Dabur aims to double baby care revenue to Rs 50 crore in FY24
Dabur aims for an impressive revenue growth of Rs 50 crore in FY24, compared to last year's Rs 20 crore.
Dabur, one of the leading players in the FMCG industry, anticipates a significant rise in its baby care revenue for the fiscal year 2024. CEO Mohit Malhotra, in a conversation with CNBC-TV18, said the company expects the revenue to reach Rs 50 crore, compared to the previous year's Rs 20 crore.
"In the previous year, we exited Rs 20 crore business, exclusively in the e-commerce sector. This year, we are on track to more than double our business, increasing it from Rs 20 crore to Rs 50 crore. We are achieving this growth by promoting our products through healthcare professionals, including paediatricians and gynaecologists," he said.
He went on to discuss their long-term plans, stating, "Our ultimate goal is to establish a larger and sustainable business, aiming for a revenue of Rs 100-200 crore. Currently, we are strategically investing in the baby care sector. We have proven our concept in the e-commerce space and are now working to replicate that success in the mainstream market. We are also in the process of building relationships with chemists before expanding into the mainstream."
When discussing Dabur's approach to the tea market, Malhotra made it clear that the company was not competing in the mainstream commodity tea market. Instead, they are carving out a niche in the therapeutic tea segment, focusing on value-added teas that provide functional benefits such as immunity support and stress relief, in addition to offering an appealing taste profile.
Malhotra remarked, "Dabur will be upgrading to offer more health teas and premium teas to consumers."
Regarding the broader FMCG (Fast-Moving Consumer Goods) space, Malhotra expressed optimism about the industry's growth. He pointed out that urban areas are experiencing significant growth, driven by modern trade and the expansion of retail chains like Reliance. Additionally, the out-of-home consumption sector is rebounding, further contributing to urban growth.
In contrast, rural areas are witnessing positive growth due to favourable monsoon conditions and robust agricultural activities. Dabur anticipates a healthy 11-12 percent growth in the FMCG market, reflecting the overall upward trajectory of the industry.
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