Mohit Malhotra is the CEO of the $.12 billion Dabur India Ltd.. A management graduate from Pune University, Malhotra holds Executive Masters in International Business from the Indian Institute of Foreign Trade, New Delhi. He joined Dabur in 1994 and took over as the Business Head of the European Union. In 2004, he moved into Dabur’s International Business as Head of Marketing, based in Dubai, and took over the reins as Chief Executive Officer of Dabur International in 2008. In an interview with New Business Age, Malhotra talked about Dabur’s performance, future plans and how it is taking on other multinational companies. Excerpts:

Dabur has been in operation in Nepal since 1992. As the CEO of Dabur Nepal, how do you assess the company's growth, impact and milestones over these years?

Dabur's success in Nepal is deeply intertwined with the trust and love of Nepali consumers. Our commitment to innovation and offering the best quality at the right price has made Dabur a household name in Nepal. Brands like Real Fruit Juice, Dabur Chyawanprash, Dabur Red Paste and Dabur Hajmola have become staples in many homes. This brand loyalty is built on our unwavering dedication to providing safe, effective and high-quality products that cater to the health and wellness needs of every household.

It is heartening to see the success Dabur has achieved and the love our brands have received from consumers across Nepal. Our contributions extend beyond business growth; we are deeply involved in socio-economic development through various initiatives, whether it is protecting the environment, promoting the herbal wealth of Nepal or working toward community development.

Since the launch of its first product in Nepal over three decades ago, Dabur Nepal has transformed into a true nation-builder and is ranked among the leading exporters in the country. Our operations have created approximately 900 direct jobs and over 25,000 indirect jobs. As an organization, we remain committed to our mission of providing quality products and contributing to the well-being of the communities we serve. Our shared success with the people of Nepal is a testament to the trust and loyalty we have earned, and we look forward to continuing this journey together.

The Office of the Investment Board Nepal has recently approved Dabur Nepal's proposal to reinvest Rs 9.68 billion in the country. Could you elaborate on the intended purpose of this investment?

The approval of our proposal to reinvest Rs 9.68 billion marks a significant milestone in our ongoing commitment to the country's growth and development. This substantial investment will be directed toward several key areas, each aimed at enhancing our operational capacity and diversifying our product offerings. A significant portion of the investment will be allocated to expanding our production facilities. This includes upgrading existing infrastructure and incorporating advanced technologies to increase efficiency and output. By enhancing our capacity, we aim to meet the growing demand for our products both domestically and internationally.

We are also committed to broadening our product portfolio to cater to the evolving needs of consumers. This investment will support the development and introduction of new products, particularly in the beverages sector, including fruit juices and other health-oriented drinks. This diversification will not only strengthen our market presence but also provide consumers with a wider array of high-quality options. Our intent is to drive growth and create shared value for all stakeholders.

How does Dabur plan to strengthen its position as a leading FMCG player in Nepal amidst increasing competition from both local and international brands?

Competition is nothing new for us. Healthy competition is, in fact, beneficial for both Dabur and the category overall. Dabur, as a brand, evokes feelings of trust, health and well-being in the consumer's mind. We have been investing in research and developing high-quality products to retain our leadership position in the market. Going forward, we will continue to invest in research and develop products that meet the ever-changing needs of our consumers. We will aggressively increase the awareness and visibility of our products and enhance their availability across channels.

Likewise, we will continue to introduce new products, invest in enhancing our distribution network and communicate effectively with our consumers to spread awareness about the high quality and benefits of our products. We will continue to introduce a range of value-added and premium products, which will help us improve our market share.

We remain true to our heritage and are continuously working to update our portfolio in line with changing consumer demands and aspirations. We also have a strong in-house research wing that follows a ‘bush-to-brand’ approach. We have our in-house nursery, which grows several rare herbs that go into our various products. Today, we grow rare herbs on over 1,300 acres of land in Nepal. This in-depth knowledge of nature and natural ingredients is one of our biggest strengths in the market. The research wing also undertakes detailed tests on individual ingredients and products to ensure that the final product meets customer needs and aspirations.

At Dabur, we place a strong emphasis on understanding local consumer preferences and market dynamics. By integrating local feedback into our product development and marketing strategies, we tailor our offerings to better suit the Nepali market. This localized approach helps us stay relevant and competitive. Dabur is committed to continuous innovation and R&D, investing in developing new products and improving existing ones to stay ahead of market trends. We support these innovations by employing strategic marketing campaigns that strengthen our brand presence. Collaborations with local influencers and targeted advertising help Dabur connect with its audience more effectively.

We have also been investing in expanding our distribution networks across Nepal. This includes strengthening partnerships with local distributors and logistics providers to ensure efficient and timely delivery of products. By improving last-mile connectivity, Dabur can better serve both urban and rural consumers.

What role does Dabur Nepal play in Dabur India’s overall regional growth strategy? Are there plans to expand operations or introduce new product lines specifically for the Nepali market?

Dabur Nepal plays a significant role in Dabur India's overall regional growth strategy. As a key subsidiary, Dabur Nepal has established itself as a market leader in various categories, including non-carbonated soft drinks, glucose, chyawanprash, toothpaste, hair oils and digestive tablets. This strong market presence contributes to Dabur India's broader goals of expanding its footprint and increasing market share in the region.

We are actively working on introducing new products tailored to the Nepali market. The company plans to launch a new line of fruit juices and other innovative products within the next few months. These efforts are part of Dabur's broader strategy to cater to the unique needs and tastes of Nepali consumers, ensuring that the products resonate well with local preferences.

Innovation is critical to our sustained success, and we will continue to introduce new products to strengthen our portfolio. We are launching a range of new products to increase our addressable market, which is the long-term strategy for Dabur. To support this, we have not only increased our R&D spending but are also ensuring that innovations are targeted and quick to market. Today, new products contribute to around 4% of our sales.

The past few months have seen us launch a range of new products, such as Glucose Lemon and Cola, Honey Lemon Ginger, Vatika Ayurvedic Shampoo, Hajmola Limcola and Titaura variants, Gulabari Aloe Vera, Dynamite energy drinks and Chiuri Honey, to name a few. We will continue to launch new products across verticals like Health Care, Personal Care and Foods & Beverages.

How is Dabur adapting its product portfolio in Nepal to meet the growing consumer demand for healthier lifestyles?

At Dabur, we are committed to crafting products that offer maximum benefits to consumers with minimal impact on the planet. By marrying the traditional knowledge of Ayurveda with modern-day science, Dabur has created an array of products that offer holistic health and well-being to our consumers.

In our Home and Personal Care portfolio, many of our innovations are focused on improving the sustainability profile by using natural ingredients (instead of petrochemical derivatives) and reducing hazardous chemicals while maximizing consumer benefits. For instance, some of our new launches in the Skin Care and Hair Care categories are free from harmful chemicals like phthalates, parabens, etc, and contain natural ingredients.

Likewise, in the Healthcare segment, our traditional products contain natural ingredients and herbs that promote a healthy lifestyle. We also offer a range of natural alternatives to chemical-based medications. By promoting a more sustainable and eco-friendly approach to healthcare, we strive to improve the health and well-being of individuals and communities. In our Foods & Beverages division, we are committed to reducing sugar content in our products without compromising on taste or quality. A range of Real Activ juice variants with ‘NO ADDED SUGAR’, including Real Activ Cranberry and Real Activ Pomegranate, have been launched.

Overall, our focus on promoting social well-being and reducing environmental impacts through product innovation demonstrates our commitment to a healthier and more sustainable future.

Dabur has always been known for its Ayurvedic heritage. How do you balance traditional formulations with modern innovations when developing products for markets like Nepal?

Dabur has always believed in the benefits of Ayurveda and has been developing and successfully introducing products based on Ayurveda to cater to the ever-changing needs of our consumers. We have been working toward modernizing and contemporizing Ayurveda by introducing products that offer the traditional and time-tested benefits of Ayurvedic ingredients in modern-day, ready-to-use formats.

We maintain an edge over our competitors with our 140-year-old heritage. Dabur has highly differentiated brands in the market. While many companies today offer herbal or Ayurvedic products, Dabur enjoys consumers’ trust because of its Ayurvedic heritage. Consumers understand that if a product comes from the house of Dabur, it is truly natural and of the best quality at the right price.

Under our Biodiversity Protection Programme, we have identified environmentally sensitive species of medicinal plants and herbs and developed methodologies to address their sustainability concerns. We started small, with just a handful of herbs. We partnered with local NGOs across the country and, together, undertook special training programs for farmers, villagers and tribal communities to train them on sustainable and environmentally friendly cultivation processes. We also showed them how to improve their earnings by cultivating medicinal herbs alongside their routine crops.

Today, we have fully automated, state-of-the-art greenhouses in Banepa (Nepal) and Pantnagar (India), in addition to satellite nurseries and demo cultivation sites across both countries. These greenhouses are dedicated exclusively to growing and nurturing medicinal plant saplings. The facility supplies elite planting material to farmers across the country free of cost and offers training on sustainable cultivation practices. This enables farmers to cultivate and supply well-standardized medicinal plants on a large scale. In a year, Dabur grows and distributes tens of thousands of saplings of medicinal plants and herbs to farmers across India and Nepal, free of cost, from our greenhouses. This ensures the availability of quality raw materials for our Ayurvedic products and medicines.

This in-depth knowledge of nature and natural ingredients is one of our biggest strengths in the market. This research wing also undertakes detailed tests on individual ingredients and products to ensure that the final product meets customer needs and aspirations.

As an FMCG company, what steps is Dabur Nepal taking to reduce its environmental footprint, particularly in terms of packaging waste and carbon emissions?

Sustainability is all about catering to the changing needs and preferences of consumers while taking into account the preservation of our planet and the environment. It is a continuous journey, and Dabur has made rapid strides in this direction as we work toward not just creating sustainable products—like outer carton-free toothpaste and shampoo refill pouches to reduce the consumption of paper and plastic—but also making our operations, as well as those within our value chain, greener.

We consider sustainability at every level of our operating activities. Our business is committed not just to profitable growth but also to leaving a deeper imprint on society as a whole. All our actions are aimed at this larger goal. We have been consciously working toward substituting materials from finite, fossil-based sources with solutions that are renewable, recyclable and store carbon. As part of this mission, we reuse resources and materials and minimize waste as we work toward promoting a circular economy.

We have been working to use less paper, which in turn leads to saving trees from being cut down, by adopting technology. In terms of packaging, we have been executing projects across all verticals with respect to product packaging design changes, weight reduction and the transition to sustainable packaging materials. Along with paper, we also track the consumption of plastics (rigid), laminates and glass used for packaging purposes.

What are the biggest challenges that Dabur is facing in Nepal, and how are you addressing them?

Operating as a multinational company (MNC) in Nepal comes with unique challenges that require strategic adaptation and resilience. Dabur Nepal, with its strong local presence and deep market understanding, has proactively addressed these challenges to sustain business growth. Below are three key challenges and our approach to overcoming them:

First, Nepal’s regulatory landscape is evolving, with frequent policy shifts, taxation revisions and complex compliance requirements. These changes create unpredictability, making long-term business planning difficult for MNCs. We actively engage with industry associations and policymakers to promote a stable business environment. Likewise, we strengthen internal governance and compliance frameworks to ensure agility in adapting to new regulations, and invest in legal and regulatory expertise to navigate policy changes effectively.

Second, challenging terrain, limited infrastructure, and logistical bottlenecks often disrupt our supply chains in Nepal. To address this, we optimize supply chain operations through technology-driven solutions and improved route planning. Similarly, we enhance warehousing and inventory management to ensure product availability across all regions while also leveraging local manufacturing capabilities to reduce dependency on cross-border supply chains.

Third, with many professionals seeking opportunities abroad, MNCs in Nepal face difficulties in attracting and retaining skilled talent. We foster a people-centric work culture with structured career growth opportunities. Additionally, we implement continuous learning and development programs to upskill employees and strengthen succession planning and internal talent mobility to nurture future leaders from within.

On a broader level, the lack of political stability hinders the economic agenda, as timely policy reforms to stimulate growth are not implemented, and the economic agenda becomes subservient to the political agenda. This stifles the long-term economic growth potential of the country.

Despite these challenges, Dabur Nepal remains committed to innovation, operational excellence, and sustainable growth. By addressing these issues proactively, we continue to reinforce our position as a key contributor to Nepal’s economy while ensuring long-term business sustainability.

How does Dabur differentiate itself from other FMCG giants like Unilever, Nestlé, and Coca-Cola, especially in a price-sensitive market like Nepal?

Dabur’s distinct edge over competitors stems from its 140-year-old Ayurvedic heritage and its unwavering commitment to natural wellness. While many companies are offering herbal or Ayurvedic products, Dabur has earned the trust of consumers by staying true to its roots. Dabur’s rich Ayurvedic legacy sets it apart from conventional FMCG brands. Our deep-rooted expertise in Ayurveda ensures that every product embodies authenticity, purity, and efficacy—qualities that resonate with Nepali consumers who seek natural and holistic well-being solutions.

Unlike most other MNCs who cater largely to the Nepali consumers, we have been able to build a significant export business out of Nepal. Dabur Nepal is one of the largest exporters to India and contributes significantly to the exchequer through export income and employment opportunities.

We are conscious that Nepal is a price sensitive market and opportunities lie at the bottom of the pyramid. Hence, we focus on making our products affordable and accessible through low unit pack, sachet etc. We have both a premium and affordable range in our product offering so that we can cater the varying needs and pockets of Nepali consumers.

The post-Covid period has seen shifts in consumer behavior. How has this impacted Dabur Nepal’s sales and marketing strategies?

The post-pandemic era has indeed brought about significant shifts in consumer behaviour. However, Dabur Nepal has adeptly adapted its sales and marketing strategies to align with these changes.

The rapid spread of the Covid-19 pandemic a few years back led to a surge in demand for immunity-boosting Ayurvedic Health Care products in Nepal. While the demand for Ayurvedic products had been on the rise for a few years now, riding on the increasing popularity of natural and herbal medicines and their benefits among the consumers, the spread of the Covid-19 pandemic led to a sharper growth in consumer interest, awareness and demand for Ayurvedic therapies and medicines. People today are more inclined to prophylactic health remedies, especially immunity boosting products. The demand surge led to a significant increase in penetration of Ayurvedic products like Chyawanprash with a growing number of younger consumers adopting this time-tested remedy to build their immunity. However, there is still a lot of potential for growth. That said, Ayurveda penetration is still low and there is immense scope to increase penetration and bring more non-users into the fold. That is what we are working on now.

The pandemic also underscored the importance of community support and Dabur Nepal has intensified its CSR efforts, focusing on health, education and livelihood programs. By actively engaging with and supporting local communities, we have strengthened our bond with consumers and demonstrated our commitment to their well-being.

What is your vision for Dabur Nepal over the next five years?

My vision for Dabur Nepal over the next five years is centered around sustainable growth, innovation and community engagement. We aim to build on our strong foundation and continue to be a trusted household name in Nepal.

Dabur Nepal is already a market leader in several categories, such as fruit juices & beverages, glucose, chyawanprash, toothpaste, hair oils and digestive tablets. We will continue to strengthen our market presence by leveraging our power brands and expanding our distribution network to reach more consumers across the country.

Our primary focus will be on sustainable growth. We plan to reinvest in our infrastructure to enhance production capacity and efficiency. This includes upgrading our existing facilities and incorporating advanced technologies to meet the increasing demand for our products. We will continue to diversify our product portfolio to cater to the evolving needs of consumers. This includes introducing new health-focused and natural products that align with the growing preference for healthier lifestyles. Our commitment to innovation will drive us to develop products that not only meet but exceed consumer expectations.

Even as we focus on profitable growth, sustainability will remain at the core of our operations. We will implement eco-friendly practices across our supply chain, from sourcing raw materials to manufacturing and packaging. Our bio-resource division will continue to focus on conserving endangered medicinal plants, reflecting our dedication to environmental stewardship.

In a nutshell, my vision for Dabur Nepal over the next five years is to achieve sustainable growth, drive innovation and make a meaningful impact on the community. By focusing on these key areas, we aim to continue our legacy of trust and excellence, ensuring that Dabur remains a beloved and trusted brand in every Nepali household.

What advice would you give to young entrepreneurs in Nepal who aspire to build successful businesses in the FMCG sector?

The journey of entrepreneurship is both challenging and rewarding. My first piece of advice would be to stay resilient and not be afraid of failure. Persistence, I believe, is key to overcoming obstacles and turning every challenge into an opportunity. For any enterprise, it is extremely important to understand your consumers' preferences, trends and gaps in the marketplace. This knowledge will enable you to tailor your products and services to meet the specific needs of your target audience. You should always pay close attention to local tastes and cultural nuances, as products that resonate with local consumers are more likely to succeed.

Additionally, set very high standards for yourself and never compromise on product quality. Ensure that your products meet high-quality standards because quality builds trust and loyalty among consumers, which is crucial for the long-term success of any enterprise. This is something Dabur Nepal has always worked toward. Above all, stay resilient and adaptable. The business environment is highly dynamic, and being flexible will help you navigate market shifts and emerging trends. By focusing on these areas, young entrepreneurs in Nepal can create thriving businesses that make a positive impact on consumers and the community.

(This interview was originally published in March 2025 issue of New Business Age Magazine.)