Premium Essay

Dabur India Ltd

In: Business and Management

Submitted By Devesh5
Words 5410
Pages 22
ltdDabur India - Working Capital and Cost Management
Dr. Narender L. Ahuja, Institute for Integrated Learning in Management, New Delhi, India Ms. Sweta Agarwal, Institute for Integrated Learning in Management, New Delhi, India


After running as a family business for over 100 years, when in late 1990s the management of the Dabur was handed over to a team of professional managers, the new management faced a gigantic task of improving performance in several critical areas. In particular, working capital and cost management required urgent attention as the company’s performance in these areas had been far from satisfactory. The then prevailing current ratio of 3.2 and quick ratio of 2.4 were considered too high and indicative of heavy unnecessary investments in working capital that would have a negative effect on company’s profitability. Efforts to improve the working capital efficiency were met with stiff resistance from various quarters, but finally yielded results. The case study discusses the measures taken to improve the working capital and cost management performance, and how with concerted efforts the management turned around a highly inefficient working capital management into one of the most efficient in the FMCG sector of Indian Industry. In fact, the company seemed to have taken the matter to the other extreme of negative working capital, with the current ratio declining to 0.8 and the quick ratio to just 0.4 in 2004-05. In 2005-06 as the company was ready to launch itself into the next phase of fast growth, several critical issues related to the liquidity and solvency of the company confront the management which are also discussed in the case study. CASE “How could a company have a ‘negative’ working capital and call itself successful?” Bo asked his friend Sharad. They had just joined Dabur India as Management Trainees and at the moment were…...

Similar Documents

Free Essay

New Holland Fiat India Pvt. Ltd

...Holland Products now have a presence across 149 countries with 45 Manufacturing Plants and the 23rd plant in India. NEW HOLLAND INDIA PLANT New Holland Fiat India is a 100% subsidiary of USD 15bn, CNH Global, which is the World’s largest Agricultural Equipments Company and the Leading manufacturer of Agricultural and construction equipment in the world. A majority owned subsidiary, of Fiat Group plant, spread across 60 acres in the Greater Noida District of Uttar Pradesh is the state-of-the-art plant with an initial investment of over Rs. 250 Crores, and is designed on the lines of New Holland’s international manufacturing facilities. The company has focused its strength in agricultural mechanization to build a world-class tractor company in India. It’s rationale for investment in India to be driven primarily by its long involvement and in-depth understanding of the Indian agricultural industry. Last year it produced over 23,000 tractors in 35-75 Hp segment with over a 90 per cent indigenization. Not just India, tractors made by New Holland India have made their mark in the rest of the world. Today, completely built tractors, manufactured in its state-of-the-art Greater Noida plant are being exported to over 51countries in Asia, Africa and Middle East, Australia, New Zealand, Latin America and North America. A true testimony of the New Holland India quality, that the world admires. The Worldwide Products of New Holland Agricultural......

Words: 833 - Pages: 4

Premium Essay


...planning and Execution of Trade Promotional /Consumer Offer Scheme 11. Understanding Target Market for our brand and Selection of Gift Items as per Budget allocated to each of our Brands 12. Negotiation with Vendors 13. Handled Branding Activities at POINT OF SALE. 14. Identifying Branding opportunities at POS and Implementing SIGNAGE Change wherever required 2. About Us 3. Dabur India Limited is the fifth largest FMCG Company in India with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs. 2,396 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. 4. Dabur is dedicated to the health and wellness of every household. Today there is global awareness of alternative medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing nature based, holistic lifestyles, marketing its products in more than 50 countries all over the world. 5.

Words: 350 - Pages: 2

Premium Essay

Supply Chain Mgmt at Dabur

...Supply Chain Management Fruit juice- Dabur Nepal Pvt Ltd. Dabur Nepal has been producing fruit juice in Nepal for many years. The major fruit juices produced by Dabur Nepal are:- • Real • Activ The major raw material required to produce these juices are:- • Fruit pulp (orange, apple, mango etc) • Concentrated • Sugar • Water • Natural flavors The majority of the mango pulp comes from the India, while other fruit pulps like: - apple, orange, cranberries are imported mainly from Europe. Sugar and water are obtained from the domestic suppliers of the country. Beside juice productions, for other major products of the Dabur the major supplying companies are: - Orano, Doehler, LDC. In Dabur, the spices are imported from Indonesia, Glucose from china, and palm oil from Malaysia. In Dabur, the sales and marketing department forecasts the demand for fruit juices for coming 6 months. They use the system developed by SAP inorder to forecast demand and manage their inventory. RPP (Revolving Product Planning) is used to determine the market requirement once a month. Through this system they are able to determine what and when the raw materials are required. The SKU (Stock Keeping Unit) has the FG code for every item. Then the system determines the purchase requirement. After that the purchase order is placed by the company to their suppliers. After the raw materials are received from the suppliers, quality testing of the material is done. For the quality test, 5 days...

Words: 403 - Pages: 2

Premium Essay

Report on Emami Ltd.

...Emami Ltd. Stock Note HDFCSec Scrip Code EMALIMEQNR Industry FMCG CMP (Rs.) 588.9 CMP: Rs. 588.9 March 22, 2013 Recommended Action Buy at CMP & add on dips Averaging Price Band (Rs.) 551-563 Price Target (Rs.) 686 Time Horizon 1-2 quarters Price Chart Background Founded in 1974 & promoted by Mr. R.S. Agarwal & Mr. R. S. Goenka, Emami Ltd., a flagship company of Emami Group, is one of the leading FMCG players engaged in manufacturing & marketing of personal care & healthcare products. With over 300 diverse products, Emami’s portfolio includes trusted power brands like Zandu, Boroplus, Navratna, Fair & Handsome, Mentho Plus, Fast Relief & Sona Chandi Chyawanprash. Triggers We expect Emami’s Net Sales & PAT to grow by 16.9% & 219.7% respectively over FY12-14. Growth momentum could continue in its power brands viz Boroplus, Navratna, Fair & Handsome & Zandu, led by higher A&P spends, distribution expansion and brand extensions. The management aims to grow each of its power brands to Rs 8-10 bn over the next 5 years. Strong R&D & aggressive marketing & distribution would continue to support portfolio expansion, like in the past. The company’s sub-segmentation strategy of launching variants and brand extensions has worked out well. Emami is a market leader in under penetrated segments like Fairness cream, Antiseptic cream and Cold cream market. Robust outlook of personal care market could prove to be beneficial for Emami going forward. Even the cooling oil market......

Words: 8088 - Pages: 33

Premium Essay


...IN DABUR INDIA LIMITED By KunalKapoor 11BSPHH010422 IBS, Hyderabad Summer Internship Report Page 1 A PROJECT REPORT ON EXPANDING THE DISTRIBUTION NETWORK IN RURAL AND UNTAPPED MARKET OF DELHI By KunalKapoor (11BSPHH010422) A Report submitted in partial fulfillment of the requirements of MBA program of IBS, Hyderabad Submitted To: Mr. TanmayThaker Regional Sales Manager DABUR INDIA (Company Guide) & Mr. Raja shekhar Reddy IBS, HYDERABAD (Faculty Guide) In DABUR INDIA Summer Internship Report Page 2 INTERNSHIP CERTIFICATE Summer Internship Report Page 3 AUTHORIZATION The project report titled as “expanding the distribution network in rural and untapped market of Delhi” has been authorized by DABUR INDIA LTD as a part of the evaluation for Summer Internship Program. The project has been submitted as a partial fulfillment of the requirement of Masters of Business Administration (MBA) program of IBS, Hyderabad. Submitted By: KunalKapoor (11BSPHH010422) Submitted To: Mr. TanmayThaker Regional Sales Manager DABUR INDIA Mr. Raja Shekhar Reddy Faculty Guide IBS, Hyderabad Summer Internship Report Page 4 ACKNOWLEDGEMENT Summer Internship Program(SIP) aims to provide every student with an opportunity to apply theoretical concepts to the real business scenarios. The wealth of knowledge and experiences shared by all involved in completion of successful internship is valuable. I feel privileged to be associated with DABUR INDIA. I......

Words: 8445 - Pages: 34

Premium Essay

Organisational Study: Maruti Suzuki India Ltd.

...Organisational Behavior Study Maruti Suzuki India Ltd. A Brief About the Organisation Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The vision of the company is “to be the leader in the Indian automobile Industry, creating customer delight and shareholders wealth. A pride of India”. Maruti Suzuki India Ltd. has always been a leader in the Indian automobile industry & we have studied the attitudes and behaviours that prevail within the organisation which are a major contributor to the success of the organisation. Understanding of the organizations parameters Leadership Leaders can make a difference. They have the ability to influence a group towards the achievement of vision or a set of goals and hence are needed to create vision for the future, and to inspire organizational members to want to......

Words: 3293 - Pages: 14

Premium Essay

Competency Mapping for Frontline Employees at Odyssey India Ltd

...Summer Internship Program 2010 A REPORT ON “A STUDY ON COMPETENCY MAPPING FOR FRONT-LINE WORKERS “ IN ODYSSEY INDIA LIMITED” [pic] [pic] By T. Bhuvaneshwari. 09BS0000567 [pic] May 2010 A REPORT ON “A STUDY OF COMPETENCY MAPPING FOR THR FRONTLINE WORKERS IN ODYSSEY INDIA LIMITED” A report submitted as partial fulfillment of the requirement of MBA Program of IBS FACULTY GUIDE COMPANY GUIDE Mrs. Poornima Mr. Karthikeyan. S IBS Bangalore Faculty Assistant HR Manager Odyssey India Limited. By T. Bhuvaneshwari 09BS0000567 ICFAI BUSINESS SCHOOL, BANGALORE [pic] May, 2010 DECLARATION I hereby declare that the work being presented here is an authentic record of original work done by me on the summer internship project, “A STUDY ON COMPETENCY MAPPING FOR THE FRONTLINE EMPLOYEES AT ODYSSEY INDIA LTD “under the guidance of Dr. C. Poornima and is in partial fulfillment of the requirement for the award of the degree of Masters of Business Administration. I also certify that this work has not been submitted else where for the award of any other degree. Place : Bangalore T. Bhuvaneshwari. Date: CERTIFICATE This is to certify that the project entitled “A study on competency mapping for front line employees at Odyssey India Ltd.” being submitted to “ICFAI BUSINESS SCHOOL, BANGALORE “by, Miss. T. Bhuvaneshwari. For the award of the degree of “ MASTERS OF BUSINESS......

Words: 11010 - Pages: 45

Free Essay

Report on Dabur

...Market research project report On Usage and Attitude study Of Dabur Real Juice Submitted Towards Partial Fulfillment Of Master of Business Administration SUBMITTED TO SUBMITTED BY DR P.K Agarwal payal morwani Head Of The department MBA MBA Roll No.pgfa1337 COLLEGE OF ENGRINEERING & TECHNOLOGY IILM ACADEMY OF HIGHER LEARNING PlotNo-17&18 Knowledge Park – ll Greater Noida ACKNOWLEDGMENT It is said that life is mixture of achievement, experience, exposure, dreams and efforts to make those dreams come true .There are people around who held you enable realize those dreams come true. There are people around who held you enable realize those dreams .During these sixty days of training I gained invaluable experience in the field of Marketing .the exposure that I went through during the past two months has given immense improvement in my knowledge base where I can put my theoretical knowledge in practical use. At the very outset, I would like to express my gratitude to Mr. N.A Zaidi and Mr. Rakesh Sharma for providing me with a wonderful opportunity to pursue my project......

Words: 12428 - Pages: 50

Premium Essay

Financial Analysis of Bata India Ltd

...efficiency as the company seems to have bought much more inventory than it could sell compared to last year hence leading to an increase. The negative cash flow in CFI is majorly due to the payment of the dividends, which forms 83% of the cash flow from financing activities. This payment of the dividends has remained constant showing that dividend distribution policy of Bata India hasn’t changed, providing a stable and consistent source of income for shareholders. It was observed Total Assets increased by 22% from last year, which can be majorly attributed to 26% increase in Inventories and 33% increase in Cash. This shows that major changes in Assets have been due to Current Assets, which have increased from last year by nearly 28%. A 33% increase in unsold inventories could be a cause of concern as this could mean either overproduction or slowdown in sales. A significant observation was that Bata currently has no long-term debt outstanding, indicating its capital structure is totally Equity Based. Since there have been no increase in long-term debt and no additional Equity was raised, we can conclude that Bata India primarily financed it operations from its Cash Reserves and Operating revenues. 2. 3. 4. Balance Sheet: 1. 2. Income Statement: The growth of Operating profit was a healthy 17% compared to last year despite SG&A expenses increasing by 14%. The company also negligible Interest expenses which collaborates with what we saw in the balance sheet......

Words: 1421 - Pages: 6

Premium Essay

Food Processing Industry in India

...FOOD PROCESSING IN INDIA Corporate Catalyst India A report on Indian Food Processing Industry 1. INDUSTRY OVERVIEW India is the world’s second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The food processing industry is one of the largest industries in India-it is ranked fifth in terms of production, consumption, export and expected growth. The food industry is on a high as Indians continue to have a feast. Fuelled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. Increasing incomes are always accompanied by a change in the food basket. The proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products, meat, egg and fish, fruits and beverages. For instance, the proportionate expenditure on staples (cereals, grams, pulses) declined from 45 per cent to 44 per cent in rural India while the figure settled at 32 per cent of the total expenditure on food in urban India. A large part of this shift in consumption is driven by the processed food market, which accounts for 32 per cent of the total food market. It accounts for US$ 29.4 billion, in a total estimated market of US$ 91.66 billion. The Confederation......

Words: 8652 - Pages: 35

Premium Essay

Dabur Case Study

...DABUR~MARKETING REPORT ACKNOWLEDGEMENT We take the opportunity to express our heartfelt adulation and gratitude to our professor Mr. Pinaki Dasgupta, IMI New Delhi for his constructive suggestions, inspiration in guiding us during the course of this project work. We are grateful to Dr. B A Metri, Dean Academics We thank the IT department of our college for providing adequate work environment to carry out the project work. We cannot close these prefatory remarks without expressing my deep sense of gratitude and reverence to our dear parents for their blessings and endeavour to keep our moral high throughout the period of our work. We want to express our sincere thanks to all those who directly or indirectly helped us at various stages of the project work. Above all, we express our indebtedness to the “ALMIGHTY” for all His blessing and kindness. SUBMITTED BY: LOGIC FOR SELECTION OF COMPANY Dabur is the story of a visionary with a mission to serve the masses through quality healthcare. The company which started from a small house in Calcutta is now India’s fourth largest FMCG Company.  It has been one of the leading companies in the Indian market for more than 130 years. LIST OF CONTENTS HISTORY AND INTRODUCTION The Story of Dabur had started in the late 19th century due to the vision of a General Physician Dr. S.K. Burman.  He was a visionary from Bengal with great and innovative ideas. He had the desire to provide affordable and quality treatment......

Words: 2255 - Pages: 10

Premium Essay

Proactive Hrd of Infosys Ltd of India

...and Infosys was able to lower the employee turnover to a rate around 11% as opposed to an average of 25% for the industry. 2) Good Facilities for Employees Infosys Technologies Ltd provided many facilities such as ticketing, credit cards, crèche facilities for kids, transport facilities, recreational facilities etc. to its employees to take care of both the professional and personal needs. 3) Promotion Promotion is advancement to a higher-level job with increased authority, responsibility and pay within the organization. Infosys Technologies Ltd promoted about 80% of the middle and senior level executives from within the organization to motivate them. 4) Best Reward System Analysts felt that Infosys Technologies Ltd had one of the best reward systems in the industry. Most employees in Infosys Ltd were paid high salaries as compare to other employees in the industry. Also there are some monetary and non monetary benefits like compensation, overtime etc. that Infosys gives to its employees to motivate them. 5) Open (Effective) Communication Employees in Infosys Ltd were encouraged to communicate with each other and with higher management about interesting ideas and ways of solving problems. 6) Good Leadership Style Narayana Murthy set up a leadership institute in Mysore, India which aims at preparing Infosys employees to face the complexities of a rapidly changing market place. Narayana Murthy said it is the vision of Infosys to create world class......

Words: 804 - Pages: 4

Premium Essay

Dabur India

...S w 9B09A017 DABUR INDIA LTD. - GLOBALIZATION R. Chandrasekhar wrote this case under the supervision of Professor Niraj Dawar solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail Copyright © 2009, Ivey Management Services Version: (A) 2009-06-10 INTRODUCTION In June 2007, consumer packaged goods (CPG) companies around the world were optimistically betting on growth in India. Dabur India Ltd. (Dabur) was among the top 10 CPG1 companies in India by revenue (see Exhibit 1). Dabur’s chief executive officer (CEO), Sunil Duggal, was bullish on the Indian market, yet he was also convinced of the imperative to internationalize. Scheduled to meet soon with a group of institutional investors to brief them on the company’s growth strategy, Duggal had......

Words: 5753 - Pages: 24

Premium Essay

Dabur Nepal Financial Report

...Dabur Nepal Pvt. Limited Audited Balance Sheet and Profit & Loss Accounts for the year ended 31st March, 2006 DABUR NEPAL PVT. LIMITED 19 ANNUAL REPORT 2005-06 Contents Page Director’s Report 1 Auditor’s Report 5 Balance Sheet 8 Profit & Loss Account 9 Schedules 10 Accounting Policies & Notes to Accounts 14 Statement of Cash Flow 18 DABUR NEPAL PVT. LIMITED 20 ANNUAL REPORT 2005-06 DIRECTORS’ REPORT To The Members of Dabur Nepal Pvt. Limited, This report presented by your Directors in respect of Financial year ended on 31.03.2006 has been made out for the limited purpose in terms of section 212 (2) (b) of Indian Companies Act,1956 . Pursuant to section 212(2)(a) and section 212(2) (b) of Indian Companies Act, the Balance Sheet of Dabur Nepal Pvt. Limited as on 31st March ,2006 and the Profit & loss Account for the year ended on that date dealt with by this report have also been made out in accordance with the requirement of Indian Companies Act 1956,which have been certified by an Indian firm of Chartered Accountants thereby making out the audit report thereof in accordance with the requirements of Indian Companies Act,1956. FINANCIAL RESULTS The Financial results of drawn in accordance with Indian Companies Act are as follows: (Rs in lacs) Particulars articulars Sales (incl. Other income) Profit before Tax 2005-06 19481.78 590.24 Less: Provision for Tax-current 2004-05 18638.84 941.23 105.54 165.33 Net profit after tax Balance brought......

Words: 7218 - Pages: 29

Premium Essay

Dabur Project

...DABUR INDIA LIMITED | MARKETING RESEARCH FOR ASSESSING PERFORMANCE OF DABUR PRODUCTS | PROMOTING INSTITUTIONAL SALES FOR DABUR PRODUCTS | | DILEEP SINGH SHEKHAWAT | 6/24/2010 | SUBMITTED BY:DILEEP SINGH SHEKHAWAT | DABUR INDIA LIMITED “ONE OF INDIA’S MOST ADMIRED COMPANY” TABLE OF CONTENT | TOPICS DESCRIPTION | PAGE NO… | Acknowledgement………………………………………………………..Business portfolio of Dabur…………………………………………….Introduction to Dabur…………………………………………………...About market research………………………………………………….Steps of market research………………………………………………..Data analysis and findings for corn flour…………………....................Data analysis and findings for lemoneeze…………………...................Data analysis and findings for capsico………………………................Data analysis and findings for coconut milk…………………………..Data analysis and findings for honey…………………………...............Data analysis and findings for tomato puree………………………….Data analysis and findings for tomato paste…………………………..Data analysis and findings for snack dressing…………………………Data analysis and findings for tomato ketchup……………………….Data analysis and findings for pineapple slice…………………………Data analysis and findings for fruit cocktail…………………………..Data analysis and findings for mango pulp…………………………….Data analysis and findings for keora water………………....................Conclusion and recommendations…………………………………….About institutions sales ………………………………………………..Bibliography………………………………………………………… |......

Words: 7360 - Pages: 30