Dabur India LMT - Chandana K

CHAPTER – 1
INTRODUCTION ABOUT THE ORGANISATION & INDUSTRY
INTRODUCTION TO INTERNSHIP
Internship is one of the important part of academic path of VTU MBA which is designed for the students to
acquire field experience along with an opportunity to share their insights and to explore relationship between
their field work and academic preparation. It also prepares students in developing and carrying major
research projects. Internship provide practical knowledge about what they are going to do after completion
of the MBA degree. With this intension I started my Internship at DABUR INDIA LIMITED which belongs
to the Fast Moving Consumer Goods (FMCG). My topic of study is Organizational study OF DABUR
INDIA LIMITED. I would like to extend my gratitude to DABUR INDIA LIMITED and each and every
person in the organization who allowed me to intern with them and also special thanks to my Internal Guide
of the Institution for helping me in gathering the data.
1.1 INTRODUCTION TO ORGANISATION STUDY
Organisation study refers to the study of organisation as a whole and getting adequate knowledge with
various departments in the organisation. An organisation is a social arrangement which pursues collective
goals, which controls its own performance, and which has a boundary separating it from its environment.
Organizational study involves careful study about how people inside the organization interact with one
another and how they can be made better to communicate their concerns. Various methods are used in
organizational studies and these include multiple regression, time series to name a few. Basically, it involves
the study of individual as well as group interaction inside an organization. There are many factors that come
into play when people interact with each other not just as individuals but as a team as well..
1.2 INTRODUCTION TO INDUSTRY – FMCG
Fast-Moving Consumer Goods are products that sell quickly at relatively low cost. These goods are also
called Consumer Packed Goods.
Fast Moving Consumer Goods is India’s fourth largest sector with household and personal care accounting
for 50 percent of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been
the key growth drivers for the sector.The urban segment (accounts for a revenue share of around 55 percent)
is the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last
few years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban
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Organisation Study, Dabur India Limited
and rural segments are growing at a rapid pace and FMCG products account for 50 percent of the total rural
spending. Consumer goods are products purchased for consumption by the average consumer. They are
divided into three different categories: durable, nondurable goods, and services. Durable goods have a shelf
life of three years or more while nondurable goods have a shelf life of less than one year. Fast-moving
consumer goods are the largest segment of consumer goods. They fall into the nondurable category, as they
are consumed immediately and have a short shelf life.
FMCGs have a short shelf life because of high consumer demand or because they are perishable. These
goods are purchased frequently, are consumed rapidly, are priced low, and are sold in large quantities. They
also have a high turnover when they're on the shelf at the store.
Fast-moving consumer goods have such a high turnover rate, the market is not only very large, it is also very
competitive. Some of the world's largest companies compete for market share in this industry including
Tyson Foods, Coca-Cola, Unilever, Procter & Gamble, Nestlé, PepsiCo, and Companies like these need to
focus their efforts on marketing fast-moving consumer goods to entice and attract consumers to buy their
products.
That's why packaging is a very important factor in the production process. The logistics and distribution
systems often require secondary and tertiary packaging to maximize efficiency. The unit pack or primary
package is critical for product protection and shelf life, and also provides information and sales incentives to
consumers.
FCMGs are sold in large quantities, so they are considered a reliable source of revenue. This high volume of
sales also offsets the low profit margin on individual sales as well.
FMCG sector is in transition and today’s business environment is in constant state of change. The Indian
FMCG market offers a level playing ground for both domestic as well as international players. A revival in
rural demand boost the top line growth of FMCG companies. A shift towards e-commerce and adoption of
digital technologies will continue to fuel the growth of FMCG market. A huge untapped opportunities an
low penetration highlights the scope of growth in this sector.
Dept of MBA, Don Bosco Institue of Technology.

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CHAPTER -2
ORGANISATION PROFILE
2.1 BACKGROUND
The founder of Dabur India Limited Dr.S.K. Burman, was a practicing allopathic doctor. At that time
Malaria, Cholera and Plague were the common diseases. He was a physician who brought Ayurvedic
medicines to the masses of Bengal. Initially established as a proprietary firm for the manufacture of
chemicals and Ayurvedic drugs it was later on 19th November 1930 incorporated as private limited
company, Late Shri C.L. Burman, son of late Dr S.K. Burman and his son late Shri P.C. Burman in the name
of Dr S.K. Burman Pvt.Ltd. to expand the operations by setting up production facilities at Garia and
Narendrapur, West Bengal and Daburgram, Bihar. Dabur (Dr.S.K. Burman) Pvt. Ltd. was merged with
Vidogum and Chemicals Ltd. i.e. 1st July1985 and the amalgamated company was renamed DABUR INDIA
LIMITED.
• 1884 - Established by Dr. S K Burman at Kolkata

• 1896 - First production unit established at Garhia
• 1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated
• 1972 - Shifts base to Delhi from Calcutta
• 1975 - The Company was incorporated on 16th September for manufacture of high grade edible &
industrial guargum powder and its sophisticated derivatives. It was incorporated in the name of
Vishal Chemical (India) Ltd.
• 1978 - Launches Hajmola tablet Dabur continues to make innovative products based on traditional
formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a
digestive aid is branded and launched as the popular Hajmola tablet.

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• 1988 - Launches pharmaceutical medicines

• 1989 - Care with fun The Ayurvedic digestive formulation is converted into a children's fun product
with the launch of Hajmola Candy
• 1992 - A new range of coconut oil under the brand name `Anmol' was launched.
• 1994 - New products launched were `Dentacare,' Vatika and Lactonic which were well received in
the market.
• 2000 - The Company has taken Nestle SA to the Company Law Board (CLB) charging the latter with
"arm-twisting" it as a majority shareholder in their biscuit manufacturing joint venture.
• 2003 -The Fourth Largest FMCG, Dabur India Ltd has tied with Free Markets Inc. for using leading
edge technologies to execute online markets for its procurement needs.
• 2007 –Dabur Foods mergers with Dabur India.
• 2013 -Dabur Is First Company to Be Listed On MCX-SX
• 2016 -Dabur Unveils New Premium Natural Baby Care Brand .
• 2020- Today, Dabur India's products are available in more than 60 countries and span categories
including hair care, skin care, health care and food. About 68% of its shares are held by the Burman
family, which lets employees run the show. The company has subsidiaries in countries such as the
U.K, Nepal, Egypt and Turkey; international sales make up 30% of the consolidated total.
2.2 NATURE OF BUSINESS
Dabur India Limited is a leading Indian Fast Moving Consumer Goods company with interests in Hair Care,
Oral Care, Health Care, Skin Care, Home Care and Foods. From its humble beginnings in the by lanes of
Calcutta way back in 1884 as an Ayurvedic medicines company. Dabur India is a Public Limited Company.
Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India.
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For the past 125 years, they have been dedicated to providing nature-based solutions for a healthy and
holistic lifestyle. Through their comprehensive range of products, they cater to all consumers, in all age
groups, across all social boundaries. And this legacy has helped them develop a bond of trust with the
customer.
Dabur India Ltd. is one of India’s leading FMCG Companies with revenues of over Rs 6586.70 crore in
FY2020. Building on a legacy of quality and experience of over 132 years, Dabur is today India’s most
trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India is also a
world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG portfolio
today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural
healthcare products, Vatika for premium personal care, Hajmola for digestives, Real for fruit juices and
beverages and Fem for fairness bleaches and skin care products. Dabur today operates in key consumer
product categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods. The ayurvedic
company has a wide distribution network, covering 6 million retail outlets with a high penetration in both
urban and rural markets.
2.3 VISION , MISSION AND QUALITY POLICY
VISION
Dabur's vision is to satisfy the health and well-being of all its customers. Dabur would achieve its vision by
offering high quality natural products that will improve the customer's health and personal care.

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MISSION
Dabur’s mission ‘maximizing shareholders value, by offering superior quality nature based products,
improving consumer life in personal care, health care and food
QUALITY POLICY
• Fostering a quality mindset with the objective of supplying high quality products and services
consistently that are trusted and preferred by all our customer and consumer.
• Constantly striving to understand and meet the ever-growing needs of customers and consumers.
• Applying innovation practices and state of the art technology to enhance productivity and quality at
competitive prices.
• Empowering our people to maintain a vibrant quality environment through education, training,
coaching and effective communication.
• Committing to continuous improvement, which is measured, evaluated and validated for

effectiveness through internal and external audits.

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• Communicating Dabur’s quality requirement to suppliers, and all other relevant services providers.
• Complying with all applicable national and international regulations and legislation.
• Periodic review of the quality to ensure continuous improvement in quality management system.
• Dabur endeavour is to create a culture of total quality, where continuous improvement of people,
processes and products becomes a way of life.
2.4 WORKFLOW MODEL
• A workflow model is the sequential series of tasks and decisions that make up a business
process. Designing a workflow model lets business users see how a process works and helps them
streamline and optimize it for best results and high efficiency. Dabur tackles the supply chain.
2.5 PRODUCT / SERVICE PROFILE
• FMCG portfolio includes five flagship brands with distinct brand identities. Dabur as the master
brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives.
Real for fruit-based.

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PRODUCTS
• Dabur Lal Tail

• Dabur Red
• Vatika Hair Oil
• Dabur Amla
• Dabur Chyawanprash
• Dabur Glucose D
• Hajmola Mast Masala
• Hajmola
• Real Fruit Juice
• Dabur Honey
• Dabur Balm
DABUR’S COMPETITOR PROFILE
➢ MARICO: Marico is seen as one of Dabur's biggest rivals. Marico was founded in 1990 in
Mumbai, Maharashtra. Marico operates in the Personal Services industry. Marico generates
$208.7M less revenue than Dabur.
➢ PATANJALI: Patanjali Ayurved is one of Dabur's top competitors. Patanjali Ayurved was
founded in 2006, and its headquarters is in Haridwar, Uttaranchal. Patanjali Ayurved operates
in the Consumer Goods industry. Patanjali Ayurved has 192,260 more employees than Dabur.

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➢ PARLE AGRO: Parle Agro is one of Dabur's top rivals. Parle Agro was founded in 1959,
and is headquartered in Mumbai, Maharashtra. Parle Agro is in the Non-Alcoholic Beverages
field. Parle Agro generates $1.1B less revenue vs. Dabur.
2.6 OWNERSHIP PATTERN
Ownership Pattern reveals the distribution pattern of the company equity shares to the public and promoters.
Ownership Pattern is the infrastructure of the equity distribution among bodies like Promoters, Banks,
Financial institutes, Foreign promoters, Foreign Institutions, Mutual Funds, UTI and finally General Public.
The Ownership pattern also plays an important role in fixing and movement of the Share Price.
The company divided its Ownership pattern into two categories:
• PROMOTERS - Promoters are basically the founder of the company and the initial investor of the
company. The maximum shareholding is with the promoters as well as the management Control.
• PUBLIC - Which includes FII, Promoters, Banks, Insurance Companies, Financial institutes,
Mutual Funds, UTI and finally General Public.

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2.7 AWARDS AND ACHIEVEMENTS
• Dabur bags the prestigious brands award, ranked amongst the Top 50 Most Valuable Indian Brands
2016..
• Dabur India Ltd ranked 26 in the list of Best Indian Brand for 2016.
• Dabur ranked 7th Most Respected Company in the Fast Moving Consumer Goods.
• Dabur ranked among Top 10 Best Companies to Work for in the Consumer Goods and Durable
sector
• The Burman family, promoters of Dabur, ranked 20th in Forbes ‘The 100 Richest Indians’ list
• Dabur was awarded 18th ICSI National Award for Excellence in Corporate Governance: Best
Governed Companies.
• Dabur India Ltd has bagged PHDCCI Award for Outstanding Contribution to Social Welfare for
its community development initiatives

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• Dabur wins Assocham FMCG 2017 Award
• Dabur was ranked 37 in Responsible Business Rankings 2018 - India’s Top Companies for
Sustainability and CSR.
• Dabur was awarded the SABERA Responsible Business Award for its community development
initiatives in the field of Hygiene and Sanitation.
• Dabur wins ICSI National Awards for Excellence in Corporate Governance

• Dabur Red Paste and Hajmola were amongst the country’s Top 100 Most Trusted Brands 2018 list,
released by The Economic Times Brand Equity
2.8 FUTURE GROWTH AND PROSPECTS
FUTURE PLANS
Dabur Plans to Focus On Gaining Market Share Over Margins in Short Term. Fast moving consumer goods
major Dabur India Ltd. may have to take a hit on its operating profit margins in the short term as it plans to

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gain market share, amid the industry facing inflationary pressure.Dabur India will also consider stepping up
innovation and renovation as a part of its strategy. Analysts say the company aspires to make its brands more
relevant for millennials. After underperforming the Nifty 200 index in the initial months of FY20.
EXPANSION STRATEGIES
Dabur aims to expand its presence in its key overseas markets by investing strongly behind its brands,
distribution and manufacturing capabilities. It analyzes the organic and inorganic growth paths adopted
by Dabur and its strategy to invest in multiple brands for achieving growth.
INTRODUCTION OF NEW PRODUCT
As the country grapples with the Covid-19 pandemic, FMCG major Dabur India has decided to launch a
slew of Ayurveda-backed preventive healthcare and personal hygiene products, much ahead of their planned
launch schedules. This is among the key measures the Ayurvedic and natural health care company has
taken, in a bid to meet the growing need for immunity-boosting products.
Prior to the Covid-19 spread Dabur had prepared a launch strategy for products. Given the spread of the
disease, we have decided to pull forward launch plans to meet the needs of our consumers across the
country.”

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CHAPTER-3
MCKENSY’S 7S FRAMEWORK AND PORTERS FIVE
FORCES MODEL
3.1 MCKENSY’S 7S FRAMEWORK

The 7-s model is a tool for managerial analysis and action that provides structure with which to consider a
company as a whole, so that the organization problem may be solved and a strategy may be developed and
implemented. The 7-s is a frame for analysing organization and effectiveness. It looks at the seven key
elements that make the organizations and their effectiveness.
HARD VARIABLES:
• Strategy: Plan leading to allocation ofresources.
• Structure: Organization reporting lines, geography,etc.
• Systems: Formal and informal processesused.

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SOFT VARIABLES:
• Staff: Demographics ofpersonnel.
• Style: Behaviour of managers when interacting withothers.
• Skills: Core competencies of thefirm.
• Shared Value: Culture, which is actually the core element to itall.
HARD ELEMENTS: Comprises of 3 elements

1. STRATEGY
Strategies are the actions a company plans in response to or anticipations of changes in its external
environment. It also includes purpose, missions and objectives, goals and major action plans and policies.
• To operate at a level of profitability, this will ensure the –long term economic viability of the
companies favorably with other industries of similar capital intensity and risk which will enable the
company to attract adequate to support its growth.
• To strive to satisfy customer by integrating their needs into the company products and services with
efficiency and professionalism and give the best value to them by promoting qualityproducts.
• To improve the process managing the company affairs through proper planning, timely
implementation of plans and regular performance reviews.
• Low pricing strategy.
• New innovative products.
• Advertising Campaign.
2. SYSTEM
System in 7’S refers to all the rules, regulations and procedures both formal and informal that complement
the organisation structure. It involves various department functions like:
• Production
• Planning and control
• Cost accounting procedures
• Capital budgeting systems
• Recruitment, training and development systems
• Performance evaluation system
• Operational and Marketing System
• Inventory Control System

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Rules and regulations
• Prohibition of alcohol consumption in work place
• Prohibition of tobacco products
• Cell phone usages are banned
• All electronic gadgets are not allowed in the organization
Office timings: Employees of company reports to their work as per the company’s prescribed timings i.e.,
9AM to 6.00 PM. And the Lunch break for the employees is divided into two batches i.e., 1.00 PM to 1.30
PM and 1.30 PM to 2.00 PM.
Quick service: The employees of the company set a benchmark of addressing the issues during the working
hours.
3. STRUCTURE
The organisation structure of the company is based on the functional departments and the decision taken
from top level management of the company. For analysis and taking decisions the top management will
consult the functional managers, performance of the various departments will be assigned by the functional
head.
An Organization chart, which shows the reporting structure and divisions of tasks for successful integration.
Dabur company has a line and staff organisation structure the staff personally specialists in their fields
advice line managers to perform their duties. Staff personnel have right to recommend, but have no
authority.

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STRUCTURE OF THE ORGANISATION
CEO
General Manager
Production Marketing Sales HR

Manager Manager Manager Manager
Area Sales Area Sales Area Sales

Manager 1 Manager 2 Manager 3
Sales Team Sales Team Sales Team
SOFT ELEMENTS: Comprises of 4 elements
1.STYLE
Means that company’s employee share a common way of behaving and thing style is more important
elements for success. As behavior speaks of what an organization up to. The style of an organization,
according to McKinsey framework refers to the“Reporting Relationship” between the superiors and the
subordinates.
It also conveys the flow of communication between the organisation personality will differ from person to
person. It depends upon their task, time and the situation. Hence the leadership style is not rigid for the

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whole organisation, each of them will carry their own style while dealing with employees. The leadership
style includes autocratic, Bureaucratic, and democratic, finally we can call the style is dependent on the
person’s personality between them.
The style of leadership adopted by the company facilitates DEMOCRATIC leadership style where they
dependent on measurement and outcomes. The effectiveness of a group is directly related to the efficiency of
its process. In important matters, meetings are held to take opinions of top management and various
department managers and the decisions are taken and implemented. It offers the most inspiring workplace
with best technology and people.
2. STAFF
Relates to process of hiring, developing managers so that they contribute to the success of organization.
Staffing is the process of acquiring human resources for the organization and assuring that they have the
potential to contribute to the achievements of the organizations goals. It includes selections, placements,
training and development of appropriate qualified employees.
All the people employed by a particular organisation is said to be staff.
TOP LEVEL=10
MEDIUM LEVEL=83
LOWER LEVEL-258
Three levels of management are found in the organisational hierarchy; they are top level, middle level and
lower level of management. Each level has a different set of jobs and responsibilities but all are fulfilling a
goal.
• Top-level managers are responsible for setting goals, creating plans and supervise the entire
organisation. The job of managers is practically the same, but there is a difference in a manager’s
role depending on skills, ability, strength, experience, intellectual ability etc. Top management don’t

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• direct the day-to-day activities of the firm. Top management are ultimately responsible for the
performance of the organisation.
• Middle-level management are engaged in diverting organisational activities to attain the goals set y
top management. They assist the first line managers to achieve business organisations. They
communicate upward, by offering suggestions and feedback to top managers.
• Lower level includes the job title such has office manager, shift supervisor, department manager,
foreperson, store manager. They focus on controlling and directing in the organisation.
3. SKILLS
Are the abilities that firm’s employees perform very well? They also include capabilities and competences.
During organization change, the question often arises of what skills the company will really need to
reinforce its new strategy or new structure. Few specialized skills and the rest jobs are undertaken by the
management. The employees of Dabur have different skill related to their work. The skills of employees
have developed over a periodof time. They try to meet the upcoming business challenges.
• Marketing skills
• Communication skills
Skill refers to the fact that employees have the skill needed to carry out the Company’s Strategy.
• Training and development ensuring people know how to do their jobs and stay up to the date with
the latest technologies.
• The company ensures technical skills for production and manufacturing division.
• It requires strong management skills in marketing and HR division.
• Marketing executives must have good communication skills and better knowledge of the company
and its products.
4. SHARED VALUES
Superordinate goals, when the model was first developed, these are the core values of the company that are
evidenced in the corporate culture and the general work ethic.
The company has a good value like they are free to communicate with their colleagues while working.
Women’s work more in the company and if they have any emergency they are free to leave without taking
higher authority permission.

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Dabur is guided by shared values that both the employees as individuals and the Company will live by; the
values being:
• LEADERSHIP: The courage to shape a better future

• PASSION:Be real
• ACCOUNTABILITY:If it is to be, it’s up to me
• COLLABORATION: Leverage collective genius
• INNOVATION:Seek, imagine, create, delight
• QUALITY: What we do, we do well
• TEAM WORK:Unite for greater strength and work collectively as a group towards the
achievements of common goals.
• CUSTOMER SATISFACTION: They strive to understand the customer needs and to deliver
products and services that fulfil and exceed all their requirements.
• COMMITMENT TO TOTAL QUALITY: The company is committed to continuous
improvements of all the activities. They will supply the products and services that confirm to higher
standards.
• COST AND TIME CONSCIOUSNESS: The Company believes that their success depends on the
ability in developing the new varieties and shorten the delivery period of their products and services.
3.2 PORTERS FIVE FORCE MODEL

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Porter’s five force model is a model that identifies and analyse five competitive forces that shape every
industry, and helps determine an industry’s weaknesses and strengths. The Model is named after Michael E.
Porter.
The porter’s five forces tool a simple but powerful tool for understanding here power lies in a business
situation. This is useful, because it helps you understand the strength of your current competitive position
and the strength of a position you are considering moving into.
Conventionally, the tool is used to identify whether new products, services or businesses have the potential
to be profitable. However, it can be very illuminating hen to understand the balance of power in other
situations.
• THREAT OF NEW ENTRIES(LOW) - As Dabur is ruling the market since many years with a
strong customer centric approach. Our market is as such open without any barriers there are more
chances of new products and companies getting entered in the market.
• COMPETITIVE RIVALRY(HIGH) – It play a major role in due to other brands like nestle,
mother dairy, who have established themselves with a strong brand power in the market which are
also the local players gives a tough competition to Dabur in a proper competitive way.
• POWER OF BARGAINING SUPPLIES(LOW)– The bargaining of suppliers is very low who
belongs to the rural side who are weaker in adapting the product bargaining power and different
strategies used.
• BARGAINING POWER OF CUSTOMERS(HIGH) – As in open market customers has their
own desire and own willingness to purchase a product of a particular product and brand. Dabur also
have there on competitors ruling customers mind due to their key importance.
• THREAT OF SUBSTITUTION(MEDIUM)– Availability of other products as substitutes causes a
threat to the existing products there in the market.

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CHAPTER -4
SWOT ANALYSIS
SWOT Analysis Framework
SWOT Analysis is a framework used to evaluate a company‟s competitive position and to develop strategic planning.
It assesses internal and external factors, as well as current and future potential.
A SWOT analysis can be carried out for a company, product, place, industry, or person. It involves specifying the
objective of the business venture or project and identifying the internal and external factors that are favorable and
unfavorable to achieve that objective.
Internal Factors
• Strength
• Weakness
External Factors
• Opportunities
• Threats

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Strengths
• A large number of variants: The fruit juice is available in two variants namely the Real and the
Real Activ Juice. Both the drinks are there in 16 flavors like Mango, Mosambi, Guava, Plum &
Litchi, Pomegranate, Tomato, Cranberry, Peach, Blackcurrant, Apricot, Orange, Pineapple, Apple
and mixed fruits.
• Real Fruit: The unique selling proposition of the juice is that there are no additives and that it is
made from real fruit which is then mixed with an equal quantity of water. In Real Activ, there are no
added sugars or flavors and no preservatives or additives of any sort.
• Endorsements and certifications: Dabur Real Juices are endorsed by PFNDAI — Protein Foods &
Nutrition Development Association of India.for the nutritional content them. The juice is also the
Reader’s Digest Trusted Brand Gold Award 2009 in the food & beverages category.
• A composition of the juices: The juices have no artificial flavors and are completely rich in vitamins
and antioxidants. The Real Active which has no added sugars is also rich in fiber and can be
consumed even by diabetic patients.
• Dabur India is the fourth largest company in FMCG segment with a revenue of US$ 910 Millions
• Dabur has its own heritage, it is more than 100 years old , established in the year 1884
• It has presence in around 60 countries across the world
• It is the world’s largest ayurvedic medicine provider
Weaknesses
• Image: Dabur has always been associated with pharmaceutical and medical industry and thus they
found it difficult to take up the image of a company that sells fruit juice in comparison to their
competitors like Tropicana or Coca-Cola who had established the presence in the juices market.
• Indian habits: Quite unlike the Western world where fruit juice is consumed during breakfast the
Indian habits are different. Here fruit juice is something that is offered to guests or which is
consumed occasionally. This reduced the frequency of purchase.
• Expensive: In comparison to aerated drinks like Pepsi or Coca-Cola, Real Fruit Juice is expensive
and thus may not be preferred by all customers. Yet another issue here is that such drinks are not
perceived as value for money options.
• Acquired Taste: Dabur Real Juices do not have the fresh taste of juice and is alleged to have a
medicinal flavor to it. Customers may need to get used to the taste of the juice to start liking the
flavor making it an acquired taste.
• Dabur doesn’t have direct company outlets
• Lack of awareness of products by customers

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Opportunities
• High market potential for packaged drinks in India: The market size of the packaged drinks
market is roughly around 100 crores INR and it is expected to grow at around 18 percent per
annum. This is a huge opportunity for an Indian company like Dabur.
• Favourable environment in India: With the government supporting “Make in India” domestic
companies have a lot to gain in terms of government support. Moreover, there are a lot of
concessions granted to the food processing sector.
• Dabur is the world’s largest ayurvedic medicine and its export quantities are constantly
in demand in foreign market
Threats
• Low barriers to entry: There are low or no barriers to entry in the fruit drinks sector and
competition comes in all shapes and forms. Even small to medium-sized businesses set up local
production units that make fruit juices.
• Competition: Some of the major competitors of Dabur Real are Minute Maid, Onjus, Coca-Cola,
Pepsi, Mirinda, Slice, Maaza, Frooti, and Tropicana.
• The allopathy players are of major threat as they invest heavily on advertising and distribution of
their products through medical representatives etc

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CHAPTER-5
ANALYSIS OF FINANCIAL STATEMENTS
5.1 Introduction:
Ratio analysis is an important an powerful technique or method, generally, used for analysis of financial
statements. Ratios are used as a yardstick for evaluating the financial condition and performance of a firm.
Analysis and interpretation of various accounting ratios gives a better understanding of financial condition
and performance of the firm in a better manner than the perusal of financial statements.
Uses of ratio analysis:
• Ratio analysis simplifies the understanding of financial statements.

• It is helpful for the management for decision making, formulating of polices and performance
appraisal.
• •.Ratio analysis facilities inter-firm comparison.
• It is a valuable of the management in the efficient discharge of its basic function of forecasting and
planning.
5.2 Types of ratios:
• Current ratio
• Net Profit Ratio
• Debt equity ratio
• Quick Ratio
• Working Capital Turover Ratio
• Gross Profit Ratio

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A) CURRENT RATIO:
Current Ratio = Current Assets/Current Liabilities
5.2.1A TABLE SHOWING CURRENT RATIO
Current Assets Current Liabilities

Year (in crores) (in crores) Current Ratio
2016 1,952.45 1,473.73 1.32
2017 1,785.61 1,208.99 1.47
2018 1,958.84 1,234.48 1.58
2019 2,124.35 1,518.27 1.39
2020 3,265.19 1,441.85 2.26
Analysis:
The analysis shows the current ratio for the period of 2016 to 2020. The typical current ratio is 2:1. In this
company, the current ratio is fluctuating from the past five years. In 2016 the ratio was 1.32 then it further
increased to 1.47 in 2017 , increased to 1.58 in 2018, again increased to 1.39 in 2019, kept on increasing till
2020 to 2.26.
3,500.00
3,000.00
2,500.00
2,000.00
Current Assets
1,500.00 Current Liabilities
1,000.00
500.00
0.00
2016 2017 2018 2019 2020

26
5.2.2B GRAPH SHOWING CURRENT RATIO
Current Ratio
2.5
1.5
Current Ratio
1
0.5
0
2016 2017 2018 2019 2020
Interpretation:
The ideal ratio for any concern is 2:1. The current ratio of the concern for the previous 5 years has been increasing
from 2016-2020. In 2020 the current ratio is very high compared to previous four years.A very high current ratio of a
company is also not required because it indicates inactivity of funds which is not a sign of competent financial ratio.
B) NET PROFIT RATIO
NP Ratio = Net Profit * 100
Net Sales
5.2.2A TABLE SHOWING NET PROFIT RATIO:
Net profit Net Sales

Year (in crores) (in crores) Net Profit Ratio
2016 939.51 5,739.70 16.36
2017 998.33 5,278.65 18.91
2018 1,072.05 5,535.49 19.36
2019 1,264.29 6,189.54 20.42
2020 1,170.35 6,241.09 18.752

27
Analysis:
The analysis shows the net profit ratio for a period of five years i.e. 2016 to 2020. In the year 2016, the ratio was
16.36%, and later in 2019 increased to 20.42%,. It finally reached to 18.75 in 2020.
Net Profit Ratio

25
20
15
Net Profit Ratio

10
0
2016 2017 2018 2019 2020
5.2.2B GRAPH SHOWING NET PROFIT RATIO
Net Profit Ratio

2020
2019
2018
Net Profit Ratio
2017
2016
0 5 10 15 20 25
Interpretation:
The ratio indicates the net profit margin of the year 2015 to 2017 where the ratio has declined in the past
years. If the company has low net turnover brim, they can gross great ratio of arrival on investments if it has
advanced account turnover.

28
C) DEBT – EQUITY RATIO:
Debt – Equity = Long Term Debts
Shareholder’s Equity
5.2.3A TABLE SHOWING DEBT – EQUITY RATIO
Long Term Debts Shareholders Equity

Year (in crores) (in crores) Debt Equity Ratio
2016 0 175.91 0
2017 200.64 176.15 1.13
2018 201.04 176.15 1.14
2019 26.05 176.63 0.14
2020 24.68 176.71 0.13
Analysis:
The above analysis shows the debt – equity ratio for the period of five years i.e., 2016 to 2020. In the year
2016, the debt – equity ratio was zero. In 2017 the ratio increased drastically to 1.13. Then in 2018 the debt
equity ratio cme to 1.14. Later in 2019, the ratio decreased to 0.14. Later in 2020, the ratio stood to 0.13.

29
5.2.3B GRAPH SHOWING DEBT – EQUITY RATIO
Debt Equity Ratio

1.2
0.8
0.6
Debt Equity Ratio
0.4
0.2
0
2016 2017 2018 2019 2020
Debt Equity Ratio

1.2
0.8
0.6 Debt Equity Ratio
0.4
0.2
0
2016 2017 2018 2019 2020
Interpretation:
The ideal ratio of debt equity is 2:1. Initially there was no long term debts in 2016. In 2017 the ratio became
1.13. In later years it saw decrease in ratio of debt equty. And then a drastic decrease happened.
A more financially stable company usually has lower debt to equity ratio. Lower debt equity atio is better for
a company.

30
D) QUICK RATIO/ACID TEST RATIO
Quick Ratio/Liquid Ratio = CurrentAssets
Current Liabilities
5.2.4A TABLE SHOWING QUICK RATIO
Current Assets Current Liabilities

Year (in crores) (in crores) Quick Ratio
2016 1,336.89 1,473.73 0.90
2017 1,186.34 1,208.99 0.98
2018 1,254.05 1,234.48 1.01
2019 1,391.45 1,518.27 0.91
2020 2,456.05 1,441.85 1.70
Analysis
The above table shows the quick ratio for the period of five years. i.e 2016 to 2020. In the year 2016 the
quick ratio was 0.90. It saw an increase in ratio later. Then in 2019 quick ratio decreased to 0.91. Later in
2020 the quick ratio raised to 1.70 directly.

31
5.2.4B GRAPH SHOWING QUICK RATIO
Quick Ratio
1.8
1.6
1.4
1.2
1
Quick Ratio
0.8
0.6
0.4
0.2
0
2016 2017 2018 2019 2020
Interpretation
The ideal quick ratio is1:1. In 2016 the ratio was nearly to 1. Later years saw an increase in quick ratio
which is a good sign, The higher the quick ratio, the greater the greater possibility to meet the current
obligations. Quick ratio of 1 or above 1 is good for the company.

32
E) Working Capital Turnover Ratio
Net Working Capital= Total Current Assets – Total Current Liabilities
Working Capital Turnover Ratio =Net sales/ Net Working Capital
Calculaion of Net Working Capital
YEAR 2020 2019 2018 2017 2016
TOTAL CURRENT ASSETS 3,265.19 2,124.35 1,958.84 1,785.61 1,952.45

TOTAL CURRENT
LIABILITIES 1,441.85 1,518.27 1,234.48 1,208.99 1,473.73
Net Working Capital 1,823.34 606.08 724.36 576.62 478.72
5.2.5A TABLE SHOWING WORKING CAPITAL TURNOVER RATIO
Net Sales Net Working Capital Working Capital

Year (in crores) (in crores) Turnover Ratio
2016 5,739.70 478.72 11.98
2017 5,278.65 576.62 9.15
2018 5,535.49 724.36 7.641
2019 6,189.54 606.08 10.21
2020 6,241.09 1,823.34 3.42
Analysis
The above table shows the working capital turnover ratio for five years i.e 2016 to 2020. In 2016 the
working capital turnover ratio was 11.98. In the coming years the ratio went down. In 2019 the ratio again
raised to an extent. Again in 2020 the working capital turnover ratio decreased to 3.42.

33
5.2.5B GRAPH SHOWING WORKING CAPITAL TURNOVER RATIO
Working Capital Turnover Ratio
2020
2019
2018 Working Capital Turnover Ratio
2017
2016
0 2 4 6 8 10 12
Interpretation
The ideal Working Capital turnover ratio is anything like 2 and above. Initailly the ratio was very high
compared to other years here. Later it went down and maintained a good position .Generally a high working
capital turnover is better. The working capital turnover ratio should be carefully interpreted because a very
high ratio may also be a insufficient quantity of working capital in the business.

34
F) GROSS PROFIT RATIO
Gross Profit Ratio = Gross Profit * 100

Net Sales
5.2.6A TABLE SHOWING GROSS PROFIT RATIO
Gross Profit Net Sales

Year (in crores) (in crores) Gross Profit Ratio
2016 1,212.74 5,739.70 21.12
2017 1,294.35 5,278.65 24.52
2018 1,387.67 5,535.49 25.06
2019 1,503.35 6,189.54 24.28
2020 1,508.47 6,241.09 24.16
Analysis
The above table shows the Gross Profit ratio for five years i.e 2016 to 2020. In 2016 the GP ratio was 21.12.
In 2017 GP ratio raised to 24.52. Later in 2018 ratio came to 25. And in 2020 the Gross Profit ratio stood to
24.16.
5.2.6B GRAPH SHOWING GROSS PROFIT RATIO
Gross Profit Ratio
2020 2016
20% 18%
2017
2019 21%
20%
2018
21%

35
Gross Profit Ratio

2020
2019
2018
Gross Profit Ratio
2017
2016
18 20 22 24 26
Interpretation
The ideal ratio for Gross Profit is 20 i.e 20% . In the initial years the GP ratio was good itself but later it
went up as better. A higher gross profit margin indicates that a company can make a reasonable profit on
sales, as long as it keeps overhead cost in control.
The above are the ratios calculated and represented on graph with respect to Dabur India company. The
ratios calculated and represented are as follows
1) Current Ratio
2) Net Profit Ratio
3) Debt Equity Ratio
4) Quick Ratio
5) Working Capital Turnover Ratio
6) Gross Profit Ratio

36
CHAPTER: 6
LEARNING EXPERIENCE
. It was a valuable experience to study about the reputed organization like DABUR INDIA LIMITD.
Through our experience here we have come to know what it is actually like to work in a large, established
industry such as DABUR INDIA LIMITD. We were given complete guidance to polish and enhance our
skill sets. The company has implemented well designed performance management system.
This project enables me to study and understand the organization and due to this, I have opportunity to know
more about the organization and its function
Following are my experience to my best of my knowledge.
• This study has helped me in applying my skills, abilities, knowledge and learning gained through my
academics and in practically applying it within the organization.
• This study has given me the wider knowledge of the activities conducted in the organization.
• Understand how information is used in organization for decision making
• It gave me an opportunity to experience the application of the strategies in the organization.
• To analyze and understand how the key business processes and carried out in an organization.

37
BIBILOGRAPHY
http://www.dabur.com
http://www.moneycontrol.com

38
6.3 ANNEXURE
STANDALONE PROFIT & LOSS ACCOUNT OF DABUR INDIA (in Rs. Cr.)
PARTICULARS Mar Mar Mar Mar Mar

2020 2019 2018 2017 2016
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS [GROSS] 6,241.09 6,189.54 5,552.26 5,357.84 5,822.23
Less: Excise/Sevice Tax/Other Levies 0 0 16.77 79.19 82.53
REVENUE FROM OPERATIONS [NET] 6,241.09 6,189.54 5,535.49 5,278.65 5,739.70
TOTAL OPERATING REVENUES 6,309.80 6,273.19 5,592.29 5,290.65 5,750.00
Other Income 276.9 274.74 283.23 274.64 196.64
TOTAL REVENUE 6,586.70 6,547.93 5,875.52 5,565.29 5,946.64
EXPENSES
Cost Of Materials Consumed 2,449.37 2,262.51 2,060.26 1,843.18 1,847.75
Operating And Direct Expenses 0 0 0 0 0
Changes In Inventories Of FG,WIP And Stock- -69.89 10.09 -74.03 -8.19 -23.77
In Trade
Employee Benefit Expenses 578.26 572.33 461.13 425.3 431.77
Finance Costs 19.27 29.8 21.89 16.23 9.83
Depreciation And Amortisation Expenses 129.93 108.83 102.5 75.43 72.82
Other Expenses 1,106.07 1,076.11 999.64 974.39 1,407.36
TOTAL EXPENSES 5,078.23 5,044.58 4,487.85 4,270.94 4,733.90
PROFIT/LOSS BEFORE EXCEPTIONAL, 1,508.47 1,503.35 1,387.67 1,294.35 1,212.74

EXTRAORDINARY ITEMS AND TAX
Exceptional Items -100 0 -14.54 0 0
PROFIT/LOSS BEFORE TAX 1,408.47 1,503.35 1,373.13 1,294.35 1,212.74
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 425.4 369.28 340.33 310.83 259.11
Less: MAT Credit Entitlement 0 0 0 0 0
Deferred Tax -187.28 -130.22 -39.25 -14.81 14.12
Tax For Earlier Years 0 0 0 0 0
TOTAL TAX EXPENSES 238.12 239.06 301.08 296.02 273.23
PROFIT/LOSS AFTER TAX AND BEFORE 1,170.35 1,264.29 1,072.05 998.33 939.51
EXTRAORDINARY ITEMS
PROFIT/LOSS FROM CONTINUING 1,170.35 1,264.29 1,072.05 998.33 939.51
OPERATIONS
PROFIT/LOSS FOR THE PERIOD 1,170.35 1,264.29 1,072.05 998.33 939.51
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 6.62 7.16 6.09 5.67 5.34
Diluted EPS (Rs.) 6.6 7.13 6.06 5.64 5.31
VALUE OF IMPORTED AND INDIGENIOUS
RAW MATERIALS STORES, SPARES AND
LOOSE TOOLS
Imported Raw Materials 0 0 0 0 40.12
Indigenous Raw Materials 0 0 0 0 1,158.42
39
STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 0 0 0 0 0.05
Indigenous Stores And Spares 0 0 0 0 16.75
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 617.78 1,597.01 477.03 396.34 395.79
Tax On Dividend 0 0 0 80.69 80.57

40
STANDALONE BALANCE SHEET OF DABUR INDIA (in Rs. Cr.)
PARTICULARS Mar 2020 Mar 2019 Mar 2018 Mar2017 Mar 2016
12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 176.71 176.63 176.15 176.15 175.91
TOTAL SHARE CAPITAL 176.71 176.63 176.15 176.15 175.91
Reserves and Surplus 4,304.25 3,717.20 4,050.71 3,481.73 2,695.87
TOTAL RESERVES AND 4,304.25 3,717.20 4,050.71 3,481.73 2,695.87
SURPLUS
TOTAL SHAREHOLDERS 4,574.23 3,968.82 4,226.86 3,657.88 2,871.78
FUNDS
NON-CURRENT LIABILITIES
Long Term Borrowings 24.68 26.05 201.04 200.64 0
Deferred Tax Liabilities [Net] 0 8.32 96.03 98.28 64.47
Other Long Term Liabilities 4.66 4.56 4.25 3.71 0
Long Term Provisions 54.69 52.76 50.04 47.52 45.03
TOTAL NON-CURRENT 84.03 91.69 351.36 350.15 109.5
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 89.28 108.72 85.49 83.04 86.51
Trade Payables 1,032.45 998.32 960.62 914.52 931.34
Other Current Liabilities 197.32 330.14 123.98 157.05 187.75
Short Term Provisions 122.8 81.09 64.39 54.38 268.13
TOTAL CURRENT 1,441.85 1,518.27 1,234.48 1,208.99 1,473.73
LIABILITIES
TOTAL CAPITAL AND 6,100.11 5,578.78 5,812.70 5,217.02 4,455.01
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,060.75 971.88 971.34 929.18 673.49
Intangible Assets 25.15 15.37 8.78 12.8 17.04
Capital Work-In-Progress 105.83 21.69 26.82 28.25 24.96
Other Assets 48.38 49.37 50.36 51.35 0
FIXED ASSETS 1,240.11 1,058.31 1,057.30 1,021.58 715.49
Non-Current Investments 1,084.16 2,236.74 2,719.69 2,319.03 1,763.39
Deferred Tax Assets [Net] 21.62 0 0 0 0
Long Term Loans And Advances 16.78 13.14 9.61 8.92 23.66
Other Non-Current Assets 472.25 146.24 67.26 81.88 0.02
TOTAL NON-CURRENT 2,834.92 3,454.43 3,853.86 3,431.41 2,502.56
ASSETS
CURRENT ASSETS
Current Investments 1,382.67 725.4 713.39 735.12 661.48
Inventories 809.14 732.9 704.79 599.27 615.56
Trade Receivables 379.63 431.46 321.34 333.25 420.69
Cash And Cash Equivalents 525.6 124.71 87.02 26.16 54.16
Short Term Loans And Advances 1.22 4.56 1.41 3.35 123.91
41
Other CurrentAssets 166.93 105.32 130.89 88.46 76.65
TOTAL CURRENT ASSETS 3,265.19 2,124.35 1,958.84 1,785.61 1,952.45
TOTAL ASSETS 6,100.11 5,578.78 5,812.70 5,217.02 4,455.01

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CHAPTER – 1

INTRODUCTION ABOUT THE ORGANISATION & INDUSTRY

1.1 INTRODUCTION TO ORGANISATION STUDY

1.2 INTRODUCTION TO INDUSTRY – FMCG

Dept of MBA, Don Bosco Institue of Technology.

• 1884 - Established by Dr. S K Burman at Kolkata

Dept of MBA, Don Bosco Institue of Technology.

• 1988 - Launches pharmaceutical medicines

2.2 NATURE OF BUSINESS

2.3 VISION , MISSION AND QUALITY POLICY

Dept of MBA, Don Bosco Institue of Technology.

• Committing to continuous improvement, which is measured, evaluated and validated for

Dept of MBA, Don Bosco Institue of Technology.

2.4 WORKFLOW MODEL

2.5 PRODUCT / SERVICE PROFILE

Dept of MBA, Don Bosco Institue of Technology.

• Dabur Lal Tail

DABUR’S COMPETITOR PROFILE

Dept of MBA, Don Bosco Institue of Technology.

2.6 OWNERSHIP PATTERN

The company divided its Ownership pattern into two categories:

Dept of MBA, Don Bosco Institue of Technology.

2.7 AWARDS AND ACHIEVEMENTS

Dept of MBA, Don Bosco Institue of Technology.

• Dabur wins Assocham FMCG 2017 Award

• Dabur wins ICSI National Awards for Excellence in Corporate Governance

2.8 FUTURE GROWTH AND PROSPECTS

Dept of MBA, Don Bosco Institue of Technology.

INTRODUCTION OF NEW PRODUCT

Dept of MBA, Don Bosco Institue of Technology.

MCKENSY’S 7S FRAMEWORK AND PORTERS FIVE

3.1 MCKENSY’S 7S FRAMEWORK

• Strategy: Plan leading to allocation ofresources.

• Structure: Organization reporting lines, geography,etc.

• Systems: Formal and informal processesused.

Dept of MBA, Don Bosco Institue of Technology.

• Staff: Demographics ofpersonnel.

• Style: Behaviour of managers when interacting withothers.

• Skills: Core competencies of thefirm.

• Shared Value: Culture, which is actually the core element to itall.

HARD ELEMENTS: Comprises of 3 elements

Dept of MBA, Don Bosco Institue of Technology.

Rules and regulations

• Prohibition of alcohol consumption in work place

• Prohibition of tobacco products

• Cell phone usages are banned

• All electronic gadgets are not allowed in the organization

Dept of MBA, Don Bosco Institue of Technology.

STRUCTURE OF THE ORGANISATION

Production Marketing Sales HR

Area Sales Area Sales Area Sales

Sales Team Sales Team Sales Team

SOFT ELEMENTS: Comprises of 4 elements

Dept of MBA, Don Bosco Institue of Technology.

All the people employed by a particular organisation is said to be staff.

Dept of MBA, Don Bosco Institue of Technology.

Dept of MBA, Don Bosco Institue of Technology.

• LEADERSHIP: The courage to shape a better future

3.2 PORTERS FIVE FORCE MODEL

Dept of MBA, Don Bosco Institue of Technology.

Dept of MBA, Don Bosco Institue of Technology.

SWOT Analysis Framework