Dabur: The Success Story of India's Multinational Ayurvedic Consumer Goods Company

Dabur: The Success Story of India's Multinational Ayurvedic Consumer Goods Company

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Are you aware that FMCG is India's fourth-largest sector? FMCG's full form is Fast-Moving Consumer Goods that consist of a wide range of products including food and snacks, beverages, household products, beauty products, clothing, and such things. It is next to impossible to think of a life without the FMCG industry.

Products like cooking oil, honey, biscuits, other snacks, toothpaste, and whatnot are all the basic commodities we need in our daily lives. We all are familiar with this brand right when we were kids, it is the brand that every house uses it. The brand that is dear to every Indian is Dabur.

Dabur is one such multinational consumer manufacturing goods company that creates Ayurvedic medicine and natural consumer products. It is the world's leading Ayurveda Company and one of the largest FMCG companies in India.

Explore everything about Dabur in this article like Dabur's key people, mission and vision, business and revenue model, challenges faced, competition, and more.

Dabur - Company Highlights

Company Name Dabur Ltd
Founder S. K. Burman
Founded 1884
Headquarters Ghaziabad, India
Sector Manufacturing, Consumer Goods
Type Public
Area Served Worldwide
Total assets β‚Ή9,354 crores (2020)
Revenue β‚Ή10,800 crores (2022)
Number of Employees 7,740 (2020)
Website www.dabur.com

Dabur - About
Dabur - Industry
Dabur - Founders and Team
Dabur - Startup Story
Dabur - Mission and Vision
Dabur - Name, Logo, and Tagline
Dabur - Business Model
Dabur - Growth and Revenue Model
Dabur - Challenges/Controversies Faced
Dabur - Investments
Dabur - Mergers, Acquisition, and Shareholders
Dabur - Online and Social Media Presence
Dabur - Advertisements and Social Media Campaigns
Dabur - Competitors
Dabur - Awards and Achievements
Dabur - Future Plans

Dabur - About

Dabur Website
Dabur Website

As the "Custodian of Ayurveda," Dabur creates goods for customers across generations and regions by fusing ancient traditional knowledge with cutting-edge science. With revenues of over Rs. 10,800 crores and a market capitalization of over Rs. 100,000 crores, Dabur India Limited is the fourth-largest FMCG company in India.

Dabur is currently the most reputable brand in India and the largest Ayurvedic and Natural Health Care Company in the world, with a collection of over 250 Herbal or Ayurvedic products due to its legacy of quality and experience spanning over 138 years. There are about eight Power Brands with distinct brand identities that make up Dabur's FMCG portfolio today.

These include Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, and Dabur Honitus in the healthcare sector; Dabur Amla and Dabur Red Paste in the personal care sector; and RΓ©al in the food and beverage sector. Furthermore, Vatika is a Global Power Brand.

The brand currently engages in important consumer product categories such as foods, health care, home care, skin care, and oral care. With 6.7 million retail locations and a significant penetration in both urban and rural countries, Dabur has a sizable distribution network.

Dabur's products are available in over 120 countries across the globe today. Currently, the brand is well recognized in the middle east, SAARC nations, Africa, the US, Europe, and Russia. It is reported that over 27% of Dabur's overall revenue comes from abroad at the moment.

It is fascinating how the brand from humble beginnings in Kolkata to becoming the world's leading Ayurveda Company. Dabur has been able to successfully transition from a family-run business to a professionally managed company.

Dabur stands apart from the competition due to its aptitude for innovation and corporate governance, which it consistently sets new benchmarks for. Dabur Group of Companies is NewU, Hobby, and Namaste.

Dabur - Industry

Dabur Ltd. belongs to the FMCG industry. According to estimates, India's retail market had risen from $840 billion in 2017 to $ 1.1 trillion by 2020, with contemporary trade predicted to grow at a rate of 20–25 percent annually, which will likely increase FMCG businesses' profits.

Dabur - Founders and Team

Dabur Ltd is founded by Dr. S.K Burman in 1884.

Dr. S.K Burman

Dr. S.K Burman
Dr. S.K Burman

Dr. S.K Burman is the founder of Dabur. He started Dabur to treat common people in remote communities efficiently and economically. Dr. Burman addressed the challenge of creating natural treatments for the deadly illnesses of the day, such as cholera, malaria, and plague, with the zeal and fervor of a missionary.

As soon as word of his treatments spread, he gained a reputation as the reliable "Daktar" or physician who developed efficient treatments. And so, the name of his business, Dabur, was derived from the Devanagri translation of Daktar Burman.

Amit Burman

Amit Burman
Amit Burman

In 2019, Amit Burman was appointed as the Chairman of Dabur India Ltd. He holds a degree of MBA, from the University of Cambridge, and a BSc degree in Industrial Engineering from Lehigh University in Bethlehem, in the United States. He also completed his master's in Industrial Engineering from Columbia University in the United States.

He began his career in the department of industrial engineering at Dabur, where he was in charge of introducing new machinery, enhancing existing processes, reducing the need for labor, and optimizing product packaging. At Colgate Palmolive in New York, USA, where he worked in the Manufacturing Strategy Departmentβ€”the company's internal consultants, Amit gained useful expertise.

Dabur - Startup Story

To talk about the startup story of Dabur, Dr. S.K Burman first launched its mission to distribute health care products in Calcutta, West Bengal in 1884. His ancestors are Punjabi Khatris, and they moved from Punjab to Kolkata. Dr. Burman started to create Ayurvedic medications for conditions like cholera, constipation, and malaria around the middle of the 1880s while working as an Ayurvedic practitioner in Kolkata.

He afterward began to bicycle-sell his medications in Bengal as a licensed doctor. The term "Dabur," a combination of the words daktar (doctor) and Burman, began to be used by his patients to refer to him and his medications. He later mass-produced his Ayurvedic formulas.

In 1919, C.L Burman son of Dr. Burman set up manufacturing plants and R&D facilities to check the quality of the mass productions. Due to an unpleasant situation with G.C Burman, grandson of Dr. Burman, the factory had to be shifted to Delhi from Calcutta.

In 1986, Dabur became a Public Limited Company and was renamed as Dabur India Ltd. This all came after the reverse merger with Vidogum Limited. It was in 1993 when the brand raised its benchmark by entering the specialized health care area of the cancer treatment plant at Baddi in Himachal Pradesh.

Soon after, the brand expanded and came with a variety of products by partnering with global companies and giving it international status. In 2000, Dabur India Ltd made a turnover of Rs 1,000 crores and established itself as a market leader.


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Dabur - Mission and Vision

Dabur's Mission and Vision
Dabur's Mission and Vision

Dabur's vision is to be "Dedicated to the health & well-being of every household."

The brand has seven principles by which they carry out its business. These are Ownership, Passion for winning, teamwork, integrity, people development, consumer focus, and innovation.

Dabur - Name, Logo, and Tagline

Dabur Logo
Dabur Logo

The name of the brand is derived from Dr. S.K Burman, as the locals used to address him as 'Daktar'.

Dabur has changed its tagline a few times. The current tagline of Dabur is, "Celebrate Life". Other most known taglines of Dabur are "Science-based Ayurveda" and "Live better with Dabur".

The logo of Dabur represents a banyan tree with its trunk forming the shape of three people with arms raised symbolizing celebration and jubilation.

Dabur - Business Model

Dabur is said to operate through three types of business models. Consumer Care Division (CCD), International Business Division (IBD), and Consumer Health Division (CHD) are the three business units that make up the business.

Dabur manufactures a wide range of products. Its Consumer care Division is divided into four classifications named Health care products, hair care products, skin care products, foods, etc.

Dabur's Healthcare products are categorized into the list of health supplements, digestive, oral care, energizers, women's health products, and many other similar categories. The health care division of Dabur is most popular for its products named Dabur Amla, Vatika, Almond Oil, Almond Shampoo, etc. Dabur has a presence in the international markets with brands like Dabur Amla and Vatika.

The brand operates 20 cutting-edge production sites all around the world. In addition to the seven factories in Sahibabad (Uttar Pradesh), Jammu Silvassa Alwar Katni Narendrapur Pithampur, and Nasik, eight of these 12 production facilities are situated in India, with Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal) serving as the nation's two principal manufacturing hubs.

Outside national boundaries, the brand has offices in Dubai, Egypt, Nigeria, Bangladesh, the United States, London, and Nepal.

Dabur has three Subsidiaries namely:

  • Dabur Research Foundation
  • Aviva India
  • H&B Stores Ltd

Dabur CSR Activities


Dr. S.K Burman founded the non-profit Dabur's Sustainable Development Society (SUNDESH), which strives to carry out charitable work in the fields of health care, education, and other socio-economic endeavors. The corporate social responsibility (CSR) projects of Dabur are driven by SUNDESH.

The brand has also joined many teams from NGOs across the country to undertake and offer special training programs for farmers, villagers, and tribal communities to train them on sustainability and building a greener environment.

The above graph shows the segment distribution of Dabur as per the data published by touchstonemarketanalysis.blogspot.com
The above graph shows the segment distribution of Dabur as per the data published by touchstonemarketanalysis.blogspot.com

Dabur - Growth and Revenue Model

The overseas revenue of Dabur makes up 30% of the total turnover. In the fiscal year that ended on March 31, 2022, the total income of Dabur is Rs 8521.05 crores. The company's December 2021 Net Sales totaled Rs. 2,941.75 crores, an increase of 7.8% over one year.

The brand's International Business saw a rise of over 34% in constant currency, advancing it along the growth curve. The MENA business increased by about 49% during the quarter, while Egypt's business increased by 43%, Namaste by more than 40%, and SAARC's business increased by 41%.

The above graph shows an estimated revenue distribution of the Dabur as per the data available on Wikipedia
The above graph shows an estimated revenue distribution of the Dabur as per the data available on Wikipedia

Dabur - Challenges/Controversies Faced

In every business, there are ups and downs, and controversies became a part of it when it is a multinational company. Similar was the case with Dabur. In 2014, when the BJP government revealed the names of those with black money accounts, there was the name of former executive director Pradip Burman.

There were also charges against Dabur Honey, according to a report, that Dabur Honey had added sugar syrup from other companies.

Dabur - Investments

Till now, Dabur has made two investments. The most recent investment by the brand is at Everready industries on 25th April 2022.

Date Company Name Funding Round Amount Invested
October 9, 2019 Melorra SERIES C $12 million
April 25, 2022 Eveready Industries Post-IPO-Equity -

Dabur - Mergers, Acquisition, and Shareholders

Dabur India has made a total of seven acquisitions. Some of the acquisitions are as follows:

Date Company Name
June 18, 2010 Fem Care Pharma Ltd.
January 3, 2011 Namaste Laboratories
May 4, 2011 Ajanta Pharma - Counter Energiser Brand 30 Plus
July 19, 2016 Discaria Trading
May 18, 2017 D&A Comestics

As of March 31, 2021, Dabur had 296,439 shareholders in total, and 1,767 425 349 fully paid-up equity shares were owned.

Dabur - Online and Social Media Presence

As the country's fourth-largest FMCG, Dabur knows how to keep its customers updated through its strong social media presence on major platforms.

Facebook - 41,870 followers

LinkedIn - Β  743,774 followers

YouTube - Β  3.59K subscribers

Instagram - 16.8K followers


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Dabur - Advertisements and Social Media Campaigns

Last year (2021) to create awareness on the occasion of the International Day of Persons with Disabilities, Dabur Honey, the brand from Dabur India, launched a campaign called 'Shuddhata Sabke Liye'.

Dabur pitched this video to promote the ideas of inclusion, empowerment, and equal opportunity for all. It shows how Dabur Honey makes a couple's life sweeter by helping them make every moment special for one another despite hardship. Because of its purity, Dabur Honey has always played a significant role in people's life, whether they use it for sweetness, health, or celebration.

The campaign reached great heights because of actor and writer Swanand Kirkire, who gave the voiceover for this video.

Dabur - Competitors

Some of the top competitors of Dabur are:

  1. Hindustan Unilever Limited (HUL)
  2. Godrej Consumer
  3. Marico
  4. P&G
  5. Colgate
  6. Emami
  7. ITC
  8. Nestle
  9. Sheela Foam
  10. Gillette India

Dabur - Awards and Achievements

Here are some popular awards won by Dabur:

  • Dabur was ranked among the Iconic Brands of India (2017) by the Economics Times
  • Dabur has won the award for Best Risk Management Practice in the FMCG category by CNBC
  • Dabur was also recognized with ZEE Media Family Business Legacy Award
  • Dabur was also ranked as a top brand in Best Indian Brands (2016)
  • Dabur ranked 39 in the BT500 ranking of India's Most Valuable Companies (2016)

Dabur - Future Plans

The company currently reported that it had over 100% growth and contributes to 8.2% of the India FMG business.
The CEO of Dabur, Mohit Malhotra says, "We continue to invest ahead of the curve in expanding our rural footprint. We have expanded our rural coverage by 16%, from 60,000 villages at the end of 2020-21 to 69,000 villages in Q1, 2021-21. We plan to further expand it by 33% to 80,000 villages over the next 2 years."


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Conclusion

Dabur is undoubtedly one of the most well-recognized multinational consumer goods companies. Initiated in 1884 by Dr. S.K Burman in Kolkata, is now well recognized in more than 120 countries across the globe including SAARC countries. In 1986, Dabur went public and was named Dabur India Ltd.

Dabur has many subsidiaries and is a well-known name in the food and consumer care business. Dabur receives 60% revenue from the from consumer care business, 11 % from the food business, and the remaining amount from its international business. The above article contains some essential information about the Dabur company and its journey.

FAQs

How did Dabur get its name?

The founder of Dabur, Dr. S.K. Burman was a qualified physician and was used to sell ayurvedic medicines for some common diseases. His patients started referring to him as a Dabur. They merged the words Daktar (Doctor) and Burman to be named Dabur.

Who is the CEO of Dabur?

The present CEO of Dabur is Mohit Malhotra.

Who is the brand ambassador of Dabur Honey?

The present brand ambassador of Dabur Honey is a south actress Rashmika Mandanna.

What is the logo of Dabur?

The logo of Dabur is a fresh green banyan tree.

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