CEO Interviews _ Amit Burman, Vice Chairman, Dabur India_ Changing Dynamics of Business at Dabur _...

7/27/2019 CEO Interviews _ Amit Burman, Vice Chairman, Dabur India_ Changing Dynamics of Business at Dabur _ CIO

1/5

06/08/2013 CEO Interviews | Amit Burman, Vice Chairman, Dabur India: Changing Dynamics of Business at Dabur | CIO.in

www.cio.in/view-top/changing-dynamics-business-dabur#ques0

LOGIN JOIN

MAGAZINE WHITE PAPERS VIDEOS EVENTS

CIO.in CEO Interviews Changing Dynamics of Business at Dabur

CEO INTERVIEW

Changing Dynamics of Business atDabur:Amit BurmanKanika Goswami

Interview Questions

Q. CIO: After 114 years, Dabur handed the business over to professionals. How has

that worked out?

Q. You took ayurvedic medicine corporate. But now with over 50 brands, how do you

maintain brand sanctity?

Q. But doesn't the Balsara(homecare) acquisition seem like a move outside the herbal

space?

Q. Why did Dabur exit the pharma business?

Q. You have forayed into health and beauty products. Why?

Q. Why did Dabur outsource its entire IT infrastructure?

Q. One of your strategic intents is to provide consumers with innovative products

within easy reach. How?

Q. You are also in the food business. How does IT help manage products withsixmonth shelf lives?

Q. You aim to increase penetration in south India. What is your strategy?

Q. What about via M&As?

Q. In the future, do you think natural will drive the health products industry in India?

Q. Can you tell us more about Lite Bite, the new brand you are promoting?

Full Interview with Amit Burman

CIO: CIO: After 114 years, Dabur handed the business over to professionals.

How has that worked out?

Amit Burman:

In 1998, the Burman family passed the management of the company over to a professional

CEO and limited their role to strategic inputs at a board level. We have reduced our

strength on the 10-member board of directors to four members and only provide broad

latest news

How Microsoft Blundered with the

SkyDrive Brand

Attackers Turning to Legit Cloud

Services Firms to Plant Malware

False Lenovo Security Report Only

Strengthens World's Top PC Maker

Microsoft Puts out 'HTTP 2.0' Server

to Test the Future of the Web

Black Hat: There May be more

Android "Master Keys" for

Corrupting Mobile Apps

Read all latest headlines

newsletter

Enter your Email address Go

Blackhat 2013

social @ CIOIndia

Sign up for our News Letters

NEWS CASE STUDIES OPINIONS SLIDESHOWS ARTICLES CIO INTERVIEWS VIDEOS MORECEO INTERVIEWS

Amit Burman

Vice Chairman, Dabur India

When the 114-year-old Dabur outsourced

its IT in order to stay quick-footed, plenty

of industry watchers held their breath.

After all, only a handful of large Indian

companies had attempted something

similar - and none of them had a century-

worth of baggage. But it's worked for

Dabur. It's given them plenty of flexibility,

if the way the company is expanding and

taking one smaller and more nimble

brands is any commentary. When a titan of

the old economy opens a new road, it

leaves behind a large swath for others to

follow.

Android One-click Google

Authentication Method Puts

Businesses at Risk

A researcher has released a proof-of-

concept Android app that can steal

'weblogin' authentication tokens for Google

accounts
http://www.cio.in/view-top/changing-dynamics-business-dabur#ques7http://www.cio.in/view-top/changing-dynamics-business-dabur#ques2http://www.cio.in/view-top/changing-dynamics-business-dabur#ques0http://www.cio.in/news/android-one-click-google-authentication-method-puts-businesses-risk-439032013http://www.cio.in/view-top/changing-dynamics-business-dabur#ques10http://www.cio.in/newshttp://www.cio.in/news/black-hat-there-may-be-more-android-master-keys-corrupting-mobile-apps-438692013http://www.cio.in/news/microsoft-puts-out-http-20-server-test-future-web-438952013http://www.cio.in/news/false-lenovo-security-report-only-strengthens-worlds-top-pc-maker-438822013http://www.cio.in/news/attackers-turning-legit-cloud-services-firms-plant-malware-438792013http://www.cio.in/news/attackers-turning-legit-cloud-services-firms-plant-malware-438792013http://www.cio.in/news/how-microsoft-blundered-skydrive-brand-438802013http://www.cio.in/news/how-microsoft-blundered-skydrive-brand-438802013http://www.cio.in/articleshttp://www.cio.in/ceointerviewshttp://www.cio.in/cio-interviewshttp://www.cio.in/videoshttp://www.cio.in/view-top/changing-dynamics-business-dabur#http://www.cio.in/whitepapershttp://www.cio.in/videoshttp://www.cio.in/news/android-one-click-google-authentication-method-puts-businesses-risk-439032013http://www.cio.in/ceointerviewshttp://www.cio.in/view-top/changing-dynamics-business-dabur#http://www.cio.in/videoshttp://www.cio.in/cio-interviewshttp://www.cio.in/articleshttp://www.cio.in/slideshowshttp://www.cio.in/opinionshttp://www.cio.in/find/case_studyhttp://www.cio.in/newshttp://www.cio.in/http://www.cio.in/newshttp://www.cio.in/news/black-hat-there-may-be-more-android-master-keys-corrupting-mobile-apps-438692013http://www.cio.in/news/microsoft-puts-out-http-20-server-test-future-web-438952013http://www.cio.in/news/false-lenovo-security-report-only-strengthens-worlds-top-pc-maker-438822013http://www.cio.in/news/attackers-turning-legit-cloud-services-firms-plant-malware-438792013http://www.cio.in/news/how-microsoft-blundered-skydrive-brand-438802013http://www.cio.in/view-top/changing-dynamics-business-dabur#ques11http://www.cio.in/view-top/changing-dynamics-business-dabur#ques10http://www.cio.in/view-top/changing-dynamics-business-dabur#ques9http://www.cio.in/view-top/changing-dynamics-business-dabur#ques8http://www.cio.in/view-top/changing-dynamics-business-dabur#ques7http://www.cio.in/view-top/changing-dynamics-business-dabur#ques6http://www.cio.in/view-top/changing-dynamics-business-dabur#ques5http://www.cio.in/view-top/changing-dynamics-business-dabur#ques4http://www.cio.in/view-top/changing-dynamics-business-dabur#ques3http://www.cio.in/view-top/changing-dynamics-business-dabur#ques2http://www.cio.in/view-top/changing-dynamics-business-dabur#ques1http://www.cio.in/view-top/changing-dynamics-business-dabur#ques0http://www.cio.in/ceointerviewshttp://www.cio.in/http://www.cio.in/eventshttp://www.cio.in/videoshttp://www.cio.in/whitepapershttp://www.cio.in/cio-magazinehttp://www.cio.in/rss.xmlhttp://www.twitter.com/#!/CIOInhttp://www.facebook.com/CIOIndiaIDGhttp://www.cio.in/user/registerhttp://www.cio.in/userhttp://www.cio.in/


2/5



policy guidelines for growth and diversification. The family provides strategic direction to

the company and the group and evaluates newer avenues for growth. The decision was

taken in response to the changing dynamics of our business and to inculcate a spirit of

corporate governance within Dabur. We felt the need to look at management succession

more seriously. We felt it was time for us to sit back and look at the big picture and let able

and talented managers to run the show. However, we also believe that the family has a

trusteeship role to follow both in terms of perpetuating the family business and in

preserving and growing the business.

For Dabur, the family and the business are institutions to preserve. The move has been a

success. Dabur has grown under professional management. Some of its brands - particularly

in the highly competitive oral care and shampoo markets - have emerged as the fastestgrowing brands in the market - ahead of established multinationals. For example, Vatika has,

for two years running, been the fastest growing shampoo in India. Three of our toothpaste

brands - Dabur Red, Babool and Meswak - are the fastest growing toothpaste brands in India

for three years now and have taken away market share from our competition.

Go to Questions

CIO: You took ayurvedic medicine corporate. But now with over 50 brands, how

do you maintain brand sanctity?

Amit Burman:

Today, Dabur is the world's largest natural healthcare company and while it is true that

Dabur's brand portfolio has grown, the fact also remains that a common thread binds them

all together: the company's herbal and ayurvedic heritage. All the products in Dabur's

portfolio are based on herbal and ayurvedic ingredients and this herbal heritage helps it

maintain brand sanctity, whether in the personal care space, or in health supplements. All

new product developments are also based on a herbal platform. This heritage helps Dabur'sbrands outpace MNCs - both in the oral care space and in the hair care space - and become

the fastest growing brands in their categories.

Go to Questions

CIO: But doesn't the Balsara(homecare) acquisition seem like a move outside

the herbal space?

Amit Burman:

The homecare portfolio is the only product line that operates outside the herbal space; it is

an acquired line-up. In our core FMCG portfolio, which includes personal care and health

care products, Dabur India continues to operate in the herbal and ayurvedic space. All new

product developments in our core categories also continue to operate in the herbal and

ayurvedic arena. Dabur has a huge herbal heritage and we intend to continue operating on

the herbal platform in the future.

Go to Questions

CIO: Why did Dabur exit the pharma business?

Amit Burman:

IT was a strategic decision by the Burman family. The family is happy to have created

significant shareholder value through this business in a short span of time. The proceeds

from the divestment of Dabur Pharma will go into family investments. There are several

options we could look at - insurance being one. Going forward, we need to re-evaluate our

entire portfolio before we invest elsewhere.

Go to Questions

CIO: You have forayed into health and beauty products. Why?

Amit Burman:

Dabur recognized a gap in the health and beauty retail space in India. There's a growing

need for quality service and store environment in that space. With no major

player, moving in now would give us an early mover advantage. The Indian consumer hascome of age. But the shopping experience here has not kept pace with this change. Even

though retail outlets have mushroomed across the country, most of them still do not offer

consumers the kind of shopping experience that people in the rest of the world are used to.

Dabur intends to tap the growth prospects in both the retail market and the health and

beauty segments. Our USP will be an unique store environment and a diversity of products

that will be on offer at the stores. Dabur has set up a wholly owned subsidiary, H&B Stores,

which is in the process of establishing a pan- India chain of specialty retail stores in the

beauty, health and wellness sphere.

The first of these retail outlets, branded new u, opened its doors to customers in Delhi in

March 2008. With new u, we are committed to bring a world-class shopping experience to

India. We have already established six new u outlets and are expanding its presence to

more cities. While these stores are targeted at women, they seek to create a fun and

CIO magazine

View all magazines

CIO July 15 2013

Facebook Twitter LinkedIn

Recent Activity

Gartner Reveals Top 10 IT Security Myths -

CIO India New s on | CIO.in

Be the first of your f riends to recommend this.

CIO India

One person recommends this.

CIO India

One person recommends this.

http://www.cio.in/ceo-interviews/it-helps-vodafone-essar-help-its-customers-better


CIO India


CIO India


CIO India


Facebook social plugin

Print Version WEB FRIENDLY VERSION (HTML)
http://www.cio.in/node/43570#tab2http://www.cio.in/cio-magazine/cio-july-15-2013https://www.facebook.com/help/?page=209089222464503http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Farticle%2Fvalidate-dna-outsourcing-vendor-ctrl-s&h=0AQFB6eJu&enc=AZPHEhULmDKPQEOBZFRBFNGGei2I2NSAV4s8zWSeJCbkgO7FqXMDZG8zY5df6oFSKcz9cx8dW3QozKxeWLOV9udV8UZFxFzgsormaewpJIG9qDbo91g-Fei9CEmkY_qspfpswtOIjxicVFTyVE44hxAib4mOXv-TVK7fe6b8PNNFHxDUb8iiMIAcvqOcxx0XpZxKSTgQG0B0URaLDzB1JcUkPWXniPaHnweLMrp-ePVH1g&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fceo-interviews%2Fmadras-cements-has-always-held-its-it-department-high-regard-dharmakrishnan-v&h=HAQFsiE_d&enc=AZO55E9oniGtZvEQXNiMqfIKeBJIzZ0HICEAaNpxi0uViHi9IMZ5h1mZlVD_rY4SvnVlMBk9cAowVNGYOd2O6PbPxIu-Dx7cRzy8K3IfOcFGGr9Ao5V3gAEYMccMhLJT7k8VwXCkdf0c03FeLAryrLVI0gHin8eTZ6ToN--gSi3GqKYflE3hvMSNcX-9w9Dc8a2S6dXUB2mY6U-9IcIpoHIrq_cNJCMuRKuIipVAL5cz0g&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Farticle%2Fwhat-can-employers-really-see-byod-smartphone-or-tablet&h=rAQFC8XRl&enc=AZOm7qHYCKF9odrTqZfauJRKMg6swyL4SC8ipGI2hS_rIM9gR2FTfJomhG8-_IYnRA8tw5HJVueBheoJlXQh8zeELurzArfzWsZri4cULoK_StT5vKkblLnQPBQ-Oi7p3hZ4PcA1tJx2L2GXNyNo2aRN9cqfWmEAf8-E8iLyJ9b97tSBaidlDikOI8MnNgk9XRXEc65EQbahoBxBZ-wNhKLH52NT2T6x0BLtsdnnXQjIUA&s=1http://www.cio.in/ceo-interviews/it-helps-vodafone-essar-help-its-customers-betterhttp://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fcase-study%2Fvenky-s-develops-erp-poultry-business-open-source&h=DAQER7IXK&enc=AZM-AiQvZrl6nEmTtc9xGz-BMXkxZ4jHuQ1D9kCJt8qd8RvgjosTB_eDLNrpd-Bvpzst5EzZ6YlUV73iAKK0x0JJDlEUG31p30DwCDA0lVrFNaH_T8zm4g7jvZBbEMToSxL0-N8AhSaPQsgG_XIKFW_eyMpxm-6R4r0iO1ojfDnX31pG9kw9X6bqhFxmgmhfQ3msRgibVXVodeGSUD2mPbGex5sOX3Hff4vREvW8tuRCLg&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Farticle%2Fdata-visualizations-converting-big-data-big-ideas&h=aAQFakWMk&enc=AZODeXwuXrdCBgbuo-r-EfPWBZ_URYJ7VWkgNi5bhhJaT5K_CO_CS-EAf-OhYoRowEvRxx1sBC2yTd4V47ZrJf9krU2HUubiuxe480owpEpIsXVaq5ejKF2gj-mlleeJXAYt6QJ99zYzaJOAVhnGqEvfrENrmbrmlmOspyzVcjTSe5nxc3Knd1ActZTNz97a-dawIAf5BRRRlVGdji1BzxsxAZBZnDBdCoxYKOfdJh8rFQ&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fnews%2Fgartner-reveals-top-10-it-security-myths-418892013%2Fwnl%3Futm_source%3Dcioworld%26utm_medium%3Demail%26utm_term%3Dwnl1%26utm_campaign%3D13Jun2013&h=DAQER7IXK&enc=AZNwd7MgyoG-kX0rXvzOQkT1dJ-tooWdpp2Zao1YyzLUzDgRasXchWGYhc3-JMXADitUuHYDt56WC9FX-l2qZOQqdaYPwSs4i72I22OTJjZNKSaLYXvX2ShBuRHAywZXMzktfedN3YcJHZxovmkpvBPner4jQNPUxvR6tPqzkhp67QmMynDDhFTlL_vnovH33PuU3St6-uClynwcNWAJh1_z_auB6Rjdt4Fbhqept7gFtg&s=1https://www.facebook.com/help/?page=209089222464503http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Farticle%2Fvalidate-dna-outsourcing-vendor-ctrl-s&h=aAQFakWMk&enc=AZONT8sp35dO-PEW-yBUkGxSsvAJw4lw5KHrSeOgJtX0DuuMGdG7iVM1_W7cJphreBcRz3ori2YQxfYh3Pvzyo53ZOhA1Gyg-gzPz1MYmqKoQAknNdTENyMkJL63bhgUtsnLTP89USbqaIO_9WLtp49mvG6T8cvMsUIJpCy2AcWOukma1lGPJaQpAUtsNRJk3-TXSjrMpixanp_y0HDGgEqWZEIvkCi99ojCsrW6dtBXcQ&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fceo-interviews%2Fmadras-cements-has-always-held-its-it-department-high-regard-dharmakrishnan-v&h=KAQE3mCOX&enc=AZMumdRKbNbeN5mufydDZqtBXU0HSVvuYzZxg3Nh_-TblAYAv4ErWwaeLja9G135ouAWoZuz2k65_14bEqfSJOJCWLPFs8-MgFXoPS6dkwigOyVZrb5WLF-3lTNxUGPF-rPlVUeNV100b1GD_er00DeGQOeaYiYrybSZ9pTdC6gk5xQcToCTnrHAkPIRiryf-cQUBtcX1dDpgbIpzJ_lndWh-n4rH-ncod5xlvYZ4GA4Ag&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Farticle%2Fwhat-can-employers-really-see-byod-smartphone-or-tablet&h=LAQGOU0-_&enc=AZMLvX6LxJM3bjYGssqfrbAByQyHAGgolqum2A0AC7En0p3LVriOl1AsykaAnnDWrKKSYD779TopehDvZgiu3bRPtBtYM_GCXptSIdebLniihcZO1qNRe-0L173jeF2HRdFCoECiZIJz4kyqTbsqOD_GbP8ixYlDR1-mJpTOf-ywF_pEL6ieTSNiwDe4jvJM1RxTA1H4oja0peNwbPsdFTKrNN1Y51mN9obPf9ksNszCuA&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fceo-interviews%2Fit-helps-vodafone-essar-help-its-customers-better&h=xAQHufKJG&enc=AZORlY_IsNe2IM9eHikag3Pex5kkckYJ2jxwvzo-esNNnbhlujZVFk5yumfv5dRXOXl9a-jmPhGYASvOfpr7nevxM6TdUc8FIj-iibn8Z7PjTJuO_qEeE3nEFErTUJx9qQfSwEQtcS2X7-8YQ4vtV0qcy3yn4xF7x4l88QdBhQt8q-NqTyVP3qdpaRN2EDgssEPopGsRZv3R1QyEKF2h1mVfY0D6Edi88XbrKzZ6t2NK9A&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fcase-study%2Fvenky-s-develops-erp-poultry-business-open-source&h=CAQExmdd_&enc=AZPORe5sLCu59yeZj1hvPxyQzcyFOrcqXgo7waSW82J2DWOcTXZ1d5sleP3UPZRkDIjQn1LC-cVI6Qqcmxsws8Z4TcXYs4wj-4gwCtwED8YK-tWU3M4fsQeA87iEY9xfmO6VzHrtIIur5cw7fFYyf1uZIneiWESEmn8xW2-NrYpyi8mAYwzErYfms2hsA4JQU06I4he_5A8imiaicTNeoZ9plk39OqfNzK79k-DvRWDawA&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Farticle%2Fdata-visualizations-converting-big-data-big-ideas&h=cAQHfTuKP&enc=AZPsDa9U_cWw7VkMwTYboB_I7m8bAb20YN1fB--AIGO-I5_9d3EgPdpdhG8AwheOFmMZ8KDMIfmDzolNqpuT1c7qLW5K8znw0suC_KIaPWkpkVTecMykVkTcqq2gYEBM7TTwVBl2coI2IUmAjjIpXODgdXobviLCaeuzzU9GGE4foPqdcDKK09-nBy2nPr3MqVPx9tGmShAzOXy28DayqjvEcV9adUla7pU2ZjCoed54mw&s=1http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.cio.in%2Fnews%2Fgartner-reveals-top-10-it-security-myths-418892013%2Fwnl%3Futm_source%3Dcioworld%26utm_medium%3Demail%26utm_term%3Dwnl1%26utm_campaign%3D13Jun2013&h=PAQFFlbIn&enc=AZPmetryD1MRSGlLEtDfWQct9_y_ssz8-oRwSjrqEf75No46esQ0yAaB8EuvFPGSfqV8AcRGrMoEkPZhiixINrqWzLilhcvjik1HGstTH2ZAqNBFa1ZcDmF5axuVI7eoY7aPh8IJHCGyTDuU3PPdJvjf6LqwiNUNUqAn24jaJgyVE1OBMAhUHSoJefu1LpFg5m4jgpH_NmBDLyj5vlYr6wqDB5BEogmVzZ7tfSLS1LUzUQ&s=1http://www.cio.in/view-top/changing-dynamics-business-dabur#linkedin_divhttp://www.cio.in/view-top/changing-dynamics-business-dabur#twitter_divhttp://www.cio.in/view-top/changing-dynamics-business-dabur#facebook_divhttps://idg.webcasting-studio.net/event/?t=NWY1ODc1YjM4ODMxNmQxOTVmMjFjMzkwODc1MTYzMDhjNDAzYTk5MA==&e=404&a=6&pt=514http://www.cio.in/cio-magazinehttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questions


3/5



fashionably colorful environment that is not alienating to non-core customers - particularly

men. The stores will be affordable and classy and will provide all the top mass-market

brands. The product mix at the stores will cover pharmacy and OTC (over the counter),

personal care,baby care, cosmetics, general merchandise and confectionery.

Beauty and wellness products are key parts of the stores, with sizeable shelf space allocated

to both leading Indian and international brands operating in this space. The new u stores

offer the entire range of beauty, health and wellness products under one roof. In the

future, we also intend to have a private label presence. Dabur India is investing Rs 140

crore into this venture, and is confident that the venture will report profits in its fourth

year.

Go to Questions

CIO: Why did Dabur outsource its entire IT infrastructure?

Amit Burman:

To ensure a constant flow of IT talent - even during phases of expansion. Since we planned

for rapid expansion, IT had a critical role to play. If we want to continue being on the leading

edge of technology, the people we need will always be in high demand. Attrition could be a

huge problem and we would not be able to maintain bench strength. But, an outsourcing

partner can.

Go to Questions

CIO: One of your strategic intents is to provide consumers with innovative

products within easy re ach. How?

Amit Burman:Dabur has initiated a program to improve distribution effectiveness. Under it, we have

organized sales teams on the lines of channel expertise (separate teams for modern trade,

grocers and chemists) in urban markets and exclusive rural teams in six focus states. Today,

the servicing needs of the industry are vastly different from what the traditional stores can

provide. The exciting new formats also open up opportunities for brand activation at the

point of purchase. The system uses vastly different and superior selling skills.

A team with appropriate skill sets has been put in place to respond to the needs of modern

trade and the results are most encouraging. The channel strategy has been devised to focus

on key segments based on strategic attractiveness and total-cost-to-serve principles. To

address the complexities posed by the rapid ramp up of modern trade, our traditional

distribution system - stockists servicing all outlets irrespective of format - was overhauled.

Since the servicing needs of these outlets are different, Dabur configured exclusive modern

trade stockists in large towns to service these stores. Direct supplies are also available to

distribution centers with formats like Cash & Carry and large national chains.

And with a company sales team, Dabur is geared to meet the servicing needs of emerging

formats. The challenges posed by the expectation of higher levels of efficiencies on shelf

availability and inventory are also being addressed by our supply-chain system. More

efficient supplychain practices like electronic order and data processing and changing

processes to facilitate e-payments, etcetera have been put into place.

Go to Questions

CIO: You are also in the food business. How does IT help manage products with

sixmonth shelf l i ves?

Amit Burman:

IT played a key role in the foods business rollout. To start with, we upgraded our IT systems

to ensure a First-In-First-Out (FIFO) policy - for both raw materials and finished foods. Then,

training programs were introduced at the stockists' level to ensure the smooth movement

of stocks.

Go to Questions

CIO: You aim to increase penetration in south India. What is your strategy?

Amit Burman:

From rechristening brands in local languages to creating special products with a local flavor

and even roping in local celebrities as brand ambassadors, Dabur India is using every

possible route to drive deeper into the south Indian market. Often, people treat India as

one big market, but the reality is that India is more like the European Union: a mix of

different cultures, languages and markets. With these initiatives, Dabur India is taking

advantage of this diversity by creating and adapting brand mixes for the south Indian

market. Here are some examples: we have rechristened Dabur Lal Dant Manjan as Dabur

Sivappu Pal Podi in Tamil Nadu.
http://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questions


4/5



Similar local brands are planned for a host of other products. The idea is to give brands a

local flavor to make them easily understandable to a Tamil speaking populace. The key is to

get brands more recognition and acceptability down south. We are also tailoring products to

suit a south Indian audience. Recognizing a south Indian consumer's want for natural

products, Dabur Herbal toothpaste was launched only in Kerala and Tamil Nadu, where it has

established itself as a niche player. An ayurvedic product called Dabur Shwaasamrit was also

launched in Karnataka and Kerala, and is successful, mainly because Shwaasamrit provides

relief from breathlessness, chronic cough, cold and bronchitis, which are common in

Karnataka and Kerala. Tailor-made television ads are also being created for south India.

These campaigns were put together after intense research revealed that the messaging to

the southern consumer needs to be more rational and needs to portray a south Indian

ambience.

So, Dabur is signing on south Indian celebrities to endorse various brands in these markets.

We have already signed on south Indian film star Khushbu to endorse our Dazzl range of

hard-surface cleaners and Genelia D'Souza as the brand ambassador for the Vatika hair care

range. With these initiatives, we are on track to expand our presence in south India.

Go to Questions

CIO: What about vi a M&As?

Amit Burman:

Dabur India is actively looking at acquisitions, both in India and in the overseas markets.

But, it is too early to talk about that.

Go to Questions

CIO: In the future, do you think natural will drive the health products industry

in India?

Amit Burman:

We are already seeing this happening. A growing number of consumers, particularly in

urban markets, are increasingly taking to healthy foods. Though it is still a largely urban

phenomenon, the consumer base for such products in on the rise. Dabur has been at the

forefront of healthy and natural products, which is one of the prime reasons for our

continued growth. In fact, we are now witnessing many MNCs trying to follow this path by

introducing natural variants of their products.

Dabur - with its portfolio of juices under the Ral and Activ brands - is already a dominant

player in the health food and drinks market. Today, Ral is India's leading packaged,

preservative-free fruit juice brand. From its launch in 1997 as India's first juice brand, today

Ral offers the largest range fruit juices. It is also first brand to create variants suited to the

Indian palate, like Litchi, Guava and Mausambi. That said, we continue to look at adding

greater value to the product by offering an even healthier version.

A step in this direction was the introduction of the Activ range a few years back. This range

does not have any added sugar. Activ also offers a range of healthy fruit variants like fruitand vegetable blends including orange-carrot, mixed fruitcucumber- spinach, etcetera. We

have also introduced vegetable juices and a fruit soya range. This last combines the taste of

fruits and the goodness of soya, which is known to be one of the best sources of vegetable

proteins. Fruit soya is targeted at health conscious consumers.

Go to Questions

CIO: Can you tell us more about Lite Bite, the new brand you are promoting?

Amit Burman:

Let me first clarify that Lite Bite Foods is not part of Dabur India. It's a distinctly separate

entity. Lite Bite is a recently established highgrowth venture focused on the food and

beverage service sector, with formats ranging from quick service restaurants (QSR), casual

dining restaurants (CDR), express outlets, to entire food-courts, with a brand portfolio of

leading international and local concepts. Lite Bite is promoted jointly by me and two others.

We recently finalized a strategic alliance with PVR Cinemas where Lite Bite will manage

their food courts, and PVR Cinemas will come on board as a Lite Bite shareholder. Lite Bitewill run outlets of many formats in a wide range of locations, not only malls, but also office

complexes, high streets, highway locations, hospitals, metros and airports. Lite Bite has also

established a joint venture with the Eat Out Group, part of Spain's leading business house

Agrolimen.

The Eat Out Group is one of Europe's leading restaurant groups with over 600 restaurants.

They own brands such as FrescCo, Pans&Company, Bocatta, and Fresh&Ready. Our venture

will invest about Rs 50 crore to establish a chain of specialty restaurants in India and mark

Eat Out's entry here. The joint venture will initially focus on launching the 'FrescCo' concept

in India. FrescCo is a restaurant chain with a distinct Mediterranean Europe heritage. It

specializes in food like salads, pastas, pizzas and soups, in a casual-dining setting. What

FrescCo offers is excellent value-for-money, thanks to its 'All You Can Eat' formula.

The venture plans are to open at least 50 restaurants in 10 years, both in commercial malls,

office complexes, high street and highways. In addition, we also plan to expand the brand
http://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questions


5/5



Pr int Email

R. MukundanMD, Tata Chemicals

R. Mukundan, MD, Tata Chemicals, says

the power and potential of IT is

strengthening its relationship with

business, and helping the company

make in-roads in the FMCG sector.

Read more

Dharmakrishnan A.V.CEO, Madras Cements

Dharmakrishnan A.V., CEO, Madras

Cements, says IT is the lifeblood of the

company as it helps forecast demand,

produce high quality products, and

enhance customer experience.

Read more

portfolio of the Indian JV and establish additional international Eat Out concepts in India. In

addition to these strategic alliances, we are in the advanced stages of finalizing tie-ups with a

number of leading local and international brands, which we will announce shortly.

Go to Questions

View all interviews

Case Studies Ar ticles Events Solution Centers Jobs News CEO Interviews White Papers Strategy Guides Videos

About CIO Subscribe to Newsletter Advertising Privacy Policy Contact Us

The IDG Network: Channelworld.in PCWorld.in ComputerWorld.in

Copyright 2005 - 2013 IDG Media Private Ltd. All rights reserved.

Reproduction in whole or in part in any form or medium without express written permission of IDG Media Pvt. Ltd. is prohibited.

latest CEO interviews
http://www.computerworld.in/http://www.pcworld.in/http://www.channelworld.in/http://www.idg.in/http://www.cio.in/content/contact-ushttp://www.cio.in/content/privacy-policyhttp://www.cio.in/content/advertisinghttp://www.cio.in/content/newsletter#http://www.cio.in/content/about-ushttp://www.cio.in/videoshttp://www.cio.in/strategyguideshttp://www.cio.in/whitepapershttp://www.cio.in/ceointerviewshttp://www.cio.in/newshttp://itjobs.cio.in/a/all-jobs/listhttp://www.cio.in/solution-centerhttp://www.cio.in/eventshttp://www.cio.in/articleshttp://www.cio.in/casestudieshttp://www.cio.in/ceointerviewshttp://www.cio.in/view-top/changing-dynamics-business-dabur#interview-questionshttp://www.cio.in/ceo-interviews/madras-cements-has-always-held-its-it-department-high-regard-dharmakrishnan-vhttp://www.cio.in/ceo-interviews/madras-cements-has-always-held-its-it-department-high-regard-dharmakrishnan-vhttp://www.cio.in/ceo-interviews/bonding-it-tata-chemicalshttp://www.cio.in/ceo-interviews/bonding-it-tata-chemicalshttp://www.cio.in/forward?path=node%2F309

CEO Interviews _ Amit Burman, Vice Chairman, Dabur India_ Changing Dynamics of Business at Dabur _...

Documents

Transcript of CEO Interviews _ Amit Burman, Vice Chairman, Dabur India_ Changing Dynamics of Business at Dabur _...