Leading FMCG and ayurvedic products maker Dabur is planning to set up a new factory in South India in less than a year’s time, as its business scales in the region, according to company’s CEO Mohit Malhotra.
Dabur, which now gets 20 per cent of its domestic sales from South India with its business there doubling in the last 5-6 years, is identifying gaps and usages to launch products customised to the markets, he told PTI in an interview.
The company, having 13 manufacturing units across the country, is augmenting its capacity further to meet the demand and is diversifying its manufacturing activities by adding new lines, he added.
Dabur India, which has an annual capex of around Rs 350-450 crore, also plans to expand its manufacturing activities in the international markets catering to regions such as the Middle East and Europe.
Besides, the company is consolidating its manufacturing operations and has shut down some units where tax sunsets are coming in, and opening new units where GST regime is coming in, Malhotra added.
On Dabur’s business in South India, Malhotra said,”We have made substantial progress in South India… it now contributes 19 to 20 per cent of Dabur’s domestic business. This was not even 10 per cent around seven to eight years back and thus contribution from the Southern region has doubled.”
When asked about the new plant in South India, Malhotra said,”I do not think it’s a few years away. Maybe it is a year away .Within a year, we might plan something for South of India as business scales up.”
Dabur’s last investment to open a new unit was at Indore, where it had invested around Rs 350 crore.