Dabur Business Model | How Dabur Makes Money

Dabur is one of India's most reputable and well-known household brands; therefore, it doesn't need an introduction. The 140-year-old Ayurvedic firm Dabur began as an Ayurvedic medication manufacturer in 1884. Since its modest beginnings in Kolkata's backstreets, Dabur India Ltd. has grown into a consumer goods corporation with the world's broadest range of herbal and natural products.

About Dabur

Dabur has effectively transitioned from a family-owned company to a professionally run firm. With sales of over INR 12,886 crores and a market valuation of over INR 106,569 crores as of December 2024, Dabur India Ltd. is one of the top FMCG firms in India. Building on more than 140 years of quality and experience, Dabur is currently the most reputable brand in India and the biggest provider of natural and Ayurvedic healthcare worldwide.

With a range of more than 250 Ayurvedic products, Dabur India is also a global leader in Ayurveda. Nine different power brands are currently part of Dabur's FMCG portfolio in India: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika are a powerful global brand.

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Dabur Business Model

Dabur has remained loyal to its rich history and 140 years of quality and experience by earning the title of "custodian of Ayurveda." Dabur is currently the biggest "science-based" ayurvedic company in the world. With a strong commitment to Ayurveda, Dabur has spent more than a century creating products using a range of scientific interventions to demonstrate the benefits of Ayurveda and its constituents. By providing goods that perfectly capture the benefits of Ayurveda and align with consumer tastes, Dabur offers a distinctive platform.

Dabur will keep emphasizing the "herbal and natural" offer as its central tenet both domestically and internationally in the future.

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How Dabur Makes Money | Dabur Revenue Model

Though Brands

Brands are strategic assets because they provide great experiences and engage with customers on an emotional and rational level.

70% of Dabur's overall sales come from nine power brands. These consist of one brand in foreign markets and eight in India (Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika). Given its 140-year history, Dabur has a legitimate right to triumph in the healthcare sector, where the majority of power brands operate. The company's mission to be committed to the health and well-being of every household is reflected in the items it offers.

Through Digitisation

For Dabur, using digital transformation to stimulate innovation and growth is not a novel requirement. By pursuing an aggressive eCommerce and digital marketing strategy to capture the expanding market size of millennials and Gen Z, Dabur is capitalizing on the digital revolution. They conduct targeted advertising on a variety of digital platforms to appeal to young people, and they supplement these efforts with more easily accessible products on e-commerce and online marketplaces.

By Dominating the Rural Market

One of Dabur's primary strategic focus areas is the country's rural market. Dabur's domestic market sales are among the largest in India's FMCG sector, with approximately 47% coming from rural areas. To access this expanding customer base, Dabur has been focusing on expanding its direct reach to villages around the country. They have expanded their distribution network to include about 90,000 communities and 1.3 million outlets.

USP of Dabur

Dabur is a unique player in the consumer products market because of its USP, which is its focus on health and wellness segment. In order to grow its market share, brand will thus keep using this as a competitive advantage.

Dabur SWOT Analysis

Dabur Strengths

• Dabur distributes its goods through 5000 distributors and 3 million outlets in more than 60 countries.
• Dabur's strong product development and brand image.
• A robust distribution system with a vast supply chain.
• Health care, education, and other socioeconomic activities are among Dabur's welfare initiatives.

Dabur Weaknesses

• International and major domestic competitors pose a serious threat to Dabur products.
• With a wide range of consumer preferences and pricing tactics, the FMCG sector is vibrant and fiercely competitive.
• For FMCG companies, regulatory compliance is higher in Indian markets.

Dabur Opportunities

• Acquisitions and mergers to bolster the brand.
• Because of its tremendous brand recognition, Dabur is a household name even in rural places.
• Demand for Ayurvedic products is rising both domestically and internationally.

Dabur Threats

• The buyers and sellers in monopolistic competition are numerous. However, none of them sell identical goods. Although all dealers sell somewhat different things, the products are comparable. This industry is therefore quite competitive.
• Dabur offers a vast array of products and a huge portfolio. Local brands pose a risk of duplication since they could produce identical goods and market them under Dabur's name.

Conclusion

With more than 250 herbal and Ayurvedic products in its portfolio, Dabur is the largest Ayurvedic and natural healthcare firm in the world and a prominent FMCG brand in India thanks to its strong track record. It continues to have a distinct outlook on the future. Nonetheless, there are several obstacles due to rivals and laws controlling the FMCG sector. Dabur is positioned to play a big part as India expands and the demand for natural healthcare rises.

If the business manages its difficulties effectively and seizes future opportunities promptly, it emerges as a real victor over its rivals. Additionally, before making any investing decisions, we advise speaking with your financial advisor.

FAQs

When was Dabur founded?

Dabur was founded in Kolkata by Ayurvedic practitioner S. K. Burman in 1884.

What are the nine different power brands of Dabur?

Nine different power brands that are currently part of Dabur's FMCG portfolio in India include Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika are a powerful global brand.

How does Dabur make money?

Dabur makes money through its different brands, digitisation, and dominating the rural market.