Dabur looking to boost rural reach as it regains market share

Dabur has regained lost market share, with the threat posed by  Patanjali having receded, chairman Amit Burman said after being elevated to the post this month.

“It (Patanjali’s) was a disruptive strategy to kill competition by price, like it happens in many industries. But after the disrupting, things settle down and ultimately product quality and depth of distribution are what matter,” he said.

Amid a slowing economy, intensifying competition and volatile markets, the Rs 8,500 crore-plus Dabur has identified eight power brands including Vatika shampoo, Red toothpaste, Real juice and Amla hair oil and is investing disproportionately to push them, said Burman, 50.

The youngest chairman of Dabur and a fifth-generation member of the founder family, Burman said his focus would be to enhance science-based ayurveda products, premiumisation, rural distribution and e-commerce.

“We have different products which are helping us. Our strength has been in healthcare, where we have seen good growth. That’s where newer products will come in,” said Burman, who is also promoter of independent food retailing company Lite Bite Foods.

Inskincare, where Dabur has had a relatively smaller presence, it plans to step up premiumisation and high-margin launches. It is creating products only for e-commerce in spaces such as babycare to leverage on the scale opportunity it presents. Online grocery sales for the FMCG sector are only 2% of the overall Rs 3 lakh crore-plus category presently but projected to increase 11% by 2030.

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