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Dabur plans to double F&B business, expecting massive boost in healthcare and home care sales

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Dabur India, a domestic producer of fast-moving consumer goods (FMCG), has set its sights on achieving sales of INR 5,000 crore from its healthcare division and INR 7,000 crore from its home and personal care sector over the next 5-7 years, as revealed during an investor meeting on Friday.

The consumer care business of Dabur relies heavily on both the healthcare and home and personal care segments. During the fiscal year 2023, these segments collectively constituted 56.2% of Dabur’s consolidated sales, amounting to INR 11,530 crore.

Moreover, the company anticipates that the demand for natural products, such as herbal and Ayurvedic items, will rise in tandem with the growth of per capita income.

Additionally, as the population of the upper-middle-class segment expands, the company plans to introduce a greater number of premium products within its power brands. Dabur CEO Mohit Malhotra also mentioned that there would be an increase in the consumption of Low Unit Packs (LUP) in rural markets.

“LUP penetration would grow in this country. Dabur as an organisation, should add more LUP for more penetration in rural. More premium products would be added in all power brands going forward,” said Malhotra.

In the realm of food and beverages, Dabur is strategizing to not only broaden its presence within existing categories but also venture into fresh segments. Presently, Dabur holds a prominent position in the food sector, particularly as a frontrunner in the Juice segment with its brand “Real.”

“We are trying to increase the addressable market of Real,” he said, adding it has been now divided into three sub-brands – food, milk and health.

Furthermore, Dabur is taking its Badshah Masala brand to international markets by introducing a region-specific spice range tailored for global consumers.

Last year, the Burman family-led company made a significant move by acquiring Badshah Masala in a deal worth INR 587.52 crore, signaling its entry into the rapidly expanding spices and seasoning category.

Dabur’s Food & Beverages (F&B) segment encompasses fruit-based beverages and a variety of food products. This F&B division contributes to 15.1% of its total consolidated sales.

The company intends to achieve a two-fold growth in its F&B business over the next five years.

Additionally, there are plans to expand the Gulabari brand into body wash and soap products.

As per the company’s assessment, the penetration of healthcare is notably lower compared to adjacent markets.

“We are the market leader with low penetration category…The ownership is on us to grow the category and take pole position,” Malhotra said.

Over new acquisitions, he said: “We continue to look for targets but there is nothing on our plate now”.

SnackTeam
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