Dabur India is optimistic about a gradual uptick in consumption this fiscal year, expecting its power brands to drive growth as it expands into rural and urban markets. Chairman Mohit Burman shared insights on Dabur's strategies and outlook in the company's latest annual report.

 

Rural and Urban Market Expansion

  • Rural Consumption:

    • Dabur expects an improvement in rural consumption, bolstered by predictions of a normal monsoon, improving macroeconomic indicators, continued government infrastructure spending, and lower inflation.
    • The company will continue to expand its footprint in rural areas to capture the anticipated growth in demand.

  • Urban Market:

    • In urban areas, Dabur plans to introduce more premium offerings and enter adjacent categories to attract urban consumers.
    • The focus on premiumization aims to cater to the evolving preferences of urban customers seeking higher-quality products.

 

Power Brands Driving Growth

Dabur's portfolio includes nine major brands, eight in India and one internationally, accounting for around 70% of total sales. Key brands such as Dabur Chyawanprash, Dabur Honey, Dabur Red Paste, and Real juices significantly contribute to the company's revenue and production.

  • Domestic Business:

    • The domestic business, which constitutes 75% of Dabur's overall business, is concentrated in eight power brands.
    • Brands like Dabur Chyawanprash, Dabur Honey, Dabur Red Toothpaste, and Real juices generate 50% of consolidated revenue.

  • International Market:

    • Vatika, Dabur's international power brand, offers a range of personal care products globally.

 

Focus on Quick Commerce (Q-Commerce)

CEO Mohit Malhotra highlighted the emergence of Quick Commerce (Q-Commerce) as a robust channel experiencing exponential growth. Dabur is implementing strategies to capitalize on this opportunity, recognizing Q-Commerce's potential to become more significant in the future.

 

Financial Performance and Brand Portfolio

For the financial year ended March 31, 2023, Dabur India reported revenue from operations of Rs 12,404 crore. The company has a diverse portfolio of over 400 products and more than 1,000 SKUs.

  • Billion-Rupee Turnover Club:
    • Twenty of Dabur's brands have joined the billion-rupee turnover club.
    • Brands such as Dabur Glucose, Dabur Sarson Amla Hair Oil, Hobby, and Dabur Hajmola fall in the Rs 250 crore to Rs 500 crore range.
    • Odonil, Dabur Chyawanprash, ORS, and Dabur Honey generate between Rs 500 crore to Rs 1,000 crore.
    • Real, Dabur Red Toothpaste, Dabur Vatika, and Dabur Amla each have a turnover exceeding Rs 1,000 crore.

 

Conclusion

Dabur India is strategically positioned to leverage opportunities in both rural and urban markets, with a particular focus on expanding its presence in Quick Commerce. The company's robust portfolio of power brands and consistent innovation in premium offerings are expected to drive sustained growth in the coming fiscal year.