Dabur eyes Rs 500 crore sales turnover from Real juice

Dabur eyes Rs 500 crore sales turnover from Real juice

Author | Source: Business Standard | Wednesday, Feb 21,2007 7:56 AM

Dabur eyes Rs 500 crore sales turnover from Real juice

Dabur Foods, a 100 per cent subsidiary of FMCG company Dabur India, aims to achieve a sales turnover of Rs 500 crore by 2010 from its flagship juice brand Real.

Towards this, the company will invest Rs 100 crore over three years. Of this, Rs 70 crore will be utilised for expanding manufacturing lines in Jaipur, Siliguri and Nepal.

Currently, Dabur Real contributes Rs 175 crore to the kitty of Dabur Foods, which has an overall turnover of Rs 225 crore. The other brands of Dabur Foods are Active, Coolers and Hommade.

To ensure sustained growth of Dabur Real, the company was evaluating the jams and jelly market and also cut-fruits and fruit syrup market though no immediate announcements in these categories were expected, Amit Burman, CEO, Dabur Foods, said.

“Over the past 10 years, Real has had a compound annual growth rate (CAGR) of 33 per cent. Our focus over the next three years will be to achieve a CAGR of 25 per cent, thus increasing turnover from the brand to Rs 500 crore by 2010,” Burman said.

Dabur has also done a packaging and design makeover of its Real brand. Explaining the rationale behind the new packaging, Sanjay Sharma, general manager, sales and marketing, said: “The new look has a two-fold agenda - to retain the loyalty of our current consumer base and to attract more consumers.”

The Rs 350 crore domestic branded juice market is growing at a CAGR of 25 per cent. According to a study by AC Neilson, Dabur Real has nearly 57 per cent market share, while Tropicana is a distant second with 25 per cent share.

To cater to the demands of the exports market, the new manufacturing lines would also cater to the markets in the West Asia and African countries, Burman said.

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