New Delhi: FMCG major Dabur, which is currently hunting for acquisitions in the African continent, is setting up its second manufacturing facility in Egypt as part of its expansion plan in the region.
The company is also aiming to increase contribution from international markets to 25% in its overall business in the next two to three years from 20% now.
“We are in the process of setting up a new manufacturing facility in Egypt to cater to the growing demand in Africa and the neighbouring markets,” Dabur India chief executive officer Sunil Duggal told PTI.
Dabur already has two units in the continent, one in Nigeria and another in Egypt. The proposed unit, which is likely to be completed by this fiscal, would make personal care products.
The company said the proposed plant will help its foray into East, West and South Africa, where it is in the process of setting up a distribution network.
“Dabur already has a sizeable presence in the Middle East and North Africa. We are now looking at expanding our presence to other parts of Africa, starting with East Africa in the first phase, to be followed by West and South Africa,” he said.
Duggal said Dabur is currently scouting for acquisitions in Africa and is ready to spend up to Rs1,000 crore for it.
“While the intent would be to look for smaller acquisitions, Dabur has the capability to even go in for big ticket acquisitions of up to Rs1,000 crore if we come across a good and viable target,” he said.
In the international market, the company currently sells brands like Dabur Amla and Vatika amongst others.
“Personal care and health care, including oral care, are the key growth drivers for Dabur in the international markets ...The overseas business now accounts for nearly 20% of Dabur’s consolidated turnover and we expect it to grow to about 25% over the next 2-3 years,” he added.