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.