The consumer goods company Dabur India is launching its first manufacturing venture in the southern region with an investment of Rs 400 crore to establish a new plant in Tamil Nadu.
The business and the Tamil Nadu government inked a memorandum of understanding (MoU) on Thursday to develop a cutting-edge manufacturing facility in the Villupuram district of Tamil Nadu’s SIPCOT Food Park. In phase I, the company plans to invest Rs 135 crore, with plans to scale up to Rs 400 crore over five years. It is anticipated that the project will directly employ 250 people.
The decision to establish a plant is part of Dabur’s ambition to expand its operations in the southern region by catering to local demands. This is a growth strategy that most fast-moving consumer goods (FMCG) businesses are actively pursuing. Dabur now has 14 production facilities, most of which are located in the northern and central regions of the nation. According to corporate officials, the Tamil Nadu factory would be its fifteenth and would open the door for other plants of this kind in the southern states.
Godrej Consumer had declared last year that it would invest Rs 515 crore in Tamil Nadu to produce products like Goodknight, Cinthol, and Godrej Expert Rich Creme.
Dabur India CEO Mohit Malhotra said southern markets, including Tamil Nadu, account for over 20% of the company’s overall revenues. Malhotra stated on Thursday that the company could increase its market share in the area by using the investment to produce a variety of goods, including food items, ayurvedic medications, and health supplements. In the future, the corporation hopes that sales in the South will account for about 25% of its overall revenue.
Dabur Chyawanprash, Dabur Honey, Dabur Pudin Hara in the healthcare sector, Dabur Amla and Dabur Red Paste in the personal care sector, and Real fruit juices in the food and beverage category are among the 140-year-old company’s offerings.
