Dabur leans on 'Power of 8' to beat slowdown, sustain medium-term growth

Upward thrust to Ayurveda products with strong push to eight of its power brands and a structurally strong rural presence should help, say analysts

Dabur’s analyst meet, on Friday last week, underlined the continued consumption slowdown mainly in the hinterland. Factors such as liquidity crunch and lower rural wages are dampening consumer sentiment. After drifting down from 9.9 per cent in March 2019 quarter to 6.2 per cent in June 2019 quarter (Q1), volume growth in the FMCG sector decelerated further to 3.7 per cent in July 2019, shows Dabur’s presentation.

This indicates the near-term growth challenges many FMCG companies, including Dabur, are facing. Hindustan Unilever, Dabur, Emami, Bajaj Corporation, Colgate, Britannia, among others have 30-50 per cent revenues coming from rural markets. Though