Dabur Fast-Tracks Health Product Launches, Says CFO Malik
“We have a fearless approach,” Dabur’s Malik said.
Dabur India Ltd. is fast-tracking its new product launches to tap demand as people become more health conscious during the pandemic.
The consumer goods maker saw demand for its chyawanprash rise sevenfold during the lockdown, according to Chief Financial Officer Lalit Malik. Indians also increased consumption of honey, ghee, gooseberry jam, sesame oil, berries and various herbs and spices — known to boost immunity. Along with health category, hygiene products will also see a surge in demand, he said.
That's why the maker of Hajmola, Pudin Hara, Real Juice and Vatika hair care products is set to launch a number of Ayurveda-based "immunity boosting" products before the planned schedule.
Dabur launched tulsi tonic in April, ahead of its planned June launch, apart from herb churans. It also launched a sanitiser and a vegetable washing product during the lockdown. Peers ITC Ltd. and CavinKare Pvt. also launched a similar product.
Consumer goods makers are trying to tap demand for such products as people look for ways to avoid contagion. However, health experts have so far found no evidence to suggest that immunity boosters prevent Covid-19 infection. Also, they recommend washing vegetables and fruits with plain water and maintain hand hygiene to avoid any risk.
Cost Optimisation Instead Of Cost Cuts
Dabur's push to gain market share won’t come at the cost of margins, the Malik said. Neither did Dabur cut salaries or lay off employees, something a large number of other companies resorted to.
The company, however, reduced television ad spends. TV ads were aired on news channels, and during telecast of 'Ramayana' and 'Mahabharata' to reach consumers. The company, instead, focused on digital advertisement, allowing them to reach more consumers at a lower cost, he said.
“We have not just focused on cost reduction, but cost optimisation… in each and every line item of expenditure,” he said. “We are cutting the fat but not the bone.”
Whatever extra room Dabur has on its margin, the company will invest in operation to fuel growth, Malik said. As for the TV ad spends, he said those will return when the new programmes do.
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