India: Dabur India Limited. Success Thru Innovation – A Case Study

Last Updated: 27 August 2004
Article by Vineet Goyal

The story of Dabur is more than a century old when it was established as a small pharmacy by Dr. S K Burman, in 1884, in Kolkata (erstwhile Calcutta). Since than, it is a story of success based on innovative ideas, dedication to nature, corporate and process hygiene, dynamic leadership and commitment to the partners and stakeholders.

Dabur established its first production unit at Garhia in 1896 and it was one of a very few Indian companies to start its own R&D unit in 1919. The company has gone a long way in popularizing and making easily available a whole range of products based on the traditional science of Ayurveda. In early 1900 itself, Dabur identified nature-based Ayurvedic medicines as its area of specialization. It is the first company to provide health care through scientifically tested and automated production of formulations based on the Indian traditional science. Subsequently, Dabur was incorporated as a Pvt. Ltd. Company – Dabur (Dr. S K Burman) Pvt. Ltd. In 1936.

There has not been any looking back for the giant from that time.

Seeing an immense potential to serve the Indian customer with low-cost high quality ayurvedic products for personal care, Dabur introduced the first packaged and branded hair oil – Dabur Amla Hair Oil in 1940, which eventually became the largest selling hair oil in the country. Today Personal care is the largest SBU contributing to 45% sales of Dabur and comprises of the following products -

  • Products related to Hair Care, Skin Care, Oral Care and Foods
  • 3 leading brands - Vatika, Amla Hair Oil and Lal Dant Manjan with Rs.100 crore turnover each
  • Vatika Hair Oil & Shampoo the high growth brand
  • Strategic positioning of Honey as food product, leading to market leadership (over 40%) in branded honey market 

However, healthcare remained to be the prime-focus for the company and it is the 2nd largest SBU with 28% share in sales

  • Products related to Health Supplements, Digestives, Baby Care and Natural Cures.
  • Leadership in Ayurvedic and herbal products market with highly popular brands.
  • Dabur Chyawanprash the largest selling Ayurvedic medicine with 65% (Rs.127 crore) market share.
  • Leader in herbal digestives with 90% market share, Hajmola tablets in command with 75% market share of digestive tablets category
  • Dabur Lal Tail tops baby massage oil market with 35% of total share

Innovation has been the key all along. Dabur Chyawanprash was the first packaged and branded Chyawanprash in India, when it was launched in 1949. Subsequent to the launch of Hajmola Tablets in 1978, when the market became competitive and the market-share of hajmola started dropping, the ayurvedic digestive formulation was converted into a children’s fun product with the launch of Hajmola Candy which became an instant hit. Dabur also introduced Lal Dant Manjan way back in 1970 which is a conveniently packaged herbal toothpowder made available at affordable costs to the rural masses.

In the Ayurvedic medicines segment, Dabur today has more than 250 products sold through prescriptions as well as over the counter

  • Major categories in traditional formulations include:

- Asav Arishtas

- Ras Rasayanas

- Churnas

- Medicated Oils

  • Proprietary Ayurvedic medicines developed by Dabur include:

- Nature Care Isabgol

- Madhuvaani

- Trifgol

The company shifted based to Delhi from Calcutta in 1972 and started commercial production at Sahibabad, the most modern herbal medicines plant at that time. With the technology at the helm in Dabur, by 1995, in addition to the existing products, the company exported products like an improved version of Chyawanprash – with more honey and less pungency, liquid form of Chyawanprash, an aqueous based hair-vitalizer , Melatonine etc – all in-house innovations.

Dabur captured the imagination of young Indian consumers in 1996, with the launch of Real Fruit Juices - a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to international standards, Real became the fastest growing and largest selling brand in the country. Subsequently, Dabur Foods also took the route of ethnic cooking pastes and chutneys to enter Indian kitchens – when Hommade was born.

The giant completed 100 years in the year 1984 and became a Public Co. Ltd. With the first maiden public issue in 1994. in 1998, Burman family - one of the most forward looking entrepreneurs at that time, handed over the management of the company to professionals – against one of the very first few Indian Businesses having done so. The result – Dabur established its market leadership status by staging a turnover of Rs. 1000 crores by the year 2000. Across a span of 100 years, Dabur had grown from a small beginning based on traditional health care to a commanding position amongst the august league of large corporate businesses.

However, there was no place for complacency at Dabur.

Dabur established its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation, which was set up as early as in 1978, developed an eco-friendly process to extract the drug from its plant source.

Three domestic pharma companies – Cadilla Pharmaceuticals, Shantha Biotech and Dabur India, signed an agreement with the department of biotechnology, Govt. of India, for developing and marketing basic molecules in leprosy, hepatitis and tumor disease segments.

With the setting up of Dabur Oncology's sterile cytotoxic facility in 2001, the Company gained entry into the highly specialised area of cancer therapy. The state-of-the-art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets.

As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvedic products company to get ISO 9002 certification. Reinforcing its commitment to nature and its conservation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated green houses in Nepal which help to produce saplings of rare medicinal plants that are under threat of extinction.

Dabur is also implementing IT in a big way, which shall help in integrating a vast distribution system spread all over the country and across the world and to cut costs and increase profitability.

In Dabur India Ltd. Knowledge and technology are key resources, which have helped the company to achieve higher levels of excellence and efficiency.

The story continues….

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions