Govt push will support rural growth in second half of the year and onwards: Dabur

Consumer goods maker Dabur on Thursday told ET Now that government push will support rural growth in the second half of the year and onwards.

"It's been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets, to report industry-leading performance across our key verticals. This allowed us to plough higher investments behind our brands to drive market expansion and sustain our growth momentum," said Mohit Malhotra, CEO of Dabur.

“Our focussed approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 350 bps during the quarter,” he added.


The sales of fast-moving consumer goods started showing signs of recovery in the January-March period, with rural growth outpacing urban areas for the first time in five quarters.

The rural segment accounts for 45%-50% of Dabur's total revenue.

The consumer care segment, which contributes 77% to the company's revenue mix, climbed 7% during the quarter, aiding a 7% rise in total revenue.

The company's earnings were also aided by stable commodity prices during the quarter. It posted a 1% rise in the cost of raw materials.

Early onset of monsoon has boosted the prospects of bumper harvests that could further drive farm incomes and rural consumption, analysts said.

Dabur's shares rose 1.5% after the results. They gained 15% in the June quarter compared to a 5.2% rise in the Nifty fast-moving consumer goods index.