Dabur refreshes strategy, aims for double-digit growth by FY28

Mint

07-05-2025

New Delhi: Dabur India is revamping its growth strategy to drive double-digit annual growth in both revenue and profit by FY28, as more upstarts vying for consumer spends and categories like quick commerce reshaping retail.
On Wednesday, the maker of Vatika oils and Real fruit drinks outlined a seven-pronged approach that includes investing heavily in core brands, expanding in premium categories, updating and modernizing its product categories, shedding underperforming products, and aggressively pursuing acquisitions to build a 'future-fit' portfolio.
'As we look ahead to the next phase of our growth journey, we have undertaken a comprehensive refresh of our Vision strategy. Our ambition is to achieve sustainable double-digit CAGR by FY28 in both topline and bottomline. This renewed strategy builds on our core strengths while pivoting towards future-ready levers of value creation,' Mohit Malhotra, Dabur India's chief executive officer, said during the company's post earnings call.
Malhotra said the renewed strategy would focus on scaling its top-performing brands—Dabur Red, Real, Chyawanprash, Honey, Hajmola, Amla, Odonil, and Vatika—while also launching contemporary, premium products in segments like healthcare, oral care, and hair care.
"We will continue to add scale to these brands through disproportionate investments thereby increasing penetration and driving market share gains,' Malhotra said.
'Second, premiumization and contemporization across categories. Few examples of these are serums, conditioners, masks in hair care; benefit led toothpastes in oral care; Activ range in beverages; gummies, powders, effervescent in healthcare. Third, bold bets across health and wellness spaces. We will focus on ramping up Hajmola franchise, health juices and Shilajit to name a few,' he said.
On Wednesday, the company reported a 3.6% jump in consolidated FY25 revenues to ₹ 12,563 crore, up from ₹ 12,404 crore a year earlier. Consolidated revenue from operations grew 0.55% to ₹ 2,830.14 crore for the three months ended 31 March 2025. Profit for the fourth quarter dropped 8.3% to ₹ 312.73 crore.
Beyond core brands, Dabur plans to double down on emerging health and wellness categories such as gut health, stress relief, and lifestyle management. It also intends to rationalize its portfolio, exiting underperforming segments like teas, adult diapers, and Dabur Vita to free up resources for bigger bets.
'We will get out of these categories and focus on big bold new products which we have identified and core portfolio where we will invest,' Malhotra said.
Earlier this year, the company noted it had shortened its strategic review cycle from four years to three, citing sector volatility and uncertain macroeconomic conditions. Dabur enlisted McKinsey & Co. to help refine strategies for the next three years, according to Malhotra.
Dabur's product portfolio spans foods, beverages, oral care, hair care, home care, and health items.
Additionally, Dabur plans to overhaul its go-to-market strategy for more effective expansion across urban and rural India, focusing on emerging channels like e-commerce, quick commerce, and modern trade.
'We will also focus on consolidation of stockists for better return on investments, reducing cost to serve in the urban general trade channel and enhanced use of digital tools to boost extraction,' he added.
Dabur is also targeting aggressive mergers and acquisitions to build a future-fit portfolio, particularly in new-age healthcare, wellness foods, and premium personal care. In January 2023, the company acquired a 51% stake in Badshah Masala for ₹ 587.52 crore.
Finally, Dabur will continue refining its operating model to optimize costs, drive efficiency, and enhance agility and digitization across its value chain.
On consumer demand, Malhotra said he expects gradual improvements in the coming quarters.
'Going forward, we are expecting a gradual sequential improvement in consumer demand. Quarter one, then quarter two and three will sequentially keep getting better. Rural is already growing much ahead of urban; urban green shoots will come in gradually,' he said.