Page 45 - DCOM201_ACCOUNTING_FOR_COMPANIES_I

Accounting for Companies-I

Notes Other important changes
Dabur made its largest acquisition by taking over Balsara hygiene and home products
business. Dabur bought the entire promoters’ stake of three Balsara companies through an
all-cash deal of 140 crore. This was done to ensure Dabur’s presence in all price segments
in the herbal oral care market. Moreover, it allowed Dabur’s entry in the household care
segment, where Balsara has well-established brands.
Dabur also de-merged its pharmaceutical business to come out as a pure FMCG player.
Dabur estimated that the southern region was contributing as low as 7% to its overall
growth. For this purpose, the south team adopted a three-phase approach. First, it focused
on point of sale promotions and stocking practices. Second phase included better marketing
efforts in terms of advertising and packaging. Finally, it envisioned customized product
launches for the Southern states. The completion of first two phases by 2005-06 resulted in
increasing contribution to 10%.
Vision 2010
After the successful implementation of the 4-year business plan from 2002 to 2006, Dabur
has launched another plan for 2010. The main objectives are:
 Doubling of the sales figure from 2006
 The new plan will focus on expansion, acquisition and innovation. Although Dabur’s
international business has done well — growing by almost 29 per cent to 292 crore
in 2006-07, plans are to increase it by leaps and bounds.

 Growth will be achieved through international business, homecare, healthcare and
foods.

 Southern markets will remain as a focus area to increase its revenue share to 15 per
cent.
With smoothly sailing through its previous plans, this vision seems possible. Time and
again, Dabur has made decisions that have led to its present position. However, if Dabur
could be more aggressive in its approach, it can rise to unprecedented levels. To conclude,
this is a 10 year performance table from Dabur’s website.

Contd...

38 LOVELY PROFESSIONAL UNIVERSITY