Announcing its entry into the Rs15,000 crore milk beverages market, Dabur India Ltd has launched a health drink, Chyawan Junior.
“We will test launch the product in Maharashtra and West Bengal before rolling it out across the country,” said K.K. Rajesh, executive vice-president, Dabur India. The new product is part of Dabur’s flagship brand Chyawanprash, which contributed Rs175 crore to the company’s total turnover of Rs2,233 crore last year.
Chyawan Junior, a chocolate-flavoured drink will be priced on par with rivals’ products such as Horlicks and Bournvita in a market for drinks that the industry calls MFDs (or malted food drinks).
Though analysts say the MFD market in India hasn’t grown much in the past four years, Dabur is optimistic, expecting the sector to grow at 15% this year.
“Dabur is already popular in the health food segment and backed with its strong distribution, it should be able to penetrate the offering in the market easily,” said an analyst with a Mumbai-based brokerage firm, who didn’t want to be identified. About 70% of the market is dominated by GlaxoSmithkline Consumer Healthcare Ltd’s brands such as Horlicks, Boost, Viva and Maltova.
“Malted food drinks have extremely low penetration in the rural market where Dabur has a strong foothold. Hence, creating awareness will be critical and will require creative marketing initiatives,” the analyst added. Dabur said that they would support the launch of the product with massive advertising and marketing campaign and Amitabh Bachchan, who endorses several Dabur products, will endorse Chyawan Junior, too.