CORPORATE LEVEL STRATEGY: Focus is on expansion in domestic and foreign market, new product launches and acquisitions, which

h will increase sales and profits. This strategy has paid rich dividends for Dabur and has delivered sales growth ahead of the consumer non-durable sector average 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 Dabur is present in categories ranging from mosquito repellents and juices to face packs and honey, some acquired and some developed in-house Dabur believes in in few power brands that are nurtured to offer huge returns It aims to create a few champion brands to result in sustainable margins Dabur leverages under its two power brand i.e. Dabur and Vatika Dabur the strategy for a new brand launch- by the third year, a new brand must contribute to common overheads and by the fifth year, it should make "some profit The company does not intend to be the market leader but aims at growing faster than the market Dabur is consciously entering only those categories that offer a platform for herbal products

BUSINESS LEVEL STRATEGY Dabur laid down a business strategy called ASTRA to boost rural sales and to achieve a steady growth in retail. Taking help of ACCENTURE to improve the supply chain and distribution network. Dabur also aims at achieving doubled sales by aggressive ACQUSITIONS. The growth strategy for international markets would revolve around EXPANSION. Dabur India has also chalked out its plans to enter the health and beauty RETAIL market in the country. FUNCTIONAL STRATEGIES Dabur caters to large Indian market through its 9 plants spread across North and West India (exhibit 1). To achieve operational efficiency it has also out-sourced its Personal care products to 8 contract manufacturers. Dabur has been giving considerable emphasis on improving manufacturing and operational efficiencies by enhancing productivity of capital and existing assets through its Total Production Maintenance program. It emphasis on improving plant efficiencies in the existing manufacturing facilities and following more stringent quality control and supervision norms at outsourcing locations through its Total Quality Control program. It aims at reducing raw material wastage, time saving and makes the procurement process more efficient. Dabur strongly believes that financial performance and sustainability go hand in hand and can never be separated. To achieve sustainability Dabur is committed to reduce its carbon footprints, maximize production paralleled by minimizing consumption of natural resources. It leads various initiatives towards achieving the goal: New boiler technology to generate attractive savings in energy costs, and reduce discharge of solid waste to the environment Substitute furnace oil with pet cake a by-product of crude refining-as fuel, a move that has led to considerable every savings Using rice husk as fuel to save energy costs Convert herbal waste onto bio-briquettes that can be used as fuel in boilers Rain water harvesting and water recycling

Operations at Dabur continuously strives to improve its performance and its standing in the society by focusing all efforts towards making the most meaningful difference in both environment and social sustainability1. Suppliers and purchase process Dabur has a huge network of suppliers and vendors to cater to the raw material requirements for its 300 diverse products in FMCG, Healthcare and Ayurveda segments. The Central Planning and Procurement Division (CPPD) is responsible for purchase operations at Dabur, acting in coordination with the Production and Marketing Divisions.

Dabur is targeting sales growth of above 15 per cent after implementing Astra, and expects nearly 40 per cent growth in sales.

It runs refresher-training courses every six months. About 75 per cent of the company's sales come form rural areas, hence, it has created the Astra training consultancy module in five vernacular languages - Bengali, Tamil, Telugu, Malayalam and Kannada.

Under Astra, Dabur has categorized its sales and distribution channels into finer segments, such as key grocers, mass grocers, chemist, wholesale, small outlet and modern trade.

IT INITIATIVES AT DABUR At Dabur, Knowledge and technology are the key resources which have helped the Company achieve higher levels of operational excellence and efficiency. To would also help in integrating its vast distribution system spread across the world. Some of its major IT initiatives to achieve operational efficiency include:

Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006 for all business units Implementation of a country wide new WAN Infrastructure for running centralized ERP system Extension of Reach System to distributors for capturing Secondary Sales Data. Roll out of IT services to new plants and CFAs.

To build competitive edge, Dabur asked Accenture to help identify specific opportunities that would lead to short-term advantage and long-term growth

RESEARCH AND DEVELOPMENT Research at Dabur focuses on its core values of consumer focus and innovation. There are over ten diverse areas in which Dabur Research Foundation carries out research besides conducting tests and trials. They are Ayurvedic Research, Pharmaceutical research, Phytopharmaceuticals, Biotechnology, Agronomy, Personal care products, analytical, synthetic chemistry, oncology research, peptide research, food research and clinical research.