Dabur will stop making tea-diapers and sanitizing products, CEO himself told the reason
India’s well-known FMCG company Dabur has said that it will exit categories like tea, adult and infant diapers and sanitizing products in the coming days. This was told by the company’s CEO Mohit Malhotra on Thursday. According to PTI news, Malhotra said that Dabur India will take this step as part of rationalizing its underperforming products. During the investors’ call, Malhotra said that Dabur is going to rationalize underperforming products and SKUS to release capital for bigger bets. Vedic tea, adult and infant diapers and Dabur Vita are some examples of this.
Contribute less than 1 percent to revenue
According to the news, Malhotra said that these segments contribute less than 1 percent to Dabur’s revenue, which was Rs 13,113.19 crore in FY25. He said that this is why we will exit these categories and focus on the big, bold equities that we have identified, and the core portfolio is where we will invest. As per its new vision strategy, Dabur will continue to invest in core brands, focus on premiumization and contemporization in various categories, make “bold bets” in health and wellness areas and aggressively pursue M&A opportunities to build a future-friendly portfolio.
E-commerce, quick commerce will be the focus
Apart from effective expansion in urban and rural India, Dabur also plans to double down on emerging channels like e-commerce, quick commerce and modern trade. The CEO said that we will double down on emerging channels like e-commerce, quick commerce and modern trade. We will also focus on integration of stockists for better ROI (return on investment), reduce the cost of serving in the urban GT channel and increase the use of digital tools to boost extraction. Dabur’s new strategy builds on its core strengths while moving towards future-ready levers of value creation.
Will expand seven brands
As per the strategy, the company will expand seven brands with annual sales of over Rs 500 crore – Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil and Vatika – which contribute to over 70 per cent of its portfolio. “We will continue to grow these brands through disproportionate investments, thereby increasing penetration and increasing market share. This will go premium and contemporary in categories such as serums, conditioners and masks in hair care, benefit-based toothpastes in oral care, active range in beverages, gummies, powders and effervescents in healthcare,” Malhotra said.
