**Dabur India Invests in Wellness Brands to Meet Consumer Demand**
As consumer preferences in India increasingly lean towards wellness and natural products, Dabur India Ltd is strategically investing new capital to maintain its competitive edge. The 140-year-old fast-moving consumer goods (FMCG) giant has launched a ₹500-crore venture investment platform aimed at supporting rapidly growing, digital-first brands in the natural health, beauty, and home care sectors.
Through Dabur Ventures, the company plans to make minority investments ranging from ₹25-75 crore in start-ups that align with its focus on Ayurveda and natural products, according to Abhinav Dhall, the group head of corporate strategy and executive director at Dabur India. This initiative reflects a broader industry trend where established players are adapting to changing consumer preferences and appealing to younger shoppers. It not only provides Dabur with insights into emerging trends but also creates a potential pipeline for future acquisitions. The funding for this initiative will be sourced entirely from Dabur’s balance sheet.
Dhall emphasized the distinct nature of this investment strategy, stating, “From the balance sheet of Dabur, we will do FMCG-oriented investments that fit with Dabur’s long-term vision of Ayurveda and naturals. Today, we have to be relevant to the newer, emerging consumer that needs to experience our brands at a younger age. We have to expose ourselves to newer bets, and therefore, get in a bit early on into companies. If we find something promising, we also want to eventually acquire such companies.”
Legacy FMCG companies are increasingly investing in new-age brands to better understand evolving consumer preferences. For instance, Wipro Consumer Care Ventures recently raised a second fund of ₹250 crore and aims to make three to four new investments annually. Its portfolio includes brands like Let’s Try and The Baker’s Dozen. Similarly, Marico Ltd is diversifying its offerings beyond its traditional categories, with products like Saffola Oats and recently acquired brands such as Beardo and Just Herbs.
Dabur has set aside ₹6,500 crore for acquisitions, and in FY25, the company reported a 1.2% increase in consolidated revenue, reaching ₹12,563 crore, while profits saw a 4% decline to ₹1,768 crore. Dabur’s merger and acquisition strategy is twofold: it will continue to pursue M&A opportunities for its core FMCG business, focusing on high-margin regional firms, while its venture arm will invest in early-stage companies, with the potential for future acquisitions.
In summary, Dabur India is positioning itself to adapt to the evolving market landscape by investing in innovative brands that resonate with the modern consumer, ensuring its relevance and growth in the competitive FMCG sector.
**FAQ**
**What is Dabur India’s new investment strategy?**
Dabur India has launched a ₹500-crore venture investment platform to invest in digital-first brands focused on natural health, beauty, and home care, aligning with its Ayurveda-led strategy.
