As homegrown FMCG leader Dabur looks to ramp up its sales, rivals Patanjali Ayurved and Himalaya have shown the way. Unveiling the company’s plans to get Dabur’s growth on track, newly appointed CEO Mohit Malhotra said that the company had shifted focus from core business over the past 15 years and wants to bring Ayurveda to Indian mainstream. To that end, Dabur may be encouraged as “Patanjali and Himalaya in recent years have shown the way toward growing the category, albeit with moderate eventual success,” Motilal Oswal said in a recent report.
However, according to Dabur’s management, the 1884-founded company has an edge over competition due to “strong domain knowledge, extensive sourcing of herbs and the widest collection of ancient manuscripts on traditional medicines,” the report added. Meanwhile, Financial Express Online has reached out to the company for further comments.
Dabur is going bullish now on its Ayurveda segment as India has shown high potential for herbal and herbal-based products. Not only is the company helping the Ministry of Ayush to promote traditional medicine, but it has identified products to enhance its portfolio in the segment. The portfolio expansion includes Hridyasava, pure herb churnas, Vasant Meha ras, and Glycodab. Also, Dabur is looking to expand its store footprint from current 1,500 to 2,500, and has also scaled up research and development operation, the report said. Further to its plan to increase sales, the company is planning to engage with millennials and increase the accessibility of the products.
Consumer preference is on rise for herbal products and the same was confirmed by Patanjali’s Acharya Balkrishna recently. Talking about FMCG slowdown, he had said earlier that “the market slowdown is one thing and rising interest among masses is another … the interest in herbal and natural products has increased over time and so has the demand,” he told a news channel in an interview in May. Further, the recent success of Patanjali and Himalaya in a few categories is indicative of consumers’ increasing preference for herbal products, Motilal Oswal report said.