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Thursday, June 10, 1999

Dabur India to use Vatika as umbrella brand for haircare range 

UNITED NEWS OF INDIA  
New Delhi, June 9: The leading Indian FMCG company Dabur India Limited (Dabur) will leverage `Vatika' as an umbrella brand for all haircare products, company sources said. Riding on the brand's success, Dabur is now identifying several haircare products to be introduced under the Vatika brand, the sources told UNI here.

``We have already introduced hair oils and shampoos under the Vatika brand and are now looking at other haircare products to be brought under the umbrella brand. This is part of the major restructuring which Dabur is undertaking at present.''

``We are looking at products which would suit Indian tastes and conditions and also go with the company's very Indian image. This would include specialised hair oils and shampoos,'' the sources said. However, Dabur is not keen on introducing hair conditioners under the brand.

Under the restructuring programme, the company has already initiated the process of phasing out Keshraj, a cooling hair oil brand. According to the sources, Keshraj was ``neverpromoted seriously''. ``Besides, with Vatika gaining popularity in the market, the company is now planning to push it as Dabur's premium haircare brand.''

Besides, two other brands--Dentacare and Level--are also being bundled out. While the process for phasing out Keshraj has already been initiated, Dentacare toothpowder would be bundled out in two months and Dentacare toothpaste a little later, the sources said.

The company is also exploring the feasibility of moving out of cooking oils, which are currently being marketed under the Level brandname. Dabur is also keen on putting these brands on the block.

``We do not mind selling off these brands, though we are not sure if they would attract any buyers. All these brands do not have any major brand equity so we have decided to bury them. Besides, these were also not our core businesses,'' he added. The decision to phase-out Dentacare toothpaste and toothpowder brands was taken after Dabur recently purchased Binaca. ``We feel Binaca has a lot more brandequity and so we intend to push it.

Besides, the Dentacare toothpaste was launched only in Kerala and did not have a major marketshare.''

Though a final decision regarding Level is yet to be taken, the sources pointed out that its phase-out would mark Dabur's exit from the cooking oil segment. ``We do not have a unit of our own and the margins are not good enough for procuring these oils and branding them. We feel there is no question of continuing with this business.''

Meanwhile, Dabur Pharmaceuticals Limited, a subsidiary of Dabur India, is planning substantial investments in clinical trials of its New Livfit herbal drug, which claims to treat hepatitis-infected patients.

``In order to make this product a success, extensive clinical trials are needed. Dabur Pharmaceuticals has already planned substantial investments for these trials and some of them are well on their way,'' company officials said.

Dabur has already applied for patents in India, US and Europe for the product. It has already beenaccorded the `European Patent Protected' status for its efficacy in hepatitis B and E virus infections. The patent protection is an interim measure, which precedes the actual grant of a patent.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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