Dabur’s rural growth in March quarter has been growing ahead of urban market by 400 bps driven by the company’s increasing rural footprint.
Furthermore, the company has broadened product offerings in rural markets by introducing new affordable and rural-specific packaging across various categories, the company said in an exchange filing.
"Our rural coverage during the year expanded by 22,000 villages to 122,000 villages. Dabur's rural distribution has, in fact, been the highest in the industry, giving us distinct advantage and helping us drive rural growth. These ahead of curve investments have resulted in our rural business growing 400 bps ahead of urban.” said Mohit Malhotra, CEO, Dabur India.
This strategy aims to cater to these markets and stimulate demand growth. Additionally, the FMCG major has invested in consumer engagement activities in rural areas to enhance outreach to consumers, providing them with opportunities to interact with and experience the products first-hand.
Read more: Dabur Q4 net profit rises 16.5% to Rs 341 crore, declares Rs 2.75 dividend
In Q3FY24, Dabur’s rural growth was ahead of urban by 200 bps (basis points), Malhotra had said in Q3 post-earnings conference call. In the previous quarter, the company’s rural growth was in the range of approximately 6-6.5 percent, surpassing the urban growth, which was around 3.8 percent and fell within the range of 5-10 percent.
In this quarter, the FMCG business in India achieved a volume growth of 5.5 percent for the entire year. Key brands and products in India experienced significant growth, leading their respective categories and gaining market share across 95 percent of the portfolio.
Dabur India on May 2 reported consolidated net profit of Rs 341.22 crore in the March quarter, registering a growth of 16.5 percent from Rs 292.76 crore in the same quarter of the previous financial year.
In Q4FY24, the total revenue of the company was Rs 2,814.64 crore, rising 5.11 percent from Rs 2,677.80 crore in the year-ago quarter, the FMCG major said in a regulatory filing.
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