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FMCG major Dabur India aims to garner revenue of ₹7,000 crore from home and personal care segment and ₹5,000 crore from healthcare segment in the medium term, the company’s management said at an investor meet on Friday.
The FMCG major is also looking to double its food and beverage business in the next five years. It is also betting big on transitioning its power brands into power platforms by extending them to adjacent spaces. At the same time, it will look to scale up more brands to the power brand architecture.
In FY23, home and personal care segment garnered ₹3,846 crore in net sales and healthcare business reported net sales of ₹2,581 crore. The food and beverage business posted net sales of ₹1,724 crore.
Responding to a query on the healthcare segment growth projections, Mohit Malhotra, CEO, Dabur India said, “If one looks at the long term, the healthcare business has been growing at about 9 per cent CAGR . So we would want to sustain this high single digit growth momentum.” The company added that this will be backed by focus on stronger scientific claims, strengthening presence in new categories such as babycare, increase share in ethicals segment and scale up doctor advocacy programmes.
Power brands
Overall, the company currently has nine power brands which include Dabur Chyawanprash, Honey, Pudin Hara, Lal Tail, Honitus, Amla, Red Paste, Real and Vatika. Malhotra said that the company’s power brand strategy is evolving into a power platform strategy which involves extending these brands into adjacent spaces and expanding their total addressable market. For instance, the company is extending brand Gulabari into body wash and soaps segment and has forayed in ready-to-cook gulab jamun mix with brand Hommade
“We have currently 17 brands, which are each in the range of ₹100-500 crore (in revenues). We believe there is a huge potential to scale them up further and take them to as many homes as possible. At the same time, there is potential to move more brands to the power brand architecture. For instance, Hajmola is now a ₹350-400 crore brand for us. We’re trying to move it to the power brand structure,” Malhotra stated at the investor meet.
Responding to a query on near term trends, Malhotra said, “With moderation in inflationary trends, we are seeing volume growth kicking in both urban and rural regions and we expect to see a much better year ahead of us as compared to last year. The gap between urban and rural growth is narrowing.”
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