Page 44 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Unit 1: Share Capital – Issue of Shares

Brand Rejuvenation Notes
With youth forming a major population of India, Dabur decided to revamp its brand
identity. Dabur associated itself with Amitabh Bachchan, Vivek Oberoi, Rani Mukherjee
and Virender Sehwag for endorsements. New packaging and advertising campaign saw
the sales of Chyawanprash grow by 8.5 per cent in 2003-04.

The year 2004-05 saw a whole new brand identity of Dabur. The old Banyan tree was
replaced with a new, fresh Banyan tree.

The logo was changed to a tree with a younger look. The leaves suggesting growth,
energy and rejuvenation, twin colors reflecting perfect combination of stability and
freshness, the trunk represented three people raising their hands in joy, the broad trunk
symbolized stability, multiple branches were chosen to convey growth, and warmth and
energy were displayed through the soft orange color. ‘Celebrating Life’ was chosen as a
new tag that completely summarized the whole essence.
The Chairman in his annual report message said, “If I were to summarize your Company’s
performance during the year under review (2004-2005), it would be ‘Pursuit of Profitable
Growth’”.
HR Initiatives
The culture at Dabur gives full autonomy to its employees. Various training and
development programs like Young Manager Development Program, Prayas, Leading and
Facilitating Performance, Campus to Corpora and a Balanced scorecard approach to
performance evaluation, helps employees realize their potential.

Recently, Dabur has adopted an innovative HR program of offering ESOPs to new
engineering and management trainees at the time of joining. Also in 2005, Dabur gave
Bonus to its employees after 12 years. This boosted the employee morale further.
Dabur was listed as a “Great Place to Work”, in a survey conducted by Grow Talent &
Company and Great Place to Work Institute, USA. Dabur was listed as the 10th “Great
Place to Work”. The results were published in Business World dated February 2006.
IT initiatives

Dabur installed centralized SAP ERP system from 1st April 2006 for all business units. It
also implemented a country wide new WAN Infrastructure for running centralized ERP
system. Further it set up new Data Center at KCO Head Office.

Supply chain Initiatives
Dabur has undertaken e-procurement in a big way. In 2003-04 Dabur India procured 210
crore of raw materials through e-sourcing — or almost 50 per cent of total raw material
expenditure — and, in the process, considerably controlled raw material costs which were
on a rise.
For better production and operation management, Dabur included automation,
debottlenecking, Kaizen and wastage control. It set up production units in locations
providing tax holidays to reduce cost and improve efficiency.
Contd...

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