Dabur to launch OTC drugs

After the acquisition of Femcare and the launch of the Uveda ayurvedic skincare range, Dabur will focus on over-the-counter (OTC) drugs, a senior company official has said.

“We will look at launching new OTC drugs for diabetes, heart diseases and maybe areas like menstruation also, which will create new categories like i-pill did for women contraceptives,” Dabur India Vice-Chairman Amit Burman told Business Standard on the sidelines of the India Retail Forum.

Dabur has a strong repository of 300 asavas (alternative ayurvedic medicines used in rural areas). “We are doing R&D on our ayurvedic formulations and would look at developing a product with the right packaging for the urban markets like we did with Pudin Hara,” said Burman.

For 2009-10, Dabur expects its net profit growth similar to 2008-09 at 22 per cent. The company expected skincare to contribute 15 per cent of its revenues, up from 5 per cent.

The company is looking for inorganic growth opportunities in West Asia, Africa and even in the domestic market. “If the right opportunity presents itself, we would be open to acquisitions,” said Burman.

Also, after the acquisition of Fem, the company expects its margins to improve by 3 to 4 per cent on account of better synergies and cost efficiencies.The company also expects its wellness and beauty format retail store to break even once it reaches 35 stores in 18 months. “We will have 209 stores by the end of the year and another 10 stores per year over two years,” said Burman.