Ready for the New Dabur? Streamlined Products and Lightning-Fast Delivery Await

Image Source: 5paisa

Dabur India is planning a strategic revamp to refine its growth path, announcing the phase-out of underperforming items and strengthening its emphasis on high-growth e-commerce and quick-commerce platforms. The aggressive step is part of Dabur's vision for sustainable double-digit growth by FY28, even as the company has faced margin challenges lately and a tough customer environment.

Key Highlights:

Portfolio Rationalisation: Dabur will withdraw its low-performing brands like Vedic Tea, adult and baby diapers, and Dabur Vita. This will release capital for investment in core and high-potential brands like Dabur Red, Real, Chyawanprash, and Vatika, which, in aggregate, generate more than 70% of the company's revenues.
E-Commerce & Quick-Commerce Growth: The firm is doubling its bets on digital platforms, having achieved 20% growth in e-commerce and an impressive 70% growth in quick-commerce in Q1 FY25. Quick-commerce now contributes 30-35% of Dabur's online business, a testament to evolving consumer behavior and quick urban adoption.
Premiumisation & Innovation: Dabur will further premiumise its portfolio, particularly in hair care, oral care, and health supplements, and use digital tools to boost market reach and efficiency.
Rural & Urban Expansion: The firm is expanding its rural presence and consolidating stockists for improved ROI with a view to pursuing growth in urban and rural markets.
Aggressive M&A Strategy: Dabur is aggressively pursuing acquisitions in healthcare, wellness foods, and premium personal care to future-proof its portfolio and access new consumer trends.
Financial Snapshot: Although there was a modest decline in net profit to ₹320 crore in Q4 and a modest revenue growth to ₹2,830 crore, Dabur is hopeful about the recovery in demand and long-term growth.