According to Dabur India’s annual report, the company announced on Tuesday that its brand portfolio has expanded to include 17 brands, each generating sales between INR 100-500 crore. In the fiscal year 2023, the company witnessed the success of five additional brands, namely Honitus, Real Drinks, Odomos, and Dabur Herb’l, all of which achieved sales exceeding INR 100 crore.
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 INR 100 crore. The year 2022-23 saw 5 brands joining this list. In all, we now have 17 brands that are above INR 100 crore but lesser than INR 500 crore in size; 2 brands that are over INR 500 crore but less than INR 1,000 crore in size, and another 4 brands that have a turnover of more than INR 1,000 crore.”
In the previous fiscal year, as part of its inorganic growth strategy, the FMCG giant also incorporated Badshah Masala into its portfolio.
“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 INR 500 crore in 3 years,” Burman stated.
In reference to the macroeconomic conditions, Burman remarked that with the alleviation of pandemic-related pressures, a new challenge emerged in the form of high inflation. This inflationary trend led to a significant rise in commodity prices, reaching multi-decade highs in various 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.
Anticipating decreased prices for its key commodities, the FMCG major foresees an expansion in gross margins for the ongoing fiscal year.
“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.
