Dabur Plans New Factory in South India as Business Surges

20 Nov 2023 , 12:31 PM

Dabur plans to set up a new factory in South India within a year, as its business in the region scales up. Currently, 20% of Dabur’s domestic sales come from South India, with the business doubling in the last 5-6 years.

The company is identifying gaps and market preferences to launch customized products for the South Indian market. With 13 manufacturing units across the country, Dabur is increasing its capacity and diversifying manufacturing activities.

Dabur, with an annual capex of around Rs 350-450 crore, aims to expand its manufacturing activities in international markets like the Middle East and Europe.

The company is consolidating manufacturing operations, closing units with tax sunsets, and opening new ones under the GST regime for increased efficiency.

In South India, Dabur’s business has grown substantially, contributing 19-20% to its domestic business. CEO Mohit Malhotra suggests that the new plant in South India could be operational within a year.

Dabur is creating a framework called RISE (Regional Insights, Speed, and Execution) to develop exclusive products for South India. The company aims to increase saliency in the South, focusing on geographical growth.

Dabur identifies MENA as a significant growth market and considers setting up a manufacturing unit in Saudi Arabia. Despite geopolitical issues, including Middle East tensions and the Russia-Ukraine War, Dabur notes recovery after Covid in international markets.

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