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Dabur's revenue target in the home and personal care segment is Rs 7,000 crore

Sep 18, 2023

By: BlinkX Research Team

Dabur India, an FMCG company, announced on Friday that it intends to grow its Home and Personal Care (HPC) segment by double digits, with a medium-term revenue goal of Rs 7,000 crore. The company also intends to make Rs 5,000 crore in revenue from its healthcare segment.

Both the HPC and healthcare verticals, which are part of the care segment, are significant contributors to Dabur's business. They accounted for 56.2% of Dabur's consolidated sales of Rs 11,530 crore in FY23.

The company intends to grow in the food and beverage sector by double digits over the medium and long term as a result of healthier and higher quality goods, improved product communication, and appealing packaging.

To help accelerate growth in the HPC segment, the company intends to promote core category growth to enhance market share, improve penetration, and boost the Total Addressable Market (TAM) by entering a new/adjacent category or extending product offerings in an existing category.

It also intends to meet the Rs 7,000 crore target by growing its distribution network, boosting the premiumisation mix, and executing the Regional Insights for Speedy Execution (RISE) strategy.

As the number of upper-middle-class individuals grows, the corporation will have more premium products under its power brands. Furthermore, consumption of Low Unit Packs (LUP) would increase in rural areas, according to Chief Executive Officer Mohit Malhotra.

"LUP penetration would grow in this country. Dabur as an organisation, should add more LUP for more penetration in rural. More premium products would be added in all power brands going forward," Malhotra.

Meanwhile, the healthcare industry grew at a 9% CAGR from FY20 to FY23. The company now aims to double its business in the next five years by converting power brands to platforms, allowing it to expand into new markets.

“Dabur intends to focus upon categories of baby care (category size- Rs 11,000 crore) and premium tea (Rs 6,000 crore). For baby care, it intends to adopt strategy of advocacy via doctors rather than going through traditional route of advertising, as customer recruited drops out of the category after 3-4 years and there is no point in spending endless money in recruiting new customers year after year,” Philip Capital said in their report post the company’s analyst meet.