Dabur India Intensifies Efforts With 4th Phase Of Sugar Reduction Initiative
In efforts to boost growth and expand its distribution network, the FMCG group aims to extend its presence to 130,000 villages by the conclusion of FY25
Dabur India, a prominent player in the fast-moving consumer goods (FMCG) sector, announced in its annual report that it will reduce added sugars by an average of 3 per cent across two-thirds of its beverage range. Starting in 2019, the company initiated a phased approach to reformulate its Real juice portfolio, successfully reducing added sugar levels across its top eight juice variants by 20.95 per cent over three phases. This translates to a reduction of about 1,300 metric tons in sugar consumption per year.
“In our Foods & Beverages division, we are committed to reducing sugar content in our products without compromising on taste or quality. This demonstrates our commitment to promoting healthier options for our consumers,” the report said.
In efforts to boost growth and expand its distribution network, the FMCG group aims to extend its presence to 130,000 villages by the conclusion of FY25. Currently, the company serves 122,000 villages through a network of more than 7.9 million retail outlets nationwide. In FY24 alone, it has already added 200,000 new outlets.
Simultaneously, targeting urban consumers, the company intends to broaden its range of premium products and explore entry into related categories.
Mohit Burman, chairman of Dabur India, said in the report, “Our foundation for future growth is set, and we are now ready to pursue our growth strategies. We are optimistic of a gradual uptick in consumption trends over the course of the next year, considering predictions of a normal monsoon, improving macroeconomic indicators, continued government spending on infrastructure building, and lower inflation.”
The company highlighted launching 14 new products as part of its strategy to expand its premium portfolio and increase its market reach. These introductions marked Dabur's entry into several large and growing categories, such as mosquito repellent liquid vaporisers, cooling hair oils, gel toothpaste, and value-added tea, the report stated. These products contributed 3.4 per cent to the company's total sales for the year.
“Our digital-first brands have grossed a collective turnover of over Rs 100 crore,” Burman added.
The report also noted an increase in market share across 95 per cent of the company's product portfolio. With the rise of quick-commerce, the company is developing strategies to capitalise on opportunities presented by this channel.
In FY24, the company reported a net profit of Rs 1,843 crore on revenue amounting to Rs 12,404 crore.
Also Read: Rains And Returns: The Dual Impact Of Monsoon On India's Economy And Stocks
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