Latest news with #Hajmola
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Business Standard
08-05-2025
- Business
- Business Standard
Dabur to drop underperforming tea, diapers; focus on Qcommerce for growth
Dabur is going for "rationalisation of underperforming products and SKUS in order to release capital for bigger bets", CEO Mohit Malhotra said Press Trust of India New Delhi Homegrown FMCG major Dabur India will exit categories such as tea, adult and baby diapers, and sanitising products as part of rationalisation of its underperforming products, said CEO Mohit Malhotra. The company, aiming "to achieve sustainable double-digit CAGR by FY28 in both topline and bottomline" has renewed its strategy focus, building on its core strengths, he added. Dabur is going for "rationalisation of underperforming products and SKUS in order to release capital for bigger bets. A few examples of these are Vedic tea, adult & baby diapers and Dabur Vita," said Malhotra during the investors' call. These segments contribute less than 1 per cent to Dabur's revenue, which stood at Rs 13,113.19 crore in FY25. "So we will get out of these categories and focus on big, bold equities which we have identified, and the core portfolio is where we will invest," said Malhotra. Dabur, as per its new vision strategy, would continue to invest in core brands, would focus on premiumisation and contemporisation across categories, take "bold bets" across health & wellness spaces and also aggressively pursue M&A opportunities for creating a future-fit portfolio. Dabur also plans to expand to double down on emerging channels like e-commerce, quick commerce and modern trade, besides effective expansion across urban and rural India. "We will double down on emerging channels like e-commerce, quick commerce and modern trade. We will also focus on consolidation of stockists for better ROI (Return on Investment), reducing cost to serve in the urban GT channel and enhanced use of digital tools to boost extraction," he said. This renewed strategy of Dabur builds on its core strengths while pivoting towards future-ready levers of value creation. As per the strategy, the company will scale up seven brands with annual sales exceeding Rs 500 crore -- Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil and Vatika, which contribute over 70 per cent of its portfolio. "We will continue to add scale to these brands through disproportionate investments, thereby increasing penetration and driving market share gains," said Malhotra. It will go for premiumisation and contemporisation across categories such as serums, conditioners, and masks in hair care; benefit-led toothpastes in oral care; the activ range in beverages; gummies, powders, and effervescents in healthcare. It will also become aggressive across health & wellness spaces. "We will focus on ramping up the Hajmola franchise, health juices and Shilajit, to name a few. We will also target emerging need gaps such as gut health, heart health, stress and lifestyle management through existing and new products," said Malhotra. It will also "aggressively" pursue M&A opportunities for creating a future fit portfolio, particularly focused on new age healthcare, wellness foods and premium personal care.
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Business Standard
07-05-2025
- Business
- Business Standard
Dabur to drop weak products, targets double-digit growth by FY28
Homegrown ayurvedic fast-moving consumer goods (FMCG) company Dabur India has taken a call to discontinue certain low-performing products as part of its plan to register near-double-digit growth in financial year 2025-26 (FY26). 'Our ambition is to achieve sustainable double-digit compound annual growth rate (CAGR) by FY28 in both top line and bottom line. This renewed strategy builds on our core strengths while pivoting towards future-ready levers of value creation,' Mohit Malhotra, chief executive officer (CEO) at Dabur India, told investors on a post-earnings call on Wednesday. This strategy of the maker of Hajmola candy and Real fruit juices is anchored on seven pillars, including 'rationalisation of underperforming products and SKUs (stock-keeping units)' in order to release capital for bigger bets. 'A few examples of these are Vedic Tea, adult and baby diapers, and Dabur Vita (nutritious drink brand),' Malhotra added. Other steps include continued investment to add scale to core brands through disproportionate investments thereby increasing penetration and driving market share gains. These include brands like Dabur Red, Real, Dabur Chyawanprash, Hajmola, Dabur Amla, and Odonil. The company will also push the pedal on premiumisation and contemporisation of products across categories. Further, it will be on the lookout for inorganic opportunities, especially in the healthcare wellness space, which can also be extended to foods. Amid a challenging demand environment marked by high food inflation and surge in cost of living, the company recorded an 8.4 per cent fall in net profit to ₹320 crore in the March quarter. The company had recorded a net profit of ₹349.5 crore in the year-ago period. Its net sales, meanwhile, rose 0.6 per cent to ₹2,830 crore from ₹2,814.6 crore in the year-ago period. For the full year, the company's net profit dropped 4 per cent to ₹1,767.6 crore while its net sales rose a meagre 1.2 per cent to ₹12,536 crore. Volume growth, however, was flat during the quarter. The company's foods business reported an over 14 per cent growth during the quarter, while the skin and salon business grew by 8 per cent. The shampoo business, meanwhile, witnessed a 4 per cent jump. The Badshah portfolio recorded around 11 per cent volume growth during the quarter. The company will also be on the lookout for inorganic opportunities, especially in the healthcare wellness space, which can also be extended to foods. . 'So wellness-foods, wellness-healthcare is where we should attempt to get a brand in an inorganic way, while personal care should see more organic initiatives,' Malhotra told investors.
Mint
07-05-2025
- Business
- Mint
Dabur refreshes strategy, aims for double-digit growth by FY28
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.
