FMCG and ayurvedic products maker Dabur plans to set up a new plant or factory in South India in less than a year to expand its business in the region, Dabur India CEO Mohit Malhotra said in an interview with news agency PTI.
Dabur has 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 actively identifies market-specific gaps and needs, aiming to introduce customized products adapted to the preferences of these markets.
The major FMCG player has a total of 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 serving regions such as the Middle East and Europe.
In addition, the company is streamlining its manufacturing operations by closing units where tax benefits are expiring and establishing new units in areas transitioning to the GST regime.
“We have made great 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 South region has doubled.” he said.
He added, “I don’t think it’s a few years away. Maybe it’s a year away. Within a year, we might plan something for South India as business scales up.” Dabur recently allocated an investment of approx ₹350 crore to establish a new unit in Indore.
“We are creating a framework in the company where we can create products exclusively meant for South India, for which we have this framework called RISE, which is regional insights, speed and execution,” Malhotra said.
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Updated: 19 Nov 2023, 14:00 IST