Dabur to drop 3 brands, use ''Vatika'' as umbrella

Dabur India Ltd, the Rs 915-crore healthcare company, has initiated a major restructuring exercise and plans to phase out three consumer brands – Keshraj (hair oils), Dentacare (dental care products), and Level (cooking oil). The company is also planning to position ''Vatika'' as an umbrella brand for all haircare products it intends to introduce in the near future.

The Delhi-based company has already started phasing out operations for the Keshraj brand of ‘cool’ hair oils and will eliminate the Dentacare brand of toothpowder and toothpaste in the next two to three months.

The decision to bury the dental care brands is in line with Dabur''s plan to consolidate its recently purchased brand Binaca, which enjoys a better brand equity than Dentacare. The Dentacare brand has been launched only in Kerala.

Considering the success of the Vatika brand, Dabur has identified several haircare products to be launched under this brand. The company has already introduced hair oils and shampoos under the Vatika brand, and is planning to extend the brand name to specialised hair oils and shampoos too.

Dabur is also contemplating moving out of the cooking oils business, marketed under the brand name Level. Though the company does not own a manufacturing facility, it has been procuring these oils and branding them. One company officials said that margins are not good enough.

Dabur recently liquidated a 20 per cent share in Excelsia Foods Ltd to Nestle SA of Switzerland. With this, Nestle''s holding in Excelsia Foods increases to 60 per cent, while Dabur''s holding is reduced to a minority of 40 per cent (click here for details).