Dabur Pres Ankit Ajay Ashu

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    Ajay Anand(11069)

    Ankit Kumar(11078)

    Ashutosh Kumar Dubey (11083)

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    DABUR -THE BRAND

    Established in1884- more than 125 years of Trust &Excellence.Among Top 4 FMCG companies in India.

    World Largest in Ayurveda & Natural Healthcare.Revenue of Rs.41.1 billion and profits of Rs.5.7 in FY2010-2011Strong Brand Equity-

    Dabur is a Household BrendVatika and Real are Super brands.

    Hajmola,Real & Dabur ranked among IndiasMost Admiried Brands.

    11 Brands with sales of Rs.1 billion eachWide Distribution covering 2.8 million17 world class manufacturiong plants. Strong Overseas Presence with 30% contributin to Sales

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    Brand Rejuvenation

    With youth forming a major population of India, Dabur decidedto revamp its brand identity. Dabur associated itself withAmitabh Bachchan, Vivek Oberoi, Rani Mukherjee and VirenderSehwag for endorsements

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    Business Structure

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    Why IT initiatives

    To take the battle to its competitorswith an entry into the FMCG sector and believes IT to be an

    indispensable weapon in this warThe distribution network is the lifeline for an FMCG companyand is a greater value add in terms of IT returns thanmanufacturing

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    IT initiatives

    Dabur installed centralized SAP ERP system from 1st April2006 for all business units. It also implemented a countrywide new WAN Infrastructure for running centralized ERPsystem. Further it set up new Data Center at KCO Head

    Office.

    Supply chain Initiatives

    For better production and operation management, Daburincluded automation, debottlenecking, Kaizen and wastage

    control. It set up production units in locations providing taxholidays to reduce cost and improve efficiency.

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    Policies

    Code ofEthics andConduct

    Dabur has a well-defined policy framework.

    Whistle-Blower Policy

    Allow and encourage employees and business associates to bring tothe management notice concerns about suspected unethical behavior,malpractice, wrongful conduct, fraud, violation of policies.Ensure timely and consistent organizational response.

    Build and strengthen a culture of transparency and trust.Provide protection against victimization.

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    EVA BASED PERFORMANCE

    MEASUREMENT

    Traditional measures of corporate performance are Net ProfitMargin, Operating Profit Margin, Return on Investment (ROI),Return on Net Worth (RONW), Earning Per Share (EPS) etc

    Among these, again ROI is recognized as the most popularyardstick of overall performance.

    Economic Value Added (EVA) is advocated as a new measureof corporate performance that focuses on clear surplus incontrast to the traditionally used profit based indicators.

    EVA = NOPAT WACC X CapitalEmployed.Where, NOPAT means Net OperatingProfit before Interest and after Tax.WACC represents Weighted Average

    Cost of Capital.

    Capital Employed = Net Block+ Trading Investment + NetCurrent Assets.

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    EVA BASED PERFORMANCE

    MEASUREMENTJust earning profit is not enough, a business should earnsufficient profit to cover its cost of capital and create surplus togrow. Stated simply, any profit earned over and above the costof capital is Economic Value Added.

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    HR Initiaves

    Various training and development programs like Young ManagerDevelopment Program, Prayas, Leading and Facilitating Performance,Campus to Corpora and a Balanced scorecard approach to performanceevaluation.

    Recently, Dabur has adopted an innovative HR program of offering ESOPsto new engineering and management trainees at the time of joining. Also in2005, Dabur gave Bonus to its employees after 12 years. This boosted theemployee morale further.

    Dabur was listed as a Great Place to Work , in a survey conducted by GrowTalent & Company and Great Place to Work Institute, USA. Dabur was listedas the 10th Great Place to Work . The results were published in BusinessWorld dated February 2006.

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    PERFORMANCEAPPRAISALSYSTEM INDABUR

    INDIALIMITED

    The main objective of this performance appraisal

    system is to evaluate the performance, promote

    their employees and to arrange for

    their various training programmes if they require for

    enhancing their skills in their respective areas and in

    contribution enhancement..

    This approach is frequently referred to as.management by objectives. Management by

    objectives is a process thatconverts organization~lobjectives into individual objectives.

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    Corporate Governance?????

    Corporate governance involves a set of relationships

    between a companys management, its board, its

    shareholders and other stakeholders ..also the structure

    through which objectives of the company are set, and themeans of attaining those objectives and monitoring

    performance are determined.

    Corporate governance is a multi-faceted subject. An

    important theme is to ensure the accountability of certainindividuals in an organization through mechanisms that try

    to reduce or eliminate the principal-agent problem.

    It is a system of structuring, operating and controlling a

    company

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    Corporate Governance Dabur way

    Committed to good Corporate

    Governance benchmarked itself in

    line with global practices.

    Understands and respects its fiduciary

    role in the corporate world

    This attitude has earned recognition

    and has strengthened its bond of trust

    with stakeholders and the society atlarge.

    Has earned Corporate Governance

    Excellence award in 2005

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    Remuneration cum Compensation

    Committee Framing and implementing, on behalf of the Board and on

    behalf of the shareholders, a credible and transparent

    policy on remuneration of Executive Directors, including

    ESOP, pension rights and any compensation payment.

    Considering, approving and recommending to the Board

    changes in designation and increase in salary of the

    Executive Directors.

    Ensuring that the remuneration policy is good enough toattract, retain and motivate the Directors.

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    Shareholders/Investors Grievance

    and Share TransferCommittee

    Transfer/Transmission of shares.

    Split-up/Sub-division and Consolidation

    of shares.

    Dematerialization/ materialization of

    Shares.

    Issue of new and duplicate share

    certificates.

    Registration of Power of Attorneys,

    Probate, Letters of Transmission or

    similar other documents

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    Conclusion

    Corporate governance practices exert great influence

    on the performance of the company.

    Shareholders should ensure that the composition of

    Board of Directors is a balanced mix of independent

    directors and management appointees. This would help

    keep a check on the internal processes of the company.

    Companies which are having good governance

    practices will have good image among the investorsand public as a whole.

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    THANK YOU!!!!