Optimistic for sequential recovery in consumption; to expand play in premium segment: Dabur
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Home-grown FMCG and Ayurvedic products maker Dabur India expects a sequential recovery in consumption in FY26, supported by factors like softening inflation, a good monsoon and improvement in Macroeconomic indicators, its Chairman Mohit Burman has said.The company, which now has three Rs 1,000 crore brands - Dabur Amla, Dabur Red Toothpaste, and Real, is expanding its play into the rural markets and sharpening focus on urban markets by enhancing the portfolio of premium offerings.Besides, it is also exploring adjacent categories to meet evolving consumer aspirations, Burman said in the latest annual report of Dabur India."Going forward, we remain optimistic about a sequential recovery in consumption trends in 2025-26, supported by forecasts of a normal monsoon, improving macroeconomic indicators, sustained government investment in infrastructure, and easing inflation," he said.According to Burman, India, despite having a GDP growth of 6.4 per cent in FY25, a persistent rise in food inflation impacted FMCG consumption, particularly in urban markets."Yet, rural India remained resilient, outpacing urban growth. At Dabur, we embraced this shift with agility and purpose," he said.Dabur has now set an "ambitious target" to expand rural footprint while sharpening our focus on urban markets by enhancing our portfolio of premium offerings, he added.Burman also said Dabur is deepening investments in its key brands, reshaping its portfolio through premiumisation and innovation, and doubling down on health and wellness as a strategic growth platform."Our Go-to-Market transformation, strategic M&A focus, and operating model reinvention are designed to unlock new engines of value creation," he said.Dabur has come up with seven strategic pillars for its growth, which include deepening investment in core power brands, premiuisation, focused bets in high-growth Health and Wellness adjacencies, portfolio rationalisation, strategic acquisitions, with a strategic focus on Health, Wellness, and Premium Personal Care.It will focus on Digital-first and founder-led brands with strong consumer traction, tapping into adjacencies in healthcare -- new age brands in Nutraceuticals and value-added foods and Premium Personal Care brands with high-growth potential in India and global markets.Dabur, which had a Consolidated revenue from operations of Rs 12,563 crore, in which its power brands as Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil, and Vatika -- together account for over 70 per cent of its total portfolio."We are committed to scaling these brands exponentially...," he said.Besides three 1,000 crore brands, Dabur has three Rs 500 crore brands and 16 brands in the Rs 100-500 crore range.Today, 8 out of every 10 Indian households use at least one Dabur product -- a testament to the trust we have built over generations, claimed the top official.Besides, Dabur also rationalise inventory in general trade, witnessing a shift in consumer behaviour, particularly the rise of e-commerce and quick commerce.According to Dabur, its retail reach is among the widest in the FMCG industry, covering 8.4 million retail outlets, up from 7.9 million a year earlier. Its village coverage also expanded by around 16,000 during the year to 1.32 lakh villages.
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