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Dabur rejigs global operations

As part of an aggressive business strategy Dabur India Ltd has spilt its international operations with two new units ? one each in Dubai and Delhi ? to give more focus to its overseas business which is targeted to generate Rs 600 crore revenue by 2010.

india Updated: Feb 01, 2006 01:35 IST

As part of an aggressive business strategy Dabur India Ltd has spilt its international operations with two new units — one each in Dubai and Delhi — to give more focus to its overseas business which is targeted to generate Rs 600 crore revenue by 2010.

The operational units would be headed by two business heads. Persons to head the units have been short listed from within the organisation. The company will announce the names of the two new heads on February 20. They will report to the CEO in India.

The business head for Dubai will be responsible for operations in Pakistan, Russia and CIS countries, Egypt, Africa, Gulf, Iran, Iraq and Central Asia. While the Delhi business head will manage operations in South Asian countries (excluding Pakistan ), UK, USA, east Asia and others.Each of these countries will be headed by a country manager.

Currently, even the South Asian markets were being managed by the Dubai hub.

Speaking to the Hindustan Times, Dabur India CEO Sunil Duggal said, "The restructuring will help us consolidate our core business in the various regions. It was a highly complex set-up, not only in terms of geographies but also the countries that range from the developing to the developed. The unitary structure was responsible for entire personal care and healthcare initiatives."

"We had achieved 21 per cent growth in the Gulf markets and the business is reasonably profitable and to an extent now saturated, so we had to look for new growth opportunities and scan new geographies. Now we are looking at middle income and upper income markets like North America, CIS and Russia. This move is aimed to expand our operations," said Duggal.

He also highlighted that as part of the company's thrust to capture market share in Pakistan, it would soon have a country head there to drive the business. He would be responsible not only to grow Dabur's presence there but also explore the possibility of setting up a local manufacturing unit. Duggal said that the international business based out of Delhi would primarily focus on healthcare-related products while the Dubai hub would be primarily for personal care products. This new structure will remain till 2010 as part of Dabur's international business plan.

He said that the healthcare business was to be done out of India purely because most of the herbs were available here. The manufacturing of such products, like Chyawanprash which is a conglomerate of several herbs, was a complex process, he said. It could not be manufactured outside because of the various licence conditions, research and development and other critical factors, Duggal added.

To help Delhi international hub, the company will also set up the export-oriented manufacturing units which will cater to the requirements of heathcare products for the developed markets.

First Published: Feb 01, 2006 01:35 IST