Dabur India Eyes Market Dominance With M&A Push, Core Brand Power

Dabur India has a refreshed vision. The FMCG major is building on core strengths, while pivoting towards future-ready levers of value creation. The strategy is anchored on three key pillars: investment in core brands, premiumization & contemporization across categories and aggressive merger and acquisitions ( M&A) opportunities.

"Our ambition is to achieve sustainable double-digit compound annual growth rate (CAGR) by FY28 in both topline and bottomline. We are also driving go-to-market (GTM) 2.0 in the organisation for effective expansion across urban and rural India," Mohit Malhotra, CEO, Dabur India Limited told Entrepreneur India in an exclusive interview.

The company will continue to add scale to its key brands through disproportionate investments, thereby increasing penetration and driving market share gains.There will be bold bets across health & wellness spaces.

According to Malhotra, the company will focus on ramping up Hajmola franchise, health juices and Shilajit, to name a few. "We will also target emerging need gaps such as gut health, heart health, stress and lifestyle management through existing and new products," the CEO added.

For the rest of FY26, the CEO expects to record low-to-mid single-digit volume growth and mid-to-high single-digit value growth for the full year. For the balance of the year, he is expecting a high single digit growth.

The GST 2.0 reform

GST drives affordability & enhances purchasing power, which boosts consumption across categories and strengthens demand in both urban and rural markets.

With the revised GST reforms, applicable from 22nd September, Dabur's key categories such as oral care, juices, hair oils, shampoo, digestives, OTC, branded ethicals and culinary, which represents approximately 60 per cent of India business, have benefited from the rate cut. Now around 85 per cent of its portfolio is at a GST rate of 5 per cent.

"We are committed to pass on the benefit of reduced GST rates to our consumers and have reduced prices across categories. As macroeconomic indicators turn favourable and GST reforms unlock affordability, Dabur is uniquely positioned to accelerate inclusive growth and reinforce its leadership across segments," the CEO explained.

The non-GST impacted brands performed well and retail offtakes continued to be resilient during the month of September and the second quarter of 2025-26, enabling Dabur to sustain market share gains in over 90 per cent of the portfolio.

Going forward for Dabur, the GST realignment will boost purchasing power and is expected to improve demand, drive consumption across urban and rural markets.

Emerging trends

Premiumisation is a growing trend in the FMCG space and it reflects a deeper structural shift in consumer behaviour. Post-COVID, consumers have become more discerning, seeking products that align with their aspirations, health goals, and lifestyle preferences. This shift is visible across categories, from personal care to health supplements and beverages.

"We see premiumisation as a multi-dimensional strategy, not merely a pricing play. It's about elevating the consumer experience through innovation, quality, and relevance. Gen Z and millennials, in particular, are driving this shift with their strong preference for premium products. Premiumization is a key pivot of growth for us," he said.

For instance, Dabur's hair care portfolio is expanding into premium formats like serums, conditioners, and masks. The healthcare innovations include modern formats like gummies etc, designed for younger, time-starved consumers. Even in beverages, Dabur is catering to the rising demand for functional and fortified drinks.

Innovation is critical to sustained success and Dabur will introduce new products to strengthen its portfolio.

For Dabur, e-commerce is the Innovation cradle for Power Brands. "A lot of new product and format innovations are launched in e-commerce. We will use e-commerce as the launch platform for many of these new-age formats, build up scale here and then roll them out in other channels. We have interesting extensions lined up for the upcoming quarters to mark our entry into newer formats and capabilities based on identified consumer trends," he said.

M&A's and expansion

Acquisition is a key pillar of the behemoth's future growth strategy. The CEO has a war chest ready for future acquisitions.

"We are open to acquisitions within our categories in India. We continue to look for targets which are synergistic and make a good strategic fit with our business," he explained.

The recently announced Dabur Ventures, an investment platform with capital allocation of up to INR 500 crore, 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.

"The capital, funded entirely by Dabur's balance sheet, is charting a bold path by backing progressive ventures in personal care, health care, wellness foods, beverages, and Ayurveda. 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," Malhotra continued.

Dabur India's last acquisition was its majority stake in the Ayurvedic hair care company Sesa Care in October 2024. This acquisition followed its purchase of a 51 per cent stake in spice maker Badshah Masala in January 2023.

Furthermore, Dabur's international business grew 7.7 per cent in Q2 of this financial year, led by markets like Dubai, the UK, Bangladesh, the US and Turkey.

"Our vision is to make our trusted natural and herbal products accessible to consumers worldwide. We are expanding across key international markets with a focus on innovation, premiumization, and sustainability, ensuring that every category we enter reflects our commitment to quality and cultural relevance. Looking ahead, we aim to accelerate growth in the overseas markets by deepening our presence in these markets and introducing new product formats that cater to evolving global consumer needs," Malhotra said, explaining his expansion plans.