Consumer goods company Dabur, valued at $11 billion, took out a front-page newspaper advertisement this week carrying photos of unbranded toothpaste packs that resemble Colgate packaging
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The FMCG index climbed up to 1.7 per cent before easing to trade 1.2 per cent higher at 9:50 AM, while the Nifty50 slipped 0.04 per cent
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
Rural markets continued to outperform urban for the fifth quarter; Dabur's sales rose despite weather-hit summer portfolio and modest urban recovery
Dabur attributed the modest growth to unseasonal summer rains, which impacted its beverage portfolio; rural demand continued to outperform urban
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The firm said that India's consumer sector recorded a sequential recovery in demand in the April-June period, with volume growth picking up in urban markets
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This comes as channels like quick commerce gain ground, becoming growth drivers for packaged foods companies
Technical outlook on 5 stocks - Hindustan Unilever, Dabur, Insecticides India, Jain Irrigation, Kaveri Seeds - that are likely to trade favourably as per the charts this monsoon season.
Homegrown FMCG major Dabur India will exit categories such as tea, adult and baby diapers, and sanitising products as part of rationalisation of its underperforming products, said CEO Mohit Malhotra. The company, aiming "to achieve sustainable double-digit CAGR by FY28 in both topline and bottomline" has renewed its strategy focus, building on its core strengths, he added. Dabur is going for "rationalisation of underperforming products and SKUS in order to release capital for bigger bets. A few examples of these are Vedic tea, adult & baby diapers and Dabur Vita," said Malhotra during the investors' call. These segments contribute less than 1 per cent to Dabur's revenue, which stood at Rs 13,113.19 crore in FY25. "So we will get out of these categories and focus on big, bold equities which we have identified, and the core portfolio is where we will invest," said Malhotra. Dabur, as per its new vision strategy, would continue to invest in core brands, would focus on premiumisation
Dabur's stock fell as much as 4.36 per cent during the day to ₹461.1 per share, the biggest intraday loss since April 7 this year
The FMCG firm will phase out underperformers like Vedic Tea and Dabur Vita while investing in core and premium products to fuel long-term growth amid a weak demand climate
Despite a challenging operating environment, Dabur said it delivered 2.1 per cent constant currency revenue growth at ₹2,830 crore
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Dabur India manufactures the 'Real' brand of fruit juices in India, and uses the label of '100 per cent fruit juice' on its packaging
This comes at a time when the market is pushing for growth in urban areas, which has been impacted, while rural sales have been on an upward swing for the past few months
Dabur's stock fell as much as 7.57 per cent during the day to ₹458.2 per share, the worst intraday fall since October 2, 2024