The FMCG major is reviewing prices and product profitability while looking to cut costs and invest more in its core brands, which account for nearly 60% of its business.
Key Highlights
- Dabur is considering selective price hikes to offset rising input costs.
- Its India FMCG business grew 10.7% in the September quarter, with volumes up 5.5%.
- The company has saved around ₹115 crore under its Samriddhi programme and is targeting savings of ₹170–200 crore going forward.
- Dabur plans to increase consumer-facing media investment by 150–200 basis points for selected brands and categories.
- The company retained its double-digit growth guidance for FY27.
- It aims to raise the share of premium products from 20% to 23% over the next 18 months.
New Delhi, Nov 10 — Dabur India is considering selective price increases across its portfolio as rising input costs put pressure on margins. The consumer goods maker is also looking to cut operating costs and improve its product mix while continuing to invest in the brands that account for the bulk of its business.
Herjit Bhalla, Dabur’s CEO for India business, told investors during a post-earnings call last week that rising crude oil prices amid the West Asia conflict had added to cost pressures across the supply chain. He said the company was reviewing where it could raise prices and where it needed to stay competitive.
Dabur’s India FMCG business grew 10.7% in the September quarter of FY27. Volume growth accounted for 5.5 percentage points, while pricing contributed 5.2 percentage points.
Core brands remain a priority
Dabur plans to keep investing in its core brands, which generate nearly 60% of its business. Bhalla said the company wants to encourage consumers to use these products more often and reach more households in categories where it already has a strong position.
The company also plans to raise consumer-facing media investment by 150–200 basis points in selected brands and categories. Bhalla said Dabur would reinvest operational savings in initiatives such as brand building and consumer marketing.
Dabur is reviewing individual products based on their sales and profitability. Bhalla said the company would look to improve the profitability of weaker products and could discontinue some of them. He said Dabur intends to make these reviews a regular part of how it manages its portfolio.
Cost savings and premium products
Dabur has generated around ₹115 crore in savings under its Samriddhi cost-efficiency programme and is targeting ₹170–200 crore going forward. Chief Financial Officer Ankush Jain said production efficiencies and changes to the product mix would help fund the company’s planned investments.
Dabur retained its double-digit growth guidance for FY27, with management expecting support from core brands, premium products and alternative distribution channels. It aims to raise the contribution of premium products from 20% to 23% over the next 18 months. The premium portfolio grew four times as fast as Dabur’s overall business over the previous 18 months, the company said.
