Dabur looks at acquisitions, tie-ups for growth abroad

Dabur has chalked out major expansion plans for overseas markets and is "actively considering" acquisitions and alliances outside India as it aims to corner 15 per cent of sales in foreign soil in the next four years.

"The company has re-organised its international business around the focus, potential and opportunistic markets to be able to tap its potential to the fullest," Dabur Chairman V C Burman told shareholders in the company's annual report for 2005-06.

The company, which revamped the organisational structure of its international business last fiscal, said geographical expansion was among the major plans on its agenda.

"Going forward, the expansion markets will be clearly identified based on strategic choice. The company will commit major investments and human resources in focus markets," the company said.

International business for dabur recorded a growth of 19 per cent in 2005-06 at Rs 216.1 crore and contributed 11.4 per cent to overall sales of rs 1,900 crore.

The company, which has overseas manufacturing bases in middle-east and africa, said it will leverage the "natural platform" as it moves ahead with growth in the foreign markets.

"This will make full use of the growing global demand for natural products by occupying differentiated competitive niches in the health care and the personal care segments," it said.

The organisational revamp for overseas business, which operates under Dabur International Ltd, will see the company split international business into two portfolios.

"Portfolio one would comprise asian markets including Bangladesh, Malaysia, Nepal, Pakistan, Sri Lanka and developed markets including US and UK. Healthcare business in CIS countries and markets in Asia Pacific would also be covered under the portfolio one ambit, which would be supported by the manufacturing facility at Silvasa," the company said.