Dabur will double its herb cultivation to take on Patanjali

Mumbai. Neha Tyagi of Economic Times reports : FMCG major Dabur will double its herb cultivation as it plans to launch newer ayurvedic products amid growing demand and increasing competition from yoga guru Baba Ramdev’s Patanjali Ayurved. The maker of Real juice and Vatika shampoo will have 3,800 acres of medicinal herb farms by March next year, its fastest expansion so far. At present, it has nearly 2,000 acres under cultivation, which was done in a staggered manner over the last two decades.
It also has a greenhouse at Pantnagar in Uttarakhand, where rare herbs are grown and then distributed to farmers for cultivation. The company buys back the produce from the farmers. “We are preparing ourself for the next cusp of high demand as our volume growth is still high, partly due to promotions,” said Sunil Duggal, CEO at Dabur. “We are rapidly getting into our own supply, which may not be owned by us but will be controlled by Dabur. We are putting in Rs 600 crore of capex to increase capacity to support back-end operations.”
Spread across eight states, Dabur’s latest initiative will involve 2,500 farmers, up from 1,200 now. The Rs 8,000-crore company also said it will enter allied categories within the food and oral care segments without straying away from the core ayurvedic products business. ( Courtesy :

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