Dabur Foods Ltd has chalked out a 5-point growth strategy to achieve a Rs 500 crore turnover by 2010. The company, which reported a turnover of Rs 191 crore in 2005–06, aims to become one of the biggest players in the Indian fruit processing industry. Dabur plans to achieve this by tapping into the company’s wide-ranging expertise from procurement to processing to new product development and delivery to consumers.
Speaking about Dabur Foods’ vision and strategy for growth, its CEO, Amit Burman, said, “As the market creator of packaged fruit juices in India, we have not only led the segment with innovation in our product offerings but have also taken the lead in redefining traditional marketing dynamics in the category.”
He further said, “We are now ready to enter the next stage by scaling up our presence and working towards establishing ourselves as one of the leading integrated players in the Indian fruit processing sector. Over the next five years, we will continue to delight our consumers with high-quality products and services and offer a wide range of delicious and innovative blends of Indian fruits and variants.”
“We have created Real as a Rs 100-crore brand. We want to create the same with Activ and Coolers. We are going to advertise heavily for in Activ and Real. The advertising spend will be 12 per cent of the total ad spend – Rs 30 crore this year,” Burman explained.
The five future focus areas for Dabur include a multi-brand strategy to create new brands and new categories, building on its success of Real as one of the trusted brand in the country, focus on building a strong independent identity for each of its brands like Activ and Coolers. The company also plans to introduce new flavours and products targeted at specific need areas of the consumer.
In line with the changing retail scenario and the new profile of ‘on-the-go’ consumers, Dabur Foods plans to scale up its presence in the market by making its brands available at an arm’s length. “The consumer is either in school or office. We are distributing juices in all airlines, schools and corporates. The company will focus on driving distribution in smaller towns and cities through introduction of innovative channels of visibility to increase consumption of fruit juices,” Burman said.
He pointed out, “India has the potential to move up the value chain. From being the world’s second largest producer of basic fruits and vegetables, the country has the potential to carve out a significant presence in the global fruit-processing sector. We want to get involved in purchasing of fruits and processing them.”
The foods business requires a specialised supply chain to ensure that the freshest product reaches the consumer. Dabur Foods is looking at scaling up its presence in the fruit processing industry with significant investments in the Siliguri processing plant and upgrading capacities to produce innovative products and packaging forms.
The company plans to build, maintain and update its R&D knowledge database providing information on all fruits and vegetables, processing and packaging technology while building in-house competencies to prepare its own special blends. “We are providing information to the consumer on what nutrition each food is giving. We are processing the foods in-house,” said Burman.