FMCG major Dabur India today entered into the fruit-flavoured beverages segment, with aims to garner up to 5 per cent share in the estimated Rs 1,100- crore Indian fruit beverages market. The company today launched 'Real Burrst', in four flavours — mixed fruit, crispy apple, orange and mango — under its 'Real' brand which is the flagship of Dabur's fruit juice portfolio. "Dabur has been in the health and nutritious drink market under our Real and Activ brand. However, we are entering the non-fizzy fruit-flavoured beverage market under our 'Real Burrst' brand," Dabur India Marketing Head (Food Division) K K Chutani told reporters here. He said the company is looking at getting a market share of 4-5 per cent within the next three years in the Indian fruit-flavoured beverages market on the back of its new products. "However, our entire fruit drink business is around Rs 300 crore and is growing at a rate of 23 per cent. So we want to maintain it," he said. Dabur's 'Real Burrst' will take on the likes of 'Maaza' and 'Frooti', the major players in the fruit-flavoured beverages market in the country.
Source: Business Standard
Showing posts with label Dabur. Show all posts
Showing posts with label Dabur. Show all posts
Saturday, May 2, 2009
Monday, July 2, 2007
acquisitions are set to play a dominant role in PepsiCo’s India growth plans
PepsiCo Inc chairman & CEO Indra K Nooyi has told the India team to push hard for buyouts in milk-based beverages, juices and convenience foods this year to build the wellness portfolio.
Since PepsiCo worldwide generates $5 billion surplus cash every year, there’s no limit on the number of acquisitions and the amount that it would pay as long as they add value to the portfolio. The India office has begun work on this and is in the process of identifying potential targets and making their shadow profit & loss accounts, a top source told ET.
Ms Nooyi, an old hand in mergers and acquisitions, built the company’s health and wellness portfolio by leading the PepsiCo team that acquired Quaker Oats —in a $13.8-billion deal—as well as Tropicana juices.
The soft drink company is also looking for alliances with milk co-operatives to jointly explore milk-based drinks, such as cold coffee, lassi and milk shakes.
Pepsi has made only two acquisitions in India so far, the last being Uncle Chipps, which it bought seven years ago for around Rs 10 crore. Though the budget this time is several times more, it remains to be seen how many takeover candidates actually sell out.
Potential acquisition targets:
- Dabur’s Real — the market leader in juices with annual sales of Rs 240 crore — has been pursued by suitors, including Coca-Cola, but the owners are not ready to play ball.
- Another potential candidate Frito-Lay could be looking at is Haldiram’s, a dominant player in snack foods after Frito-Lay.
A top industry source said inorganic growth in new product categories is the only way forward for soft drink companies in India to push for growth.
If they were to depend solely on fizzy and flavoured drinks in their respective portfolios, the growth is likely to be in single digits and that too only if the weather is conducive and NGOs don’t train their guns on them. Not surprisingly, cola companies are hedging risks by entering wellness and new-age segments that can be had throughout the year.
(Source: Economic Times)
Since PepsiCo worldwide generates $5 billion surplus cash every year, there’s no limit on the number of acquisitions and the amount that it would pay as long as they add value to the portfolio. The India office has begun work on this and is in the process of identifying potential targets and making their shadow profit & loss accounts, a top source told ET.
Ms Nooyi, an old hand in mergers and acquisitions, built the company’s health and wellness portfolio by leading the PepsiCo team that acquired Quaker Oats —in a $13.8-billion deal—as well as Tropicana juices.
The soft drink company is also looking for alliances with milk co-operatives to jointly explore milk-based drinks, such as cold coffee, lassi and milk shakes.
Pepsi has made only two acquisitions in India so far, the last being Uncle Chipps, which it bought seven years ago for around Rs 10 crore. Though the budget this time is several times more, it remains to be seen how many takeover candidates actually sell out.
Potential acquisition targets:
- Dabur’s Real — the market leader in juices with annual sales of Rs 240 crore — has been pursued by suitors, including Coca-Cola, but the owners are not ready to play ball.
- Another potential candidate Frito-Lay could be looking at is Haldiram’s, a dominant player in snack foods after Frito-Lay.
A top industry source said inorganic growth in new product categories is the only way forward for soft drink companies in India to push for growth.
If they were to depend solely on fizzy and flavoured drinks in their respective portfolios, the growth is likely to be in single digits and that too only if the weather is conducive and NGOs don’t train their guns on them. Not surprisingly, cola companies are hedging risks by entering wellness and new-age segments that can be had throughout the year.
(Source: Economic Times)
Thursday, June 28, 2007
Dabur exits, Emami & Godrej enter fray
Even as Dabur dropped its $250-million acquisition plan of Malaysian consumer goods company Unza due to risk factors, two other Indian players Godrej and Emami are considering bidding for the company.
While Dabur group director PD Narang declined to comment, Godrej Consumer Products executive director and president Hoshedar Press said, “I cannot confirm or deny the move. We keep talking to several companies for potential acquisitions.” But Kolkata-based Emami Group, another keen contender for Unza was more forthcoming. Emami Group director Aditya Agarwal confirmed the move and said, “We are interested in Unza and in talks with them.” Dabur had been close to acquiring a controlling stake in Unza but talks with PE funds had to be suspended because of resistance from the company’s management. Apparently, the management wanted Actis and StanChart to sell their respective stakes to PE funds and not to a strategic investor. The two funds agreed to its condition but couldn’t find a suitable PE partner. Consequently, the two have now decided to put their 60% stake on auction and learnt to have invited bids.
Indian FMCG companies have shown interest for Unza for several reasons. Companies such as Dabur, Marico, Godrej Consumer and Emami believe that overseas buyouts will give them a foothold in foreign markets and be a key driver of their globalisation strategy. It can also act as a derisking strategy against a downturn in the domestic business. For instance, Indian FMCG company Marico’s international business has over the years grown more than 35%. The company acquired soap brands in Bangladesh—Camelia and Aromatic—which have a 1.5% market share in the country. It has helped Marico enter a category through existing brands and allows it to learn about a new segment. Recently, it bought post-wash hair care brands Fiancee and Haircode in Egypt and looking for more such acquisitions in Africa.
(Source: Economic Times)
While Dabur group director PD Narang declined to comment, Godrej Consumer Products executive director and president Hoshedar Press said, “I cannot confirm or deny the move. We keep talking to several companies for potential acquisitions.” But Kolkata-based Emami Group, another keen contender for Unza was more forthcoming. Emami Group director Aditya Agarwal confirmed the move and said, “We are interested in Unza and in talks with them.” Dabur had been close to acquiring a controlling stake in Unza but talks with PE funds had to be suspended because of resistance from the company’s management. Apparently, the management wanted Actis and StanChart to sell their respective stakes to PE funds and not to a strategic investor. The two funds agreed to its condition but couldn’t find a suitable PE partner. Consequently, the two have now decided to put their 60% stake on auction and learnt to have invited bids.
Indian FMCG companies have shown interest for Unza for several reasons. Companies such as Dabur, Marico, Godrej Consumer and Emami believe that overseas buyouts will give them a foothold in foreign markets and be a key driver of their globalisation strategy. It can also act as a derisking strategy against a downturn in the domestic business. For instance, Indian FMCG company Marico’s international business has over the years grown more than 35%. The company acquired soap brands in Bangladesh—Camelia and Aromatic—which have a 1.5% market share in the country. It has helped Marico enter a category through existing brands and allows it to learn about a new segment. Recently, it bought post-wash hair care brands Fiancee and Haircode in Egypt and looking for more such acquisitions in Africa.
(Source: Economic Times)
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