ICICI Securities: Conversations With Dabur’s Distributors
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ICICI Securities Report
Dabur India Ltd.’s overall domestic revenues have completely recovered to pre-Covid-19 level due to increased demand of healthcare (up 25-30%) and homecare segments while personal care and foods have still not fully recovered – that's the insight from our conversations with distributors in nine states.
They further told us -
1. new product launches are performing well but there is resistance from retailers due to limited shelf space and financing,
2. inventory levels for distributors have reduced by approximately 50%,
3. trade schemes have increased,
4. healthcare segment products are facing some supply constraints, and
5. Dabur Honey sales is not impacted from the launch of Saffola Honey (premium positioning as per the distributors).
Our longstanding constructive view on Dabur India’s turnaround under Mohit Malhotra, Chief Executive Officer is intact.
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