Dabur India Ltd., a leading packaged consumer goods company, has set ambitious goals to increase its revenues in the home and personal care and healthcare sectors. The company plans to achieve ₹7,000 crore in revenues from its home and personal care business and ₹5,000 crore from its healthcare business in the medium term. This growth strategy will involve extending its existing brands into new product categories and consumption occasions, as well as exploring opportunities in e-commerce.
Dabur operates in three main categories: home and personal care, healthcare, and food and beverages. In the fiscal year 2022-23, the home and personal care business accounted for 47.2% of the company’s domestic business with net sales of ₹3,846 crore. The healthcare business reported net sales of ₹2,581 crore, while the food and beverages business reported net sales of ₹1,724 crore.
The healthcare business is expected to experience long-term growth, driven by the increasing demand for wellness products. Dabur’s CEO, Mohit Malhotra, highlighted the consumer shift towards wellness products and the growing focus on physical health as key trends driving this segment. Dabur currently sells popular healthcare products such as Chyawanprash, Honitus, Lal, Hajmola, and Dabur honey.
In the home and personal care segment, Dabur aims to achieve double-digit growth and reach ₹7,000 crore in business in the medium term. The company plans to outperform the category’s growth rate to gain market share. Additionally, Dabur plans to focus on premiumization to expand gross margins. For example, the company has already introduced body washes under its Gulabari brand and aerosols under the Odonil air fresheners brand.
Dabur’s strategy also involves expanding its power brand portfolio by entering new categories under existing brands and increasing distribution. For instance, the company has expanded its Real brand from fruit drinks to include plant-based drinks, aerated fruit beverages, milkshakes, coconut water, and peanut butter. Dabur aims to transform brands such as Hajmola and Odonil into power brands and explore opportunities in adjacent categories.
As part of its growth plans, Dabur aims to scale up its nine power brands, including Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, and Dabur Red Paste. The company also has 17 brands in the ₹100 to ₹500 crore range that have the potential to become power brands in the future. This strategic focus on power brands will involve increased investment in manufacturing, brand management, advertising, and resources.
In the financial year 2022-23, Dabur recorded consolidated revenue of ₹11,529.9 crore, representing a 6% increase from the previous year. The company’s net profit for the same period stood at ₹1,707.1 crore.
Overall, Dabur India is poised for growth in its home and personal care and healthcare businesses by leveraging its strong brand portfolio, extending into new categories, and capitalizing on emerging consumer trends.
Sources:
– Dabur India Ltd.
– CEO Mohit Malhotra
– Live Mint