Dabur India to aggressively pursue M&A opportunities, premiumisation drive
Dabur India Announces Aggressive M&A Strategy and Premiumisation Drive for Double-Digit Growth
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Mohit Malhotra, CEO of Dabur India, outlines the company’s ambitious growth strategy (Photo: Dabur India)
New Growth Strategy Overview
Dabur India has unveiled an ambitious growth strategy that aims to transform the company into a future-ready FMCG powerhouse. The homegrown major announced its plans to aggressively pursue inorganic growth opportunities while focusing on premiumisation across its product portfolio. This strategic shift comes as the company targets sustainable double-digit CAGR in both topline and bottomline by FY28.
As we look ahead to the next phase of our growth journey, we have undertaken a comprehensive refresh of our Vision strategy. Our ambition is to achieve sustainable double-digit CAGR in both topline and bottomline by FY28.
— Mohit Malhotra, CEO of Dabur India
M&A and Portfolio Expansion
The company’s M&A strategy will focus on three key areas: new-age healthcare, wellness foods, and premium personal care. This approach aims to create a future-fit portfolio that resonates with the new generation of consumers. Dabur will specifically target revenue-accretive opportunities that can substantially add to the company’s top line while building a more contemporary product mix.
Strategic Focus Areas
- New-age healthcare products
- Wellness foods segment
- Premium personal care offerings
- Emerging health categories
Premiumisation Drive
Dabur’s premiumisation strategy will span across multiple categories, with specific focus on:
- Hair care: Introduction of serums, conditioners, and masks
- Oral care: Benefit-led toothpastes
- Beverages: Expansion of the Activ range
- Healthcare: New formats including gummies, powders, and effervescents
The company will also make “bold bets” in the health and wellness space, expanding the Hajmola franchise, health juices, and Shilajit products. Additionally, Dabur plans to target emerging need gaps in areas such as gut health, heart health, stress management, and lifestyle management.
Market Trends and Recovery
Despite current market challenges, Dabur India is seeing positive signs in both rural and urban markets. The company reports that rural demand is growing ahead of urban demand, with green shoots beginning to appear in urban consumption trends. This recovery is expected to be supported by:
Market Recovery Drivers
- Moderation in inflation rates
- Tax cuts increasing consumer spending power
- Gradual improvement in consumer sentiment
- Enhanced distribution network
Q4 Financial Performance
In the March quarter of FY25, Dabur India reported a consolidated net profit of ₹320 crore, marking an 8.4% year-on-year decline. The company’s revenue from operations showed marginal growth, reaching ₹2,830 crore compared to ₹2,815 crore in the corresponding quarter of the previous fiscal. The board has proposed a dividend of ₹5.25 per share, totaling ₹1,417.86 crore.
Q4 FY25 Key Metrics
| Metric | Value |
|---|---|
| Net Profit | ₹320 crore |
| Revenue | ₹2,830 crore |
| Dividend per Share | ₹5.25 |
| Total Dividend Payout | ₹1,417.86 crore |
Looking ahead, Dabur India’s strategy combines aggressive M&A pursuits with a strong focus on premiumisation and market expansion. The company’s commitment to exiting underperforming segments while investing in high-growth areas demonstrates its determination to build a future-ready portfolio. With a clear vision for sustainable double-digit growth and a comprehensive approach to market opportunities, Dabur is positioning itself for long-term success in the evolving FMCG landscape.
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