The fast-moving consumer goods market is likely to witness a consumption revival in FY26 led by favourable macro-economic factors, Mohit Burman, chairman, Dabur India, said in the company’s annual report released Wednesday.
Forecast of a normal monsoon, easing inflation and continued investment by the government in welfare and infrastructure projects would create a virtuous cycle of growth, Burman said. The company was also counting on seven pillars of growth. This includes investment in core power brands, premiumisation, focused bets in high-growth health and wellness adjacencies, portfolio rationalisation, strategic acquisitions with a focus on health, wellness, and premium personal care.
“Going forward, we remain optimistic about a sequential recovery in consumption trends in FY2025-26,” he said. As rural demand continues to outpace urban demand, the company has also taken note of the shift in consumption from urban areas to rural areas, he added,
“Rural India remained resilient, outpacing urban growth. At Dabur, we embraced this shift with agility and purpose,” he said.
Burman also said that the company had set an ambitious target of expanding its rural footprint while sharpening its focus on urban markets. The company is doing this by enhancing its portfolio of premium offerings. Dabur covered 8.4 million retail outlets at the end of FY25, up from 7.9 million a year earlier. Its village coverage has also expanded by around 16,000 during the year. The company now reaches 1.32 lakh villages.
Burman said Dabur had rationalised inventory in general trade and witnessed a shift in consumer behaviour. The company has particularly seen a rise of e-commerce and quick commerce.
Dabur’s portfolio included three Rs 1,000 crore brands, which were Dabur Amla, Dabur Red Toothpaste and Real beverages, he said. There were also three brands worth Rs 500 crore and 16 brands in the Rs 100–500 crore range within its portfolio.
“Our Go-to-Market transformation, strategic M&A focus, and operating model reinvention are designed to unlock new engines of value creation,” Burman said.
Dabur’s FY25 consolidated revenue stood to Rs 12,563 crore, up 3.6% versus a year ago. Net profit for the year was down 4.1% to Rs 1,768 crore versus FY24.
Burman said that a total of seven brands including names such as Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil, and Vatika accounted for over 70% of its portfolio. He said the firm was committed to scaling them up exponentially.