Tailoring products to nations boosts Indian FMCG sales

21793 Investors following Dabur India. Share this News with them.

0

Like this story, share it with millions of investors on M3

Tailoring products to nations boosts Indian FMCG sales

From hair oil for African consumers to coconut gels for Indonesians - CNBC-TV18 finds out that Indian FMCG companies are now looking beyond the Indian consumer.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS Dabur busts the nexus of fake hair oil manufacturers Sectors that gave negative returns at 13K level Add money in big FMCG stocks Consumer sentiments are high: ACNielsen Value picks from FMCG and media space ALSO READ See latest News about Dabur India See previous management interviews See what other Experts & Brokerages are saying about Dabur India Dabur India BSE | NSE 25/05/12 Are Mutual Funds betting on Dabur India? Other Stocks in this news Godrej Consumer Products | Marico |

From hair oil for African consumers to coconut gels for Indonesians - CNBC-TV18 finds out that Indian FMCG companies are now looking beyond the Indian consumer.

The Vatika oil that we see on store shelves isn't what sells in Egypt - Dabur makes an olive oil variant especially for that country. You won't find hair gel from Marico in India, but the product has captured 21% of the UAE market. Indian FMCG companies are globalising operations, an initiative that involves much more than simply taking local brands abroad.

Vijay S Subramaniam, CEO - International Business, Marico says, "Over time, we have evolved from an organisation which operated from an export mind set to that of a global mindset. By global I mean understanding your target consumer, target market, and its diversities and compete effectively."

With Parachute available in 26 countries, it's hardly surprising that international business contributes 10% to Marico's topline. Dabur , with five foreign manufacturing facilities, wants to rake in Rs 600 crore by 2010 from its overseas operations.

Its international business grew 19% in the last financial year. Even Godrej Consumer Products' exports grew 10% last year. Many companies see their foreign businesses picking up rapidly.

Sunil Duggal, CEO, Dabur says, "Presently, 13% of our revenues are derived from overseas. Very little is exported out of India, mostly it is manufacturing overseas that is the fulcrum of our overseas expansion. I see this creeping up to 20% three years from now."

Companies are moving abroad. Dabur says it will develop health foods for the US. Godrej wants to hardsell hair colour in Britain and China. So companies are now charting new courses.