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Dabur India to aggressively pursue M&A opportunities, premiumisation drive
Mohit Malhotra, CEO of Dabur India
Dabur India on Wednesday said it will “aggressively” pursue inorganic growth opportunities as part of its refreshed growth strategy. The homegrown FMCG major said it expects to see a gradual recovery in consumption across both urban and rural regions in the coming quarters. The company will also sharply focus on premiumisation across its businesses while exiting underperforming segments, including baby and adult diapers, Vedic tea, and Dabur Vita.
Speaking on the earnings call, Mohit Malhotra, CEO of Dabur India, said, “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.”
“We will aggressively pursue M&A opportunities to create a future-fit portfolio, particularly focused on new-age healthcare, wellness foods, and premium personal care. We will look at opportunities that are revenue-accretive for us — those that substantially add to the company’s revenue and help us build a future-ready portfolio that resonates with the new generation,” he added.
The company said it will continue to invest in and scale up its core brands to drive market share gains. “We will strongly focus on premiumisation and contemporisation across categories. For instance, we will explore categories such as serums, conditioners, and masks in hair care; benefit-led toothpastes in oral care; the Activ range in beverages; and gummies, powders, and effervescents in healthcare,” Malhotra added.
The company said it will make “bold bets” across the health and wellness space, ramping up the Hajmola franchise, health juices, and Shilajit, among others. “We will also target emerging need gaps such as gut health, heart health, stress, and lifestyle management through existing and new products,” he added. The FMCG major will also “double down” on emerging channels such as e-commerce and quick commerce, while consolidating stockists for better ROI in the general trade channel.
Dabur India posted a consolidated net profit of ₹320 crore in Q4 FY25, registering a decline of 8.4 per cent year-on-year. Revenue from operations grew marginally to ₹2,830 crore in the March quarter from ₹2,815 crore in the corresponding quarter of the previous fiscal. This was due to continued subdued demand trends in the FMCG industry during the quarter. The company’s board has proposed a dividend of ₹5.25 per share, aggregating to ₹1,417.86 crore.
Stating that rural demand is growing ahead of urban demand, Malhotra said the company has begun seeing green shoots in urban demand trends. He said factors such as moderation in inflation and tax cuts putting more money in the hands of consumers will augur well for gradual sequential improvement in the coming quarters.
Published on May 7, 2025
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