How Dabur Became World's Largest Ayurvedic Company
How Dabur Became World’s Largest Ayurvedic Company

From delivering medicines on his bicycle to taking over the country, here’s how Dabur became a business dynasty

In the space of herbal healthcare, there are not many brands that can be talked about in the same breath as Dabur. Not only are they the oldest Ayurvedic brand, with roots tracing back over a century, but also the undisputed global leader, having firmly established itself in multiple sectors. Long before Patanjali’s foray into the market, it was Dabur that first capitalised the venerable wisdom of Ayurveda, and became a hallmark of trust and authenticity.

 

The Origin

 

Daktar Burman, as SK Burman was lovingly called, would spend most of his time studying herbs and their medicinal properties to treat his patients. During those days, India was still under colonial rule, and western medicines were affordable to most. In Bengal, where epidemics like cholera and malaria were pretty common, Burman would often reach out to the afflicted on his bicycle, with a bag of medicines that he would concoct. The efficacy of his medicines earned him the trust of common people, but he could reach only so many people on his cycle.

 

To make his remedies accessible to more patients, he came up with an innovative idea of sending them to far-flung villages through mail-order. It proved to be a game-changer for SK Burman, who would then go on to establish the company in 1884, Dabur – a combination of the first two letters of ‘Daktar’ and three letters of Burman. 12 years later, buoyed by the great reception, Burman would set up the first manufacturing plant for mass production of his medicines. In 1919, his son CL Burman established the first research laboratories to ensure quality checks of the products. 

 

Expansion

 

The grandsons of SK Burman, Puran and Ratan Chand, took control of the organisation. While Puran took care of the manufacturing unit, Ratan Chand’s responsibility was to overlook sales, and devise a plan to increase the company’s footprint. 

 

The first major breakthrough came in 1940, when they launched the hair oil infused with the essence of Amla (Indian gooseberry). The Dabur Amla Oil was an instant hit, and it still continues to enjoy a strong foothold in the Indian market. Over the years, celebrities like the Late Sri Devi, Kareena Kapoor, and Deepika Padukone have endorsed this product. 

 

 

In 1949, Dabur launched Chyawanprash – a popular dietary supplement used in Indian households. The recipe of Chyawanprash, a cooked mixture of sugar, honey, ghee, Ashwagandha, Indian gooseberry jam, and different herbs and spices, dates back to Vedic times. 

 

But it was Dabur who first saw great potential in this, and started selling packaged and branded Chyawanprash. The company, in 1965, also became the first in the country to sell packaged honey. In 1978, the digestive tablet Hajmola was launched.

 

All these products have endured the test of time, and common to their success is the basic philosophy of giving a modern twist to ancient wisdom. “We have taken an age-old remedy, and we have standardized it,” explains Dr. Anand Burman, chairman of Dabur India Limited to Harvard University. “We have put it into a very modern format.”

 

 

The Shift To Delhi

 

By the early 1970s, social and political turmoil in the wake of the Naxalbaari revolution made Bengal a tough place to conduct business. The company, then run by the third generation of the Burman family, was compelled to shift its headquarters to New Delhi. Since 1972, the company has been headquartered in New Delhi. When the liberalisation of the Indian economy happened in 1991, they faced a stiff challenge from multinational companies, and failed to capture a majority share in consumer good. Tough decisions needed to be taken, or else the company might have lost their relevance. 

 

In 1998, they approached the consultancy firm McKinsey & Company, who advised the scions to relinquish control, and instead hire the best professionals from the industry. While the family would continue to enjoy veto powers as the company’s board of directors, all major decisions, like which product to launch or where to expand, were left to professionals who managed the company. The Burman family obliged, and much to their joy, this turned out to be a seismic point in the company’s history. 

 

The most innovative decision the new hierarchy of professional managers took was to rebrand the age-old formula of Dabur Lal Dant Manjan, the toothpowder. At the turn of the noughties, brands like Colgate and Pepsodent started to dominate the toothpaste segment, and toothpowder was slowly going out of vogue. Dabur risked losing a sizeable customer base. To counter this situation of potential fadeaway, they released Dabur Red toothpaste, and in the first year itself, the product exceeded their expectations and sales target by 150%.

 

 

“The family has proven to the business community that sometimes it is better to detach from full management control by the business family for the greater good of running a large business in the long term,” writes the journalist Rosemary Marandi, in her book They Meant Business: 50 Inspiring Stories from Indian Biz.

 

Where Dabur Stands Now

 

Dabur currently sells over 300 Ayurvedic products, health supplements, shampoo, and hair oil. Hajmola, Dabur Vatika, Dabur Amla, Pudin Hara, and Chyawanprash are some of the flagship brands under the company. Besides Pudin Hara, a popular digestive remedy, they also sell other over-the-counter medicines like Dabur Honitus, a herbal cough syrup, Dabur Lauhasava, a multi-vitamin syrup for women, Shilajit Gold, which helps improve strength, stamina and power. They have expanded their presence to over 100 countries. Mohit Malhotra is currently the Chief Executive Officer of the Dabur India Limited, estimated to be valued at $1.2 Billion.

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