Dabur's H&B Stores signs deals with 3 labs

Dabur India's health and beauty retail subsidiary H&B Stores has signed deals with labs in Italy, the UK and Thailand for developing some of its private labels as it gears up to open outlets from next month.

The company, which is investing Rs 140 crore in the first three years of operations, is aiming at a turnover of Rs 1,000 crore.

"Private labels will be a strong focus for the company, and occupy around 10% of shelf space across the board in the stores. We have tied up with companies outside India for research and development of private labels," Peter Baker, chief executive officer, H&B Stores, said.

He added the company would also be outsourcing some of the functions through contract manufacturing for products under the 'New U' brand from domestic players.

Starting January next year, the company plans to set up 50 stores by the third quarter of 2008-2009. This would be followed by 350 stores in five years, and 1,000 outlets by its 10th year of operations.