Dabur’s Destiny

IIPM MANAGEMENT INSTITUTE

“Dabur India has recognised a clear need gap that exists in health & beauty (H&B) retail space in India, thereby enabling the company to have an early mover advantage in the market. We feel there is a growing need for quality service and store environment in the health & beauty retail market in India today and no major player has entered this space so far. We believe there is a lot of value creation possibility in this venture,” Duggal shares his business plan to B&E for FY08. The company has already lined up investment to the tune of Rs.1.40 billion in H&B segment and will have a pan India presence by 2010. It targets to earn revenue of Rs.17 billion in 2012 through 350 stores. But with Fortis HealthWorld (a H&B retail venture of Ranbaxy Group), investing a whopping Rs.8 billion to open 1,000 stores by 2011, the company think tank might have to go back to the drawing boards to chalk out new strategies. Even on the M&A front, Dabur is eyeing organisations in Middle East, Africa & India. Adds Duggal, “Various proposals are under consideration and the company has the right balance sheet to fund a large acquisition at short notice. We have also got our shareholders’ approval for raising $200 million to fund acquisitions.” And come March 2008, the big honchos of Dabur India, sitting in the posh green colour building of Dabur in Sahibabad, will look back and rejoice at the year passed by and then don their thinking caps to strategise for the next year. And with the promise of future growth, Dabur might just be looking at its best shot at going global and in the bargain secure a place for itself in the B&E list of 100 Most Profitable Companies.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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