A

DISSERTATION REPORT
ON
“RECRUITMENT & SELECTION PROCESS”
AT

DABUR INDIA LIMITED

IN

THE PARTIAL FULFILLMENT OF THE AWARD OF MBA IN

ACADEMY OF MANAGEMENT STUDIES

SASMITA BEHERA
MBA 2ND YEAR, REGD NO. 0806272022

INTERNAL GUIDE
Prof. Namita Rath
Faculty HR, AMS

[1]
 DECLARATION
I Sasmita Behera hereby declare that I have conducted the project entitled “ A
DISSERTATION REPORT ON RECRUITMENT & SELECTION PROCESS AT DABUR INDIA
LIMITED” under the guidance of Prof. Namita Rath (faculty HR) in partial fulfillment for the
award of Master of Business Administration from Academy of Management Studies,Bbsr.

I do state that the project is my original work and no part of it has been submitted for any other
degree of purpose nor published in any other form till date.

Place:Bhubaneswar

Date:
Signature

[2]
 ACKNOWLEDGEMENT

This project has been a great learning experience for me and I would like to express my sincere
gratitude to those who guided me throughout the project and without their help it would have been
a very tough task for me and completion of this project would not have been possible.

At the very outset, I would like to express my sincere and heartiest gratitude to my all the faculty
members of AMS who were kind enough for providing me this opportunity to undertake my
dissertatio report.

Last but not the least I would remain grateful to my friends who helped me a lot and supported me
throughout the project. Without them, it would not have been possible to complete this project.
Back to my institute, Academy of Management Studies I acknowledge with gratitude of suggestions
received from Prof. Namita Rath(internal guide) to be ever obliging catering to the academic aspect
of the project. I am thankful to her for her guidance and constant help during my dissertation
report.

Sasmita Behera

[3]
 CONTENTS

Sl.No. CHAPTERS PAGE NO.

1 Chapter 1 5

Introduction 6

Scope of the study 7

Objective of the study 7

Method of study 7

2 Chapter 2 8

Dabur India Limited 9

Dabur Group 15

History 17

Corporate Philosophy 21

Dabur Products 31

Eco friendly Dabur 38

3 Chapter 3 44

Recruitment 45

Sources of recruitment 46

Selection 47

4 Chapter 4 50

Recruitment & Selection procedure at Dabur India Limited 51

Suggestions 54

Conclusion 55

Bibilography 56

[4]
 CHAPTER 1
INTRODUCTION

INTRODUCTION
As in case of any other functional area like marketing, production or finance, the work personnel
department has also to be planned. Planning in the personnel area is mainly concerned with
crystallizing from where the right type of people can be secured for future anticipated vacancies.

[5]
 Manpower planning is the process by which management determines how the organization
should move from its current manpower position to its desired manpower position. Through
planning, management strives to have the right number and the right kinds of people, at the right
places, at the right time, doing things, which result in the growth and success of both- the
organization and the individual. The manpower planning is one of the basic steps in the
recruitment and selection procedure.

Recruitment and Selection are the processes wherein the organisation finds the best
candidate among the vast array of candidates. The function that locates the sources where from
the required human resources can be available and to attract them towards the organisation is
known as recruitment. Selection can be defined as the process wherein the organisation has to
select a small lot of people who are useful to the organisation in terms of their capabilities and
their qualifications. The main aim of organisation at this stage is to have a well equipped
manpower efficient enough to handle all the tasks gracefully.

This project entitled "Recruitment and Selection in Dabur India Ltd (DIL)" aims at
studying the recruitment and selection procedure undertaken at this ever growing organisation.
The project gives a brief idea as to how the whole process works. Every organisation has
different policies, at times unique and it is very rare that the policy of one organisation matches
to the policies of another organisation.

It is true that the success of any organisation depends upon the old dictum: right person
for the right job. At the same time it is more important to have right and tested combination of
recruitment and selection policies to attract, select and appoint a desired lot and replenish it from
time to time. The transformation from a family concern to FMCG industry has tested the
recruitment and selection policies and the organisation.

The sustainability and success of this living legend over hundred years has proved that the
strategies adopted by this multinational are true to its needs and requirement. DIL has a strong
work force of 2,500 employees. DIL has succeeded over hundred years because it still follows
the basic dictum religiously.

[6]
SCOPE OF THE STUDY
The present study has very limited scope as all data are collected from secondary sources
only.

OBJECTIVE

The main objective of this project are:

 To study the Recruitment and Selections procedures used at Dabur India Limited.

METHOD OF STUDY
Methodology is a systematic study that guides the investigation. It refers to the body of methods or
techniques used in the study. In facts, the main aim of any kind of study, whether science or otherwise, is
to acquire knowledge, to know the truth and the reality behind a phenomenon. So, maximum care has
been taken to make the study systematic and scientific. The data for the present study have been collected
from secondary data.

Secondary sources
Secondary data were collected by the documents, published magazines, leaflets, new bulletins,
internet, official website of Dabur, etc which gave sufficient idea about the various organizational setup,
staffing pattern, training facilities, recruitment & selection procedure followed by Dabur India Limited.

[7]
CHAPTER 2
COMPANY PROFILE

[8]
DABUR INDIA LIMITED
Dabur India Limited is the fourth largest FMCG company in India with revenues of US$750
million (Rs 3416 crores) and Market capitalization of US$3.5 billion ( over Rs 16,000 crore).
Building on a legacy of quality and experience of over 125 years, Dabur operates in key
consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care &
Foods.
Dabur India Limited came into existence over 100 years ago in 1884 in Calcutta. The founder
of Dabur India Limited-Dr.S.K.Burman (1856-1907) was a physician who brought Ayurvedic
medicines for the masses of Bengal. His off quoted dictum is the guiding spirit behind Dabur
even today:
"What is the life worth which cannot bring comfort to others"
And the Vision of DIL is:
"Dedicated to the health and well being of every household"

Introduction :

Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. The founder,
Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera and Plague
were the common diseases. He was a physician who brought ayurvedic medicines to the masses
of Bengal. Initially established as a proprietary firm for the manufacture of chemicals and
ayurvedic drugs it was later on 19th November 1930 incorporated as private limited company.
Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri P.C.Burman in the name
of Dr S.K.Burman Pvt.Ltd. to expand the operations by setting up production facilities at Garia
and Narendrapur, West Bengal and Daburgram, Bihar.

Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st
July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a fresh
certificate of incorporation was issued to that effect.

In 1970,the bulk of manufacturing facilities were shifted from West Bengal to Faridabad in
Haryana.
[9]
In 1975,vidogum and chemicals were incorporated in technical collaboration with Unipekin AG
(Switzerland) for the manufacture of edible grade and industrial grade Guargum powder at
Alwar in Rajasthan.

In 1977,a modern automated plant was set up in Sahibabad (U.P.) for the manufacture of
Chyawanprash, Asavrishthas, Hair oil, Tooth powders, Hajmola, and other Ayurvedic
specialties. Certification for production of toiletries and food grade products was issued on 13th
October 1986 by the registrar of Delhi and Haryana to the company, Dabur Private Limited, a
closely held Public Limited Company.

It was incorporated as a Private Ltd. Company in the name of Dabur (Dr. S.K. Burman) Pvt. Ltd.
From a humble beginning in 1884, a manufacture of traditional medicine in Calcutta, Dabur has
come a long way to become a multifaceted multinational, multi-product, modern Indian
corporation with a global presence. It now enjoys the distinction of being the 2nd largest FMCG
Company and is praised to become a true Indian Multinational.

The main plant was set up in Sahibabad (U.P.) in 1977 for manufacturing of Chyawanprash,
hair oil, tooth powder, hajmola and other ayurvedic medicines and food products etc. Dabur's
main line of business is in the sphere of Health care, Personal care and Beauty care. Its strength
lies in natural and herbal preparations.

Dabur's corporate philosophy has always been ahead of its time. The founder's initial success
was mainly due to his direct main campaigns- a technique that became very popular nearly a
century later. The company was one of the earlier Indian companies to have fully equipped R &
D lab as early as in 1919. Today, the company has its own mainframes and computers are a way
of life here.

Dabur is also an ISO 9002 certified company. The certification was obtained in 1995 by
SGS YARSLEY international services Limited U.K. Dabur's revenue today exceed Rs.800
crores with plans to achieve Rs.2, 000 crores by year 2003. Dabur has 34,000 shareholders with
market capitalization of over Rs.1, 400 crores.

[10]
Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East. It has
manufacturing base in Egypt also. The company has over 4,000 employees with around 1,500
looking after sales and marketing functions. The Indian market is being served through a
transactional network of sales offices and carrying and forwarding agents. The company has its
offices in London, New York and Moscow. Dabur products are being exported to around 50
countries. Dabur portfolio is exceeding 500 products of FMCG and health care products.

The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003. Company
has recorded a growth of 36 per cent in its net profit percent growth in its turnover during April-
June 2003. The turnover of DIL, during the three-month period, has increased to Rs 266 crore to
Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.
The first quarter results should not be annualized as sales usually improve in subsequent
quarters.

Dabur India Limited has marked its presence with significant achievements and today commands
a market leadership status. Our story of success is based on dedication to nature, corporate and
process hygiene, dynamic leadership and commitment to our partners and stakeholders. The
results of our policies and initiatives speak for themselves.

 Leading consumer goods company in India with a turnover of Rs. 2834.11 Crore (FY09)
 3 major strategic business units (SBU) - Consumer Care Division (CCD), Consumer
Health Division (CHD) and International Business Division (IBD)
 3 Subsidiary Group companies - Dabur International, Fem Care
Pharma and newu and 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur
Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care
(Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-
UAE), Weikfield International (UAE) and Jaquline Inc. (USA).
 17 ultra-modern manufacturing units spread around the globe
 Products marketed in over 60 countries

[11]
  Wide and deep market penetration with 50 C&F agents, more than 5000
distributors and over2.8 million retail outlets all over India

Consumer Care Division (CCD) adresses consumer needs across the entire FMCG spectrum
through four distinct business portfolios of Personal Care, Health Care, Home Care & Foods

 Master brands:

 Dabur - Ayurvedic healthcare products

 Vatika - Premium hair care
 Hajmola - Tasty digestives
 Réal - Fruit juices & beverages
 Fem - Fairness bleaches & skin care products

 9 Billion-Rupee brands: Dabur Amla, Dabur

Chyawanprash,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

Consumer Health Division (CHD) offers a range of classical Ayurvedic medicines and
Ayurvedic OTC products that deliver the age-old benefits of Ayurveda in modern ready-to-use
formats

[12]
  Has more than 300 products sold through prescriptions as well as
over the counter
 Major categories in traditional formulations include:
- Asav Arishtas
- Ras Rasayanas
- Churnas
- Medicated Oils

 Proprietary Ayurvedic medicines developed by Dabur include:

- Nature Care Isabgol
- Madhuvaani
- Trifgol

 Division also works for promotion of Ayurveda through organised

community of traditional practitioners and developing fresh
batches of students

International Business Division (IBD) caters to the health and personal care needs of customers
across different international markets, spanning the Middle East, North & West Africa, EU and
the US with its brands Dabur & Vatika

 Growing at a CAGR of 33% in the last 6 years and contributes to

about 20% of total sales
 Leveraging the 'Natural' preference among local consumers to
increase share in perosnal care categories
 Focus markets:
- GCC
- Egypt
- Nigeria
- Bangladesh
- Nepal
- US

 High level of localization of manufacturing and sales & marketing

[13]
Dabur Group

With a basket including personal care, health care and food products, Dabur India Limited has
set up subsidiary Group Companies across the world that can manage its businesses more
efficiently.

Given the vast range of products, sourcing, production and marketing have been divested to the
group companies that conduct their operations independently:

[14]
VISION

"Dedicated to the health and well being of every house hold."

Dabur is a company with a set of established business values, which direct it's functioning as
well as all its operations. The guiding forces for Dabur are the words of its founder, Dr.S. K.
Burman, "what is that life worth that can not give comfort to others." The Company offers its
customers, the products to suit their needs and give them good values for money. The company
is committed to follow the ethical practices in doing business. At Dabur, nature acts as not only
the source of raw materials but also an inspiration and the company is committed to product the
ecological balance.

PRINCIPLES
 OWNERSHIP :This is our company. We accept responsibility and accountability to
meet business needs.

 PASSION FOR WINNING :We all are leaders in our responsibility, with a deep
commitment to deliver the results. We are determined to be the best at doing what matters
the most.

 PEOPLE DEVELOPMENT : People are our most important asset. We add value
through result- driven training and we encourage rewards and excellence.

 CONSUMER FOCUS : We have superior understanding of consumer needs and

develop products to fulfill their demands.

 TEAM WORK : We work together on the principle of mutual trust and transparency in
a boundary less organization.

 INNOVATION : Continuous innovation in products and processes and is the base of 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.

[15]
DABUR OVER THE YEARS

More than a century ago, a young doctor started with a vision to provide innovative and
affordable health care products to Indian masses. Thus, was born an organisation today known as
Dabur India Limited. The twelve hundred crores corporate today started with a small
dispensary at Calcutta, the noble thoughts of Dr.S.K.Burman being the main source of
inspiration behind the project. From that humble beginning, the company has grown into India’s
leading manufacturer of consumer health care, personal care and food products. This
phenomenal progress has seen many milestones, some of which are mentioned below:

 1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited.
Started from a small shop at Calcutta, he began a direct mailing system to send his
medicines to even the smallest of villages in Bengal. The brand name Dabur is derived
from the words "DA" for Daktar or doctor and "BUR" from Burman.

 1896: As the demand for Dabur products grows, Dr. Burman felt the need for mass
production for some of his medicines. He set up a small manufacturing plant at Garhai
near Calcutta.

 Early 1900s: The next generation of Burman's take a conscious decision to enter the
Ayurvedic medicines market, as they believe that it is only through ayurveda that the
healthcare needs of poor Indians can be met.

 1919: The search for processes to suit mass production of ayurvedic medicines without
compromising on basic ayurvedic principles lead to the setting up of the first Research
and Development laboratory at Dabur. This initiate a pain staking study of ayurvedic
medicines as mentioned in age old scriptures, their manufacturing processes and how to
utilize modern equipment to manufacture these medicines without reducing the efficacy
to manufacture these medicines without reducing the efficacy of these drugs.

 1920s:A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and

Daburgram. Dabur expands its distribution network to Bihar and northeast.

 1936: Dabur India (Dr. S.K.Burman) Pvt.Ltd. is incorporated.

[16]
 1940: Dabur diversifiers into personal care products with the launch of its Dabur Amla
Hair Oil. This perfumed hair oil catches the imagination of the common man and film
stars alike and becomes the largest hair oil brand in India.

 1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded
Chyawanprash of India.

 1956: Dabur buys its first computer. Accounts and stock keeping are one of the first
operations to be computerized.

 1970: Dabur expands its personal care portfolio by adding oral care products. Dabur Lal
Dant Manjan is launched and captures the Indian rural market.

 1972: Dabur shifts base to Delhi from Calcutta. Starts production from a hired
manufacturing facility at Faridabad.

 1978: Dabur launches the Hajmola tablets. This is the first time that a classical ayurvedic
medicine is branded from Shudhabardhak bati to Hajmola tablets.

 1979: The Dabur Research Foundation (DRF), an independent company is set up to

spearhead Dabur's multi-faceted research. Commercial production starts at Sahibabad.
This is one of the largest and most modern production facilities for ayurvedic medicines
in India at this time.

 1984: The Dabur brand turns 100 but is still young enough to experiment with new
offerings in the market.

 1986: Dabur becomes a public Limited company through reverse merger with Vidogum
Limited, and is re-christened Dabur India Limited.

 1989: Hajmola Candy is launched and captures the imagination of children and
establishes a large market share.

 1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing and
marketing confectionery items such as bubble gums in India.
[17]
 1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.

 1994: Dabur India Limited comes out with its first public issued at a premium of Rs.85
per share. The issue is subscribed over 21 times.

 1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch this product.
The Dabur Research Foundation develops the unique eco-friendly process of extracting
the drug from the leaves of the Asian Yew Tree.

 1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of
France for cheese other dairy products.

 1996: Dabur launches Real fruit juices, which heralds the company's entry into the
processed food market.

 1997: The foods division is created, compromising of real fruit juices and Homemade
cooking paste to form the core of this division's product portfolio.

 1998: Project STARS (Strive To Achieve Record Successes) is initiated by the company
to achieve accelerated growth in the coming years. The scope of this project is strategic,
structural and operational changes to enables efficiencies and improves growth rates.

 1998: The Burman family hands over the reins of the company to a professional, Mr.
Ninu Khanna joins Dabur, as the Chief Executive Officer.

 1999-2000: Dabur achieves the Rs.1000 crores turnover mark.

 2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple
active, orange active, homemade pappad, Vatika- an anti-dandruff shampoo.

 2002: New launches homemade coconut milk (in south), Tang, Tomato puree, Vatika
light.
[18]
 2003: Dabur achieves Rs.1,232 crores turnover mark with an increase of 6 per cent.
Turnover of FMCG reaches to Rs l048.5crores, which shows a profit of Rs. 72 crores.
Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores.

 2005: Dabur India announced issue of 1:1 Bonus share to the shareholders of the
company, i.e 1 share for every one share held. The Board also proposed an increase in
the authorized share capital of the company from existing Rs 50 crore to Rs 125 crore.

 2008: Dabur India acquires Fem Care Pharma, a leading player in the women’s skin care
market.

 2009: Dabur Red Toothpaste becomes the Dabur’s ninth Billion Rupee brand. Dabur Red
Toothpaste crosses the billion rupee turnover mark within five years of its launch.

[19]
CORPORATE PHILOSOPHY

Knowledge is the key to growth in today's world. Whatever be the industry, it is the
knowledge, which provides cutting edge to individual and organisations. For more than a century
nature has been a rich source of knowledge for DABUR. Nature has not only gives it the
ingredients for all its products but also has taught it how to create a harmony within and outside
the organisation. Nature has inspired DABUR in all its acts. Ayurveda - the science of life is
based on principles of nature. All ayurvedic preparation has their ingredients derived from
nature. Dabur has converted the healing properties of natural ingredients and the age-old
knowledge of ayurveda into contemporary health care to eliminate health problems of its
consumers.

Dabur is committed to expand the reach of its age-old knowledge of ayurveda and Nature
through web. Through web the aim is to overcome the physical boundaries to take ayurvedic way
of life to global frontiers. Dabur India limited understands its responsibility as a corporate house.
It has not only set a sight on increasing turnover and profitability of the company but
also on propagating Ayurveda - The Indian System of Medicine.

Good corporate governance and transparency in actions of the management is key to a

strong bond of trust with the Company’s stakeholders. Dabur understands the importance of
good governance and has constantly avoided an arbitrary decision-making process.

Our initiatives towards this end include:

• Professionalisation of the board

• Lean and active Board (reduced from 16 to 10 members)
• Less number of promoters on the Board
• More professionals and independent Directors for better management
• Governed through Board committees for Audit, Remuneration, Shareholder Grievances,
Compensation and Nominations
• Meets all Corporate Governance Code requirements of SEBI

[20]
CORPORATE CITIZENSHIP

When our Founder Dr. S. K. Burman first established Dabur, he had a vision that saw beyond the
profit motive. In his words, "What is that life worth which cannot bring comfort to others." This
ideal of a humane and equitable society led to initiatives taken to give back some part of what
Dabur has gained from the community.

Our major initiatives in the Social sector include:

 Establishment of the Sustainable Development Society, or Sundesh, in 1993 - a non-

profit organisation to promote research and welfare activities in rural areas;
 Promoting health and hygiene amongst the underpriviledged through the Chunni Lal
Medical Trust; and

 Organising the Plant for Life programme for schoolchildren - to create environmental
awareness amongst young minds.

Commitment to Environment

Ancient wisdom of conservation

From times immemorial, Indian sages and men of wisdom have understood and appreciated the
value of nature and its conservation. Our ancestors recognised that if we grabbed from nature
beyond what was healthy, it would lead to all round degradation, and even the extinction of
humanity. That is why nature was sanctified and worshipped in the form of gods and goddesses.

Dabur upholds the tradition

Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision of Dabur
would never have been fulfilled. And that is the reason for our unfailing commitment to
ecological conservation and regeneration. We would like to follow the principles of our ancient
texts, which say:

"Dehi me dadami te" - "you give me, and I give you".

[21]
Back to Nature
Rare herbs and medicinal plants are our most valuable resource, from which all our products are
derived. Due to overexploitation of these resources and unsustainable practices, these plants and
herbs are fast reaching the point of extinction. In view of this critical situation, Dabur has
initiated some significant programmes for ecological regeneration and protection of endangered
plant species.

Plants for Life

We have set up the "Plants for Life" project in the mountainous regions of the Himalayas.
Under the project, a high-tech greenhouse facility has been set up for developing saplings of
rare and endangered medicinal plants. Fully computer-controlled and monitored, this
greenhouse maintains the highly critical environmental parameters required for their survival.
We are also developing quality saplings of more than 20 herbs, 8 of them endangered, through
micro propagation.

In addition, satellite nurseries spread across mountain villages and contract cultivation of
medicinal herbs helps in maintaining the ecological balance. These measures have also helped
provide local cultivators the scientific knowledge for harvesting herbs and a steady source of
income. So that they are not forced to exploit the environment to earn a livelihood.

Living a Green Heritage

These are significant steps that can contribute to a better world for coming generations. To
whom we would like to bequeath a world not bereft of nature. But full of flowering and fruit
bearing trees, animals, birds and humans living in good health and complete harmony.

[22]
LOCATION OF OPERATIONS

Head office : Sahibabad, Ghaziabad (U.P.)

Regd. Office : Asaf Ali Road, New Delhi
Corporate office : Kaushambi, Ghaziabad (U.P.)
Sales & Marketing: New Delhi

OFFICES:
Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar),
Ahemadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad (A.P.),
Chennai (TamilNadu), Bangalore (Kamatka), Kochi (Kerela), Guwahati (Assam), Kathmandu
(Nepal), Russia, U.K.

FACTORY:
Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani& Narendrapur
(West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.

C&Fa:
Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.), Dehradun
(U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati (Assam), Calcutta (West Bengal), Jaipur
(Rajasthan), Ahemadabad (Gujarat), lndore (M.P.) Raipur (M.P.), Bhubaneshwar (Orissa),
Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad (A.P.), Chennai (TamilNadu), Bangalore
(Karnataka), Cochin (Kerela).

[23]
THE COMPANY BUSINESS ACTIVITIES COMPRISES OF:

HEALTH CARE PRODUCTS: Markets a range of OTC health care: products based on
ayurveda, some of its products like Chyawanprash, Hajmola, Hajmola Candy, Pudinhara are
market leaders with over 65 per cent market share in their respective categories.

PERSONAL CARE PRODUCTS: It includes hair care, oral care and honey. Dabur Amla as a
brand has made its mark beyond India; it is a leading hair oil brand in Middle East and Africa.
Other well-known brands are Vatika, Dabur Lal Dant Manjan.

AYURVEDIC SPECIALITIES: There is a range of over 400 Ayurvedic medicines. It has vast
range of classical ayurvedic drugs and priority ayurvedic medicines developed by own R&D.

PHARMACEUTICAL DIVISION: It includes a range of natural ethical products like Livfit,

Lionitus, Legal etc, and angel of contract media and gynecological. This division has a major
presence in Anti-thronbolytic, Anti-migrane therapy and radio opaque dyes.

ONCOLOGY: The formidable range includes brands such as Intel, Docetaxel that were
manufactured in India for the first time by Dabur. The company is a market leader in this
category in India and plans to establish itself as a general Oncology player in selective global
market.

BULK DRUGS AND CHEMICALS: Dabur manufactures synthetic and semisynthetic bulk
pharmaceutical substances, bulk natural compounds and intermediaries. Isolation of pure natural
compounds and custom synthetics are focus areas.

FOODS DIVISION: One of the youngest divisions of the company markets a range of sauces,
ethnic pastes and foods. Real fruit juices gave Indian consumer for the first time, fruit juices with
nothing artificial, no preservatives, no colour and no flavors added. Launched two years back,
the range includes Real Juices and cooking pastes under the brand name Home Made.

[24]
NATURAL GUMS: This division manufactures and process Guar gums, Gum Karaya, tamarind
based gums and psyllium husk. The division produces a range of industrial and grade natural
gums to meet the customer specifications.

AYURVEDIC VETERINARY: It deals exclusively in animal hea1thcare. Markets safe and

non-toxic herbal veterinary products for poultry.

[25]
MANUACTURING UNITS OF DABUR

Dabur India Limited has 12 manufacturing plants in India, Nepal and Egypt.

Sahibabad unit 1: Group generating a turnover of over Rs.250 crores. The key product line of
this unit includes Asavs, Hajmo1a, Hingoli, Oncology medicines, Dabur Amla hair oil,
Chyawanprash and Ashokarisht. The unit operated on these shifts as well as a general shift, with
product lines running for one, two or three shifts according to the market demand and supply
chain requirell1ents.

Sahibabad unit 2: Recently established for manufacturing and packing Dabur hair oil in Pet
Bottles.

Baddi unit 1: The most modern plant for manufacturing ayurvedic medicines and honey, this
unit was built following stringent guideline for pharmaceutical units.

Baddi unit 2: Manufacturing one of Dabur's most popular products-Dabur Chyawanprash, this
unit also boasts of the most modern processing and packaging unit for the medicated oil
Asavrishthas.

Baddi Injectibles: This unit manufactures Oncologicals, and is certified by OGYI of Hungary
and South Africa.

Alwar: This unit manufactures food and print grade Natural gums, Psyllium Husk and
Ayurvedic Veterinary products.

Narendrapur: One of Dabur oldest plant. It produces Ayurvedic medicines and Honey.

Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to manufacture oncology
bu1k drugs of critical importance.

Katni: Set up in the heart of Amla producing belt of India. This unit manufactures Amla pishi,
an essential ingredient in Dabur Chyawanprash.
[26]
Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most important
besides Sahibabad and Baddi. This modern manufacturing unit churns out Ayurvedic Medicines,
Oral Care and Hair Care Products, Honey and Fruit Juices. It also has the facility to process
leaves of the Asian Yew Tree to extract Paclitaxel, an important part of all anti-cancer products.

Egypt: This part was established to serve Saudi Arabia and the fast growing African market. It
manufactures Hair and Skin Care and Food products.

JOINT VENTURES

Dabur International Limited: Dabur has also collaborated with Bongrain of France for
the manufacture and marketing of speciality cheese and other Dairy Products. This joint venture
company has already made its presence felt in the Indian cheese market through the launch of
processed cheese under the brand name Lebon, and a specialty cheese under the brand name
Delicieux.

[27]
SUBSIDIARIES

Dabur has six subsidiary units, which come under the umbrella of the
Dabur India Organisation. These are:

Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India
Limited, is spearheading Dabur's foray into food processing industry. The company, set up in
April 1999,is marketing a range of fruits juices under the brand name Real, Homemade Cooking
Paste and Sauces and Lemoneez -- lemon juice. Dabur was the first company in India to
introduce fruit juices in packaged form without any artificial additive. Real is today the market
leader in this category with more than 50 per cent market share. Homemade cooking paste is the
only national brand in this category. Lemoneez is the only product in its category available in
unique drop and trickle pack and uniquely shaped tabletop pack.

Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for
Dabur group. The company is today the leading exporter of Nepal and the third largest and most
modern manufacturing base for Dabur. Dabur Nepal is today involved in promoting cultivation
of herbs and apiculture activities inNepal. The Company has set up state of the art greenhouse at
Banepa for developing sampling for 20 medicinal plants. Dabur Nepal has also set up an
Apiculture center for promoting bee-keeping activity in Nepal and developing queen bee
colonies for exports.

Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base
set up a couple of years back to cater to the demands of Middle East and African market is
producing Hair Care, Skin Care Products and foods.

Dabur oncology PIc: Set up recently in UK, this subsidiary of Dabur India Limited will be
manufacturing anti-cancer formulations for European market. The company is in the process of
setting up manufacturing base near London and is expected to start operation from year 2001.

[28]
Dabur Research Foundation (DRF): Incorporated in 1979, is a premier research
organisation recognized by Department of Scientific and Industrial Research, Government of
India. It is situated at Sahibabad, Ghaziabad, Uttar Pradesh. DRF today is known for its path
breaking research in the field of health care and personal care. The foundation is on the forefront
of oncology research and is in the process of developing many new molecules to fight with a
dreaded disease like Cancer. In fact DRF was the first organisation in the world to develop a
process for extraction of Paclitaxel, a drug, for cancer without harming its source tree.
This process has now become a universal one. Herbal health care is an area where Dabur
Research Foundation has made immense contribution by doing research and development work
using modern pharmaceutical protocols.

OTHER ASSOCIATE COMPANIES OF DABUR INDIA LTD.

• REROCK LIMITED.
• BRITISH HEALTH PRODUC'TS LIMITED.
• NORTHERN AROMATICS LIMITED.
• BURMAN LABORATORIES LIMITED.
• DABON INTERNATIONAL LIMITED.
• MAXCARE INTERNATIONAL LIMITED.
• PRECISE LABORATORIES LIMITED.
COLLABORATIONS
Dabur Foods Limited: 100% subsidiaries (taking care of all the food products)
Dabur Nepal Limited: Wholly owned subsidiary in collaboration with DRF
Dabur Egypt Limited: Wholly owned subsidiary.
Dabur Oncology Limited: Wholly owned subsidiary.
Dabur Overseas Limited: Owned subsidiary.
Dabur International Limited: Subsidiary (not yet commenced business

DABUR PRODUCTS:
[29]
A vast array of products touching the lives of almost every individual, from an infant to a grand
old man, from poor to rich that's how the Dabur range of health personal care and food products
could be best explained. Today Dabur trust has travelled beyond the boundaries of India and is
available in more than 50 countries worldwide.

AYURVEDIC SPECIALITIES
Ayurvedic Specialties is a range of over 350 Ayurvedic drugs and proprietary Ayurvedic
Medicines- developed by Dabur's own Research and Development department. Dabur has
products for all the 16 categories as defined in the Ayurveda.
Some of the leading products in this category are:

Asav Arishtas: These are medicated decoctions with self-generated alcohol contents.

Churnas: These are finely ground medicinal powders used to treat a variety of ailments ranging
from digestive problems to cough and fever.

Ras Rasayanas: Preparations containing mineral drugs as main ingredients are called Ras
Rasayanas.

Medicated oil: The oils boiled along with certain prescribed drugs are known as medicated oils.
These oils retain the curative properties of herbs and are used for injunction and massage.

PHARMACEUTICALS
[30]
Branded Pharmaceuticals: It includes a range of natural ethical products like New Livfit,
Honitus, Uigeletc and a range of contrast media and gynecological.

Oncology: This wide and formidable range includes brands such as Intaxel, Docetaxel and
Topotecan, all of which were manufactured for the first time in India by Dabur. Little wonder
then, that Dabur is the undisputed market leader in this category in India and has plans to
establish itself as a generic oncology player in selected global market. Bulk drugs and

Chemicals-this range consists primarily oncology category. Healthcare is one of the biggest and
the oldest divisions of Dabur with a wide range of OTC healthcare products. It comprises of:
AYURVEDIC HEALTH TONICS

Chyawanprash: The leader in the Chyawanprash market in India, Dabur Chyawanprash is one
of the most well known Ayurvedic products in India & abroad. An effective herbal
immunodulator, Dabur Chyawanprash has the essential goodness of amla & over 50 other herbs.
Dabur has conducted several clinical trials on this product, which confirm its efficacy as a unique
product that strengthens the body from within.
DIGESTIVES

Hajmola Tablets: Hajmola tablets are the first classical ayurvedic product to be branded and
positioned as fun-filled products with medicinal properties. It finds mention in ayurvedic
scriptures as Kshudhavardhak bati & was branded as Hajmola, a name derived from Hajma,
which means digestive in Urdu. It is available in regular & tamarind flavors.

Hajmola Candy: To cash in on the brand equity enjoyed by Hajmola, Dabur launched Hajmola
Candy in 1989. Since then, the company has added Mango & Tamarind flavors besides the
regular one.

Pudin Hara: One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid as
well as capsule form. It has a special combination of mint oils and cures gastric problems
without any side effects. The company has added effervescent powder with goodness of mint for
gas and acidity and named it Pudin Hara G.

[31]
Hingoli: Asafetida or Hing is mentioned in Ayurveda as an effective aid in digestion, and is used
a lot in Indian cooking. Dabur's Hingoli has all the goodness of asafetida & other herbs.

CHILDCARE PRODUCT

Dabur Lal tail: The largest baby massage oil in India. It has the goodness of herbs, which helps
in strengthening the bones of infants.
Dabur Janam Ghutti: This Ayurvedic preparation helps in strengthening the digestive system
of new ones.

WOMEN CARE PRODUCTS

Efarelle comfort:
An herbal medicine in self-gel capsule form to overcome abdominal pain during PMS. A
combination of natural oils this formulation gives immediate relief from pain without any side
effects. The largest division in terms of sales, the Family Product Division of Dabur has in
its portfolio- hair care and skin care products, oral care and food product like Honey.

HAIR & SKIN CARE

Dabur is the leader in hair care products in India and has covered almost all the categories
of hair oils.

Dabur Amla Hair Oil: As a brand has made its mark beyond India and is a leading hair oil
brand in middle East and Africa. A perfumed heavy hair oil, it is Dabur's largest brands.

Dabur Special Hair Oil: It is light hair oil that combines the natural hair care properties of
lemon and hibiscus.

Vatika: The fastest growing brand in India, Vatika has single-handedly created an altogether
new category of herbal enriched natural oils. The Vatika range also includes an herbal shampoo,
which has made its mark in the very fast year of its launch in the competitive shampoo market of
India. The company has recently launched Vatika Anti-Dandruff Shampoo having herbal
ingredients to fight the problem of Dandruff.

Gulabari: Rose water derived from best of Indian roses makes the skin supple and glowing.
[32]
 ORAL CARE

Dabur Lal Dant Manjan: It is the second largest brand of India and the largest in coloured
tooth powder category. This herbal tooth powder is very popular in rural parts of India.

Binaca Tooth Brushes: After having acquired this dormant brand a few years back, Dabur
launched toothbrushes under this umbrella. There are plans to launch other oral care products
under the Binaca brand.

Dabur Honey: When repositioned in 1993, it totally changed the perception of Indian
consumers. Launched over two years back Dabur food range include juices under the brand
name Real & cooking paste under the brand name Homemade.

DABUR FOODS Ltd.

Dabur Foods Ltd, a 100% subsidiary of Dabur India Ltd., is making foray into food processing
industry. The company, setup in April 1999, is marketing a range of fruit juice under the brand
name Real, homemade cooking paste & sauces & Lemoneez lemon juice.
Dabur was the first company India to introduced fruit juices in packaged form without any
artificial additives. Real is today the market leader in this category with more than 50 per cent
market share. Homemade cooking paste is the only national brand in this category. Lemoneez is
the only product in its category available in unique pack & uniquely shaped tabletop pack.

DOMINANT BRANDS
o Amla Hair Oil
o Vatika Hair Oil
o Red Tooth Powder
o Chyawanprash
o Hajmola Tablets
o Asavs
o Hajmola Candy
o Real Fruit Juice
o Honey
o Pudin Hara

[33]
QUALITY POLICY

At Dabur, quality is a relentless commitment to continuous improvement in products, process

and systems to provide consistent quality products to meet customer's requirements worldwide.
The management is fully committed to quality and ensures all resources to accomplish this task.
Dabur has been on steep path for few years. Its sales turnover has increased from Rs.530 crores
in 1995 to Rs.1166 crores in 2000-01. In 1999-2000, overall growth of 13.5 per cent was
recorded in sales (Rs.1000 crores plus) with Family Product Division recording a growth of--
15.85 per cent, Health Care Division- 12.3 per cent, Ayurvedic Specialties Division -27 per cent
and Pharmaceuticals Division- 20 per cent. Exports recorded a growth of 11 per cent in 1999-
2000,amounting to Rs.114.16 crores. The major contributions of growth were herbal products,
bulk drugs & anti-cancer formulations. Gross margin showed an improvement of 4 per cent and
net profit amounted to Rs.77 crores. In 2000-01,sales turnover had recorded a growth of 12 per
cent, amounting to 116.5 crores and net profit had soured by 39.2 per cent amounting to Rs.78.5
crores. Sales turnover in light of such growth path has been targeted for Rs 2000 crores in 2003-
04.

The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003. Company
has recorded a growth of 36 per cent in its net profit per cent growth in its turnover during April-
June 2003.

The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300
crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.The first
quarter results should not be annualized as sales usually improves in subsequent quarters.

[34]
QUALITY OBJECTIVES

 To focus on customers successfully and to strive to meet their needs and requirements.

 To manufacture effective health care products at competitive prices and to improve the
Quality of Life of common masses.

 To implement and emphasise on systems to ensure prevention of errors rather than

detection of errors.

 To ensure global competitiveness by striving to achieve Current Good Manufacturing

Practices (CGMP).

 To ensure safety in all operations and to follow the systems in all areas of operations.

 To continually train people to build up and upgrade skills and expertise and to involve
them to become committed to the quality process.

 To reduce wastages within the organisation and increase productivity.

[35]
STRATEGIC INTENT
We intend to significantly accelerate profitable growth. To do this, we will:

• Focus on growing our core brands across categories, reaching out to new geographies,
within and outside India, and improve operational efficiencies by leveraging technology
• Be the preferred company to meet the health and personal grooming needs of our target
consumers with safe, efficacious, natural solutions by synthesizing our deep knowledge
of ayurveda and herbs with modern science
• Provide our consumers with innovative products within easy reach
• Build a platform to enable Dabur to become a global ayurvedic leader
• Be a professionally managed employer of choice, attracting, developing and retaining
quality personnel
• Be responsible citizens with a commitment to environmental protection
• Provide superior returns, relative to our peer group, to our shareholders

IMPORTANT STRATEGIES ADOPTED

"Developing to built" philosophy for HR personnel.

 Shifting to zonal set up of sales and marketing to facilitate better distribution.

 Adopting contribution enhancement plan for performance management.
 Empowering employees through Employee Stock Purchase Option Plan.
 Backward integration strategy in Ayurvedic Products by engaging in plantation of herbs
needed for the production of Ayurvedic Products.
 Continuous enhancement of automation.
 Continuous emphasis on Research & Development (DRF i.e. Dabur Research Foundation
is a separate company working in collaboration with Dabur solely for the purpose of
R&D).

[36]
ECO-FRIENDLY DABUR

Dabur is committed to maintaining the ecological balance. It understands the need for a healthy
and eco-friendly environment for the existence living beings. The company's reforestation
program aims at planting medicinal herbs, plants and trees in the Himalayan range extending in
to Nepal. An in-house tissue culture program actively supports this exercise.

BRINGING UP DABUR
Dabur has made a mark and created a space for itself while catering to the needs of the Indian
customers. It fulfills all their requirements while assuring the quality product. Asking about the
name of the five largest FMCG companies in India one is likely to dash of one of that own desi
-sounding brands like Chyawanprash, Vatika, Hajmola etc. This is the stand of Dabur that it has
acquired over the years. Dabur India Ltd. is the India's fourth largest FMCG Company, having a
turnover in fiscal 2000-01 at Rs.1,167 Crores, ahead of big and mighty multinationals such as
Proctor & Gamble, Rickitt and Coloman, Johnson & Johnson.

The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003. Company
has recorded a growth of 36 per cent in its net profit percent growth in its turnover during April-
June 2003.

The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300
crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.
The first quarter results should not be annualized as sales usually improve in subsequent
quarters.

[37]
However, most of its turnover comes from two divisions -Family Product Division (FPD),
accounting for 40 percent, and secondly, Health Care Division (HCD), which accounts for 30 per
cent. FPD is Dabur's biggest, having the biggest product -Dabur Amla Hair Oil, and a brand of
Rs.160 Crores in fiscal 1999-2000.The strategies in the hair care market emphasis brand
extension. It plans to launch two new products, Amla light and Vatika light over the next few
months.

A separate company, Dabur Foods, looks after food products such as real fruit juice and
homemade of pastes. Dabur sees a lot of potential in the "real" brand-currently Rs.30 crores
brand, which claims 3 per cent market share. Two another divisions of Dabur, Ayurvedic
specialties, and Pharmaceuticals, constitute 8 per cent and 7 per cent respectively of its turnover.
The Pharmaceuticals division is internally considered of great promise with the potential of
producing safe medicines much required by mankind. Its most promising product is anti-cancer
drug, Intaxel, which is prepared of ingredients from the Himalayan Yew Tree.

Dabur Amla, which is derived from vegetables and minerals, has an 80 per cent market share in
the heavy perfume hair oil segment. The other leading brand in the Hair Care Division, Dabur
Vatika shampoo was launched at the end of 1998.In the fiscal year 1999-2000,it was Rs.2 crores
brand with a 30 per cent market share of Rs.75 crores herbal shampoo market.

All the products of Dabur are prepared from natural extracts; they are pure and nutrition.
Dabur's brand offers products both for fun or health; Dabur has a brand to match to the demands
of majority of cross-section of the people across various market segments, different cultures and
also tries well to cater to the global demands.

[38]
BRAND PORTFOLIO STRENGTH

• The products offered by Dabur are unique thus attracting many consumers.
• The brands are strongly enriched in traditional usage and habits.
• The brands are prepared in active collaboration with the mother nature and Dabur is also
having right consideration that its products do not cause any harm to the environment
thus takes necessary steps.
• The products offer immense potential for growth and extension.

WELFARE ACTIVITIES AT DABUR

FESTIVAL CELEBRATIONS : Dabur celebrates the festivals with its employees and sweets
are distributed. This helps to maintain constant interaction with the employees and the employees
in turn feel assured thus boosting their morale.

RECREATIONAL TOUR : An annual recreational tour is organized and 50 percent of the

expenses are borne by the organisation. This helps in enhancing togetherness among the
employees.

IT'S NOT ALL WORK AND NO PLAY : Dabur does not expect its employees to work all
day long because the work gets monotonous, resulting decrease in the efficiency. Hence, Dabur
has formed Dabur Cricket Club and also provides the facilities for indoor games like table tennis.

MEDICAL ATTENTION : At Sahibabad Factory, two part time doctors and two full time
nurses are available round the clock to ensure health and safety of workers.

[39]
UNIFORMS : To maintain uniformity in the factory premises the uniforms are provided both
for summer and winter with a pair of shoes.

STAFF BUSES : The organisation provides the facility of buses to its employees to help in easy
commutation.

MESS FACILITIES : The Company provides the facility of mess to its workers as well as staff.
A contractor manages it proper hygienic conditions are maintained. Employees of Grade V and
above use the Executive Mess.

STAFF SALE : The Company provides products to its employees at a concessional rate
through the staff sales canteen.

HIRE/PURCHASE SCHEME : Sale of consumer items is organized for the employees of

Dabur on a yearly basis under the welfare scheme.

POST OFFICE SALARY SAVING SCHEME: Under this scheme, employees and their
family members can open a recurring deposit account with Bharat nagar Post Office.

BLOOD DONATION : Dabur organizes blood donation camps at Sahibabad factory in

association with the Lions Club Of Delhi Cosmopolitan, in the month of February/March every
year.

CHUNNI LAL MEDICAL TRUST : Dabur rightly believes in following the path of its
founder-Dr.S.K.Burman-to serve the poor and the needy. The Chunni Lal Trust was established
to achieve this goal.

Dr.S.K.BURMAN CHARITABLE TRUST : This trust provides reimbursement for workers

who cannot afford their medical expenses.

SUNDESH-HELPING PEOPLE THEMSELVES : Established in Nov.1993, Sustainable

Development Society (SUNDESH) is a registered voluntary organisation. It aims at improving
the Quality of Life of the rural people in its area of operation.
[40]
PARKING FACILITY : There are separate parking space for cars/scooters and motor
cycles/cycles and that too free of cost.

LONG SERVICE AWARDS : Employees belonging to grade I &IX, who have put in 10 years
of service with the company are given Meritorious Services Award Certificate along with a Titan
wrist watch and on completion of 25 years of service, they are given 4 silver glasses along with
the certificate.

PERSONNEL DEVELOPMENT IN DABUR

Personnel department is headed by Vice- President (HR)
Functions of Vice President (HR)
• Personnel administration
• Recruitment and Promotion
• Industrial Relations
• Human Resource Group
• Human Resource Development
• General Administration and Welfare
• Public Relations
• Security/Fire Vigilance
• Medical Services
• Implementation Of Official Language Policy (Hindi)
• Land Acquisition
The above functions are grouped under different General Managers/Deputy General Managers.
These executives provide support to Vice President (HR) on different issues, which arise in
Headquarter/regional offices and field. Vice President (HR) has the responsibility of keeping the
Board of Directors informed on the above mentioned personnel activities and also on Industrial
Relations. In addition to this, he is also expected up date senior officials in their respective areas.

[41]
KAIZEN
• Continuous improvement involving Kai-Change and Zen-for the better.
• Identification of problems, losses and wastage at work place.
• Rectification through small improvement.

HUMAN RESOURCE FUNCTIONS

o Recruitment and selection.
o Performance Appraisal.
o Training and Development.
o Promotion, Transfer, Seperation.
o General administration & Welfare.
o Security.
o Public Relations.
o Industrial Relations.

[42]
 CHAPTER 3
THEORETICAL DESCRIPTION

[43]
RECRUITMENT

Recruitment and selection are the most important functions in an organization because with the
help of these functions the management selects the best available candidate from a batch of them.
The organisations, in this growing competitive world, need to have the best of the manpower so
as to have an edge over its competitives.

According to Flippo, "Recruitment is the process of searching for prospective employees and
stimulating and encouraging them to apply for jobs in an organisation."
In the words of Yoder,"Recrutiment is a process to discover the sources of manpower to meet
the requirements of the staffing schedule and to employ effective measured for attracting that
manpower in adequate numbers to facilitate effective selection of an efficient working force."

The recruitment needs can be classified into-

· Planned.
· Anticipated.
· Unexpected.

Planned need arise from changes in the organisation and retirement policy. These occur due the
expected changes in the organisation so the management can make a proper policy for it.
Anticipated need refer to the movements in personnel which an organisation can predict by
studying the trends in the internal and external environments. Resignations, deaths, accidents and
illness result in to the unexpected needs.

[44]
FEATURES:
• Recruitment is a process or a series of activities rather than a single event.
• It is a linking activity as it brings together the employers and employees.
• It is positive process because in this activity the employers want to have the maximum
number of job seekers so as to have a wider scope for choice ultimately leading in
spotting right persons for job.
• It is an important function as it makes it possible to acquire the number and type of
persons required for the effective functioning of the organisation.
• It is an ongoing function in all the organisations, but the volume and nature of
recruitment varies with the size, nature and environment of the organisation.

• It is a complex process because a number of factors affect it –the nature of the job
offered, image of the organisation, organizational policies, working conditions etc.

SOURCES OF RECRUITMENT:

The various sources of recruitment are -

Internal Sources: Include-

• Present Employees who can be transferred or given promotions.

• The retired and retrenched employees who want to return to the company.
• Dependents and relatives of the deceased and disabled employees.

External Sources : Consist of-

• Press advertisements.
• Campus Interviews.
• Placement Agencies.
• Recommendations.
• Recruitment at factory gate.
• Employment Exchanges.

[45]
SELECTION

Selection is the process of choosing the best candidate out of the all the applicants. In this
process, relevant information about the applicants is collected through a series of steps so as to
evaluate their suitability for the job to be filled. It is the process of matching the qualifications
with those required for the job so that the candidate can be entrusted with the task that matches
with his credibility. It is a process of weeding out unsuitable candidates and finally identifying
the most suitable candidates. This process divides the candidates into two categories-the suitable
ones and the unsuitable ones. The suitable people prove to be the asset for the organisation.

Selection is a negative process because in this process the management tries to minimise the
number of people at each step so that the final decision can be in the light of all the factors and at
the end of it best candidate is selected. Selected candidate the has to pass through the following
stages-
• Preliminary Interview.
• Application Form.
• Selection Test.
• Selection Interview.
• Physical Examination.
• Reference Check.
• Final Approval.
• Employment.

[46]
Preliminary Interview is the initial screening done to weed out the undesirable candidates. This
is mainly a sorting process in which the prospective candidates are given the necessary
information about the nature of the job and the organisation. Necessary information about the
candidate is also taken. If the candidate is found suitable then he is selected for further screening
else he is dropped. This stage saves the time and effort of both the company and the candidate. It
avoids unnecessary waiting for the candidate and waste of money for further processing of an
unsuitable candidate.

Application Form is a traditional and widely used device for collecting information from
candidates. This form asks the candidates to fill up the necessary information regarding their
basic information like name, address, references, date of birth, marital status, educational
qualifications, experience, salary structure in previous organisation and other such information.
This form is of great help because the scrutiny of this form helps to weed out candidate who are
lacking in education, experience or any other criterion provided by the organisation. It also helps
in formulation of questions, which will be asked in the interview. These forms can also be stored
for future references thus maintaining a databank of the applicants.

Selection Tests are being increasingly used in employee selection. Tests are sample of some
aspect of an individual's attitudes, behaviour and performance. It also provides a systematic basis
for comparing two or more persons. The tests help to reduce bias in selection by serving as a
supplementary screening device. These are also helpful in better matching of candidate and the
job. These reveal the qualifications, which remain covered in application form and interview.

Selection Interview involves the interaction of the employer and the employee. Selection
involves a personal, observational and face-to-face appraisal of candidates for employment. It is
an essential element of the selection procedure. The information obtained through application
form and test can be crosschecked in the interview. The applicants who have crossed the above
stages have to go through Physical Examination either by the company's physician or the
medical officer approved for the purpose. The main aim is to ensure that the candidate is
physically fit to perform the job. Those who are found physically unfit are rejected.

[47]
The next stage marks of checking the references. The applicant is asked to mention in his
application form the names and addresses of two or three person who know him well. The
organisation contacts them by mail or telephone. They are requested to provide their frank
opinion about the candidate without incurring any liability. The opinion of the references can be
useful in judging the future behavior and performance of a candidate.

The executives of the concerned departments then finally approve the candidates short-listed by
the human resource department. Employment is offered in the form of an appointment letter
mentioning the post, the rank, the salary grade, the date by which the candidate should join and
other terms and conditions in brief.

Appointment is generally made on a probation of one or two years. After satisfactory

performance during this period the candidate is finally confirmed in the job on permanent basis
or regularized. Selection is an important function as no organisation can achieve its goals without
selecting right persons for the required job. Faulty selection leads to wastage of time and money
and spoils the environment of an organisation. Scientific selection and placement of personnel
can go a long way in building up a stable workforce. It helps to reduce absenteeism and labour
turnover. Proper selection is helpful in increasing the efficiency and productivity of the
enterprise.

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 CHAPTER 4

RECRUITMENT AND SELECTION

PROCEDURE
IN
DABUR INDIA LIMITED

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RECRUITMENT AND SELECTION PROCEDURE IN DABUR
INDIA LIMITED:

Dabur India Ltd. selects the future employees keeping everything in mind right from the
qualification of the employees to the future prospects-both of the organization and the
employees.

 The first step involves in the filling up of Manpower Indent Form. This form is filled
up by the department, which is having the vacancy. The form consists of various
questions which are to be answered like if the current vacancy is a replacement vacancy,
its reason is to be specified -the factors which resulted it like death, retirement etc. The
department is required to give the qualifications that the future candidate should possess.

 In the next step, this form is given to the Human Resource (HR) department; this
department sees if the position can be filled through internal sources. The internal sources
can be transfers, promotion etc. In the case of internal sources, the recommendations of
the employees are not taken into consideration. If the HR department does not find
suitable candidate within the organisation then this department has to give reasons for it.
The form then goes to the Corporate HR for its approval. When the suitable candidate is
not available within the organisation, the organisation then moves to the outside world for
filling up the vacancies.

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  If the number of employees required is large then the company has in its consideration
three ways-
• The Data bank of the organisation.
• Advertisements.
• Contacting large consultants.

The company maintains a databank of the candidates, which is used when the number of
vacancies to be filled up is large. The sources of databank can be the qualified candidates who
had applied in the organisation earlier but due to some reasons could not join the organisation.

 Advertisements are the second big source to attract the candidates. These are having
much larger scope and reach to a number of people. The qualifications required by the
organisation and the criteria is described in detail.

 Large number of consultants also constitutes a big source. Many people register
themselves with these consultants and they act as a bridge between the organization and
the candidates. The consultants provide the company required details about all criteria.
These consultants are fixed for the organisation, which are chosen on the basis of their
performance. In case of overseas recruitment it is checked whether their Indian
counterparts can perform the job efficiently or not. If need arises then they are also taken
through consultants. But if the number of vacancies is very small then the organisation
takes the help of the local consultants.

 The candidates are then required to fill up the Application Form. This form requires the
candidate to fill the details regarding the previous employment, if any and his personal
data. The form is having details regarding like the marital status, organisation structure,
the position held by the candidate, his salary structure, the top three deliveries to the
organisation that proved to be beneficial to the organisation, career goals, his strengths
and weaknesses etc.

 After the application form has been duly filled and submitted, the selection process starts
wherein the candidate has to pass through various stages and interview. The interview

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 panel consists of the persons from Corporate (HR), and other persons including the
executives from the department for which the vacancy is to be filled.

 The selected candidates are then short-listed. The short listed candidates are then given
priority numbers; this is due to the reason that sometimes the candidate who is having
first priority is unable to join the organisation due to some reasons then in that case the
candidate next in the priority list is given preference.

 The candidate has to undergo medical examination and his credentials are verified. After
qualifying these stages, the candidate is then absorbed in the organization and explained
his/her duties. This phase marks the end of the selection procedure.

 Dabur India Ltd.also performs Campus interviews as and when the need arises.

 The candidate can also apply online directly for the job in the official website of Dabur
India Limited i.e, www.dabur.com. The candidate has to subscribe on this website to
know different openings in DIL. The candidate can also upload his/her resume on the
website and can modify the resume according to the demand. The resume uploaded were
directly evaluated and selected if needed.

The esteemed organisation also provides apprentice training-wherein the organisation trains the
people in the working of the organisation and gives then stipend. If these trainees are found
useful to the organisation then they are absorbed in the organisation else they are given
certificate so that they can show this as an experience and get a job elsewhere.

Dabur is one of the top ten recruiter in India.

Recruitment Process:
 Sorting of application (based on demand and capacity)
 Experience
 Technical skills & qualification

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 Initial interview
 Written test
 Psychometric test
 GD ( persuasiveness, leadership, contribution)
 Personal Interview
 Assessment Centre (3-6 days)
 Second round interview (selection round)
 Physical test (medical exam/drug test)
 Background investigation
 References

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SUGGESTION:
Innovation is the last remaining competitive advantage in the rapidly changing technology and
globalization in business environment and HR ;recruiting and selection procedure is not exempt
from this fact. Now that the downturn in the economy is over and the “war for talent” is
returning. Never be satisfied with the status quo , because any competitive advantage you might
will have soon be gone, so develop programs and practices with a continuous improvement
component.

1) Individual managers performance should be measured and rewarded based on their

recruiting and selection performance.

2) Competitive analysis and side-by-side comparisons of the practices compared to the talent
competitor’s practices should be used in order to develop and maintain a competitive advantage.

3) Consistency of decision making can be improved by ensuring that the same people are
involved at each stage of the selection process.

4) To have faith in new generation of professionals as having a great potential and enthusiasm
in them. They have all the skills for front line sales except experience.

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CONCLUSION:
Finding the right person for a right job has always been important and decisions to appoint an
individual is one of the most crucial an employer will ever take. Front line sales force play a
crucial role in consumer satisfaction and customer satisfaction has a direct and positive effect on
company profits. So when recruiting entry level talent, companies always seek both great sales
people and great managers. By studying recruitment and selection procedure for front line sales.
I noted that companies have focused in recent years on developing improved employee selection
procedures to increase the likelihood that their employees will provide better customer service.
After studying recruitment and selection procedure for front line sales at Dabur, I realized that
companies have adopted a very structured method of recruitment while some are still trying to
improve on the basis of their experiences. In present circumstances, most firms prefer to rotate
jobs of employees rather than recruiting from outside due to various advantages.

Selection tests are used widely by companies and need for psychological testing has taken a
lead role in selection procedures. for front line sales various tests are used by different companies
to measure skills that company define compulsory for front line sales. Like Dabur uses features
of different kind of tests to make one tests, according to them tests work better when combined
in isolation.

Interview round in selection process is the most important because that’s the time where one
can judge confidence level, communication skill and general awareness of person, which are
very important for front line sales. The companies conduct structured interview which erodes
chance of missing any information.

Dabur carry the whole selection procedure in a very planned ,structured and systematic way

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BIBILOGRAPHY
www.dabur.com

www.citehr.com

www.google.com

Human Resource Management, V S P Rao

Wikipedia.

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