Dabur targets Rs 4000 cr turnover in four years

Dabur targets Rs 4000 cr turnover in four years

Author | Source: Business Standard | Thursday, Mar 30,2006 10:02 AM

Dabur targets Rs 4000 cr turnover in four years

FMCG major Dabur India has planned to double its turnover to Rs 4,000 crore and net profit to Rs 400 crore in the next four years. This is a part of the company’s growth vision for 2010.

The company’s top executives said acquisition of brands and companies in India and abroad would be an integral part of the strategy.

“Where we have infrastructure like India, we will buy brands and where we don’t, like abroad, we will buy companies,” said Sunil Duggal,CEO.

The company’s growth ambitions will be achieved using a three pronged strategy – expansion, acquisition and innovation, said Duggal.

Dabur India Group Director P D Narang said the lack of debt capital in the company’s balance sheet provided it an opportunity to leverage and raise debt capital to fund its acquisition.

“Though the war chest for now is Rs 100 crore, we can rise up to Rs 1000 crore, should the need arise,” said Narang.

The company’s executives indicated that turnover for the current fiscal could be around Rs 2000 crore. In 2004-05, the company had reported a consolidated sales of Rs 1,537 crore.

On the domestic front, Duggal said the company will focus more on the south Indian markets. It may launch products specially developed for the region, he added.

“Even our media spend in the south is set to increase. With four different languages, the media campaigns are more expensive in the region. The new products will be first launched in south and later brought to the north,” he said.

The contributions of the southern market in the revenue is also set to increase from 6 to 10 per cent and the company plans to take it up to 15 per cent, said Duggal. Plans are also afoot to re-engineer the company’s plant in Silvasa to a 100 per cent export oriented unit.

As a part of its brand and product rationalisation plans, the company is also open to divesting some of its existing brands, though at present there is no such need to do so, said Duggal.

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