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Investment 04 Jan 2016

What made FMCG major Dabur to strategise combat move against Ramdev’s Patanjali

The Burman family-led Dabur company is betting big on key consumer categories like toothpastes, hair oils & home care with a sharp jump in its net profit from Rs.287.5 crore a year ago at Rs 341.1 crore.

Home-grown FMCG major Dabur is readying a strategy to take on Baba Ramdev's Patanjali that has disrupted India's Ayurveda and naturals market with a battery of consumer products.

After FMCG giant Hindustan Unilever (HUL) showed aggression in the category by reviving its old Ayurveda brand Ayush and acquiring new ones in December 2014, Dabur is in the process of modernizing its Ayurveda portfolio and introducing new products at the same time.

To start with, the Burman family-led company will beef up its women's healthcare range and follow it up with product launches in health and baby care segments. This swelling move also includes its bestseller Chyawanprash that contributes around 40 per cent to the company’s annual sale.

Going forward, the company’s Category Head of mother and child care products, Ramarao Dhamija said,"As a first step, we are introducing our traditional Ayurvedic post-natal health tonic Dashmularishta and the menstrual pain relief tonic Ashokarishta in fruit flavours.”

He further added, "This will bridge the gap between health and taste. We will launch these in modern formats.”

The Industry experts said this is part of Dabur's plans to make Ayurvedic remedies relevant to the modern-day consumer.

The move comes against the backdrop of the rising popularity of Ramdev's Patanjali products luring mostly the urban consumers. The Haridwar-based Patanjali trust sells everything from toothpaste to noodles at nearly half of what rival products cost.

Apart from Patanjali, HUL too seems to have sniffed an opportunity in the Ayurveda and naturals space.

Reportedly, HUL brought back its Ayurveda brand Lever Ayush and re-launched it as a premium brand in September last year. Two months later, it also acquired Mosons Group's flagship brand 'Indulekha' for Rs 330 crore.

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