New Delhi, Sept 17: Home-grown FMCG major Dabur is scaling up its digestive brand Hajmola and mosquito repellent brand Odomos, amplifying their reach to include them on the list of its power brands, CEO Mohit Malhotra said.
Dabur’s fast moving consumer goods (FMCG) portfolio currently includes nine distinct power brands — eight in India and one in the overseas markets, which together account for 70 per cent of its total sales.
Currently, Dabur’s 75 per cent revenue comes from the domestic business. Its domestic business is concentrated in eight power brands — Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real.
Vatika is Dabur’s international power brand offering a range of personal care products for the global audience.
Currently, Dabur has 17 brands that are above Rs 100 crore but lesser than Rs 500 crore in size, said Malhotra while addressing the investor meet last week.
“We have 17 brands, which are in the range of Rs 100-500 crore. These are the brands for the future, which we will scale up. If you look five years prior, they all were sub-Rs 100 crore brands,” he said.
Malhotra further added that Dabur will grow these brands, which already have the scale and wants to take them to as many homes as possible.
“Hajmola for example, we are trying to push it into a power brand. Though, it has not reached that scale. Right now it’s a Rs 350-400 crore brand for us. We are trying to move it to the power brand structure,” he said.
Malhotra further added: “For Odomos, it is still the same. It is still not a power brand (acquired from Balsara), we are trying to scale it up… As we scale up the turnover of the brand, we will keep moving into power brand architecture.”
Dabur’s power brand architecture will mean more manufacturing, more spread out and extension into adjacent spaces.
“More resources would be invested into the brands (power), more brand managers would be working on it and more bandwidth would be deployed on these brands besides cash deployment in terms of advertising,” Malhotra added.
The company has three divisions — health care (HC), home and personal care (HPC), and food and beverages.
“We will scale all brands,” he said. Dabur is extending its brand Gulabari into the body wash and soaps segment and has forayed in ready-to-cook gulab jamun mix with the brand Hommade.
Its juice brand Real revenues are around Rs 1,600 crore and it is on track to surpass the Rs 2,000 crore milestone in the next few years.
Dabur has expanded Real brand from juices and nectars category to a diverse range of products, including fruit drinks, a PET portfolio, aloe vera-based drinks, plant-based drinks like Soya and Almond, aerated fruit beverages, milkshakes, coconut water, superfoods such as Real Seeds, and most recently, the introduction of Real Peanut Butter.
Its brands like Dabur Red Paste, Dabur Amla and Vatika are between Rs 1,000 and Rs 1,500 crore, while Dabur Chyawanprash and Dabur Honey are between Rs 500 crore and Rs 1,000 crore.
Over its international business, which contributes one-fourth revenue of the company, Malhotra said the company will take regional insights and innovations.
Besides Vatika, Dabur has a presence in the international market with brands such as Dabur Amla, Hobby, ORS and acquired brands. It is also building other brands in the portfolios of oral care and skin care under Dermoviva, Malhotra added. (PTI)
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