Project Report on Dabur India-Company and Strategic Analysis
Case Study on Company Analysis of Dabur India
PhD Research Proposal on Dissertation on Dabur India
Company Background
·
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.
Production
·
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.
Competitive Positioning
·
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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