Mohit Malhotra is the chief executive officer of the $1.2-billion Dabur India Ltd, one of India's largest consumer products maker and best Ayurvedic company. Under his leadership, Dabur has created a global footprint and has emerged as a transnational consumer products maker with presence across 100 countries. He shared his insights with The Himalayan Times into the challenges and opportunities in the FMCG sector, Dabur's growth plans and CSR initiatives, among other pertinent issues. Excerpts:
What role does Dabur play in advancing cross-border trade and collaboration between India and Nepal in the FMCG sector?
Dabur is among the oldest and the largest Indian enterprises to set up operations in Nepal. Since 1989, we have been working towards fostering cross-border trade and collaboration between the two countries, leveraging the historical and cultural ties that bind us. Over the years, Dabur Nepal has emerged as one of the largest FMCG companies in Nepal and has been among the largest exporters from Nepal for nearly two decades.
Our commitment to the region extends beyond trade as we have been a significant contributor to job creation here, providing employment opportunities and fostering economic growth. Our initiatives have not only driven mutual growth but also strengthened the economic ties between India and Nepal, paving the way for a prosperous future for both nations. Our efforts have also been recognized with Dabur Nepal receiving several awards like Best Taxpayer in the Export Business, Commercially Important Person, etc. from different government bodies.
What makes Dabur Nepal a model for aligning local needs with global ambitions within Dabur's operations?
Dabur Nepal has successfully aligned local needs with global ambitions on the back of our strategic leadership, robust feedback mechanisms, and tailored product offerings. The leadership team at Dabur Nepal, which is a mix of local and Indian talent, have played a pivotal role in localizing strategies to meet the unique needs of the Nepalese market. By understanding the local socio-economic landscape and consumer behaviour, we have been able to implement strategies that resonate with the local population while aligning with Dabur's global vision of being 'Dedicated to the Health and Well-Being of Every Household'. The recent investment of Rs 9.68 billion for capacity enhancement and product diversification is a testament to the importance that Dabur places on Nepal.
How does Dabur's presence in Nepal create opportunities for local businesses and suppliers?
Dabur has significantly contributed to the growth and development of local businesses and suppliers through various strategic initiatives and collaborations. Ever since we first set foot in Nepal way back in 1989, we have been established strong partnerships with local farmers and suppliers in Nepal to source high-quality herbal ingredients. Through our Medicinal Plant Project, we have been providing training and resources to farmers, enabling them to cultivate medicinal and aromatic plants sustainably.
Today, we operate a state-of-the-art manufacturing facility in Nepal, which produces a wide range of FMCG products. We work very closely with local logistics providers and distribution networks to ensure efficient delivery of products across Nepal. We are constantly supporting local businesses by sourcing more and more raw materials and packaging materials from Nepal and helping developing local vendors through technology and knowledge transfer.
Several small businesses in Nepal have thrived by partnering with Dabur. Our intent has always been to create valuable opportunities for local businesses and suppliers in Nepal, fostering economic development and mutual growth.
How does Dabur maintain its Ayurvedic heritage while keeping pace with modern consumer demands in Nepal and globally?
Dabur has always believed in the benefit of Ayurveda and has been developing and successfully introducing products based on Ayurveda to cater to the ever-changing needs of our consumers. We have been working towards modernising and contemporising Ayurveda by introducing products that offer the traditional and time-tested benefits of Ayurvedic ingredients in modern-day, ready-to-use formats.
Dabur has a strong in-house research wing that follows a 'bush-to-brand' approach.
Today, we have a fully automated state-of-the-art greenhouses in Banepa (Nepal) and Pantnagar (India), in addition to satellite nurseries and demo cultivation sites across both the countries. These greenhouses are dedicated exclusively to growing and nurturing medicinal plant saplings. The facility supplies elite planting material to farmers across the country, free of cost, and offers training to farmers on sustainable cultivation practices. This enables the farmers to cultivate and supply well-standardized medicinal plants on a large scale. In a year, Dabur grows and distributes around lakhs of saplings of medicinal plants and herbs to farmers across India and Nepal, free of cost, from our greenhouses.
What key opportunities do you see for Dabur in Nepal's evolving FMCG landscape, and how do you plan to tap into them?
The rapid spread of the COVID-19 pandemic a few years back led to a surge in demand for immunity-boosting Ayurvedic Health Care products in Nepal. Ayurveda, with its time-tested remedies and benefits, gained prominence in the minds of consumers who were seeking natural remedies to fight against the illness.
While the demand for Ayurvedic products has been on the rise for a few years now riding on the increasing popularity of natural and herbal medicines and their benefits among the consumers, the spread of the COVID-19 pandemic led to a sharper growth in consumer interest, awareness and demand for Ayurvedic therapies and products .
Nepal's FMCG market presents significant opportunities for growth, both in rural and urban areas. To ensure that our products reach every corner of Nepal, we are investing in enhancing our last-mile distribution capabilities. This includes strengthening partnerships with local logistics providers and leveraging technology to improve supply chain.
We are also deepening our penetration in rural markets of Nepal by enhancing our distribution network and introducing affordable product packs tailored for rural consumers. In urban areas, the focus will be on premiumization and introducing innovative products that cater to the evolving lifestyle needs of urban consumers.
With rising competition, how does Dabur plan to stay ahead in the Nepalese market?
Competition has always been a part of the landscape where we operate and it's nothing new for us. I feel, healthy competition is, in fact, beneficial for both Dabur and for the category overall.
Dabur, as a brand, evokes feelings of Trust, Health & Well-Being in the consumer's mind. We have been investing in research and developing high quality products to retain its leadership position in the market. Going forward too, we will continue to invest in research, and develop products that meet the ever-changing needs of its consumers. We will be aggressively increasing the awareness and visibility of our products and enhancing their availability across channels.
We continue to introduce new products, invest in enhancing our distribution network and effective communication with our consumers to spread awareness about the high quality of our products as also the benefits that they offer.
At Dabur, we place a strong emphasis on understanding local consumer preferences and market dynamics. By integrating local feedback into its product development and marketing strategies, we tailor our offerings to better suit the Nepalese market. This localized approach helps us stay relevant and competitive.
Dabur is committed to continuous innovation and R&D, investing in developing new products and improving existing ones to stay ahead of market trends.
How does Dabur integrate sustainability into its operations in Nepal to meet the rising expectations of eco-conscious consumers?
Sustainability is all about catering to the changing needs and preferences of consumers while taking into account the preservation of our planet and the environment. It is a continuous journey and Dabur has made rapid strides in this direction as we work towards not just creating sustainable products -- like outer carton-free toothpaste, shampoo refill pouches to reduce consumption of paper and plastic -- but also making our operations as well as operations within our value chain, greener.
Our cohesive and structured set of policies, strategies and interventions have helped us set ambitious milestones in our journey towards meeting our long-term Environment, Social and Governance (ESG)-related goals.
Dabur has set itself the target to become a Net Zero Emission enterprise globally by 2045. We are progressing well on this target by growing the use of renewable and cleaner energy in our operations besides reducing Water Intensity in our operations and emerging as a Water Positive Enterprise by 2030.
Speaking of Nepal specifically, we have adopted eco-friendly packaging solutions and green manufacturing processes to minimize its environmental footprint in Nepal too. We use recyclable materials for packaging and have implemented energy-efficient practices in our manufacturing facilities. For instance, Dabur's facility in Nepal utilizes a 'gassifier' project that uses rice husk as fuel, significantly reducing energy costs and carbon emissions.
How does Dabur keep pace with evolving consumer needs and preferences in Nepal's health and wellness market?
The name Dabur evokes feelings of Trust, Quality and Health in the minds of our consumers. A homegrown consumer products company, Dabur is an R&D-driven organisation that is committed to consistently developing superior products based on nature and the ancient science of Ayurveda, and presenting them to consumers in modern, ready-to-use formats.
There's a lot that goes into creating a Dabur product. It begins with extensive research that can take months or even years. We then gather the best local ingredients by tapping the vast goodness of nature to create highly efficacious products that meet the needs and aspirations of our consumers.
We have been at the forefront of Nepal's health and wellness market by continuously adapting to evolving consumer needs and preferences through several strategic initiatives. Dabur employs robust mechanisms to track market trends and gather consumer feedback. By leveraging real-time data and conducting regular market research, we stay attuned to the latest consumer preferences and emerging health trends. This proactive approach enables the company to swiftly adapt its product offerings to meet the changing demands of Nepalese consumers. Like Hajmola Lapsi and HajmolaTitaura are borne out of local consumer insights.
By integrating these strategies, Dabur continues to meet the evolving needs of Nepalese consumers, reinforcing its position as a trusted leader in the health and wellness market.
Does Dabur develop any localized products specifically for Nepal, and if so, could you share examples?
Over the years Dabur has developed several products to cater to the varying needs of Nepalese consumers. Few Notable products are ProStyle Hair Oil for Men, Burrst Range of Fruit drinks, Hajmola Lapsi and Titaura Variants and Dynamite energy drink.
What are Dabur's growth plans for Nepal, and are there any new product categories you plan to introduce?
Innovation is critical to our sustained success, and we will continue to introduce new products to strengthen our portfolio. We are launching a range of new products to increase our addressable market, which is the long-term strategy for Dabur. To support this, we have not only increased our R&D spends but are also ensuring that innovations are targeted and quick to market. Today, new products contribute to around 4 to 5% of our Sales.
The past few months have seen us launch a range of new products like Glucose Lemon and Cola, Honey Lemon Ginger, Vatika Ayurvedic Shampoo, HajmolaLimcola & Titaura variants, Gulabari Alovera, Dynamite Energy Drinks, Chiuri Honey, to name few.
Going forward, we will continue to launch new products across verticals like Health Care, Personal Care and Foods & Beverages.
Does Dabur see potential for acquisitions or investments in Nepal's FMCG sector as part of its growth strategy?
We have a war chest of around INR 6,000 Crore ready for future acquisitions. We continue to look for targets which are synergistic and make a good strategic fit with our business. However, we don't have anything on our table as of now.
As the Global CEO of Dabur, what is your overarching vision for the company, and how do you envision Dabur's role in shaping the future of the FMCG sector globally and in the SAARC region?
My overarching vision for the company is to continue our legacy of being dedicated to the Health and Well-Being of every household through a range of natural and Ayurvedic products while driving sustainable growth and innovation. Our goal is to make Dabur a global leader in the FMCG sector by leveraging our rich heritage and expertise in Ayurveda to meet the evolving needs of consumers worldwide, and particularly in Nepal, which is one of our fastest growing overseas markets.
By contemporizing Ayurveda and making it relevant for the new generation, we aim to provide natural and effective solutions that improve the quality of life for our consumers. This commitment to health and wellness is what sets Dabur apart and drives our vision for the future.
I strongly believe in the power of local partnerships to drive mutual growth. In the SAARC region, we are committed to working closely with local farmers, suppliers, and businesses to create a robust supply chain. These collaborations not only ensure the quality and authenticity of our products but also contribute to the economic development of the communities we operate in.
Dabur has been actively involved in community-building initiatives. Could you share some impactful programs led by Dabur that have directly benefited Nepalese communities?
Our commitment to social responsibility and community engagement is evident in our efforts to empower communities and contribute to the prosperity of the communities we serve. We believe in not just improving the quality of life of our communities but also being a neighbour of choice by implementing strategic need-based community-development interventions.
In Nepal, we have been actively involved in various community-building initiatives focusing on health, education, sustainability, and economic empowerment. Some impactful programs that have directly benefited Nepalese communities include running a health post near our manufacturing facility, offering free health check-ups to communities. We have also partnered with Bir Hospital to donate medical equipment for the Critical Care Unit, significantly enhancing the hospital's capacity to provide quality healthcare services. Additionally, Dabur has contributed to the National Program for Prevention and Treatment of Burn Injuries, supporting the treatment and rehabilitation of burn victims.
We have collaborated with local organizations to empower women and prevent violence against women. We have also rolled out special Environment Sustainability projects like the agroforestry project in the Kailash Sacred Landscape to address forest degradation, poverty, and climate change.
Dabur has, in the past, also contributed to the Prime Minister's Disaster Relief Fund, providing essential support during natural disasters. Our timely assistance has helped communities recover and rebuild after such events.
Lastly, what message would you like to convey to the Nepalese stakeholders, including consumers, partners, and employees, as Dabur continues its journey of growth and collaboration in Nepal?
As the CEO of Dabur, I would like to extend my heartfelt gratitude to all our stakeholders in Nepal, including our valued consumers, dedicated partners, and hardworking employees. Their unwavering support and trust have been instrumental in our journey of growth and collaboration in this beautiful country. Our journey in Nepal would not have been possible without the strong partnerships we have built over the years and we are committed to growing and deepening this relationship, driving mutual growth and success.
As we move forward, Dabur remains dedicated to sustainable development, community empowerment, and innovation. We are excited about the future and the possibilities it holds. Together, we will continue to build a brighter, healthier, and more prosperous future for all.
