The Hindu Business Line : Dabur Foods to expand Real brand beyond juices

Growth Plans
Company is also planning to foray into the ready-to-eat category under its existent brand Hommade.
Dabur Foods expects to clock revenues of around Rs 250 crore in 2007-08.

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New Delhi Feb. 20 Dabur Foods Ltd, an arm of FMCG major Dabur India Ltd, on Tuesday said it was examining options to expand its flagship brand Real beyond fruit juices to various types of processed fruits.

"We are looking at several options for our fruits business that will go beyond our current occupation of juices. We are examining alternatives such as processed, cut fruits and jams, though we have not finalised anything yet," said Mr Sanjay Sharma, General Manager, Sales and Marketing, Dabur Foods Ltd.

The company is also planning to foray into the ready-to-eat category under its existent brand Hommade. "We will make announcements as soon as we formalise our plans," he added. Meanwhile, Mr Amit Burman, Chief Executive Officer, Dabur Foods, said: "We will invest a total of Rs 100 crore over the next three years to expand and upgrade capacities at our manufacturing facilities, in order to double revenues to Rs 500 crore by 2010. Out of the total amount, around Rs 30 crore will be spent on brand-building, since we plan major focus on our three power brands: Real, Activ and Coolers."

Facilities

The company operates two food-packaging facilities, in Jaipur and Nepal, while it runs a food processing facility in Siliguri.

While the Nepal facility contributes 80 per cent to the company's supplies, its unit in Jaipur contributes 20 per cent.

Mr Burman also said, "Our Real brand has been growing over 30 per cent on year-on-year basis and we want this growth to continue in the future as well. The brand is expected to contribute around Rs 175 crore to this year's revenues."

Real, which contributes nearly 70 per cent of the company's turnover, is expected to rake in Rs 350 crore as revenues by 2009-10.

Dabur Foods also unveiled its new look Real Juices as part of its 10th year celebrations of the brand and the food business that was flagged off in February 1997. The company currently sells 12 flavours under its Real brand that includes the recent inclusion of its mausambi and pomegranate variants.

The company also plans to increase focus on Indian relevant flavours to boost the growth of its three fruit based juice and drinks brands.

Dabur Foods expects to clock revenues of around Rs 250 crore in 2007-08, of which 25 per cent will come from its export operations to Australia and West Asia.

More Stories on : Brands | Foods & Food Processing | Dabur India Ltd

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