By Nuvama Research
Dabur recently hosted its Capital Markets Day, where it outlined several key initiatives aimed at driving growth in its Power Brands via Recovery in healthcare portfolio where Dabur is focusing on its higher-margin healthcare portfolio, led by former Himalaya CEO Philipe Haydon; expansion of international business wherein the company is actively expanding its presence in international markets; market share gains across its product portfolio; expansion of overall TAM (total addressable market which is currently at 3.2 times FY19 levels; a growing e-commerce play and expansion of distribution footprint—e-commerce sales currently make up 9% of Dabur’s business, and the company plans to further strengthen its online presence.
Dabur stands out among competitors like HUL and P&G due to its unwavering focus on Ayurveda and its commitment to natural, herbal products. This dedication to its core values remains firm. In 2022, urban population reached 36%, a significant increase from the 17% recorded in 1951. Dabur is strategically repositioning itself to resonate with the younger generation of India while maintaining alignment with its core product offerings.
As urbanisation continues to grow, Dabur anticipates strengthening its distribution network. Simultaneously, as the population’s affluence increases, the company will prioritise premium product segments. Dabur aims to enhance market share, promote premiumisation, and expand its presence in rural areas through its brand portfolio.
By transforming its Power Brands into ‘Power Platforms,’ Dabur has expanded its market from Rs 400 billion to Rs 1.2 trillion. Notably, Hajmola is being integrated into the Power Brand category, currently contributes Rs 3–3.5 billion to the business, while Fem is an approximately Rs 1 billion brand. The salience of premium products within Dabur’s portfolio will range from 8% to 9%. The company is actively addressing gaps in premiumisation by scaling up existing categories and venturing into new related areas.