Customer Composition and

Competitors Composition of DABUR

Submitted to: Submitted by:

Prof. Mahesh Soni Aniket Bushal
Amit Maithil
Rohit Patel
Industry (FMCG)

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion.It has a strong MNC presence and is characterised by a
wellestablished distribution network, intense competition between the organised and
unorganised segments and low operational cost. The FMCG market is set to treble from US$
11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita
consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India
is low indicating the untapped market potential. Burgeoning Indian population, particularly the
middle class and the rural segments, presents an opportunity to makers of branded products to
convert consumers to branded products.

Growth is also likely to come from consumer 'upgrading' in the matured product categories. With
200 million people expected to shift to processed and packaged food by 2010, India needs
around US$ 28 billion of investment in the food-processing industry.

Growth Prospectus:

With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
demand in the market. Because of the low per capita consumption for almost all the products in
the country, FMCG companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007, boosting
purchasing power in the countryside. However, the demand in urban areas would be the key
growth driver over the long term. Also, increase in the urban population, along with increase in
income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India accounts
for more than 40% consumption in major FMCG categories such as personal care, fabric care,
and hot beverages. In urban areas, home and personal care category, including skin care,
household care and feminine hygiene, will keep growing at relatively attractive rates. Within the
foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and urban areas.

The following factors make India a competitive player in FMCG sector:

Availability of Raw Material

Because of the diverse agro-climatic conditions in India, there is a large raw material base
suitable for food processing industries. India is the largest producer of livestock, milk,
sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and
fruits &vegetables. India also produces caustic soda and soda ash, which are required for the
production of soaps and detergents. The availability of these raw materials gives India the
location advantage.

Labor Cost Comparison

Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in
the world, after China & Indonesia. Low labor costs give the advantage of low cost of
production. Many MNC's have established their plants in India to outsource for domestic and
export markets.

Presence across value chain

Indian companies have their presence across the value chain of FMCG sector, right from the
supply of raw materials to packaged goods in the food-processing sector. This brings India a
more cost competitive advantage. For example, Amul supplies milk as well as dairy products
like cheese, butter etc.
Introduction

Dabur India Limited is the fourth largest FMCG Company in India and Dabur had a turnover of
approximately US$ 600 Million (Rs. 2,834.11 Crore fy09) & Market Capitalisation of over US$
2.2 Billion (Rs 10,000 Crore), with brands like Dabur Amla, Dabur Chyawanprash, Vatika,
Hajmola and Real. The company has kept an eye on new generations of customers with a
range of products that cater to a modern lifestyle, while managing not to alienate earlier
generations of loyal customers.

Dabur is an investor friendly brand as its financial performance shows. The company's growth
rate rose from 10% to 40%. The expected growth rate for two years was two-fold. There is an
abundance of information for its investors and prospective information including a daily update
on the share price (something that very few Indian brands do). There’s a great sense of
responsibility for investors’ funds on view. This is a direct extension of Dabur’s philosophy of
taking care of its constituents and it adds to the sense of trust for the brand overall.

The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic
medicines in a scientific manner. They have researched new medicines which will find use in
O.T. all over the country therein opening a new market.

Dabur Foods, a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices,
namely, Real and Active, together make it the market leader in the Fruit Juice Category.
4 Major Strategic Business Unit (SBU) of Dabur:

Consumer Care Division (CCD)

Consumer Health Division (CHD)

Ayurvedic

Pharmaceutical Division

CONSUMER CARE DIVISION adresses consumer needs across the entire FMCG spectrum
through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods

Hair Care products-Daburwith19%of hair oilmarket is a dominant player with Dabur Amla and
Vatika having strong brand equity. Dabur has a presence in almost all segments of hair oil. With
our focus on value added categories,we have expanded our portfolio in this segment by adding:
Vatika anti-dandruff shampoo - first mass marketed anti-dandruff shampoo having natural
ingredients to fight dandruff. The unique back label which is visible through see through bottle
and oil for Amla Litewas verywell appreciated by trade aswell as consumers.

Oral Care products - Dabur Lal Dant Manjan gained market share to
command 29.4% of total toothpowder market. The brand commands
leadership position in coloured toothpowder category. The division extended
Binaca brand equity to toothpowders also during the year with the launch of

Binaca Fresh toothpowder.

Binaca Fresh Toothpowder - This launch marked the entry of Dabur into white
toothpowder category. Binaca toothpowder was launched in refreshing blue colour pack, which
has a unique lockmechanismin its cap.

Dabur Honey is the largest player in branded packaged honey with around 40% market share.
Accredited with bringing honey out of the medicine chest to the breakfast table, Dabur Honey
continued to focus on kids in its advertising. The label was changed to addmore colour and fun
imagery to the product.

Skin Care Product:

Dabur entered this segment with Dabur Gulabari - the rose water. Positioned as a natural skin
toner, Gulabari has recorded a growth of 100% in the last two years. The company is
contemplating entry in other skin care categories, as this has a potential tobe a large market in
near future.
HEALTH CARE PRODUCTS DIVISION

Dabur's second largest division, has strong brand equity in Health care market. Its
portfolio of OTC products recorded a growth rate of 10%. Dabur's Health Care Division,
also owns twoRs.100 crore brands, Dabur Chyawanparash&Hajmola.
Dabur Chyawanparash part of Health Tonics segment, recorded a growth of 18% this
year. Chyawanparash has an impregnable position and continues to be amarket
leaderwith 66%market share amidst stiff competition from Baidyanath, Zandu
andHimani.

In Digestives segment, Dabur holds 37% market share with Hajmola, Pudin
Hara andHingoli. PudinHara pearls continued to grow at a healthy pace. Dabur entered
into Gas and Aciditymarketwith special focus onGasmarket, by expanding the PudinHara
brandwith the launch of Pudin Hara G - an effervescent powder having the goodness
ofmint, which is known for its spasmodic action. The launch is backed by an aggressive
all India advertising campaign
highlighting the USP.
 Vatika, Réal, Dabur Red Toothpaste, Dabur Lal Dant Manjan, Babool, Hajmola and
Dabur Honey
 Strategic positioning of Honey as food product, leading to market leadership (over 75%)
in branded honey market 
 Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market
share.
 Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a
row
 Hajmola tablets in command with 60% market share of digestive tablets category. About
2.5 crore Hajmola tablets are consumed in India every day
 Leader in herbal digestives with 90% market share

AYURVEDIC

The division grew by 19% and crossed Rs. 100 crore mark in sales turnover this year. This
division operates in an estimated market of about Rs. 500 crore.
Asav-arishtas - as a category continued to grow at a fast pace with Dabur's Asav-arishtas fast
finding better acceptance from Ayurvedic practitioners. Two major Asavarishtas
- Ashokarishta & Dashmularishta - were for the first time advertised on regional
television channels. The company is exploring the possibilities of making these OTC.
Emphasis was laid on educating the consumer about Ayurveda by publishing rare Ayurvedic
literature. Ayurved Vikas, an Ayurvedicmagazine, was brought out in English also. An attempt to
demystify the science and bring it to the commonman. Relationship with Ayurvedic colleges and
practitionerswas further strengthened through direct contact programme an d scholarships. In
this division Lavan Bhaskar Churna was launched in sachets. Nature care Isabgol now has a
plain variant which is also coarser. This has been launched in a new zip lock standy
sachet pack. Madhuvaani - a cough syrup – was relaunched in a new HDPE pack during the
year.
PHARMACEUTICALS DIVISION

The Pharmaceuticals Division continues to outgrow the market by clocking 29.7% sales
growth. This division is set to cross the Rs. 100 croremark this year. Branded formulations
recorded an impressive growth of over 35% this year. The company added
Alernex, a latest generation anti-allergic to its portfolio. In oncology market the company
continued to have leading position. The company added two new anti-cancer molecules,
Topotecan and Irinotecan which were produced and marketed by Indian company for the first
time.
Through there comprehensive range of products, they touch the lives of all consumers, in all
age groups, across all social boundaries. And this legacy has helped them yo develop a bond of
trust with our consumers. That guarantees them the best in all products carrying the Dabur
name . Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Dabur's FMCG portfolio today includes five flagship brands with
distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for
premium personal care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for
fairness bleaches and skin care products. 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 2.8 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,
SAARC countries, Africa, US, Europe and Russia. Dabur's overseas revenues stands at over
Rs 500 Crore in the 2008-09 fiscal, accounting for about 20% of the total turnover.

Division Contrbution Turnover

Family Products 42% Rs. 498.7 cr.

Health Care Division 28% Rs. 329.7 cr.

Ayurvedic 9% Rs. 104.6 cr.

Pharmaceuticals 29.7% Rs. 96.4 cr.

Competitors Composition:

Given Below is a Segment Wise Competitor list:

Category Dabur’s Share Main Competitors

Fruit Juice 58% Real and Tropicanna

Active

Fruit Drinks 1% Coolers Frooti And Maaza

(coolers)

Hair oil Coconut 6.4% Vatika HLL

base

Shampoo Vatika 7.1% HLL and P&G

Hair care (overall) 27% HLL, P&G and Himalaya

Chyawanprash 64% Himani, Zhandu and Himalaya

Honey 40% Himani, Hamdard and local Players

Digestives 37% Paras and local players

Vision 2010

After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur has
launched another plan for 2010. The main objectives are:

 Doubling of the sales figure from 2006

 The new plan will focus on expansion, acquisition and innovation. Although Dabur’s
international business has done well — growing by almost 29 per cent to Rs.292 crore in
2006-07, plans are to increase it by leaps and bounds.
 Growth will be achieved through international business, homecare, healthcare and
foods.
 Southern markets will remain as a focus area to increase its revenue share to 15 per
cent.
 Competition
Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
HUL 224.50 48,978.87 20,601.56 2,496.45 2,483.46
Dabur India 178.05 15,447.37 2,417.91 373.56 877.17
Colgate 714.60 9,718.05 1,770.82 290.22 220.98
Godrej Consumer 286.40 8,826.56 1,088.01 161.55 599.80
Marico 112.90 6,879.29 1,921.85 142.12 676.21
P and G 2,081.95 6,758.16 772.81 178.85 440.02
Godrej Ind 160.15 5,086.76 880.97 19.33 1,628.10
Emami 662.60 5,012.57 722.35 87.52 736.10
Gillette India 1,473.45 4,801.27 661.51 113.13 490.89
Jyothy Labs 173.00 1,255.44 350.85 40.88 352.51

Expansion and investments

 Dabur has major expansion plans for overseas market and considering acquisitions and
alliances outside India as it aims to increase its foreign sales from 11.4% to 15% in the
next four years.

 Dabur will be investing Rs 100 crore for processing and procurement to compete with
Pepsi's Tropicana and other juice brands.

Dabur is the co-owner of the IPL team Kings XI Punjab.