New Delhi, March 29: Dabur has drawn up expansion plans to double sales and profit over the next four years. It will also consider acquiring brands and companies at home and abroad.
“We plan to be present in new segments and categories and tap other markets,” said Sunil Duggal, CEO of Dabur India.
The growth in foreign markets will revolve around “expansion, acquisition and alliances and focus on a ‘natural platform’ in the personal and health care segment”.
“To achieve a target of 16 per cent revenue from international business, Dabur will reorganise its overseas business and commit resources in global markets by 2010,” said Duggal.
Dabur’s consolidated revenues and net profit are about Rs 1,600 crore and Rs 200 crore respectively.
“According to a rough estimate, about 4 per cent of revenue could be utilised for inorganic growth through acquisitions,” said Duggal. “To achieve operational efficiencies, Dabur would explore global low-cost sourcing options from countries such as China,” he added.
Unveiling its new strategy and business plan Vision 2010, Duggal said international business, homecare, healthcare and foods will be the main growth drivers for the company.
“We also aim at increasing revenue shares of southern markets to 15 per cent,” he said.
International business will be spearheaded by two hubs ' one based in Dubai and focusing on the Gulf countries with dedicated manufacturing facilities in Africa and the Gulf.
The other hub in India will focus on Asian markets, which will be catered by the Silvassa manufacturing unit of Dabur.
“The markets have been divided into focus, potential and opportunistic categories. The focus markets, including South Asia, are expected to contribute 75 to 80 per cent of the business,” said Duggal. The current brands ' Vatika, Hajmola, Anmol, Real and Balsara ' will continue to exist in the domestic market with the addition of the homecare portfolio ' Odomos, Odonil, Sanifresh and Odopic.