Dabur plans to tread rural path for growth

Dabur, one of India's largest FMCG companies, is banking on the country's rural and semi-urban areas for growth in the babycare segment.

The non-urban areas account for 60 per cent of the company's topline in the segment which continue to grow faster than urban India.

Dabur, which is one of the leading players in the babycare segment, has three products in its portfolio, including the flagship Dabur Lal Tel, which has a market share of 25 per cent.

"The company is especially looking at the digestives and massage categories, within the segment, for the growth since it has a market share of 23 per cent," Parag Agarwal, category head and additional general manager (marketing) told Business Standard.

The babycare market, which is estimated at Rs 1,500 crore, comprises both branded and unbranded segments and is growing at a rate of 17 per cent annually.

Uttar Pradesh and Bihar together constitute 40 per cent of the total babycare segment market.

"We are looking at adding value to our products in the babycare segment, which is basically a generic market and still overwhelmingly dominated by the unorganised sector," said Agarwal.

Meanwhile, the company was conducting clinical trials for some of its products, the results of which were likely by April-end, he said. "The clinical trails will validate our approach to chemical-free products in our portfolio."

Dabur sources farm and agricultural produce at Baddi, Himachal Pradesh for its ayurvedic and natural products.

The company has a countrywide distribution network of 1.5 million retail outlets with interests in personalcare and healthcare products.