Chyawanprash, and the government’s blessings, are helping Dabur make hay even when the sun don’t shine

• India’s organic food market may grow at a compounded annual growth rate of 20% to $2.1 billion by 2024.
• Dabur accounts for almost 25% of the branded ayurvedic market in India.
• Forbes had estimated Burman’s net worth at $8.3 billion in September 2019.

Dabur India’ share price hit the highest level in a year on February 6. The stock has surged nearly 7% in the last four days since the company reported a lacklustre 5.6% volume growth in the latest quarter ending December 2019.
The secret of the strength in Dabur’s share price is Chyawanprash, a dietary supplement⁠— based on Ayurvedic texts ⁠— that has everything from sugar, honey, ghee, Indian Gooseberry (amla) jam, sesame oil, berries to various herbs and spices.

While Dabur struggled to sell other product segments, Chyawanprash sales grew a solid 25%, lifting the growth in the entire healthcare segment to 12%. Other categories like hair oils, skincare, and home care waddled anywhere between zero and 5%. The overall consumer confidence in India was at a six-year low.



A wave of Indian consumers who prefer tags like organic and ayurvedic products are sweeping products like the Chyawanprash off the shelves. India’s organic food market may grow at a compounded annual growth rate of 20% to $2.1 billion by 2024, according to IMARC.

And if that’s not enough, the Indian government has rolled out the red carpet for those making a business out of India’s traditional wisdom. They get support both in terms of infrastructure as well as lower tax rates.

The fad and the freebies have attracted even multinationals like Unilever, Colgate, Nestle, Pepsi, and Coke into giving their brands an Indian flavour.

Even Dabur’s new launches between October and December 2020 ⁠— Hajmola Chatpati Hing, Odonil Aerosol, Real Aloe Vera Kiwi Juice and Arshoghani Vati ayurvedic tablet ⁠— reflect the same theme.

Dabur in the driver’s seat

But, it is Dabur that accounts for almost 25% of the branded ayurvedic market in India, according to Dabur. And the FMCG major has thrived even as newer competitors like Patanjali— Baba Ramdev’s venture that sells Ayurveda-based products— have failed to sustain the momentum.

That is the power of the 136-year old Dabur brand. And the company’s billionaire Chairman, Anand C Burman, is making hay even when the sun don’t shine.

Forbes had estimated Burman’s net worth at $8.3 billion in September 2019. In 2015, the Burman family bought a bungalow in New Delhi’s Golf Links area for ₹160 crore ($2.2 million). The Burman family also owns a property in the posh Prithviraj Road in Central Delhi.

Dabur ranks among the country’s top five FMCG companies and has an annual consolidated revenue of ₹7,700 crore. It may be even bigger when the tide turns for the better.

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