India’s Fast Moving Consumer Goods (FMCG) firm Dabur India has set up a new entity, Dabur Lanka Pvt Ltd, as part of a strategy to strengthen its presence in Sri Lanka, official sources said. Dabur Lanka has been incorporated under its wholly-owned subsidiary, Dabur International, which manages the company's overseas operations.
This was confirmed by Dabur India in a filing to the Bombay Stock Exchange (BSE), recently
As part of its plans for the island nation, Dabur is in the process of setting up a manufacturing facility in Kotadeniywa in the Gampaha district with an investment of around Rs.1billion.The factory is expected to start production by the end of this fiscal year which ends on March 2012. Dabur, sells personal care and healthcare products under brands like Dabur and Vatika.
The company plans to manufacture similar products at their Kotadeniywa factory for both local and overseas market. According to BOI officials, Dabur currently does not have a significant presence in Sri Lanka. However, it has identified the country as one of its focus markets in the coming years, they said, adding that Dabur India is yet to finalise the agreement with BOI.
Dabur, controlled by billionaire Anand Burman, also plans to produce beverages at its Kotadeniywa factory as it seeks to cut dependence on India, where inflation and competition from Unilever Plc and Procter & Gamble Co. are squeezing profits. Carbonated fruit-based drinks will be produced at this factory. The maker of Vatika shampoo aims to increase the share of overseas sales to 28% in three years from the current 22%.
Dabur is the fourth largest FMCG company in India with revenues of $ 910 million market capitalization of $4 billion (Rs 20,000 Crore).
Building on a bequest of high quality and experience of over 125 years, Dabur operates in key consumer products categories similar to Hair Care, Oral Care, Health Care, Skin Care, Home Care Foods. It offers a operation of exemplary Ayurvedic medicines and Ayurvedic OTC products that broach the age-old benefits of Ayurveda in modern ready-to-use formats. Around 22 % of the company's sales come from international markets, including African nations, Nepal and Bangladesh. |
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