PERSONAL and healthcare brands producer Dabur International, a wholly owned subsidiary of Dabur India, has been growing consistently at a seven-year revenue CAGR of 32 per cent, the
company says.

From a humble business of Dh200 million ($54.4 million)in the financial year 2006-07, Dabur International became a Dh 1 billion company in  2011-12 and grew by 20 per cent year-on-year to close at Dh1.2 billion in 2012-13.

According to Mohit Malhotra, CEO Dabur International, the company is doing “exceedingly well” in the current financial year, 2013-14, with growth driven by new products and new market entries.

“New product launches like the Amla shampoo and conditioners range, Vatika hair colours and Vatika hair mayonnaise have further strengthened the products portfolio,” he said.

Dabur started operations in 1884 from a small clinic in the Indian city of Kolkata. Its 128-year legacy has been capped with numerous milestones and accolades, making it one of the most recognised personal and healthcare brands in the world. Over the years the company has diversified into key consumer categories such as skin care, oral care, home care and foods through brands like Dabur, Vatika, DermoViva, Fem, Hajmola, Sanifresh and Odonil which are household names in many parts of the world.

“Dabur is now truly a global player, with an overall turnover of over $1 billion and a market capitalisation of more than $4 billion. Its international business division headquartered in Dubai is the cornerstone of its growth strategy … reaching a milestone of Dh1 billion within eight years of its existence,” said Malhotra.

“The GCC region is by far the biggest market for Dabur International and within that Saudi Arabia is the largest revenue contributor. This is followed by Egypt, Nigeria, Algeria, Yemen and West Asia.”

Dabur International follows the localisation strategy while finalising the product range for a market. The products offered to the consumer are specifically formulated and developed based on the needs of the region and the range of products offered is different in different geographies.

For instance, while the iconic Dabur Amla hair oil, launched in 1940, has acquired a special place in women’s hearts worldwide, the latest innovations such as Hammam Zaith and Snake Oil have been especially created for the Middle East by Dabur’s R&D team comprising more than 100 scientists.

“This local adaptation strategy goes a step further as Dabur International’s Middle Eastern campaigns feature prominent Arab celebrities,” said Malhotra. Commenting on the new products introduced recently, Malhotra said: “Having established our brand equity in shampoos/conditioners category through Vatika, Dabur International recently launched a range of shampoos and conditioners under the brand Amla. The range has been launched under the Snake Oil, Keratin and Vitamin variants.

Dabur International also recently entered into a highly competitive category of hair colours under the brand Vatika Naturals. Under Vatika, a new range of ingredient-based shampoos and conditioners was recently launched with traditional herbs used extensively by the local Arab populace. These include argan, black seed and garlic. Vatika also entered into a new innovative category with the Vatika hair mayonnaise range. Under Vatika’s styling range of products, a new category – hair gel cream – was developed and launched.

The international business contributes to around a third of Dabur’s global total turnover. Within the international business, the Middle East and North Africa account for 40 per cent.

ACQUISITIONS

Dabur recently made two strategic acquisitions. The first was Hobi Kozmetik in Turkey which gave Dabur international entry into the Turkish market. The second was Namasté Laboratories, a leader in African-American hair care based out of Chicago, US. This acquisition marked Dabur International’s entry into the fast-growing $1.5 billion African-American hair care market across the US, Europe and Africa.

Dabur International has now expanded its footprint in more than 100 countries.