The Rise of Dabur: An International Ayurvedic Consumer Goods Company From India
The Rise of Dabur: an International Ayurvedic Consumer Goods Company from India
Are you aware that the fourth-largest sector in India is FMCG? The full name of FMCG is Fast-Moving Consumer Goods, which includes a variety of goods like food and snacks, drinks, home goods, cosmetics, apparel, and other items. Imagine trying to live your life without the FMCG business; it is virtually impossible.
The essential items we require on a daily basis include things like cooking oil, honey, biscuits, other snacks, toothpaste, and other items. This is a brand that every home uses, so we were all exposed to it when we were little. Every Indian holds Dabur in high regard.
Ayurvedic medicines and natural consumer items are produced by large global corporations like Dabur. It is the largest FMCG company in India and the leading Ayurveda company in the world.
Learn everything there is to know about Dabur in this article, including its key personnel, mission, and vision, as well as its business and revenue strategy, obstacles it has experienced, and competitors.
Dabur, known as the “Custodian of Ayurveda,” produces goods for consumers across generations and geographic boundaries by blending traditional knowledge from the past with modern science. Dabur India Limited is the fourth-largest FMCG firm in India, with revenues of over Rs. 10,800 crores and a market valuation of over Rs. 100,000 crores.
Due to its long history of excellence and expertise spanning more than 138 years, Dabur is today the most reputable brand in India and the largest Ayurvedic and Natural Health Care Company in the world, with a selection of over 250 Herbal or Ayurvedic goods. Dabur’s FMCG portfolio consists of roughly eight Power Brands with distinctive brand identities.
In the healthcare industry, these include Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, and Dabur Honitus; in the personal care and food and beverage industries, Dabur Amla and Dabur Red Paste. Vatika is also a Global Power Brand.
Currently, the brand is active in significant consumer product categories like food, health care, home care, skin care, and oral care. Dabur has a vast distribution network with 6.7 million retail locations and considerable penetration in both urban and rural nations.
Today, Dabur goods are offered in more than 120 nations throughout the world. The brand is currently highly known in the SAARC countries, Africa, the US, Europe, and Russia. According to reports, Dabur currently receives more than 27% of its total revenue from outside India.
It is amazing how the company has grown from its modest beginnings in Kolkata to become the top Ayurveda Company around the globe. Dabur has been able to make the shift from a family-run company to one that is expertly managed.
Due to its propensity for innovation and corporate governance, areas in which it continuously sets new standards, Dabur differentiates out from its competitors. The Dabur Group of Companies includes Namaste, NewU, and Hobby.
Dabur – business
Dabur Ltd. is a part of the FMCG sector. Indian retail sales are expected to increase from $840 billion in 2017 to $1.1 trillion by 2020, growing at a rate of 20 to 25 per cent yearly, which will likely boost profitability for FMCG companies.
Founders and Staff of Dabur
Dr S.K. Burman established Dabur Ltd. in 1884.
S.K. Burman, M.D.
Dabur was established by Dr S.K. Burman. He founded Dabur in order to provide effective and affordable care for common people in isolated communities. With the zest and devotion of a missionary, Dr Burman took on the challenge of developing all-natural cures for the fatal diseases of the day, such as cholera, malaria, and plague.
He became known as the trustworthy “Daktar”, or doctor who created effective remedies as soon as word of his therapies circulated. His company’s name, Dabur, was thus formed from Daktar Burman’s Devanagri translation.
Amit Burman
Amit Burman was named Dabur India Ltd.’s chairman in 2019. He has an MBA from the University of Cambridge and a BSc in Industrial Engineering from Bethlehem, Pennsylvania’s Lehigh University. He also earned a master’s degree in industrial engineering from Columbia University in the United States.
At Dabur, where he started his career, he was in charge of introducing new machinery, improving current processes, lowering the demand for workers, and improving product packaging.
Amit developed valuable experience while working for Colgate Palmolive at the Manufacturing Strategy Department in New York, USA—the company’s internal consultants.
Dabur – The Business Story
In 1884, Dr S.K. Burman began distributing health care products in Calcutta, West Bengal, which is where the company got its start. His ancestors, Punjabi Khatris, immigrated to Kolkata from Punjab. Around the middle of the 1880s, while practising Ayurveda in Kolkata, Dr Burman began to develop Ayurvedic drugs for ailments like cholera, constipation, and malaria.
He then started selling his meds in Bengal on bicycles while holding a medical licence. His patients started referring to him and his treatments as “Dabur,” a compound of the words data (doctor) and Burman. Later, he put his Ayurvedic recipes into industrial production.
Dr Burman’s son C.L. Burman established manufacturing factories and R&D facilities in 1919 to monitor the quality of mass outputs. The plant had to be moved from Calcutta to Delhi because of a problematic issue involving G.C. Burman, the grandson of Dr. Burman.
In 1986, Dabur changed its name to Dabur India Ltd. and became a public limited company. After the reverse merger with Vidogum Limited, everything happened. By entering the specialist healthcare sector of the cancer treatment facility at Baddi in Himachal Pradesh, the brand raised its bar in 1993.
Soon after, the brand gained international recognition by collaborating with large corporations and releasing a range of items. Dabur India Ltd. established itself as the market leader in 2000 with a revenue of Rs 1,000 crores.
Mission and Vision of Dabur
“Dedicated to the health & well-being of every household,” is how Dabur describes its mission.
The company runs its operations according to seven principles. Ownership, teamwork, honesty, developing people, customer focus, and innovation are some of these.
Name, logo, and tagline for Dabur
The brand takes its name from Dr S.K. Burman, who was known as “Daktar” among the people.
Dabur has a history of changing its slogan. Dabur’s current slogan is “Celebrate Life.” Dabur’s other catchphrases include “Science-based Ayurveda” and “Live better with Dabur.”
The banyan tree of the Dabur emblem is shaped like three individuals with their arms raised, signifying celebration and jubilation.
Business Model of Dabur
According to reports, Dabur has three different business methods. The three business divisions that make up the company are the Consumer Care Division (CCD), the International Business Division (IBD), and the Consumer Health Division (CHD).
Dabur produces a wide variety of goods. The company’s consumer care division is broken down into four categories: foods, health care goods, hair care products, and skincare products.
Health supplements, digestive aids, oral care products, energizers, women’s health goods, and many more related categories are just a few of the subcategories under which Dabur’s Healthcare products fall. The Dabur health care sector is best known for its Dabur Amla, Vatika, Almond Oil, Almond Shampoo, etc. Dabur offers brands like Dabur Amla and Vatika that are sold in foreign countries.
The company runs 20 modern production facilities all over the world. Eight of these 12 production facilities, including the seven factories at Sahibabad (Uttar Pradesh), Jammu Silvassa Alwar, Katni Narendrapur Pithampur, and Nasik, are located in India. Baddi (Himachal Pradesh) and Pantnagar (Uttaranchal) are the two major manufacturing centres in the country.
The company maintains offices in Dubai, Egypt, Nigeria, Bangladesh, the United States, London, and Nepal, in addition to other countries.
Three subsidiaries of Dabur are as follows:
- Research Foundation Dabur
- India Aviva
- H&B Stores Limited
- Dabur CSR Projects
The non-profit Dabur’s Sustainable Development Society (SUNDESH), which aims to provide aid in the areas of health care, education, and other socio-economic initiatives, was formed by Dr S.K. Burman. SUNDESH oversees Dabur’s corporate social responsibility (CSR) initiatives.
In order to provide farmers, villagers, and tribal communities with particular training programmes on sustainability and creating a greener environment, the brand has also partnered with numerous teams from NGOs across the nation.
Growth and Revenue Model for Dabur
30% of Dabur’s total revenue comes from outside of India. Dabur’s overall revenue for the fiscal year that ended on March 31, 2022, was Rs 8521.05 crores. The company’s net sales for the month of December 2021 came to Rs 2,941.75 crore, an increase of 7.8% over the previous month.
Over 34% in constant currency growth was seen in the brand’s international business, moving it up the growth curve. During the quarter, the MENA business expanded by almost 49%, Egypt’s business by 43%, Namaste’s business by more than 40%, and SAARC’s business by 41%.
Dabur – Publicity Campaigns and Social Media
Dabur Honey, a brand from Dabur India, started a campaign named “Shuddhata Sabke Liye” last year to raise awareness on the International Day of Persons with Disabilities.
To promote the concepts of inclusion, empowerment, and equal opportunity for all, Dabur proposed this video. It demonstrates how Dabur Honey improves a couple’s quality of life by enabling them to make every moment, despite challenges, memorable for one another. Dabur Honey has always been important in people’s lives because of its purity, whether they use it for sweetness, health, or celebration.
Because of actor and author Swanand Kirkire, who provided the voiceover for the video, the campaign was able to achieve remarkable heights.
Dabur – Competitors
Some of the top competitors of Dabur are:
- Hindustan Unilever Limited (HUL)
- Godrej Consumer
- Marico
- P&G
- Colgate
- Emami
- ITC
- Nestle
- Sheela Foam
- Gillette India
Dabur – Achievements and Awards
Here are a few well-known honours received by Dabur:
• The Economics Times listed Dabur as one of India’s 2017 Iconic Brands.
• CNBC has recognised Dabur as having the Best Risk Management Practice in the FMCG sector.
• The ZEE Media Family Business Legacy Award was given to Dabur.
• The Best Indian Brands ranked Dabur as a top brand (2016)
• Up the BT500 list of India’s Most Valuable Companies, Dabur came in at position 39. (2016)
Future Plans for Dabur
The business currently contributes 8.2% of the India FMCG business and has reported growth of over 100%.
According to Mohit Malhotra, the CEO of Dabur, “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, and we plan to further expand it by 33% to 80,000 villages over the next two years.”
Conclusion
Unquestionably, one of the most well-known international consumer products corporations is Dabur. Dr S.K. Burman founded it in Kolkata in 1884, and it is today well known in more than 120 nations, including those in the SAARC region. Dabur became publicly traded in 1986 under the name Dabur India Ltd.
Dabur is a well-known brand in the food and personal care industries and has many subsidiaries. 60% of Dabur’s revenue comes from its consumer products division, 11% from its food division, and the remaining 40% comes from its foreign division. Some important details regarding the Dabur corporation and its history are provided in the aforementioned article.
Edited by Prakriti Arora
