Focus On Skincare Products Dabur Limited - Dec 03, 2008

Dabur has finally decided to focus on skincare products and give its brands the much-needed international push, four years after Fem''s acquisition. The company is supposed as a slow mover, but now Sunil Duggal is not taking it easy. With Fem in its kitty, Dabur already is gearing up to widen its presence in the Rs 2500 crore skin care category, that has so far been dominated by international giants HUL, P&G, Rekitt Bencksier, Nivea and Loreal. According to sources, Dabur will begin with splitting its skin care business into three.

One will focus purely on the Fem portfolio while the second will ride on Dabur''s existing brand Gulabari. The third will branch into Ayurveda as a stand-alone platform that is to be launched in the 1st quarter of next fiscal. Besides, over the next 15 months, Dabur would also set up a dedicated plant in Himachal for skincare, where Fem already has a plant. The company would invest close to Rs 100 crore.

Fem''s brands so far have only focussed on the middle east markets. But Dabur now plans to give it a global push through its international business divisions. The company will like to leverage Fem''s brand equity to crack the category. But there will be competition from deep pocket global rivals and pricing flexibility will also be limited.