Home-grown FMCG major Dabur is taking significant steps to enhance the reach and prominence of its digestive brand, Hajmola, and its mosquito repellent brand, Odomos. CEO Mohit Malhotra has revealed strategic plans to elevate these brands to the coveted status of “power brands” within Dabur’s extensive portfolio. Presently, Dabur boasts a strong lineup of nine distinct power brands, with eight dominating the Indian market and one thriving in international markets. These power brands collectively contribute a substantial 70 percent to the company’s total sales.
At present, a significant portion of Dabur’s revenue, accounting for 75 percent, is derived from its domestic operations. This domestic business primarily centers around eight power brands, namely Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Real.
Vatika serves as Dabur’s global power brand, delivering a diverse array of personal care products tailored to the international market.
During his recent address at the investor meet, Malhotra disclosed that Dabur presently boasts 17 brands with revenue ranging from above INR 100 crore to less than INR 500 crore in size.
“We have 17 brands, which are in the range of INR 100-500 crore. These are the brands for the future, which we will scale up. If you look five years prior, they all were sub-INR 100 crore brands,” he said.
Furthermore, Malhotra emphasized Dabur’s intention to expand these brands, leveraging their existing scale, and aims to introduce them to as many households as feasible.
“Hajmola for example, we are trying to push it into a power brand. Though, it has not reached that scale. Right now it’s a INR 350-400 crore brand for us. We are trying to move it to the power brand structure,” he said.
Malhotra further added, “For Odomos, it is still the same. It is still not a power brand (acquired from Balsara), we are trying to scale it up… as we scale up the turnover of the brand, we will keep moving into power brand architecture.”
Dabur’s power brand strategy will involve increased manufacturing, broader distribution, and expansion into related market segments.
“More resources would be invested into the brands (power), more brand managers would be working on it and more bandwidth would be deployed on these brands besides cash deployment in terms of advertising,” Malhotra added.
The company is structured into three divisions: healthcare (HC), home and personal care (HPC), and food and beverages.
“We will scale all brands,” he said. Dabur is extending its brand Gulabari into the body wash and soaps segment and has forayed in ready-to-cook gulab jamun mix with the brand Hommade.
Its juice brand Real revenues are around INR 1,600 crore and it is on track to surpass the INR 2,000 crore milestone in the next few years.
Dabur’s Real brand has undergone a remarkable evolution, branching out from its initial presence in the juices and nectars category to encompass a wide array of offerings. These now include fruit drinks, an extensive PET portfolio, aloe vera-infused beverages, plant-based options like Soya and Almond drinks, effervescent fruit beverages, creamy milkshakes, refreshing coconut water, nutritious superfoods like Real Seeds, and most recently, the exciting addition of Real Peanut Butter to its product line.
Dabur’s brands such as Dabur Red Paste, Dabur Amla, and Vatika achieve annual sales figures ranging from INR 1,000 crore to INR 1,500 crore, whereas Dabur Chyawanprash and Dabur Honey fall within the revenue bracket of INR 500 crore to INR 1,000 crore.
Malhotra stated that for its international business, which accounts for a quarter of the company’s revenue, the company will leverage regional insights and innovations.
In addition to Vatika, Dabur maintains its international presence with brands like Dabur Amla, Hobby, ORS, and acquired brands. Malhotra also mentioned that the company is actively developing other brands within the oral care and skin care segments, including Dermoviva, to further expand its portfolio.