Slowdown in consumption led by rural demand: Dabur

New Delhi: FMCG maker Dabur India is optimistic of a gradual uptick in consumption this fiscal and expects its power brands to drive growth as it expands deeper into the hinterland, its chairman Mohit Burman has said. Dabur expects an improvement in rural consumption, where it will continue to expand its footprint, while for urban markets, it will increase play by adding more premium offerings and entering into adjacent categories, according to the latest annual report of the company.

“We are optimistic of a gradual uptick in consumption trends over the course of the next year, considering predictions of a normal monsoon, improving macroeconomic indicators, continued government spending on infrastructure building, and lower inflation,” Burman said while addressing the shareholders of the company.

The company is “confident” about the resilience of its business strategy. It expects its power brands to continue to drive growth as it expands its reach deeper, increasing its total addressable market. The 2023-24 fiscal saw a slowdown in consumption led by rural demand, which was impacted by high food inflation and erratic rainfall. Dabur’s portfolio currently includes nine distinct power brands – eight in India and one in the overseas markets, which together account for around 70 per cent of its total sales.