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Vatika, Hajmola to drive Dabur growth
July 15, 2003 17:39 IST
Dabur India has decided to merge its family products and health care products divisions and identified five growth drivers in Vatika, Dabur, Hajmola, Anmol and Real brands to maximise shareholder value.
The company has decided to restructure its fast moving consumer goods business by merging the two divisions and identifying growth-driving brands, while simultaneously initiating demerger of the pharmaceutical business into a separate company.
"In the new brand architecture, we have decided to deploy far more resources for the growth of five key brands - Dabur, Vatika, Hajmola, Anmol and Real - and we will back these up with much stronger advertising and larger marketing spends," V C Burman, chairman, Dabur said in the company's annual report for 2002-03.
As part of the focussed brand-building strategy, Dabur will stress on certain key brands already well established in the consumer's mind, devising a clear positioning for each.
Thus, Vatika will stand for herbal beauty, Hajmola for tasty digestive, Real for fruit-based drinks, Anmol for value for money hair care and Dabur for natural health.
Besides, Dabur has decided to extend the Vatika brand from hair care products to personal wash category and this year could see the launch of a Vatika soap. Vatika will also be the skin care brand under which two products will be launched this year.
On the restructuring of the FMCG business, Burman said, "We discovered that these two sets of products (family and health care) have considerable overlap and commonalities in marketing, distribution, retailing and sales. The company's management has therefore decided to integrate these two SBUs into one."
The company has also laid out its plans for the new pharma entity.
"Dabur Pharma plans to be a major player in the global oncology generics business, supplementing its own strengths in this area by entering into key alliances with pharma majors," Burman said.
He said the new company would carry out original research focusing on developing new chemical entities and new drug delivery systems in the oncology segment.
This would make Dabur Pharma a completely integrated oncology player enabling it to tap the large emerging opportunity in this area.
"The domestic branded generics business will also grow albeit with low investments," he added.