Dabur Explained

Dabur India Limited
Type:Public
Traded As:
    Industry:Consumer goods
    Founder:S. K. Burman
    Founded: in Kolkata, India
    Area Served:Worldwide
    Key People:
    Products:
    Revenue: (FY24)
    Operating Income: (FY24)
    Net Income: (FY24)
    Assets: (FY24)[1]
    Equity: (FY24)
    Num Employees:7,740 (March 2020)
    Owner:Burman family (66.24%)[2]
    Location City:Ghaziabad, Uttar Pradesh
    Footnotes:[3]
    Location Country:India
    Subsid:

    Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and headquartered in Ghaziabad.[4] It manufactures Ayurvedic products[5] and fast-moving consumer goods.[6] Dabur derives around 60% of its revenue from the consumer care business, 11% from the food business and remaining from the international business unit.[7]

    History

    Dabur was founded in Kolkata by Dr. S. K. Burman in 1884. In the mid-1880s, as an Ayurvedic practitioner in Kolkata he formulated Ayurvedic medicines for diseases like cholera, constipation and malaria. As a qualified physician, he went on to sell his medicines in Bengal on a bicycle. His patients started referring him and his medicines as "Dabur", a portmanteau of the words daktar (doctor) and Burman.[8] He later went on to mass-produce his Ayurvedic formulations.

    C.L. Burman, set up Dabur's first R&D unit. Later, his grandson, G.C Burman was gherao-ed by his own workers during a labor unrest in Kolkata. Due to the unpleasant situation, G.C Burman decided to move the factory to Delhi, where his brothers later relocated. In Delhi, the business thrived and the company soon became headquartered there. In the words of business historian Sonu Bhasin "Calcutta's loss was Delhi's gain."

    In 1997, Dabur set up a wholly-owned consumer goods subsidiary called Dabur Foods under which it launched its fruit juice brand called Real.[9] [10]

    In 1998, Dabur separated ownership from management, when they handed over the management of the company to professionals.[11]

    Dabur demerged its pharma business in 2003 and hived it off into a separate company, Dabur Pharma.[12] German company Fresenius bought a 73% stake in Dabur Pharma for in 2008.[13]

    In 2005, Dabur acquired three Balsara group companies, gaining control of brands such as Babool, Promise, Meswak, Odonil, Odomos, Odopic and Sani Fresh.[14]

    In 2009, Dabur completed the acquisition of a majority stake in female skincare products company Fem Care Pharma for and later merged the company into itself.[15]

    In 2022, Dabur acquired a 51% stake in the Indian spices company Badshah Masala for 588 crore.[16]

    Philanthropy

    Dabur's Sustainable Development Society (Sundesh) is a non-profit organisation started by Burman that aims to carry out welfare activities in the spheres of health care, education and other socio-economic activities. Dabur drives its corporate social responsibility (CSR) initiatives through Sundesh.[17] [18]

    The 2015 Brand Trust Report puts Dabur at 19th place.[19]

    Controversy

    Former executive director Pradip Burman was on the list of black money account holders on 27 October 2014 when the government published the list. Dabur rejected the black money charge.[20]

    In December 2020, a report by the Centre for Science and Environment showed that Dabur Honey, along with other major brands' products, was adulterated with sugar syrup.[21]

    Hajmola or Hazmola is an ayurvedic digestive tablet sold as a treatment for dyspepsia by Dabur under that name since the 1950s. A counterfeit of the product was trademarked by "Hilal Foods (Pvt.) Limited" (estb. 1986),[22] a Clifton, Karachi based company, in Pakistan which had been selling it since at least the 1980s. When Dabur began operating in Pakistan, it filed an intellectual property infringement suit against Hilal through its subsidiary which was ultimately settled by the Sindh High Court allowing both Hilal and Dabur to use the Hajmola trademark.[23]

    See also

    Notes and References

    1. Web site: Dabur Ltd Results. Dabur. 2 November 2020. 30 August 2021. https://web.archive.org/web/20210830061607/https://dabur.com/digital-annual-report/pdf/Dabur-IR-2019-20.pdf. dead.
    2. Web site: Shareholding Pattern, 31st March 2021. live. https://web.archive.org/web/20210527084728/https://www.dabur.com/img/upload-files/1139-Fourth-quater.pdf . 27 May 2021 .
    3. Web site: Annual Report 2014-15 . Dabur.com . 13 April 2017 . 5 February 2022 . https://web.archive.org/web/20220205055601/https://www.dabur.com/Annual-Reports-2014-15 . dead .
    4. Web site: India's Most Trusted Brands . dead . https://web.archive.org/web/20150502221904/http://www.trustadvisory.info/allindia_2014.html . 2 May 2015 . dmy .
    5. Web site: Dabur India History . economictimes.indiatimes.com.
    6. News: The FMCG leader – Dabur . 19 June 2020 . Outlook . en.
    7. Web site: Dabur Annual Report 2019–20. live. https://web.archive.org/web/20210413170527/https://www.dabur.com/img/upload-files/3244-Dabur-IR-2019-20.pdf . 13 April 2021 .
    8. Book: Bhasin, Sonu. The Inheritors: Stories of Entrepreneurship and Success: Stories of Entrepreneurship and Success. 2017-10-18. Penguin Random House India Private Limited. 978-93-86815-95-8. en.
    9. News: Menon . Bindu D. . A Real Twist in Dabur's plan . 14 February 2023 . The Economic Times . 22 March 2007.
    10. News: The Risk That Worked . 14 February 2023 . The Financial Express . 30 March 2009.
    11. Web site: How Dabur's Burmans Segregated Family and Business Forbes India. Forbes India. en-US. 27 July 2017.
    12. Web site: Minocha . Naresh . 2003-05-22 . Dabur India demerges pharma business from FMCG ops . https://web.archive.org/web/20170802165115/https://www.icis.com/resources/news/2003/05/22/196152/dabur-india-demerges-pharma-business-from-fmcg-ops/ . 2017-08-02 . 2017-08-02 . www.icis.com.
    13. News: German co Fresenius Kabi picks up 73% in Dabur Pharma . 17 May 2024 . The Economic Times . 20 April 2008.
    14. News: Dabur buys Balsara for Rs 143 cr . 17 May 2024 . Rediff . en.
    15. News: Dabur completes merger of Fem Care . 17 May 2024 . Mint . 18 June 2010 . en.
    16. News: Dabur buys 51% stake in Badshah Masala for Rs 588cr . 14 February 2023 . The Times of India . 27 October 2022.
    17. http://www.dabur.com/Media-CSR%20Initiatives "Making A Difference."
    18. Vats, Rachit (28 August 2011.) "Social branding." Hindustantimes.com. Accessed September 2011.
    19. Web site: Reporter. B. S.. Brand trust survey shows surprise gainers; Indian firms, too, make presence felt. 25 February 2015 . 13 September 2016.
    20. Web site: Dabur rejects black money charge against Pradip Burman, Lodhiya 'shocked' to see his name:News18 Videos. https://web.archive.org/web/20141029164539/http://ibnlive.in.com/news/dabur-rejects-black-money-charge-against-pradip-burman-lodhiya-shocked-to-see-his-name/508820-3.html. dead. 29 October 2014. 27 October 2014. Ibnlive.in.com. 13 April 2017.
    21. News: 10 out of 13 honey brands fail 'purity test', finds CSE investigation. Jacob. Koshy. The Hindu . 2 December 2020. www.thehindu.com.
    22. Web site: HILAL FOODS (PVT.) LIMITED . 2022-09-20 . Open Corporates.
    23. Web site: 2021-01-30 . The battle for Hajmola is almost over . 2022-09-20 . . en-US.