Dabur India on Tuesday said its portfolio now consists of 17 brands with sales in the range of ₹100-500 crore. In FY23, five additional brands crossed sales of more than ₹100 crore and these include Honitus, Real Drinks, Odomos and Dabur Herb’l, it stated in its annual report.
In a letter to shareholders, Mohit Burman, Chairman, Dabur India, said, “Today, we have a portfolio of 23 billion rupee brands, with sales greater than ₹100 crore. The year 2022-23 saw 5 brands joining this list. In all, we now have 17 brands that are above ₹100 crore but lesser than ₹500 crore in size; 2 brands that are over ₹500 crore but less than ₹1,000 crore in size, and another 4 brands that have a turnover of more than ₹1,000 crore.”
In terms of inorganic growth strategy, the FMCG major also added Badshah Masala to its portfolio in the previous fiscal. “The year also marked Dabur’s entry into the ground and blended spices category with the acquisition of 51 per cent shareholding of Badshah Masala Pvt Ltd. This acquisition is in line with Dabur’s strategic intent to expand its foods business to ₹500 crore in 3 years,” Burman stated.
Commenting on the macroeconomic conditions, Burman said as pressures of the pandemic receded, high inflation emerged as the new challenge, which pushed up commodity prices to multi-decade highs in many countries. “The inflationary environment also took a toll on consumption patterns as consumers tightened their purse-strings and the consumer goods industry witnessed a slowdown,” he added.
“Despite an uncertain macro climate, I am confident about the resilience of Dabur’s strategy and business construct,” he added.
With reduced prices for most of its key commodities,the FMCG major expects to see expansion in gross margins in the current fiscal. “This expanded gross margin will be allocated in two primary ways. Firstly, a portion will be allocated towards advertising and promotion (A&P) investments, which have experienced some moderation due to high inflation. Secondly, the remaining portion will contribute to gradual improvement of our operating margin,” Dabur India’s annual report said.