After five years of concentrating on market share and category consolidation, Dabur India Limited is set to pivot its growth strategy towards premiumization and contemporization, as revealed during its latest investor call.
Mohit Malhotra, CEO of Dabur India, announced a comprehensive 7-point formula aimed at strengthening the company’s long-term growth by introducing premium offerings and modernising legacy brands.
“In the last four to five years, we focused heavily on consolidating our position and gaining market share in core categories such as Chyawanprash, honey, Amla hair oil, home care, and skincare,” Malhotra said. “Now, as we enter the next phase of growth, our strategy shifts to elevating our product offerings and tapping into premium segments.”
Malhotra emphasized that premiumisation, or the strategy of offering high-end, value-added products, will be key going forward. The company has identified new segments in the hair care category, such as post-bath products—serums, conditioners, and masks—as initial focus areas for premium innovation.
He noted that Dabur’s strong foundation, built during a period of difficult macroeconomic conditions including high food inflation and weak urban demand, positions the company well for this strategic shift. “Despite challenges, we gained market share in over 90% of our portfolio,” Malhotra said.
The company also highlighted the growing strength of emerging channels such as modern trade, e-commerce, and quick commerce, all of which grew in double digits. However, traditional urban general trade continued to face pressure.
With food inflation softening and potential tax reliefs on the horizon, Dabur expects a gradual but steady improvement in consumption trends across urban and rural markets.
Financial Performance:
- FY25 consolidated revenue: ₹12,563 crore
- Profit After Tax (PAT): ₹1,768 crore
- Revenue growth: 3.6% in constant currency terms
- Q4 consolidated revenue growth: 2.1% (constant currency), 0.6% (INR terms)
- International business growth: 19.3% (constant currency)
- India business decline: ~3.4%
- YoY PAT decline: 4%
Dabur’s premiumisation strategy marks a significant evolution in its brand journey—one that seeks to appeal to a younger, more urban consumer base while retaining its legacy in natural and Ayurvedic wellness.