ibnlive » Business

Nov 24, 2006 at 11:28am IST

Indian FMCG companies go global

Mumbai: The Vatika hair oil, which is available in India, isn't what sells in Egypt. Dabur makes an olive oil variant especially for Egyptians.

A different type of hair gel from Marico, which is not available in India, has 21 per cent of market share in the UAE.

Indian Fast Moving Consumer Goods (FMCG) companies are globalising their operations. That's more than just taking local brands abroad.

"Over time we have evolved from an organisation, which operated from an export mindset to that of a glocal mindset. By glocal I mean you understand your target consumer, your target market, its diversities and compete effectively," said Marico International Business CEO Vijay S Subramaniam.

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

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

"Presently 13 per cent 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 per cent three years from now," said Dabur CEO Sunil Duggal.

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