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• TABLE OF CONTENT
PAGE
TOPICS NO.
Company Profile 3
Timeline History of Dabur 4
Distribution Channel 5
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• COMPNY PROFILE
Dabur India Ltd is one of India’s leading FMCG Companies with Revenues of
about US$750 Million (over Rs 3416Crore) & Market Capitalization of over US$3.5
Billion (over Rs 16,000Crore). Building on a legacy of quality and experience of over
125 years, Dabur is today India’s most trusted name and the world’s largest
Ayurvedic and Natural Health Care Company.
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
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revenues stand at over Rs 500Crore in the 2008-09 fiscal, accounting for about 20%
of the total turnover.
4
: Dabur demerges Pharma Business
2005 : Dabur aquires Balsara
Dabur announces Bonus after 12 years
2006 : Dabur crosses $2 Bin market Cap, adopts US
GAAP
Approves FCCB/GDR/ADR up to $200 million
2007 : Celebrating 10 years of Real
Foray into organized retail
Dabur Foods Merged With Dabur India
2008 : Acquires Fem Care Pharma
Brand' club
• DISTRIBUTION CHANNEL
Through the nineties, the FMCG markets grew at almost 15% per annum in
value. Suddenly, in 2000
FMCG market growth stalled and then declined for the next four years. The
rapid opening up of the economy resulted in many new avenues of expenditure for the
consumer’s growing income. A sharp drop in interest rates from 18% to 8% led to
explosive demand for consumer durables like white goods, two wheelers and
automobiles. Mobile phone ownership and usage exploded due to its amazing lifestyle
and convenience benefits as well as lower prices. Entertainment, leisure and travel
sectors also boomed.
The lure of new avenues of expenditure in products and services led to
consumers restricting their spending on FMCG. Consumers’ downgraded to lower
priced substitutes from higher quality brands. As a result of this shift in spending
patterns, the FMCG market declined in value in the last four years creating a major
challenge for growth.
The FMCG sector has had a much better time in recent months, with market
showing signs of broad revival. It accounts for about 6.4% of total market
capitalization, and is up, compared to 6.1% in December’04. The situation continues
to be tough in the home and personal care segments. Rising raw material costs in the
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petro-based intermediaries used in shampoos and detergents have resulted in cost
pressures and a competitive market means companies have not been able to pass on
these costs fully to consumers through price hikes.
The FMCG sector is witnessing demand growth again, driven by improving
reach, organized retail and innovative channels, higher usage – driven by
affordability and rising incomes driving aspiration levels.
As a result, we see an improvement in sales growth for the FMCG industry.
FMCG is one sector which caters to the daily and more basic needs of
consumers and therefore don’t have a chance to run out of focus. From oral care
products to packed food to detergents, soaps, mosquito coils, etc, are the various
categories of products that FMCG market makes available to lakhs of consumers
across the country. Initially, Indian buyers were a bit conservative partly due to lesser
disposable income and partly due to fewer competitive and more variety of products.
But since almost a decade, brands like Pepsodent, Pepsi, Coke, Mortein, various ITC
brands, Dabur products, P & G products, etc, have made a stern attempts in providing
higher quality products with relatively competitive prices, making Indian consumer
enjoy brands which deliver high quality and adhere to global standards. The plethora
of such brands was thrown open to Indian consumers during 1990s which witnessed a
rise and growth in the FMCG industry. But from 2000 onwards a there has been a
negative growth of this industry. The reasons are manifold; firstly, yesteryears’
amenities started becoming necessities like, mobile phones, cars, branded clothes,
accessories, etc. Secondly, the disposable income of average Indian consumer rose
sharply within the past 5 year and finally, availability of various financial aides made
every reasonable and expensive purchase, easy thereby giving the Indian consumers
an unlimited exposure to experience the same.
But since December’04, the sales of various brands belonging to key players and the
overall FMCG industry performance have picked up and the intense sales
promotional efforts, cut throat competitive strategies, stronger distributional efforts
have helped various brands penetrate deeper into the markets and increased sales.
Today, rural Indian consumers market has by far become the highest revenue
generator for many of the FMCG product companies and availability of a wide variety
of range has allowed today’s Indian consumer to analyze and judge each product
accurately and make an ideal purchase decision.
RETAILER
CUSTOMER OR CONSUMER
FIVE LEVEL DISTRIBUTION CHANNEL OF
DABUR