DISTRIBUTION CHANNEL

OF
DABUR

Mrityunjay Sahni 389

Naman Mehendiratta 391
Sahil Mehta 406
Yamini Ecavade 418
OVERVIEW
● One of the oldest and the largest FMCG
Companies in India
● Dedicated towards the health and well-
being of every individual
● World's largest FMCG in Ayurveda and
Natural Healthcare
● Portfolio of over 250 Herbal/Ayurvedic
products
● Contains 5 flagship brands-DABUR;
HAJMOLA; REAL; FEM; VATIKA
● Huge overseas presence in over 120
countries
● Overseas revenue accounts for over 30%
of the total turnover
● Revenues of over Rs 7,680 CR and Market
Capitalisation of over Rs 48,800 CR
 KEY MILESTONES
● 1884- Established by Dr S K Burman in Kolkata
● 1994- Came out with first public issue
● 1998- Inducted professional management
● 2000- Crossed the INR 10 BN turnover mark
● 2005- Acquired Balsara
● 2008- Acquired FEM Pharma
● 2010- Acquired Hobi and Namaste
● 2012- Crossed the USD 1 BN turnover mark
● 2016- Foods business crossed INR 10 BN turnover mark
● 2018- Crossed market capital of USD 10 BN
 ACCOLADES

● The Iconic Brands of India 2017, by The Economics Times

● Best Risk Management Practice in the FMCG category, by CNBC TV18

● Dabur India CEO Mr Sunil Duggal named Best CEO in FMCG category for consecutive 2

years

● Ranked 39 in BT500 ranking of India's Most Valuable Companies 2016

KEY MANUFACTURING FACILITIES-DOMESTIC
Baddi, Himachal Pradesh Pantnagar, Uttaranchal Sahibabad,Uttar Pradesh

Jammu, J&K Silvasa, Dadra & Nagar

Tezpur,Assam
Haveli

Alwar, Rajasthan Katni,Madhya Pradesh Narendrapur,West Bengal

Pithampur,Madhya Pradesh Newai,Rajasthan Nasik, Maharashtra

KEY MANUFACTURING FACILITIES-INTERNATIONAL

UAE Nigeria

Egypt Sri Lanka

Turkey Bangladesh

Nepal South Africa

 BUSINESS STRUCTURE

DOMESTIC INTERNATIONAL
(72%) (28%)

DOMESTIC ORGANIC ACQUIRED

OTHERS (4%)
(FMCG) (67%) (33%)
 DISTRIBUTION NETWORK-URBAN
Factory

C&F

GT Stockist MT Stockist Insti Stockist

Wholesaler

Retailer Retailer

Consumer Consumer Consumer

DISTRIBUTION NETWORK-RURAL
Factory

C&F

Super Stockist

Sub Stockist

Retailer

Consumer
 DISTRIBUTION INITIATIVES
Focus on enhancing field efficiencies:

● Inducted around 1000 village salesmen on company rolls

● Increase the outlet coverage per SSM

Increasing direct reach:

● Near term target to increase direct reach to 1 mn outlets

Product focus:

● Rural Focused Product Mix

● Innovative launches in Urban

Capability enhancement through training and IT enablement

Focus on alternative channels- Increased role of Modern Trade, Cash & Carry and
ECommerce
MARGINAL DISTRIBUTION OF DABUR
Retailors 8-10%

Distributors 3-4%

Stockists 2-3%
 SUPPLY CHAIN MANAGEMENT
● Supply chain management starts before physical distribution

● It involves procuring the right inputs :

 Raw materials
 Components
 Capital equipment

● Converting them into finished products and dispatching them to the final
destinations.
 INVENTORY LEVELS
● Dabur’s inventory levels are at three times at which the market leader Hindustan
Unilever (HUL) operates.

● The inventory days are compressed by seven to eight days and the company
believes the inventory days may stay at these levels.

● Inventory at distributor is 18 days.

DISTRIBUTION STRATEGY IN THE MARKETING
STRATEGY OF DABUR

● In FMCG industry, distribution plays a critical role. So as to make the products

available to every nook and Corner Company has to choose the proper strategy.

● Dabur is making the products available in the grocery/ pops & mums, departmental
stores etc. through 3 tier distribution system.
 STRENGTHS OPPURTUNITIES
 Century Old Company And  Extend Vatika brand to new categories like
Established Brand Skin Care and body wash segments
 Core knowledge of Ayurveda as  Market Development


competitive advantage
Strong Brand Image
S 
Export Opportunities
Innovation
 Strong Distribution Network  Increasing income level of the middle class
 Extensive Supply Chain W  Creating additional consumption pattern
 R & D - a key Strength

WEAKNESSES
O THREATS
  New Entrants
Profitability is uneven across product line T
Seasonal Demand
  Other fields of medicine- Allopathic and
 Low Penetration Homeopathic
 Limited differentiation
MAJOR DISTRIBUTION PROJECTS
 PROJECT DOUBLE
● Launched in FY13
● Focused on the direct coverage and rural market penetration
● The direct village coverage increased from 14000 villages in FY13 To 44000
villages in FY15 and from that point it has reached to 60000 villages covered
by the last year.
 PROJECT CORE
The project was launched in FY14 .

The focus was to drive penetration of its Healthcare portfolio in urban chemist
outlets.

It intended to more than double its reach to 75k outlets.

During FY15, the direct reach in the channel rose from 1.72lakhs to 2.12 lakhs.
 PROJECT 50-50
The project was launched in FY15 .

It focused on 130 major cities of India which contributed to 50% of urban

consumption.

The project was involved segregation of grocery channels teams between

wholesale & retail and focused on marketing activities and distribution expansion.
 PROJECT BUNIYAD
https://www.thehindubusinessline.com/companies/dabur-india-gears-up-for-next-
growth-wave-with-buniyad-project/article9781727.ece
 CONCLUSION
Although Dabur Distribution system is a strength with reasonable margins .Dabur
is continuously initiating many projects and is trying to keep up with the ever
dynamic consumer oriented Industry.

Companies succeed when it's able to get itself to the consumers and for this
regular upgradation is must.
THANK YOU