Dabur India expects its fruit drinks and milkshake portfolio to end the fiscal year with sales of ₹200 crore and foods business with sales of ₹160 crore. The company is also augmenting its capacity in the beverage season before the summer season kicks-off.
On an investor call post the release of Q3 results, Mohit Malhotra, CEO, Dabur India said, ”Fruit drinks and milkshake portfolio (excluding juices and nectar portfolio) reported strong growth and will exit the year with ₹200 crore revenue, which is very significant and should very soon become a ₹500 crore franchise.”
The company marked its foray into the fruit drinks and carbonated beverage segments in FY22, expanding its overall beverage portfolio, which includes juices and nectars under brand Real.
“In the juices and nectars segment too, we’ve been consistently gaining share and we’ve gained 250 basis points. So, our competitive position in the market is excellent,” he added.
Talking about the company’s food business, Malhotra said that the foods business will end the fiscal at about ₹160 crore (excluding Badshah Masala business). “We have given guidance to the market that this (foods) business will also become ₹500 crore in the next 3 to 4 years. So, we are well within our reach, and the food business has grown by over 30-40 per cent on the back of the launch of oils, ghees, pickles, and chutneys, and almost getting into 5 more categories to increase our total addressable market. And Badshah portfolio will bolster that effort for us,” he added.
With an eye on the summer season, the homegrown FMCG major said its expanding capacity at its beverage plant at Pantnagar. “We are also setting up a new plant in Indore and also in Jammu. Jammu is for our aerated beverages and Indore is for our drinks segment, which is sold at ₹10 and ₹20 price points. So, I think we are pretty much geared up and I don’t think we should face any capacity constraints in the summer season,” Malhotra said.