Dabur needs to power up its plan
₹7,000 crore in its home and personal care (HPC) business, and ₹5,000 crore for its healthcare business. Furthermore, Dabur aims to drive double digit growth in the food and beverages (F&B) business. Its domestic business has three key verticals: HPC, healthcare, and F&B, which reported revenues of ₹3,845 crore, ₹2,581 crore and ₹1,724 crore (excluding contribution from Badshah Masala acquisition), respectively, in FY23.
These segments accounted for 47%, 32% and 21% of its domestic revenues, respectively. As such, Dabur’s domestic business accounts for about 75% of its revenues. The rest comes from the international segment.
Going ahead, the company plans to grow international operating revenue in double-digits in constant currency terms. Overall, a key strategy across segments includes strengthening the core and boosting the addressable market by expanding into new adjacencies through power platforms. In this backdrop, the company has been increasing thrust on transitioning to power platforms from power brands.
Besides, it also plans to increase premiumization of its portfolio. Premium products are about 8-9% of its portfolio now. But not everyone is enthused about this.
As analysts from ICICI Securities Ltd said in a report on 18 September: “In our view, its power platform strategy appears to increase business complexity (a key concern for consensus) which Dabur intends to manage through its organizational strengths." Driving premiumization is unlikely to be an easy journey for Dabur given its middle class and rural India positioning, they said. In the near term, like other FMCG companies, Dabur faces risks of weakness in rural demand. However, considering its relatively high exposure to the market, it is more
. Read more on livemint.com
