Wednesday, March 29, 2006
Expansion, Acquisition, and Innovation to drive growth
To double revenues & Profits by 2009 – 10
International business, Homecare, Healthcare and Foods to be growth drivers
Targets a shift towards a more balanced portfolio of business
Sahibabad, UP, March 29th, 2006: Dabur India, one of India’s leading FMCG Company, unveiled its Strategy and Business Plan – Vision 2010 - in a press conference held here today that was addressed by Sunil Duggal, CEO, Dabur India Limited and also attended by P D Narang, Group Director, Dabur India.
“The timing marks the end of our previous four year business plan that was crafted for the year 2002-06 and comes to an end with this fiscal. The new plan envisages an aggressive strategy built around three pillars – Expansion, Acquisition and Innovation – across various markets and product segments, to drive growth. We expect to double our sales and profits by the end of fiscal 2009-10 with this plan” said P D Narang.
Elaborating on the plan, Mr Sunil Duggal, CEO, Dabur India Limited said, “As a part of our vision strategy, we plan to develop a more balanced portfolio of business. International business, Homecare, Healthcare and Foods will be our main drivers of growth. We plan to increase our presence across new segments & categories along with renewed thrust on entering new market areas. We will also aim at increasing the revenue share of southern markets to 15 per cent.”
The growth strategy for international markets would revolve around expansion, acquisition & alliances and focus on ‘natural’ platform in personal care & healthcare segment. To achieve the targeted share of 16 per cent from international business by 2010, Dabur would be reorganizing its international business and committing major resources in the focus international markets.
“International business will be spearheaded by two business heads – one based in Dubai and focusing on GCC markets with dedicated manufacturing facility in Africa and Gulf; and the other in India focusing on Asian markets and catered by unit in Silvasa. The markets have been divided into focus, potential and opportunistic markets with the focus markets expected to contribute 75-80 per cent of the business” said Mr. Duggal.
As a part of the domestic market strategy, the current brand architecture with 5 power brands will continue to exist with the addition of the homecare portfolio - Odomos, Odonil, Sanifresh and Odopic. Domestic business would contribute a major share of 84 per cent by 2010.
“Dabur had successfully entered the skin care segment with the launch of Vatika Honey & Saffron soap. Going forward the company plans to strengthen its position in this segment. With the acquisition of Balsara, Dabur made inroads into the relatively untapped Home Care segment, which will be the focus area for expansion into new categories. OTC Health Care segment will also be the thrust area for growth” said Mr Duggal.
The company also plans to aggressively target the Southern markets. The contribution to revenues from Southern market has already increased from 6 per cent and touched 10 per cent. This is targeted to increase further to 15 per cent of FMCG business by 2010. To company would be exploring the option of launching South India specific product to achieve these milestones.
The first phase of our South India initiative is already underway with local advertising, localizing of packaging and expansion of distribution network. The second phase, of product customization and local product launches will commence soon. Innovation, new product development & product launches, across various categories, will continue to be the focus area and is expected to contribute 6 per cent -7 per cent to the total revenues by 2010.” said Mr. Duggal.
To achieve competitive advantage, the company will continue to target excise free zones for manufacturing facilities. The existing two ERP systems will also be replaced by SAP to provide a platform for future IT initiatives. To achieve operational efficiencies, Dabur would explore global low cost sourcing options from countries like China.
Dabur India Limited is one of the leading FMCG companies in India with a consolidated turnover of Rs.1536 crores. Founded by S.K Burman, it is India's most recognized herbal specialist company and a trusted name in the field of natural and herbal healthcare worldwide.
Building on a legacy of quality and experience for over 100 years, Dabur has powerful brands in diverse categories of health and personal care such as Dabur Chyawanprash, Dabur Amla, Vatika, and Hajmola, Anmol & Real. The company has a wide distribution network, covering 1.5 million retail outlets, with a high penetration in urban and rural areas.
For Details :
Dabur India Limited
PH:- 95120-3982000, 3001000 extn 2101/2547