Dabur India to 'aggressively pursue' acquisitions to create future-fit portfolio

Dabur India reported a 8.4 percent decline in net profit to Rs 320.13 crore in the March quarter.

Fast-moving consumer goods player Dabur India Ltd. is betting on acquisitions to create a future-forward portfolio and boost revenue.

In the post-earnings call with analysts and investors, CEO Mohit Malhotra said that Dabur India will "aggressively pursue" a two-pronged M&A strategy. "One will be revenue accretive to us, which will substantially add to the revenue of the company because growth in GT is a little subdued. The second will be creating a future-fit portfolio, which resonates with the new generations. That is what we are looking at."

As Dabur India bets on the premiumization theme to woo urban consumers with deeper pockets, the firm will seek brand acquisitions to boost its portfolio offerings. The CEO noted that Dabur India would attempt acquisitions in the healthcare, wellness, and foods spaces. On the personal care front, Dabur will look towards more organic initiatives to boost growth.

The core brands, also, will see modernization in the organic format. However, if Dabur India wants to foray into a new brand or a new category, that will happened through the M&A format to supplement Dabur's efforts of organic business with inorganic business.

Also Read | Dabur India Q4 net profit falls 8.4% to Rs 320 crore, declares Rs 5.25 dividend

Dabur India reported a 8.4 percent decline in consolidated net profit to Rs 320.13 crore in the March quarter. The homegrown FMCG major had posted a net profit of Rs 349.53 crore in the year-ago period.

Its revenue from operations was up 0.5 percent to Rs 2,830 crore during the quarter under review. It was Rs 2,814.6 crore in the corresponding quarter of the previous fiscal year, Dabur India said in a regulatory filing.