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Dabur banks on beverages to perk up topline growth — Plans Rs 20-cr investment for the brand Activ

26-March-2005
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Dabur banks on beverages to perk up topline growth — Plans Rs 20-cr investment for the brand Activ

Dabur Foods Ltd is eyeing 50 per cent topline growth this fiscal. The company, which is a wholly-owned subsidiary of Dabur India, is betting on its beverage portfolio to sustain such a growth level.

After entering several new product areas last year, the company has decided to strengthen its beverage portfolio further. It has begun by enhancing focus on `Activ' - the 100 per cent juice variant of the Real fruit juice portfolio that contains no sugar. On the anvil is Rs 20-crore investment in upgrading its production facility and devising a new communication campaign to reposition `Activ' on the health plank.

Mr Amit Burman, CEO of Dabur Foods Ltd (DFL), told Business Line, "We decided to reposition `Activ' after receiving consumer feedback that it was perceived as another flavour of Real, not a sugar-free juice option. The relaunch will involve Rs 15-crore investment in new packaging and another Rs 5 crore in reworking the communication strategy for this product."

Also, two new fruit juice-vegetable juice combos - cucumber and spinach with mixed fruit, and beetroot and carrot with mixed fruit - are being launched under `Activ'.

Mr Burman said the new packaging - called prisma packs - will enhance consumer convenience and a new pack size of 330 ml will be launched to cater to those consumers who are on the go.

These initiatives are expected to increase the contribution of `Activ' from 15 per cent to 22 per cent of the company's revenues. However, the company has decided not to take any pricing initiatives.

Mr Burman said the company is also working on several other beverage options under the fruit juice umbrella and these would be unveiled in the coming months. While he declined to give further details, in the past DFL has evinced interest in test marketing smoothies, fruit juice-yogurt combinations and extending the fruit drink line. Last year, DFL entered the ready-to-use packaged soup market under Hommade brand, tomato ketchup under its Nature's Best range and fruit drinks called Coolers.

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