Dabur India: Growing Professional Management from Family Roots
The case opens in December of 2018, with Sunil Duggal, the CEO of Dabur India (a multinational consumer goods conglomerate with a focus in Ayurvedic products) contemplating who should succeed him at the head of the company. The new CEO will have been the first since Dabur completed its transition from family management to professional management in 2002, and though publicly listed, the majority of the company's shares were still owned by the Burman family, who founded it in 1884. The case then describes how the Burman family grew the company until the mid-1990s, when professionalization began. The case explains the various obstacles and difficulties that the company overcame in the process of professionalization and explains how the family came to step back from the business. It specifies the nature of the family's involvement during Duggal's tenure as CEO, as the company expanded across the globe, and then it closes by returning to the question of what a professionalized, multinational family business should be seeking in its next CEO, sixteen years after it last confronted such a decision.