CavinKare to set up arms in Bangladesh, Indonesia by Feb '05

After exporting to countries like Nepal, Singapore, Bangladesh and Malaysia, Cavinkare Private Limited (Cavinkare) is now setting up wholly-owned subsidiaries in Bangladesh and Indonesia by the end of February 2005.

"We have identified some partners in Bangladesh and are working with them for contract manufacturing and distribution. Ethical Drugs and Pharmaceuticals will manufacture Chik, Nyle and Fairever. In Indonesia the paper work is being finalised," said CK Ranganathan, chairman and managing director of Cavinkare.

He was addressing the mediapersons after the inauguration on Cavinkare Research Centre.

"The company in Bangladesh will be called 'Cavinkare Bangladesh' and will manufacture all the three products locally because of the high import duties levied there. Cavinkare, however, will export all the products to Indonesia to take advantage of the low duty structure there," Ranganathan said.

"Our investments in Bangladesh will mainly be for brand-building and marketing exercises. We have also tied up with Defence Food Research Laboratory (DFRL) so that the same food products that we have in the Indian market can be packed in a more suitable fashion and exported to the Indian population in the Europe and the US," he said.

Going forward, Cavinkare plans to set up research and development (R&D) centres in both the countries to employ local professionals who have an inherent understanding of the local culture and tastes.

Cavinkare is targeting a growth of 50 per cent in exports next fiscal as compared to Rs 12 crore that it achieved in the last fiscal. The company's total turnover was Rs 296 crore last fiscal.