Dabur India to set up Retail Venture

Dabur India Ltd has announced that the Company is setting up a chain of Health & Beauty (H&B) retail outlets spread across the country with an investment of Rs 140 Crores over next three years.

The Retail venture will be housed as a 100% subsidiary (proposed-H&B Stores Ltd) of the Company and would roll out its first few stores by the end of the current year. The company plans to set up 350+ stores during first 5 years of operations.

Well-experienced management will guide the retail venture as the company has roped in three expatriates with wide experience in the retail business to drive this new venture.

The company recognized a clear need gap that exists in H&B retail space in India thereby enabling the Company to have early mover advantage. The retail venture would be run under a separate brand name, which will be decided in due course. Early entry would also help engage premier suppliers for the retail operations.

The total retail market size in India is estimated to be US $ 258 bn, out of which H&B retail accounts for US $ 34 bn (13%). H&B retail space presents huge opportunity in India, as organized retail penetration is very low at 2% of overall H&B market.

The product mix will cover: Pharmacy and OTC health, personal care, baby care, Cosmetics, and General Merchandise. Whilst the range of categories is wide, the focus of the proposition will be Health and Everyday Beauty. The stores will maintain a fine balance between own / private labels and brands in their product line.

The store format will be in line with the foreign players like Watsons & BOOTS with store size ranging from 1500-6000 Sq feet. They will be located in good quality malls and premier market places in major cities with high footfalls.

The retail venture is also synergistic with the Company's current portfolio of Ayurvedic & Herbal products, which operates in H&B segments. This would add significantly to the company's distribution footprint as well.

Source : Equity Bulls

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