FMCG and ayurvedic products manufacturer Dabur is planning to set up a new manufacturing unit or factory in South India in less than a year’s time to scale up its business in the region, said Dabur India CEO Mohit Malhotra in an interview with news agency PTI.
Dabur recorded a significant increase in its domestic sales from South India, now accounting for 20% of its total sales, and has witnessed a doubling of its business in the region over the past 5-6 years. In response to this growth, the company is actively identifying market-specific gaps and needs, aiming to introduce customized products tailored to the preferences of these markets.
The leading FMCG player has overall 13 manufacturing units across the country and is further looking to meet the demand and is diversifying its manufacturing activities by adding new lines, Malhotra said.
The company, with an annual capex of ₹350 crore to ₹450 crore, also plans to expand its manufacturing activities in the international markets catering to regions such as the Middle East and Europe.
Moreover, the company is streamlining its manufacturing operations by closing down units where tax benefits are expiring and establishing new units in areas transitioning to the GST regime.
“We have made substantial progress in South India… it now contributes 19 to 20 percent 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.” he said.
He added, “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 had recently allocated an investment of approximately ₹350 crore to establish a new unit in Indore.
“We are creating a framework in the company where we can create products which are exclusively meant for the South of India for which we have got this framework called RISE, which is regional insights, speed and execution,” said Malhotra.
Source: Mint
