Dabur India Limited is a 128-year-old Ayurvedic and FMCG company with a portfolio of over 250 herbal products. It has undergone strategic changes over four phases: initially focusing on Ayurvedic drugs, then expanding product lines and markets, restructuring under professional management to compete globally, and most recently rebranding and focusing on key brands and markets. Dabur now has annual revenues of over $600 million from consumer care, health, and international divisions, with a goal of doubling sales by 2010 through these divisions as well as foods.
latest report about Dabur india, description about everything influencing Dabur in the world of business.
CONTENTS
Background
Values
History
Milestones
Mergers & Acquisitions
Products
Financials Of Dabur India
Progress and Future plans
Opinion on Future plans
Supply Chain of Dabur India
Distribution Network
Opinion on supply Chain References
The presentation contains Marketing Strategies of Hindustan Lever Limited(HUL) which helped it in becoming India's number 1 in FMCG. It is made as an assignment report in first semester of MBA.
Dabur India Case Study 2014 By Subin KannanSubin Snk
Mba Degree University
Dabur india
Case study
Alternatives
Suggestion
Conclusion
Managerial Economics
Business Environment
indian University
Calicut university
Research
First Prize
School Of Management Studies
latest report about Dabur india, description about everything influencing Dabur in the world of business.
CONTENTS
Background
Values
History
Milestones
Mergers & Acquisitions
Products
Financials Of Dabur India
Progress and Future plans
Opinion on Future plans
Supply Chain of Dabur India
Distribution Network
Opinion on supply Chain References
The presentation contains Marketing Strategies of Hindustan Lever Limited(HUL) which helped it in becoming India's number 1 in FMCG. It is made as an assignment report in first semester of MBA.
Dabur India Case Study 2014 By Subin KannanSubin Snk
Mba Degree University
Dabur india
Case study
Alternatives
Suggestion
Conclusion
Managerial Economics
Business Environment
indian University
Calicut university
Research
First Prize
School Of Management Studies
Apple: pestel, swot, Fair Made Phone: marketing mixJorden Hellemans
A pestel and swot analysis about Apple and highlighting its ethical problems. Marketing mix about Fair Made, a foundation that wants to create a ethical smartphone.
Marico is one of the successful Indian conglomerates with its interests aligned with manufacturing industry and retailing consumer goods in addition to catering services in the beauty space. The origin of the company takes back us to the year 1948 when a trading business family, Mariwala based in Mumbai started Bombay Oil Industries Ltd. BOIL facility was mainly comprised of a vegetable oil refinery, a chemical plant and a coconut oil extraction plant. BOIL started to diversify into different branded customer products. They incorporated Marico Foods Limited in 1988 and shifted the consumer products division of BOIL into it. In the year 1990, BOIL made an agreement with Marico to share its vegetable oil brand Saffola and Coconut oil brand Parachute. The company successfully accomplished several acquisitions in the later years. The most notable one is the acquisition of P & G's anti-lice treatment brand, Mediker in 1999. Marico acquired the Parachute and Saffola brands in the year 2001 from Bombay Oil Industries Ltd. It also entered into skin care industry in 2003 by acquiring Sundari LLC of the USA, a company catering luxury ayurvedic products. The other popular brand acquired by Marico is Manjal, Kerala based herbal bath soap. In this report, we try to understand different marketing parameters on which Marico’s performance can be evaluated like SWOT analysis, PESTEL analysis and Marketing Mix.
In this project i have done a business analysis of India's well renowned company naming Dabur. now first of all i have given basic info, of company then applied PESTEL analysis, life cycle analysis of one product, marketing mix strategy, company's KPI and CSF, porter five forces and finally conclusion.
Company Review is a topic from subject Contributors Personality Development.
Here I the company which I have taken is a famous consumer product company known as Hindustan Unilever Limited (HUL).
I hope this will help you to get all your required information plz like it and share it.
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What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Improving profitability for small businessBen Wann
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Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
2. Introduction
Dabur India Limited (DIL) is the fourth largest FMCG Company in India with business interests in
Healthcare, Personal care and Food products. It has revenue of about US$600 Million (over Rs 2834
Crore) & Market Capitalization of over US$2.3 Billion. Dabur India is a 128 years old company and
is the world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur
since its inception has focused on manufacturing and selling Ayurvedic products targeted at the
mass consumer segment. There are number of personal care products, Ayurvedic tonics and oral
care products which it launched between 1940 and 1970 have become leading brands today.
Dabur’s top nine brands had 65% or more market share in their respective product categories.
These include the health tonic Chyawanprash, Hajmola digestive tablets and candy, digestive Pudin
Hara, Dabur Lal Dant Manjan and Dabur Amla hair oil. Dabur manufactures over 450 products,
covering a wide range in health and personal care.
Dabur India has 14 manufacturing locations—eight in India and six in contries like Nepal, Egypt UK
etc.It has three Subsidiary Group companies - Dabur International, Fem Care
Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt
Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African
Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE)
and Jaquline Inc. (USA). It has wide and deep market penetration with 50 C&F agents, more
than 5000 distributors and over2.8 million retail outlets all over India.
Dabur India limited is divided into three SBU’s.
1) Consumer Care Division: This SBU caters to the consumer needs pertaining to Personal
Care, Health Care, Home Care & Foods. The major Brands under this SBU are Dabur, Vatika,
Hajmola, Real and Fem.
2) Consumer Health Divison: This SBU pertains to the Ayurvedic medicines and ayurvedic
OTC. Major categories in traditional formulations include Asav Arishtas, Ras Rasayanas,
Churnas, Medicated Oils.
3) International Business Division: It caters to the health and personal care needs of
international consumers in middle east, north and west Africa, EU and US. This division has
high level of localization of manufacturing and sales & marketing.
3. Phase –I
Dabur was set up by in 1884 by Dr. S K Burman in West Bengal as a proprietary firm for
manufacturing of ayurvedic drugs .Dabur is an acronym of the name DAktar BURrman, its founder.
In the year 1896 a small manufacturing plant was set up near Calcutta for mass production of
Ayurvedic Drugs and Chemicals. Dabur started its operations in 1896 with the manufacture of drug
called Plagin to counter the wide spread plague at that time. In the 1900’s next generation of
Burman’s took the firm further and they believed that Ayurveda was the mantra which can be
sustainable and can meet the needs of low income countrymen. As a result a research laboratory
was formed in 1919, followed by manufacturing units at Kolkata (then Calcutta) and Bihar. In 1936,
Dabur India Pvt Ltd. was incorporated which took over the business from the proprietary firm.
Dabur expanded its distribution network in the next two decades. It launched Dabur Amla Hair Oil
in 1940 and Dabur Chyawanprash in 1949. In 1969 there was unrest and business uncertainity in
calcutta which led the family to expand its manufacturing operations in Delhi. The next product
came out in 1970 in the form of Dabur Lal Dant Manjan followed by the Hajmola Tablet in 1976.
Through the 80s and 90s Dabur performed well but was established as a brand for the elderly
because of its image of an Ayurvedic Company Although later in 1989 it launched Hajmola candy
which was targeted towards the children segment.
In 1986, Dabur became a public limited company through a reverse merger with Vidogum Ltd. and
was renamed as Dabur India Limited. A reverse merger is acquisition of a public company by a
private company which allows the private company to bypass the lengthy and complex process of
going public. In the following year to cater to the global market’s needs it set up a facility at Noida
Export processing Zone. In 1991,Dabur Overseas Ltd. was set up in Cayman Islands to cater to the
needs of overseas investment and this later funded the set up of Dabur Egypt Ltd., in Cairo, which
was set to manufacture personal care and food products. In 1992, Dabur entered into 49:51 joint
venture with the Spanish confectionery major Agrolimen group under the name General De
Confeteria India Ltd. (GCI) by investing an amount of INR 92.3 Million. Also Dabur entered into a
biscuit joint venture named Excelcia Foods with Nestle. In 1993 Dabur decided to go to public and
came up with an initial public offer in 1994 with Rs 10 face value share at a premium of Rs 85. The
issue was oversubscribed 21 times and total amount raised was Rs 541.5 million. The reasons for
tapping the equity markets were:
4. Additional funds were required to expand production and set up new factories
Launch diversified range of products and compete against FMCG MNC’s
In 1994, Dabur reorganised its business in three separate divisions of Sales, Marketing and
Operations.In 1995, Dabur launched Vatika and hoped to change the perception in the consumers,
and was successful to a certain extent too. In 1997, Foods division was carved out which consisted
of Real Fruit Juice and Homemade cooking pastas. Also in the same year the company launched a
unique initiative called STARS (Strive to Achieve Record Success) to achieve accelerated growth in
the future years.
Phase-II (1998-2003)
In 1997, Dabur had started facing issues as two out of its four flagship brands - Chyawanprash and
Hajmola - were slipping due to product life cycle issues. Another of its flagship brand ‘Dabur Amla
Hair Oil’ was also growing at a less-than-satisfactory rate, at five per cent. Post-liberalization, with
the Indian economy opening up and foreign players entering Indian markets, Dabur realized that
competition will be picking up very soon.
In April 1997, Dabur hired the leading management consulting firm McKinsey & Co. for mapping
out a comprehensive restructuring plan for its varied businesses and strengthen its competitive
position. McKinsey primarily offered the following advices:
1) To improve profitability, stay focused on core competencies i.e. ayurveda and health care
products
2) Advised Burman family to lay off from the day-to-day operations and leave the company in
the hands of professionals.
Dabur paid a fee of Rs 10 crore to McKinsey & Co. and started following its advice religiously. In
1999, It off loaded its entire 49 per cent stake in the confectionery joint venture General De
Confiterria to its Spanish partner Agrolimen for Rs 35 crore. The Rs 100 crore GCI product portfolio
comprised of two categories -- Boomer bubble gum and soft-filled candies, Bonkers and Donaldo.
While setting up the confectionary jointventure GCI in 1994, DIL had estimated that the booming
candy and bubble gum market would provide it with ample opportunity to turn the venture into a
profit maker. The Spanish partner was roped in considering the highly intensive technology nature
5. of the confectionery market. However, the joint venture has not worked out according to the plan as
only a handful of products saw the light of the day.
Dabur India limited also scaled down its stake in Excelsia Foods to 40 per cent, handing over
control to in favour of Nestle SA to become a minority partner. Dabur sold its 20 per cent stake in
Excelcia Foods Ltd for Rs 10.6 crores. The company also reduced its exposure to Dabur Finance,
where it held 90 per cent stake. The finance arm sold its retail business to Birla Global Finance in
1999. It also discontinued its Samara line of herbal cosmetics that it introduced in early 1997.
The Burman family handed over management of the company to a professional CEO and limited
their role to strategic inputs at the Board level in 1998. The decision was taken in response to the
changing dynamics of business and to inculcate a spirit of corporate governance within Dabur India.
Post-1998, the Burman family has receded from the day-to-day operations of the Company and has
strength of 4 members in Board of Directors.
In 2001, Family Council was constituted for formalizing the promoter family’s role in managing
the business interests encompassing all group companies. Dabur roped in Accenture to define clear
roles and responsibilities of its board of directors and the chief executive officer to prevent any
overlap. The roles of Management Committee, Board of Directors and Family Council were defined
and formalized.
In 2002, Dabur again roped in Accenture to study its sales and distribution system. As per its
recommendations, Dabur restructured its Pharmaceutical business and separated it from its FMCG
business.
Dabur tried to reposition itself as a ‘herbal specialist’ rather than flogging its ayurvedic lineage
alone. Confining itself to the ayurvedic platform would have been restrictive as the domain could
only be stretched to a certain level and not beyond.
DIL also decided to have five main brands — Dabur, Vatika, Anmol, Real and Hajmola, and every
product was to be migrated to one of these. Not only would it have helped Dabur to focus but also it
would help it to aggregate its media spend.
6. Phase III (2003 onwards)
In 2003, Dabur collaborated with Accenture so as to keep itself competitive. The need of the hour
was to work smarter and faster so as to improve profitability and revenue growth. Accenture
advised Dabur to focus on the following key areas:
Competing on core competencies, while outsourcing non-core functions to trusted third-
party providers.
Viewing information technology (IT) as a strategic asset that creates real values—not
simply a cost to be managed.
Streamlining processes wherever possible
VISION 2010: ANALYSIS
1. Doubling of Sales Figure from 2006.
After the successful implementation of 4-year business plan from 2002 to 2006, Dabur had launched
another vision for 2010. One of the plans for 2010 was to double the sales figure from what it had
been in the year 2006. From the exhibits, we can see that the sales figure at the end of the year 2006
was Rs. 1757 crores and by the end of year 2009, it was Rs. 2834 crores which shows an increase of
61% in the sales. Though it has not yet reached the double figure, it seems close to achieving the
figure in 2-3 years.
2. Growth to be achieved through international business, homecare, healthcare and foods
The division wise revenue is:
Consumer Care Division (CCD) – 69%
Consumer Health Division (CHD) – 7.9%
International Business Division (IBD) – 18.1%
Others – 5%
Dabur delivers revenue growth of 20.9% in the 9 months ended 31st December 2009.
o CCD grows by 16.1%
7. o CHD grows by 15.8%
o IBD grows by 31.1%
3. Southern markets will remain as a focus area to increase its revenue share to 15 per cent
The south India market share has increased from 6% in 2002 to 12% in 2009. This is the result of the
initiatives taken by Dabur to suit the south Indian market e.g. launching herbal toothpaste in Kerala
and Tamilnadu and launching Dabur Lal Dant Manjan as Dabur Sivappu Pal Podi etc. The market
share increased after the acquisition of Balsara as Balsara had strong presence in the south and
western region. The other factors were POS promotion, customised packaging and commercials &
customised product launch.
Dabur’s Rebranding Exercise
In the year 2004-05 a whole new brand identity of Dabur was born. The old Banyan tree was
replaced with a new, fresh Banyan tree.
The logo was changed to a tree with a younger look. The leaves suggesting growth, energy and
rejuvenation, twin colors reflecting perfect combination of stability and freshness, the trunk
represented three people raising their hands in joy, the broad trunk symbolized stability, multiple
branches were chosen to convey growth, and warmth and energy were displayed through the soft
orange color. ‘Celebrating Life’ was chosen as a new tag that completely summarized the whole
essence.
8. PEST Analysis of Dabur India Limited (Period 2005 onwards)
Political Factors
The key factors that have triggered growth for the FMCG industry in the period include
reduction in excise duties, relaxation of licensing restrictions and reduced dominance of
unorganized sector due to creation of level playing field. With the revival in demand in the
FMCG sector and capacity planning done by all major FMCG companies in tax haven areas
the future looks promising. Also, the government thrust on agriculture and rural economy
has facilitated improved demand for the FMCG products.
The hair oil industry is witness to a large amount of unbranded oil manufacturers that
account for nearly half of the total coconut oil market. This also provides a significant
upside potential for companies like Marico and Dabur. The implementation of Value added
tax is also expected to tilt the balance in favor of organized players. Given the fact that
there is only a moderate scope for differential in coconut oil segment, the players
concentrated on value added oils like Amla, Badam and so on. The addition of these high
margin products in the portfolio also leverage the players against the no frills coconut oil
segment. They have been successful in the venture with brands like Vatika, Dabur Amla
(Dabur) and Hair & Care (Marico) firmly rooted in the markets.
While the coconut oil brand of Marico, 'parachute' grew by 8% in volumes in FY '05, the
growth of value added oils like Sampoorna, Shanti Amla and Hair & Care has been
comparatively faster at 14%. Even for Dabur, the flagship brand 'Dabur Amla' reached a
milestone in FY '05 by crossing a turnover of Rs 200 crore and registered a 16% growth.
This speaks of the success of the value added products.
In 2008-09, finance minister’s decision to reduce CENVAT rate to 14% was in line with the
GST roadmap, and this coupled with lower income tax incidence on individuals will
accelerate disposable incomes, and thus augurs well for the FMCG sector.
9. Economic Factors
Better reforms and investment policies attract foreign investments, which ultimately
improves the standard of living of the people in that country. With improved standard of
living more and more consumers prefer using branded FMCG products which have so far
remained an aspiration. Consumers who are already using branded products will upgrade
themselves to premium products. We could expect similar recovery in our economy in the
FMCG segment in the coming years.
FMCG sector is going to be in the limelight with strong economic fundamentals, rising
demand and a growing GDP. The future growth is expected to come from newer segments
such as the youth and through increased rural and small town penetration. The Internet
and e-commerce will change the dynamics of this industry helping companies improve
their procurement, distribution and selling efficiencies. FMCG market remains highly
fragmented with almost half of the market representing unbranded, unorganized sector
products. This presents a tremendous opportunity for makers of branded products who
can convert consumers of unbranded products to branded products.
In the scheme of things, ‘Dabur Foods Limited' was merged with Dabur India Ltd. in 2007.
It was now an over Rs 2,200-crore entity including the Rs 200-crore from Dabur Foods. It
thus became one of the business divisions of Dabur India, alongside consumer care division
(CCD) that encompassed all the personal care and home care products, and consumer
health division (CHD). Dabur also made retail venture under the health and beauty format,
through its wholly owned subsidiary, H&B Stores. It envisaged selling products ranging
from personal care, cosmetics, baby care to over-the-counter drugs.
Social Factors
In 2004, the frequency of usage of oral care products in India as compared to developed
world was very low, giving scope for growth to the sector. Per capita consumption of
toothpaste in the country was only 70 gm compared with 300 gm in Europe and 150 gm in
Thailand. Also, a critically low dentist to population ratio in our country, results in low oral
10. hygiene consciousness and widespread dental diseases. This provided a good opportunity
to expand the market and encourage people to use modern dentifrice to improve oral
hygiene.
Moreover, it is one of the larger players in the toothpowder category. However the
company is witnessing negative growth rates in the category, as there seems to a shift of
the consumer from toothpowder to toothpaste segment. The company is compensating for
the loss in the category by launching Dabur Red toothpaste that has grown into Rs 50 crore
brand in two years of its launch.
It was also worthwhile for Dabur India Ltd. to consider inorganic growth. Even though
Balsara (with brands Promise, Meswak, Babool etc.) was making losses, it did possess
synergies with the growing oral care business of Dabur. Dabur estimated the market for
this category to be Rs. 2500 crores growing @ 10% p.a., which made the market very
lucrative. Thus, acquiring Balsara was an obvious step to grow inorganically.
The penetration levels of shampoo are abysmally low in the country. The penetration in
urban areas is around 65% while it’s just 35% in rural areas. Also the per capita
consumption of shampoo is just 16 ML compared to 1000 ML in UK and US. This provides
an opportunity to the players to improve the market and their size. The Indian shampoo
market is characterized by sachets. Around 70% of total shampoo sales are through
sachets. The general trend in the international markets is to introduce a brand through
sachets and thereafter upgrade the consumer to bigger bottles. Dabur thus shifted gears to
anti-dandruff shampoo (Dabur Vatika anti-dandruff shampoo) in 2004. It also relaunched
brand Vatika in 2007.
Technological Factors
The market size of bleach products in India is around Rs 85 crore and is growing at 15%
with Fem holding 60% market share in it. The market size of hair removing cream is
around Rs 110 crore and is growing at 22% with Fem having around 7% market share. The
11. liquid soap market size in India is around Rs 50 crore and is growing at 25%, where Fem
has 2 main competitors, Dettol and Lifebuoy.
In 2009, Dabur acquired 72.15% stake in Fem Care to provide the company with the
technology to enter high-growth skin care market with an established brand name 'FEM'.
Apart from Fem bleach, other popular brands by the firm are Oxybleach cream, Botanica
anti-ageing cream, Stratum colour protecting hair conditioners, SAKA men's bleach and
Bambi fabric softeners.
Fem is world leader in bleaching cream category by tonnage. Fem brand is very well placed
in India and aboard. With this acquisition, Dabur will become key player in skin care
category. Fem has reach of around 25000 parlours, which can be leverage by Dabur for
promoting its own Gulabari skin care products and its Vatika brand. Dabur was thinking of
launching its products into ayurvedic skin care category, will delay its launch by couple of
months due to acquisition. The company will continue its initiative in skin care category
through Gulabari, its ayurvedic products which will launch shortly and through Fem.
SWOT Analysis for Dabur India Limited
Strengths
Unique “Ayurvedic and Health” Positioning
Extensive market penetration with 50 C&F agents, more than 5000 distributors and over
2.8 million retail outlets all over India*
High brand awareness and perception of Dabur, Vatika, Hajmola, Réal
Monopoly status in multiple product categories like digestives (90% MS), branded
honey(75% MS) and Chyawanprash(65% MS)
Weaknesses
Low Penetration in Rural areas in Food, Health Supplements and Home care categories.
(Appendix 5)
12. Dabur’s R&D work is low and insignificant, which is a major weakness in FMVG as it is
constantly creating new products.
Opportunities
Packaged Foods category
Sugar free food and health care substitutes e.g. Sugar Free Chyawanprash
Expanding size of pie in Home care segment due to efforts by firms like GodrejSara Lee and
niche products like Jyothy laboratories
Increasing Modern trade is a good indicator for Personal care segment as it provides higher
visibility, higher rotations and a personal touch(relevant for premium products).
Threats
Counterfeit products in the Food and Home care category
Increasing competition from private labels
Increasing bargaining power of modern trade especially in the Personal Care segment