I DR ANINDITA BHATTACHARJEE faculty
guide of NTCC hereby declare that the project report made by ANJULI TANEJA ,
enrollment no A3104616042 of batch 2016
– 2019 is original and has not been copied from anywhere or based on any
FACULTY MENTOR’S SIGNATURE :
I ANJULI TANEJA , enrollment no
A3104616042 of BCOM HONS SECTION – A , 4TH SEMESTER , hereby declare that this Company Report OF DABUR INDIA LTD. Submitted to Amity
College of Commerce and Finance the project work represented in this report is
my own work. This work has not been previously submitted to any other
university and this report is my original work.
I would like to express my gratitude to
my teacher DR ANINDITA BHATTACHARJEE who helped me every step of the way in
completing this report and giving us suggestions and instructions. I would also
like to thank my family and friends for their guidance and support and making
me complete the report on time.
Dabur (Dabur India Ltd.) is India’s largest and most
famous Ayurvedic medicine & related products manufacturer. Dabur
was founded in 1884 by SK Burman, a physician in West Bengal with the aim
to produce and dispense Ayurvedic medicines. German
company Fresenius bought a 73.27% equity stake in Dabur Pharma in
June 2008 at Rs76.50 a share. The German company had also purchased another
17.62% shares from the market through an open offer at the same price. Burman
designed various Ayurvedic medication for diseases such as cholera and malaria.
Dabur’s Ayurvedic Specialities Division has
over 260 medicines for treating a range of ailments and body conditions, from a
simple common cold to a chronic paralysis. Dabur International, a fully owned
subsidiary of Dabur India formerly held shares in the UAE based Weikfield
International, which it disposed of on 25 th ofJune , 2012.
products have a large presence and a huge impact in the overseas market
and is today available in over 120 countries across the globe. The brand is
really popular in the middle east , SAARC countries, Africa , US, Europe and
Russia. Dabur’s Ayurvedic company which is promoted by the famous Burman family
started operating in 1884 as an Ayurvedic
medicines company from its humble beginning Dabur India Ltd has come a
long way today and has become one of the biggest Indian owned consumer goods
companies with the largest herbal and natural product portfolio in the world.
Overall , Dabur has successfully transformed itself from being a family run
business to become a professionally managed enterprise with a large workforce.
What makes Dabur apart from the others is its ability to change and be ahead of
others and always set new standards in corporate governance and in innovation
and always comes up with new things.
Dabur India Ltd is one of the biggest leading FMCG company
of India having revenue of over 8463 crores and market capitalization as high
as 44,000 crores . Building on a legacy of quality and trust of over 131 years
. Dabur is today India’s most trusted name and the world’s largest ayurvedic
and natural care company with a lot of benefits.
Dabur India is the world leader in ayurveda. Dabur’s FMCG
portfolio today includes five flagships brand with distinct brand entities ,
its popularity is increasing day by day – dabur as the master brand for natural
healthcare products. Dabur today operates in key consumer products categories
like hair care, health care, oral care skin care, home care and foods . The
ayurvedic company has a wide distribution channel, covering almost all over the world with 5.3 million
retail outlets with a high penetration in urban and rural areas.
It’s international business unit offers a range of hair,
skin and oral care products in the middle east, africa, south asia , america
and europe. The company market its products under the brands including Dabur
Chayawanprash , Dabur honey , Dabur baby, Vatika , Hajmola, Real, Dabur red
tooth paste etc.
Dabur India Ltd has inked an agreement with Starcom
Mediavest Group Dabur India Ltd has introduced an array of professional salon,
facial products for men and women under the oxlife brand , it has also
introduced Chyawanprash named Ratnaprash Sugar free which is becoming very
In 2016 Dabur came up with a New premium Natural baby care
brand Dabur acquires south african cosmetic firm Discaria trading , Dabur India
also launches fruit based aerated drinks.
The political analysis reflects on the government forces that have
an impact on how an industry such as healthcare performs. This industry has to
adhere to issues such as tax policies that are in existence. It also has to do
with issues such as consumer protection legislation and employment regulations.
These political factors could be a massive weakness for the industry. If there
are extremely strong tax policies and employment regulations, players in the
industry might have a hard time. For a company such as McKesson, it must ensure
that it adheres to issues such as consumer protection legislation. This can be
a strong marketing tool as it would improve the company’s public image.
This aspect refers to the existing economic condition in which the
players in the industry operate. It includes factors such as unemployment,
inflation, tastes and preferences of the consumers, interest rates and buying
power of consumers. All these factors have an effect on the performance of
organizations in the healthcare sector. For instance, variables such as
unemployment and the buying power of consumers could affect an organization
such as McKesson. This is because, with extremely high unemployment levels, it
would imply that customers would not be capable of purchasing products and
services of the organization. The economic factors could, therefore, act
as weakness to organizations in the industry.
This includes the demographics and culture of the consumers served
by corporations in the industry. Culture involves the beliefs, norms and values
that various consumer segments hold. Demographics include the numerical
characteristics of the population that the industry serves. Social factors
influence the performance of companies in the industry. Organizations that
mind, the culture of consumers do well in their operations. For a company such
as McKesson, it should ensure that it is aware of the norms and values of the
population it serves. This is to avoid any violation of those values. This
could be a strong marketing strategy for a long term period as culture of any
population rare changes.
Novelty and resourcefulness is at the heart of technological
advancements. Such advancements include the manner in which organizations in
the industry are able to communicate with their consumers. It also includes the
access of products and services that organizations provide. McKesson engages in
the healthcare distribution as well as healthcare technology solutions. For such
an organization, technological advancements provide excellent opportunities for
the company. The organization could also use technological innovations for
purposes of marketing its healthcare technology solutions. Marketing resources
such as the internet are accessible for use and could serve well for players in
the industry. Such are tolls that organizations in the industry can use for the
long term. Technological factors, therefore, provide an excellent opportunity
for growth of the companies.
This includes long term conservation concerns that have an impact
on businesses in the industry. Environmental conservation is a vital concern
for everyone in this twenty first century. With the effects of poor
environmental management already taking place, corporations have to go green.
Such effects include global warming, drought, depletion of the ozone layer
among others. The environmental aspect could serve to benefit or hinder the
performance of organizations. In order to use this aspect for the benefit of
the organization and public, McKesson should ensure that it is environmental
friendly. Proper waste disposal and pollution mitigation are of benefit to the
organization. This would serve as practice of corporate social responsibility
and also as a marketing tool. Jones (2006).
Legal factors include the procedures and regulations that govern
businesses in the industry. This includes safety and health laws that
organizations in healthcare provision must follow. Most of the organizations in
the industry would wish that there is the elimination of some of the
regulations that exist. This is because they view them as hindrances to their
performance. The existence of these laws is, however, essential as it regulates
the operations and ensures provision of standard products and services.
The above factors determine whether an organization is either
going to succeed or failure in its operations. In order to ensure success
companies in the healthcare industry ought to adhere to the provisions of the
factors. Failure to do so by any organization is detrimental.
Dabur India Ltd is known as one of the leading companies that
have established a strong presence in the domain of natural solutions to
healthcare. Since the past 131 years, the company has fulfilled the demand of
its target market for naturally based Ayurvedic products. The company has a
wide range of products that offer the consumers with different healthcare
options. Another important point that shows the financial stability of Dabur is
the revenue of Rs 8400 Crore. Its more than 250 products are available in
India, with a strong market presence in the international healthcare industry
as evident from the supply of its items in more than 120 regions (Dabur India
Ltd, n.d). The product portfolio includes items related to personal care, home
care and food products. An analysis of these products in terms of BCG Matrix
has been provided as follows:
The cash cows are those products that are seen as a highly
productive item for a company as it generates a high revenue. Since the product
has a high demand, the high number of sales enables the company to gain
significant financial benefit from the cash cows. These items have established
a strong hold in the market therefore do not need a great deal of resource
investment apart from the usual marketing and promotional activities. Some of
the leading products of Dabur India include hair related herbal solutions. For
instance, Dabur hair oil has been faring well in the Indian and international
market, making strong financial performance. Agarwal (2016) has indicated that
Dabur holds a prominent position in the hair oil segment in India. It has been
further noted that in 2016, more than 60% of the market share in India in the
hair oil segment belonged to Dabur hair oil categories. Another product that
has performed well in the domestic and international market is Dabur Hajmola, a
renowned remedy for indigestion in the domestic market specifically. In India
alone, the consumers are purchasing 2.6 crore tablets on a daily basis, which
indicates a large sales volume (Dabur Hajmola, n.d). Moreover, the herbal
remedy industry in India is dominated by Dabur Hajmola, as evident from the 50%
share owned by the product.
The star product is an item that is making important
contribution to the financial strength of an organization. At the same time,
the product has opportunity for further growth as the demand for the item is on
a rise. This could help the company to increase its market share which would
make the star a cash cow in the subsequent years. Growth potential in market
share is one of the key identifying factors of a star product, along with the
high sales it generates for an organization. The stars for Dabur India belong
to oral healthcare and beverage industry. Dabur toothpaste has been able to
create a significant niche in the market while the Dabur juice has attained
similar success. Bhushan (2016) has shared insight into the Indian toothpaste
market, highlighting that the red toothpaste by Dabur has been able to secure a
position among the top 3 leading brands in the country. The significant market
share shows that the company has been able to compete with the foreign MNCs,
such as Colgate-Palmolive Company. In the beverage segment, Dabur juice has
targeted the needs of the customers who want fizzy drinks, yet want to consume
healthy beverages. The option of fruit juice with the fizzy combination has
appealed the target market, increasing the demand of the product within a short
span of time, making it a star for Dabur.
The question mark as the name suggests
includes those products that are not financially contributing at the moment.
They do have some potential to grow and create an increased demand in the
market. However the present status of the products denotes an uncertain future
performance. The question marks, if able to gain significant market share could
be classified as stars, but continuation with the same level of financial
input, these products can’t be identified as the leading source of financial
strength of a firm. Despite the high sales of toothpaste, juice and digestive
tablet, there are some products that have not been able to gain a positive
response from the market. The acquisition of NewU has been speculated as a
risky decision as the company was renowned for its focus on herbal products.
The management has decided to invest 100 crore Indian Rs in the venture, which
is a huge amount in terms of investing while diversifying the business (Batra,
2015). NewU was a question mark for Dabur as it carried a great deal of risk
and could be failure for the company. On the other hand, there was also a
possibility of success which could help the company in diversifying its market
presence. Another motivator for this decision was the expectation of earning
150 crore revenue through NewU investment.
The products that are placed in the dog
category of BCG Matrix are poorly performing items being manufactured by an
organization. Due to the poor financial gains originating from the sale of
these items, the firm considers them as a liability, rather than a source of
growth. The poor financial performance necessitates the decision to stop production
of these items and save the resources to be invested in production of some
other profitable ventures. Some business decisions by Dabur have resulted in
the development of products that have not gained a significant market share.
Furthermore, these items do not have a profitable outlook in the future. Rath
(2011) has provided the example of Dabur’s Lal Dant Manjan toothpowder,
indicating the low potential of growth for this product. The consumers have a
higher demand for toothpaste and toothpowder continues to have a much lower
demand among the consumers. Therefore, the investment in toothpowder suggests
low profitability and revenue generation. Rath (2011) has further observed that
the main demand of toothpowder originates from the older consumers, however,
the demand is not significant to categorize toothpowder as a cash cow or star.