Reprt Dabur
Reprt Dabur
As in case of any other functional area like marketing, production or finance, the work
personnel department has also to be planned. Planning in the personnel area is mainly
concerned with crystallizing from where the right type of people can be secured for future
anticipated vacancies.
Recruitment and Selection is the process wherein the organisation finds the best candidate
among the vast array of candidates. The function that locates the sources where from the
required human resources can be available and to attract them towards the organisation is
known as recruitment.
Selection can be defined as the process wherein the organisation has to select a small lot of
people who are useful to the organisation in terms of their capabilities and their
qualifications. The main aim of organisation at this stage is to have a well-equipped
manpower efficient enough to handle all the tasks gracefully.
This project entitled "Recruitment and Selection in Dabur India Ltd (DIL)" aims at
studying the recruitment and selection procedure undertaken at this ever growing
organisation. The project gives a brief idea as to how the whole process works. Every
organisation has different policies, at times unique and it is very rare that the policy of one
organisation matches to the policies of another organisation.
It is true that the success of any organisation depends upon the old dictum: right person
for the right job. At the same time it is all the more important to have right and tested
combination of recruitment and selection policies to attract, select and appoint a desired lot
1
and replenish it from time to time. The transformation from a family concern to FMCG
industry has tested the recruitment and selection policies and the organisation. The
sustainability and success of this living legend over hundred years has proved that the
strategies adopted by this multinational are true to its needs and requirement. DIL has a
strong work force of 2,500 employees.
DIL has succeeded over hundred years because it still follows the basic dictum and is
being guided by the vision and the age-old the principles which are followed religiously.
2
TABLE OF CONTENTS
PART - I
1. INTRODUCTION TO DABUR 5
VISION 8
PRINCIPLES 9
OVER HUNDRED YEARS OF CARING
10
CORPORATE PHILOSOPHY 13
LOCATION OF OPERATIONS 22
PART - II
2. COMPANY'S BUSINESS ACTIVITIES 23
MANUFACTURING UNITS OF DABUR 25
JOINT VENTURES 27
SUBSIDIARIES 29
DABUR PRODUCTS 31
QUALITY POLICY 37
QUALITY OBJECTIVE 39
IMPORTANT STRATEGIES ADOPTED 40
LEVEL STRUCTURE OF ORGANISATION 41
LIST OF DIRECTORS 42
ECO-FRIENDLY DABUR 43
DOMINANT BRANDS 45
BRINGING UP DABUR 46
3. WELFARE ACTIVITIES AT DABUR 49
4. INTRODUCTION 53
RECRUITMENT 56
SELECTION 60
5. RECRUITMENT AND SELECTION PROCEDURE IN 63
DABUR INDIA Ltd.
6. STATEMENT OF OBJECTIVE 65
7. RESEARCH METHODOLOGY 67
8. DATA PRESENTATION 69
9. RECOMMENDATION AND SUGGESTIONS 70
10. CONCLUSION 72
11. ANNEXURE 73
12. BIBLIOGRAPHY 77
3
INTRODUCTION TO DABUR
Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. The
founder, Dr. S.K. Burman, was a practicing allopathic doctor. At that time Malaria, Cholera
and Plague were the common diseases. He was a physician who brought ayurvedic medicines
to the masses of Bengal. Initially established as a proprietary firm for the manufacture of
chemicals and ayurvedic drugs it was later on 19th November 1930 incorporated as private
limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman and his son late Shri
P.C.Burman in the name of Dr S.K.Burman Pvt.Ltd. to expand the operations by setting up
production facilities at Garia and Narendrapur, West Bengal and Daburgram, Bihar.
Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f.
1st July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a
fresh certificate of incorporation was issued to that effect. In 1970, the bulk of manufacturing
facilities were shifted from West Bengal to Faridabad in Haryana.
In 1977, a modern automated plant was set up in Sahibabad (U.P.) for the manufacture of
Chyawanprash, Asavrishthas, Hair oil, Tooth powders, Hajmola, and other Ayurvedic
specialties. Certification for production of toiletries and food grade products was issued on
13th October 1986 by the registrar of Delhi and Haryana to the company, Dabur Private
Limited, a closely held Public Limited Company.
It was incorporated as a Private Ltd. Company in the name of Dabur (Dr. S.K. Burman)
Pvt. Ltd. From a humble beginning in 1884, a manufacture of traditional medicine in
Calcutta, Dabur has come a long way to become a multifaceted multinational, multi-product,
modern Indian corporation with a global presence. It now enjoys the distinction of being the
2nd largest FMCG Company and is praised to become a true Indian Multinational.
The main plant was set up in Sahibabad (U.P.) in 1977 for manufacturing of
Chyawanprash, hair oil, tooth powder, hajmola and other ayurvedic medicines and food
4
products etc. Dabur's main line of business is in the sphere of Health care, Personal care and
Beauty care. Its strength lies in natural and herbal preparations.
Dabur's corporate philosophy has always been ahead of its time. The founder's initial
success was mainly due to his direct main campaigns- a technique that became very popular
nearly a century later. The company was one of the earlier Indian companies to have fully
equipped R & D lab as early as in 1919. Today, the company has its own mainframes and
computers are a way of life here.
Dabur is also an ISO 9002 certified company. The certification was obtained in 1995 by
SGS YARSLEY international services Limited U.K. Dabur's revenue today exceed Rs.800
crores with plans to achieve Rs.2, 000 crores by year 2003. Dabur has 34,000 shareholders
with market capitalization of over Rs.1, 400 crores.
Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East.
It has manufacturing base in Egypt also. The company has over 4,000 employees with around
1,500 looking after sales and marketing functions.
The Indian market is being served through a transactional network of sales offices and
carrying and forwarding agents. The company has its offices in London, New York and
Moscow. Dabur products are being exported to around 50 countries. Dabur portfolio is
exceeding 500 products of FMCG and health care products.
The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to
consider the unaudited financials of the company for the first quarter that ended on June 30,
2003. Company has recorded a growth of 36 per cent in its net profit per cent growth in its
turnover during April-June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to
Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same
period.
The first quarter results should not be annualized as sales usually improve in
subsequent quarters.
5
VISION
6
PRINCIPLES
OWNERSHIP:
This is our company. We accept responsibility and accountability to meet business
needs.
PEOPLE DEVELOPMENT:
People are our most important asset. We add value through result- driven training and
we encourage rewards and excellence.
CONSUMER FOCUS:
We have superior understanding of consumer needs and develop products to fulfill their
demands.
TEAM WORK:
We work together on the principle of mutual trust and transparency in a boundary less
organization.
INNOVATION:
Continuous innovation in products and processes and is the base of our success.
7
DABUR OVER THE YEARS
More than a century ago, a young doctor started with a vision to provide innovative and
affordable health care products to Indian masses. Thus, was born an organisation today
known as Dabur India Limited. The twelve hundred crores corporate today started with a
small dispensary at Calcutta, the noble thoughts of Dr.S.K.Burman being the main source of
inspiration behind the project. From that humble beginning, the company has grown into
India’s leading manufacturer of consumer health care, personal care and food products. This
phenomenal progress has seen many milestones, some of which are mentioned below:
o 1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited.
Started from a small shop at Calcutta, he began a direct mailing system to send his
medicines to even the smallest of villages in Bengal. The brand name Dabur is
derived from the words "DA" for Daktar or doctor and "BUR" from Burman.
o 1896: As the demand for Dabur products grows, Dr. Burman felt the need for mass
production for some of his medicines. He set up a small manufacturing plant at Garhai
near Calcutta.
o Early 1900s: The next generation of Burman's take a conscious decision to enter the
Ayurvedic medicines market, as they believe that it is only through ayurveda that the
healthcare needs of poor Indians can be met.
o 1919: The search for processes to suit mass production of ayurvedic medicines
without compromising on basic ayurvedic principles lead to the setting up of the first
Research and Development laboratory at Dabur. This initiate a pain staking study of
ayurvedic medicines as mentioned in age old scriptures, their manufacturing
processes and how to utilize modern equipment to manufacture these medicines
without reducing the efficacy to manufacture these medicines without reducing the
efficacy of these drugs.
o 1940: Dabur diversifiers into personal care products with the launch of its Dabur
Amla Hair Oil. This perfumed hair oil catches the imagination of the common man
and film stars alike and becomes the largest hair oil brand in India.
o 1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded
Chyawanprash of India.
o 1956: Dabur buys its first computer. Accounts and stock keeping are one of the first
operations to be computerized.
o 1970: Dabur expands its personal care portfolio by adding oral care products. Dabur
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Lal Dant Manjan is launched and captures the Indian rural market.
o 1972: Dabur shifts base to Delhi from Calcutta. Starts production from a hired
manufacturing facility at Faridabad.
o 1978: Dabur launches the Hajmola tablets. This is the first time that a classical
ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.
o 1984: The Dabur brand turns 100 but is still young enough to experiment with new
offerings in the market.
o 1986: Dabur becomes a public Limited company through reverse merger with
Vidogum Limited, and is re-christened Dabur India Limited.
o 1989: Hajmola Candy is launched and captures the imagination of children and
establishes a large market share.
o 1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing
and marketing confectionery items such as bubble gums in India.
o 1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.
o 1994: Dabur India Limited comes out with its first public issued at a premium of
Rs.85 per share. The issue is subscribed over 21 times.
o 1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch this
product. The Dabur Research Foundation develops the unique eco-friendly process of
extracting the drug from the leaves of the Asian Yew Tree.
o 1995: Dabur enters into a joint venture with Osem of Israel for food and
Bongrain of France for cheese other dairy products.
o 1996: Dabur launches Real fruit juices, which heralds the company's entry into the
processed food market.
o 1997: The foods division is created, compromising of real fruit juices and Homemade
cooking paste to form the core of this division's product portfolio.
9
o 1998: The Burman family hands over the reins of the company to a professional, Mr.
Ninu Khanna joins Dabur, as the Chief Executive Officer.
o 2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple
active, orange active, homemade pappad, Vatika- an anti-dandruff shampoo.
o 2002: New launches homemade coconut milk (in south), Tang, Tomato puree, Vatika
light.
o 2003: Dabur achieves Rs.1,232 crores turnover mark with an increase of 6 per cent.
Turnover of FMCG reaches to Rs l048.5crores, which shows a profit of Rs. 72 crores.
Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores.
CORPORATE PHILOSOPHY:-
Knowledge is the key to growth in today’s world .Whatever the industry , it is the
knowledge which provides cutting edge to individual and organizations. For more than a
century nature has been a rich source of knowledge for Dabur. Nature has not only given
us the ingredients for all our products but has also taught us how to create a harmony within
and without the organization. Nature has inspired us in all our acts. Ayurveda the science of
life is based on principles of nature. All Ayurvedic preparations have their ingredients
derived from nature. Dabur has converted the healing properties of natural ingredients and
the age old knowledge of Ayurveda into contemporary healthcare products to alleviate
health problems of its consumers .
Dabur is committed to expand the reach of this age old knowledge of Ayurveda and
nature through web. Through web, we aim to overcome the physical boundaries to take
Ayurvedic way of life to global frontiers. Dabur India limited understands its responsibility
as a corporate house. We have not only set our sight on increasing turnover and profitability
of the company but also on propagating Ayurvedic - the India system of medicine.
VISION
“Dedicated to the health and well being of every household.”
Dabur is a company with a set of established business values , which direct its functioning
as well as all its operations . In this ,Dabur is guided by the words of its founder Dr.
S.K.Burman “What is that life worth that cannot give comfort to others.” The company
offers its consumers , products to suit their needs and give them good value for money .The
10
company is committed to follow the ethical practices in doing business. At Dabur, nature
acts as not only the source of raw material but also an inspiration and the company is
committed to protect the ecological balance.
PRINCIPLES
OWNERSHIP
This is our company .We accept personal responsibility and accountability to meet
business needs.
We all are leaders in our area of responsibility , with a deep commitment to deliver the
results .We are determined to be the best at doing what matters the most.
PEOPLE DEVELOPMENT
People are our most important asset .We add value through result driven training and we
encourage and reward excellence .
CONSUMER FOCUS
We have superior understanding of consumer needs and develop products to fulfill them
better .
TEAM WORK
We work together on the principle of mutual trust and transparency in a boundary less
organization.
INNOVATION
Continuous innovation in the products and the processes is the basis of our success.
SOCIAL ISSUES :
“What is that life worth which cannot bring comfort to others.” These words of
Dr.S.K.Burman have inspired generations of Dabur . Keeping these golden words in mind,
Sundesh or the Sustainable Development Society was set up to carry out welfare activities
aimed at improving the quality of life of the rural people in its area of operation. This society
is given complete financial and managerial support by Dabur India limited.
11
programmes for children, maintenance of family health records, anti-natal check ups, pulse
polio programmes and health awareness meeting for women on topics such as family
planning, ante-natal care, post-natal care , the importance of vaccination , baby care and
AIDS prevention.
Restructuring moves
Despite its range, investors have been wary of investing in this company because of its
unrelated diversifications and a family-run business. To counter this, Dabur undertook a
massive restructuring exercise about a couple of years ago, based on McKinsey
recommendations to meet the growing competition and to focus only on core competencies
and to gear up as the leading FMCG player in the country.
As a result, it decided to spin off non-core businesses and conduct an all-new professional
management team. Other positive actions include rejuvenating the sales and distribution set
up, laying greater focus on brand extensions rather than on new brand creation and adding
value to products.
It has discontinued its low margin businesses like merchant exports, generic drugs and herbal
intermediates. The company has also exited from two JVs namely confectionery JV with
General DE Confiteria India Limited and biscuits JV, Excelsia Foods Limited. The company
has also hived off its foods business into a separate subsidiary, Dabur Foods Limited. During
year 2000, the company exited from Ayurvet Herbal Veterinary drugs. It sold off its entire
stake in Excelsia JV foods with Nestlé for manufacturing biscuits for a nominal value of Rs.
10. Dabur is also consolidating and rationalizing its brand portfolio. It has discontinued the
number of small and marginal brands in personal care and healthcare products. It also
decided to wind up its finance businesses. Though the company exited from beauty products
business, with increasing market size and higher margins the company has revived its
interests in re-entering the business. In the year 1999, Dabur India Ltd has started
implementing a BaaN Enterprise Resource Planning (ERP) to cut the cost of inventory, which
is a major component of its overall costs. Because of its high inventory levels, it has to bear
high holding costs. It seems that all these initiatives are being paid off, and the analysts are
optimistic about the current year.
Dabur has also restructured its board. Due to this, six directors, namely AC Burman, Sidharth
Burman, Air Chief Marshal NC Suri (Retd.), SM Datta, Raja Vijay Karan, and Ashok
Goenka have resigned from the directorship of the company and the board has accepted the
same with effect from April 1, 2002. Further, VC Burman and Pradip Burman have also
resigned from the whole-time directorship of the company, which has also been accepted by
the board; however, they will continue as
non-executive directors of the company. The company has completed its restructuring
process and has exited non-core businesses. With the homespun philosophy that drives
Dabur, it is now gearing up to face the challenge to an MNC onslaught.
ORG figures put Dabur's pharmaceuticals division as the second largest growing
pharmaceutical company in India with a secondary sales growth of 37.2 percent and a mind-
boggling 29 New Chemical Entities (NCEs) in pipeline. Analysts say, its pharma division is
full of potential. In oncology segment, it is No. 1 in India. It is working in close co-operation
with DRDO, CSIR and top universities in R&D. It is the first company in India to have
developed the anti-cancer intermediary DAB-10 and its associated drug paclitaxel (Taxol).
12
DABUR INDIA LTD
Dabur is the fourth 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.1163 crores with powerful brands like
Amla, Vatika, Hajmola & Chyawanprash, Lal Dant Manjan,etc. Dabur India Limited has
marked its presence with some very significant achievements and today commands a market
leadership status. Their story of success is based on dedication to nature, corporate and
process hygiene, dynamic leadership and commitment to their partners and stakeholders. The
results of their policies and initiatives speak for themselves.
Based on the products manufactured by the company entire business can be divided into 5
divisions, namely Family Products Division, Health Care Division, Ayurvedic Specialties
Division, Pharmaceutical division and Exports division. Each of these divisions performed
well during FY00. The family products division grew by 16%yoy while Health Care products
division recorded a growth of 12%. Ayurvedic specialties division grew by 27%yoy while
pharmaceutical division grew by 20%yoy.
o Leading consumer goods company in India with 4th largest turnover of Rs.1163.2
Crore (FY02)
o 3 major strategic business units (SBU) - Family Products Division (FPD), Health
Care Products Division (HCPD) and Dabur Ayurvedic Specialities (DASL)
o 5 Subsidiary Group companies - Dabur Foods, Dabur Nepal, Dabur Oncology,
Dabur Pharma and Dabur Egypt
o 13 ultra-modern manufacturing units spread across 4 countries
o Products marketed in over 50 countries
o Wide and deep market penetration with 47 C&F agents, more than 5000 distributors
and over 1.5 million retail outlets all over India
DABUR SUBSIDIARIES:
With a basket including personal care, health care and food products, Dabur India Limited
has set up subsidiary Group Companies across the world that can manage its businesses more
efficiently. Given the vast range of products, sourcing, production and marketing have been
divested to five leading group companies that conduct their operations independently:
13
Dabur Nepal was the first manufacturing base overseas for Dabur group. The company is
today the leading exporter in Nepal and the third largest and the most modern manufacturing
base for Dabur. Dabur Nepal is today involved in promoting cultivation of herbs and
apiculture activities in Nepal. The company has set up state of art greenhouse at Banepa for
developing saplings for 20 medicinal plants. Dabur Nepal has also set up an apiculture center
for promoting Bee-keeping activity in Nepal and developing queen bees and bee colonies for
export.
This subsidiary of Dabur Ltd is manufacturing anti-cancer formulations for European market.
The company has set up manufacturing base near London to operate in that market.
o Leadership in Ayurvedic and herbal products market with highly popular brands
o Dabur Chyawanprash ,the largest selling Ayurvedic medicine with 65% (Rs.127
crore) market share.
o Charted high growth with 15% in 2001.
o Dabur Chyawanprash and Hajmola account for sales of over Rs.100 crore each
o Leader in herbal digestives with 90% market share
o Hajmola tablets in command with 75% market share of digestive tablets category .
o Dabur Lal Tail tops baby massage oil market with 35% of total share
14
o Has more than 250 products sold through prescriptions as well as over the counter
o Major categories in traditional formulations include:
-AsavArishtas,RasRasayanas,Churnas, Medicated Oils
o Proprietary Ayurvedic medicines developed by Dabur include:
-NatureCareIsabgol,Madhuvaani, Trifgol
o Division also works for promotion of Ayurveda through organised community of
traditional practitioners and developing fresh batches of students
Hair care portfolio recorded steady performance. Dabur Amla Hair Oil maintained its market
share in the face of stiff competition in the market. The brand’s advertising strategy was
reformulated around true nourishment arising from the inherent features of ‘Amla’. This
established a better value for money proposition for the brand.
Vatika brand continued its good performance with high growth coming from the Vatika
shampoo consists of Vatika Henna cream conditioning shampoo and Vatika Anit-Dandruff
shampoo.
In the oral care portfolio, Dabur Lal Dant Manjan performed well in spite of stagnant
toothpowder market. Binaca Fresh Toothpowder which was introduced last year perfomed
satisfactorily.
In skin care segment, Dabur Gulabari recorded another year of high growth and crossed the
Rs 10 crore mark.
The packaging of Dabur Honey was changed to a square glass bottle giving it a unique and
contemporary appearance. Besides having better consumer appeal, this packaging is also
expected to reduce the incidence of counterfeits for the brand.
PRODUCT RANGE:
Family product division comprises of :
o HAIR CARE
o ORAL CARE
o SKIN CARE
FOODS
HAIR CARE:
Strong presence in hair oils market with 27% market share with focus on value added
categories.
Brand Range:
o Vatika hair oil
15
o Vatika henna cream conditioning shampoo
o Vatika anti-dandruff shampoo
o Himsagar cooling oil
o Amla hair oil
o Jasmine hair oil
o Amla lite hair oil
o Special hair oil
o Anmol pure coconut oil
ORAL CARE:
Strong presence in toothpowder category with 27% market share in powder segment.
Brand Range:
o Dabur Red tooth powder
o Binaca fresh tooth powder and tooth brushes
o Dabur Herbal toothpaste
SKIN CARE:
Under skin care Dabur Gulabari is the only brand of rose water which is positioned as skin
toner.
FOODS :
Strategic positioning of Honey as food product, leading to market leadership (over 40%) in
branded honey market .
16
CORPORATE PHILOSOPHY
Knowledge is the key to growth in today's world. Whatever be the industry, it is the
knowledge, which provides cutting edge to individual and organisations. For more than a
century nature has been a rich source of knowledge for DABUR. Nature has not only gives it
the ingredients for all its products but also has taught it how to create a harmony within and
outside the organisation. Nature has inspired DABUR in all its acts. Ayurveda - the science
of life is based on principles of nature. All ayurvedic preparation has their ingredients derived
from nature. Dabur has converted the healing properties of natural ingredients and the age-old
knowledge of ayurveda into contemporary health care to eliminate health problems of its
consumers.
Dabur is committed to expand the reach of its age-old knowledge of ayurveda and Nature
through web. Through web the aim is to overcome the physical boundaries to take ayurvedic
way of life to global frontiers. Dabur India limited understands its responsibility as a
corporate house. It has not only set a sight on increasing turnover and profitability of the
company but also on propagating Ayurveda - The Indian System of Medicine.
17
LOCATION OF OPERATIONS
OFFICES:
Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar),
Ahemadabad (Gujarat), Indore (M.P.), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad
(A.P.), Chennai (TamilNadu), Bangalore (Kamatka), Kochi (Kerela), Guwahati (Assam),
Kathmandu (Nepal), Russia, U.K.
FACTORY:
Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani&
Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.
C&Fa:
Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.), Dehradun
(U.P.), Lucknow (UP), Rachi, Patna (Bihar), Guwahati (Assam), Calcutta (West Bengal),
Jaipur (Rajasthan), Ahemadabad (Gujarat), lndore (M.P.) Raipur (M.P.), Bhubaneshwar
(Orissa), Cuttak (Orissa), Mumbai (Maharashtra), Hydrabad
(A.P.), Chennai (TamilNadu), Bangalore (Karnataka), Cochin (Kerela).
18
THE COMPANY BUSINESS ACTIVITIES
COMPRISES OF:
HEALTH CARE PRODUCTS: Markets a range of OTC health care: products based on
ayurveda, some of its products like Chyawanprash, Hajmola, Hajmola Candy, Pudinhara are
market leaders with over 65 per cent market share in their respective categories.
PERSONAL CARE PRODUCTS: It includes hair care, oral care and honey. Dabur Amla
as a brand has made its mark beyond India; it is a leading hair oil brand in Middle East and
Africa. Other well-known brands are Vatika, Dabur Lal Dant Manjan.
ONCOLOGY: The formidable range includes brands such as Intel, Docetaxel that were
manufactured in India for the first time by Dabur. The company is a market leader in this
category in India and plans to establish itself as a general Oncology player in selective global
market.
FOODS DIVISION: One of the youngest divisions of the company markets a range of
sauces, ethnic pastes and foods. Real fruit juices gave Indian consumer for the first time, fruit
juices with nothing artificial, no preservatives, no colour and no flavors added. Launched two
years back, the range includes Real Juices and cooking pastes under the brand name Home
Made.
NATURAL GUMS: This division manufactures and process Guar gums, Gum Karaya,
tamarind based gums and psyllium husk. The division produces a range of industrial and
grade natural gums to meet the customer specifications.
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MANUFACTURING UNITS OF DABUR
Sahibabad unit1: Group generating a turnover of over Rs.250 crores. The key
product line of this unit includes Asavs, Hajmo1a, Hingoli, Oncology medicines, Dabur Amla
hair oil, Chyawanprash and Ashokarisht. The unit operated on these shifts as well as a
general shift, with product lines running for one, two or three shifts according to the market
demand and supply chain requirell1ents.
Sahibabad unit 2: Recently established for manufacturing and packing Dabur hair oil in Pet
Bottles.
Baddi unit 1: The most modern plant for manufacturing ayurvedic medicines and honey, this
unit was built following stringent guideline for pharmaceutical units.
Alwar: This unit manufactures food and print grade Natural gums, Psyllium Husk and
Ayurvedic Veterinary products.
Narendrapur: One of Dabur oldest plant. It produces Ayurvedic medicines and Honey.
Kalyani: This bulk drugs unit was bought from Pfizer and upgraded to manufacture
oncology bu1k drugs of critical importance.
20
Katni: Set up in the heart of Amla producing belt of India. This unit manufactures Amla
pishi, an essential ingredient in Dabur Chyawanprash.
Birgunj, Nepal: Dabur's first overseas manufacturing unit. It is one of the most important
besides Sahibabad and Baddi. This modern manufacturing unit churns out Ayurvedic
Medicines, Oral Care and Hair Care Products, Honey and Fruit Juices. It also has the facility
to process leaves of the Asian Yew Tree to extract Paclitaxel, an important part of all anti-
cancer products.
Egypt: This part was established to serve Saudi Arabia and the fast growing African market.
It manufactures Hair and Skin Care and Food products.
21
JOINT VENTURES
Dabur International Limited: Dabur has also collaborated with Bongrain of France for the
manufacture and marketing of speciality cheese and other Dairy Products. This joint venture
company has already made its presence felt in the Indian cheese market through the launch of
processed cheese under the brand name Lebon, and a specialty cheese under the brand name
Delicieux.
SUBSIDIARIES
Dabur has six subsidiary units, which come under the umbrella of the Dabur India
Organisation. These are:
Dabur Foods Limited: Dabur Foods Limited, a 100 per cent subsidiary of Dabur India
Limited, is spearheading Dabur's foray into food processing industry. The company, set up in
April 1999,is marketing a range of fruits juices under the brand name Real, Homemade
Cooking Paste and Sauces and Lemoneez -- lemon juice. Dabur was the first company in
India to introduce fruit juices in packaged form without any artificial additive. Real is today
the market leader in this category with more than 50 per cent market share. Homemade
cooking paste is the only national brand in this category. Lemoneez is the only product in its
category available in unique drop and trickle pack and uniquely shaped tabletop pack.
Dabur Nepal Private Limited: Dabur Nepal was the first manufacturing base overseas for
Dabur group. The company is today the leading exporter of Nepal and the third largest and
most modern manufacturing base for Dabur. Dabur Nepal is today involved in promoting
cultivation of herbs and apiculture activities in Nepal. The Company has set up state of
the art greenhouse at Banepa for developing sampling for 20 medicinal plants. Dabur Nepal
has also set up an Apiculture center for promoting bee-keeping activity in Nepal and
developing queen bee colonies for exports.
Dabur Egypt Limited: Dabur Egypt is group's gateway to Africa. This manufacturing base
set up a couple of years back to cater to the demands of Middle East and African market is
22
producing Hair Care, Skin Care Products and foods.
Dabur oncology PIc: Set up recently in UK, this subsidiary of Dabur India Limited will be
manufacturing anti-cancer formulations for European market. The company is in the process
of setting up manufacturing base near London and is expected to start operation from year
2001.
Herbal health care is an area where Dabur Research Foundation has made immense
contribution by doing research and development work using modern pharmaceutical
protocols.
23
OTHER ASSOCIATE COMPANIES OF DIL
o REROCK LIMITED.
24
COLLABORATIONS
Dabur Foods Limited: 100% subsidiaries (taking care of all the food products)
25
DABUR PRODUCTS
A vast array of products touching the lives of almost every individual, from an infant
to a grand old man, from poor to rich that's how the Dabur range of health personal care and
food products could be best explained. Today Dabur trust has travelled beyond the
boundaries of India and is available in more than 50 countries worldwide.
AYURVEDIC SPECIALITIES
Asav Arishtas: These are medicated decoctions with self-generated alcohol contents.
Churnas: These are finely ground medicinal powders used to treat a variety of ailments
ranging from digestive problems to cough and fever.
Ras Rasayanas: Preparations containing mineral drugs as main ingredients are called Ras
Rasayanas.
Medicated oil: The oils boiled along with certain prescribed drugs are known as medicated
oils. These oils retain the curative properties of herbs and are used for injunction and
massage.
PHARMACEUTICALS
Branded Pharmaceuticals: It includes a range of natural ethical products like New Livfit,
Honitus, Uigeletc and a range of contrast media and gynecological.
Oncology: This wide and formidable range includes brands such as Intaxel, Docetaxel and
Topotecan, all of which were manufactured for the first time in India by Dabur. Little wonder
then, that Dabur is the undisputed market leader in this category in India and has plans to
26
establish itself as a generic oncology player in selected global market. Bulk drugs and
Chemicals-this range consists primarily oncology category. Healthcare is one of the biggest
and the oldest divisions of Dabur with a wide range of OTC healthcare products. It comprises
of:
DIGESTIVES
Hajmola Tablets: Hajmola tablets are the first classical ayurvedic product to be
branded and positioned as fun-filled products with medicinal properties. It finds
mention in ayurvedic scriptures as Kshudhavardhak bati & was branded as
Hajmola, a name derived from Hajma, which means digestive in Urdu. It is
available in regular & tamarind flavors.
Pudin Hara: One of the oldest products in Dabur portfolio, Pudin Hara is
available in liquid as well as capsule form. It has a special combination of mint
oils and cures gastric problems without any side effects. The company has
added effervescent powder with goodness of mint for gas and acidity and named
it Pudin Hara G.
Hingoli: Asafetida or Hing is mentioned in Ayurveda as an effective aid in
digestion, and is used a lot in Indian cooking. Dabur's Hingoli has all the
goodness of asafetida & other herbs.
27
CHILDCARE PRODUCT
Dabur Lal tail: The largest baby massage oil in India. It has the goodness of herbs, which
helps in strengthening the bones of infants.
Dabur Janam Ghutti: This Ayurvedic preparation helps in strengthening the digestive
system of new ones.
Efarelle comfort:
An herbal medicine in self-gel capsule form to overcome abdominal pain during PMS. A
combination of natural oils this formulation gives immediate relief from pain without any
side effects.
The largest division in terms of sales, the Family Product Division of Dabur has in its
portfolio- hair care and skin care products, oral care and food product like Honey.
Dabur is the leader in hair care products in India and has covered almost all the
categories of hair oils.
Dabur Amla Hair Oil: As a brand has made its mark beyond India and is a leading hair
oil brand in middle East and Africa. A perfumed heavy hair oil, it is Dabur's largest brands.
Dabur Special Hair Oil: It is light hair oil that combines the natural hair care properties
of lemon and hibiscus.
Vatika: The fastest growing brand in India, Vatika has single-handedly created an
28
altogether new category of herbal enriched natural oils. The Vatika range also includes an
herbal shampoo, which has made its mark in the very fast year of its launch in the
competitive shampoo market of India. The company has recently launched Vatika Anti-
Dandruff Shampoo having herbal ingredients to fight the problem of Dandruff.
Gulabari: Rose water derived from best of Indian roses makes the skin supple and glowing.
ORAL CARE
Dabur Lal Dant Manjan: It is the second largest brand of India and the largest in coloured
tooth powder category. This herbal tooth powder is very popular in rural parts of India.
Binaca Tooth Brushes: After having acquired this dormant brand a few years back, Dabur
launched toothbrushes under this umbrella. There are plans to launch other oral care products
under the Binaca brand.
Dabur Honey: When repositioned in 1993, it totally changed the perception of Indian
consumers. Launched over two years back Dabur food range include juices under the brand
name Real & cooking paste under the brand name Homemade.
Dabur was the first company India to introduced fruit juices in packaged form without any
artificial additives. Real is today the market leader in this category with more than 50 per cent
market share. Homemade cooking paste is the only national brand in this category. Lemoneez
is the only product in its category available in unique pack & uniquely shaped tabletop pack.
29
QUALITY POLICY
The management is fully committed to quality and ensures all resources to accomplish this
task. Dabur has been on steep path for few years. Its sales turnover has increased from Rs.530
crores in 1995 to Rs.1166 crores in 2000-01.
In 1999-2000, overall growth of 13.5 per cent was recorded in sales (Rs.1000 crores plus)
with Family Product Division recording a growth of--15.85 per cent, Health Care Division-
12.3 per cent, Ayurvedic Specialties Division -27 per cent and Pharmaceuticals Division- 20
per cent. Exports recorded a growth of 11 per cent in 1999-2000,amounting to Rs.114.16
crores. The major contributions of growth were herbal products, bulk drugs & anti-cancer
formulations. Gross margin showed an improvement of 4 per cent and net profit amounted to
Rs.77 crores.
In 2000-01,sales turnover had recorded a growth of 12 per cent, amounting to 116.5 crores
and net profit had soured by 39.2 per cent amounting to Rs.78.5 crores. Sales turnover in light
of such growth path has been targeted for Rs 2000 crores in 2003-04.
The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to
consider the unaudited financials of the company for the first quarter that ended on June 30,
2003. Company has recorded a growth of 36 per cent in its net profit per cent growth in its
turnover during April-June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to
Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same
period.
The first quarter results should not be annualized as sales usually improves in
subsequent quarters.
30
QUALITY OBJECTIVES
o To focus on customers successfully and to strive to meet their needs and
requirements.
o To manufacture effective health care products at competitive prices and to improver
the Quality of Life of common masses.
o To implement and emphasise on systems to ensure prevention of errors rather than
detection of errors.
o To ensure global competitiveness by striving to achieve Current Good Manufacturing
Practices (CGMP).
o To ensure safety in all operations and to follow the systems in all areas of operations.
o To continually train people to build up and upgrade skills and expertise and to involve
them to become committed to the quality process.
o To reduce wastages within the organisation and increase productivity.
31
IMPORTANT STRATEGIES ADOPTED
32
LEVEL STRUCTURE OF ORGANISATION
Vice President
General Manager
Senior Manager
Manager
Assistant Manager
Officer
Assistant Officer
Supervisor/Chemist
Mechanic/Junior Chemist
Junior Mechanic
Workers
33
MANAGEMENT, DIRECTORS AND BANKERS
LIST OF DIRECTORS
DESIGNATION NAME
34
BANKERS
Punjab National Bank, ANZ Grendlays Bank Ltd., American Express Bank Ltd, The Hong
Kong &Shengai Banking Corp. Ltd., State Bank Of India, Deutsche Bank AG, ABN Amro
Bank NV, Citibank NA, United Bank Of India.
ECO-FRIENDLY DABUR
Dabur is committed to maintaining the ecological balance. It understands the need for a
healthy and eco-friendly environment for the existence living beings. The company's
reforestation program aims at planting medicinal herbs, plants and trees in the Himalayan
range extending in to Nepal. An in-house tissue culture program actively supports this
exercise.
35
PERSONNEL DEVELOPMENT IN DABUR
The above functions are grouped under different General Managers/Deputy General
Managers. These executives provide support to Vice President (HR) on different issues,
which arise in Headquarter/regional offices and field. Vice President (HR) has the
responsibility of keeping the Board of Directors informed on the above mentioned personnel
activities and also on Industrial Relations. In addition to this, he is also expected up date
senior officials in their respective areas.
36
DOMINANT BRANDS
o Amla Hair Oil
o Vatika Hair Oil
o Red Tooth Powder
o Chyawanprash
o Hajmola Tablets
o Asavs
o Hajmola Candy
o Real Fruit Juice
o Honey
o Pudin Hara
37
BRINGING UP DABUR
Dabur has made a mark and created a space for itself while catering to the needs of the
Indian customers. It fulfills all their requirements while assuring the quality product. Asking
about the name of the five largest FMCG companies in India one is likely to dash of one of
that own desi -sounding brands like Chyawanprash, Vatika, Hajmola etc. This is the stand of
Dabur that it has acquired over the years. Dabur India Ltd. is the India's fourth largest FMCG
Company, having a turnover in fiscal 2000-01 at Rs.1,167 Crores, ahead of big and mighty
multinationals such as Proctor & Gamble, Rickitt and Coloman, Johnson & Johnson.
The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to
consider the unaudited financials of the company for the first quarter that ended on June 30,
2003. Company has recorded a growth of 36 per cent in its net profit per cent growth in its
turnover during April-June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to
Rs 300 crore while the net profit has increased 11.5 crore to Rs 16 crore during the same
period.
The first quarter results should not be annualized as sales usually improve in
subsequent quarters.
However, most of its turnover comes from two divisions -Family Product Division (FPD),
accounting for 40 percent, and secondly, Health Care Division (HCD), which accounts for 30
per cent. FPD is Dabur's biggest, having the biggest product -Dabur Amla Hair Oil, and a
brand of Rs.160 Crores in fiscal 1999-2000.The strategies in the hair care market emphasis
brand extension. It plans to launch two new products, Amla light and Vatika light over the
next few months.
A separate company, Dabur Foods, looks after food products such as real fruit juice and
homemade of pastes. Dabur sees a lot of potential in the "real" brand-currently Rs.30 crores
brand, which claims 3 per cent market share.
38
Two another divisions of Dabur, Ayurvedic specialties, and Pharmaceuticals, constitute 8 per
cent and 7 per cent respectively of its turnover.
The Pharmaceuticals division is internally considered of great promise with the potential of
producing safe medicines much required by mankind. Its most promising product is anti-
cancer drug, Intaxel, which is prepared of ingredients from the Himalayan Yew Tree.
Dabur Amla, which is derived from vegetables and minerals, has an 80 per cent market
share in the heavy perfume hair oil segment. The other leading brand in the Hair Care
Division, Dabur Vatika shampoo was launched at the end of 1998.In the
fiscal year 1999-2000,it was Rs.2 crores brand with a 30 per cent market share of Rs.75
crores herbal shampoo market.
All the products of Dabur are prepared from natural extracts; they are pure and nutrition.
Dabur's brand offers products both for fun or health; Dabur has a brand to match to the
demands of majority of cross-section of the people across various market segments, different
cultures and also tries well to cater to the global demands.
39
BRAND PORTFOLIO STRENGTH
The products offered by Dabur are unique thus attracting many consumers.
The brands are strongly enriched in traditional usage and habits.
The brands are prepared in active collaboration with the mother nature and
Dabur is also having right consideration that its products do not cause any harm
to the environment thus takes necessary steps.
The products offer immense potential for growth and extension.
40
WELFARE ACTIVITIES AT DABUR
IT'S NOT ALL WORK AND NO PLAY: Dabur does not expect its employees to
work all day long because the work gets monotonous, resulting decrease in the
efficiency. Hence, Dabur has formed Dabur Cricket Club and also provides the
facilities for indoor games like table tennis.
MEDICAL ATTENTION: At Sahibabad Factory, two part time doctors and two full
time nurses are available round the clock to ensure health and safety of workers.
STAFF BUSES: The organisation provides the facility of buses to its employees to
help in easy commutation.
MESS FACILITIES: The Company provides the facility of mess to its workers as
well as staff. A contractor manages it proper hygienic conditions are maintained.
Employees of Grade V and above use the Executive Mess.
41
POST OFFICE SALARY SAVING SCHEME: Under this scheme, employees and
their family members can open a recurring deposit account with Bharat nagar Post
Office.
CHUNNI LAL MEDICAL TRUST: Dabur rightly believes in following the path of
its founder-Dr.S.K.Burman-to serve the poor and the needy. The Chunni Lal Trust
was established to achieve this goal.
PARKING FACILITY: There are separate parking space for cars/scooters and
motor cycles/cycles and that too free of cost.
LONG SERVICE AWARDS: Employees belonging to grade I &IX, who have put
in 10 years of service with the company are given Meritorious Services Award
Certificate along with a Titan wrist watch and on completion of 25 years of service,
they are given 4 silver glasses along with the certificate.
42
JAPANESE CONCEPT FOLLOWED IN DABUR 5s….
is a participation programme.
It is very effective approach to improving our
work environment and total quality it
becomes a base for continuous in the
improvement in
the organisation.
KAIZEN
43
HUMAN RESOURCE FUNCTIONS
Performance Appraisal.
Security.
Public Relations.
Industrial Relations.
44
HUMAN RESOURCE PROCESS IN
ORGANISATIONS
45
HUMAN RESOURCE DEPARTMENT
Unit Head
Additional General
Manager-Corporate HR &
IR
Deputy Manager-HR
Security
Executive
Assistant-HR
Housekeeping
General
Administration
46
RECRUITMENT
Recruitment and selection are the most important functions in an organisation because
with the help of these functions the management selects the best available candidate from a
batch of them. The organisations, in this growing competitive world, need to have the best of
the manpower so as to have an edge over its competitives.
Anticipated.
Unexpected.
Planned need arise from changes in the organisation and retirement policy. These occur due
the expected changes in the organisation so the management can make a proper policy for it.
Anticipated need refer to the movements in personnel which an organisation can predict by
studying the trends in the internal and external environments.
47
FEATURES
Recruitment is a process or a series of activities rather than a single event.
It is a linking activity as it brings together the employers and employees.
It is positive process because in this activity the employers want to have the maximum
number of job seekers so as to have a wider scope for choice ultimately leading in
spotting right persons for job.
It is an important function as it makes it possible to acquire the number and type of
persons required for the effective functioning of the organisation.
It is an on going function in all the organisations, but the volume and nature of
recruitment varies with the size, nature and environment of the organisation.
It is a complex process because a number of factors affect it --the nature of the job
offered, image of the organisation, organisational policies, working conditions etc.
48
SOURCES OF RECRUITMENT:
The various sources of recruitment are -
Press advertisements.
Campus Interviews.
Placement Agencies.
Recommendations.
Recruitment at factory gate.
Employment Exchanges.
During my short stint at DIL, it was observed that the recruitment need of DIL is
diversified. It needs persons who have knowledge of use, processing of natural
ingredients of number of varied products, technical know-how of latest industrial
technical knowledge, and computer applications to pharmaceutical industry to manual
workers. The importance of the process could be understood that the present work force
of DIL is 2,500 employees. Hence, the recruitment and selection procedure should match
the complexities of the need and at the same should commensurate with the complex need
of the organisation.
49
SELECTION
Selection is the process of choosing the best candidate out of the all the applicants. In this
process, relevant information about the applicants is collected through a series of steps so as
to evaluate their suitability for the job to be filled.
It is the process of matching the qualifications with those required for the job so that the
candidate can be entrusted with the task that matches with his credibility.
It is a process of weeding out unsuitable candidates and finally identifying the most suitable
candidates.
This process divides the candidates into two categories-the suitable ones and the unsuitable
ones. The suitable people prove to be the asset for the organisation. Selection is a negative
process because in this process the management tries to minimise the number of people at
each step so that the final decision can be in the light of all the factors and at the end of it best
candidate is selected. Selected candidate the has to pass through the following stages-
Preliminary Interview.
Application Form.
Selection Test.
Selection Interview.
Physical Examination.
Reference Check.
Final Approval.
Employment.
Preliminary Interview is the initial screening done to weed out the undesirable
candidates. This is mainly a sorting process in which the prospective candidates are given the
necessary information about the nature of the job and the organisation. Necessary information
about the candidate is also taken. If the candidate is found suitable then he is selected for
further screening else he is dropped. This stage saves the time and effort of both the company
and the candidate. It avoids unnecessary waiting for the candidate and waste of money for
further processing of an unsuitable candidate.
50
Application Form is a traditional and widely used device for collecting information
from candidates. This form asks the candidates to fill up the necessary information regarding
their basic information like name, address, references, date of birth, marital status,
educational qualifications, experience, salary structure in previous organisation and other
such information. This form is of great help because the scrutiny of this form helps to weed
out candidate who are lacking in education, experience or any other criterion provided by the
organisation. It also helps in formulation of questions, which will be asked in the interview.
These forms can also be stored for future references thus maintaining a databank of the
applicants.
Selection Tests are being increasingly used in employee selection. Tests are sample of
some aspect of an individual's attitudes, behaviour and performance. It also provides a
systematic basis for comparing two or more persons. The tests help to reduce bias in selection
by serving as a supplementary screening device. These are also helpful in better matching of
candidate and the job. These reveal the qualifications, which remain covered in application
form and interview.
Selection Interview involves the interaction of the employer and the employee.
Selection involves a personal, observational and face-to-face appraisal of candidates for
employment. It is an essential element of the selection procedure. The information obtained
through application form and test can be crosschecked in the interview.
The applicants who have crossed the above stages have to go through Physical
Examination either by the company's physician or the medical officer approved for the
purpose. The main aim is to ensure that the candidate is physically fit to perform the job.
Those who are found physically unfit are rejected.
The next stage marks of checking the references. The applicant is asked to mention in
his application form the names and addresses of two or three person who know him well. The
organisation contacts them by mail or telephone. They are requested to provide their frank
opinion about the candidate without incurring any
liability. The opinion of the references can be useful in judging the future behaviour and
performance of a candidate.
51
The executives of the concerned departments then finally approve the candidates
short-listed by the human resource department. Employment is offered in the form of an
appointment letter mentioning the post, the rank, the salary grade, the date by which the
candidate should join and other terms and conditions in brief. Appointment is generally made
on a probation of one or two years. After satisfactory performance during this period the
candidate is finally confirmed in the job on permanent basis or regularized.
52
RECRUITMENT AND SELECTION
PROCEDURE IN DABUR INDIA
Dabur India Ltd. selects the future employees keeping everything in mind right from the
qualification of the employees to the future prospects-both of the organisation and the
employees.
The first step involves the filling up of Manpower Indent Form. This form is filled up
by the department, which is having the vacancy. The form consists of various questions
which are to be answered like if the current vacancy is a replacement vacancy, its reason is to
be specified -the factors which resulted it like death, retirement etc.
The department is required to give the qualifications that the future candidate should
possess.
In the next step, this form is given to the Human Resource (HR) department; this
department sees if the position can be filled through internal sources. The internal sources can
be transfers, promotion etc. In the case of internal sources, the recommendations of the
employees are not taken into consideration. If the HR department does not find suitable
candidate within the organisation then this department has to give reasons for it. The form
then goes to the Corporate HR for its approval.
When the suitable candidate is not available within the organisation, the organisation then
moves to the outside world for filling up the vacancies.
If the number of employees required is large then the company has in its consideration
three ways-
The Data bank of the organisation.
Advertisements.
Contacting large consultants.
The company maintains a databank of the candidates, which is used when the number of
vacancies to be filled up is large. The sources of databank can be the qualified candidates
53
who had applied in the organisation earlier but due to some reasons could not join the
organisation.
Advertisements are the second big source to attract the candidates. These are having much
larger scope and reach to a number of people. The qualifications required by the organisation
and the criteria could be described in detail.
Large number of consultants also constitutes a big source. Many people register
themselves with these consultants and they act as a bridge between the organisation and the
candidates. The consultants provide the company required details about all criteria. These
consultants are fixed for the organisation, which are chosen on the basis of their performance.
In case of overseas recruitment it is checked whether their Indian counterparts can perform
the job efficiently or not. If need arises then they are also taken through consultants.
But if the number of vacancies is very small then the organisation takes the help of the
local consultants.
The candidates are then required to fill up the Application Form. This form requires the
candidate to fill the details regarding the previous employment, if any and his personal data.
The form is having details regarding like the marital status, organisation structure, the
position held by the candidate, his salary structure, the top three deliveries to the organisation
that proved to be beneficial to the organisation, career goals, his strengths and weaknesses
etc.
After the application form has been duly filled and submitted, the selection process starts
wherein the candidate has to pass through various stages and interview. The interview panel
consists of the persons from Corporate (HR), and other persons including the executives from
the department for which the vacancy is to be filled.
The selected candidates are then short-listed. The short listed candidates are then given
priority numbers; this is due to the reason that sometimes the candidate who is having first
priority is unable to join the organisation due to some reasons then in that case the candidate
next in the priority list is given preference.
54
The candidate has to under go medical examination and his credentials are verified.
After qualifying these stages, the candidate is then absorbed in the organisation and
explained his/her duties. This phase marks the end of the selection procedure.
Dabur India Ltd.also performs Campus interviews as and when the need arises. The
esteemed organisation also provides apprentice training-wherein the organisation trains the
people in the working of the organisation and gives then stipend. If these trainees are found
useful to the organisation then they are absorbed in the organisation else they are given
certificate so that they can show this as an experience and get a job elsewhere.
55
RESEARCH METHODOLOGY
STATEMENT OF OBJECTIVE
This project entitled Recruitment and Selection in Dabur India Ltd (DIL) is aimed at
studying the recruitment and selection procedures at DIL. Recruitment and selection
procedures of any organisation are very important functions because these decide the most
suitable manpower which steers the industry to its desired goals.
RATIONALE
This project was undertaken as a part of the curriculum of MBA course, of Bharat Institute of
Technology, Meerut, which is compulsory for each student to have the training in any
organisation so as to gain first hand knowledge of the organisation. This exposure enables the
trainees to learn effective and efficient ways and means to solve the real problems faced by
the organisation and also to understand its dynamics.
OBJECTIVES
56
RESEARCH METHODOLOGY
An empirical study has been undertaken to understand and study the process of Recruitment
and Selection process employed in Dabur.
PRIMARY DATA:
Information regarding the Recruitment and Selection process was obtained through personal
discussion with PERSONNEL ASSISTANT of HR Department. Questionnaire was
administered and based on the analysis of those questionnaires the research has been carried
forward. 20 employees at the administrative level and 12 employers of the company have
filled up the questionnaire.
57
METHODOLGY FOR COLLECTING THE DATA
Defining the problem:
Recruitment and Selection procedure in any organization is vital, as it helps in selecting the
right candidate for the right job. Therefore the effective of Recruitment and Selection
procedure depends upon the extent of inter linkage with the other HRD systems.
The total population i.e. some of the executives, managers, and some people from the middle
and lower level management was the sample of the research study.
Sampling Technique:
Simple random sampling technique was used in order to get the data. To facilitate easy
availability of the data, respondents were the executives of the top management and of
various other divisions were approached.
The tools of collecting data included questionnaires, interviews and personal observation.
Data Analysis:
The problems faced are the reluctance of the respondents to give the mutual response. They
were not willing to reveal their exact expectations and the loopholes regarding the systems.
58
DATA ANALYSIS
EMPLOYER QUESTIONNAIRE
120 out of 120 employer’s accepted the fact that Dabur follows recruitment and selection
procedure.
120
100
80
No. of
60
employers Yes
40
No
20
0
Dabur
Company
59
Q.2) In case of external recruitment does the company compensate the employees for the
expenses made by them?
It basically depends on the post the candidate is applying for, in most of the cases the
company does compensate the employees for the expenses incurred by them.
70 out of 120 employers said that the company compensate the employees for the expenses made
by them, while 50 employers said No.
70
60
50
No. of 40
employers 30 Yes
20 No
10
0
Dabur
Company
60
Q.3) Does the company hire consultancy firms or recruitment agency for hiring candidates?
All 120 employers said that the company hire consultancy firms or recruitment agency for
hiring candidates.
120
100
80
No. of
60
employers Yes
40 No
20
0
Dabur
Company
61
Q.4) Are the references provided by the candidates verified?
8 0 out of 120 employers said that the references provided by the candidates is verified while 40 employers
said No.
80
70
60
50
No. of
employers
40
Yes
30
No
20
10
0
Dabur
Company
62
Q.5 How much of the total monitory expenditure does the company spends on recruitment
and selection procedure?
20 out of 120 employers said that the company spends about 10%-20% of its total
expenditure on recruitment and selection.
70 out of 120 employers said that the company spends about 20%-30% of its total
expenditure on recruitment and selection.
While 30 out of 120 employers said that the company spends above 30% of its total
expenditure on recruitment and selection.
70
60
50
40
No. of em ployers
30
Dabur
20
10
0
below 10% 10%-20% 20%-30% 30% above
Producticity
63
EMPLOYEE QUESTIONNAIRE
200 out of 200 employees accepted the fact that Dabur follows recruitment and selection
procedure.
250
200
50
0
Dabur
Company
64
Q.2 Does the recruitment and selection procedure affects the performance of the employees?
Yes, it does because if in-appropriate candidates are selected it would lead to loss of
productivity, labor turnover.
180 out of 200 employees said that recruitment and selection procedure affects the
performance of the employees while 20 out of 200 employees said that it does not.
200
150
No. of Yes
employees
100
No
50
0
Dabur
Company
65
Q.3 Does the company recruit employees internally?
200 out of 200 employees said that Dabur recruit employees internally.
250
200
50
0
Dabur
Company
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Q.4 Is the recruitment and selection procedure followed by the company appropriate?
170 out of 120 employees believe that the recruitment and selection procedure followed by
the company is appropriate while 30 out of 20 employees believe its inappropriate.
180
160
140
120
No. of 100 Yes
employees 80 No
60
40
20
0
Dabur
Company
67
Q.5 Does your company disclose the job specifications at the time of selection of a
candidate?
Disclosing of job specification basically depends on the job profile of the candidate.
130 out of 200 employees say that the company discloses the job specifications at the time of
selection of a candidate while 7 out of 20 employees said the company doesn’t disclose job
specifications at the time of selection.
140
120
100
No. of 80 Yes
employees 60 No
40
20
0
Dabur
Company
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ANALYSIS OF DATA
o 70% of employees accepted that recruitment & selection procedure affects the
performance of the employees.
o 65% of employees as per analysis are satisfied that job specifications basically
depends on the job profile of the candidate.
o 50% of employees said that the company spends about 10%-20% of its total
expenditure on recruitment and selection.
o The analysis clearly shows that company spends about 20% - 30% of its total
expenditure on recruitment and selection.
o As per responses 70% of employees said that company ask for references at the time
of selection and rest of them said no.
o From the responses, it is clear that upto 80% of employers accepted that the
references provided by the candidates is verified.
o 90% of employer said that company positions on the job sites and Internet searches.
o 90% of employers said that company maintains and manage candidates file including
maintenance of database to ensure comprehensive data collection data collection of
candidate.
o As per the responses 45% of employers believe that the employee's productivity gets
hampered due to his marital status to a large extent.
o 30% of them said that productivity is somewhat affected. So, there is a need to
identify this.
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RECOMMENDATIONS
The Training in Dabur has helped me in broadening my view. It has helped me to know that
HR is the heart of every organization. It made me aware about how policies play an important
role in the smooth functioning of any organization. But I have found that there is something
that lacks in the company and which is possible to overcome.
Dabur is engaged in making maximum sales, providing satisfaction to its customers, as well
as maintaining good relations with the corporate world. But it has not thought about
marinating a health relation with its employees. This is the reason that there was an increase
in the labor turnover. Also, it has never given consideration to find the reason lying behind
the same.
Employee retention is crucial to the long-term success of your business and therefore the
ability to retain employees is a primary measure of the health of your organization. Of
significant concern is the fact that unplanned employee turnover directly impacts the bottom
line of a business.
The company can undertake the following steps to maintain long and existing relationship
with its employees as well as a steady increase in sales:-
1. Employees should know clearly what is expected of them-
Continually changing expectations minimize employee’s sense of internal security
and create unnecessary stress. It is beneficial therefore to provide a specific
framework, in which people can work.
It is well documented that people leave their managers more often than they leave the
company or the job. Turnover issues that cause an employee to feel unvalued by their
manager include lack of feedback about performance, lack of clarity regarding
earning potential, failure to hold scheduled meetings, and the failure to provide a
framework for the employee to succeed. Ensure that the right people are in place to
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lead your teams, departments, business units and the organization as a whole towards
success.
3. The company should compensate candidates applying for any position in the
organization in case of external recruitment; this will give candidates a positive
impression about the company.
4. The references given by the candidates at the time of selection should be brought into
use and should be verified in order to avoid undesired candidates.
5. Job specifications should be disclosed at the time of recruitment and selection so that
employees are well aware of the tasks to be performed by them and the expectations
their seniors have from them.
6. Company should undergo personality test in order to judge the personality of the
person applying for the job.
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CONCLUSION
REQUIREMENT:-
‘Necessity is the mother of Invention’ this is true everywhere. In the study first of all I
tried to find out the cause of the process of Recruitment and selection.
I got the answer from Dabur that here in Dabur major cause for the process is its
Expansion program as Dabur is growing vastly. Few other reasons are Replacement
vacancy Retirement hardly takes place here.
SOURCES:-
An organization’s excellence depends upon its employee’s performance, which has not
only to be maintained on a consistent level, but also must be improved constantly. All this
can be achieved if suitable employees are selected, through proper Recruitment and
Selection procedure.
METHODS:-
For the recruitment and selection various test include for e.g. aptitude test ,personality test
and group discussion. As we all know that, in today’s highly competitive age the biggest
problem is of retention of its highly skilled employees in the organization. Recruitment
plays a vital role in this regard. But it should be seen that no system is without any flaws.
Every system has its strong and weak points and is open for change at any time.
IMPROVEMENT:-
DABUR a well-developed Selection System for its employee’s development. Thus, the
company provides scope for employees on future growth, career planning, training and
development.
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ANNEXURE
73
EMPLOYEE QUESTIONNAIRE
Q.1How much of the total monitory expenditure does the company
spends on recruitment and selection procedure?
Below 10%
10% - 20%
20% - 30%
30% & above
Q.2 How do you rate the importance of recruitment and selection procedure in
your organization?
Formality
Important
Very Important
Use less
Q.3 How far do you think does the productivity of the employees get hampered
due to his/her marital?
Q.4 Does your company maintains and manage candidate’s file including
maintenance of database to ensure comprehensive data collection of candidates?
Yes No
Q. 5 Does the company hire consultancy firms or recruitment agency for hiring
candidates?
Yes No
Yes No
Q.7 Does your company postpositions on the job sites and internet searches?
Yes No
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QUESTIONNAIRE ON RECRUITMENT & SELECTION FOR THE
EMPLOYEES
Name:
Designation:
Organization:
Age:
Date:
Yes No
Q.2 Does the recruitment and selection procedure affects the performance of the
employees?
Yes No
Yes No
T.A. S.A.
S.D. T.D.
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If not, then suggest the appropriate changes required in the recruitment and selection
procedure followed by the company?
……………………………………………………………..
Q.5 Does your company disclose the job specifications at the time of selection of a
candidate?
Yes No
Q.6 Does your company ask for references at the time of selection?
Yes No
Q.7 What percent of the selection procedure does the written test contribute?
Below 10%
10% - 20%
20% - 30%
30% -40%
40% -50%
50% and above
Q.8 Which type of interview methods does your company usually follow?
Direct Computerized
Group Panel
Stress
Q.9 Does your company follow any of the following personality test for the purpose of
recruitment and selection?
MBTI Psychometric
FIRO_B Other
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BIBLIOGRAPHY
Gupta C.B., Human Resource Management, Sultan Chand & Sons, New Delhi.
www.dabur.com
V.S.P. Rao
Aswathappa
77