Dabur looks to sharpen its herbal edge as ayurvedic products get a push

As ayurvedic formulations get a renewed push in the fight against Covid-19, can one of the oldest players in the segment step up its game?

Over the past few weeks the AYUSH ministry has stepped up its thrust towards ayurvedic cures and natural immunity boosters and a host of companies, large and small, have jumped in with special products or revamped age-old formulations that offer strength and vitality against a killer-virus. And Dabur, once the only major purveyor of branded ayurveda-based products in the country is doing the same, while it looks to regain its positioning leverage to keep the brand abreast of the times. 

Besides sharpening its ayurvedic messaging, the company is also extending the tag to a larger portfolio of products and hoping to build a stronger association with its herbal-natural heritage within its existing basket of products. The company is extending Brand Dabur into two different categories, home-care and personal care with an emphasis on products that boost immunity. It has in the last couple weeks launched over a half-dozen disinfectant products that include hand sanitizers, all surface disinfectants, air sanitizers, floor cleaners and more. It has also come out with a range of immunity boosters.

Amit Burman, chairman of Dabur says the company will continue to play to its strengths, which is its ayurvedic legacy. The company recently launched “immunity-builders” that include tulsi drops, herbal powders infused with amla, ashwagandha and juices with immunity-boosting natural products. It is also creating immunity kits with a combination of all the products in its portfolio. 

The company expects that the ayurvedic label and strong association of the brand with natural-herbals carries a sharper edge in the marketplace today. Hence its extension into all categories, for instance juices that brings in around 15 per cent of the company's revenue currently. 

Burman says there has been renewed interest in ayurvedic products in the aftermath of the pandemic. “Skin care, gastro care, joint and muscle pain relief, respiratory issues like cough and cold are major categories and of late, the increasing trend is towards remedies for managing lifestyle diseases and non-communicable diseases such as diabetes, heart-ailments and obesity.”

The company is also spreading out into surface cleaning products and disinfectants, in keeping with the rising demand for such products. Siddhartha Nigam, national managing partner, Growth Advisory, Grant Thornton Advisory said, “Categories such as personal immunity, disinfectants and surface cleaning products will see a shift from good-to-have towards must-have or essentials at a much faster rate, especially in tier I and II cities.” 

 Burman says he sees a renewed focus on hygiene in the home. And that is what has led the company to introduce at least half a dozen new products that include all-surface disinfectants as well as air sanitizers. 

Dabur India's CEO Mohit Malhotra says that the battle with Covid-19 means pushing on two fronts. “On the one hand, we are enhancing the production of our existing range and ensuring uninterrupted supplies, and on the other we are strengthening our portfolio with new immunity-booster products.” 

The gold rush for new products is likely to slow down when the epidemic comes under control for all FMCG players however, anything related to personal wellness is here to say for the foreseeable future. Devanghsu Dutta, CEO at retail consultancy Third Eyesight, says “COVID-19 will be there for a while and personal habits have to shift to that reality.” 

However given that the marketplace is now awash with branded ayurvedic products and many companies have announced similar plans of expansion, how does Dabur deal with the competition? 

“The entry of new players helped grow the market for ayurveda and bring in new consumers or non-users into the segment,” says Burman. He believes that the time is now opportune to push for regulatory registration of ayurvedic products in the international markets, which would help propagate and popularise this Indian system of medicine.

Amit Burman Chairman, Dabur Group

How critical is ayurveda to Brand Dabur?
 

 

Ayurveda is always going to be our core strength and while there are new categories that require different materials we will be natural as far as is possible. Our ‘bush to brands’ approach has worked well for us and we derive our natural materials and ingredients from 6000 acres of land that is under cultivation across India.

How do you see the growing competition in the space, given that many brands claim the herbal tag today?

The entry of new players has only helped grow the market for ayurveda and bring in new consumers or non-users into the segment