Dabur India is proactively pursuing potential acquisitions in the healthcare and home & personal care sectors, specifically directing its attention to the direct-to-consumer (D2C) arena. The company is keen on tapping into the expanding market for contemporary brands and perceives the current valuations in the online space as more favourable, particularly given the prevalence of numerous D2C brands. Dabur intends to utilise its substantial cash reserve of ₹7,000 crores for strategic acquisitions that harmonise with its overarching growth strategy.
In the earnings call conducted on Thursday, Mohit Malhotra, the CEO of Dabur India, underscored the company’s keen interest in D2C acquisitions, placing particular emphasis on the meticulous financial evaluation of companies synergistic in healthcare, personal care, and skincare. The primary goal is to augment margins by strategically investing in brands that align seamlessly with Dabur’s existing portfolio.
Dabur reported a noteworthy 3.52% rise in consolidated net profit for the quarter, reaching ₹456.61 crores. The consolidated revenue experienced robust growth, registering an 11% increase year-on-year, totaling ₹3,130.47 crores. Mohit Malhotra, the CEO, reported that Dabur’s gross margins for the quarter were at 46.6%, indicating a year-on-year growth of 74 basis points. As part of its strategic approach, the company is actively expanding its presence in the D2C space, encompassing e-commerce channels, with the aim of introducing innovations under established brands and exploring potential inorganic opportunities.
Dabur’s focus on the direct-to-consumer (D2C) segment is in line with its objective to capture the rapidly expanding premium market segment and enhance its footprint in urban areas. The company holds a positive outlook on the revival of rural markets, which is expected to contribute to the growth of its general trade business.
Apart from pursuing acquisitions, Dabur aims to emphasise innovation as a strategy to appeal to the preferences of modern consumers and perpetuate the ongoing development of its brand lineup. The company’s collection of nine power brands, such as Dabur Chyawanprash, Dabur Honey, and Real, plays a pivotal role, contributing 70% to the overall sales. The strategic approach entails nurturing and evolving these influential brands, with a long-term vision to achieve a twofold increase in Real’s turnover within six years. Additionally, there is an aspiration to elevate the turnover of three ₹1,000 crore brands—Dabur Amla, Dabur Red, and Vatika.
Dabur’s recent investment in acquiring a majority stake (51%) in Badshah Masala and its venture into global markets showcase the company’s dedication to shaping a forward-looking organisation equipped with a diverse portfolio of brands.
