Dabur takes on multi nationals

Dabur India's toothpaste brands have been growing faster than the oral care segment as a whole, transforming a market that has traditionally been dominated by multinational behemoths Hindustan Unilever and Colgate.

According to AC Nielsen data for April-December 2007, Dabur's three toothpaste brands, Dabur Red, Babool and Meswak, together reported 37.1 per cent value growth in the period against the segment growth of 13.5 per cent.

With this, Dabur's toothpaste market share grew to 12.2 per cent in volume terms in 2007 as against 10.1 per cent in 2006. In value terms, Dabur's toothpaste market share has risen to 9.1 per cent in 2007 from 7.7 per cent a year ago.

On the other hand, Colgate and HUL's Pepsodent have shown a decline in market share in 2007. While Colgate's volume market share dropped to 36.6 per cent from 37.4 per cent in 2006, Pepsodent's slid to 12.5 per cent from 13.7 per cent in 2006. Dabur's Babool, on the other hand, saw a growth in its market share to 5.3 per cent from 3.8 per cent in 2006.

Dabur's toothpaste brands have been the fastest growing oral care brands for two consecutive years. Its portfolio registered 33.8 per cent growth in value terms in 2007 against the industry growth of merely 13.2 per cent.

Dabur brands have also shown the fastest volume growth in the toothpaste category, reporting a 31.5 per cent growth as against an industry average of 9.4 per cent in 2007.

"We have been consistently making investments in product upgrades and brand building activities of every brand, including the ones acquired from Balsara. Appointing film star Vivek Oberoi as a brand ambassador to endorse Babool is one such initiative," said Sunil Duggal, chief executive officer of Dabur India.

According to Anand Shah, retail and FMCG analyst at Angel Broking, "HUL has been drifting away from oral care business to focus on its other diverse businesses. Its oral care portfolio consists only of premium products and it should look at introducing more products at the lower-end of the category to be present across price-points like Dabur."

Toothpowder continues to be an interesting category for Dabur. While its Dabur Lal toothpowder continues to be a high-growth brand, the company has decided to expand its portfolio.

"We have recently expanded our presence in the toothpowder market with the introduction of a white toothpowder under the Babool brand. Babool white toothpowder is being currently test marketed in Maharashtra," Duggal added.