The funds will be allocated via Dabur Ventures, an investment platform launched last Friday (Oct. 31).
Digital-first companies with strong growth potential and are aligned with the firm’s long-term strategic vision are targets for investment.
These businesses will need to operate across any of the five following areas: personal care, health care, wellness foods, beverages or Ayurveda.
Its initial focus for investments will be India-based companies.
CEO Mohit Malhotra said the move would help speed up the firm’s premiumization journey.
“This strategic move reflects our belief in innovation as a growth engine, fast-tracks our shift toward premium offerings and positions us at the forefront of emerging consumer trends shaping the industry’s future,” he said.
Led by Abhinav Dhall, executive director and group head of corporate strategy at Dabur India Limited, the investment will be fully financed through Dabur’s balance sheet.
“The capital, funded entirely by Dabur’s balance sheet, would be invested in acquiring stakes in high-potential, new-age, digital-first businesses that demonstrate strong growth potential and are closely aligned with Dabur’s long-term strategic vision,” Dhall said.
Three key pillars
The 141-year old company has identified three pillars: for its next chapter, namely premiumization, digital transformation and distribution expansion.
“We are entering a new phase of growth, powered by a future-ready strategy and deep consumer trust,” Abhinav said. “We are investing boldly in premiumization, digital transformation and distribution expansion, three pillars that will define the next chapter of our journey.
“As macroeconomic indicators turn favorable and GST reforms unlock affordability, Dabur is uniquely positioned to accelerate inclusive growth and reinforce its leadership across segments.”
Supplements among growth categories in Q2
In its Q2 results announced last week, Dabur reported health supplements as one of its key growth verticals, alongside its toothpaste, hair care, skin care and home care businesses.
Earlier in June, Dabur made its debut in the nutraceutical space with the launch of Siens by Dabur. The brand currently has portfolios across beauty and skin health, daily wellness and gut health.
During the quarter, consolidated net profit also went up 6.5% yoy to INR$4.5 billion (US$51 million), while consolidated revenue grew 5.4% to INR$31.9 billion (US$359 million).
Malhotra said the company had managed to grow amid economic and transitional GST headwinds during the period.
“Our performance during the quarter stands as a testament to Dabur’s enduring resilience and consumer trust,” he said.
“Despite a dynamic economic environment and transitional GST headwinds, we delivered robust top-line and bottom-line growth, reaffirming our leadership across core categories.
“Our India business reported market share gains across 95% of the portfolio, a clear testament to our focused brand investments and deep consumer connect.”
Outside of India, the company also saw growth in its international markets of Dubai, Bangladesh, Turkey, the United States and the United Kingdom.
