Sunday, 5 May 2013
Project Report on Dabur India-Company Analysis Dissertation
· Established in 1884, Dabur India Ltd is the one of the largest Indian fast-moving consumer goods companies.
· Dabur India is part of the Dabur Group, which has operations both in India and abroad. Dabur has interests in healthcare, personal care, pharmaceuticals, oncology and food.
· Dabur was a closely-held family business until 1994, when it made its first public issue of stock. The promoters of the company hold slightly over 78% of the company’s shares.
· Dabur’s business is structured into a number of divisions. Its consumer care division handles products such as hair oil and shampoo. The company’s consumer healthcare division handles products such as chyawanprash, digestive enzymes and antacids. Meanwhile, subsidiary Dabur Foods Ltd handles Dabur’s packaged food products and fruit/vegetable juice. While marketing operations for these divisions are carried out separately, there is integration in procurement and supply chain functions.
· Dabur has manufacturing units located at Katni (Madhya Pradesh), Jammu and Kashmir, Uttaranchal, Rajasthan and in Kathmandu in Nepal.
· The company’s three Indian plants essentially focus on the manufacture and sale of personal care and some food products. Meanwhile, the Nepalese plant manufactures almost all Dabur products, including OTC healthcare brands such as Hajmola, Pudin Hara and Glucose D. These brands are then imported from Nepal and marketed in India by Dabur India Ltd. The proximity of Nepal to India and the trade agreements in place between the two countries make Nepal an attractive manufacturing destination for Dabur.
· Dabur was the leading player in the OTC healthcare market in 2007 with a value share of 7%. This is mainly derived from digestive remedies, where it led with a value share of more than 24% in 2007, and vitamins and dietary supplements, where it ranked second with 11%.
· Consumers are showing appreciation for traditional healthcare in general and ayurvedic remedies in particular. Consequently, the company’s share began to grow in a number of product areas at the end of the review period, including antacids, where its value share rose from under 18% to almost 19% over 2006-7, digestive enzymes (up from under 93% to almost 84%) and chyawanprash (63% to 64%). The company also drove growth in glucose powder through expanded distribution, gaining three percentage points in value share over 2006-7, rising from just under 23% to 26%.
· Dabur also drove growth through an increase in marketing and new product development at the end of the review period. The company’s Honitus medicated confectionery and cough remedies range was extended with cough lozenges and promoted with television advertisements. The company also used celebrities to endorse its range, including Amitabh Bachchan to promote Dabur Chyawanprash. In addition, it launched Chyawanshakti, an innovative variant of Dabur Chyawanprash that targets those aged 30-50 who are suffering from stress or in need of an energy boost. The company also introduced digestive remedies in single-use sachets, which appealed to low income consumers.
· Dabur is currently investing heavily in setting up production facilities in South India, with a number expected to be completed during the forecast period. This should result in stronger marketing for the company in the region, which could well boost sales of its key products. Digestive enzymes, which are dominated by Dabur with Hajmola Tablets and Hajmola Candy, is for example expected to see 38% constant value growth over the forecast period.
Source-Euromonitor International-Local Company Profile-Dabur India
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