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Business Standard
09-07-2025
- Business
- Business Standard
Dabur India eyes double-digit CAGR by FY27-28 with wellness focus
Homegrown fast-moving consumer goods (FMCG) company Dabur India is hopeful of achieving a sustainable double-digit growth rate by FY27–28 as it adopts a refreshed strategic vision, the company stated in its annual report released on Wednesday. The company added that improving macroeconomic factors and the forecast of a normal monsoon are among the drivers expected to improve the consumption landscape. In a letter to shareholders, Chairman Mohit Burman said he remains optimistic about a sequential recovery in consumption trends in the new financial year. '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,' Burman stated. To spur demand and support growth in the new financial year, the company has identified seven strategic pillars, which it believes will position Dabur to achieve a sustainable double-digit compound annual growth rate (CAGR) in both top line and bottom line by FY27–28. 'These will ensure Dabur remains resilient amid disruption, relevant to new generations, and responsible in its growth approach — setting the foundation for our next leap forward,' Burman added. As part of this strategy, the maker of Real fruit juices and Hajmola candy will deepen investments in its core power brands — Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil, and Vatika — the bedrock of its portfolio, which together account for over 70 per cent of the company's sales. The company is also doubling down on its health and wellness category. It plans to expand the Hajmola and Pudin Hara franchises beyond digestives, scale up health juice offerings to capture market share in functional beverages, and accelerate newer launches like Shilajit, 'which tap into the rising demand for vitality, immunity, and endurance,' the report stated. Dabur is also reinventing its go-to-market strategy by expanding into rural and under-penetrated urban markets through targeted coverage and greater focus on improving distributor return on investment and ensuring faster turnaround times. Additionally, the maker of Amla hair oil will focus on premiumisation and contemporisation across categories, rationalise its portfolio, reinvent its operating model, monitor digital-first and founder-led brands with strong consumer traction, and tap into adjacencies in healthcare and value-added foods for inorganic growth. The company is also working on reducing sugar content by an additional 20 per cent in the Real core beverage range. 'Additionally, we are developing low-sugar and zero-sugar variants to cater to consumers who are conscious of their sugar intake. We already have a wide range of healthy juices under Real Activ with zero added sugar and coconut water, which is a low-calorie beverage with less than 20 kcal,' the report added. In FY25, the company's net profit dropped 4 per cent to ₹1,767.6 crore, while net sales rose 1.2 per cent to ₹12,536 crore.
Mint
09-07-2025
- Business
- Mint
Dabur India confident of FY26 recovery, driven by monsoon, macro factors
New Delhi: Fast-moving consumer goods companyDabur India Ltdexpects a turnaround in consumption trends by FY2025–26, backed by favourable macroeconomic indicators, a normal monsoon, continued government investment in infrastructure, and easing inflation. The firm is also betting big on premiumisation, deeper rural penetration, and digital consumer engagement to drive growth. "We have set an ambitious target to expand our rural footprint while sharpening our focus on urban markets by enhancing our portfolio of premium offerings and exploring adjacent categories to meet evolving consumer aspirations,' Mohit Burman, chairman, Dabur India Ltd, said in the company's annual report released Wednesday. Dabur ended FY2024-25 with a 3.6% jump in consolidated revenues to ₹ 12,563 crore, up from ₹ 12,404 crore a year ago; profit for the full year was down 4.1% to ₹ 1,768 crore. During the year, the company's advertising and publicity expenditure grew 2.2% to ₹ 864.6 crore. The company sells Dabur Red toothpaste, Vatika shampoo, Hajmola and Real drinks. "Our portfolio today includes three ₹ 1,000 crore brands—Dabur Amla, Dabur Red Toothpaste, and Real—alongside three ₹ 500 crore brands and 16 brands in the ₹ 100–500 crore 2024-25, we intensified our consumer engagement through interactive campaigns, community outreach, and digital initiatives that reinforced our commitment to health and well-being. These efforts enabled us to expand our market share across more than 90% of our portfolio, even during a consumption slowdown," he said. Last week, in its quarterly update, the company said its consolidated revenue in the June quarter is expected to grow in the low single digits due to a decline in beverages; consolidated operating profit growth is expected to marginally lag revenue growth. Dabur has yet to announce its Q1 (April-June) earnings. In the March quarter, the company's revenue from operations grew marginally. Last fiscal, the company expanded its retail footprint significantly, entering new villages and broadening its product range. 'Our retail reach is now among the widest in the Indian FMCG industry. A major milestone this year was the signing of a facilitation MoU with the Government of Tamil Nadu to establish our first manufacturing facility in South India. With an initial investment of ₹ 135 crore, scaling up to ₹ 400 crore over five years, this facility will generate direct employment for 250 individuals and create thousands of indirect job opportunities,' Burman said. During the year, the company also rationalised inventory in general trade channels, citing a shift in consumer behaviour with more shoppers buying goods online. This resulted in a temporary dip in Q2 (July-September) sales but strengthened the long-term health of its business and improved the RoI (return on investment) of its distributor partners. Dabur reported strong sales in rural India during the year, with demand outpacing urban India. The company draws a significant share of its business from rural markets. Meanwhile, earlier this year, the company announced a strategic vision to drive double-digit annual growth in both revenue and profit by FY28. The strategy is backed by a seven-pronged approach that includes investing heavily in core brands, expanding in premium categories, updating and modernising its product categories, shedding underperforming products, and aggressively pursuing acquisitions to build a 'future-fit' portfolio. 'Today, seven of our brands—Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil, and Vatika—each contribute significantly to our revenues and together account for over 70% of our total portfolio. We are committed to scaling these brands exponentially,' said Burman. The company also announced plans to exit categories where scalability and profitability remain constrained, such as Vedic Tea, adult and baby diapers, and Dabur Vita; this will help unlock growth capital and sharpen focus. 'We will also be streamlining SKUs (stock keep units) across overlapping segments to reduce complexity in the supply chain and enhance distributor profitability,' he added. 'Our go-to-market transformation, strategic M&A focus, and operating model reinvention are designed to unlock new engines of value creation,' he added. During the year, the company expanded its share of the food business, with the category now contributing 6% of the revenue from its India FMCG business, up from 2% last year. It operates in the packaged ghee, spices, cooking pastes, and culinary products categories. Dabur competes with giants like Marico and Hindustan Unilever in the FMCG market. Notably, HUL has also expressed optimism about demand recovery, citing similar macro tailwinds like low inflation, a normal monsoon, and increased consumer spending.
Business Standard
07-05-2025
- Business
- Business Standard
Dabur to drop weak products, targets double-digit growth by FY28
Homegrown ayurvedic fast-moving consumer goods (FMCG) company Dabur India has taken a call to discontinue certain low-performing products as part of its plan to register near-double-digit growth in financial year 2025-26 (FY26). 'Our ambition is to achieve sustainable double-digit compound annual growth rate (CAGR) by FY28 in both top line and bottom line. This renewed strategy builds on our core strengths while pivoting towards future-ready levers of value creation,' Mohit Malhotra, chief executive officer (CEO) at Dabur India, told investors on a post-earnings call on Wednesday. This strategy of the maker of Hajmola candy and Real fruit juices is anchored on seven pillars, including 'rationalisation of underperforming products and SKUs (stock-keeping units)' in order to release capital for bigger bets. 'A few examples of these are Vedic Tea, adult and baby diapers, and Dabur Vita (nutritious drink brand),' Malhotra added. Other steps include continued investment to add scale to core brands through disproportionate investments thereby increasing penetration and driving market share gains. These include brands like Dabur Red, Real, Dabur Chyawanprash, Hajmola, Dabur Amla, and Odonil. The company will also push the pedal on premiumisation and contemporisation of products across categories. Further, it will be on the lookout for inorganic opportunities, especially in the healthcare wellness space, which can also be extended to foods. Amid a challenging demand environment marked by high food inflation and surge in cost of living, the company recorded an 8.4 per cent fall in net profit to ₹320 crore in the March quarter. The company had recorded a net profit of ₹349.5 crore in the year-ago period. Its net sales, meanwhile, rose 0.6 per cent to ₹2,830 crore from ₹2,814.6 crore in the year-ago period. For the full year, the company's net profit dropped 4 per cent to ₹1,767.6 crore while its net sales rose a meagre 1.2 per cent to ₹12,536 crore. Volume growth, however, was flat during the quarter. The company's foods business reported an over 14 per cent growth during the quarter, while the skin and salon business grew by 8 per cent. The shampoo business, meanwhile, witnessed a 4 per cent jump. The Badshah portfolio recorded around 11 per cent volume growth during the quarter. The company will also be on the lookout for inorganic opportunities, especially in the healthcare wellness space, which can also be extended to foods. . 'So wellness-foods, wellness-healthcare is where we should attempt to get a brand in an inorganic way, while personal care should see more organic initiatives,' Malhotra told investors.
