Dabur India exits non-core categories, plans aggressive M&A and premiumisation to drive future growth
FMCG major Dabur India discontinues low-margin products and outlines a seven-point strategy to achieve double-digit growth by 2028.
INDIA – Dabur India Ltd. has announced a strategic exit from several non-performing product categories, including Vedic tea, diapers, breakfast cereals, sanitisers, and its malted food drink brand, Vita.
The decision is part of a broader portfolio restructuring aimed at accelerating profitable growth and achieving double-digit revenue and profit growth by fiscal year 2028.
Speaking during a post-earnings conference call, Dabur India CEO Mohit Malhotra stated that these product segments have been margin-dilutive and collectively account for less than 1% of the company’s overall revenue.
“The categories that we will get out from are tea, adult and baby diapers, breakfast cereals, the sanitising and Vita categories,” Malhotra said. “We will focus on big, bold equities and invest in our core portfolio.”
The fast-moving consumer goods (FMCG) company has also unveiled a seven-point strategy to drive growth, including continued investment in core brands, a focus on premiumisation and modernisation across categories, bold bets in health and wellness, consolidation of distribution in metro areas, expansion into quick commerce, and aggressive mergers and acquisitions.
The company aims to build a future-ready portfolio that resonates with younger consumers, particularly in healthcare, wellness foods, and premium personal care.
“We are now embarking on our 2.0 journey focused on premiumisation,” Malhotra said.
“We will premiumise categories like serums, conditioners, shampoos, and masks in hair care, as well as introduce benefit-led oral care products, gummies, powders, and effervescent formats in healthcare.”
The company also plans to double down on quick commerce and consolidate stockists in urban general trade (GT) channels to reduce costs and improve return on investment. Enhanced use of digital tools will support efficiency improvements.
Dabur’s core strength lies in its portfolio of nearly seven brands, each nearing Rs 500 crore (US$58.5M) in revenue. These include Dabur Red, Real, Chyawanprash, and Vatika, which together contribute over 70% of the company’s total portfolio.
Dabur also intends to expand its Hajmola range and health juices while targeting emerging health concerns such as gut health, heart health, stress, and lifestyle management.
Despite a decline in net profit during the fourth quarter of FY2024–25, Malhotra expressed optimism about the recovery of consumer demand in both urban and rural India in the coming quarters.
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