New Delhi: Packaged consumer goods company Dabur India Ltd will set up a new manufacturing facility in Tamil Nadu with an initial investment of 135 crores. The company plans to scale it up to 400 crore over the next five years.
This is Dabur’s first manufacturing unit in south India and will help expand capacity across brands such as Red Toothpaste, Odonil and Honey.
The company signed a memorandum of understanding with the state government for the plant on Thursday.
Last year, Dabur had commenced construction of its largest manufacturing facility in India in Madhya Pradesh, with an estimated investment of 550 crores. The unit will manufacture a range of food products, Ayurvedic medicines and health supplements, the maker of Vatika hair oil, and Real Juice said.
Dabur operates 14 manufacturing plants in India and draws a large part of its business from markets in northern India.
Capacity expansion comes as consumer goods makers increasingly extend their reach in response to the rising demand for branded products.
Dabur’s investment will allow the company to better serve the growing demand for its products in south India and strengthen its market presence in the region, said chief executive officer Mohit Malhotra.
The FMCG major reported an 8% growth in consolidated net profit to 500 crore in the June quarter. Revenue was up 7% to Rs 3,349 crore. In FY24, it reported revenue of 12,404 crore, with a net profit of 1,843 crores.
Dabur sells products under the home and personal care categories, apart from food and beverages and healthcare products. Its brands include Meswak toothpaste, Dabur honey, Amla hair oil, and Real fruit drinks.
“We’ve chosen to set up a manufacturing unit in Tamil Nadu as part of our strategy to be closer to our consumers…,” said Rahul Awasthi, global head of operations, Dabur India. “This will also enhance our sourcing of agricultural produce from local farmers in Tamil Nadu,” he added.
Shares of Dabur India were trading at 645.00 on the National Stock Exchange on Thursday, up 1.7% from the previous close in a largely positive market.
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