The Hindu Business Line : Dabur Foods to set up Rs 20-cr multi-fruit processing plant

DABUR Foods Ltd, a 100 per cent subsidiary of Dabur India Ltd, has drawn up plans to establish a multi-fruit processing plant to support the growing domestic and export markets for packaged food.

The Executive Director of Dabur India and Chief Executive Officer of Dabur Foods, Mr Amit Burman, told Business Line that the Rs 20-crore project would be taken up as a backward integration plant at Siliguri in North Bengal to draw benefit from the large fruit-producing zone particularly growing pineapple, leechies and guavas. "While the focus would be on fruit processing, the plant would help Dabur develop various fruit concentrates and reach them out to the overseas market as well. Though the volumes are low exports are now concentrated in countries like Australia and Sri Lanka, these are expected to go up once we are able to produce fruit concentrates. The project would be funded largely through internal accruals and help the company expand its packaged products portfolio," Mr Burman said.

"India is one of the largest fruit producing countries in the world and has the potential to benefit with better processing facility. Though the market size for packaged foods is small given the large population base, this is growing at a healthy pace of about 30 per cent per annum. Since the price is high compared to fresh juices, it caters to the niche market," he explained.

With regard to the potential of imported items flooding the market, Mr Burman said that they account for barely 10 per cent of the market and it would be difficult for them to compete in the domestic market given a lower retail shelf life in India. The Indian conditions are different and the storage capacities are not well developed.

"The packaged food sector is estimated at about Rs 120 crore and of this Dabur accounts for about 55 per cent market share. The company has about four major brands and is now in the process of creating sub-brands through combination offerings as also ethnic drinks. Traditionally, most of the drinks are identified as having distinct overseas touch, and people want truly ethnic ones like guava and leechies. Therefore, we have forayed into fruit drinks such as guava and leechees, which people enjoy relishing," he said.

"There is this health-consciousness wave that has spread across the educated youth. In partnership with chains like Barista and other pubs we seek to educate them to prepare new set of cocktails. Apart from this, the effort is to reach out to larger number of people through in-flight service and educating the dieticians," Mr Burman said.

"Traditionally, people have a mental block about packaged drinks and their shelf life. With new technologies and without adding preservatives, it is now possible to store for more than six months. Once this message goes out, we expect this segment to grow at a much faster pace," he said.

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