Dabur
Dabur
Dabur
Submitted By
ARUN SANDHU
BBA (gen) 6TH sem
Enrl.No: 0761241708
(………………………………)
Project guide (internal) and
Faculty
DIRD
DECLARATION
(ARUN SANDHU)
BBA (Gen)
5th Sem
Enrollment no. 0761241708
CONTENTS
• Acknowledgement
• Introduction
• Company Profile
• Product Profile
• Research Objective
• Marketing Research
• Research Methodology
• Conclusion
• Bibliography
• Questionnaire
ACKNOWLEDGEMENT
1978- Dabur launches the Hajmola tablet. This is the first time a
classical ayurvedic medicine is branded –from Shudhabardhak
Bati to Hajmola Tablet.
1994- Dabur India Limited comes out with its first public issue.
The Rs. 10 share is issued at a premium or Rs. 85 per share. The
issue is oversubscribed 21 times.
1995- Dabur enters into a joint venture with Osem of Israel for
food and Bongrain of France for cheese and other dairy products.
PRINCIPLES
OWNERSHIP
This is our company. We accept personal responsibility and
accountability to meet business needs.
PEOPLE DEVELOPMENT
People are our most important assest. We add value through
result driven training and we encourage and reward excellence.
CONSUMER FOCUS
We have superior understanding of consumer needs and develop
products to fulfill then better.
TEAM WORK
We work together on the principle of mutual trust and transparency
in a boundryless organisation.
INNOVATION
Continuos innovation in products and processes is the basis of our
success.
Dabur India ltd. (DIL) is the largest player in the ayurvedic
pharmaceuticals sector. The company has interests in sectors like
Healthcare, Personal care, Ayurvedic pharmaceuticals and Food
Products. The company enjoys strong brand equity in most of the
segments where it has a presence with brands like, Chawanprash,
Hajmola, Pudin Hara, Vatika, to name a few. The company is
focusing on ayurvedic and herbal care products. Currently, the
company’s product stable includes around 450 products. Dabur
enjoys an excellent distribution network of over 5500 distributors
reaching out to nearly 15,00,000 outlets. Interestingly, all the drugs
under its stable are outside the purview of The Drug Price Control
Authority (DPCO).
Healthcare Segment
Healthcare segment is one of the major revenue contributors for
DIL. Brands such as Chavanprash, Hajmola, Pudin Hara, Hingoli,
Janam Gutti, Lal Tail, and Madhuvanni fall under this stable. For
the 250 Crore-chavanprash markets, the company is facing tough
competition from Zandu, Hamdard and Baidyanath. However, as
per ORG data the market for chavanprash is expected to double in
a couple of years. In the pediatric segment the company has
products like Janam Gutti, Lal Tail gripe waters, and Madhuvanni
cough syrup.
Pharmaceuticals segment
Dabur has around 300 ayurvedic medicines sold through ayurvedic
practitioners. The company has 80% market share in this segment. All the
products are outside the purview of the DPCO. The company is majorly
into Oncology and branded formulations. The company launched Topotel
(Topotecan), the first camptothecin derivative for ovarian and lung cancer
in India and Amiphos (Amiphostin) for various anti-cancer regiments in
India. DIL is only the second in the world to manufacture anti-cancer
drugs Paclitaxel and Docetaxel acquired from Pfizer in 1996. The
company has established a subsidiary in UK namely Axol Labs., for
manufacture of generic oncology products. However, global acceptance is
a major sensitivity factor.
Other Segments
Other segments include Food products division, which has been
restructured into a 100% subsidiary company. The division has
brands like Honey, Lemoneez lemon Juice, Real fruit juices,
Hommade pastes and sauces. The subsidiary netted a loss of
11.55 cr on sales of 29.67 cr. This was on account of stiff
competition faced by the company and wafer thin margins on
trading goods. The company however has a strong nationwide
distribution network. The skin care division with brands like
Gulabari and Samara also grew by 19% during the year.
The company has entered into a 50:50 JV with Bongrain of France
for manufacture and marketing of Cheese and speciality dairy
products. The brands launched by the company include Delicieux
and Le Bon.
With an effect to stress upon core competence the company has
decided to put off plans for foray into the newly opened Insurance
sector for which it had entered into a JV with Allstate of
Finland.The promoters hold 70% of the paid up capital of the
company. Hence, to increase the liquidity of the stock in the
market the company has introduced a stock split of 1/10th at Re.1/-
per share paid up.
The company enjoys a P/E valuation similar to those, as the
majors from the FMCG sector. Hence, it would be essential to
compare the company’s valuation on a comparative basis along
with these companies.
Britannia HLL Nestle SKBC Cadbury Dabur
EPS (RS.10/-) 18.3 48.6 10.2 21.5 16.2 27.1
P/E 35.7 35.6 42.9 17.8 43.3 30.9
RONW (%) 42.1 50.9 34.1 42.7 19.1 24.2
ROCE (%) 32.9 46.9 24.6 42.7 18.1 12.7
Evidently, Dabur’s P/E falls in line with other industry majors but
RONW and ROCE earned by the company fall way short of others.
We feel that the restructuring exercise undertaken by the company
should cumulate into re-rating of the stock from current levels. The
stock is expected to remain as market performer in the medium
term as the effect of the restructuring exercise would be visible
only in the subsequent quarters.
“DABUR” Balance Sheet as on 31st March, 2005
Schedule As At 31st As At 31st
March, 2004 March,2005
(Rs. IN LACS) (Rs. IN LACS)
SOURCES OF FUNDS
Shareholders' Funds
(A) Share Capital A 2852.06 2,850.67
(B) Reserves and Surplus B 29,151.56 23,299.61
32,003.62 26,150.28
LOAN FUNDS
(A) Secured Loans C 6,300.86 5,889.32
(B) Unsecured Loans D 22,601.14 23,604.26
28,902.00 29,493.58
TOTAL 60,905.62 55,643.86
APPLICATION OF FUNDS
FIXED ASSETS
(A) Gross Block F 36,788.52 33,695.43
(B) Less: Depreciation 11,705.07 9,844.76
( C) Net Block 25,083.45 23,850.67
INVESTMENTS G 4,717.40 4,783.22
Current Assets, Loans & H
Advances
A) Inventories 14,429.29 12,744.78
B) Sundry Debtors 11,818.21 8,939.93
C)Cash & Bank Balances 6,910.55 5,672.69
D) Loans & Advances 8,065.31 6,995.22
41,223.36 34,352.62
Less: Current Liabilities & E
Provisions
A) Liabilities 8,662.80 7,079.11
B) Provisions 2,159.87 1,247.35
10,822.67 8,326.46
NET CURRENT ASSETS 30,400.69 26.026.16
Miscellaneous
Expenditure
(To the extent not written IA 704.08 983.81
off or adjusted)
NOTES TO ACCOUNTS P
TOTAL 60,905.62 55,643.86
DABUR RESEARCH FOUNDATION
Registered Office
Asaf Ali Road, New Delhi
Corporate Affairs
Rouse Avenue, New Delhi
Zonal Headquarters
North Zone : New Delhi
South Zone : Hyderabad
East : Calcutta
West: Mumbai
Branch Offices
Ahmedabad
Bangalore
Chandigarh
Chennai
Cuttack
Guwahati
Indore
Jaipur
Kanpur
Kochi
Patna
Kathmandu
Russia
United Kingdom
FACTORIES
West Bengal
Narendra pur ( Garia )
Kalyani
Bihar
Daburgram
Rajasthan
Alwar
Uttar Pradesh
Sahibabad, Ghaziabad
Noida, Ghaziabad
Himachal Pradesh
Baddi – I, II, III
Madhya Pradesh
Katni
NEPAL
Kathmandu
EGYPT
United Kingdom
QUALITY POLICY
QUALITY OBJECTIVES
To focus on its customers and successfully meet their needs and
requirements.
Plant locations:
The company hived off the foods division into a separate 100%
subsidiary during the year. The company has Real Fruit Juice,
Hommade range of condiments, Lemoneez and other brands in
its portfolio. The company launched its Coconut Milk to its
portfolio during the year.
Dabur Nepal Private Limited:
Subsidiary
Dabur Nepal Pvt Ltd-(79.96%)
Dabur Overseas Ltd-(100%)
Dabur Egypt Ltd
Dabur Finance Ltd-(100%)
Dabur Foods Ltd-(100%)
Dabur Oncology plc-(100%)
Transfer Agents
MCS Ltd
Unit Dabur India Ltd
Sri Venkatesh Bhawan
212-A Shahpurjat
New Delhi 110 049
Ph: 011 - 6494830 6495832
Fax: 011 – 6494152
Exchanges
The Stock Exchange-Ahmedabad
The only big ogranisation selling honey at that time was khadi
urban markets.
ayurvedic formulations.
honey through its distribution stream, all that the company had
reach.
By the late 1980's, small regional brands had started getting
branded honey market. And some more were on their way in,
Dabur.
2004, Dabur Honey took to national level advertising for the first
FOREIGN BRANDS
Capilano (Australian)
Lagneese (German)
Fragata
LOCAL BRANDS
Parag
Ankur ( Khadi Gram Udyog)
Dadi’s ( Hoshiarpur)
Kabliwala
Tripta
Hadras (U.P.)
Mohun’s
Uttarakhand
Bajaj
Honeylime
Baba
Balaji
Leheson
Lekhsons
Allied’s
Indica
PRODUCT LIFE CYCLE
&
P
R
O
F
I
T
S Profit
($)
Time
market share of 66% (in value) and 44% (in volume). Its
honey.
Ghaziabad.
Dabur honey.
PROCEDURE OF MARKETING RESEARCH
Develop the
research Plan
Collect the
information
Analyze the
information
Present the
Findings
MARKETING RESEARCH
Marketing research is defined as "The systematic and
their implications.
OBJECTIVES OF MARKETING RESEARCH
retailers etc. who are human beings. Human beings have a tendency
to behave artificially when they know that they are being observed.
research results.
4. The MR projects generally take longer time. The time by which the
change.
SOURCES OF INFORMATION
It is necessary to prepare a list of the information, which is needed
to attain the objectives.
1. PRIMARY DATA
It consists of the original information or new data gathered
specifically for the purpose. Questioning and observing are the two
basic methods of collecting primary information.
2. SECONDRY DATA
It consists of information that already exists somewhere having
been collected for another purpose.
DELHI
Greater Kailash – I, II
Vasant Vihar
Lajpat Nagar
New Friends Colony
Cannaught Place
Nehru Place
Defence Colony
NOIDA
Sector – 18
Sector – 27
Sector – 29
Sector – 37
GHAZIABAD
Nai Basti
Ghanta Ghar
Ghandhi Nagar
Kavi Nagar
Raj Nagar
QUESTIONNAIRE DESIGN
The questions seeking the information were used. The main aim
was to analyze the market of honey which was done by making
questionnaires for the retailers, kids and ladies (mothers) who
could give the maximum information. The type of questions used
were closed-ended, open ended , multiple choice and dichotomous
questions. A pilot survey was made to test the feasibility of the
questionnaires.
RESEARCH METHODOLOGY
8%
92%
INTERPRETATION
It was observed that 8% of the retailers don’t keep honey at all
while 92% of the retailers do keep honey.
10%
10%
80%
INTERPRETATION
It was observed that the 80% of the retailers told that there is no
effect of the present gifts while 10% of them have said that they
are attractive and remaining 10% were either uniformed about the
gifts or they told nothing.
4%
44% 52%
Keep Only Dabur Honey Other Brands Including Dabur Don't Keep Dabur Honey
INTERPRETATION
It was observed that 52% of the retailers keep only Dabur Honey
while 4% of them don't keep Dabur Honey and remaining 44% of
the retailers keep other brands also.
5%
2%
9%
5%
10%
52%
17%
INTERPRETATION
It was observed that 52% of the retailers have told that sale of
Dabur Honey is due to its brand name, 17% said due to quality,
10% due to purity, 5% because of advertisement, 2% because of
promotion schemes and 5% due to easy availability.
30%
70%
INTERPRETATION
It was observed that 27% of the retailers complaint about the
crystallized honey while remaining have no such kind of
complaint.
39%
61%
INTERPRETATION
It was observed that 61% of the retailers were unsatisfied while
remaining were satisfied with the margin.
ANALYSIS II (KIDS)
28%
72%
INTERPRETATION
It was observed that 28% of the kids don’t eat honey at all while
remaining 72% do eat honey.
13%
39%
48%
INTERPRETATION
It was observed that 39% of the kids consume plain honey, 48%
consume it with bread, milk or paranthas and 13% of them
consume it as both.
34%
66%
INTERPRETATION
It was observed that 66% of the kids consume honey once a day
while 34% of them consume honey twice or thrice a day.
26%
33%
7%
34%
As food items
As Snacks
As Medicine
As Both ( Food Items & Snacks)
INTERPRETATION
It was observed that 33% of the kids consume honey as food items
(At a specific time ie. in morning or evening), 34% of them
consume it as snacks (ie. at any time of the day), 26% of them
consume it as both snacks and food items. Remaining 7%
consume it as medicine.
23%
53%
24%
INTERPRETATION
It was observed that 53% of the kids prefer chess as free gift
while 24% of them prefer sketch pens and remaining prefer snake
& ladders as free gift.
1%
9%
90%
Seen and remember the Dabur advertisement Not Seen the advertisement
Other advertisement
INTERPRETATION:
It was observed that 90% of the kids have seen and remember the
Dabur advertisement, while 9% have not seen the advertisement
and 1% have seen the other brand’s advertisement.
ANALYSIS III (MOTHERS)
14%
86%
INTERPRETATION
It was observed that 14% of the respondents don’t consume honey
at all.
35%
65%
Kids Adults
INTERPRETATION
44%
39%
INTERPRETATION
24%
25%
INTERPRETATION
90%
INTERPRETATION
5%
40%
38%
INTERPRETATION
It was observed that 40% of the respondents generally consume
500gms., 38% consume 200gms., 5% consume 1 Kg. And 17%
consume 50 gms. and 100 gms.
ANALYSIS
BRAND STRENGTH / WEAKNESS
OPPORTUNITIES
• New flavours of honey can be introduced.
• New packaging like sachet and plastic packaging can be
launched.
• In Ghaziabad, markets for expensive / Foreign honey has been
developed as yet, so there are only few brands including local
brands among which only Dabur is doing well.
Sales composition of Health care business
Health -----
supplements 23%
Digestives & -----
candies 12%
2004-05 -----1166.5
2005-06------1163.6
2006-07------1232.3
2007-08------1148
2008-09------1268.7
PROFIT AFTER TAX (Rs. crore)
2004-05 -----22
2005-06------16.2
2006-07------20.8
2007-08------38.6
2008-09------44.54
EARNING PER SHARE
2004-05 -----10.15
2005-06------9.16
2006-07------10.25
2007-08------11.85
2008-09------14.8
RETURN ON CAPITAL EMPLOYED
2004-05 -----19.2
2005-06------14.4
2006-07------19.6
2007-08------34.4
2008-09------38.7
CONCLUSION
So, late last year, it decided to narrow down its target audience
from housewives to kids while continuing its strategy to position
honey as a food product. The aim: to grow the market by
promoting large scale/frequent consumption. The result from the
second stage of repositioning, says Duggal, are currently being
evaluated. "The real results will emerge now but the immediate
challenge is to maintain the current growth rate," says Duggal.
BOOKS
Marketing Management : Philip Kotler
Marketing Research : Boyd
WEBSITE
www.Dabur.com
NEWSPAERS
Business Standard
Economic Times
Times of India
QUESTIONNAIRE (CHILDREN)
1. [i] Name…………………………………………………………
[ii] Age ………………………………………………………….
4. Do children …………………………………………..?
(i) Ask for it ž
(ii) You give it yours self ž
14. Which brand comes to your Mind first when you heard of the
word "Honey"?
(i) Dabur ž (ii) Zandu ž
(iii) Himani ž (iv) Any other (Specify)
…………...
15. Which brand do you consume?
(i) Dabur ž (ii) Zandu ž
(iii) Himani ž (iv) Any other (Specify)
…………
5. Which brands?
[i] Dabur ž [ii] Himani ž
[iii] Zandu ž [iv] Any other [specify]
……………
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