Dabur India Ltd, a consumer goods maker, has decided to reduce its cycle of strategic reviews from four years to three years due to short-term volatility in the sector and uncertain macroeconomic indicators. The company’s CEO, Mohit Malhotra, cited the need for “validation of our strategies through external consultants” in this changing environment. To achieve this, Dabur has engaged consulting firm McKinsey & Co to refine and align its strategies for the next three years.
The company’s strategic vision cycle will focus on brands such as Dabur Chyawanprash and its beverages portfolio. Dabur has also made changes to its beverages portfolio in response to growing competition from cola brands in the market. The company’s juices and nectars category was impacted in the third quarter due to reduced festive season demand and price-driven competition.
Dabur reported a 1.85% jump in its December quarter profit, with consolidated revenue growing 3.1%. The company reported 1.5% growth in India FMCG volumes, with the home and personal care business growing 5.7% year-on-year. However, the healthcare business was down 1.3% in the same period.
The company expects sequential improvement in demand over the next few months due to increased infrastructure investments, good harvest, and government initiatives to spur growth in the upcoming budget. Dabur also plans to take price increases in its oral care and juices portfolio to offset “inflationary pressures” and “volatility in raw material prices”. The company has also announced plans to improve demand by offering more value to consumers, reducing prices, and increasing distribution margins.