Dabur India to Exit Tea, Diapers, and Sanitizer Segments to Focus on Premiumization
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FMCG major overhauls portfolio to double down on high-growth categories like hair care, health, and beverages.
Dabur India Ltd., the legacy maker of Chyawanprash and Real juices, is saying goodbye to underperforming categories such as Vedic tea, adult and baby diapers, hand sanitizers, and its malted food drink brand, Vita. This strategic exit is the result of a major portfolio review led in collaboration with global consultancy McKinsey, as the company sharpens focus on profitability and category leadership.
“These categories contributed less than 1% to revenue and diluted our margins,” said Dabur CEO Mohit Malhotra during the post-earnings analyst call. “We’ve identified big, bold equities in our core portfolio where we will now invest disproportionately.”
This reset will see Dabur shift capital towards more promising and premium segments including new-age hair care, health supplements, and functional beverages. With Dabur already leading in products like Chyawanprash, honey, and Amla, the company is now preparing to move up the value chain.
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What’s In and What’s Out?
Exiting: Tea, adult & baby diapers, sanitizers, Vita malted drinks Doubling Down On:
Hair care: Serums, conditioners, masks under premium lines
Healthcare: Toothpaste, powders, effervescents, and gummies
Beverages: Real Activ range with zero sugar, low preservatives
Modern formats: Chyawanprash and honey to be contemporized
Dabur also plans to streamline distribution, invest in quick commerce, and consolidate its network of urban stockists, all part of its leaner, faster go-to-market strategy.
Balwadkar
Despite an 8.4% YoY dip in Q4 net profit (₹320.13 crore) and flat revenue growth (₹2,830 crore), Dabur is betting on premiumization and brand scale to drive future growth. Seven of its brands, each nearing ₹500 crore in revenue, including Vatika, Dabur Red, Real, and Chyawanprash — currently account for over 70% of the company’s sales.
“We’re entering a new growth chapter by modernizing trusted brands and tapping into aspirational categories,” added Malhotra. “Premiumization is not just a trend for us, it’s the future.”
