Dabur India - Expansion Into Adjacencies Through Power Platform To Drive Faster Growth: ICICI Securities

ICICI Securities Report

The theme for Dabur India Ltd.'s analyst meet was ‘portfolio enhancement’. It provided a strategy to redefine core for younger India (stronger scientific claims, new-age formats, aspirational packaging) while boosting the total addressable market by expanding into adjacencies through power platforms.

In our view, its power platform strategy appears to increase business complexity (a key concern for consensus) which Dabur intends to manage through its organisational strengths.

Driving premiumisation is unlikely to be an easy journey for Dabur (middle class and rural India positioned). In the short term, Mohit Malhotra (Chief Executive Officer) spoke about consistent rural recovery and urban demand getting stronger with improving gross margin being partially reinvested into ad spends. Maintain 'Add'.

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