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The move is part of a broader rationalisation initiative to eliminate underperforming segments and channel resources toward higher-growth opportunities, says CEO Mohit Malhotra.
These categories, including products like Vedic Tea, Dabur Vita, and its sanitising range, contribute less than 1 per cent to Dabur’s total revenue.
Homegrown FMCG major Dabur India has decided to exit certain product categories, including tea, adult and baby diapers, and sanitising products, as part of a strategic overhaul aimed at strengthening its core portfolio. The move is part of a broader rationalisation initiative to eliminate underperforming segments and channel resources toward higher-growth opportunities, said CEO Mohit Malhotra during an investors’ call.
Why Is Dabur Exiting These Businesses?
The discontinued product lines have not delivered meaningful returns and are not aligned with the company’s new growth-focused strategy. Exiting them allows Dabur to sharpen its focus on scalable, high-potential areas where it can build stronger consumer engagement and profitability.
“This is about strengthening our core and unlocking value through sharper portfolio choices,” said Malhotra, signalling a clear shift toward efficiency, innovation, and long-term sustainability.
How Much Do These Products Contribute To Dabur India Business?
These categories, including products like Vedic Tea, Dabur Vita, and its sanitising range, contribute less than 1 per cent to Dabur’s total revenue, which stood at ₹13,113.19 crore in FY25. The company believes these non-core segments are not aligned with its long-term vision.
“We are exiting these categories to free up capital and invest in big, bold equities where we see strong growth potential,” Malhotra said. The company is aiming for sustainable double-digit CAGR in both topline and bottomline by FY28, and its renewed strategy is focused on scaling up its most successful brands while pivoting toward future-ready categories.
Core Focus: Big Brands and High-Growth Categories
Dabur will double down on seven of its strongest brands — Dabur Red, Real, Dabur Chyawanprash, Dabur Honey, Hajmola, Dabur Amla, Odonil, and Vatika — each with annual sales exceeding Rs 500 crore and collectively contributing over 70 per cent to the company’s revenue.
These brands will receive disproportionate investments to enhance market penetration and gain share. The company also plans to premiumise and contemporise offerings across categories, such as:
- Hair care: Serums, conditioners, and masks
- Oral care: Benefit-led toothpastes
- Beverages: Activ range
- Healthcare: Gummies, powders, and effervescents
Tapping Health, Wellness & Emerging Channels
A major part of the refreshed vision includes an aggressive play in the health and wellness segment. Dabur aims to ramp up the Hajmola franchise, health juices, Shilajit products, and address emerging needs like gut health, heart health, stress relief, and lifestyle management through innovative offerings.
The company will also pursue merger & acquisition opportunities in areas like wellness foods, new-age healthcare, and premium personal care to build a future-fit portfolio.
On the distribution front, Dabur is focusing on e-commerce, quick commerce, and modern trade to accelerate growth. It plans to consolidate stockists to improve ROI, reduce costs in urban general trade, and leverage digital tools for better market execution.
(With inputs from agencies)
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