis of

Customer Perception toward the DABUR IND. LTD,.

This study was conducted to analyze present Status of DABUR

IND. LTD,. To give an overall view of DABUR IND. LTD, at Jaipur. This

Study Considered Feed back of Customer, Comparison regarding product .

I express my gratitude to Mr. Mr. RAJESH NARKAR and Mr. Dinesh

Singh allowing me to undertake the project in their production department.

I am thankful to them for their support encouragement and Coordination.

(RAMSWAROOP)

S.C.M.I.T. , SIKAR

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DECLARATION

I,RAMSWAROOP, Student of BBA Session 2006-2009, declare

that the present work titled “Gaur Gum Field in Textile

Printing & Cosmetics” is an original work. I anywhere else for

the award of any degree/ diploma/ certificate or for any prize have not

submitted this project report. All the data given in the report is to the

best of my knowledge and all references whether of any person or

organization can be crosschecked.

( RAMSWAROOP) S.C.M.I.T., SIKAR

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TABLE OF CONTENT

1. INTRODUCTION 4

ABOUT DABUR

2. DABUR GROUP 6

DABUR AT GLACE

3. HISTORY OF DABUR 9

DOOR STEP DAKTAR

MILESTONE TO SUCCESS

4. WORLD WIDE DABUR 15

PARTNERSHIP AND PRODUCTION

5. DABUR FAMILY TREE 17

6. BOARD OF DIRECTORS 18

7. DABUR VISION 19

8. DABUR CORE VALUES 20

9. CORPORATE GOVERNANCE 21

10. CORPORATE CITIZENSHIP 22

11. IT INITIATIVES 24

12. EXPORT PROCESS 25

13. DABUR GRADES 26

14. PACKAGING 26

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15. DABUR ALWAR UNIT 27

16. WHAT IS GUAR GUM 29

17. CHARACTERISTICS OF GUAR GUM 30

18. PRODUCTION OF GUAR GUM 31

19. USES OF GUAR GUM 32

20. GUAR PRODCUTS 33

21. PROCESSING 34

22. BY PRODUCTS 35

23. APPLICATION OF GUAR GUM 36

24. DABUR CLIENTS 43

25. DISTRIBUTION NETWORK IN ASIA 44

26. R & D DEPARTMENT 45

27. QUALITY & POLICY 48

28. ANNUAL REPORT 49

29. STATE WISE PRODUCTION 52

30. INDIAN SHARE IN GLOBAL PRODCUTION 52

31. VALUE ADDED 53

32. THE VALUE CHAIN 53

33. COMPETITIVE POSITON 54

34. GUAR GUM PRICE TREND 54

35. INDIAN INDUSTRY IN GUAR GUM MARKET 57

36. INTERNATIONAL MARKET IN GUAR GUM 58

37. RESEARCH METHORDOLOGY 62

38. QUESTIONAREE 63

39. CONCLUSION 68

40. RECOMMENDATION 71

41. BIBILOGRAPHY 80

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INTRODUCTIONCompany Profile

Dabur India Limited

Ticker: 500096

Exchanges: BOM

2006 Sales: 17,228,000,000

Major Industry: DRUGS, COSMETICS & HEALTH CARE

Sub Industry: ETHICAL DRUG MANUFACTURERS

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Country: INDIA

Employees: 1870

Dabur India Limited is the fourth largest FMCG Company in India

with interests in Health care, Personal care and Food products. Building on a

legacy of quality and experience for over 100 years, today Dabur has a

turnover of Rs.1536.95 crore with powerful brands like Dabur Amla, Dabur

Chyawanprash,Vatika, Hajmola & Real.

ABOUT DABUR

Dabur India Limited is India's fourth largest FMCG Company with interests in Health care, Personal care and Food products. Building on a 120-year legacy of quality and experience, today Dabur has a turnover of US$ 340 million.

The company has been instrumental in reviving traditional remedies and health care solutions, making them popular brands of

nature-based products backed by modern scientific research and state-of-art manufacturing. Dabur's products are available for people in more than 50 countries across the world, helping them move towards a healthy, natural and holistic lifestyle.

Dabur's basket of products includes powerful superbrands that have become a household name in India and are very popular in our international markets. Some of them are:

Dabur Amla Hair Oil -The first branded herbal hair oil that became our flagship brand in the Hair Oils category and has been associated with popular stars of the silver screen.

Dabur Chyawanprash - India's largest selling brand of the traditional Ayurvedic revitaliser.

Vatika -The premium range of natural hair care products for modern women.

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Hajmola -The market leader in digestive products with 75% share of the Indian market.

Real Juices – One of India's fastest growing retail brands charting a turnover of over US$ 22 million.

DABUR GROUP

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 five leading group

companies that conduct their operations independently:

1) DABUR FOODS

2) DABUR NEPAL

3) DABUR EGYPT

4) DABUR ONCOLOGY

5) DABUR PHARMA

DABUR AT GLANCE

Dabur India Limited has marked its presence with some very significant

achievements and today commands a market leadership status. Our story

of success is based on dedication to nature, corporate and process

hygiene, dynamic leadership and commitment to our partners and

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stakeholders. The results of our policies and initiatives speak for

themselves.

1. Leading consumer goods company in India with 4th largest turnover

of Rs.1329 Crore (FY02)

2. 2 major strategic business units (SBU) - Consumer Care Division

(CCD) and Consumer Health Division (CHD)

3. 3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and

Dabur International and 3 step down subsidiaries of Dabur

International - Asian Consumer Care in Bangladesh, African

Consumer Care in Nigeria and Dabur Egypt.

4. 13 ultra-modern manufacturing units spread around the globe

5. Products marketed in over 50 countries

6. Wide and deep market penetration with 47 C&F agents, more than

5000 distributors and over 1.5 million retail outlets all over India 

CCD, dealing with FMCG Products relating to Personal Care and Health

Care

Leading brands -

Dabur - The Health Care Brand

Vatika-Personal Care Brand

Anmol- Value for Money Brand

Hajmola- Tasty Digestive Brand

and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100

crore turnover each

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Vatika Hair Oil & Shampoo the high growth brand

Strategic positioning of Honey as food product, leading to market

leadership (over 40%) in branded honey market 

Dabur Chyawanprash the largest selling Ayurvedic medicine with

over 65% market share.

Leader in herbal digestives with 90% market share

Hajmola tablets in command with 75% market share of digestive

tablets category

Dabur Lal Tail tops baby massage oil market with 35% of total share

CHD (Consumer Health Division), dealing with classical Ayurvedic

medicines 

Has more than 250 products sold through 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

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Division also works for promotion of Ayurveda through organised

community of traditional practitioners and developing fresh batches of

students 

HISTORY OF DABUR

1884 -Birth of Dabur

1896 -Setting up a manufacturing plant

Early 1900s-Ayurvedic medicines

1919 -Establishment of research laboratories

1920 -Expands further

1936 -Dabur India (Dr. S.K. Burman) Pvt. Ltd.

1972 -Shift to Delhi

1979 -Sahibabad factory / Dabur Research Foundation

1986 -Public Limited Company

1992 -Joint venture with Agrolimen of Spain

1993 -Cancer treatment

1994 -Public issues

1995 -Joint Ventures

1996 -3 separate divisions

1997 -Foods Division / Project STARS

1998 -Professionals to manage the Company

2000 -Turnover of Rs.1,000 crores

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THE DOORSTEP ‘DAKTAR

The story of Dabur began with a small, but visionary

endeavour by Dr. S. K. Burman, a physician tucked

away in Bengal. His mission was to provide

effective and affordable cure for ordinary people in

far-flung villages. With missionary zeal and fervour,

Dr. Burman undertook the task of preparing natural

cures for the killer diseases of those days, like

cholera, malaria and plague.

Soon the news of his medicines traveled, and he came to be known as the

trusted 'Daktar' or Doctor who came up with effective cures. And that is how

his venture Dabur got its name - derived from the Devanagri rendition of

Daktar Burman. Dr. Burman set up Dabur in 1884 to produce and dispense

Ayurvedic medicines. Reaching out to a wide mass of people who had no

access to proper treatment. Dr. S. K. Burman's 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.

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Milestones to success

Dabur India Ltd. made its beginnings with a small pharmacy, but has

continued to learn and grow to a commanding status in the industry. The

Company has gone a long way in popularising and making easily available a

whole range of products based on the traditional science of Ayurveda. And it

has set very high standards in developing products and processes that meet

stringent quality norms. As it grows even further, Dabur will continue to

mark up on major milestones along the way, setting the road for others to

follow.

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines Dabur identifies

nature-based Ayurvedic medicines as its area of specialisation. It is the

first Company to provide health care through scientifically tested and

automated production of formulations based on our traditional science.

1930 - Automation and upgradation of Ayurvedic products

manufacturing initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through Ayurveda Dabur introduces Indian

consumers to personal care through Ayurveda, with the launch of

Dabur Amla Hair Oil. So popular is the product that it becomes the

largest selling hair oil brand in India.

1949 - Launched Dabur Chyawanprash in tin pack Widening the

popularity and usage of traditional Ayurvedic products continues. The

ancient restorative Chyawanprash is launched in packaged form, and

becomes the first branded Chyawanprash in India.

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1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment Addressing rural

markets where homemade oral care is more popular than multinational

brands, Dabur introduces Lal Dant Manjan. With this a conveniently

packaged herbal toothpowder is made available at affordable costs to the

masses.

1972 - Shifts base to Delhi from Calcutta

1978 - Launches Hajmola tablet Dabur continues to make innovative

products based on traditional formulations that can provide holistic care

in our daily life. An Ayurvedic medicine used as a digestive aid is

branded and launched as the popular Hajmola tablet.

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most mordern

herbal medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with fun The Ayurvedic digestive formulation is

converted into a children's fun product with the launch of Hajmola

Candy. In an innovative move, a curative product is converted to a

confectionary item for wider usage.

1994 - Comes out with first public issue

1994 - Enters oncology segment

1994 - Leadership in health care Dabur establishes its leadership in

health care as one of only two companies worldwide to launch the anti-

cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an

eco-friendly process to extract the drug from its plant source

1996 - Enters foods business with the launch of Real Fruit Juice

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1996 - Real blitzkrieg Dabur captures the imagination of young Indian

consumers with the launch of Real Fruit Juices - a new concept in the

Indian foods market. The first local brand of 100% pure natural fruit

juices made to international standards, Real becomes the fastest growing

and largest selling brand in the country.

1998 - Burman family hands over management of the company to

professionals

2000 - The 1,000 crore mark Dabur establishes its market leadership

status by staging a turnover of Rs.1,000 crores. Across a span of over a

100 years, Dabur has grown from a small beginning based on traditional

health care. To a commanding position amongst an august league of large

corporate businesses.

2001 - Super specialty drugs With the setting up of Dabur

Oncology's sterile cytotoxic facility, the Company gains entry into the

highly specialised area of cancer therapy. The state-of-the-art plant

and laboratory in the UK have approval from the MCA of UK. They

follow FDA guidelines for production of drugs specifically for

European and American markets.

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs

64.4

crore

2003 - Dabur demerges Pharmaceuticals business

Maintaining global standards

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As a reflection of its constant efforts at achieving superior quality

standards, Dabur became the first Ayurvedic products company to get

ISO 9002 certification.

Science for nature

Reinforcing its commitment to nature and its conservation, Dabur

Nepal, a subsidiary of Dabur India, has set up fully automated

greenhouses in Nepal. This scientific landmark helps to produce

saplings of rare medicinal plants that are under threat of extinction due to

ecological degradation. 

Our products World Wide

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Dabur's mission of popularising a natural lifestyle transcends national

boundaries. Today there is global awareness of alternative medicine, nature-

based and holistic lifestyles and an interest in herbal products. Dabur has

been in the forefront of popularising this alternative way of life, marketing

its products in more than 50 countries all over the world.

We have spread ourselves wide and deep to be in close touch with our

overseas consumers. Offices and representatives in Europe, America and

Africa; A special herbal health care and personal care range successfully

selling in markets of the Middle East, Far East and several European

countries. Inroads into European and American markets that have good

potential due to resurgence of the back-to-nature movement. Export of

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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 and Production

Strategic partnerships with leading multinational food and health care

companies to introduce innovations in products and services. Manufacturing

facilities spread across 3 overseas locations to optimise production by

utilising local resources and the most modern technology available.

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DABUR- FAMILY TREE

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BOARD OF DIRECTORS

Dabur has an illustrious Board of Directors who are committed to take the

company onto newer levels of human endeavour in the service of mankind.

The Board comprises   of:

Chairman

MR V.C BURMAN

Vice-Chairman

DR ANAND BURMAN

WHOLE TIME DIRECTORS

MR P.D NARANG

MR SUNIL DUGGAL

MR PRADIP BURMAN

NON WHOLE TIME PROMOTERS DIRECTOR

MR AMIT BURMAN

INDEPENDENT DIRECTORS

HIS HIGHNESS MAHARAJA GAJ SINGH

MR STUART PURDY

MR PN VIJAY

MR RC BHARGAVA

DR S NARAYAN

DABUR VISION

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Dedicated to the health and well being of every household.

Strategic Intent:

We intend to significantly accelerate profitable growth. To do this, we will:

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.

CORE VALUES:

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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.

CORPORATE GOVERNANCE

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Good corporate governance and transparency in actions of the management is key to a

strong bond of trust with the Company’s stakeholders. Dabur understands the importance

of good governance and has constantly avoided an arbitrary decision-making process.

Our initiatives towards this end include:

Professionalisation of the board

Lean and active Board(reduced from 16 to 10 members)

Less number of promoters on the Board

More professionals and independent Directors for better management

Governed through Board committees for Audit, Remuneration, Shareholder Grievances,

Compensation and

Nominations

Meets all Corporate Governance Code requirements of SEBI

CORPORATE CITIZENSHIP

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When our Founder Dr. S. K. Burman first established Dabur, he had a vision

that saw beyond the profit motive. In his words, "What is that life worth

which cannot bring comfort to others." This ideal of a humane and equitable

society led to initiatives taken to give back some part of what Dabur has

gained from the community.

Our major initiatives in the Social sector include:

Establishment of the Sustainable Development Society, or Sundesh, in 1993 - a non-

profit rganisation to promote research and welfare activities in rural areas;

Promoting health and hygiene amongst the underpriviledged through the Chunni Lal

Medical Trust; and

Organising the Plant for Life programme for schoolchildren - to create environmental

awareness amongst young minds.

Our commitment to Environment:Ancient wisdom of conservation

From times immemorial, Indian sages and men of wisdom have understood and

appreciated the value of nature and its conservation. Our ancestors recognised that if we

grabbed from nature beyond what was healthy, it would lead to all round degradation,

and even the extinction of humanity. That is why nature was sanctified and worshipped in

the form of gods and goddesses.

Dabur upholds the tradition. Today, we at Dabur also value nature's bounty. Without the

fruits of nature, the vision of Dabur would never have been fulfilled. And that is the

reason for our unfailing commitment to ecological conservation and regeneration. We

would like to follow the principles of our ancient texts, which say:

"Dehi me dadami te" - "you give me, and I give you".

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Back to Nature Rare herbs and medicinal plants are our most valuable resource, from which all our

products are derived. Due to overexploitation of these resources and unsustainable

practices, these plants and herbs are fast reaching the point of extinction. In view of this

critical situation, Dabur has initiated some significant programmes for ecological

regeneration and protection of endangered plant species.

Plants for Life We have set up the "Plants for Life" project in the mountainous regions of the Himalayas.

Under the project, a high-tech greenhouse facility has been set up for developing saplings

of rare and endangered medicinal plants. Fully computer-controlled and monitored, this

greenhouse maintains the highly critical environmental parameters required for their

survival. We are also developing quality saplings of more than 20 herbs, 8 of them

endangered, through micro propagation.In addition, satellite nurseries spread across

mountain villages and contract cultivation of medicinal herbs helps in maintaining the

ecological balance. These measures have also helped provide local cultivators the

scientific knowledge for harvesting herbs and a steady source of income. So that they are

not forced to exploit the environment to earn a livelihood.

Living a Green Heritage These are significant steps that can contribute to a better world for coming

generations. To whom we would like to bequeath a world not bereft of

nature. But full of flowering and fruit bearing trees, animals, birds and

humans living in good health and complete harmony.

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IT INITIATIVES

In Dabur India Limited knowledge and technology are key resources. Which

have helped the Company achieve higher levels of excellence and efficiency.

Towards this overall goal of technology-driven performance, Dabur is

utilising Information Technology in a big way. This will help in integrating

a vast distribution system spread all over India and across the world. It will

also cut down costs and increase profitability.

Our major IT Initiatives

Implementation of Manufacturing Process ERP for frontend operations

Supply chain and working capital management to control manufacturing,

distribution planning, invoicing, receivables, banking and schemes;

Integration with Baan (backend ERP) initiated last year in production units

and head office; Intranet based Employee Management System for payroll

and HRIS;

Future Challenges

Target of end-to-end networking by end of financial year 2002-03

Extending the Supply Chain Automation to both ends, in Secondary Sales

and e-Procurement; Launch of E -Procurement using Free Markets' online

bidding engine. Vendor Managed inventories for fast moving raw materials

and packaging materials, and outsourced manufacturers' systems to be

integrated with the BaaN ERP system.

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GUAR GUM EXPORT ORDER EXECUTION PROCEDURE

STEP-1 STEP-2

EXPORT ORDERS

INQUIRIES FROM

BUYERS

FOLLOW-UPS/ DAILY QUOTATIONS

RAW MTERIAL PRICE OF THE DAY (PURCHASE)

BUYERS COUNTER PRICE

CONVERSION COST (BUDGETED)

EVALUATION

PRICE TO BUYERS

FINAL RESPONSE

BIZ FINALIZATION

BIZ FINALIZATION

Discussion on raw material price movement, forecaste, profitability and contract evaluation before final concurrence. -Factory Manager -Commercial Manager -Purchase Manager -Asstt. Officer - Exports

RECEIVED BY IMPORTER

SALES ORDER PROCESSING

PAYMENT

PRODUCTION

DESPATCH

SHIPMENT

MARGIN

QC TESTING

DABUR GRADE

DAVISCO GUAR GUM SPECIFICATIONS

ProductUses

Mesh Size

Viscosity (CPS)*

Moisture Max %

Plate Count Mould/TPC

Davisco DHV 74

Food Additive

200 Mesh 5000-5500 2 Max 500/Max 5000

Davisco DG 74 Food Additive

200 Mesh 3500-4200 12 Max 500/Max 5000

Davisco DHV 150

Food Additive

100 Mesh 3500-4000 12 Max 500/Max 5000

Davisco DP 75 Food Additive

200 Mesh 50-150 12 Max 500/Max 5000

Davisco DP 400 Food Additive

200 Mesh 400-600 12 Max 500/Max 5000

Davisco DP 1000

Food Additive

200 Mesh 1000-1500 12 Max 500/Max 5000

Davisco G 3000 Food Additive

200 Mesh 3500-4200 12 Max 500/Max 5000

PACKAGING

Packaging and container stuffing for all Dabur Guar Gum products are done within the factory premises to safeguard against in-transit or port pilferage. Products of different categories, with or without palletisation, are packed in tamper-proof multi-wall paper bags. These special bags preserve the physicochemical properties of the products.

Packing units

Regular packs

25 kg. bags

Jumbo packs

600 kg. bags1,000 kg. bags

Packaging can also be customised and branded according to customer requirements.

DABUR ALWAR UNIT

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Alwar Unit

Alwar unit was established in the year 1981 as Vido  VIDOGUM & CHEMICALS LTD when Groups business activities were carried out in the name of Dabur (Dr. S K Burman) Pvt Ltd. During mid80's Dabur (Dr. S K Burman) Pvt Ltd was amalgamated with VIDOGUM & CHEMICALS LTD, thus a new entity was born which is today globally known as DABUR INDIA LIMITEDUnit OverviewAlwar City is located in culturally rich State of Rajasthan. The Unit is situated in the lavish green environment, sprawling over 40,000 square meter in the walled and fenced area of Matsya Industrial Estate (MIA). The Unit with workforce of 150 people is generating Rs. 40.00 Crore revenue annually.Product ProfileAlwar Unit is privileged to be the only Unit within Dabur Group catering to the production of Guar Gum, Textile Printing Thickeners, Isabgol based products in FMCG category and Veterinary products in separate facilities within the premises.Guar Gum: The State-of-the-Art plant was set-up in the year 1981 in technical collaboration with M/s Unipektin AG of Switzerland to produce a variety of Guar Gum products for international market. Guar Gum is a unique product having wide spread applications in Food, Pharmaceuticals, Oil Field, Mining, Explosive, Textile Printing, Paint, Tobacco and Water Treatment. The Unit directly exports 100% production to overseas customers. Thickeners for Textile Printing: Dabur is the only manufacturer of Propylene Oxide treated derivatives of Polysaccharides in India. The semi automatic Manufacturing Plant in 2280 square meter covered area was set-up in the year 1996 in technical collaboration with M/s. SHIKIBO Ltd, Japan to produce different Polysaccharide derivatives for Industrial applications. All products from this unit are distributed in the international market directly from Alwar. Nature Care/ Isabgol: The manufacturing of this fibre rich laxative product was started in the year 1985. The production process is carried out as per GMP guidelines.  Ayurvedic Veterinary Medicines: The facility for manufacturing of Veterinary Medicines was set-up in 1993. Today around 37 products with more than 100 SKU's are produced in Powder, Gel, Granules and Liquids, Ointments for Animals Care. The facility is certified by Drug Authorities for GMP. Alwar Unit has been a classical saga of relentless commitment towards NATURE.

Extra:

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Dabur’s Alwar factory is well-connected to commercial centres and major cities including Delhi, which is at a distance of just 160 kms. or three hours by road. Goods produced from the Dabur factory have a easy flow for the export market due to Alwar’s proximity to the ports of Mundra in Gujarat and Nhava Sheva in Mumbai.

Some of the Guar Gum derivatives we manufacture at our plant in Alwar are:

Hydroxypropyl Guar Gum (HPG) Depolymeriaed Guar Gum (DPG) Carboxy Methyl Tamarind (CMT) Carboxy Methyl Starch (CMS) Cross-linked Guar Hydroxypropyl Tamarind (HPT) Cationic Guar

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WHAT IS GUAR GUM?

Guar is an Agricultural Product grown in arid zone of Rajasthan, some parts

of Gujarat, Harayana, Madhya Pradesh. It is a rain-fed annual crop, also

irrigated in mid-season. It is sown immediately after first showers in July

and harvested around November each year. The Guar Seed is processed to

produce Guar Gum Refined Splits (Endosperm), - Guar By-products Churi

& Korma for Cattle Feed.

Guar Gum Refined Splits (Endosperm) is the raw material for processing

Guar Gum Powder for Pharmaceutical and Food Grade material. Guar gum

has a Polymeric Structure, containing numerous hydroxy groups.

The various derivatives/Industrial grades of Guar Gum are manufactured by

reaction of these hydroxyl groups with chemicals that aid in :

Dispersion

-- Control Viscosity,

-- Causing Gelling,

-- Act as preservatives and

-- In any other way aid in achieving specific results

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CHARACTERISTICS OF GUAR GUM

The most important property of Guar Gum is its ability to hydrate rapidly in

old water, to attain a very high viscosity relatively at low concentrations. Its

specific colloidal nature gives the solution an excellent thickening power

hich is 6 to 10 times higher than that obtained from starch. It is stable over a

wide range of pH. It also improves flowability and pumpability of fluid. It is

a superior friction loss reducing agent. It produces viscosity of 0 - 8500 cps

in a 1% solution. The food-grade Guar Gum is substantially pure

polysaccharide.

Guar Gum is a very versatile and efficient bio-polymer covering a wide

range of industrial applications such as :

Oil Drilling.

-- Human Food & Pet Food.

-- Explosive.

-- Textile Printing.

-- Paper.

-- Water Treatment.

helps in binding, thickening, film forming and lubricating.

Production of Guar

32

Guar is an agricultural produce spreading over into Indo-Pakistan

subcontinent for numerous generations. India and Pakistan provide better

agro-climatic conditions for the cultivation of guar though it has also been

successfully grown in U.S.A., South Africa, Brazil, Zaire and Sudan. India is

the world leader for production of guar, which is grown in the northwestern

parts of country encompassing states of Rajasthan (Churu, Nagaur, Banner,

Sikar, Jodhpur, Ganganagar, Sirohi, Dausa, Bikaner, Hanumangarh and

Jhunjhunu districts), Gujrat (Kutch, Banaskantha, parts of Mehsana,

Sabarkantha, Vadodara and Ahmedabad districts) and Harayana (Bhiwani,

Gurgaon, Mahendragrh and Rewari districts) and Punjab (Bhatinda,

Ferozpur, Muktsar and Mansa districts). During 1970s guar was also grown

regularly in the State of Uttar Pradesh, Madhya Pradesh and Orissa. As the

processing facilities have been closed down in U.P. and M.P., the cultivation

in these states is negligible now. In Orissa too guar is not cultivated any

more. The annual production of guar during last three years ranged from

11,00,000 MT to 12,87,000 MT.

In Pakistan, before 90s, about 80% of the guar was grown under irrigated

conditions therefore the per hectare yields were higher. During that period

guar was grown in Punjab, Multan, Muzaffargarh, Mianwali and Sargoda.

The other areas include Bahawalpur, Banawalnagar and Sind Province. The

annual production of guar during this period ranged between 180,000 MT to

250,000 MT annually.

The guar is also cultivated in USA, Brazil and in some African countries like

South Africa, Malawi, Zaire and Sudan. The total production of guar seed in

these countries is estimated at 15,000 TPA. The agro-climatic conditions in

Australia are also quite conducive to the cultivation of guar. Efforts have

33

been made to promote cultivation of guar in Australia by the Department of

Agriculture and Rural Industrial Development Agency. Similarly it is

reported that countries like China and Thailand are also trying to grow guar.

Therefore, in the future guar may not remain monopoly of India and

Pakistan.

Traditional Uses of Guar

The traditional uses of guar are as following :-

a. Human Consumption

• Immature pods are dried, salted and preserved for future use

• Immature pods are dried and fried like potato chips

• Green pods are cooked like French beans

• Mature seeds are used as an emergency pulse in time of drought

b. Cattle Feed

• Plants are cut and fed as green forage.

• Beans are boiled in a large kettle and fed to cattle a high protein

source.

c. Medicinal Purposes:

• Plants are mashed, then mixed with oil and used as a poultice on cattle

boils.

• Leaves are eaten to cure night blindness.

• Seeds are used as a chemotherapeutic agent against smallpox.

• Boiled guar seeds are used as poultices for the plague, enlarged livers, head

swellings and on swellings due to broken bones.

• Seeds are used as laxative.

34

d. Crop and Soil Improvement:

• Plants are used as shade for ginger

• Guar commonly is used as a cover crop and green manure.

Guar Products

The most important industrial use of Guar is in the form of Guar Gum.

Approximately 90% of total Guar produce is used for production of Guar

Gum and rest is used for culinary purposes and cattle feed etc. Guar Gum is

derived from Guar seed that is of about 3 mm. diameter and contains a germ

which is highly proteinous which divides the endosperm into two halves.

Constituents of the different components of guar seeds are given below

CONSTITUENTS OF GUAR SEED

Part of Seed Protien % Ethet Extract% Ash% Moisture% Fibre% Types ofsugar

Hull 5 0.3 4 10 36 D-Glucose (14-17%)

Endosperm 5 0.6 0.6 10 1.5 Glactomanon (35-42%)

Germ 55.3 5.2 4.6 10 18 Glucose (43-47%)

Guar Gum Processing

35

The guar gum is produced from endosperm and consists mainly of gummy

Polly groups of monogalactoses with small amount of fibre and minerals.

Different grades are made on the purity and present viscosity of the

powders

in water.

Several methods have been used for the manufacture of different grades of

guar gum but due to its complex nature, the thermo mechanical process is

generally used for the manufacture of edible grade and industrial grade guar

gum. In this process the undehusked splits of guar seeds are first cleaned to

remove the foreign materials. The undehusked splits thus obtained are then

heated in a rotary standard temperature furnace (where the outer coating of

the fibre becomes brittle and can be removed in further process). The hot

undehusked splits are taken to scraper machine where undehusked splits are

scraped from the outer solid layer of fiber and clean splits are obtained

which are known as dehusked splits. The endosperms contained in

dehusked splits then undergoes differential grinding and shifting to get

various grades of guar gum.

By-Products

36

A by-product of the guar processing is guar meal (mixture of husks and

germ) which is a potential source of protein. It is used for cattle as well as

poultry feeding. Toasting of guar meal improves its nutritive value. It can

be used up to 10% in poultry diet and can replace up to 100% protein

supplements such as ground nut oil cakes in ruminants.

The gum is a Polysaccharide with a straight chain of mannose units and one

galactose is 2:1. The gum contains about 6% protein.

Guar is more than 6 times as effective as starch in thickening power and is

used for upgrading starches. Various derivatives of Guar Gum are available

that will stiffen gels even up to a water content of 99%. Commercially

important derivatives of Guar gum are :

a) Hydroxy Alkylated Guar gum

b) Carboxy Methylated Guar gum

c) Oxidised Guar gum

d) Acetates of Guar gum

e) Cationic derivatives of Guar gum

f) Sulphated Guar gum

g) Guar gum formate

h) Guar gum acryl amide

i) Borate cross linked Guar gum

j) Reticulated Guar gum

k) Carboxy methyl hydroxy propyl Guar gum

l)Depolymerised Guar gum

APPLICATION of Guar Gum

37

Guar gum is a white to creamy coloured, free flowing powder and free from

extraneous matter. Its ability to suspend solids, bind water by hydrogen

bonding, control the viscosity of aqueous solutions and form strong tough

films, have accounted for its rapid growth and use in various industries.

Industrial grade Guar Gum is used in Paper, Textile Processing, Explosives,

Detergents, Drilling Fluids, Ceramics, Paints and many other industries.The

purified grade is used in the Pharmaceuticals, Dialectic, Cosmetic and Food

Industries. Guar gum is a natural product, and because it has the ability to

swell by hydrolyzing with water, it can be used in a variety of water systems

for food and industrial applications. Guar gum can viscosify, stabilize, and

emulsify water systems as well as bind moisture to itself.

TEXTILE PRINTING:

Guar gum is used as a thickener for direct as well as discharge printing and

in wide range of tailor made products based on printing styles, types of

fabrics and dyes, as well as types of printing machines.

Oil Well Drilling :

Guar Gum when used in oil well drilling muds, gives a better colloid thereby

reducing water losses. It regulates the viscosity of mud solution, stabilises

and regulates the flow properties of the drilling muds.

38

F ood, Pharmaceutical & Dialectic Industries

Guar Gum in pure form when used in the ice creams acts as a superior

stabiliser and gives the right texture by preventing the formation of coarse

ice crystals. The present trend is to use agro-based Guar Gum only for Ice

cream, without any Additives or Preservatives, in place of Carboxymethyl

Cellulose (CMC), which is a chemical derivative of cellulose and therefore

objectionable, in Europe , Japan and America for Food Products.

In squashes, sauces and sherbets, it functions as a suspending agent and as a

stabiliser. It has got a low calorific food value, and it is an excellent bulk

laxative. It is used as a suspending agent for Calamine and Barium Sulphate.

It increases the mechanical strength of tablets during pressing. It readily

disperses in water. It is used in jellies and ointments as a thickener. It

imparts good viscosity and gives better foam stability in shampoos. It is

compatible with glycerol and is used in tooth-pastes.

Bakery Industry:

39

It is used in the Bakery Industry, in Bread, Pastry, Cakes and Cookies. On

dry mixing prior to dough making in Bread, it helps to retain moisture and

hence the weight of Bread. It keeps the Bread smooth, pliable and fresh for

longer time and imparts milky white bleached appearance to Bread.

Grass Growing / Erosion Control :

Guar gum has a major application in the grass growing  and  erosion control

industry where it is used as a water binder to retain moisture on the soil

surface, particularly on slopes where the addition of guar gum to the water

systems will help to anchor the hydro seeding mixture to the slopes and seal

in the moisture. It is used in systems that protect against hydraulic lift and

shear forces created by high-volume discharges, so whether grass is grown

on slopes, channels, or straight-aways, from roadside to residential lawns,

golf urses to athletic fields to parks, using guar gum prevents soil erosion

and enhances grass growing.

Cosmetics:

40

Guar Gum is soluble in cold and hot water and this solution is not attacked

by Bacteria. Guar Gum Protective colloid forming capacity results in

emulsion stabilisation. It is also a good thickener and suspending agent in

Cosmetics.

Fish Farming :

Guar gum is used as a binder in the fish feed pellets.

The binder keeps the pellets from disintegrating

quickly when placed in water and greatly reduces the

consumption of fish feed in the pond.

Explosives (as Water Blocking Agent in Nitro-glycerine, Slurry Explosives, Ammonium Nitrate & Dynamite Explosives) :

41

By mixing Guar Gum in Ammonium Nitrate, Nitro-glycerine & Oil

Explosives, even in wet conditions explosive property is maintained. This is

due to the better swelling, water blocking and gelling properties of Guar

Gum.

Paper Industry:

Guar Gum is used in paper manufacture as a better additive. It gives denser

surface to the paper used for printing. Guar Gum imparts improved erasive

and writing properties, better bonding strength and increased hardness. Due

to improved adhesion, it gives better breaking, mullen and folding strengths.

Mining :

42

Guar gum is used in mining potash, gold, copper and platinum group metals

(PGM) as a flocculent and as a depressant.

The uses of guar gum & the share of various end uses are as following

a.Technical

Oil Well drilling

Textile Printing

Paper

Explosive

Mining

Tobacco

Water treatment

Fire fighting

b. Food-Human and Animal .

Frozen Foods

Bakery

Dairy Products

Canned Foods

Dressing

Instant Mixes

43

Beverages

Pet Foods

c. Pharmaceuticals

Laxative

Slimming Aids

Diabetic Treatment

Tablet preparation

Ointment

d) Cosmetic and Miscellaneous

Hair Setting

Soaping and Shampoos 5%

Lipsticks

Mosquito coils

DABUR CLIENTS

44

Food Grade Guar Gum

Textile Printing

Thickeners

Italy China

Germany Japan

UK South Korea

Malaysia Indonesia

Denmark Turkey

Argentina Indonesia

USA Taiwan

Brazil Vietnam

Indonesia Italy

  Germany

Our Clients of Guar Gum

Alfred L. Wolff Polypro International

Willy Benecke Rantec Corporation

C.E.Roeper GMBH Cesalpinia Chemicals s p a

Koning Lamberti s p a

BDV CHT R. Beitlich GMBH

Danisco Caldic

Distribution Network (Asia)

Head Office :Dabur International Limited

P.O. Box 16944Jebel Ali UAE

45

Phone: + 971 4 8817689Fax: + 971 4 8817734

Distribution Through India Headoffice

# Country Distributor Name Contact Person Tel Fax

1 Afghanistan

M/S Zaman Nizam Ltd.

2 Bangladesh Advanced ChemicalIndustries Ltd.

Mr. S Alamgir Tel : 8802-9885694 Fax : 8802-9884784

3 Bangladesh M/S Shyama Associates Limited.

Mr. A. B. Chowdhury

Tel : 8802-9565564 Fax : 8802-9554137

4 Hongkong M/S Green Concepts Company Ltd.

Mr. Della Mark/ Dr. Alexander Yuan

Tel : 00852-882-4848

5 Japan M/S. Beauty World Limited.

Ms. Michiyo Kobayashi-President

Tel : 045-5051588 Fax : 045-5051588

6 Maldives M/S. Lily Enterprises Pte. Ltd.

Fax : 960-326774.

7 Malaysia. M/S. Total Health Concept Sdn Bhd.

Fax : 00603-755 4113

8 Philippines Assad Mini Mart. Mr. A. Ali Tel : 00632-5261349 Fax : 00632-5214837

9 Singapore M/S. Naina Mohamed & Sons (Pte) Ltd.

Tel : 65-7416455 ( 4 Lines )

Fax : 65-7413904/3889363

10

Singapore M/S. Jothi Impex. Tel : 56372139 Fax : 5.6e+07

11

Thailand Geeta International. Dr. Khare Tel : 0066-2-2911968/6881145

Fax : 0066-2-6881146

R & D DEPARTMENT

Dabur's main asset is its knowledge base and the backup

of research initiatives through modern science. Dabur deals

mainly with traditional Ayurvedic products, we take care to

46

conduct rigorous trials and authentication of processes so that our consumers get

the best. Dabur Research Foundation (DRF), set up in 1979 as an independent

research organisation, spearheads the R&D activity of the Company. DRF is well

equipped with the most modern research facilities and more than 125 highly

qualified scientists from diverse fields like Ayurvedic doctors, chemists and

phytochemists, botanists, agronomists, clinical pharmacologists, microbiologists,

food technologists, bio- echnologists, oil technologists, oncologists, and so on. We

have been involved in developing products for consumer applications as well as

highly specialised areas of genomics, proteomics and bio-informatics. Through the

ceaseless quest of our scientists in frontier areas, Dabur has been able to mark a

presence even in critical aspects of health care like cancer therapy. 

Our Research Areas

Dabur Research Foundation is not only limited to conducting tests and trials, but carries

out research in over 10 diverse areas: 

Ayurvedic Research - relating traditional knowledge with modern science

Pharmaceutical Research - developing and testing drugs

Phytopharmaceuticals - getting better resources from nature 

Biotechnology - scientific techniques for preservation

Agronomy -- scientific regeneration and propagation 

Personal Care Products - developing natural solutions

Analytical - studying and testing active chemicals

47

Synthetic Chemistry - developing new molecules and intermediates

Oncology Research and Molecular Biology - researching new anti-cancer remedies 

New Drug & Peptide Research - developing new drugs and delivery systems 

Food Research - developing healthy and natural foods 

Clinical Research - studies and tests for total safety of drugs

Highlights

1986 - Starts experimental and clinical studies on herbal and Ayurvedic formulations, conducting more than 200 validation studies to ensure the quality of ingredients as well as finished products.

1988 - Keeping consumer preferences in mind, develops Hajmola Candy - a candy variant of Hajmola digestive tablets that gives a tangy, sweet-sour taste.

1990 - A modern analytical laboratory equipped with HPLC, HPTLC, GLC set up

1991 - To break into cancer research, DRF sets up an oncology screening laboratory.

1993 - Strengthens the value of Chyawanprash as an immunity builder after conducting more than 12 clinical trials to validate traditional claims of its immunomodulation properties. 

1994 - First organisation in the world to isolate the anticancer drug, Paclitaxel, from the leaves of Himalayan Yew Tree using a unique eco-friendly process that doesn't harm the tree. This facilitated manufacture of cheaper anticancer medicines.

1995 - Taking a lead in beauty care, DRF develops Vatika Hair Oil, a value-added coconut based hair oil that improves on plain coconut oil. 

1996 - Bringing the taste of traditional Indian kitchens to modern households, DRF develops ethnic cooking pastes branded and marketed as the Hommade range. 

48

1997 - Catering to health conscious people looking for natural nourishment, DRF develops preservatives-free fruit juices, launched as Real Juices.

1998 - Develops New Livfit for hepatitis B & E virus infections

1999 - Continues with oncology research by developing 2 more plant-based anticancer drugs.

QUALITY & POLICY

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

49

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 organisation. We are intellectually honest in advocating proposals, including recognizing

risks.

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.

ANNUAL REPORT

Dabur India declares Financial Results for fiscal 2005-06, adopts US GAAPApr 25, 2006, New Delhi

50

Board declares 350 per cent dividend for the fiscal, its highest so far

The Board declared a final dividend of 100 per cent (post-bonus) today.

Company had announced 150 per cent (pre-bonus) dividend earlier during the year. On a like-to-like basis this translates into a 350 per cent dividend for the fiscal. Dividend Payout stepped up to Rs 100.32 crores (excluding Dividend Tax)

The company had announced a Bonus issue earlier this year in the ratio of 1:1. As a result the effective share capital increased from Rs 28.64 crore to Rs 57.33 crore

Dabur (Consolidated) annual sales up 23.6 per cent to Rs 1899.57 crore, net profit jumps 44.3 per cent to Rs 226.6 crore

Q4 net profit surges by 14.346.4 per cent to Rs 63.3149.96 crore, sales up by 21.5 per cent to Rs 479.93 crore.

Dabur India Limited (DIL) annual net profit grows 27.4 per cent to Rs 188.57 crore, sales up 8 per cent to Rs 1369.68 crore.

Q4 profit soars by 20.6 per cent to Rs 49.7122 crore, revenue up by 6.4 per cent to Rs 332.69 crore.

Financial Results as per US GAAPRevenues as per US GAAP are net of VAT/Sales tax and excise

Particulars Audited for the year Ended on

  31.03.06 31.03.05

Revenue * 1720.0 1368.4

Cost of Revenue 944.8 759.9

51

Gross Profit 775.2 608.5

Net Income 219.0 161.2

Earning Per Share    

Basic 3.8 2.8

Diluted 3.8 2.8

Total Assets 1040.4 943.8

Cash and cash equivalents 48.9 13.9

Liquid mutual funds 41.0 43.8

Reconciliation of net Income as per Indian GAAP and us GAAP

Particulars Audited for the year Ended on

  31.03.06 31.03.05

Consoliated net profit as per Indian GAAP

214.2 155.8

Loss on sale of long term investement net of deferred tax

8.6 759.9

Additional despreciation on property plant & euipments

(7.3) (0.3)

Deferred taxed adjustment 2.5 6.0

Others 1.0 ( 0.30)

Consolidate net profit as per US GAAP

219.0 161.2

52

53

VALUE ADDED

100%

R & D

Purchasing

Inbound Logistics

Production

Sales & Marketing

Outbound Logistics

Customer Care

Valu

e A

dd

ed

54

55

Markets State Qty (mt) % (Vol)Jodhpur Rajasthan 60000 48Bikaner Rajasthan 30000 24

Ahmedbad Gujarat 15000 12Shivani Haryana 15000 12

Markets- Dissimination

56

DISTRIBUTION CHANNEL

DABUR INDIA LTD.

Traders Manufacturers Blanders/Solution

(In Importing country) (Importing Country) Makers

.End Users

57

Indian Industry in Guar Gum Market

Indian industries are manufacturing either Guar Gum Split or Guar gum

Powder. There are more than 110 split units in India, and total installed

capacity is more than 6 lakhs tones per annum. All the split units have

indigenous plant and machinery. Split is available in various grades, in terms

of purity 90%, 92%, 95% and 97%. There are more than 25 units which

manufacture textile grade powder from splits. The total industry is estimated

at about 2.25 lakhs to 2.50 lakhs tones per annum. The products

manufactured in India are mainly food grade guar gum powder and some

modified guar gum derivatives for textile printing industry. There are a few

large manufacturers like IGI, HICHEM, Dabur, Vikas WSP etc. who

produce value added derivative for export as well as domestic market. The

total domestic consumption of guar gum powder inclusive of splits from

various end-use sectors is about 30,000 TPA presently (Textiles 5,000 MT,

paper 2,500 MT, Explosive 1,500 MT, Food & Pharma 800 MT, Oil well

Drilling 130 MT, Cosmetic & others 150 MT). This is expected to reach

over 50,000 MT by the year 2005.

58

International Markets in Guar Gum

The major share of the guar processed in India is exported either in form of

semi processed product i.e. refined splits or in form of guar powder. In the

recent years export of modified/derivatives gums have also started. The

exports of guar products during last three years is given in the following

table.

EXPORT OF GUAR PRODUCTS FROM INDIA Qty. in MT Value in lakh Rs.S.N. Products 1998-99 1999-00 2000-01 Qty value Qty value Qty value A Garments 348 272 184 122 172 124

B Refined 33647 26539 44518 31576 43955 20598 Guar, Spilts

C Pulvarised 58000 45959 67393 48680 83856 38774 & treatedGum

USA is the major importing country followed by Germany. Both of these

countries account for more than 50% of India's exports of guar products. The

other important importing countries from India are Netherland, U.K., Japan

and Italy.

Higher quotes hit guar gum powder exports — Processors blame

futures exchanges for high price

Chennai , Sept. 23

EXPORTS of guar gum powder have slowed down on sharp fall in guar

Cyanmopsis tetragonolobus) production that has been hit by poor rainfall.

With the production fall leading to rise in guar seed prices, the processing

ndustries are complaining of their units turning unviable. They are, in

59

particular, blaming futures exchanges for the increase in guar seed and gum

prices in the last fortnight. However, officials of futures exchanges deny

these charges.

Guar (cluster beans) requires two phases of rainfall before sowing, one

during budding and one more during blossom. Rainfall failure during

budding has resulted in production fall. "This year, production is expected to

be three lakh tonnes against the normal six lakh tonnes. Last year, thanks to

good rainfall, the production was 7-8 lakh tonnes," a processing industry

source said from Jodhpur, Rajasthan.

Guar gum is produced from the seed and this is turned into powder. The

powder is used in a host of industries, ranging from bakery, dairy, meat,

dressing and sausages, beverages, pharmaceuticals and cosmetics, textile

printing, mining, water treatment and paper.

"Exports from the country are to the tune of Rs 700 crore and indigenous

sales is Rs 300 crore," said Mr Giridhar Lal Saradha, President of Indian

Guar Gum Manufacturers Association.

"There is shortage of crop this year but we feel there is too much of

speculation in the futures exchanges which has affected the processing

industry," he said.

"Speculation has led to volatility in the market and we are unable to give

quotes to our foreign buyers," said Mr B.L. Soni of Shri Ram Gum and

Chemicals, Jodhpur. "For example, one buyer came to us and we quoted

$1000 a tonne for the powder. By the time he could get back to us after three

days, guar seed prices had gone up and we had to quote a higher price thus

losing a client," he said.

"Futures trade is a price discovery mechanism and we find the price

behaviour normal. During September 1998, the prices had touched Rs 3,000

60

a quintal for guar. Last year, it ranged between Rs 1,000-2,100 and in 1999,

it ruled over Rs 2000," said Mr Narendra Gupta, Chief Business Officer,

National Commodity and Derivatives Exchange (NCDEX).

Currently, spot price for guar is Rs 1,880 a quintal. In the futures market, it

is quoted at 1,983 a quintal for October delivery, Rs 2,122 for November

and Rs 2,223 for December. "See the current and December prices. Because

of this, we are unable to make any purchase," says Mr Soni.

"The problem is more acute in the case of guar gum," says Mr Saradha. The

current price for guar gum is Rs 5,469 a quintal. For October delivery, the

price is Rs 5,773, while for November and December it is Rs 6,061 and Rs

6,281 respectively.

Officials of futures exchange point out that such charges are being made

without understanding the functioning of futures trade. "In futures trade,

delivery is negligible as the participants close out their position," said a

futures exchange official.

World over, just 0.2 per cent of the total contract is delivered, while in India

it is a little higher at 0.5 per cent.

"If any seller says the buyer is unwilling to deliver, let them come to us. We

will ensure that the delivery takes place," said Mr Gupta.

According to Mr Saradha, the daily turnover of guar futures is Rs 1,500

crore. "This is higher than the annual turnover of our industry," he said.

"We have done whatever we could to ensure there is fair trade. We have

raised margins and told some participants to cut their positions. We cannot

be going and telling people to stop trading," Mr Gupta said.

"At least 20 days ago, the prices for guar were ruling at Rs 1,400 a quintal.

The users could have utilised that opportunity," he said.

61

But guar gum powder manufacturers say the high prices have almost stopped

exports. "In July, we did trade for $900 a tonne. In August, we quoted

$1,000. Now, we cannot suddenly quote $1,500 a tonne," Mr Saradha said.

Futures exchange officials point out to a series of measures carried out in the

last two weeks to quieten things. "We are doing our best. The whole system

is transparent," they said.

Processors, on the other hand, fear that this could lead to users looking for

alternatives such as starch, tamarind kernel powder, especially in textile

printing, and carboxy methyl cellulose.

62

RESEARCH METHODOLOGYA) TYPE of research

a)Research design -Descriptive research .b)Data type- - Primary data

c) Contact method - Internet schedule d) Method of data - Structured schedule

B) – Sampling Designa) Sampling technique

-Judgement b) Sampling Unit- Dabur India Ltd.

M.I.A. Alwar (Raj.) c) Sampling Size -100

63

Q. -1. Do you use Guar gum in your manufacturing process ? Ans.-

Q. 2. Are you aware about that Dabur India Ltd. Produces guar gum ?Ans.-

yes no

70 30

yes no20 80

64

Q. 3. For what purpose you require Guar gum ?1. In food applications.2. In industrial applications

food application industrial application10 90

Q. 4. If you are using Guar gum in food manufacturing than in how many ways you use it ?Ans. -

1. As food additive 2. As food ingredients 3. As emulsifiers 4. As preservatives

food additive

food ingredientsemuldifierspreservatives

20 10 50 70

65

Q. 5. Are you satisfied with Quality of Guar gum, you are using ?

Ans.- Yes No

95 5

Q. 6. At which measurement you use Guar gum ?

Ans. 200 mesh100 mesh

Q. 7. At which viscosity you Guar gum ?5000-35003500-42003500-400050-150

Q. 8. At which level of moisture of Guar gum, you use in production ?

Ans. 12 max 10 max

66

Q. 9. If you are using the Gaur gum in india then specify the name of company ?

Ans.

Hindustan Gums Ltd.Ace Gums Pvt. Ltd.Amba Gums Ltd.Dabur India Ltd.

Q. 10 at which price level, you are purchasing Gaur gum ?

Ans. 150000-200000 Rs./ton200000-250000Rs./ton

67

Conclusion

The major conclusion of the study are given below :

Guar Production:

a) Production pattern of Guar is erratic as it is largely grown in rain fed

areas.

b) India has dominant position in production of guar in the world with

estimated share of about 80%.

c) It is possible to increase area under guar particularly in Rajasthan where

Bajra is grown on more than 40 lakh hectares. At current level of

productivity and prices, the cultivation of guar is more profitable, as

compared to competing crops like Bajra and Moong.

d) Productivity is poor because farmers cultivate on marginal soils and

hardly use any inputs. Good quality seeds are not available. The seed

replacement rate in guar is only 0.1% perhaps the lowest in all the cultivated

crops.

e) It is possible to grow Guar seed in arid and semi-arid areas of

nontraditional states like Tamil Nadu, Karnataka, Andhra Pradesh,

Maharashtra, Madhya Pradesh and Uttar Pradesh. But it would depend on

assured market and remunerative price.

f) It is possible to have two crops in a year in certain areas where irrigation

facilities are available. Second crop can be taken after Rabi (April-July) but

short duration varieties would be needed which should mature before onset

of the monsoon.

g) Agricultural Scientist of the country are confident of developing the

thermo-photo-insensitive varieties of Guar which would be suitable for non-

traditional areas and for cultivation in the summer.

68

Further research on development of varieties of Guar with higher gum

content, disease resistance, more productivity etc. is going on.

h) The industry's knowledge about the developments in agricultural research

is poor. In case of guar although chemical analysis of different varieties is

available and the processors could exercise preference for varieties with

higher gum contents, but is not being done due to lack of knowledge by the

trade and industry. The parameters for buying are quite subjective like

colour, shape and size. Even farmers are not aware of varieties suitable for

their area.

i) Guar is considered as a minor crop by the State Agriculture

Departments and Agricultural Universities, who give more

attention to crops like cereals, oil-seeds and pulses.

ii) j) For the optimum utilization of soil moisture, guar can be grown

as an intercrop or as mixed crop with Bajra. With marginal

reduction in the yield of Bajra, there would be additional

production of guar and farmer's profits would be higher besides

advantages of nitrogen fixation in soil by guar.

Market:

a) India is single major producer of Guar in the world and Guar splits and

Powders are being exported to more than 60 countries. The total export of

Guar Gum is estimated at 1.5 Lakh MT per annum by the year 2005 and

onwards. With India's captive consumption of Gaur Gum about 50,000 TPA,

the total demand of Guar Gum by the year 2005 has been estimated at 2.0

Lakh MT.

b) Value-addition is poor. The pulverized gum is largely sold as a

commodity. About 40% of the exports are still in form of refined splits.

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c) The growth in exports during last 4 years was due to failure of guar crop

in Pakistan which offered an opportunity to Indian exporters. A normal crop

in Pakistan could jeopardize India's position.

d) Cheaper substitutes of Guar are available Guar for industrial application.

Tamarind kernel powder has considerably replaced Guar Gum in textile

sector. Similarly Cassia Tora is expected to substitute guar gum in textiles,

pet food etc. Only food and pharmaceutical end-users have stable demand

due to increasing preference for natural products.

e) USA and Germany are the major importing countries accounting for more

than 50% of exports from India. Considerable quantities of value added

derivatives are being re-exoorted from European countries.

f) In the global market, India is in a dominant position. At present there isn't

any competition. However there is a cut-throat competition amongst the

exporters of India.

g) The steep increase in the price of Guar is a cause of concern for the end-

users. For major non-food applications Guar is being replaced by cheaper

substitutes.

h) There is a good potential for marketing of value added Guar based health

foods, dietary fiber, slimming-aid, fat replacers, medicines etc. in the

international markets. For technical grades, the potential for exporting value

added derivatives exists in the areas of oildrilling and textiles.

i) Imports of Guar gum in some of the European Countries are from Intra

European trade only. Countries like Austria, Ireland, Sweden, Greece,

Portugal etc. hardly import any Guar Gum from India. Similarly countries

like Mexico and Canada largely import from USA.

j) The value addition/margins of overseas suppliers from re-exports is much

more than the value addition/margins of Indian Suppliers.

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k) The information on domestic consumption as well as export potential is

also not available to industry.

1) Harmonised product codes meant for Guar products are not being used by

internationally important trading countries. While India is using Harmonised

product codes, US and E.U. countries are using different codes which is

perhaps resulting in some discrepancies in the data.

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RECOMMENDATIONS:

A) Augmentation of Guar Supply:

There is a strong relationship between price and consumption of most of the

products. In order to ensure steady growth in the consumption of guar

products it would be very important to contain the price of guar seed at a

level which is remunerative to farmers as well as affordable for the

consumers. Steps need to be taken for increasing the farmers' income by

improving productivity. This can be done by:

a) Good quality seeds, suitable for different agro climatic conditions should

be made available. The use of improved and appropriate seeds can increase

the productivity up to 20-25%.

b) The scientific management of crop is very important. The present level of

knowledge of farmers and use of inputs like high yielding varieties of seed,

rhizobium culture, weedicides, pesticides and fertilizers is poor. Thus there

is an urgent need to educate the farmers. For this initially 15-20 training

programme should be organised in selected villages having higher

production by using the resources of ICAR, State Universities and other

institution. Demonstration farms should also be organized.

c) At present the large acreage of guar is under rainfed conditions, therefore

production is dependent on the vagaries of nature. The cultivation of guar

should be promoted in irrigated areas too. This can be done with the help of

State Agriculture Department by providing extension services and inputs to

the farmers.

d) A number of farmers in Rajasthan feed guar seed to their cattle. This is a

wasteful practice as it can't be digested by the animals. The farmers need to

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be educated on this and advised to switchover to cattle feed or other

concentrated feeds like deoiled cakes, guar meal etc.

e) For the cultivation of summer crop of guar in irrigated areas, suitable

short duration varieties should be developed. New varieties having high gum

content, bold size, white colour need to be developed. Photothermo-

insensitive varieties also need to be developed for cultivation in non-

traditional areas/different climate conditions.

f) Guar should be promoted as an intercrop wherever Bajra is grown. This

will give additional production of guar without affecting the yield of Bajra.

This needs to be promoted on priority basis as this would increase

production of Guar without increasing the area by replacing other crops.

g) For production of a range of new varieties of guar suited to different agro-

ecological conditions and having the desirable processing traits, the

agricultural institutions such as Agricultural Universities in the guar

growing states of Rajasthan, Haryana, Punjab, Central Arid Zone Research

Institute (CAZARI) at Jodhpur, All India Co-ordinated Research project on

Arid Legumes at Bikaner and Bureau of plant Genetic Resources, New

Delhi, needed to be encouraged and supported. For the commercial

multiplication of the new varieties of guar seeds, companies like Indo-

American hybrid Seeds, pioneer Seeds, Madyco, State Seeds Corporations,

National Seeds Corporation, Nath Seeds etc. need to be encouraged.

h) For the research on guar and extension activities it would be desirable for

the industry to develop backward linkages. The agricultural research

institutions and government agricultural departments have several priorities

and certain limitations. For ensuring long term supply of raw materials at a

reasonable price the industry wouldv have to take some initiative. There are

many successful examples in the country where industry has developed

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backward linkages i.e. Pepsi for tomatoes in Punjab, Amul and other State

Dairy Federations for milk. Even sugar mills provide extension services and

at a few places distribute tissue cultured plants to the sugarcane growers. In

tandem with research institutions the industry could immediately start

activities like adoption of 'seed villages', purchase and distribution.of guar

seed besides extension activities.

i) In order to overcome quality complaints on account of microbial

problems, suitable sterilization techniques like irradiation need to be tried.

j) Efforts in development of new equipment and machinery for processing

guar and testing the quality of raw material and finished products are

required.

k) Concerted efforts in the area of agricultural research for guar i.e. plant

breeding and agronomical practices should be undertaken (keeping in view

he industry requirement) in close interaction with the industry.

1) Varieties having high yield and gum content with proven inbuilt

resistance to various diseases and having short duration need to be evolved

suitable for various agro climatic zones. Increased emphasis on hybrid

technology needs to be given. Developing suitable hybrids would boost the

guar seed production substantially.

m) The studies on soil moisture retention and its optimum utilization by the

crops particularly in rainfed areas with poor rainfall need to be carried out

and practices should be made popular through incentives to farmers.

n) Different countries are following different product codes for reporting

import and export statistics which causes difficulty in assessment of the

consumption in some countries e.g. Netherlands. APEDA could take it up at

appropriate level to ensure consistency in use of product codes all over the

world. The present systems for classification also need improvement. At

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present there is only two categories i.e. refined guar splits, guar gum treated

and pulverized. Third category should be added i.e. modified/Chemically

derived guar. This would help in better understanding of the value added

products.

B)R&D Activities

a) The price realization on protein rich 'Kurma' is very poor due to toxicity.

A few units have facilities for toasting of Kurma (low cost equipment needs

to be developed). Possibilities of developing other value added products (as

from soybean) should be explored. Higher realization on by-products can

bring down the price of guar gum.

b) In order to overcome quality complaints on account of microbial

problems, suitable sterilization techniques like irradiation need to be tried.

c) Concerted efforts in the area of agricultural research for guar i.e. plant

breeding and agronomical practices should be undertaken (keeping in view

the industry requirement) in close interaction with the industry.

d) Efforts in development of new equipment and machinery for processing

of guar and testing the quality of raw material and finished products is

required.

e) Varieties having high yield and gum content with proven inbuilt

resistance to various diseases and having short duration need to be evolved

suitable for various agroclimatic zones. Increased emphasis on hybrid

technology needs to be given. Developing suitable hybrids would boost the

guar seed production substantially.

f) In rainfed areas where guar is being grown specially in Rajasthan, the

studies on management of watershed development programmes need to be

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intensified so that in case of erratic rainfall, the irrigation at critical stages be

provided to achieve higher productivity.

g) Cropping system research determining most promising output in terms of

biological productivity and economic profitability under optimum input

conditions needs to be intensified and demonstrated to farmers. This would

encourage mixed cropping of guar in additional areas.

h) The studies on soil moisture retention and its optimum utilization by the

crops particularly in the rainfed areas with poor rainfall need to be carried

out and practices should be made popular through incentives to farmers.

C) Information

a) It has been observed that there is lack of information on production of

crop and also international demand pattern. It is important to make available

timely and correct information on crop production forecasts, price-trends,

demand, etc. The use of professional agencies in this regard is suggested.

The information should be disseminated fast amongst processors. Modern

communication techniques like websites should be used for quick

availability of the information.

b) There is need for quick dissemination of information on agricultural

research, developments in technology etc., to the industry.

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D) Market Development

a) Efforts should be done for reaching and establishing a presence in new

markets. Market development efforts in countries like Austria, Ireland,

Sweden, Greece, Portugal, Canada, Mexico etc. should be undertaken so that

supplies to these countries may be made directly.

b) Special incentives could be given for export of branded (Indian brand)

Guar products. This will help in the practice of developing a brand equity for

the product. A brand signifies to some extent consistent quality and

reliability in the international markets. The mindset of exporters has to shift

from taking the relatively easier practice of commodity trade and shift to

value added specialty products and branded products.

c) Proper incentive schemes could be considered for development of value

added products by devising some value addition norms by the concerned

departments.

d) For the long term survival of guar industry, it is very important to develop

domestic demand. The association of guar gum processors should take up

with the Ministry of Food Processing and authorities administering PFA to

permit use of guar in processed food. There should be considerable

programmes planned by the Research institutions to promote the

applications of guar products as food ingredients. These programs must

address the food processing industry, as also the exporters within that sector.

e) Efforts should be done for 'de-commoditisation' of guar powder. The guar

processing units need marketing orientation. The product diversification is

desirable with inclusion of value added products branded and packed as per

users requirement. Making blended formulations doesn't entail high

investments. Products like stabilizers should be made and efforts should be

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done for marketing in India and Middle-East to start with. Similarly

derivatives like guar hydroxypropyl could be made and marketed in Middle-

East and other countries. There is potential for exporting modified guar

gums for the textile industry (carboxy methyl, hydroxypropyl, hydroxyethyl

guar gum). The guar based preparation as health foods, natural medicines

etc. also have good prospects and are sold at a premium.

f) Indian processors should be encouraged to participate in intenational

exhibitions, conferences, etc., on food ingredients, hydrocolloids, etc., which

would help Indian industry.

g) As the world leaders in processing guar gum already have collaboration in

India or Pakistan with large units, the medium scale could think of strategic

alliances with other overseas companies. Like processing stabilizer for food

additives manufacturing/distribution companies, processing oil-drilling

chemicals for the companies supplying other chemicals to oil-drilling

companies or directly supplying to the latter.

E) Concerted/Joint EffortsThe industry sector has to put its act together and market "India Inc". The

software services sector has done it. Consortium efforts in further

popularizing the Indian product with overseas end user companies, in

developing backward linkages, in undertaking research and development on

the important aspects, on developing and information bank, in self

regulation, etc., are needed. It will be rather difficult for individual units to

try and penetrate the value added products markets internationally, and to

provide technical services to end users. Perhaps a consortium can do it

better. The industry association can examine similar efforts in other sectors

to draw guidelines on how to make it operate smoothly.

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F)Training

The skill levels of the technical manpower of the industry needs to be

upgraded. This can be done by organizing seminars, wherein technical staff

of processors could interact with experts. For keeping the industry updated,

experts from the developed countries may be invited for such interactions.

Short duration training courses could also be organized for production and

quality control staff. These courses could be on plant hygiene, safety, energy

conservation, operational efficiencies, new processing techniques, new guar

derivatives, quality problems, methods for improving quality, use of the

latest equipments in processing/quality control, ISO etc.

G)Dedicated Research Institution on Guar

Currently various institutions are engaged in some research on guar, these

efforts are defused for want to close co-ordination. A central body is

required to monitor work on all aspects of guar i.e. Agricultural Research,

R&D on Processing Techniques, Development of New Applications,

Development of New Value Added Derivatives, Training, Exports

promotion, collection and Dissemination of Information. This institute may

be set up at a suitable location in close interaction with the Association of

Guar Gum processors. Flavours and Fragrances Development Centre have

been set up at Kannauj (U.P.) by the Central Government. This institute is

doing developmental work encompassing cultivation of aromatic plants,

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processing techniques, R & D work, collection and dissemination of

Information, Market Development etc.

The Institute also undertakes the processing of flavours, essential oils and

perfumes on job work basis in the pilot plant which the institute has set up.

The officials of APEDA as well as Association of Guar Gum Processors

may visit this institute and consider one for Guar on similar lines.

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Biblography

BOOKS: - 1. Kotler, Philip, “Marketing Management”, TheEleventh Edition, Prentice-Hall of India Pvt. Ltd.,New Delhi.

2. Desai, Vasant, “A Study of Rural Economics”, SecondEdition, Himalayan Publishing House 1990.

3. Kothari, C.R. “Research Methodology”, SecondEdition, Wishwa Prakashan.

4. Kothari, C.R. “Quantitative Techniques” ThirdRevised Edition, Vikas publishing House Pvt. Ltd.,New Delhi, 1998

WEB SITES: -

www.dabur.com

www.google.com

www.yahoo.com

www.daburnet.com

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