News: Dabur open to retail foray
(TT 24/03/2006) New Delhi - Dabur is planning expansion with a possible foray into retail. It is also considering setting up a manufacturing facility in Pakistan.
A ‘vision statement’ charting the Rs 1,500-crore food and personal care company’s diversification and expansion plans will be unveiled next Wednesday.
At present, the top honchos are giving the final touches to the vision statement in Dubai.
The statement will also reveal plans for a major rejig in its international operations, which include dividing the business into two hubs in Dubai and India, sources said.
While Dubai will look after operations in Pakistan, West Asia and Africa, its Indian counterpart will cater to South Asia, the UK and the US, sources said.
The spokesperson for Dabur confirmed that a major announcement was scheduled for next week.
“An announcement on a vision statement is expected to be made next week,” said the spokesperson. He, however, declined to elaborate on the proposals.
The board has proposed to raise the company’s authorised share capital to Rs 125 crore from Rs 50 crore.
“The current capital base was not commensurate with the revenue which topped Rs 1,500 crore last year,” sources said.
The authorised share capital is being increased primarily to fund the increase in the paid-up capital on account of a bonus issue and to meet future requirements. The company, which is debt free, last went public 11 years ago.
Meanwhile, Sunil Mittal-promoted Bharti Enterprises is in advanced stages of discussions with the UK-based Tesco for a foray in the country's organised retail trade. Mittal plans to enter the food processing industry and retail trade would be the next logical step to generate higher revenues.
A senior company official told The Telegraph, “Bharti has an existing interest in the horticulture sector and is exploring the opportunity in food retail. For now, we are evaluating options. This is at an early stage and it would be premature to comment.”
Sources said talks with Tesco have been going on for about six months now on a possible foray into the retail segment by the company. Bharti is likely to set up a separate subsidiary for the proposed retail business.
The horticulture business — Field Fresh Foods — is a joint venture with the Rotchshilds of the UK. It will set up its own facilities in Punjab equipped with greenhouses and cold storage.
Field Fresh Foods would eventually act as the back-end centre of the retail business of Bharti, sources said. The Punjab government has already allotted land to the company for the horticulture venture and would start contract farming with local farmers in the state.
The Punjab government is keen to diversify its agriculture, which is currently stuck in the wheat-paddy cycle. This has lowered the water table and reduced soil fertility.
A ‘vision statement’ charting the Rs 1,500-crore food and personal care company’s diversification and expansion plans will be unveiled next Wednesday.
At present, the top honchos are giving the final touches to the vision statement in Dubai.
The statement will also reveal plans for a major rejig in its international operations, which include dividing the business into two hubs in Dubai and India, sources said.
While Dubai will look after operations in Pakistan, West Asia and Africa, its Indian counterpart will cater to South Asia, the UK and the US, sources said.
The spokesperson for Dabur confirmed that a major announcement was scheduled for next week.
“An announcement on a vision statement is expected to be made next week,” said the spokesperson. He, however, declined to elaborate on the proposals.
The board has proposed to raise the company’s authorised share capital to Rs 125 crore from Rs 50 crore.
“The current capital base was not commensurate with the revenue which topped Rs 1,500 crore last year,” sources said.
The authorised share capital is being increased primarily to fund the increase in the paid-up capital on account of a bonus issue and to meet future requirements. The company, which is debt free, last went public 11 years ago.
Meanwhile, Sunil Mittal-promoted Bharti Enterprises is in advanced stages of discussions with the UK-based Tesco for a foray in the country's organised retail trade. Mittal plans to enter the food processing industry and retail trade would be the next logical step to generate higher revenues.
A senior company official told The Telegraph, “Bharti has an existing interest in the horticulture sector and is exploring the opportunity in food retail. For now, we are evaluating options. This is at an early stage and it would be premature to comment.”
Sources said talks with Tesco have been going on for about six months now on a possible foray into the retail segment by the company. Bharti is likely to set up a separate subsidiary for the proposed retail business.
The horticulture business — Field Fresh Foods — is a joint venture with the Rotchshilds of the UK. It will set up its own facilities in Punjab equipped with greenhouses and cold storage.
Field Fresh Foods would eventually act as the back-end centre of the retail business of Bharti, sources said. The Punjab government has already allotted land to the company for the horticulture venture and would start contract farming with local farmers in the state.
The Punjab government is keen to diversify its agriculture, which is currently stuck in the wheat-paddy cycle. This has lowered the water table and reduced soil fertility.
posted by InCar Group Press Room at 10:29
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