Dabur: The Herbal Giant Transforming Health and Wellness

Dabur: The Herbal Giant Transforming Health and Wellness

Did you know that FMCG is the fourth-largest sector in India? The Fast Moving Consumer Goods (FMCG), which includes products like food items, personal care, cleaning products etc, is regarded as the fourth largest sector of the Indian economy.

Well, Dabur is a multinational consumer goods company specialising in Ayurvedic medicine and natural products. It is the world’s leading Ayurveda company and one of the largest FMCG companies in India.

In the year 1884, Dr. S. K. Burman a physician, a practitioner of Ayurveda launches his mission to make health care products in Calcutta. He was affectionately known as Daktar Burman (with "Daktar" translating to "doctor" in Bengali).

In the mid-1880s, while practicing as an Ayurvedic doctor in Kolkata, Dr. Burman began developing Ayurvedic treatments for ailments such as cholera, constipation, and malaria.

The term "Dabur," a combination of the words daktar (doctor) and Burman, began to be used by his patients to refer to him and his medications. He later mass-produced his Ayurvedic formulas.

In 1896, as Dabur products grew in popularity, Dr. Burman expanded his operations by establishing a manufacturing plant for mass production of his formulations.

In early 1900s, Dabur ventured into the specialized field of nature-based Ayurvedic medicines, providing standardized drugs that were not available in the market.


A vintage Dabur advertisment from the 1900s promoting its Amla Oil

In 1919, C.L. Burman, the son of Dr. Burman, established manufacturing plants and R&D facilities to ensure the quality of mass production.

In 1936, Dabur becomes a full-fledged company - Dabur India (Dr. S. K. Burman) Pvt. Ltd.

In 1979, Launch of full-fledged research operations in pioneering areas of health care with establishment of the Dabur Research & Development Centre (DRDC) at Sahibabad factory.


In 1986, Dabur becomes a Public Limited Company. Dabur India Ltd. comes into being after reverse merger with Vidogum Limited.

In 1992, Dabur enters into a joint venture with Agrolimen of Spain. This new venture is to manufacture and market confectionery items in India.

In 1996, For better operation and management, 3 separate divisions are created according to their product mix - Health Care, Products Division, Family Product Division & Dabur Ayurvedic Specialities Limited.

In 2000, Dabur establishes its market leadership status with a turnover of Rs.1,000 crores. From a small beginning and upholding the values of its founder, Dabur now enters the august league of large corporate businesses.

In 2005, Dabur India announces issue of 1:1 bonus share to its shareholders (i.e. one share for every one share held.)

In 2010, Dabur makes its first overseas acquisitions by buying Hobi Kozmetik Group, a leading personal care products company in Turkey, for $69 Million. This is followed in succession by the acquisition of 100% equity in Namaste Laboratories LLC of the US for $100 Million.

In 2012, Dabur India Ltd. surpasses the billion-dollar turnover mark during the 2011-12 fiscal to end the year on a high note with net sales of INR 5283.17 Crores.

In 2019, Mohit Malhotra takes charge as new global CEO.

In 2022, Dabur's revenue crossed Rs. 10000 Crore.

Dabur' Business Model:

Dabur operates through three distinct business models: the Consumer Care Division (CCD), the International Business Division (IBD), and the Consumer Health Division (CHD). These three business units form the core of Dabur's operations.

Dabur manufactures a diverse range of products. Its Consumer Care Division is categorized into four segments: healthcare products, hair care products, skin care products, and food items.

The International Presence: Dabur has a global presence, with its products available in over 120 countries worldwide. The company offers a diverse range of products in categories such as Hair Care, Oral Care, Health Care, Skin Care, Home Care, and Food & Beverages.


Source: Dabur's Integrated Annual Report 2022-2023


The Burmans : From left: Amit, Mohit and Aditya Burman

As of August 1, 2024, the top-level management at Dabur India Ltd. includes the following individuals:

  • Mohit Malhotra: Chief Executive Officer (CEO)
  • V.C. Burman: Chairman
  • P.D. Narang: Whole Time Director and Group Finance Head
  • Anand Burman: Chairman Emeritus

These leaders are responsible for steering Dabur's strategic direction and overseeing its operations across various divisions, including consumer care, international business, and consumer health

Dabur: Mergers, Acquisitions, and Shareholders

Mergers and Acquisitions

  1. Badshah Masala: In 2022, Dabur acquired a 51% stake in Badshah Masala, marking its entry into the lucrative spices and seasonings market.
  2. Eveready Industries: Dabur made a significant investment in Eveready Industries in 2022, showcasing its interest in diversifying and expanding its portfolio.
  3. Melorra: Dabur invested $12 million in Melorra, a jewelry startup, during its Series C funding round in 2019.

Shareholders

Dabur's shareholder structure is diversified, involving both institutional and retail investors. Key shareholders include the Burman family, who have a significant stake, maintaining their influence and control over the company's strategic directions.

PS: The above logo and images belong to their respective owners. The information is based on individual research and may have been sourced from original authors. It is shared here solely for educational and informational purposes.


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