Dabur operates in a dynamic environment, and to stay competitive and achieve sustainable growth, we actively identify, evaluate, and address potential risks. Our long-term value creation and our ability to remain competitive and resilient hinge on how well we identify, assess, and respond to both risks and emerging opportunities.

We have institutionalised a structured risk governance framework that integrates risk thinking into strategic and operational decision-making. Responsibility for managing risks lies with line management, while the risk function supports by facilitating discussions and monitoring action plans. Significant risks are escalated through well-defined reporting channels to ensure timely oversight and response. This proactive and layered approach helps us safeguard stakeholder interests, enhance organisational agility, and future-proof our business against volatility.

Our Risk Governance Structure is represented by the chart given below:

RISKS FOR 2024-25

Some of the key risks identified by us for FY 2024-25 are represented in the following chart. Relevant mitigation measures have been devised and applied for each risk, depending on the gravity of impact and the likelihood of occurrence.

Critical Risks

As part of our enterprise-wide risk management framework, Dabur has identified a set of critical risks that could potentially impact our strategic objectives, operational continuity, and stakeholder value. These risks are continuously monitored and addressed through proactive mitigation strategies to ensure long-term resilience and sustainable growth.

Type of Risk Mitigation Strategies Capitals Impacted
Financial and Regulatory Risks – Dabur faces ongoing risks related to the classification of certain products under applicable tax laws, which may result in disputes with tax authorities. Differences in interpretation of product classifications could lead to demands for additional taxes, interest, and potential penalties. These issues, if unresolved, may impact the company’s financial position and expose it to regulatory scrutiny, creating potential for unforeseen financial liabilities. Continued engagement with tax authorities and legal challenges are expected to influence the final outcomes of these matters.
  • Legal proceedings have been initiated where required, and interim relief has been obtained in certain cases
  • Financial Capital
Compliance Risks – The Company is exposed to regulatory risks arising from evolving interpretations and enforcement of legal requirements. This includes compliance with biodiversity-related regulations, where obligations around the use of biological resources may lead to financial liabilities or operational impacts. Additionally, the Company faces scrutiny regarding the applicability of stamp duty on past share issuances under schemes such as bonus shares and employee stock options. Such regulatory matters could result in increased costs or penalties.
  • Legal proceedings and financial provisions where required.
  • Financial Capital
Marketing Risk – As new draft regulations are set to become mandatory after a grace period, products with certain nutritional profiles may face reduced marketability, especially in schools and other restricted areas. The impact could include lower consumer appeal for certain products due to lower nutritional ratings, restrictions on sales in specific locations, and the need to adjust marketing strategies. This could affect overall product availability, sales, and brand positioning in the market.
  • Industry representation through associations like CII, FICCI, and IBA to address challenges of the Indian Nutrition Ratings (INR) model.
  • Inputs submitted to FSSAI for exemption of juices and consideration for higher fruit and vegetable content.
  • Consumer study conducted on the impact of INR rating.
  • Focus on reducing total sugar in Real Nectar – CORE range to improve INR rating.
  • Development of new variants with reduced sugar like Guava and Mixed Fruit, awaiting approval.
  • Launch of Real Zero with <= 4 kcal beverages.
  • Financial Capital
  • Intellectual Capital
  • Social & Relationship Capital
  • Manufactured Capital
Inflation Risk – A rise in material costs can result in higher production costs and ultimately increase the price for consumers. Additionally, it can have a ripple effect, influencing consumer purchasing behaviour and putting pressure on profit margins. Various economic factors, such as global conflicts and market instability, often affect the prices of raw materials and packaging.
  • Strategic buying of selected commodities to protect ourselves against inflation.
  • Selective price increase in key products.
  • Backward integration for key raw materials.
  • Rolling out cost-saving initiatives.
  • Import substitution by increasing localisation
  • Financial Capital
  • Manufactured Capital
  • Social & Relationship Capital
IT & Cybersecurity Risk – As digitalisation and data-driven operations grow, it is essential to establish a Data Privacy Framework and Policy to address the collection of Personally Identifiable Information (PII) and Sensitive Personal Data (SPD) at various touchpoints within the organisation. Failure to comply with privacy regulations could result in legal liabilities.
  • Privacy Notice on Dabur Corporate Website.
  • Establishment of Privacy Framework and abiding by respective Privacy Regulations.
  • Cyber liability insurance cover has been taken.
  • Human Capital
  • Intellectual Capital
Climate Risk – Climate change poses a dual risk to the Company’s operations. Unpredictable weather patterns such as irregular rainfall and fluctuating seasonal cycles can lead to demand volatility for seasonal products, potentially affecting topline performance. Simultaneously, changing climatic conditions may impact the availability of certain critical herbs, particularly high-altitude and tropical varieties used in key product categories. Disruptions in herb supply could result in production challenges and potential sales loss.
  • Leveraging weather prediction tools to enhance sales forecasting and planning
  • Shifting focus to less season-dependent product formats and geographies
  • Implementing tighter demand forecasting and inventory management cycles
  • Driving year-round relevance of seasonal products through new variants and usage occasions
  • Increasing promotional activities and competitive strategies to maintain market share during off-season periods
  • In case of critical herbs, continued focus on increasing availability through own plantation, contractual farming and alternative species.
  • Natural Capital
  • Financial Capital
  • Manufactured Capital
  • Intellectual Capital
  • Social & Relationship Capital
Reputational Risk – The increasing influence of social media presents a reputational risk to the Company. Misinformation, activist-driven narratives, or public scrutiny of leadership views, sponsorships, and campaigns can quickly escalate online, potentially harming brand perception. Such incidents may impact consumer trust and result in sales loss.
  • Maintaining high product quality standards to uphold consumer trust
  • Ensuring accuracy and responsibility in product claims and advertising
  • Real-time social media monitoring to detect and respond to emerging issues swiftly
  • Tailored response strategies based on the nature and impact of specific events
  • Regular reporting and review of reputational risks at senior management levels
  • Social & Relationship Capital
  • Financial Capital

Non-Critical Risks

In addition to critical risks, Dabur also monitors a set of non-critical risks that, while not immediately material, have the potential to influence operational efficiency, stakeholder perception, or long-term resilience. These risks are regularly reviewed to ensure early detection and timely mitigation.

Type of Risk Mitigation Strategies Capitals Impacted
Critical Raw Material Availability Risk – The availability and sourcing of critical raw materials, including medicinal plants and honey, pose challenges due to an unorganised supply chain, lack of traceability, and increasing regulatory scrutiny. Growing demand and tighter quality norms are exerting pressure on sustainable sourcing practices. In the case of honey, evolving trade policies, global supply dynamics, and domestic regulatory actions are adding to uncertainty. Continued activism by producer groups may further impact procurement strategies. These factors could affect production planning, supply continuity, and cost efficiency.
  • Initiated auction and RFQ processes for herb procurement.
  • The biodiversity team is driving a continuous backward integration programme to ensure long-term sustainability in herb sourcing.
  • Ongoing efforts to develop viable substitutions to reduce dependency on scarce or non-traceable raw materials.
  • Currently maintaining a sufficient stock of honey and do not foresee any immediate availability issues.
  • Witnessing a softening of honey prices in the Indian market due to recent developments, further stabilising supply.
  • Financial Capital
  • Manufactured Capital
  • Natural Capital
  • Social & Relationship Capital
Single Vendor Sourcing Risk – Certain inputs are sourced from single vendors due to the nature of the product, limited supplier availability, or internal procurement structures. This dependency increases exposure to supply disruptions, pricing volatility, and quality-related risks. Any operational or financial instability at the vendor’s end can significantly impact continuity in production and affect time-to-market for key products.
  • In FY 25-26, we will focus on diversifying our vendor base by adding alternative suppliers for critical raw materials.
  • Efforts are underway to develop an alternate source for key packaging materials, with successful trials conducted with a potential new vendor.
  • A quarterly review process, in collaboration with the DRDC, is being implemented to evaluate and induct new vendors, reducing dependency on single sources and enhancing supply chain resilience.
  • Financial Capital
  • Manufactured Capital
  • Natural Capital
  • Social & Relationship Capital
Local Employment Policy Risks – State-level industrial policies mandating local domicile employment ratios—such as in Jammu, Tezpur, and Indore—pose compliance and operational challenges. These requirements may limit hiring flexibility, affect workforce planning, and impact productivity in regions where access to skilled local talent is constrained.
  • We are committed to maintaining the local domicile ratio as per prescribed guidelines for each unit. In Jammu, we ensure an 80% local domicile ratio in Units I and II, and 72% in Unit V.
  • In Tezpur, we adhere to the mandated ratio with 81% local employees in managerial grades and 93% in non-managerial grades.
  • At the Indore unit, we are maintaining a local domicile ratio of 77%.
  • Human Capital
  • Social & Relationship Capital
  • Manufactured Capital
Consumer and Reputational Risks – Rising consumer activism around product quality is leading to increased scrutiny through complaints, social media posts, and regulatory sample checks across states. Negative consumer sentiment, particularly on digital platforms, can quickly amplify and impact brand reputation. Additionally, heightened regulatory oversight may result in compliance challenges or, in severe cases, financial implications in the event of product recalls or penalties.
  • We have engaged with a third-party service to ensure timely refunds to consumers.
  • We are closely monitoring complaints related to honey crystallisation and actively working to resolve concerns.
  • A private courier company has been hired in Delhi to facilitate speedy replacements of complaint packs nationwide, ensuring efficient service for customers.
  • Social listening is conducted daily through digital agencies, allowing us to monitor and respond to social media posts regarding Dabur and its brands to maintain a positive reputation and swiftly address any concerns.
  • Social & Relationship Capital
  • Financial Capital
  • Human Capital
Operational Safety Risks – Fire incidents at manufacturing facilities pose significant risks, including potential injury or loss of life, damage to assets and inventory, and disruption to production activities. Such events can lead to financial losses, impact supply continuity, and harm stakeholder confidence.
  • Insurance for assets and inventory
  • Fire safety audits were conducted across all factories and key corporate offices in 2023 by an external agency, with 99% of findings implemented by March 2025.
  • Follow-up audits have been completed, and site teams are actively working on actionable points with ongoing tracking and quarterly reporting.
  • All Dabur India Limited (DIL) plants have provisional or complete fire NOCs, reviewed monthly by Corporate EHS and Manufacturing leadership.
  • Regular training sessions on fire safety and work permit systems, along with site-level audits, are conducted and monitored monthly.
  • Fire and mock drills are carried out across all shifts, including silent hours, and reported via monthly MIS.
  • Recognition programmes, such as spot awards, have been introduced to acknowledge exemplary safety responses.
  • Human Capital
  • Manufactured Capital
  • Financial Capital
Counterfeit and Market Credibility Risks – The presence of spurious and look-alike products, particularly in rural and wholesale markets, continues to be a challenge for the FMCG sector. Such products erode genuine sales, impact profitability, and dilute brand credibility. They also affect the morale of the sales team and channel partners. While no empirical estimate is currently available for Dabur, the risk remains relevant and requires sustained vigilance and enforcement efforts.
  • Necessary legal action is taken on all reported cases, including initiating litigation and criminal raids where applicable.
  • Raid instructions have been issued in response to recent leads involving counterfeit products, with enforcement actions expected to follow.
  • A structured programme, “Break The Fake,” has been in place since 2020 to encourage proactive identification of spurious products, including a reward and recognition system for field staff who report valid cases.
  • Social & Relationship Capital
  • Financial Capital
  • Intellectual Capital
Water Availability Risks – Certain manufacturing units are located in high water-stressed regions, making operations vulnerable to water scarcity. Juice and Pishti production are particularly water-intensive, both as an ingredient and in processing. Disruptions in water supply—due to drought or public opposition during periods of scarcity—may lead to production stoppages, affecting product availability and supply chain continuity.
  • We have built a multilocational manufacturing footprint to mitigate disruption risks, ensuring that both Juice and Pishti products are manufactured across multiple owned and third-party sites.
  • Our strategic manufacturing expansion enables flexibility and continuity in production in the event of localised water scarcity.
  • We have achieved a 30% reduction in water intensity from our FY 2018-19 baseline, meeting our target a year in advance, and continue to drive water use efficiency across all locations.
  • As part of our long-term commitment, we are progressing towards water positivity by 2030. Over the past two years, our water conservation capacity has increased by 4.5 times, and we remain on track to meet our target ahead of schedule.
  • Natural Capital
  • Manufactured Capital
  • Financial Capital
  • Social & Relationship Capital

Climate, water and forest-related risks and opportunities have been identified and incorporated into the Company’s Enterprise Risk Management (ERM) framework through inclusion in the Risk Register, enabling systematic monitoring and response.

Internal and external audits of the risk management and compliance processes are currently in progress to strengthen governance and ensure alignment with best practices.

Business Continuity Plan

Established in 1884 in a modest pharmacy in the bylanes of Calcutta, Dabur has grown into a transnational FMCG leader with a presence in over 120 countries. Over the course of our 140-year journey, we have continually evolved to meet the changing aspirations of consumers — while remaining steadfast in our commitment to Ayurveda and nature-based wellness.

Our ability to thrive across generations and geographies stems from a unique combination of agility, foresight, and disciplined risk management. We have consistently anticipated market shifts and proactively adapted our operating model, ensuring we remain relevant, resilient, and responsive.

A key enabler of this resilience is our integrated risk management approach, which balances growth with preparedness. By enhancing operational efficiency, modernising our supply chain, and strengthening IT infrastructure, we have significantly reduced business disruption risks across functions and markets.

We conduct regular Business Impact Analyses (BIAs) to identify potential threats, critical business functions, and interdependencies. These insights enable us to make informed, timely decisions during periods of volatility and ensure seamless business continuity.

We also take a proactive approach to climate-related risks, incorporating physical hazards—such as droughts, floods, and other extreme weather events—into our scenario planning. This enables us to assess potential impacts on both physical infrastructure and agricultural supply chains, and respond with strategic foresight.

To ensure uninterrupted operations, Dabur has implemented a robust and multi-layered Business Continuity Plan (BCP) that spans all manufacturing units, corporate offices, and supply chain operations. A central element of this strategy is our multi-location production architecture—allowing us to swiftly switch operations between facilities in the event of unplanned outages, equipment failures, or natural disruptions.

Our diversified supplier network, built on strong partnerships with multiple vendors, further mitigates risk by reducing dependency on single-source suppliers for critical raw materials and packaging inputs. In parallel, we actively identify and qualify alternate sources for all essential ingredients to enhance supply chain agility.

On the digital front, our BCP includes protocols for the restoration of critical IT systems in case of major disruptions. Most of our business applications have successfully undergone disaster recovery testing, with the remainder scheduled under ongoing review. The effectiveness of our Business Continuity Management (BCM) is validated through periodic simulation exercises and readiness audits.

At Dabur, resilience is not just a response mechanism - it is embedded in our DNA. It underpins our ability to grow sustainably, protect stakeholder interests, and uphold the trust placed in us by millions of consumers around the world.

download-pdfAnnual Report 2024-25