Tailoring products to nations boosts Indian FMCG sales
23 November 2006
From hair oil for African consumers to coconut gels for Indonesians, that Indian FMCG companies are now looking beyond the Indian the consumer. CNBC-TV18 reports.
The Vatika oil that we see on store shelves isn't what sells in Egypt Dabur makes an olive oil variant especially for that country. You won't find hair gel from Marico in India, but the product has captured 21 per cent of the UAE market. Indian FMCG companies are globalising operations, an initiative that involves much more than simply taking local brands abroad.
Vijay S Subramaniam, CEO, international business, Marico, says, "Over time, we have evolved from an organisation which operated from an export mind set to that of a global mindset. By global I mean understanding your target consumer, target market, and its diversities and compete effectively."
With Parachute available in 26 countries, it's hardly surprising that international business contributes 10 per cent to Marico's topline.
Similarly, Dabur, with five foreign manufacturing facilities, wants to rake in Rs600 crore by 2010 from its overseas operations.
Its 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.