Dabur Case Study an Essential Guide for Pgdm/Mba Students

Topics: Hygiene, Personal care, Health care Pages: 8 (2388 words) Published: March 18, 2011

Dabur is among the top five FMCG companies in India and is positioned successfully on the specialist herbal platform.

Dabur has proven its expertise in the fields of health care, personal care, Homecare and Foods. The business based on the vision of founder Dr S K Burman - "What is life that cannot bring comfort to others", started as a small pharmacy selling healthcare products.Two decades later the company entered the specialised area of Ayurvedic medicines and branded its products.With growing demand, Dabur shifted its operations to Delhi in 1972 and a few years later set up full-fledged research operations in healthcare. In the early 1990s, with the economy opening up, the company identified various investment opportunities to accelerate its growth.The management also realized the importance of scaling up its operations and decided to go public during mid-nineties. It is during this time that the company also decided to professionalise its operations by curtailing the role of the promoter family and inducting professionals from outside to take charge. Subsequently in 1996, Dabur India set up its own foods division - Dabur Foods, as wholly owned subsidiary of Dabur India. The company, headquartered in Ghaziabad, Uttar Pradesh, is today listed on Indian stock exchanges and commands a valuation of over

Dabur, today one of the largest FMCG companies in India, was started by the Burman family in 1884 in Kolkata (West Bengal).With a legacy of 120 years built on attributes of quality and trust,

Company Dabur

Products Foods, Healthcare, Personal care Oral care

Established 1884

Founder Dr. S. K. Burman

Distribution India, Americas, Europe, Middle East, Asia Pacific

Production plants India, UAE, Egypt, Bangladesh, Africa, Nepal


US$ 1.5 billion. Operating through various business divisions supported by manufacturing presence spread in India and overseas, the company has been ranked amongst the “Best under a Billion” list by Forbes. The company has over 12 manufacturing units in India & abroad.The international facilities are located in Nepal, Dubai, Bangladesh, Egypt and Nigeria.Three of the facilities in India are strategically located in excise duty free zones Rudrapur (Uttaranchal), Baddi (Himachal Pradesh) and Jammu.With the acquisition of Balsara, Dabur now has additional facilities at Baddi & Silvassa (Dadar & Nagar Haveli).The company has a multifruit processing plant at Siliguri (West Bengal) for production of pulp and concentrates.This is a step taken by the company towards backward integration by locating this facility in proximity to its juice plant in Nepal. Dabur Foods, the subsidiary of Dabur India has also recently acquired a fruit juice plant in Jaipur (Rajasthan). The company's promoters, the Burman family, hold majority stake in Dabur (74.31 per cent) through various associate companies.The next largest shareholders are the institutional investors including banks, foreign institutional investors and mutual funds (with 15.96 per cent stake). Private

corporate bodies, non-resident Indians and the Indian public hold the residual shares. Dabur has survived and grown into the corporate that it is today, by focusing on professionalisation. Through its progressive journey, Dabur exemplifies how a family conceived business can scale greater heights with the managerial acumen and business insights of professionals. Dabur board currently has a healthy mix of professionals and family representations – Four promoter Directors, two executive directors and six independent directors. The company also bagged the ICSI National award for Excellence in Corporate Governance in 2005. Bullish on growth, the company had recently unveiled its vision strategy for 2010 with focus on three pillars of acquisition, innovation & expansion. The acquisition & expansion exercise had started in 2005 with the takeover of Balsara in an all cash deal of US$ 32 million.The deal...
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