Dabur, a prominent player in the FMCG (Fast-Moving Consumer Goods) industry, has projected a substantial increase in its baby care revenue for the fiscal year 2024. CEO Mohit Malhotra recently shared this optimistic outlook in a conversation with CNBC-TV18. According to Malhotra, the company expects its baby care revenue to reach Rs 50 crore, a significant jump from the previous year’s Rs 20 crore.
Malhotra highlighted the company’s progress in the e-commerce sector, stating, “In the previous year, we exited the Rs 20 crore business, exclusively in the e-commerce sector. This year, we are on track to more than double our business, increasing it from Rs 20 crore to Rs 50 crore.” He attributed this growth to targeted marketing strategies, particularly promoting their products through healthcare professionals like paediatricians and gynaecologists.
Furthermore, Malhotra discussed the company’s long-term plans and ambitions. He expressed, “Our ultimate goal is to establish a larger and sustainable business, aiming for a revenue of Rs 100-200 crore.” To achieve this, Dabur is strategically investing in the baby care sector and replicating its success in the mainstream market. The company is also in the process of building relationships with chemists before expanding further.
Shifting focus to Dabur’s approach in the tea market, Malhotra clarified that the company is not competing in the mainstream commodity tea market. Instead, Dabur is carving out a niche in the therapeutic tea segment by offering value-added teas with functional benefits, such as immune support and stress relief, along with an appealing taste profile. Malhotra stated, “Dabur will be upgrading to offer more health teas and premium teas to consumers.”
Looking at the broader FMCG space, Malhotra expressed optimism about its growth. He noted significant growth in urban areas driven by modern trade and the expansion of retail chains such as Reliance. Additionally, the out-of-home consumption sector is rebounding, which further contributes to the growth in urban areas. In rural areas, favourable monsoon conditions and robust agricultural activities are contributing to positive growth. Overall, Dabur anticipates a healthy 11-12 percent growth in the FMCG market, reflecting the industry’s upward trajectory.
Dabur’s projection of a significant rise in baby care revenue and their strategic investments in the sector demonstrate their commitment to meeting the evolving needs of consumers. As the company aims to establish a larger and more sustainable business, their shift towards offering health teas and premium products showcases their adaptability and focus on delivering value-added offerings. With a positive outlook for the broader FMCG industry, Dabur is well positioned to tap into future growth opportunities.