Dabur to drop underperforming tea, diapers; focus on Qcommerce for growth

Dabur is going for "rationalisation of underperforming products and SKUS in order to release capital for bigger bets", CEO Mohit Malhotra said
Press Trust of India New Delhi
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 and contemporisation across categories, take "bold bets" across health & wellness spaces and also aggressively pursue M&A opportunities for creating a future-fit portfolio.
Dabur also plans to expand to double down on emerging channels like e-commerce, quick commerce and modern trade, besides effective expansion across urban and rural India.
"We will double down on emerging channels like e-commerce, quick commerce and modern trade. We will also focus on consolidation of stockists for better ROI (Return on Investment), reducing cost to serve in the urban GT channel and enhanced use of digital tools to boost extraction," he said.
This renewed strategy of Dabur builds on its core strengths while pivoting towards future-ready levers of value creation.
As per the strategy, the company will scale up seven brands with annual sales exceeding Rs 500 crore -- Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil and Vatika, which contribute over 70 per cent of its portfolio.
"We will continue to add scale to these brands through disproportionate investments, thereby increasing penetration and driving market share gains," said Malhotra.
It will go for premiumisation and contemporisation across categories such as serums, conditioners, and masks in hair care; benefit-led toothpastes in oral care; the activ range in beverages; gummies, powders, and effervescents in healthcare.
It will also become aggressive across health & wellness spaces.
"We will focus on ramping up the Hajmola franchise, health juices and Shilajit, to name a few. We will also target emerging need gaps such as gut health, heart health, stress and lifestyle management through existing and new products," said Malhotra.
It will also "aggressively" pursue M&A opportunities for creating a future fit portfolio, particularly focused on new age healthcare, wellness foods and premium personal care.

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