Dabur streamlines portfolio, exits tea, diapers to boost premium hair care, beverages
CEO Mohit Malhotra said that Dabur will be exiting from non-performing categories, that is, segments which contributed one percent to the firm's revenue
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Consumer goods company Dabur to exit tea, diapers, and sanitizers segments and will be focusing on its core portfolio and premiumization. Dabur, which on Wednesday announced its 4th quarter results for the fiscal year 2025, the company's CEO underscored plans on portfolio rationalization.
CEO Mohit Malhotra said that Dabur will be exiting from non-performing categories, that is, segments which contributed one percent to the firm's revenue.
"We will get out of are Tea, adult and baby diapers, the sanitizing category, and the beta categories. So we will get out of these categories and focus on big, bold equities, which we've identified, and the core portfolio is where we will invest," said Malhotra.
On premiumization, Malhotra acknowledged that it was a less focused area for the company until now.
"It was a deliberate attempt because we wanted to gain market share," he added.
However, the CEO said the company will embark on premiumization and contemporization as it gained market share in chyawanprash, homecare, skincare, and honey categories.
"We will for premiumization like in hair care, we always focused on gaining market share in Dabur Amla going forward, you will see a concerted effort on premiumization. We will focus investments on post-bath categories like serums, conditioners, and masks. In the beverages segment, we will invest money in the Activ portfolio, and communicate on the zero sugar and low preservative range of beverages," Malhotra said.
Additionally, Chyawanprash, honey, and glucose will be updated to modern formats, the CEO asserted.
Dabur posted a consolidated profit of Rs 312.73 crore in Q4 FY25 compared to Rs 341.22 crore in Q4 FY24--a decrease of 8.3%. Overall, in the fiscal year 2025, the profits plunged to Rs 1,740.42 crore--a decline of 4% year-on-year. Dabur's advertisement and publicity expenses stood at Rs 176.40 crore in Q4 FY25 versus Rs 183.6 crore in the corresponding quarter in FY2024. The maker of chyawanprash and ayurvedic products spent Rs 864.64 crore on advertising in the full fiscal 2025. The consolidated total income of Dabur soared to Rs 2,971.29 crore in Q4 FY25.
