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Dabur India to Invest Rs 400 Crore in New Tamil Nadu Plant
Dabur India Ltd, a leading packaged consumer goods company, has announced plans to establish a new manufacturing facility in Tamil Nadu. The company signed a memorandum of understanding with the state government. The initial investment for the project is pegged at Rs 135 crore, with plans to scale it up to Rs 400 crore over the next five years. This move marks Dabur’s first manufacturing unit in South India, aimed at expanding capacity for key brands like Red Toothpaste, Odonil, and Dabur Honey.
This strategic investment is part of Dabur’s broader expansion plan. The company recently began construction of its largest manufacturing facility in Madhya Pradesh, with an estimated investment of Rs 550 crore. The Madhya Pradesh plant will produce a range of products including food items, Ayurvedic medicines, and health supplements. With the new Tamil Nadu unit, Dabur now operates 14 manufacturing plants across India, drawing a significant portion of its business from northern regions.
Dabur’s CEO, Mohit Malhotra, highlighted that the Tamil Nadu facility would enhance the company’s ability to meet growing demand in South India while strengthening its market presence in the region. The expansion comes as consumer goods companies increasingly aim to reach more consumers amid rising demand for branded products.
The company’s performance has been robust, reporting an 8% growth in consolidated net profit to Rs 500 crore for the June quarter. Revenue increased by 7% to Rs 3,349 crore. For FY24, Dabur reported revenue of Rs 12,404 crore, with a net profit of Rs 1,843 crore.
Rahul Awasthi, Global Head of Operations at Dabur India, noted that the choice of Tamil Nadu for the new facility aligns with the company’s strategy to be closer to its consumers. He also emphasized the benefits of sourcing agricultural produce from local farmers, boosting regional ties.
Shares of Dabur India saw a 1.7% rise to Rs 645 on the National Stock Exchange following the announcement, reflecting positive market sentiment.
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