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.