During 1890s, Dr. S.K.

Burman, medical practitioner, was facing certain problems with his patients in
Calcutta (now Kolkata). Many patients were too poor to afford allopathic drugs, In order to overcome this
problem; Dr. Burman started looking for the alternative drugs. He discovered that the quickest and surest
solution of the problem was in Ayurveda, its pharmacopoeia built over 5000 years and its remedies
prepared out of natural substances available within the country. Working on the preparation of Ayurvedic
drugs during his off time, Dr. Burman prepared some drugs in the form of traditional pisti, churna and
awaleha (various (Herbals) form in which Ayurvedic drugs are prepared). While preparing these drugs.
He applied the standards of hygiene and quantitiative precision of allopathic drugs. His patients used
these drugs which were cheap and effective and above all benign. Moreover, these drugs suited to the
patients lifestyles and food habits. In 1884, Dr. Burman launched his own company Dabur (Dr. S.K.
Burman) Private Limited to manufacture Ayurvedic drugs. His brand name Dabur was based on first two
letters of dactor (Bengali word for doctor) and first three letters of Burman (surname of DR. S.K.
Burman).

The companys business flourished initially in Kolkata. Subsequently, the company promoted Daburs
drugs through wall paintings, particularly in rural areas as well as through other media. With the result,
the company started receiving orders. Through mails from different places and supplying the drugs
through mails, perhaps the first direct marketing in India. Dr. Burman died in 1907 and his sons and other
family members took charge of the company.

At every state, the company continued to add products in the category of Ayurvedic drugs. Subsequently,
the company moved to add other products; some related; some unrelated. Presently, Dabur Group has the
following categories of products pharma, foods and juices, home care and personal care. In each
category, there are a number of products. Dabur Group has 12 manufacturing units, including units in
Nepal, Bangladesh, Egypt, Dubai and Nigeria. Besides, it has a research centre known as Dabur Research
Foundation which looks after R&D activities and supports research projects at seats of learning, major
labs and clinics.

In order to manage growing business, the private limited company was converted into Dabur India Ltd.
Further, to manage multi-businesses effectively, drug business was transferred to a new company. Daubur
pharma Limited. At present, Dabur India is fourth in Indian FMCG sector and Dabur Pharma is the
largest herbal company in the world. Dabur India ha sales turnover of the Rs. 1,741.1 crore (for the year
ended March 31, 2007) with an equity base of Rs. 86.4 crore while Dabur Pharma had sales turnover of
Rs. 308.4 crore with an equity base of Rs. 15.64 crore.
Each company is managed by a Board of Directors withsome persons being directors in both the
companies. Further, both the companies have sizeable number of directors belong to the Burman families.

During the history of Dabur Group so far, there have been three key decisions:
1. Entry in the Ayurvedic drugs.
2. Diversification in non-Ayurvedic drugs.
3. Splitting Dabur India into two entities: Dabur India Limited and Dabur Pharma Limited.

Questions
1. What types of strategic decision-making approaches have been adopted by Dabur Group at
each of the above decisions?
2. To what extent, such approaches will be effective for Dabur Group in future?