 "Dabur, FMCG")
Homegrown FMCG products maker Dabur India is targeting Rs 5,000 crore in sales from its healthcare segment and Rs 7,000 crore from home and personal care vertical in the next 5-7 years, the company said in an investor meeting on Friday.
Both healthcare and home and personal care verticals, part of the consumer care business, are major contributors to Dabur's business. In FY23, together accounted for 56.2 per cent of the consolidated sales of Dabur, which was Rs 11,530 crore.
Besides, the company expects demand for natural products like herbal and Ayurvedic to grow in line with increasing per capita income.
The company will also have more premium products in the power brands as the number of upper-middle-class people would grow. Besides, consumption of Low Unit Packs (LUP) would also grow in the rural markets, said Dabur CEO Mohit Malhotra.
"LUP penetration would grow in this country. Dabur as an organisation, should add more LUP for more penetration in rural. More premium products would be added in all power brands going forward," said Malhotra.
Also Read
Even in the food and beverage segment, the company has plans to expand in the existing categories and enter into new categories as well. Currently, in the food segment, Dabur leads in the Juice segment with brand real.
"We are trying to increase the addressable market of Real," he said, adding it has been now divided into three sub-brands - food, milk and health.
Moreover, Dabur is also extending its Badshah Masala to global markets with the launch of an international region-specific spice range.
The Burman family-led firm acquired Badshah Masala in a Rs 587.52-crore deal last year, marking its entry into the fast-growing spices and seasoning category.
Dabur's Food & Beverages (F&B) business includes fruit-based beverages and a range of food products. The F&B business accounts for 15.1 per cent of its consolidated sales.
The company plans to double its F&B business in the next five years.
It also plans to extend Brand Gulabari to body wash and soaps.
According to the company, penetration of health care is very low in comparison to other adjoining markets.
"We are the market leader with low penetration category...The ownership is on us to grow the category and take pole position," Malhotra said.
Over new acquisitions, he said: "We continue to look for targets but there is nothing on our plate now".
