Dabur, a prominent FMCG and ayurvedic products manufacturer is preparing to establish a new facility in South India within the next twelve months. This move comes as the company's business expands in the region, as stated by CEO Mohit Malhotra. During an interview with PTI, it was revealed that Dabur is currently obtaining 20 percent of its domestic sales from South India, with its business in the region having doubled in the last 5-6 years. In response to this growth, the company is now identifying gaps and usages in order to launch products customized to the markets.
He added that the company, with 13 manufacturing units nationwide, is expanding its capacity to meet demand and diversifying its manufacturing activities by introducing new product lines. Dabur India, with an annual capex of approximately Rs 350-450 crore, is also looking to enlarge its manufacturing operations in international markets, specifically targeting the Middle East and Europe.
Furthermore, the company is streamlining its manufacturing operations by closing down units facing tax sunsets and opening new units in preparation for the GST regime, according to Malhotra.
Regarding Dabur's business in South India, Malhotra mentioned, "We have achieved significant growth in South India." Currently, it makes up 19 to 20 percent of Dabur's domestic business. This was only around 10 percent about seven to eight years ago, so the contribution from the Southern region has now doubled.
Malhotra stated that the new plant in South India is not expected to be operational in the next few years. It could be a year from now. In the next year, we may consider expanding our business operations to the South of India as we continue to grow.
Dabur recently invested around Rs 350 crore to open a new unit in Indore.