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`Strategy built around expansion, acquisition and innovation.'

New Delhi , March 29

FMCG major, Dabur India, today outlined a four-year business plan involving an aggressive expansion strategy in the domestic and foreign markets, including product launches and acquisitions, to double sales and profits by 2010.

The company, which is looking at double-digit growth across all product segments over the next four years, expects sales to grow to Rs 4,000 crore by fiscal 2009-10 and profits to around Rs 400 crore.

"The new plan envisages an aggressive strategy built around expansion, acquisition and innovation across various markets and product segments to drive growth," Dabur India CEO, Mr Sunil Duggal, said at a press briefing today. He said international business, homecare, healthcare and foods would be the growth drivers for the company in the coming years.

As part of the focus on export markets, which Dabur hopes will account for about 16 per cent of sales by 2009-10 against the existing nine per cent, Mr Duggal said the company would be expanding operations in focussed markets such as Saudi Arabia, Kuwait, Bahrain, Bangladesh, Pakistan, Nepal, Egypt, Nigeria and the US.

``We are also looking at commencing local manufacturing in Pakistan and Russia,'' he said, adding that the focus markets were expected to contribute around 75-80 per cent to export revenues in the next four years.

The company now has about six manufacturing units overseas, including in UAE, Nepal, Egypt, Bangladesh and Nigeria.

Mr Duggal added that the company would ``aggressively pursue'' acquisitions in both India and abroad.

``Acquisitions are the fastest route to enter a new category,'' he said.

Dabur has a war chest of around Rs 100 crore to fund the acquisitions and Mr Duggal said this could be enhanced many times, if required, by raising money through debt and expansion of equity base.

On the domestic front, the company has plans to target the Southern markets in a big way. ``The contribution from southern markets is currently around ten per cent and we hope to increase this to 15 per cent by 2010,'' Mr Duggal said.

Dabur is looking at introducing local advertising, expanding distributor base as well as having South-specific product launches towards this end.

Interest in retail

The Burman family, promoters of Dabur India, is planning to invest in the fast growing retail sector. Confirming the same, Dabur India group director, Mr P. D. Narang, said that talks were on with a few local retail players. He, however, declined to divulge further information.

The domestic retail sector has been buzzing with activity, with recently Bharti Enterprises announcing its intention to enter the segment in tie-up with a foreign player.

The Burman family has made strategic investments across a cross-section of sectors. Past investments include Punjab Tractors, Lord Krishna Bank, Fidelity Mutual Fund Management and Aviva Life Insurance.

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