Operations Management: Dabur at a Glance
Perfection is not attainable, but if we chase perfection we can catch excellence. Vince Lombar
Dabur India Limited is the fourth largest FMCG Company in India with Revenues of over US$1 Billion (Rs 5,283 Crore) and Market Capitalization of US$4 Billion (Rs 20,000 Crore). Building on a legacy of quality and experience of over 127 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur today operates in key consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The company has a wide distribution network, covering /over 3.4 million retail outlets with a high penetration in both urban and rural markets. Dabur’s products also have a huge presence in the overseas markets and are today available in over 60 countries across the globe. Its brands are highly popular in the Middle East, Africa, SAARC countries and the US. Dabur’s overseas revenues account for over 30% of the total turnover Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur’s FMCG portfolio today includes flagship brands with distinct brand identities. Vision, Mission and Ope rations Strategy Vision: Dedicated to the health and well-being of every household Principles: Ownership: This is our company. We accept personal responsibility, and accountability to meet business needs. Passion for winning: We all are leaders in our area of responsibility, with a deep commitment to deliver results. We are determined to be the best at doing what matters most. People development: People are our most important asset. We add value through result driven training, and we encourage & reward excellence. Customer focus: We have superior understanding of consumer needs and develop products to fulfill them better. Team work: We work together on the principle of mutual trust & transparency in a boundary- less organisation. We are intellectually honest in advocating proposals, including recognizing risks. Innovation: Continuous innovation in products & processes is the basis o f our success. Integrity: We are committed to the achievement of business success with integrity. We are honest with consumers, with business partners and with each other.
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Ope rations strategy: Dabur wants to accelerate its growth by increasing profitability. Profitability will increase by improving operational efficiencies by leveraging technology. Operations as the Core Competency With a humungous distribution system and a supply chain running over a period of 100 years, Dabur has achieved excellence in managing its operations. On a consolidated basis, Dabur’s revenue grew by 29.6% to end the year at Rs. 5,283.2 crore, and the Net Profit rose 13.4% to Rs. 644.9 crore. The steady growth achieved by Dabur has been enabled by sustained investments distribution, production, supply chain management, and by driving operational efficiencies across functions. Dabur procures raw materials worth around `600 Cr from a wide base of vendors. The Company has wide and integrated distribution network for its around 800 SKU delivering to around 2100 stockist, further connecting to the thousands of retail outlets covering every small and remote part to organized stores of India. Dabur has improved distribution system through its unique Retails Excellence program, “DARE” (Driving Achievement of Retail Excellence). The Program covers a major objective as a channel focus, activating key customer, improving rural focus, rewarding distribution efficiency, maximizing brand impact and building information capabilities.
Dabur India Ltd’s Baddi Unit awarded the Silver Certification for Enhancing Manufacturing & Supply Chain...