Dabur’s recent financial results have sparked conversations in the market, revealing a 8.35% decline in profits due to lower demand, particularly in urban areas. Despite witnessing strong growth in modern trade, e-commerce, and rural sectors, the company’s CEO, Mohit Malhotra, has acknowledged the challenges faced in urban consumption. To tackle these issues, he has unveiled a comprehensive seven-point strategic plan designed to achieve a double-digit compound annual growth rate (CAGR) by FY28.

Focus on Core Brands

At the heart of Dabur’s strategy is a renewed emphasis on its core product lineup. This includes well-known brands such as Dabur Red, Real, Chyawanprash, Honey, Hajmola, Odonil, and Vatika, which collectively contribute to around 70% of the company’s revenue. Dabur is set to increase investments in these key brands to enhance market share while also eliminating underperforming categories like vedic teas and diapers to ensure wiser allocation of resources.

• Core Brands to Watch:
  • Dabur Red
  • Real
  • Chyawanprash
  • Honey
  • Hajmola
  • Odonil
  • Vatika

Premium Offerings and Market Expansion

In a bid to improve profit margins, Dabur is committed to promoting premium products across its portfolio. The company is targeting emerging segments such as hair serums, conditioners, and health gummies, and is set to introduce zero-sugar, preservative-free beverages. According to Malhotra, this initiative aligns perfectly with changing consumer preferences, allowing Dabur to transition toward higher-value products.

Streamlining Urban Operations

To counter urban trade challenges, Dabur plans to streamline its stockist network, aiming to enhance return on investment and lower service costs in metropolitan areas. The company also intends to bolster its presence in rapidly growing channels like e-commerce, quick commerce, and modern trade, which have shown consistent growth momentum.

Inorganic Growth Strategies

Dabur is not just focusing on organic growth; it is also considering mergers and acquisitions in sectors such as new-age healthcare, wellness foods, and premium personal care. Malhotra views this strategy as essential for creating a resilient portfolio that meets the evolving needs of consumers.

Looking Ahead

As for future expectations, Dabur anticipates a gradual recovery in sales from the April–June quarter, aiming for high single-digit to low double-digit revenue growth in FY26. For the fiscal year FY25, the company reported a decline in net profit, dropping to Rs 1,740.42 crore from Rs 1,811.31 crore the previous year. The board has recommended a final dividend of Rs 5.25 per equity share for shareholders.

Dabur’s strategic adjustments reflect its commitment to adapt and thrive in an ever-changing market, promising a more robust future for the company and its stakeholders.