Financial Daily from THE HINDU group of publications Saturday, Aug 14, 2004 |
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Marketing
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Strategy Dabur Foods eyes 10-fold rise in export Plans packaging unit in India Pratim Ranjan Bose
Kolkata , Aug. 13 DABUR Foods Ltd (DFL) is planning a more than 10-fold rise in exports from less than Rs 5 crore to Rs 50 crore in the next three years. Negotiations are on to export fruit pulp and concentrate in bulk form to several European blenders such as Doleh, Orana Wild, and so on. The company is also planning to set up its first packaging unit in India in addition to the existing facility in Nepal. Talking to Business Line, the CEO of Dabur Foods, Mr Amit Burman, said the company has ambitious export plans. "We are planning it big on exports to the European countries and the Middle East and the processing unit in Siliguri is the first step in that direction." But for bulk export of concentrates in smaller quantities to many countries, Dabur Foods is also selling its products under the Real brand name through the Woolworth retail chain in Australia. "We are spending on building our brand in Australia," he said. At present, Dabur Foods has a packaging unit in Nepal through a wholly-owned subsidiary. The proposed packaging unit will be set up at the company's just commissioned 190 tonne per day multi-fruit processing plant at Siliguri in West Bengal. The unit is being set up by Pasadensa Foods, a wholly owned subsidiary of DFL. The company, which has been meeting its concentrate requirements primarily through imports, will reduce at least 10 per cent of its raw material cost after commissioning the Siliguri plant, set up at an investment of Rs 20 crore. This is because most of the fruits will be sourced locally. Stating that the plant would focus on producing pineapple concentrates in the first year of operation, Mr Burman said the company was trying to make most of the global shortage of pineapple concentrates. "In due course, however, we will produce pulp and concentrates of many other fruits, mostly from the eastern and North-Eastern States, at our Siliguri plant. For the time being, our entire concentrate production will be packaged by Dabur Nepal. In due course, we may set up a packaging unit also at Siliguri," he said without giving any time frame for the investment.
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