Home-grown FMCG firm Dabur today said it will invest up to Rs 200 crore this fiscal to expand operations, which will include setting up three new factories overseas by next year.
The company will set up one plant each in South Africa, Kenya and Sri Lanka. It expects the two factories in Africa to start production by June next year.
"We are setting up two new factories in Africa, one in Johannesburg (South Africa) and another in Nairobi (Kenya). These plants will produce most of our personal care products for the local markets," Dabur India Chief Executive Officer Sunil Duggal told PTI.
At present, Dabur has a total of 17 manufacturing facilities, of which eight are outside India. In the African continent, the company has already three factories.
Besides, the firm plans to set up another facility in Sri Lanka for making its beverages. It has not disclosed by when the factory is likely to be operational.
While Duggal did not provide how much the company is likely to invest on setting up the new plants, according to company officials, the firm has earmarked an investment up to Rs 200 crore on funding its various expansion plans.
"Our capex for this fiscal, which includes our domestic expansion as well as setting up of the new factories, is around between Rs 100 crore and Rs 200 crore," a company official said.
The company said the expansion plans are in line with its growth target to achieve a revenue of Rs 5,000 crore by this fiscal.
"We will introduce more products in Africa as we look to expand our presence in the overseas market," Duggal said, without specifying the kind of products it plans to launch in the region.
Dabur, which sells personal care and healthcare products under brands like Dabur and Vatika, had a sales of Rs 4,110 crore. Around 22% of the company's sales come from international operations.
"In the current year we expect 28% of sales coming from the overseas as the benefit of our recent acquisitions will start kicking in," Duggal said.
In September, 2010, the company had completed acquisition of Turkish personal care firm Hobi Kozmetik Group for $69 million (about Rs 324 crore) to strengthen its presence in West Asia and North Africa.
Dabur is expecting that in three years' time, international operations will contribute around 35% to its overall sales, he added.
