Dabur International will be setting up a new manufacturing unit in the United Arab Emirates at an estimated investment of Rs 20 crore. The company has set up a wholly owned subsidiary under Dabur International, Naturelle LLC in Ras Al Khaimah, UAE under which the manufacturing and trading would be done. | |
| Sunil Duggal, CEO, Dabur India said that the new plant would primarily manufacture personal care products and some of the company's healthcare brands. |
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| This would be the Dabur's biggest plant outside South Asia and the investment would be done through internal accruals and debt. "We will raise debt through our subsidiary, Dabur International, most likely in West Asia," said Duggal. |
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| The new plant will cater to the demand mainly in the West Asia and some African countries and is expected to be ready by the last quarter of 2007-08. |
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| The West Asia is among the biggest markets for Dabur internationally, comprising about 40 per cent of its total international business and posting a growth of 27 per cent in the previous financial year. |
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| The move is seen as being in line with the company's plans to increase focus on its international business. Expected to contribute 15 per cent over the next three years to total turnover. Dabur already has a manufacturing facility in Dubai and Egypt in that region. |
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| The company would also trade in other company brands under the foods and ayurvedic products portfolios. |
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| Dabur International is expected to end the year at Rs 250 crore and this is likely to double to Rs 500 crore in 2010 as part of the company's Vision 2010. |
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| According to this, international business is expected to contribute about 16 per cent to the company's overall turnover. |
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| In keeping with this, the company had restructured its international business, to be headed by two business heads. One would be based in Dubai, focussing on the GCC and African markets and one in India, looking at the Asian markets. |
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| "The markets have been divided into focus, potential and opportunistic markets with the focus markets expected to contribute 75-80 per cent of the business" Duggal had said. |
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| The international business division posted a sales growth of 19 per cent in the year 2005-06 at Rs 216.1 crore as compared to Rs 181.2 crore in 2004-05. |
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| Some of Dabur's key personal care brands include Vatika and Babool. |
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