Dabur eyes ₹7000 crore in business from HPC, ₹5000 crore from healthcare in medium term | Mint – Mint

New Delhi: Packaged consumer goods company Dabur India Ltd. plans to have ₹7,000 crore in revenues from its home and personal care business, and taking its healthcare business to ₹5,000 crore in the medium term. This growth will be driven by the company’s strategy of extending its existing brands into newer categories and consumption occasions, as well as tapping into new platforms such as e-commerce.
Dabur operates across three categories: home and personal care, healthcare, and food and beverages. In FY23, the company’s home and personal care business reported net sales of ₹3,846 crore, making up 47.2% of its domestic business. The healthcare business reported net sales of ₹2,581 crore, while the food and beverages business reported net sales of ₹1,724 crore.
Dabur’s healthcare business is expected to grow at a high single-digit rate in the long term, driven by the increasing demand for wellness products. 
The company’s CEO, Mohit Malhotra, pointed out broad trends such as consumer shift towards wellness products and overall better physical health. Dabur sells healthcare products such as Chyawanprash, Honitus, Lal, Hajmola, and Dabur honey.
Within the home and personal care portfolio, Dabur plans to grow double-digit with an ambition to reach ₹7,000 crore in business in the medium term. The company will do this by growing ahead of the category to gain market share. Dabur will also drive premiumization in the category to expand gross margins. For instance, the company has already launched body washes under its Gulabari brand apart from aerosols under Odonil air fresheners.
Malhotra said the company will push more brands into its power brand strategy by entering into newer categories under existing brands as well as expanding distribution for them. For instance, the company has expanded Real from a fruit drinks brand to plant-based drinks like soya and almond, aerated fruit beverages, milkshakes, coconut water, and peanut butter.
Dabur is trying to push brands such as Hajmola and Odonil into power brands and extend them into adjacent categories. “So Hajmola is now ₹350 to ₹400 crore brand for us. We’re trying to move it to a power band structure. Odonil also, the same, while we are still not calling it a power brand…but we are trying to scale up,” he said.
Dabur’s FMCG portfolio today includes nine power brands – eight in India and one in the overseas markets. These include Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Red Paste, Real, among others.
Other brands are primed to join the company’s portfolio of power brands, Malhotra said. It has 17 brands within the ₹100 to ₹500 crore range.
“As we scale up the turnover of the brands, they will keep moving into the power brand architecture,” Malhotra said. This will mean manufacturing will be closer to consumption locations, more resources will be invested on the brand, more brand managers will be working on it, and more bandwidth will be deployed on these brands besides the cash deployment in terms of advertising.
Dabur ended the 2022-23 financial year with consolidated revenue of ₹11,529.9 crore, up 6% from ₹10,888.7 crore in 2021-22. Net profit for the full year stood at ₹1,707.1 crore.
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