Dabur Success Story

Dr. S.K Burman started Dabur in 1884

4th largest FMCG company in India
Vision:
Dedicated to the health and well being of every household
Core Knowledge of Ayurveda as competitive advantage
Revenues of Rs 7,073 Crore) & Market Capitalisation of US$ 5
Billion
Focus on growing its core brands - reaching out to new
geographies leveraging technology

PESTEL Analysis
POLITICAL & ECONOMIC FACTOR:
Goods and Service Tax, which will replace the multiple indirect taxes
levied on FMCG sector with a uniform, simplified and single-pint taxation
system, is likely to be implemented soon. The rate on goods is proposed
to be 20% and on services 16%
As per Food Security bill, 5Kg of food grains per person per month will be
provided at subsidized prices from State Governments under the
targeted public distribution system. The agriculture would receive a
boost and this could lead to more investment in improving agriculture
productivity making it competitive
FDI in retail : Decision to allow 51% in multi brand retail and 100% in
single brand retail augers well for the outlook for the FMCG sector. The
move is expected to bolster employment, and supply chains, apart from
providing high visibility for FMCG brands in organized retail markets,
bolstering consumer spending, and encouraging more product launches
Relaxation of license rules: Industrial licenses are not required for almost
all food and agro-processing industries, barring certain items such as
beer, potable alcohol and wines, cane sugar, and hydrogenated animal

PESTEL Analysis

ECONOMIC FACTORS :

Increasing consumerism
Favorable demographics and rising income levels
Total consumption expenditure set to increase - expected to reach
nearly USD3600 billion by 2020 from USD 1328 billion in 2012
Working population (aged between 15 and 64 years) estimated to
increase from 780 million in 2011 to 900 million by 2030
India's middle income population estimated to reach 267 million by
2016 from 160 million in 2011
Rural FMCG market size to grow from USD 12 billion in 2011 to USD
100 billion by 2025 driven by increase in per capita disposable
incomes
Despite higher interest rates and elevated Inflation, the Indian
FMCG grew at a healthy 15-20% last year driven by robust rural
and urban demand

PESTEL Analysis

SOCIO-CULTURAL FACTORS :
Education levels : Education is one of the most important factor
which influence the buying power of consumer, while selecting a
particular goods a consumer should know all its features so it can
differentiate them with another products.
Law affect social behaviour : Different laws are made by the
government to safe guard the rights of consumers. For exampleConsumer protection act, this law indicates that a consumer can file a
case against a seller if he finds that he is cheated.

PESTEL Analysis

TECHNOLOGICAL FACTORS :
Discoveries & innovation
Advancement in technology
Measures Taken by Dabur : Dabur invested Rs. 15 crores in
hardware and software for its go-downs and branches to be directly
linked with its headquarters through direct emails

ENVIRONMENTAL FACTORS :
Environment regulations
Environmental protection

PESTEL Analysis

LEGAL FACTORS :
Companies law :
Employment law :
Consumer protection :
Industry-specific regulations :

SWOT Analysis

Export Opportunities in Foreign

Market
Affinity towards yoga
Growing Womens earning power
has made them health and beauty
conscious
Unhealthy food habits due to
modernization has forced people
to take to ayurvedic supplements

Untrained professionals
Growing competition
and lower profitability
Kerala is a Ayurvedic
hub, hence people visit
directly
and attend
health camps to get
cured
Lead and Ferric Content
present
may give
reverse effect

Porters Five Force Model