Pharmaceutical and household products giant Reckitt Benckiser is to focus on emerging economies by increasing investment in 16 “powermarkets” as it tries to maintain its position as a market leader.

New boss Rakesh Kapoor announced the strategy as he revealed annual operating profits of £2.4 billion, a rise of 12%.

Mr Kapoor said the change in focus will see its European and North American divisions merged in response to weaker consumer spending and greater competition in these regions.

The Berkshire-based company, which owns brands such as Dettol, Nurofen, Durex, Strepsils and Cillit Bang, is not the only UK business focusing on expanding into non-traditional markets.

Mr Kapoor, who took on the top role in September, said: “RB has delivered a decade of superior growth and shareholder value. However, with slower market growth and increased competition, we need to reshape our strategy to enable us to continue our track record of outperformance.”

The Slough-based firm has already named Strepsils, Durex and Nurofen among its “powerbrands”, which make up its core business, while its food section, which includes French’s Mustard, is non-core.