PEST Analysis of Dabur India Ltd.

in Peoples Republic of China

Presented To :
Prof. A.Mazumder Assam University Silchar

Presented By
Biprangshu Bhattacharjee(48) Arunabha Sen (64)

CORPORATE PROFILE OF DABUR INDIA LTD.: Head Quarter : Kaushambi , Ghaziabad (Uttar Pradesh) Chairman of the Board of Directors: Dr. Anand Barman CEO/Managing Director:: Executive Officer Dabur India Limited The company come into existence in 1884, Calcutta Sunil Duggal , Chief

PRODUCT LINE
Hair oil Shampoo Vatika , Amla , Sarso (Anmol coconut) Vatika Heena conditioning , rootstrengthening Anmol-natural shine, silky

Baby & Vatika fairness , Gulabari , Vatika fairness Skin Care face pack Janmaghutti , Olive oil , Gripewater , Dabur lal tel Digestive Hajmola range , Hingoli, Pudin hara Health Chyawanprash , chyawanshakti , Dabur Supplemen Honey, Glucose ts Oral Care Babool (rural market), Meswak (unani

GROWTH PROFILE

Sales (in cr.)

COUNTRY : China FORM OF GOVERNMENT: Multiparty democratic system of cooperation and political consultation having common agenda and constitution under the frame work of peoples political consultative conference (CPPCC ) . HEAD OF THE GOVERNING COUNCIL OF PEOPLE REPUBLIC OF CHINA : Hu Jintao

A VIEW OF CHINA IN THE WORLD MAP

Geography Total area: 9,596,961 sq. km. (about 3.7 million sq. mi.). Cities: Capital--Beijing. Other major cities--Shanghai, Tianjin, Shenyang, Shenzhen, Wuhan, Guangzhou, Chongqing, Harbin, Chengdu, and Dalian. Terrain: Plains, deltas, and hills in east; mountains, high plateaus, deserts in west. Climate: Tropical in south to subarctic in north.

People
Population (July 2011 est.): 1.33 billion Population growth rate (2011 est.): 0.593%. Health (2010 est.): Infant mortality rate--16.06 deaths/1,000 live births. Life expectancy--74.68 years (overall); 72.68 years for males, 76.94 years for females. Language: Official--Mandarin (Putonghua); there also are many local dialects. Education: Years compulsory--9. Literacy--92.2%. Total labor force (2010 est.): 780 million. Labor force by occupation (2008 est.): Primary (agriculture)--297.08 million, 38.1%;secondary (industrial)--216.84 million, 27.8%; tertiary (services)--266.03 million, 34.1%.

Economy

GDP (2010 est.): $5.88 trillion (exchange rate-based);

$10.09 trillion (purchasing power parity).

Per capita GDP (2010): $7,600 (purchasing power parity).

GDP real growth rate (2010): 10.3%.

Natural resources: Coal, iron ore, petroleum, natural gas,

mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc, uranium, hydropower potential (world's largest).

Agriculture: Products--Among the world's largest producers of

rice, wheat, potatoes, corn, tea, millet, barley; commercial crops include cotton, other fibers, apples, oilseeds, and fish; produces variety of livestock products.

Trade: Exports (2010) $1.506 trillion: electrical and other machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment. Main partners (2009) U.S. 20.03%, Hong Kong 12.03%, Japan 8.32%, South Korea 4.55%, Germany 4.27%.

Imports (2010 est.)--$1.307 trillion: electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals. Partners (2009)--Japan 12.27%, Hong Kong 10.06%, South Korea 9.04%, U.S. 7.66%, Taiwan 6.84%, Germany 5.54%. Currency: Renminbi.

 CURRENT ECONOMIC VOLUME : Around $14 trillion EXISTING AYURVEDA MARKET IN CHINA : Around $5 billion(of $62 world market)

WORLD AYURVEDA MARKET: European union 45%. North America accounts 11%, Japan 16%, ASEAN countries 19% Rest of European Union 4.1%. Countries like Japan and China have successfully marketed their traditional medicines abroad.

 SIX GOVERNANCE DIMENSION CHINA: i) Voice & Accountability, ii) Political Stability and Lack of Violence/Terrorism, iii) Government Effectiveness, iv) Regulatory Quality, v) Rule of Law vi) Control of Corruption. Percentile ranks indicate the percentage of countries worldwide that rate below the selected country

GOVERNANCE INDEX CHINA INTERMS OF DIFFERENT PARAMETER (PERCENTILE): 1.VOICE AND ACCOUNTABILITY-5 2.POLITICAL STABILITY AND ABSENCE OF VIOLENCE-30 3.GOVERNMENT EFFECTIVENESS-60 4.REGULATORY QUALITY-47 5.RULE OF LAW-45 6.CONTROL OF CORRUPTION-38

SOME OTHER INDEXES : Human Development Index 98 Corruption Index 78 Doing Business -87 GDP(PPP) - $ 7536

MAJOR FMCG PLAYERS IN CHINA ARE: Kan Herb, Nestle, Colgate-Palmolive, Unilever, and Procter & Gamble.

Why to go China ? To expand business in a new and mass demography. serve other market most competitively .

PEST Analysis

POLITICAL VARIABLE ANALYSIS

Stable Government

Inter party democracy A leadership which themselves from a culture of Ayurveda .

ECONOMIC VARIABLE ANALYSIS

 Inflation Government Incentive Cheap Labour Some factors play very role in getting cheap labour in China , these are : Moderate inflation rate Wide diversity of population

SOCIO-CULTURAL VARIABLE ANALYSIS

 Lifestyle changes Health concious consumption culture Age distribution More financial inclusion

TECHNOLOGICAL VARIABLE ANALYSIS

 Decentralisation of Technology Invention Culture Low cost technology

RECOMMENDATION: From different index analysis we found that the effectiveness of the government is good to conduct business operation. From different PEST variable analysis we found that china is a very good investment destination for Dabur India ltd. Because of the summed factsStable political condition. Viable economic condition. Cultural association. Availability of cheap technology.

Community collaboration: Dabur India ltd can go community collaboration so that company can have a good social base over there, which facilitate them to get favorable environment as a new entrant. Also it will help the company in getting more involvement of common people and can get more social and economic benefit

Thank You