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Q1-2016: Dabur marketing spends up 15.5%

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BENGALURU: Dabur India Limited (Dabur) spent 15.5 per cent more towards advertising and publicity expenses (ASP) in the quarter ended 30 June, 2015 (Q1-2016) at Rs 330.61 crore (16 per cent of Total Income from Operations or TIO) as compared to the Rs 286.27 crore (15.3 per cent of TIO) in Q1-2015 and 24.6 per cent more than the Rs 265.39 crore (13.6 per cent of TIO) in Q4-2015.

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

Dabur’s products

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Among the products that Dabur has include health supplements like Chyawanprash, Ratnaprash, Honey, Glucose; digestives like Hamjola – Hajmola Chuzkara and Natkhat Amrud, Pudin hara fizz; OTC and Ethicals such as Lal Tail, Honitus Syrup; Haircare products like Vatika, Vatika Brave and Beautiful digital, Anmol Jasmine marks; Toothpaste brands like Dabur Red, Babool and Meswak; skincare products like Fem natural fairness, Gold Bleach, Gulabari; Homecare brands such as Odomos, Odonil and Sanifresh; Food brands such as Real and Real Active.

“The macro-economic scenario remains challenging. In this subdued environment, we remained watchful, agile and prudent, managing our business dynamically to deliver another quarter of competitive and profitable growth. Our India FMCG business ended the first quarter of 2015-16 with an 11.6 per cent growth, led by an 8.1 per cent volume growth. Our EBITDA marked a 21.6 per cent growth during the quarter,” said Dabur India CEO Sunil Duggal said.

“Going forward, we will focus on our cost efficiencies and pursue an aggressive and profitable growth strategy. We continue to strengthen our business for the long term by driving innovation and investing behind our brands. With these initiatives, we are confident of growing ahead of the market and improving our market share,” Duggal added.

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Trends

The company’s ASP in Q1-2016 at Rs 330.61 crore (16 per cent of TIO) was the highest in terms of actual rupee spends as well as in terms of percentage of TIO during the 11 quarter period starting Q3-2013 until Q1-2016. Over the 11 quarter period under consideration, Dabur’s ASP in absolute rupees and ASP in terms of percentage of TIO both show a linear increasing trend. Please refer to Fig 1 below. 

Fig 1 below indicates that ASP in terms of percentage of TIO follows a linearly increasing zigzag line, with peaks in Q1 and Q3 and valleys in Q2 and Q4 of a financial year. Based on this, it is quite likely that the company’s ASP in Q2-2016 (next quarter) may be lower in terms of percentage of TIO.

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Dabur TIO in Q1-2016 at Rs 2069.49 crore was 10.6 per cent more than the Rs 1868.86 crore in Q1-2015 and was 6.1 per cent more than the Rs 1949.74 crore in Q4-2015. The company’s TIO shows a linear increasing trend during the eleven quarter period under consideration in this report.

Dabur PAT for Q1-2016 at Rs 262.10 crore (12.7 per cent of TIO) was 24.3 per cent more than the Rs 210.81 crore (11.3 per cent of TIO) in Q1-2015, but was eight per cent lower than the Rs 284.86 crore (14.6 per cent of TIO) in the immediate trailing quarter. PAT in abslute rupees as well as in terms of percentage of TIO show linear increasing trends. Please refer to Fig 2 below.

Category Growths

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Dabur says that its Toothpaste business, led by strong demand for Dabur Red Paste and Dabur Meswak, ended the first quarter with a near 24 per cent growth. The OTC and Ethicals business ended the first quarter with a 16.7 per cent growth, while the Foods category reported a 15.5 per cent growth during Q1. While the Hair Oil category reported a 13 per cent growth during the period, the Shampoo business ended the quarter with an 11.5 per cent growth. The Home Care business grew by nearly 12 per cent during the period.

Click here to read unaudited results 

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Brands

Dabur buys minority stake in Ras Beauty for Rs 60 crore

Dabur Ventures deal backs fast-growing luxury skincare brand

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MUMBAI: Dabur India Limited has dipped into the world of luxury skincare, signing a definitive agreement to acquire a minority stake in Ras Beauty Private Limited for Rs 60 crore. The investment marks the first bet from Dabur Ventures, the FMCG major’s Rs 500 crore platform set up in October 2025 to back high-potential, new-age direct-to-consumer brands.

Founded in Raipur by Shubhika Jain, her sister Suramya Jain and their mother Sangeeta Jain, Ras Beauty has grown from a family-led passion project into a fast-scaling “Farm-to-Face” skincare label. Its range of face elixirs, serums and moisturisers blends essential oils with nature-derived actives, striking a balance between botanical purity and laboratory precision.

The numbers tell their own story. Ras has clocked a three-year Cagr of around 75 per cent and an annual run rate of approximately Rs 100 crore, all while maintaining strong gross margins. That growth has been fuelled by a digital-first approach, in-house R&D and manufacturing, and a sharp focus on clean, sustainable sourcing.

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Dabur India executive director and group head corporate strategy Abhinav Dhall, said the company was drawn to Ras’s distinct positioning at the intersection of nature, science and luxury. He added that the premium beauty segment is poised for robust expansion over the coming decade, and that Ras is well placed to capture that opportunity.

For Ras, the partnership is as much about scale as it is about shared philosophy. Co-founder and CEO Shubhika Jain said Dabur’s 141-year legacy of building trusted, purpose-led brands makes it a natural ally. The capital infusion, she noted, will help accelerate the brand’s omnichannel footprint, deepen research capabilities and invest in team and brand building, with an eye on establishing Ras as a leading Indian luxury skincare name both domestically and overseas.

With this move, Dabur is not just investing in a skincare label. It is placing an early wager on India’s growing appetite for premium, conscious beauty, and signalling that heritage FMCG players are ready to play in the new-age D2C arena.

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