Dabur sets sights on South India with Rs 135-crore investment
In its bid to strengthen the supply chain in southern India, Dabur India to set up a greenfield facility. The new unit would manufacture a range of its ayurvedic healthcare, personal care and home care products like Dabur Honey, Dabur Red Paste and Odonil air fresheners, among others.
27 Feb 2024 | By Aditya Ghosalkar
Dabur's new facility has the potential to support the growth of the regional packaging in South India
With production closer to South Indian consumers, Dabur might source packaging materials locally, potentially boosting the regional packaging industry.
Dabur's new facility in South India has the potential to: support the growth of the regional packaging industry; drive innovation towards efficient and sustainable packaging solutions in India.
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Mohit Malhotra, chief executive officer, Dabur India said, “Our business has scaled up in South India and accounts for around 18 to 20% of Dabur's domestic business. With South India's contribution increasing, we have decided to establish a new manufacturing facility there to better cater to the local demand.”
The Board approved an investment of Rs 135 crore for establishing the greenfield facility. This is an opportunity to bring more jobs to the region,and also allows us to further expand our manufacturing capabilities and meet the growing need for Dabur products in South India,” said Malhotra.
The project will mark Dabur’s first investment in South India and will add to its existing network of 13 domestic manufacturing locations, spread across North, East and West India. Dabur, which offers a wide range of consumer products - from toothpaste to digestive tablets, is a strong player in states like Madhya Pradesh, Bihar, Uttar Pradesh while its presence in south India remains limited.
Dabur's commitment to "Green Enterprise" principles suggests the new facility could utilise eco-friendly packaging materials or designs, potentially influencing industry trends. The focus will also be on constructing an energy efficient building besides deploying quality technology for effluent treatment, said a press statement.
In its recent performance report, Dabur saw rural demand for Dabur grow 200 bps ahead of urban. “We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 1,00,000 to 1,17,000. Dabur’s rural distribution has been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” Malhotra added.