FMCG major Dabur India has been focusing on a new growth trajectory to drive sustained growth and expand its market presence. The company’s primary focus is on its power brands, which currently include eight brands in India and one in the international market. Dabur aims to develop these power brands into power platforms by introducing a range of products and formats under each brand, thereby expanding its portfolio and total addressable market. Additionally, Dabur plans to include new brands that have the potential to become Rs 100-crore and Rs 1,000-crore brands.
To compete effectively in India’s ayurvedic/herbal-natural products market, Dabur is re-staging its core to reach out to young India. The company aims to strengthen the scientific claims of its products by backing them up with scientific data and clinical trials. Dabur also plans to increase the relevance of its time-tested and efficacious products by introducing new-age formats, such as Chyawanprash in powder format or as tablets and capsules. Moreover, Dabur is focusing on innovative product development, increasing its digital presence, and implementing a new go-to-market strategy to expand its rural footprint and drive relevance across channels and platforms.
Dabur India has set ambitious targets for its three business segments: healthcare, home & personal care, and foods & beverages. The company aims to grow its healthcare business to Rs 5,000 crore per year, home & personal care to Rs 7,000 crore per year, and double the yearly revenue of its foods & beverages business within the next five years.
Dabur recently acquired Badshah Masala with the intention of leveraging its distribution network to make it a national brand within the next two years. The company continues to explore acquisition opportunities in its three business segments. Dabur’s international business has reported significant growth, and the company plans to focus on expanding its core business in the MENA and SAARC regions. Additionally, Dabur aims to become the No. 1 personal care company in Egypt and expand its footprint in Turkey, sub-Saharan Africa, the US, the UK, EU, CIS, Ethiopia, Algeria, and select South-East Asian markets.
RTM Watch’s Take
Dabur India’s new growth trajectory, focusing on power brands and expanding its product portfolio, shows a strategic approach to drive sustained growth in the FMCG market. By targeting young India and enhancing the scientific claims and relevance of its products, Dabur aims to stay competitive in the ayurvedic/herbal-natural products market. The company’s mid-to-long-term targets reflect its ambition to strengthen its position across healthcare, home & personal care, and foods & beverages segments. Dabur’s recent acquisition of Badshah Masala and its plans for international expansion demonstrate its commitment to exploring new opportunities and markets.
