Dabur Set to Take on Pantanjali, Expand their Herbal Farms for Ayurveda Push

The FMCG major is set to double its herb cultivation to increase its portfolio of Ayurveda products

India: Dabur will be cultivating over 3,000 acres of medicinal herbal farms by March next year. This is being done to tackle the growing demand for their products and moreover, to take on the growing competition from Patanjali Ayurved. So far, it has been deemed that it is Dabur’s fastest expansion so far.

The network of these herbal farms is huge. The company right now cultivates nearly 2,000 acres with greenhouses present at Pantnagar in Uttarakhand, where rare herbs are grown and then distributed to the farmers for cultivation. The expansion will nearly double the number of farmers spread across eight states. They will also be targeting the allied categories within the food and oral care segments.

According to TechSci Research, Dabur’s expanding cultivation would help the company to expand its health supplement portfolio and to get back the momentum in order to gear up against the rising competition. Moreover, Dabur’s reputation in the industry will grow substantially on account of growing health consciousness and rising awareness among the people regarding Ayurvedic products which will also help the company to expand its business, increasing customer base and profit in the long run. 

According to a recently published report at TechSci Research “India Ayurvedic Products Market By Product Segment (Ayurvedic Healthcare Products and Ayurvedic Personal Care Products), By Organized vs. Unorganized, Competition Forecast & Opportunities, 2011 – 2021”, the country’s Ayurvedic products market is projected to register a CAGR of 16% during 2016-2021. Growth in the market is anticipated on account of rising consumer awareness about natural treatment options, increasing online availability of Ayurvedic products and growing number of companies introducing Ayurvedic nutraceuticals and dietary supplements. India Ayurvedic products market is dominated by Ayurvedic personal care products segment, which had a revenue share of more than 60% in 2015. Demand for Ayurvedic products is predominantly concentrated in the country’s south and north regions, wherein north region is emerging as the fastest growing regional market for Ayurvedic products. In 2015, both of these regions cumulatively accounted for nearly two-third of the revenue share in India Ayurvedic products market.