Dabur India is restructuring its product portfolio, adjusting prices and accelerating cost-saving initiatives as rising crude oil prices and geopolitical uncertainty in the Middle East increase inflationary pressure across the fast-moving consumer goods (FMCG) industry. The company has already discontinued six brands and eliminated 350 stock keeping units (SKUs) as part of an ongoing exercise to improve product profitability and simplify its operations.
The strategy combines selective price increases, premiumisation, product mix improvements and operational efficiencies. Dabur is attempting to protect margins without making its products unaffordable for price-sensitive consumers. The company is also targeting higher savings through its Project Samriddhi programme while increasing investments in advertising and brand development to sustain demand. <Cite refs={[“turn509692search0″,”turn509692search1”]}/>
Dabur Eliminates 350 SKUs and Six Brands to Improve Profitability
One of Dabur’s key responses to the inflationary environment has been a review of its product portfolio.
The company has discontinued six brands and 350 SKUs, focusing on products that contribute meaningfully to revenue and profitability.
An SKU refers to a distinct product variant identified by its size, packaging, flavour or other characteristics. For example, different pack sizes of the same shampoo or toothpaste may be treated as separate SKUs.
Removing less profitable variants can help companies simplify manufacturing, reduce inventory requirements, improve distribution efficiency and focus marketing expenditure on products with stronger commercial potential.
Dabur CEO for India Business Herjit Bhalla said the company is evaluating products based on their business size and profitability.
The exercise will continue rather than being treated as a one-time portfolio clean-up. Products that cannot achieve acceptable profitability may be discontinued, while stronger products could receive additional investment.
The strategy is particularly important as inflation makes it more difficult for FMCG companies to absorb rising input costs without affecting their margins. <Cite refs={[“turn509692search0″,”turn509692search6”]}/>
Middle East Conflict Pushes Up FMCG Input Costs
The conflict in the Middle East has created additional cost pressures for consumer goods manufacturers.
Higher crude oil prices can affect several parts of the FMCG supply chain, including:
- Packaging materials: Petroleum-based inputs are used in plastics, bottles, films and other packaging products.
- Transportation: Higher fuel prices increase the cost of moving raw materials and finished products.
- Freight and logistics: Disruptions to shipping routes can increase transportation expenses and delivery times.
- Chemicals: Several chemicals used in personal care and home care products are linked to crude oil and petrochemical markets.
- International operations: Companies operating in affected regions can face higher supply-chain costs and distribution challenges.
Dabur’s international business has faced particular pressure from higher freight and logistics expenses.
The company reported that inflation in its supply chain affected operating profit during the September quarter, even as consolidated revenue recorded double-digit growth.
The challenge is to absorb as much of the additional cost as possible through operational efficiencies while passing on only a portion to consumers through selective price increases. <Cite refs={[“turn509692search0″,”turn509692search1”]}/>
Dabur Uses Calibrated Price Increases to Protect Margins
Dabur is adopting a selective pricing strategy instead of increasing prices uniformly across its portfolio.
The company is identifying categories and products where consumers may be able to absorb higher prices without significantly reducing purchases.
This approach is important in India’s FMCG market, where many consumers are highly sensitive to changes in product prices.
A sharp increase in the price of everyday products can encourage customers to switch to cheaper alternatives, reduce consumption or move towards smaller packs.
Dabur is therefore balancing price increases with efforts to remain competitive in lower-priced categories.
The company had already implemented price increases of up to 4% across parts of its portfolio earlier in 2026. It also reduced the grammage of selected ₹10 and ₹20 packs to manage higher input costs.
Management has indicated that further pricing actions could be considered depending on how inflation and commodity prices evolve. <Cite refs={[“turn509692search2″,”turn509692search3″,”turn509692search6”]}/>
Project Samriddhi Targets ₹170–200 Crore in Cost Savings
Cost optimisation is another major part of Dabur’s strategy.
The company’s Project Samriddhi programme has generated more than ₹115 crore in savings during its current three-year vision period.
Dabur now wants to increase the savings generated through the programme by 1.5 times, targeting approximately ₹170–200 crore.
The initiative focuses on improving efficiencies across the business, including manufacturing, procurement, supply-chain operations and product mix.
The company is also using IRIS, an initiative focused on continuous replenishment and better forecasting accuracy.
Improved forecasting can help manufacturers maintain appropriate inventory levels, reduce wastage and ensure that products are available when retailers and consumers need them.
Dabur’s management believes that operational efficiencies can fund a significant portion of its future investments in brand building and business expansion.
The strategy is important because the company wants to increase consumer-facing advertising and promotional expenditure by an additional 150–200 basis points in selected brands and categories. <Cite refs={[“turn509692search0″,”turn509692search1”]}/>
Premium Products Become a Bigger Growth Priority
Dabur is also using premiumisation to improve its product mix.
Premiumisation involves encouraging consumers to purchase higher-value products through differentiated formulations, packaging, features and positioning.
The company currently generates around 20% of its business from premium products and wants to increase this contribution to 23% over the next 18 months.
Management said its premium portfolio has grown approximately four times faster than Dabur’s overall growth rate during the previous 18 months.
The company sees opportunities to expand premium offerings across several categories, including personal care, healthcare and packaged consumer products.
A stronger premium portfolio can improve average selling prices and potentially support profitability.
However, the company must ensure that premium products remain relevant to consumers and do not weaken demand for its established mass-market brands.
Dabur’s core brands account for nearly 60% of its business, making continued investment in established products equally important. <Cite refs={[“turn509692search1″,”turn509692search6”]}/>
Dabur’s India FMCG Business Records 10.7% Growth
The company’s portfolio and pricing changes come as its domestic FMCG business continues to expand.
During the September quarter of FY27, Dabur’s India FMCG business reported revenue growth of 10.7%.
The growth was supported by both higher volumes and pricing.
| India FMCG performance | Q2 FY27 |
|---|---|
| Revenue growth | 10.7% |
| Volume growth | 5.5% |
| Pricing growth | 5.2% |
The figures indicate that growth was relatively balanced between additional product volumes and higher realisations from pricing.
Dabur’s standalone business recorded 8.9% growth, while margin dilution was limited to 10 basis points.
At the consolidated level, revenue increased 11.6% year-on-year, although operating profit faced pressure from higher supply-chain, freight and logistics costs.
The domestic performance suggests that consumer demand has remained relatively resilient despite inflation. However, the company will need to maintain volume growth while implementing additional price increases. <Cite refs={[“turn509692search0″,”turn509692search1”]}/>
Middle East Disruptions Create Challenges for International Business
Dabur’s international operations have faced additional difficulties because of geopolitical developments and disruptions to shipping routes.
The Middle East and North Africa region is particularly important to the company’s overseas business.
The conflict has affected logistics, freight costs and supply-chain planning, requiring the company to adjust how products and materials move between markets.
Dabur management said it had rerouted supplies through Egypt and India to navigate disruptions around the Strait of Hormuz.
The company has also used pricing adjustments and distribution initiatives to protect its market positions in regions including Egypt, Turkey, the Upper Gulf and Sub-Saharan Africa.
The international business recorded growth in the high teens during the first half of FY27, and management expects similar momentum in the second half.
However, continued geopolitical uncertainty remains a risk to costs, supply availability and consumer demand in affected markets. <Cite refs={[“turn509692search6″,”turn509692search0”]}/>
Can Dabur Protect Margins Without Losing Market Share?
Dabur’s strategy highlights the difficult choices facing FMCG companies during periods of sustained inflation.
Passing on the entire increase in input costs through higher prices could protect margins in the short term but may reduce affordability and demand.
On the other hand, absorbing most of the cost increases could weaken profitability and limit the company’s ability to invest in advertising, innovation and distribution.
Dabur is attempting to manage this balance through several measures:
- Discontinuing products that do not meet profitability expectations.
- Taking selective price increases where consumer demand allows.
- Increasing the contribution of premium products.
- Improving manufacturing and supply-chain efficiencies.
- Reducing operating costs through Project Samriddhi.
- Reinvesting savings into core brands and consumer-facing initiatives.
The success of this strategy will depend on how quickly input-cost inflation moderates and whether consumers continue accepting higher prices.
The Bigger Picture
Dabur’s decision to eliminate 350 SKUs and six brands reflects a broader shift in the FMCG industry towards profitability-led portfolio management. Companies are increasingly examining individual product economics rather than pursuing growth through an ever-expanding range of variants. Simplifying portfolios can improve manufacturing efficiency, reduce inventory complexity and free up resources for products with stronger demand.
The Middle East conflict has made this transition more urgent by increasing crude-linked costs, packaging expenses and freight charges. Dabur is combining pricing changes with premiumisation and cost savings to protect margins while maintaining investment in its brands. The company’s ability to sustain volume growth and improve product mix will be important in determining whether this approach can deliver stronger profitability without weakening consumer demand.
Looking Ahead
Dabur will continue reviewing its product portfolio, taking selective price increases and pursuing operational savings as it navigates inflationary pressures. Its target of ₹170–200 crore in cost savings, alongside a higher premium-product contribution of 23% over the next 18 months, provides measurable indicators of the strategy’s progress. The company will also seek to maintain investment in its core brands and increase advertising effectiveness.
The outlook will depend heavily on crude oil prices, shipping conditions and the broader geopolitical situation in the Middle East. If input costs ease, Dabur could gain additional room to improve margins and reinvest in growth. If inflation remains elevated, the company may need further pricing adjustments and cost reductions. For consumers, the changes could mean selective price increases, smaller pack sizes in some categories and a more focused product portfolio.
SEO Metadata
SEO Title: Dabur Cuts 350 SKUs, Sharpens Pricing Strategy Amid Middle East Inflation
Meta Description: Dabur has discontinued six brands and 350 SKUs as Middle East conflict-driven inflation pushes up costs. The FMCG major targets ₹170–200 crore in savings.
URL Slug: dabur-cuts-350-skus-pricing-strategy-middle-east-inflation
Focus Keyphrase: Dabur cuts 350 SKUs
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