Plans to acquire brands that fit its product portfolio

Debdatta Das

Expansion plans

Focus

markets include Nepal, Bangladesh, Pakistan, USA and Nigeria and West Asia apart from the South Indian market

In these

markets, Dabur plans to increase its size and widen its portfolio

Targets

exports of Rs 600 cr from international market by 2009-10

New Delhi, Sept. 15

Dabur India Ltd is planning major domestic and international mergers and acquisitions as part of its `Vision 2010' plan, by acquiring brands of particular companies that fit into its product portfolio, instead of acquiring entire companies, like it did with Balsara.

"We will follow the three pillars strategy of expansion, innovation and acquisition in Dabur. Right now our focus is to be present in areas where we weren't earlier. The idea is to fill in the gaps in our product portfolio by acquiring brands that fit in," said Mr Sunil Duggal, Chief Executive Officer, Dabur India Ltd. "The focus areas as far as M&As are concerned are personal, health and skin care. The strategy for expansion in the skin care product portfolio should be in place by mid next year," said Mr N. Venkatakrishnan, Executive Vice-President, Commercial, Dabur India Ltd.

"We have divided the entire expansion process according to geographical sections of focus, potential and opportunistic markets," he added.

Focus markets

The focus markets include the West Asian countries, Nepal, Bangladesh, Pakistan, USA and Nigeria.

The strategy here is to set up manufacturing facilities in these markets as they have huge growth possibilities.

In potential markets such as Sri Lanka, the idea is to build up size by identifying the ability to create a niche for the company. Dabur has also identified the southern market of India as an immense potential for growth. Consequently, the company has launched specific products with certain modifications to suit the south Indian palate.

Southern market

"Products such as Dabur Herbal toothpaste, Odomos, Odonil, Dabur Honey, Vatika hair oil, shampoo and soap are doing very well in the southern market. We plan to launch more products with modifications to suit the tastes of South Indian consumers," said Mr Venkatakrishnan.

The company also plans to package and market its products in a way that is specifically suited to the south, as it aims to achieve 15 per cent of its total turnover from the region.

Exports

Dabur targets exports of Rs 600 crore - 15 per cent of the total turnover - from the international market by 2009-10, with Rs 500 crore coming from the focus markets, Rs 85-90 crore from potential markets and the rest from the opportunistic markets.

"Our aim is to gradually reduce the opportunistic markets and convert them into potential markets," said Mr Venkatakrishnan.

(This article was published in the Business Line print edition dated September 16, 2006)
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