Dabur eyes growing business in South India, to launch region specific products

Home-grown FMCG major Dabur is witnessing robust growth in South India and it is launching region-specific products along with taking on board regional celebrities and influencers to strengthen its presence, the company's Vice Chairman Mohit Burman said. Dabur, which is also investing Rs 550 crore in setting up a new facility in Madhya Pradesh, expects to see continued momentum in the healthcare portfolio, Burman said while replying to queries from shareholder at the company's 46th AGM. Asked about Dabur's plan to enhance its presence in South India, Burman said it is very important for the business, though contribution from the region is low today. ''But we are seeing above country average growth in South India with 19 per cent growth in FY21, and is now around 18.7 per cent of our business (ex-enterprise),'' he said.

Some of Dabur’s brands have done well in the South, such as its Red Paste, which has become the leading toothpaste brand in Tamil Nadu and Andhra Pradesh.

''We are also launching South-specific products -- Dabur Herb’l Alpha Range, Dabur Gold Coconut Oil and Cold Pressed Sesame Oil. ''We are also taking regional celebrities and influencers on board... signed Nagarjuna as the regional brand ambassador for South India for Dabur Chyawanprash,'' Burman said. For Vatika, which is a big brand in South India, It has engaged actor Samantha Ruth Prabhu as the regional brand ambassador.

''We will continue to drive higher penetration and connect with the consumers of South India and grow the business there. It's good to have an opportunity for future growth for us,'' he added.

Besides, it will continue to invest in its power brands such as Dabur Chyawanprash, Dabur Honey, Lal Tail, Honitus, Pudin Hara in healthcare; Dabur Amla and Dabur Red in home and personal care (HPC); and Real in foods and beverage segment, Burman said.

''Our focus has been yielding strong results with our power brands growing at around 43 per cent as against the company average of 35.4 per cent in Q1 FY22. ''A similar trend was also seen in FY21 with power brands growing at 19 per cent versus company average of 14.7 per cent,'' he added.

Dabur's Ayurvedic healthcare portfolio has also done well with tailwinds supporting this business.

''With the consumers becoming more health-conscious, we expect to see continued momentum in the healthcare portfolio. Also, the penetration of the healthcare products is quite low compared to that seen in developed markets, so there is huge headroom to grow,'' he said.

In FY21, Dabur launched more than 50 new products like health juices, health drops, Pure Herbs range, Honey Tasties, Dant Rakshak and Real Mango Drink across categories, which contributed to around 5 per cent of its revenue.

''Going forward, we have a healthy pipeline of new products and we will continue to launch them to capture the emerging consumer trends and opportunities,'' Burman said.

However, he declined to share specific details about the upcoming launches, but added that innovation remains the cornerstone of its growth strategy.