India’s well-known FMCG company Dabur has said that it will get out of categories like tea, adult and infant diapers and sanitizing products in the coming days. This was stated by the company’s CEO Mohit Malhotra on Thursday. According to PTI news, Malhotra said that Dabur India will take this step as part of rationalizing its poor performance products. During investors’ calls, Malhotra said that Dabur is going to rationalize poorly performing products and SKUS to issue capital for big stakes. Vedic tea, adult and baby diapers and Dabur Vita are some examples of this.
Less than 1 percent contribution to revenue
According to the news, Malhotra said that these segments contribute less than 1 percent to Dabur’s revenue, which was Rs 13,113.19 crore in FY 25. He said that this is the reason why we will get out of these categories and focus on the big, bold equity we have recognized, and the main portfolio is what we will invest. According to its new vision strategy, Dabur will continue to invest in the main brands, focus on premimization and equality in various categories, put “adventure bets” in health and welfare sectors and will aggressively follow M&A opportunities to create a future -friendly portfolio.
E-commerce, quick commerce will be emphasized
In addition to effective expansion in Dabur urban and rural India, e-commerce, quick commerce and modern trade are also planned to expand on emerging channels. The CEO said that we will double expand on emerging channels such as e-commerce, quick commerce and modern trade. We will also focus on the integration of stockists for better ROIs (return on investment), reduce the cost of serving in urban GT channels and increase the use of digital devices to promote extraction. This new strategy of Dabur is based on its main powers moving towards the liver prepared for the future of value creation.
Seven brands will expand
According to the strategy, the company will expand seven brands with annual selling of more than Rs 500 crore – Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil and Vatika – which contributes to more than 70 percent in its portfolio. Malhotra said, “We will continue to increase these brands through inconsistent investment, which will increase the penetration and increase market share. It will grow in hair care, serum, conditioner and mask, beneficial range in beverages, active range in beverages, mumps in healthcare, pudding and prelims in categories.
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