In its bid to strengthen the supply chain and, consequently, its presence in the southern India, ayurveda major Dabur India Ltd is planning to set up a greenfield facility in the region. Location of the plant, estimated to cost Rs 135 crore, will be finalised soon. Currently the Ghaziabad-based company is in negotiations with various state authorities to secure a favourable deal.
“The Board of Directors of Dabur India Limited today approved an investment of Rs 135 crore for setting up a new manufacturing facility in South India,” it said in a statement. The new unit would manufacture a range of Dabur’s ayurvedic healthcare, personal care and home care products like Dabur Honey, Dabur Red Paste and Odonil air fresheners, among others.
“Our business has scaled up in South India and today accounts for around 18-20 per cent 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 today approved an investment of Rs 135 crore for establishing this greenfield facility. This is not only an opportunity to bring more jobs to the region, but also allows us to further expand our manufacturing capabilities and meet the growing need for Dabur products in South India,” said Mohit Malhotra, Chief Executive Officer, Dabur India.
The project will mark Dabur’s first investment in South India and will add to its existing network of 13 domestic manufacturing locations, spread ac ross 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.
As part of Dabur's strong commitment to ‘Green Enterprise’ principles, the new facility will incorporate energy conservation in its design and operation. Special focus is also being given to the environment with the company planning to construct an energy efficient building besides deploying state-of-the-art technology for effluent treatment, it said.