Dabur India to Set up New Factory in South India in Less Than a Year
FMCG and ayurvedic products maker Dabur, according to the company’s CEO Mohit Malhotra, is preparing to establish a new factory in South India within the next year as its business continues to grow in the region. Dabur, which currently gets 20% of its domestic sales from South India and has seen its business double in the last 5-6 years, is identifying opportunities to launch products tailored to the markets.
In addition to its 13 manufacturing facilities across the country, Dabur is expanding its capacity and diversifying its manufacturing activities adding new lines.
Dabur India, with an annual capex of approximately Rs 350-450 crore, also plans to expand its manufacturing activities in international markets such as the Middle East and Europe.
Regarding Dabur’s business in South India, Malhotra stated, “We have made substantial progress in South India… it now contributes 19 to 20 per cent of Dabur’s domestic business.” He also mentioned that Dabur’s last major investment to open a new unit was in Indore, where it had invested around Rs 350 crore.
In the Southern market, companies like Wipro have entered the food segment with relevant regional offerings. Dabur is identifying gaps in the market to launch customized products, incorporating a framework called RISE (Regional Insights, Speed and Execution).
While discussing international markets, Malhotra noted that the MENA (Middle East & North Africa) region is the largest market for Dabur. Dabur also has manufacturing facilities in the UAE, Egypt, and other locations to cater to various regions.
Overall, Dabur is seeing positive business growth both domestically and internationally, although geopolitical issues continue to be a concern for the company.