Dabur

•Dabur India Limited is India's leading FMCG Company with interests in health care, personal care and foods. • Dabur has two major strategic business units (SBU)- Consumer Care Division (CCD) and Consumer Health Division (CHD). •In 2000, Dabur achieved a turnover of Rs. 1000 crores. Dabur crossed $ 2 billion market capital in 2006.

DABUR’S GROWTH STRATEGY – EXPANSION, INNOVATION & ACQUISITION. •Dabur India outlined a three-pronged strategy involving an aggressive expansion in domestic and foreign market, new product launches and acquisitions, which is expected to double sales and profits by 2010. •The company, which is looking at double-digit growth across all product segments over the next four years, expects its sales to be around Rs 4,000 crore and profits around Rs 400 crore by the end of 2010. •This strategy has paid rich dividends for Dabur and has delivered sales growth ahead of the consumer non-durable sector average, over the past 1 year already.

•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 and with the demerger of Dabur’s FMCG and pharma business. •Dabur also aims at achieving doubled sales by the end of 2010 through 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.

•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.

•Accenture suggested separation of Dabur`s pharmaceutical and FMCG business to provide greater focus and growth to each business under separate business heads. •Accenture and Dabur team optimized the company’s internal logistics and distribution processes for mega retail customers. •How Accenture helped DABUR? ­Implementing a new sales and distribution strategy ­Developing a new supply chain management capability ­Optimizing Dabur’s ERP capabilities. ­Leveraging IT for business initiatives. ­Outsourcing IT operation

•The company acquired the Balsara group of companies in 2005. This acquisition gave Dabur new brands in toothpaste, mosquito repellants, toilet cleaners, and air freshners. •In line with its strategy of growing aggressively in foreign markets, it acquired a Nigerian firm - African Consumer Care in late 2007. •Dabur has successfully acquired 72.15% of Fem Care Pharma Ltd. •The acquisition offers Dabur a strong platform to enter newer product categories and markets. The acquisition of these firms will serve as fuel for the company’s growth and enhance the shareholder value.

•International business will be spearheaded by two business heads  – one based in Dubai and the other in India.  •For the developed markets in the US and Europe, Dabur is looking at alliances with distributors, focusing mainly on over-the counter herbal healthcare products. • The company had initiated talks with local FMCG players in the neighboring countries and finalized a deal to start manufacturing hair oils and shampoos initially by the end of 2005. •It has targeted to achieve Rs 300 crore turnovers from overseas businesses by 2007. International business is likely to be a significant contributor to growth in future.

•In order to drive its retail subsidiary H&B Stores Ltd, Dabur has appointed Peter Gerard Baker as the Chief Executive Officer. •As part of the growth initiative of this brand, the company plans to set up 350 retail stores across India in 5 years and expand it to over 1,000 stores by its 10th year of operation. •The ‘newu’ brand image presents a new dimension to lifestyle branded retail in India, designed by Pikefell, UK-based brand agency. •Accenture is the technology partner for ‘newu’ retail operations.

As they are focusing on rural selling, Dabur should give more stress on making more competitive logistics and inventory management system so that reach in every nook and corner of the country in the given span of time is possible. •Dabur should come up with advertising strategy like radio adds or television adds which are directly targeting the rural people so that they could get high results. •The retail stores currently opened by Dabur is only one, in northern region i.e. in Delhi, and they have proposed 7,300 retail outlets. Atleast they should open one in south region so as to have reality check of their distribution. Also giving clear view of their strategy for retail. •Rural plan i.e. ASTRA is only operated in south region of India which should be implemented in northern area as well since it is the main hub of Dabur.