Four year thrust

Dabur has chalked out a growth plan that involves a human resource recast, geographical expansion and new launches.

There are still four years to go for 2010. For Dabur, this is the year by which it must double not just revenues but profits.

To achieve the target (Rs 3,800 crore revenue and Rs 430 crore in profit-after-tax), it has got itself a set of strategies that revolve around expansion, innovation and acquisition.

The effort will involve a series of launches. According to Sunil Duggal, CEO, Dabur India, the goal is a balanced product portfolio.

But it's Dabur's people who are expected to make it all happen. "Human resources are vital to our growth path, and its our constant endeavour to recruit good talent and promote people within the organisation. This is reflected in the low attrition rate of 7 per cent vis-a-vis 12 per cent for the industry," says A Sudhakar, executive vice-president, human resources, Dabur India.

V S Sitaram has hopped aboard from Unilever, London, as executive director, consumer care, a division that accounts for over 60 per cent of turnover.

For global revenues, the efforts are being spearheaded by S Raghunandan, a former Hindustan Lever man based in Dubai, running a business group for West Asian and African markets, and Arvind Kumar, a former Pepsi man based in India, running another group for South and East Asian markets apart from the US and UK.

By 2010, Dabur wants international business to make up 16 per cent of its turnover, up from the current 9 per cent.

To realise that ambition, Dabur has slotted the world beyond India into "potential", "opportunistic" and "focus" markets, the last of these being more amenable to its "natural products" pitch and expected to contribute 75-80 per cent of the business.

Meanwhile, Dabur has not given up its aggression with B-school recruitment. This year, it hired seven MBAs for sales and marketing functions.

Back home in India, Dabur wants to crack the southern states by overhauling the distribution network, and revamping advertising and packaging "" all with a south Indian touch. A broader portfolio shall, no doubt, help.

In skincare, for example, its launch of Vatika Honey & Saffron soap is leading the charge, while several new variants and extensions of existings brands and sub-brands are expected. New products, hopes Duggal, will come to contribute 6-7 per cent to total revenues in a year or two.

To consolidate Dabur's "ayurvedic remedy" position, it is tying up with ayurvedic doctors, even as it reserves Dabur-branded shelves (under Dabur Deevar) at chemists across India that stock its 250-odd herbal and ayurvedic products.

What's more, its chain of ayurvedic centres is expected to expand from the current 162 to 1,000 within a year "" an effort led by Nitin Ghadiyar, executive director, consumer health, a former Colgate-Palmolive man.

That's quite a team, rivals will concede. But analysts are not altogether convinced that it's enough of a growth driver. "In order to achieve the 2010 topline target, Dabur has to bank either on new acquisitions, new product introductions or both," says a Mumbai-based analyst at a brokerage tracking FMCGs.

Doubling profits may prove even tougher. "Margins have expanded in the last two years because of the Balsara acquisition and growth propelled by Dabur Foods," he adds, "Beyond 2007, things will be very difficult."

But then again, four years is no short length of time.