With a cash reserve of Rs 7,000 crore, Dabur India is looking to make acquisitions

 With a cash reserve of Rs 7,000 crore, Dabur India is looking to make acquisitions

Additionally, he said that Dabur is searching for acquisition prospects in the internet market, where a number of D2C (Direct to Consumer) brands are present. Dabur considers the valuation in this market to be "more reasonable" at the moment and would pursue a deal if it deems it to be a good fit for expansion.

According to CEO Mohit Malhotra, domestic FMCG manufacturer Dabur India is searching for acquisition prospects in the home and personal care and healthcare sectors, with a cash reserve of Rs 7,000 crore.

Additionally, he said that Dabur is searching for acquisition prospects in the internet market, where a number of D2C (Direct to Consumer) brands are present. Dabur considers the valuation in this market to be "more reasonable" at the moment and would pursue a deal if it deems it to be a good fit for expansion.

The firm intends to offer further innovations under its current brands and via inorganic possibilities as it expands its footprint in the online market, which includes e-commerce platforms and D2C operations.

There, we are offering novelties. These innovations are building upon the success of already-established brands, and they will build upon the success of any new brands we may introduce or acquire, Malhotra told PTI.

The firm planned to achieve organic growth by launching new skin care and luxury skin care brands; the remaining funds would come from acquisitions. "With the exception of skincare and luxury skincare, which we do not provide, we do not want to create any new organic brands.

If not, we'll look at it to see if any purchases can be made," he said.

Dabur may consider an acquisition for which it has "about Rs 7,000 crore lying in our balance sheet for that particular purpose" if it receives any "reasonable valuation," the executive added.

Malhotra also emphasized that innovation, which draws in younger or newer generations of customers and extends a brand's lifespan, is just as crucial as acquisition.

"It is a necessity," he said, "if a company's identity has to evolve or grow, it has to have a newer avatar approximately every two to three years, and only then will the company's image grow." Every one of Dabur India's nine power brands would "need to go through a cycle of evolution and improve." What we are doing is that."

Dabur has nine power brands totaling 70% of its sales, eight of which are in India and one of which is in an international market. The brands include Real, Vatika, Dabur Amla, Dabur Red Paste, Dabur Lal Tail, Dabur Amla, Dabur Honey, Dabur Honitus, and Dabur Chyawanprash.

The company's juice brand Real now generates sales of around Rs 1,700 crore, with a goal of reaching Rs 2,000–2,500 crore over the next five years. "The brand ought to increase around 15 per cent CAGR, that we have, so we should be able to double the revenue in six years time with this brand," he said.

Additionally, Malhotra anticipates growing its three Rs 1,000 crore brands—Dabur Amla, Dabur Red, and Vatika—to Rs 1,500 crore. Speaking at the investor conference last week, Malhotra said that Dabur had 17 brands with a value over Rs 100 crore but less than Rs 500 crore.

In order to join the branded spice and seasoning business, Dabur finalized the purchase of a 51% share in Badshah Masala earlier this year. Dabur is currently bringing Badshah to new markets in an effort to reach the global diaspora.

"So we have got a very rich inventory of brands to have a very future fit organisation," said Malhotra, who continued, "we will have the 17 brands actually we must develop and they will all become power brands in due course of time for us" . According to him, the power brands—which get more funding and resources for everything from marketing to production and innovation—will still account for 80–85% of Dabur's sales.