Strategic plan of Dabur

1. Strategy of a follower-Dabur

2. • THE Rs 1,163-crore Dabur India Ltd is set to
scale up its FMCG business, about a month
after it formally announced the demerger of its
pharmaceutical business ffrroomm iittss FFMMCCGG
business.

3. • Mr Sunil Duggal, Chief Executive Officer,
Dabur India,: "The company's biggest growth
areas in the current year will be the personal
and healthcare segments. WWiitthhiinn tthhee ffooooddss
segment, the strategy will be to consolidate
existing products.''

4. • The company has projected a turnover of Rs
2,000 crore by 2007.
• Dabur's personal care range falls under its
family products division, aanndd ccoonnttrriibbuutteess 45
per cent to its sales revenue.

5. • Key brands in this segment include
Dabur Amla hair oil, Lal Dant Manjan
and the Vatika haircare range, all of
which are Rs 110000--ccrroorree bbrraannddss..
• Within shampoos, the Vatika brand,
currently enjoying six per cent share of
the Rs 1,000-crore market, will be
aggressively promoted this year.

6. • The company proposes to enter unexplored
areas of haircare, and introduce the brand at
lower price points and in sachets, Mr Duggal
ssaaiidd..
• Another category Dabur intends to enter this
year is mass skin care.
• Meanwhile, the company is examining various
strategic options in the oral care sector. "It
could mean extending the oral care business
through the Binaca equity."

7. • In the confectionery segment, Dabur plans to
extend the Hajmola brand to new variants,
while adhering to the brand's digestive
positioning.
• "Hajmola could be extended ttoo nneeww ffllaavvoouurrss
and formats such as deposit candies. While
the candy format will be targeted at kids, the
digestive tablets will continue to address all
age groups,'' Mr Duggal said.
• Hajmola candy currently has nine per cent
share of the Rs 350-crore hard-boiled candy
market.

8. • As far as foods are concerned, Dabur Foods is
toying with the idea of extending its Real fruit
juice brand to other fruit-based, value-added
products, which could include juices and jams.
• For Hommade, the company iiss ppllaannnniinngg
consolidation in existing areas such as cooking
pastes, tomato purees, coconut milk and
chutneys, rather than stepping into new
categories.
• Mr Duggal has also ruled out entry into the
biscuits business.

9. • Some of the company's slow-moving
brands would be either phased out or
divested progressively as part of its
portfolio rraattiioonnaalliissaattiioonn..