Dabur to focus on premiumisation, contemporisation as strategies, shared 7-point formula
Dabur India
is now actively shifting its strategy towards premiumisation and contemporisation, the company revealed during its latest investor call.
Mohit Malhotra, Chief Executive Officer of Dabur India Limited, stated that the company has formulated a fresh 7-point strategy to tap the market in the coming future.
Premiumisation is a marketing strategy where companies aim to make their products or services appear more high-end, desirable, and valuable, ultimately leading consumers to pay more for them.
Elaborating on the strategies, Dabur's CEO Mohit Malhotra said, "So if you look at the past 4 to 5 years, we've generally focused on increasing market share and consolidating our business in each of the categories."
"But premiumisation has been a lesser focus and it was a deliberate attempt because we wanted to bring Dabur Amla back on a growth path and gain market share. Now that we've done all the gaining market shares in Chyawanprash, in Honey, in Amla, in Home Care, and in Skin Care, now it's a 2.0 journey to embark upon premiumisation and contemporisation," he added.
"We have identified segments that we will enter for premiumisation, like in Hair Care, we always focused on gaining market share in Dabur Amla. Going forward, you will see our concerted effort on premiumisation of post-bath categories like serum, conditioners, masks, etc.," said the Malhotra.
He further added that the last fiscal was a challenging year due to the slowdown in urban consumption, high food inflation and unfavourable season but company's business fundamentals remained strong as they gained market shares across 90 per cent of the portfolio.
"Emerging channels comprising modern trade, e-commerce, and quick commerce grew in double digits, although general trade in urban markets remained under pressure," he added.
As per Dabur's top official, the company remains optimistic due to the declining food prices and tax cuts going forward.
"So going forward, sequential improvement is what we are seeing, but a gradual sequential improvement," he added.
According to the information shared by Dabur's top officials, Fiscal year 2024-25 ended with the consolidated revenue of Rs 12,563 crores and Profit After Tax (PAT) of Rs 1,768 crores. Consolidated revenue growth was 3.6 per cent in constant currency terms.
During the fourth quarter, consolidated revenue of the company grew by 2.1 per cent in constant currency terms and 0.6 per cent in INR terms. Company's international business exhibited a growth of 19.3 per cent in constant currency and Indian business declined by around 3.4 per cent.
The financial results show that Dabur's consolidated bottom line declined by 8.4 per cent on a yearly basis and profit declined 4 per cent to Rs 1,767.63 crore, while the revenue was flat. (ANI)
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