New Delhi, Feb 4 (PTI): Fast-moving consumer goods (FMCG) giant Dabur India has decided to shorten its strategic vision cycle from four years to three in an effort to enhance agility and adapt to an increasingly volatile market environment. This move comes amid a slowdown in the FMCG sector and a fluctuating geopolitical landscape.
To ensure a sharper focus and more effective strategic planning, Dabur has engaged global consulting firm McKinsey & Co. to refine and align its business strategies for the next three years, CEO Mohit Malhotra announced during an earnings call.
“This exercise has already begun, and we plan to conclude it by the end of the fiscal year. It will enable us to capture emerging opportunities and navigate the future with a sharper and more focused vision,” Malhotra stated.
Dabur, which has traditionally followed a four-year vision cycle and is currently in its seventh cycle, sees the need for more frequent strategic recalibrations. "Earlier, we had a four-year vision cycle, but given the volatile macroeconomic conditions and the sluggish performance of the FMCG sector, we believe it is crucial to validate our strategies through an external consultant," he added.
By reducing the vision period, Dabur aims to refine, realign, and swiftly adjust its strategies to remain competitive. "Four years is now considered a long duration in such an unpredictable market. The three-year cycle is more in line with industry best practices," Malhotra explained.
As part of the vision exercise, McKinsey will conduct category reviews, validate strategies across key segments—including Chyawanprash and beverages—and define financial milestones for the next three years. The results of this strategic assessment will also be integrated into Dabur’s budgeting cycle for the upcoming fiscal year.
Additionally, Malhotra emphasized that the external consultancy will critically assess all business verticals, including both high-performing and underperforming segments, to determine their strategic viability. "Any business that does not have a clear right to win will be scrutinized. There will be discussions between the management and the consultants to decide whether to retain, scale down, or reduce investments in certain areas. This will be a highly strategic and comprehensive exercise," he noted.
Meanwhile, Dabur India reported a 1.85% increase in consolidated net profit, reaching ₹515.82 crore for the December quarter, while revenue from operations grew by 3% to ₹3,355.25 crore in the October-December period.
Dabur owns a portfolio of well-known brands, including Dabur Amla, Dabur Vatika, Dabur Chyawanprash, Dabur Honey, Honitus, Pudin Hara, Dabur Lal Tail, and the juice brand Real.
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