Dabur India Ltd is setting up a chain of health and beauty retail outlets spread across the country at an investment of Rs 140 crore over next three years.
The retail venture will be housed as a 100 per cent subsidiary, and will roll out its first few stores by the end of the current year. The company plans to set up 350+ stores during first five 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.
Dabur says that it recognises a clear need gap that exists in health and beauty retail space in India and has an early mover advantage. Early entry would also help engage premier suppliers for the retail operations.
The retail venture will be run under a separate brand name, which will be decided in due course.
According to Dabur, the total retail market size in India is estimated to be $258 billion (approximately Rs 1,145,004 crore), out of which H&B retail accounts for 13 per cent amounting to $34 billion. H&B retail space presents huge opportunity in India, as organised retail penetration is very low at 2 per cent of overall H&B market.
The company's 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 and 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 and herbal products, which operates in H&B segments. This would add significantly to the company's distribution footprint as well.