Dabur India Ltd is launching a health drink, Chyawan Jyoti, in an attempt to widen its product portfolio and double revenues by 2010. “We are in the process of launching a malted health food drink into the market soon. The R& D (research and development) on the new product is already over and it is being tested in some markets at present,” said Sunil Duggal, CEO, Dabur India.
Chyawan Jyoti, a chocolate-flavoured drink, will compete with products such as Horlicks in a market for products that the industry calls MFDs (or malted food drinks). In 2006-07, the size of this market was around Rs1,500 crore.
Dabur plans to support the launch of the product, which will be available across India in the next three months, with an advertising and marketing campaign. Actor Amitabh Bachchan, who endorses several Dabur products, will endorse Chyawan Jyoti, too.
The MFD market in India hasn’t grown much over the past three to four years, say analysts. The market is dominated by GlaxoSmithkline Consumer Healthcare Ltd’s (GSKCH) brands such as Horlicks, Boost, Viva and Maltova. Together, these brands account for more than a 70% share of the MFD market. The rest is divided between Heinz India Ltd’s Complan, Cadbury India Ltd’s Bournvita and Nestle India Ltd’s Milo. “At around 10%, the penetration of these products is very low in India. Dabur will have to create massive awareness for its offering to make a place for itself,” said Anand Shah, an analyst with Angel Broking, a Mumbai based brokerage. However, Shah added that Dabur’s presence in the health segment would help: “Dabur already has a strong brand presence in the health segment with its brand Chyawanprash. The latter, at present, is approximately a Rs170 crore brand,” he said.
Dabur India has set its sights on Rs4,000 crore in revenue by 2010. It ended 2006-07 with revenues of Rs1,899 crore. The company also plans to enter segments such as skincare products and tap overseas markets. “We see huge potential in the skin care market and will soon launch two skincare products. One of these will be a premium offering under a new brand name,” said Duggal. Dabur also plans to enter Iran, Morocco and Yemen.