Dabur India unveils strategic roadmap for its retail venture

1. Plans Chain Of Over 350 Stores On The Health & Beauty Format
2. Targets Revenues Of Rs 1,700 Cr In 5 years
3. Business To Operate As Subsidiary Of Dabur India
4. Announces Interim Dividend Of 75%

Dabur India Limited, a leading FMCG company in India with a consolidated turnover exceeding Rs. 2000 crores, today announced plans to enter the high-growth organized retail market in India. The Board of Directors of Dabur India today approved its entry into the organized retail market in India through a wholly-owned subsidiary, H&B Stores Limited (under incorporation).The Board of Directors of Dabur India Ltd also announced an interim dividend of 75% for 2006-07, on the enhanced capital (post-Bonus issue). With this, Dabur India has announced a total dividend of 213% for the 2006-07 fiscal on pre-Bonus capital.Dabur India will invest Rs 140 crores by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. As part of its plans to provide a world-class retailing experience to consumers across India, The Company plans to establish stores ranging from 1,500 sq ft to 6,000 sq ft in size, offering international quality store environment and product range.Three senior professionals and experts from the global retail industry have been roped in to drive Dabur India's retail foray. These expatriates have retail experience of more than 25 years each, encompassing merchandising, store design and sourcing.Mr. V C Burman, Chairman, Dabur India Ltd, said, "Retail is the next big focus area for Dabur India. H&B Stores Limited plans to set up 350 retail stores across India in 5 years and expand it to over 1,000 stores by its 10th year of operation."Dabur India's Health & Beauty Stores would roll out in Metro and Tier-1 cities in 2007-08. "The Company recognized a clear need gap that exists in Health & Beauty retail space in India, thereby enabling Dabur to have early mover advantage. The retail venture would be run under a separate brand name, which will be decided in due course. H&B Stores expects to start generating profits by the 4th year of operations with revenue exceeding Rs 1,000 crores," said Mr. Sunil Duggal, Chief Executive Officer, Dabur India Ltd."Organized retail, which currently accounts for only 3% of the total retail market in India, has tremendous growth potential in the fast expanding Indian economy. Dabur India, with its in-depth understanding of the Indian consumer and capability to deliver a great experience at affordable prices, is uniquely placed to enter the Indian retail sector. We will bring great value to consumers by offering quality products at affordable prices," said Dabur India Ltd, Group Director-Corporate Affairs, Mr. P D Narang.This venture is also synergistic with Dabur's current portfolio of Ayurvedic & Herbal products and would add significantly to the company's distribution footprint.

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