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Dabur is investing in startups and targeting digital-first brands. The company has struggled in the stock market. Dabhir is facing challenges attracting younger customers and economic difficulties in rural areas. They plan to use cash reserves for acquisitions and tap into the digital market. Dabur is focusing on premiumization to maintain profitability.
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Quick takeaways
- Dabur plans to acquire new age startups and target digital-first brands using its war chest of 7000 crore rupees.
- Dabur aims to focus on premiumization by expanding its portfolio of higher-priced products to improve profitability.
Deep dives
Dabhir's plan to diversify and target digital-first brands
Dabhir aims to change its reputation as a boring company catering primarily to older generations by announcing a war chest of 7000 crore rupees to acquire new age startups and target digital-first brands. Faced with slower sales growth and a reliance on its rural segment, Dabhir plans to leverage its cash reserves to make acquisitions and tap into the loyal fan bases of smaller companies. Additionally, Dabhir is attempting to appeal to younger consumers through its e-commerce channel and new packaging design.
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