Dabur targets double-digit growth as monsoon, inflation trends align

Chairman Mohit Burman says easing inflation and a normal monsoon support Dabur's strategy to grow revenue and profit via premiumisation, acquisitions, and rural expansion

Homegrown fast-moving consumer goods (FMCG) company Dabur India is eyeing a sustainable double-digit growth rate in both revenue and net profit, supported by normal monsoon and easing inflation, chairman Mohit Burman told shareholders of the company on Thursday.

 

“Looking ahead, we are optimistic. The signs are encouraging. A normal monsoon is on the cards, inflation is easing, and the broader economy is showing signs of steady recovery,” said Burman at the company’s 50th annual general meeting.

 

The maker of Hajmola candy and Real fruit juices has outlined a target of achieving a sustainable double-digit compound annual growth rate in both revenue and net profit by 2027-28.

 

This, Burman said, will be achieved through a refreshed strategic vision, which will “reflect the world we live in today, one that demands both stability and disruption, scale and agility, and a balance between our rich heritage and the modern consumer’s evolving needs.”

 

To frame this vision, the company had enlisted McKinsey & Co. to help refine and align its strategies for the next three years. 

 

As part of this, the company will also push the pedal on premiumisation and contemporisation of products across categories, while being on the lookout for inorganic opportunities, especially in the healthcare wellness space, which can also be extended to foods.

 

In FY25, the company also decided to rationalise its portfolio by discontinuing underperforming products like Vedic Tea, adult and baby diapers, and Dabur Vita (nutritious drink brand).

 

“Our go-to-market transformation is well underway, and we’re sharpening our focus on strategic acquisitions and reimagining how we operate,” said Burman.

 

The company’s portfolio currently includes three ~1,000 crore brands, Dabur Amla, Dabur Red Toothpaste, and Real, alongside three ~500 crore brands and 16 brands in the ~100-500 crore range.

 

“Today, eight out of every ten Indian households use at least one Dabur product, a testament to the trust we have built over generations,” Burman said.

 

The company is also expanding its rural footprint, while stepping up its game in urban markets. Its village coverage expanded by around 10,000 villages in the June quarter, now reaching 1.33 lakh villages.

 

“It’s not just about keeping up, it’s about staying relevant and staying ahead, with purpose and with heart,” he said.