Dabur India Ltd. (DABUR), a maker of packaged honey, traditional medicine and hair oil, plans to set up two new factories and introduce more products in Africa as part of a goal to almost double profit in three years.“It makes sense to move, spring out to other emerging markets, because competition these days is very hard in India,” Taina Erajuuri, a Helsinki-based fund manager with FIM Asset Management Ltd. said. “It’s easier for Dabur to go to emerging markets than developed markets because there you have Unilever, Procter & Gamble and L’Oreal.”
Dabur rose 0.1 percent to 103.7 rupees at the close of trading in Mumbai today. The stock has risen 3.4 percent this year, compared with a 12 percent drop in the benchmark Sensitive Index of the Bombay Stock Exchange.
Profitable Growth
“The Africa market is the epicenter of our growth prospects for the future,” Duggal said May 13. “The upsides in some of these markets are as much, if not bigger than India. I’m talking about not just revenue growth, but profitable growth.”
“There are markets where for another 20 years there may not be a significant growth,” Kulkarni said. “You’d find it very difficult to distribute products.” We’ll have to buy companies outside Africa and then seed the markets with those products or develop our own products.”
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