Dabur aims for Rs. 7,000 crore (US$ 842.23 million) in revenues in home and personal care segment
Dabur India, an FMCG company, stated that it intends to increase its Home and Personal Care (HPC) business in the double digits, with a medium-term sales target of Rs. 7,000 crore (US$ 842.23 million). The company also intends to generate Rs. 5,000 crore (US$ 601.59 million) in revenue from its healthcare segment.
The care segment's two verticals, HPC and healthcare, both play a significant role in Dabur's operations. They accounted for 56.2% of Dabur's consolidated sales of Rs. 11,530 crore (US$ 1.38 billion) in FY23. The company intends to grow in the foods and beverages category by double digits over the medium and long term as a result of healthier and higher quality products, improved product communication, and appealing packaging.
To help accelerate growth in the HPC segment, the business intends to drive core category growth in order to enhance market share, improve penetration, and increase the Total Addressable Market (TAM) by entering a new/adjacent category or extending product offerings in an existing category.
It also intends to meet the Rs. 7,000 crore (US$ 842.23 million) target by growing its distribution network, increasing the premiumisation mix, and executing the Regional Insights for Speedy Execution (RISE) approach. As the number of upper-middle-class people grows, the corporation will have more premium products in its power brands. Furthermore, consumption of Low Unit Packs (LUP) would increase in rural areas, according to Chief Executive Officer Mr. Mohit Malhotra. He also said, "LUP penetration would grow in this country. Dabur as an organisation, should add more LUP for more penetration in rural. More premium products would be added in all power brands going forward".
Meanwhile, the healthcare vertical grew at a 9% CAGR from FY20 to FY23. By transforming strong brands into platforms, which will enable them to enter different categories, the company now hopes to increase its business within the next five years.
Philip Capital said in their report after the company’s analyst meeting, “Dabur intends to concentrate on the baby care (Rs. 11,000 crore (US$ 1.32 billion)) and premium tea (Rs. 6,000 crore (US$ 721.91 million)) categories." For baby care, it intends to pursue a strategy of advocacy through doctors rather than traditional advertising, as customers recruited drop out of the category after 3-4 years and there is no point in spending endless money on recruiting new customers year after year".
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.